Invitation Homes Inc 10-Q for FY2026 Q3
Invitation Homes Inc. (INVH)
10-Q
2026-10-29
For: 2026-09-30
View Original
Added on
October 29, 2026
About this 10-Q
Invitation Homes Inc filed this 10-Q on October 29, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Invitation Homes acquired ResiBuilt Homes, LLC on January 14, 2026, adding homebuilding capabilities. For the three months ended September 30, 2026, total revenues rose 6.3% to $731.3 million and net income rose 15.9% to $159,089 thousand. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $731.28M
- up 6.3% from $688.17M a year earlier
- Net income
- $158.49M
- up 15.9% from net income of $136.74M a year earlier
- Diluted EPS
- $0.27
- up 22.7% from $0.22 a year earlier
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the quarterly period ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the transition period from | to | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commission File Number | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Exact name of registrant as specified in its charter) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Registrant’s telephone number, including area code) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Former name, former address and former fiscal year, if changed since last report) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NYSE Texas, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
☑ | No | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
☑ | No | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
☑ | Accelerated Filer | ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emerging Growth Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yes | ☐ | No | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 28, 2026, there were 576,154,556 shares of common stock, par value $0.01 per share, outstanding.
INVITATION HOMES INC.
| Page | |||||||||||
PART I — Financial Information | |||||||||||
| Item | 1. | ||||||||||
| Item | 2. | ||||||||||
| Item | 3. | ||||||||||
| Item | 4. | ||||||||||
PART II — Other Information | |||||||||||
| Item | 1. | ||||||||||
| Item | 1A. | ||||||||||
| Item | 2. | ||||||||||
| Item | 3. | ||||||||||
| Item | 4. | ||||||||||
| Item | 5. | Other Information | |||||||||
| Item | 6. | ||||||||||
AVAILABLE INFORMATION
We file annual, quarterly, and current reports, proxy statements, and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov. We maintain a website at www.invh.com, where we make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act available free of charge as soon as reasonably practicable after they are filed with or furnished to the SEC. Additionally, we may, from time to time, disclose material information to investors and the public through our investor relations website at www.invh.com, press releases, public conference calls and webcasts, and our LinkedIn pages (https://www.linkedin.com/company/invitation-homes/ and https://www.linkedin.com/showcase/resibuilt-by-invitation-homes/). We may use any one or a combination of these channels for any particular announcement. We encourage investors, the media, and others interested in our company to monitor these channels, as information we post to them could be deemed material.
In addition, you may automatically receive email alerts and other information about Invitation Homes when you enroll your email address in the "receive investor email alerts" section at www.invh.com. The contents of our website and social media channels, and the information contained on or through them, are not a part of this filing and are not incorporated by reference herein.
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties that may impact our financial condition, results of operations, cash flows, business, associates, and residents, including, among others, risks inherent to the single-family rental industry and our business model, macroeconomic factors beyond our control, federal, state, and local laws, regulations, executive actions, and policy initiatives (including the implementation of the 21st Century ROAD to Housing Act (the “Housing Act”) and related rulemaking, any limitations on institutional participation in the single-family housing market, and the effects of the Housing Act on institutional demand for our build-to-rent communities, fee-build operations, and construction and development lending), competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) fees, and insurance costs, poor resident selection and defaults and non-renewals by our residents, our dependence on third parties for key services, risks related to the evaluation of properties, performance of our information technology systems, development and use of artificial intelligence (“AI”), risks related to our indebtedness, risks related to the potential negative impact of fluctuating global and United States economic conditions (including inflation and imposition or increase of tariffs and trade restrictions by the United States and foreign countries), uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to, those described under Part I. Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report on Form 10-K”) as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q, in the Annual Report on Form 10-K, and in our other periodic filings. The forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
3
DEFINED TERMS
Invitation Homes Inc. (“INVH”), a real estate investment trust (“REIT”), conducts its operations through Invitation Homes Operating Partnership LP (“INVH LP”). Through THR Property Management L.P., a wholly owned subsidiary of INVH LP, and its wholly owned subsidiaries (collectively, the “Manager”), we provide all management and other administrative services with respect to the properties we own. The Manager also provides professional property and asset management services to portfolio owners of single-family homes for lease, including our investments in unconsolidated joint ventures. Additionally, we engage in the construction of single-family rental communities through build-to-rent development and third-party fee-building arrangements, as well as offer construction loans to third‑party borrowers to finance the development of single-family residential communities. Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer to INVH and its consolidated subsidiaries.
