Invitation Homes (INVH) Q2 2024 earnings summary

Executive summary

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

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

• Average occupancy remained high at 97.5% in Q2 2024, with blended rent growth of 5.0% and continued improvement in bad debt.

• The company continues to expand its build-to-rent pipeline and third-party management business, with nearly 2,700 new homes planned and 3,000 additional homes under management.

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.

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

• Same-store NOI grew 3.8% year-over-year in Q2, driven by a 4.8% increase in core revenues and a 7.1% rise in core expenses.

• Property tax expense increased 10.3% year-over-year, impacting expense growth.

• Dividends declared per common share were $0.28 in Q2 2024, up from $0.26 in Q2 2023.

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.

• FY 2024 Same Store Core Revenues growth expected at 4.50% to 5.25%; Same Store NOI growth at 3.75% to 5.25%.

• Property tax expense growth expected at 8%-9.5% year-over-year, with continued caution for Florida and Georgia.

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

• Management notes continued strong demand, expansion of management services, and a focus on disciplined growth and operational efficiency.