Invitation Homes (INVH) Q2 2024 earnings summary

Executive summary

• Owns approximately 85,000 single-family homes for lease in 16 core U.S. markets, with a resident-centric, vertically integrated operating model focused on high-quality homes and customer service.

• Q2 2024 total revenues rose 8.8% year-over-year to $653.5 million, while net income fell 47% to $73.4 million due to a $59.5 million legal accrual.

• Core FFO per share increased 7.3% to $0.47 and AFFO per share rose 4.1% to $0.40 year-over-year, driven by robust operational performance and third-party management growth.

• Same-store average length of stay exceeded three years, with average occupancy at 97.5% in Q2 2024, reflecting strong resident retention and portfolio stability.

• Provided property and asset management services for 21,146 homes, including 3,885 owned by unconsolidated joint ventures as of June 30, 2024.

Financial highlights

• Q2 2024 total revenues were $653.5M, up 8.8% year-over-year; rental revenues and other property income rose 6.8% to $637.5M.

• Q2 same-store NOI grew 3.8% year-over-year, with same-store core revenues up 4.8% and core expenses up 7.1%.

• Q2 2024 net income per diluted share was $0.12, down from $0.22 in Q2 2023; Adjusted FFO per diluted share was $0.40, up from $0.38.

• Blended rent growth was 5% year-over-year in Q2, with renewal rent growth at 5.6% and new lease rates up 3.6%.

• For the six months ended June 30, 2024, total revenues were $1.3B, net income was $216.2M, and Adjusted EBITDAre was $747.9M.

Outlook and guidance

• FY 2024 Core FFO per share guidance raised to a midpoint of $1.87, with a range of $1.84 to $1.90.

• Maintained midpoint of full-year same-store NOI growth guidance at 4.5%.

• Lowered same-store revenue growth guidance midpoint by 12.5 bps to 4.875%; improved same-store expense growth guidance midpoint by 50 bps to 5.75%.

• FY 2024 property taxes expense growth expected at 8.0% to 9.5% year-over-year; insurance expense growth at ~7.5%.

• Blended rent growth for the full year expected in the high 4% to low 5% range.