In this Quarterly Report on Form 10-Q:
•“average monthly rent” represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period and reflects the impact of non-service rent concessions and contractual rent increases amortized over the life of the related lease. We believe average monthly rent reflects pricing trends that significantly impact rental revenues over time, making average monthly rent useful to management and external stakeholders as a means of evaluating changes in rental revenues across periods;
•“average occupancy” for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period. We believe average occupancy significantly impacts rental revenues in a given period, making comparisons of average occupancy across different periods helpful to management and external stakeholders in evaluating changes in rental revenues across periods;
•“Carolinas” includes Charlotte-Concord-Gastonia, NC-SC, Greensboro-High Point, NC, Raleigh-Cary, NC, Durham-Chapel Hill, NC, and Winston-Salem, NC;
•“core markets” refers to markets where we have meaningful scale and the ability to conduct business using our existing operating platform. Our current 16 core markets are identified on our portfolio table in Part I. Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Our Portfolio;”
•“days to re-resident” for an individual home represents the number of days between (i) the date the prior resident moves out of a home and (ii) the date the next resident is granted access to the same home, which is deemed to be the earlier of the next resident’s contractual lease start date and the next resident’s move-in date. Days to re-resident impacts our average occupancy and thus our rental revenues, making comparisons of days to re-resident helpful to management and external stakeholders in evaluating changes in rental revenues across periods;
•“in-fill” refers to markets, MSAs, submarkets, neighborhoods, or other geographic areas that are typified by significant population densities and low availability of land suitable for development into competitive properties, resulting in limited opportunities for new construction;
•“Metropolitan Statistical Area” or “MSA” is defined by the United States Office of Management and Budget as a region associated with at least one urbanized area that has a population of at least 50,000 and comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting;
•“net effective rental rate growth” for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease and, in each case, reflects the impact of non-service rent concessions and contractual rent increases amortized over the life of the related lease. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home. Net effective rental rate growth drives changes in our average monthly rent, making net effective rental rate growth useful to management and external stakeholders as a means of evaluating changes in rental revenues across periods;
•“Northern California” includes Sacramento-Roseville-Folsom, CA, San Francisco-Oakland-Berkeley, CA, Stockton, CA, Vallejo, CA, and Yuba City, CA;
4
•“PSF” means per square foot. When comparing homes or cohorts of homes, we believe PSF calculations help management and external stakeholders normalize metrics for differences in property size, enabling more meaningful comparisons based on characteristics other than property size;
•“Same Store” or “Same Store portfolio” includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as our existing Same Store portfolio, homes occupied without a valid lease or other legal right of possession, and homes in markets that we have announced an intent to exit where we no longer operate a significant number of homes for the primary purpose of income generation. Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality, characteristics, and lease terms as our existing Same Store portfolio may be considered stabilized at the time of acquisition. Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established. We believe information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides management and external stakeholders with meaningful information about the performance of our comparable homes across periods and about trends in our organic business;
•“Southeast United States” includes our Atlanta and Carolinas markets;
•“South Florida” includes Miami-Fort Lauderdale-Pompano Beach, FL, and Port St. Lucie, FL;
•“Southern California” includes Los Angeles-Long Beach-Anaheim, CA, Oxnard-Thousand Oaks-Ventura, CA, Riverside-San Bernardino-Ontario, CA, and San Diego-Chula Vista-Carlsbad, CA;
•“total homes” or “total portfolio” refers to the total number of homes we own, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to wholly owned homes and excludes homes owned in joint ventures. Additionally, unless the context otherwise requires, all measures in this Quarterly Report on Form 10-Q are presented on a total portfolio basis;
•“turnover rate” represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population. To the extent the measurement period shown is less than 12 months, the turnover rate may be reflected on an annualized basis. We believe turnover rate impacts average occupancy and thus our rental revenues, making comparisons of turnover rate helpful to management and external stakeholders in evaluating changes in rental revenues across periods. In addition, turnover can impact our cost to maintain homes, making changes in turnover rate useful to management and external stakeholders in evaluating changes in our property operating and maintenance expenses across periods; and
•“Western United States” includes our Southern California, Northern California, Seattle, Phoenix, Las Vegas, and Denver markets.
5
PART I
ITEM 1. FINANCIAL STATEMENTS
INVITATION HOMES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share data)
| September 30, 2026 | December 31, 2025 | |||||||||||||
| (unaudited) | ||||||||||||||
| Assets: | ||||||||||||||
| Investments in single-family residential properties: | ||||||||||||||
| Land | $ | $ | ||||||||||||
| Building and improvements | ||||||||||||||
| Less: accumulated depreciation | ( | ( | ||||||||||||
| Investments in single-family residential properties, net | ||||||||||||||
| Cash and cash equivalents | ||||||||||||||
| Restricted cash | ||||||||||||||
| Goodwill | ||||||||||||||
| Investments in unconsolidated joint ventures | ||||||||||||||
| Other assets, net | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities: | ||||||||||||||
Secured debt, net | $ | $ | ||||||||||||
| Unsecured notes, net | ||||||||||||||
| Term loan facilities, net | ||||||||||||||
| Revolving facility | ||||||||||||||
| Accounts payable and accrued expenses | ||||||||||||||
| Resident security deposits | ||||||||||||||
| Other liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||
Stockholders’ equity | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Accumulated deficit | ( | ( | ||||||||||||
| Accumulated other comprehensive income | ||||||||||||||
Total stockholders’ equity | ||||||||||||||
| Non-controlling interests | ||||||||||||||
| Total equity | ||||||||||||||
| Total liabilities and equity | $ | $ | ||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share data)
(unaudited)
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Rental revenues and other property income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Management fee revenues | ||||||||||||||||||||||||||||||||
Homebuilding revenues | ||||||||||||||||||||||||||||||||
| Total revenues | ||||||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||
| Property operating and maintenance | ||||||||||||||||||||||||||||||||
| Property management expense | ||||||||||||||||||||||||||||||||
| Homebuilding cost of sales | ||||||||||||||||||||||||||||||||
| General and administrative | ||||||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||||||||
Casualty losses, impairment, and other | ||||||||||||||||||||||||||||||||
| Total expenses | ||||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | ||||||||||||||||||||||||||||||||
| Income (losses) from investments in unconsolidated joint ventures | ( | ( | ( | |||||||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | ( | ( | ||||||||||||||||||||||||||||||
| Other, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interests | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Net income attributable to common stockholders | ||||||||||||||||||||||||||||||||
