Invitation Homes (INVH) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and investment highlights

• Favorable entry point with strong fundamentals, demographic tailwinds, and a growing millennial customer base, with high renewal rates exceeding 80% of revenue.

• Customers average 38+ months of stay, with renewals driving business stability and growth prospects.

• Renewal lease rate growth reached 5.5% in early 2025, up from 4.2% in Q4 2024, with new lease rate growth turning positive in February 2025 and a 3.6% blended lease rate growth.

• Average occupancy improved to 97.1% from 96.7% in Q4 2024, with strong occupancy in the low 97% range.

• Focus remains on growth through homebuilder partnerships, third-party management, and resident experience.

Builder partnerships and external growth

• Partnerships with about 10 national or regional builders, offering flexible purchase structures and targeting new-build supply in desirable locations.

• Institutional purchases accelerate builder sales pace, with deliveries to the company outpacing retail sales.

• Over 2,000 homes under construction through build-to-rent partnerships as of Dec 2024.

• Open-book approach on costs and yields, aiming to be a small but reliable share of builder sales, similar to fleet sales in auto industry.

• Exploring capital allocation strategies that balance risk, including forward purchase agreements and selective construction risk.

Operating performance and market trends

• Recovery since October, with sequential growth and return to pre-pandemic seasonality, including strong renewal rates in Q4/Q1 and new lease acceleration into peak leasing season.

• Supply pressures in key markets like Central Florida, Texas, and Phoenix led to increased competition, but stabilization is emerging.

• Guidance for 2024 expects 96.5% occupancy, optimizing for rate growth even if it means longer on-market times.

• Over 300 bps acceleration in new lease rate growth from December 2024 to February 2025.

• Same-store NOI growth for the sector in 2026 expected in the 2%-3% range.