Invitation Home (NYSE:INVH) reported first-quarter 2026 results that management said were in line with expectations, with occupancy improving into the start of peak leasing season and early signs of stabilization in new lease pricing.
President and CEO Dallas Tanner credited “another first quarter of strong execution in a dynamic environment,” noting that average occupancy accelerated into the “mid-96% range” during the quarter and that the company entered April with “improving leasing momentum.”
Leasing backdrop: occupancy climbs, new lease pricing improves in April
On rents, Lobner said renewal rent growth was 3.7% while new lease rent growth was -3.0%, producing blended rent growth of 1.6%. Lobner attributed the negative new lease rent growth to “elevated supply conditions” in several markets, though he said “our West Coast and Midwest markets all held positive new lease rent growth.”
Same-store occupancy averaged 96.3% in the first quarter. Lobner said the year-over-year decline from 97.2% in the first quarter of 2025 was a “normalization” the company anticipated, and it created a 90-basis-point headwind to revenue growth. Occupancy improved throughout the quarter, moving from 96% at the start of the year to 97% by quarter end, according to Lobner.
Management pointed to encouraging preliminary April trends:
- Average occupancy accelerated to 97.1%, up 80 basis points from the first quarter.
- Renewal rent growth was in the low 3% range.
- New lease rent growth returned to positive territory at just under 0.5%, a 230-basis-point acceleration from March.
- Blended rent growth was 2.3% in April.
Asked about the spread between renewal and new-lease rent growth in higher-construction markets, Lobner said the gap typically narrows through peak season as new lease growth “trend[s] upward from Q1 towards the end of Q2.” He also said Invitation Homes believes “peak deliveries” of build-to-rent supply are “in the past,” and that year-over-year supply comparisons moderated during the first quarter.
On concessions, Lobner said the company currently has “no same-store concessions in place today” and generally doesn’t use concessions during peak season, though he noted concessions are used for build-to-rent communities during lease-up.
Resident trends and credit health
Lobner said bad debt remained “low and stable” at 60 basis points, flat with a year ago, which he said reflects the financial health of residents. He also highlighted Invitation Homes’ partnership with Esusu, noting that more than 160,000 residents have joined its no-cost positive credit reporting program, with the majority improving their average credit score “by nearly 50 points since enrolling.”
Tanner said resident behavior underpins the “resilience” of the business. He said same-store average resident tenure was over 40 months and resident renewals were over 78% in the first quarter.
In response to a question about turnover, Tanner said move-outs tied to home purchases have been “about 16%-17%” over the last year, while roughly 25% of move-outs are related to life transitions such as moving events or schools, which he said have been “incredibly consistent” over the last four quarters.
Expenses: tough comparison, full-year outlook unchanged
Lobner said the 5.7% increase in same-store expenses was elevated versus full-year expectations due to an unusually low expense base in the first quarter of 2025, driven by “abnormally mild weather” and “exceptionally low turnover.” He said the company expects comparisons to normalize and reiterated full-year expense guidance of 3% to 4%.
Chief Financial Officer Jon Olsen said core FFO per share was generally flat year-over-year and AFFO per share declined 2.6%, which he said was consistent with expectations given that first quarter 2025 benefited from post-pandemic-high occupancy, low expense growth, and lower-than-trend recurring capital expenditures. Olsen added that the weighted average share count used in per-share metrics “does not yet fully reflect” the impact of the quarter’s share repurchase activity.
Capital allocation: dispositions accelerate, buybacks expanded
Management emphasized a focus on capital allocation amid a share price that Tanner said “has not been where we want it to be.” During the quarter, the company completed the full $500 million share repurchase authorization approved last October, including $400 million of buybacks since its February earnings call. Tanner also said the board approved a new $500 million repurchase authorization.
Olsen said Invitation Homes repurchased approximately 17 million shares for roughly $439 million in the first quarter. Including repurchases in the fourth quarter of 2025, the company retired more than 19 million shares under the prior authorization at an average price of $25.86.
Olsen also pointed to momentum in the company’s disposition program. In the first quarter, Invitation Homes sold 483 wholly owned homes for $206 million, which he said was “well ahead of our expectations.” He said sale prices and days on market continued to outperform underwriting, and the company achieved pro forma stabilized cap rates “in the low 4%s.” Olsen compared the company’s average home sale price of $427,000 in the quarter with its implied price paid for stock repurchases of $270,000 per home.
Chief Investment Officer Scott Eisen said dispositions are driven by a pre-identified list of homes that are not long-term holds, including assets in submarkets where the company does not want a long-term presence and homes with higher capital expenditure needs. He said the homes sold represent “generally speaking, … the lower quality homes” rather than the highest-quality properties in the portfolio. Eisen noted that year-to-date dispositions were roughly 40% in Florida and about 25% in California, depending on when identified homes become vacant.
Asked whether more dispositions could lead to a special dividend, Tanner said the company plans to use dispositions as a “measured lever” and will continue to evaluate capital allocation options through the second quarter. Olsen added that REIT tax rules are a consideration and that homes sold often have a lower tax basis, which can trigger taxable gains. He also said a practical constraint is that the company renews about 80% of leases, meaning the pool of homes available for sale at any given time is a relatively small portion of the portfolio.
Balance sheet and guidance; policy and development initiatives
Olsen said the balance sheet remains “in excellent shape,” with $1.3 billion of available liquidity at quarter end and total indebtedness of approximately $8.9 billion. He said no debt reaches final maturity before June 2027. Net debt to adjusted EBITDA was 5.6x, within the company’s long-term target range of 5.5x to 6x. Olsen also said 89.5% of debt is fixed-rate or swapped to fixed and about 90% of wholly owned homes are unencumbered.
The company maintained full-year guidance provided in February. Olsen said dispositions are tracking ahead of expectations and insurance renewal outcomes were favorable versus assumptions, but he said management expects to provide further updates after most of peak leasing season. In a follow-up on expenses, Olsen said insurance is trending slightly better than expected across non-property coverage lines, with the change from the original midpoint amounting to “a little less than $2 million,” which he said is not material.
On development and partnerships, Tanner said the company’s forward pipeline stands at just over $200 million, “reduced roughly two-thirds from where it was a year ago.” Eisen said the company’s current forward backlog is 556 homes, down from nearly 2,700 homes at its peak in the second quarter of 2024, reflecting a shift in capital allocation amid cost of capital considerations and an increased focus on dispositions.
Tanner also discussed advocacy efforts in Washington, saying he has met with policymakers at the White House, Treasury, and Capitol Hill. He described “constructive dialogue” around housing affordability and said policymakers and media are “much better educated as to what the industry does now.” Tanner said discussions are dynamic and that stakeholders recognize the need for regulatory clarity that does not “stunt housing supply.”
Regarding ResiBuilt, which the company acquired in January, Tanner said integration has moved quickly, and he previously noted the platform delivered over 300 homes to third-party buyers during the quarter. Eisen said Invitation Homes is pleased with the integration and that ResiBuilt is executing on existing customer contracts while building a backlog of future fee-build partners, though “some projects have been put on hold until we have further clarity with the legislation in Washington.” Eisen said the strategy remains to grow fee-build work for joint venture partners and, eventually, for Invitation Homes.
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.
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