| Net income available to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Net income available to common stockholders — basic and diluted (Note 12) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding — basic | ||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding — diluted | ||||||||||||||||||||||||||||||||
| Net income per common share — basic | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Net income per common share — diluted | $ | $ | $ | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on interest rate swaps | ( | |||||||||||||||||||||||||||||||||||||||||||
Gains from interest rate swaps reclassified into earnings from accumulated other comprehensive income (loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income attributable to non-controlling interests | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Comprehensive income attributable to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
8
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
For the Three and Nine Months Ended September 30, 2026
(in thousands, except share and per share data)
(unaudited)
| Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($ | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock — settlement of RSUs, net of tax | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2026 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($ | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock — settlement of RSUs, net of tax | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2026 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
9
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (continued)
For the Three and Nine Months Ended September 30, 2025
(in thousands, except share and per share data)
(unaudited)
| Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other comprehensive loss | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($ | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interest | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock — settlement of RSUs, net of tax | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2025 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders' Equity | Non-Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other comprehensive loss | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($ | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock — settlement of RSUs, net of tax | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Redemption of OP Units for common stock | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2025 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
10
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Nine Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Operating Activities: | ||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||
| Gain on sale of property, net of tax | ( | ( | ||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||
| Amortization of deferred financing costs | ||||||||||||||||||||
| Amortization of debt discounts | ||||||||||||||||||||
| Provisions for impairment | ||||||||||||||||||||
| Change in fair value of derivative instruments | ( | |||||||||||||||||||
Losses from investments in unconsolidated joint ventures, net of operating distributions | ||||||||||||||||||||
| Loss on debt extinguishment and modifications | ||||||||||||||||||||
| Other non-cash amounts included in net income | ||||||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Other assets, net | ( | |||||||||||||||||||
| Accounts payable and accrued expenses | ||||||||||||||||||||
| Resident security deposits | ||||||||||||||||||||
| Other liabilities | ( | |||||||||||||||||||
| Net cash provided by operating activities | ||||||||||||||||||||
| Investing Activities: | ||||||||||||||||||||
Acquisition and initial renovations of single-family residential properties | ( | ( | ||||||||||||||||||
| Other capital expenditures for single-family residential properties | ( | ( | ||||||||||||||||||
| Proceeds from sale of single-family residential properties | ||||||||||||||||||||
Acquisition of homebuilding platform (Note 16) | ( | |||||||||||||||||||
Investments in land and construction in progress | ( | |||||||||||||||||||
| Investments in unconsolidated joint ventures | ( | ( | ||||||||||||||||||
| Non-operating distributions from unconsolidated joint ventures | ||||||||||||||||||||
| Fundings of construction and development loans | ( | |||||||||||||||||||
| Other investing activities | ( | ( | ||||||||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||||||||
| Financing Activities: | ||||||||||||||||||||
| Payment of dividends and dividend equivalents | ( | ( | ||||||||||||||||||
| Distributions to non-controlling interests | ( | ( | ||||||||||||||||||
Repurchases of common stock | ( | |||||||||||||||||||
| Payment of taxes related to net share settlement of RSUs | ( | ( | ||||||||||||||||||
Payments on secured debt | ( | ( | ||||||||||||||||||
| Proceeds from unsecured notes | ||||||||||||||||||||
| Proceeds from revolving facility | ||||||||||||||||||||
| Payments on revolving facility | ( | ( | ||||||||||||||||||
| Deferred financing costs paid | ( | ( | ||||||||||||||||||
| Debt extinguishment and modification costs paid | ( | |||||||||||||||||||
| Other financing activities | ( | ( | ||||||||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||||||||
11
INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
For the Nine Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Change in cash, cash equivalents, and restricted cash | $ | ( | $ | ( | ||||||||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period (Note 4) | ||||||||||||||||||||
| Cash, cash equivalents, and restricted cash, end of period (Note 4) | $ | $ | ||||||||||||||||||
| Supplemental cash flow disclosures: | ||||||||||||||||||||
| Interest paid, net of amounts capitalized | $ | $ | ||||||||||||||||||
| Interest capitalized as investments in single-family residential properties, net | ||||||||||||||||||||
| Cash paid for income taxes | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | ||||||||||||||||||||
| Financing cash flows from finance leases | ||||||||||||||||||||
| Non-cash investing and financing activities: | ||||||||||||||||||||
| Transfer of residential property, net to other assets, net for held for sale assets | $ | $ | ||||||||||||||||||
| Accrued residential property capital improvements at period end | ||||||||||||||||||||
| Accrued renovation improvements at period end | ||||||||||||||||||||
Reclassification of construction in progress to residential property | ||||||||||||||||||||
| Consolidation of investments in single-family residential properties in connection with dissolution of joint ventures (Note 5) | ||||||||||||||||||||
Contingent consideration recognized for acquisition of homebuilding platform (Note 16) | ||||||||||||||||||||
Dividends declared but not paid at period end | ||||||||||||||||||||
| Change in other comprehensive income (loss) from cash flow hedges | ( | |||||||||||||||||||
| ROU assets obtained in exchange for operating lease liabilities | ||||||||||||||||||||
| ROU assets obtained in exchange for finance lease liabilities | ||||||||||||||||||||
12
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
The accompanying notes are an integral part of these condensed consolidated financial statements.
13
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 1—Organization and Formation
Invitation Homes Inc. (“INVH”) is a real estate investment trust (“REIT”), organized under the laws of Maryland, that conducts its operations through Invitation Homes Operating Partnership LP (“INVH LP”). INVH LP was formed for the purpose of owning, renovating, leasing, and operating single-family residential properties. Through THR Property Management L.P., a wholly owned subsidiary of INVH LP, and its wholly owned subsidiaries (collectively, the “Manager”), we provide all management and other administrative services with respect to the properties we own. The Manager also provides professional property and asset management services to portfolio owners of single-family homes for lease, including our investments in unconsolidated joint ventures. Additionally, we engage in the construction of single-family rental communities through build-to-rent development and third-party fee-building arrangements, as well as offer construction loans to third‑party borrowers to finance the development of single-family residential communities. As of September 30, 2026, we wholly own 85,961 homes for lease, jointly own 7,445 homes for lease, and provide professional third-party property and asset management services for an additional 15,354 homes.
