Invitation Home (NYSE:INVH) executives emphasized housing affordability, the company’s acquisition of build-to-rent developer ResiBuilt Homes, and a continued focus on operating discipline and capital allocation during the company’s fourth-quarter 2025 earnings call.
Management frames demand around affordability and family-sized rentals
President and CEO Dallas Tanner highlighted affordability pressures that have kept many households in the rental market, pointing to elevated home prices, higher interest rates, and upfront costs that can make buying difficult. Tanner said the company sees a gap in family-oriented rental supply, noting that only 10% of multifamily apartments offer three bedrooms or more.
Tanner also discussed the company’s credit-building initiative, described as a free, company-funded program that reports positive rent payments to credit bureaus. According to management, more than 160,000 residents are currently enrolled and have seen an average credit score increase of 50 points. Tanner said historically more than 20% of move-outs have been residents purchasing a home, while later in the Q&A he said move-outs due to homeownership were running around 16% to 17% recently, versus a traditional 20% to 25% range.
ResiBuilt acquisition expands development capability with “capital-light” approach
Chief Investment Officer Scott Eisen said the ResiBuilt acquisition is intended to accelerate in-house development capabilities while remaining “upfront, asset, and capital light.” Eisen said ResiBuilt has delivered more than 4,000 single-family rental homes since 2018 across Georgia, Florida, and the Carolinas, and that about 70 ResiBuilt employees have joined Invitation Homes while continuing to operate under the ResiBuilt brand.
Eisen said ResiBuilt currently has 23 active fee-build contracts, with more than 2,000 home starts planned for 2026 and beyond. Management expects “nearly all” near-term activity to remain third-party fee-based, which Eisen said should generate capital-light earnings and provide “modest accretion” to 2026 AFFO. Beyond contracted work, Eisen said ResiBuilt offers opportunities to develop around 1,500 lots in Atlanta, Charlotte, and Orlando, and that over time Invitation Homes expects to selectively develop homes for its balance sheet and joint venture partners.
In response to analyst questions, Tanner said the company feels comfortable with the capability it brought in-house and does not believe it necessarily needs to acquire additional platforms to expand development. Eisen added that near-term efforts will remain focused in ResiBuilt’s existing geographies—Florida, Georgia, and the Carolinas—“for the foreseeable future.”
Operating results: steady occupancy and renewal strength offset softer new lease rates
Chief Operating Officer Tim Lobner said full-year 2025 same-store NOI grew 2.3%, finishing above the midpoint of guidance, driven by 2.4% core revenue growth and 2.6% core expense growth. In the fourth quarter, same-store NOI increased 0.7% year-over-year, supported by 1.7% core revenue growth and a 4% increase in core expenses.
Lobner said turnover remained low at 22.8% in 2025, consistent with the prior year, and average length of stay remained well over three years. Same-store average occupancy for the year was 96.8%, at the high end of guidance.
On leasing, Lobner reported fourth-quarter blended rent growth of 1.8%, including renewal rent growth of 4.2% and a 4.1% decline in new lease rates. He said renewals represent about 75% of the lease book. In January, occupancy held just under 96% and blended lease rate growth improved to 1.5%, with renewals around 4% and new lease rates down 4.2%.
Management attributed some near-term pressure to targeted specials in slower markets where supply exceeded demand, which Lobner said helped support occupancy during the softer winter season. During the Q&A, Lobner said the company had removed concessions on the scattered-site portfolio as demand increased and that any specials in place were limited to build-to-rent communities during lease-up. He added that renewal increases were expected to “hover around the 4% range.”
Executives repeatedly cited elevated supply in certain Sun Belt markets—particularly Florida, Texas, and Arizona—while noting lead volume was “very healthy” and demand remained strong heading into peak leasing season. Lobner described current oversupply as “transitory in nature” and said the company expects demand to absorb it over coming months and quarters.
Balance sheet, share repurchases, and 2026 guidance
Chief Financial Officer Jon Olsen said the company ended 2025 with $1.7 billion of total liquidity, including unrestricted cash and undrawn revolver capacity. Net debt to adjusted EBITDA was 5.3x at year-end. Olsen said about 94% of total debt is fixed-rate or swapped to fixed, and approximately 90% of wholly owned homes were unencumbered. The company has no debt reaching final maturity before June 2027.
Olsen also discussed the company’s share repurchase authorization announced in October: a $500 million program under which Invitation Homes has repurchased 3.6 million shares totaling about $100 million. Management said it views “meaningful value” in the shares and expects to continue repurchasing as opportunities permit, while also weighing other uses of capital based on risk-adjusted returns and cost of capital.
On financial performance, Olsen said core FFO increased 1.3% year-over-year in the fourth quarter to $0.48 per share, while full-year core FFO rose 1.7% to $1.91 per share. Fourth-quarter AFFO was flat year-over-year at $0.41 per share, and full-year AFFO increased 1.8% to $1.63 per share.
For full-year 2026, the company guided to:
- Same-store NOI growth: 0.3% to 2.0%
- Same-store core revenue growth: 1.3% to 2.5%
- Same-store core expense growth: 3% to 4%
- Core FFO: $1.90 to $1.98 per share
- AFFO: $1.60 to $1.68 per share
Guidance assumptions include average occupancy of 96.3% at the midpoint, same-store blended rent growth in the “mid-2%” range, and approximately $550 million of dispositions at the midpoint, which Olsen said is expected to be the primary funding source for additional share repurchases and about $250 million of anticipated wholly owned new home deliveries at the midpoint.
Regulatory backdrop and expense outlook
During Q&A, Tanner addressed proposed legislative activity related to institutional ownership, saying the company has been engaged with policymakers and has been encouraged by discussions. He said it was “a little too early to speculate” on specifics, but added that build-to-rent and new supply production “feels pretty favorable” based on conversations. He emphasized the company’s efforts related to affordability and pathways to homeownership, including the rent reporting program.
Olsen also discussed expense assumptions embedded in 2026 guidance. He said 2025 property taxes benefited from a favorable outcome, including what he described as a “fairly sizable good guy in Texas,” and that the 2026 outlook reflects caution as assessed values continue to catch up in markets such as Florida and Georgia. On insurance, Olsen said property insurance renewals appear constructive, but the general liability, excess casualty, and auto markets have become “materially harder,” contributing to the company’s insurance expense growth expectations. He added that the company’s policy year runs from March 1 to March 1 and that management would have more information after renewal discussions conclude.
Olsen said overall non-insurance, non-tax expense growth implied by guidance was in the 1% to 2% range, and noted the company included an estimate of $0.02 per share related to advocacy and other costs tied to navigating the regulatory backdrop.
About Invitation Home (NYSE:INVH)
Invitation Homes (NYSE: INVH) is a real estate investment trust that specializes in the ownership, operation and leasing of single-family rental homes across the United States. The company focuses on acquiring suburban and urban-adjacent single-family residences and managing them as rental properties for households seeking professionally managed, long-term housing alternatives to traditional homeownership or multifamily rentals.
Operationally, Invitation Homes is involved in the full lifecycle of the single-family rental business: sourcing and acquiring homes, performing renovations and ongoing maintenance, marketing and leasing properties, and providing property management and resident services.