The limited partnership interests of INVH LP consist of common units and other classes of limited partnership interests that may be issued (the “OP Units”). As of September 30, 2026, INVH owns 99.6 % of the common OP Units directly and through Invitation Homes OP GP LLC, a wholly owned subsidiary of INVH (the “General Partner”), and INVH has the full, exclusive, and complete responsibility for and discretion over the day-to-day management and control of INVH LP.
Our organizational structure includes several wholly owned subsidiaries of INVH LP that were formed to facilitate certain of our financing arrangements (the “Borrower Entities”). These Borrower Entities are used to align the ownership of our single-family residential properties with certain of our debt instruments. Collateral for certain of our individual debt instruments may be in the form of equity interests in the Borrower Entities or in pools of single-family residential properties owned either directly by the Borrower Entities or indirectly by their wholly owned subsidiaries (see Note 7).
References to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, INVH LP, and the consolidated subsidiaries of INVH LP.
Note 2—Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.
These condensed consolidated financial statements include the accounts of INVH and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments that are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026.
We consolidate wholly owned subsidiaries and entities we are otherwise able to control in accordance with GAAP. We evaluate each investment entity that is not wholly owned to determine whether to follow the variable interest entity (“VIE”) or the voting interest entity (“VOE”) model. Once the appropriate consolidation model is identified, we then evaluate whether the entity should be consolidated. Under the VIE model, we consolidate an investment if we have control to direct the activities of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the VOE model, we consolidate an investment if (1) we control the investment through ownership of a majority voting interest if the investment is not a limited partnership or (2) we control the investment through our ability to remove the other partners in the investment, at our discretion, when the investment is a limited partnership.
14
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Based on these evaluations, we account for each of the investments in joint ventures described in Note 5 using the equity method. Our initial investments in the joint ventures are recorded at cost, except for any such interest initially recorded at fair value in connection with a business combination. The investments in these joint ventures are subsequently adjusted for our proportionate share of net earnings or losses and other comprehensive income or loss, cash contributions made and distributions received, and other adjustments, as appropriate. Distributions of operating profit from the joint ventures are reported as part of operating activities while distributions related to a capital transaction, such as a refinancing transaction or sale, are reported as investing activities on our condensed consolidated statements of cash flows. When events or circumstances indicate that our investments in unconsolidated joint ventures may not be recoverable, we assess the investments for and recognize other-than-temporary impairment.
Non-controlling interests represent the OP Units not owned by INVH, including any OP Units resulting from vesting and conversion of units granted in connection with certain share-based compensation awards. Non-controlling interests are presented as a separate component of equity on the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025, and the condensed consolidated statements of operations for the three and nine months ended September 30, 2026 include an allocation of the net income attributable to the non-controlling interest holders. OP Units are redeemable for shares of our common stock on a one -for-one basis or, in our sole discretion, cash, and redemptions of OP Units are accounted for as a reduction in non-controlling interests with an offset to stockholders’ equity based on the pro rata number of OP Units redeemed.
Significant Risks and Uncertainties
Our financial condition and results of operations are subject to risks related to fluctuating global and United States economic conditions (including inflation, interest rate increases, and labor shortages), uncertainty in financial markets, geopolitical tensions, and a general decline in business activity and/or consumer confidence. In addition, our business is subject to risks arising from legislative, regulatory, and executive actions and policy initiatives at the federal, state, and local levels that address residential housing supply and availability, including increased scrutiny of institutional ownership of single-family rental housing and measures that could restrict or otherwise affect the acquisition, ownership, or operation of single-family residential rental properties. The viability of our land development, fee-building, and build-to-rent operations, as well as our construction and development lending activities, similarly depends on these macroeconomic factors and on the continued participation of institutional purchasers, who have historically represented a meaningful source of demand for newly constructed single-family homes.
These factors could adversely affect (i) our occupancy levels, rental rates, and collections, (ii) our ability to acquire or dispose of properties on economically favorable terms, (iii) our access to financial markets on attractive terms, or at all, (iv) the value of our homes and our business that could cause us to recognize impairments in the value of our assets, and (v) demand for our land development, fee-building, and build-to-rent operations, as well as our construction and development lending activities. Such macroeconomic conditions and geopolitical events may also negatively impact consumer income, credit availability, and spending, which may adversely impact our business, financial condition, cash flows, and results of operations, including the ability of our residents to pay rent. Regulatory actions or policy changes affecting single-family residential rental housing, whether enacted or proposed, including but not limited to the 21st Century ROAD to Housing Act that became federal law on July 11, 2026 (the “Housing Act”), could limit our ability to acquire additional homes, require us to modify our growth, investment, development, or disposition strategies, reduce the scale or efficiency of our operations, increase compliance costs, subject us to increased regulatory scrutiny, or otherwise adversely affect market dynamics, our business, and results of operations, financial condition, or cash flows. In addition, expanded tenant-protection and rent regulation requirements (whether enacted or proposed) could increase operating costs, reduce revenue, limit operational flexibility, and increase litigation and regulatory enforcement risk.
15
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
We believe the legislative uncertainty preceding the enactment of the Housing Act contributed to certain prospective institutional purchasers deferring or curtailing their acquisition activity, which has reduced demand for our build-to-rent communities and fee-build operations, as well as for our construction and development lending. To the extent institutional demand remains constrained, our revenues, margins, and returns on invested capital in these business activities could be materially adversely affected, and if institutional capital is redirected away from single-family housing, our ability to maintain a pipeline of controlled lots on favorable terms through joint ventures, land banking arrangements, or similar structures could be impaired. Although the Housing Act includes an exception for build-to-rent development, the implementing regulatory framework may impose compliance costs or operational constraints that diminish the attractiveness of these programs to us, institutional investors, or our partners, and there can be no assurance that such exceptions will be maintained or that future legislative or regulatory action will not further restrict institutional participation in the single-family housing market.
In addition, consumer confidence and spending may decline in response to changes in fiscal and monetary policy, reductions in income or asset values, and other macroeconomic factors. Labor shortages and inflationary increases in labor and material costs have impacted and may continue to impact certain aspects of our business. The imposition of or an increase in tariffs and trade restrictions by the United States and foreign countries could lead to increased costs and supply chain disruptions.
If we are not able to navigate any such changes, they could have a material adverse effect on our business and results of operations, as well as on the price of our common stock.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates.
Reclassifications
For the three and nine months ended September 30, 2025, we combined balances of $380 and $69 , respectively, from gains on investments in equity and other securities, net, into other, net to conform to our current presentation on the condensed consolidated statements of operation. The reclassification had no effect on total reported net income for the comparative periods.
The following table summarizes prior year balances that were reclassified to conform to our current presentation on the condensed consolidated statements of cash flows. The reclassifications had no effect on total reported operating, investing, or financing activities for the comparative periods.
For the Nine Months Ended September 30, 2025 | ||||||||||||||
Operating Activities: | ||||||||||||||
Gains on investments in equity and other securities, net(1) | $ | ( | ||||||||||||
Investing Activities: | ||||||||||||||
Deposits for acquisition of single-family residential properties(2) | ||||||||||||||
Initial renovations to single-family residential properties(2) | ( | |||||||||||||
Investments in equity securities(3) | ( | |||||||||||||
(1)Reclassified into other non-cash amounts included in net income.
(2)Reclassified into acquisition and initial renovation of single-family residential properties.
(3)Reclassified into other investing activities.
16
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Accounting Policies
During the nine months ended September 30, 2026, we established accounting policies related to revenue recognition for our homebuilding business and expected credit losses on our construction and development loans (see Note 6). There have not been any other changes to our significant accounting policies that have had a material impact on our condensed consolidated financial statements and related notes, compared to those policies disclosed in our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Recently Adopted Accounting Standards
In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which allows the election of a practical expedient when estimating credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. In developing reasonable and supportable forecasts, the practical expedient allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The updated standard was effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. The amendments should be applied on a prospective basis. We have elected to apply the practical expedient, and this ASU did not have a material impact on our condensed consolidated financial statements and disclosures.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures, which requires public business entities to provide detailed disclosures in the notes to the condensed consolidated financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This new guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis, with retrospective application allowed. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements and disclosures.
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in a Business Combination in the Acquisition of a Variable Interest Entity. This ASU amends the guidance for determining the accounting acquirer in transactions involving the acquisition of a VIE that meets the definition of a business. The amendments are intended to improve consistency and comparability in financial reporting by aligning the accounting treatment of VIE acquisitions with that of VOEs. The ASU also allows for the possibility of reverse acquisitions involving VIEs, which was not permitted under prior guidance. The updated standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those fiscal years, with early adoption permitted. The amendments should be applied on a prospective basis. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements and disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software costs by removing prescriptive project stage guidance and introducing a principles-based capitalization threshold. The ASU requires entities to begin capitalizing internal-use software costs when (1) management has authorized and committed to funding the software project and (2) it is probable the project will be completed and the software will be used to perform the function intended. The amendment also introduces a requirement to evaluate significant development uncertainty with the development activities of the software. The updated standard is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments may be applied on a prospective, modified, or retrospective basis. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements and disclosures.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which introduces refinements to existing hedge accounting guidance. The amendments clarify application in five key areas: (1) similar risk assessment for cash flow hedges, (2) hedging interest payments on choose-your-rate debt, (3) cash flow hedges of nonfinancial forecasted transactions, (4) use of net written options as hedging instruments, and
17
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
(5) foreign currency-denominated debt as both a hedging instrument and hedged item. The updated standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments should be applied on a prospective basis. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements and disclosures.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the applicability of Topic 270, specifies the form and content of interim financial statements, compiles a comprehensive list of existing interim disclosures required by GAAP, and introduces a disclosure principle requiring entities to report events since year end that have a material impact. The updated standard is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments should be applied on a prospective or retrospective basis. We are currently evaluating the impact of this ASU on our interim condensed consolidated financial statements and disclosures.
Note 3—Investments in Single-Family Residential Properties
The following table sets forth the net carrying amount associated with our properties by component:
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Land | $ | $ | ||||||||||||
| Single-family residential property | ||||||||||||||
| Capital improvements | ||||||||||||||
| Equipment | ||||||||||||||
| Total gross investments in the properties | ||||||||||||||
| Less: accumulated depreciation | ( | ( | ||||||||||||
| Investments in single-family residential properties, net | $ | $ | ||||||||||||
As of September 30, 2026 and December 31, 2025, the carrying amount of the residential properties above includes $147,367 and $148,650 , respectively, of capitalized acquisition costs (excluding purchase price), along with $77,194 and $79,124 , respectively, of capitalized interest, $30,644 and $31,493 , respectively, of capitalized property taxes, $4,989 and $5,138 , respectively, of capitalized insurance, and $3,681 and $3,758 , respectively, of capitalized homeowners’ association (“HOA”) fees.
During the three months ended September 30, 2026 and 2025, we recognized $185,136 and $183,653 , respectively, of depreciation expense related to the components of the properties, and $6,427 and $4,804 , respectively, of depreciation and amortization related to corporate fixed assets. These amounts are included in depreciation and amortization in the condensed consolidated statements of operations. Further, during the three months ended September 30, 2026 and 2025, impairments totaling $796 and $335 , respectively, have been recognized and are included in casualty losses, impairment and other in the condensed consolidated statements of operations. See Note 11 for additional information regarding these impairments.
During the nine months ended September 30, 2026 and 2025, we recognized $555,459 , and $543,775 , respectively, of depreciation expense related to the components of the properties, and $18,435 , and $13,283 , respectively, of depreciation and amortization related to corporate fixed assets. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the nine months ended September 30, 2026 and 2025, impairments totaling $2,226 , and $434 , respectively, have been recognized and are included in casualty losses, impairment, and other in the condensed consolidated statements of operations. See Note 11 for additional information regarding these impairments.
18
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 4—Cash, Cash Equivalents, and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of such amounts shown on the condensed consolidated statements of cash flows:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||||||||||||||
| Restricted cash | ||||||||||||||||||||||||||
Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows | $ | $ | ||||||||||||||||||||||||
Pursuant to the terms of the Secured Debt loans (as defined in Note 7), we are required to establish, maintain, and fund from time to time (generally, either monthly or at the time borrowings are funded) certain specified reserve accounts. These reserve accounts include, but are not limited to, the following types of accounts: (i) property tax reserves; (ii) insurance reserves; (iii) capital expenditure reserves; and (iv) HOA reserves. The reserve accounts associated with our Secured Debt loans are under the sole control of the loan servicer. Additionally, we hold security deposits pursuant to resident lease agreements that we are required to segregate. We also hold deposits for certain tax deferred property exchange transactions and letters of credit required by certain of our insurance policies, for which the use of each are restricted. Accordingly, amounts funded to these reserve accounts, security deposit accounts, and other restricted accounts have been classified on our condensed consolidated balance sheets as restricted cash.
The amounts funded, and to be funded, to the reserve accounts are subject to formulae included in the Secured Debt loan agreements and are to be released to us subject to certain conditions specified in the loan agreements being met. To the extent that an event of default were to occur, the loan servicer has discretion to use such funds to either settle the applicable operating expenses to which such reserves relate or reduce the allocated loan amount associated with a residential property of ours.
The balances of our restricted cash accounts are set forth in the table below. As of September 30, 2026 and December 31, 2025, no amounts were funded to the insurance accounts as the conditions specified in the Secured Debt loan agreements that require such funding did not exist.
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Resident security deposits | $ | $ | ||||||||||||
Tax deferred property exchange deposits | ||||||||||||||
| Property taxes | ||||||||||||||
| Collections | ||||||||||||||
| Capital expenditures | ||||||||||||||
| Letters of credit | ||||||||||||||
| Special and other reserves | ||||||||||||||
| Total | $ | $ | ||||||||||||
19
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 5—Investments In Unconsolidated Joint Ventures
The following table summarizes our investments in unconsolidated joint ventures, which are accounted for using the equity method of accounting, as of September 30, 2026 and December 31, 2025:
| Number of Properties Owned | Carrying Value | |||||||||||||||||||||||||||||||
| Ownership Percentage | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||
2020 Rockpoint JV(1) | $ | $ | ||||||||||||||||||||||||||||||
Upward America JV(2) | ||||||||||||||||||||||||||||||||
2024 Peregrine JV(3) | ||||||||||||||||||||||||||||||||
FNMA(4)(5) | ||||||||||||||||||||||||||||||||
2022 Rockpoint JV(1) | ||||||||||||||||||||||||||||||||
Pathway Property Company(6) | ||||||||||||||||||||||||||||||||
Pathway Operating Company(6) | N/A | N/A | ||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||
(1)Owns homes in markets within the Western United States, Southeast United States, Florida, Tennessee, and Texas.
(2)Owns homes in markets within the Southeast United States, Florida, Minnesota, Tennessee, and Texas.
(3)Owns homes in markets within the Southeast United States and Florida.
(4)Owns homes within the Western United States.
(5)During the year ended December 31, 2025, our share of income increased from 10.0 % to 50.0 % as a result of achieving a promote interest threshold pursuant to the terms of the joint venture agreement.
(6)On September 15, 2026, we executed a series of agreements to effectuate the dissolution of the Pathway joint ventures, Pathway Property Company and Pathway Operating Company (the “Pathway Transaction,” as more fully described below). Pathway Property Company owned a portfolio of single-family residential properties, and Pathway Operating Company provided technology platform and asset management services to Pathway Property Company. As of December 31, 2025, under the joint venture structure, we owned homes in markets within the Western United States, Southeast United States, Florida, Tennessee, and Texas.
Each joint venture was initially capitalized with equity investments. Certain of the joint ventures subsequently entered into financing arrangements, and we have guaranteed the funding of certain, tax, insurance, and non-conforming property reserves related to the financing of one of the joint ventures. Total remaining equity commitments for our investments in unconsolidated joint ventures are $62,624 as of September 30, 2026.
In some cases, responsibility for management and operations of the individual joint venture is vested with our joint venture partner or their affiliates. For other joint ventures, a wholly owned subsidiary of INVH LP functions as an administrative member responsible for management and operations of the individual joint venture, subject to the joint venture partner’s approval of major decisions. Accordingly, we do not have a controlling interest in any of our joint ventures, and they are accounted for using the equity method of accounting.
We recorded net income (losses) from these investments for the three months ended September 30, 2026 and 2025, totaling $32,175 of net losses and $2,130 of net income, respectively, and for the nine months ended September 30, 2026 and 2025, totaling $37,662 and $7,890 of net losses, respectively, which are included in income (losses) from investments in unconsolidated joint ventures on the condensed consolidated statements of operations.
20
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
We earn property and/or asset management fees from each of our investments in unconsolidated joint ventures as of September 30, 2026, and these fees are related party transactions. Prior to the Pathway Transaction, we also earned asset management fees from Pathway Property Company. For the three months ended September 30, 2026 and 2025, we earned $6,348 , and $6,317 , respectively, and for the nine months ended September 30, 2026 and 2025, we earned $18,672 and $18,784 , respectively, of management fees from these related parties which are included in management fee revenues on the condensed consolidated statements of operations. As of September 30, 2026 and December 31, 2025, management fee receivables from our related parties totaled $1,987 and $1,884 , respectively. (See Note 6 for additional information regarding total management fee revenues.)
Pathway Transaction
In connection with the Pathway Transaction, we acquired the general partner and all other interests in Pathway Property Company, resulting in our ownership of a controlling financial interest in the entity and the consolidation of the 894 homes, along with other assets and liabilities, previously owned by Pathway Property Company. In conjunction with the Pathway Transaction, we contributed $196,912 to Pathway Property Company to repay the outstanding balance of and release the homes securing the joint venture’s warehouse loan. Additionally, the operating agreements governing the Pathway joint ventures were terminated, resulting in the dissolution of Pathway Operating Company. We recognized a $30,411
Note 6—Other Assets
As of September 30, 2026 and December 31, 2025, the balances in other assets, net are as follows:
| September 30, 2026 | December 31, 2025 | |||||||||||||
Receivables, net: | ||||||||||||||
| Construction and development loan receivables, net | $ | $ | ||||||||||||
| Rent receivables, net | ||||||||||||||
Homebuilding receivables and contract assets | ||||||||||||||
Other receivables | ||||||||||||||
Total receivables, net | ||||||||||||||
| Land and construction in progress | ||||||||||||||
Held for sale assets(1) | ||||||||||||||
| Investments in equity and other securities | ||||||||||||||
| ROU lease assets — operating and finance, net | ||||||||||||||
| Corporate fixed assets, net | ||||||||||||||
| Derivative instruments (Note 8) | ||||||||||||||
| Investments in debt securities, net | ||||||||||||||
| Prepaid expenses | ||||||||||||||
| Intangible assets other than goodwill | ||||||||||||||
| Amounts deposited and held by others | ||||||||||||||
| Other | ||||||||||||||
| Total | $ | $ | ||||||||||||
(1)As of September 30, 2026 and December 31, 2025, 330 and 278 properties, respectively, are classified as held for sale.
21
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Construction and Development Loan Receivables, net
Construction and development loan receivables, net represent loans made to third‑party borrowers to finance construction projects for the development of single-family residential properties. These loans are generally advanced over the construction phase and are secured by the underlying construction projects, including the related real estate assets under construction. The loan receivables are recorded at amortized cost, which consists of the outstanding principal balance, including funded loan advances and accrued interest, as applicable, adjusted for amortization of deferred loan origination fees and costs. Deferred loan origination fees and costs are amortized over the life of the loan using the effective interest method. The amortized cost of loan receivables is further reduced by the allowance for credit losses. As of September 30, 2026, we have funded $57,553 on six loans with remaining commitments totaling $221,886 . As of December 31, 2025, we had funded $6,638 on two loans with remaining commitments totaling $67,461 .
Allowance for Credit Losses on Construction and Development Loan Receivables
The amortized cost of loan receivables is reduced by the allowance for credit losses. We estimate our allowance for credit losses using a probability of default, loss given default, and exposure at default methodology applied to our construction and development loan portfolio. Expected credit losses are measured over the contractual life of each loan and incorporate third-party historical loss data, current portfolio conditions, and third-party macroeconomic forecasts over a 12-month reasonable and supportable forecast period. Following this forecast period, the loss rate assumptions revert to long-term historical expectations using a straight-line method.
We assess credit quality primarily through our internal risk rating system for each loan. Loans are assigned a risk rating on a scale of 1 to 5, with 1 representing the lowest level of credit risk and 5 representing the highest level of credit risk. Ratings are determined using a structured framework that considers several factors, including loan-to-cost ratios, sponsor strength and experience, construction progress, general contractor experience, occupancy and leasing conditions, market dynamics, and payment performance. The risk rating drives the loss rate assumptions used in the reserve calculation.
Our allowance includes reserves for both funded loan balances, which are recorded as a contra-asset to the related loan receivables, and unfunded loan commitments, which are recorded as a liability. Paid-in-kind interest is added to a loan’s principal balance and is incorporated into the allowance for credit loss model.
The following table summarizes the credit risk profiles of our construction and development loan receivables as of September 30, 2026 by year of origination at amortized cost.
| 2026 | 2025 | Total(1) | ||||||||||||||||||||||||||||||||||||||||||
Rating 1 | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Rating 2 | ||||||||||||||||||||||||||||||||||||||||||||
Rating 3 | ||||||||||||||||||||||||||||||||||||||||||||
Rating 4 | ||||||||||||||||||||||||||||||||||||||||||||
Rating 5 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
(1)No construction and development loans were originated prior to fiscal year 2025.
22
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
The following table presents the changes in the allowance for credit losses on construction and development loan receivables and the reserve for unfunded loan commitments for the three and nine months ended September 30, 2026.
For the Three Months Ended September 30, 2026 | For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||
Allowance for credit losses(1)(2) | ||||||||||||||||||||||||||
Beginning balance | $ | $ | ||||||||||||||||||||||||
Provision for credit losses(3) | ||||||||||||||||||||||||||
Ending balance | ||||||||||||||||||||||||||
Reserve for unfunded loan commitments(1)(4) | ||||||||||||||||||||||||||
Beginning balance | ||||||||||||||||||||||||||
Provision for credit losses(3) | ||||||||||||||||||||||||||
Ending balance | ||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
(1)No allowance for credit losses or reserve for unfunded loan commitments was recognized during the three and nine months ended September 30, 2025 as our construction and development loan activity was immaterial at that time.
(2)Included in other assets as a reduction to our construction and development loan receivables on the condensed consolidated balance sheet.
(3)Included in other, net on the condensed consolidated statements of operations.
(4)Included in other liabilities on the condensed consolidated balance sheet.
As of September 30, 2026, no construction and development loans were past due or placed on nonaccrual status. Additionally, there were no charge-offs or recoveries recorded during the three and nine months ended September 30, 2026.
Rent Receivables, net
We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months, provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements. Rental revenues and other property income and the corresponding rent and other receivables are recorded net of any concessions and bad debt (including actual write-offs, credit reserves, and uncollectible amounts) for all periods presented.
Variable lease payments consist of resident reimbursements for utilities, and various other fees, including late fees and lease termination fees, among others. Variable lease payments are charged based on the terms and conditions included in the resident leases. For the three months ended September 30, 2026 and 2025, rental revenues and other property income includes $48,329 and $45,638 of variable lease payments, respectively. For the nine months ended September 30, 2026 and 2025, rental revenues and other property income includes $138,414 and $130,159 of variable lease payments, respectively.
23
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Future minimum rental revenues and other property income under leases on our single-family residential properties in place as of September 30, 2026 are as follows:
| Year | Lease Payments to be Received | |||||||
| Remainder of 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Total | $ | |||||||
Homebuilding Receivables and Contract Assets
Homebuilding revenues and the corresponding receivables relate to performance obligations associated with the construction of residential properties for third‑party fee-build customers. These fee‑build contracts are generally structured as either fixed‑price arrangements, which include the contract fee, or cost‑plus‑fee arrangements, with fees determined as a percentage of costs incurred. Performance obligations are satisfied over time, and revenue is recognized as progress is made toward completion of the underlying contractual obligations. The determination of total expected costs requires the application of professional judgment and estimates, including labor, materials, and other direct and indirect costs necessary to satisfy the related performance obligations. We believe this revenue recognition approach appropriately reflects the transfer of control to the customer.
In fulfilling our performance obligations, we engage subcontractors and incur other direct costs on behalf of our customers. These costs are reimbursable and, in accordance with GAAP, are included in both homebuilding revenues and homebuilding cost of sales on the condensed consolidated statements of operations. For the three and nine months ended September 30, 2026, we recognized total homebuilding revenues of $35,849 and $129,054 , respectively.
Homebuilding receivables represent amounts billed to customers that have not yet been collected and reflect our unconditional right to cash. Customer payments are typically received within 30 to 45 days of billing. As of September 30, 2026, homebuilding receivables totaled $15,448 , and there were no homebuilding receivables as of December 31, 2025.
Revenue recognition may not align with billing or cash collections due to contractual billing terms, including advance billings and billings based on the completion of work, and may result in contract assets or contract liabilities. Contract assets arise when revenue is recognized in advance of billings, in accordance with contract terms, and are reclassified to accounts receivable when our right to consideration becomes unconditional. As of September 30, 2026, contract assets totaled $6,512 , and there were no contract assets as of December 31, 2025.
Contract liabilities primarily arise from advance billings, as permitted under contract terms, or payments received prior to the satisfaction of the related performance obligations and are recognized as revenue as we fulfill our performance obligations. These amounts are included in other liabilities on the condensed consolidated balance sheets. As of September 30, 2026, contract liabilities totaled $222 , and there were no contract liabilities as of December 31, 2025.
Remaining performance obligations represent contracted revenue not yet recognized, including unearned revenue and unbilled amounts to be recognized in future periods. As of September 30, 2026, we allocated $219,764 of transaction price to unsatisfied or partially satisfied performance obligations, of which $62,549 relate to a development contract with an unconsolidated joint venture, a related party. Approximately 57 % is expected to be recognized within the next twelve months , with the remaining amount recognized over the next to three years .
No revenue has been recognized under the development contract with the unconsolidated joint venture during the three and nine months ended September 30, 2026. Any profits generated from transactions with an unconsolidated joint venture will be eliminated to the extent of our ownership interest.
24
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Other Receivables
Other receivables consist primarily of receivables for property and asset management services provided to portfolio owners of single-family homes for lease, including investments in our unconsolidated joint ventures (see Note 5), and other miscellaneous receivables. Our property and asset management services include resident support, maintenance, marketing, and administrative functions. As of September 30, 2026 and 2025, we provided property and asset management services for 22,799 and 24,048 homes, respectively, of which 7,445 and 7,897 homes, respectively, were owned by our unconsolidated joint ventures. For the three months ended September 30, 2026 and 2025, we earned management fees totaling $19,889 and $21,975 , respectively. For the nine months ended September 30, 2026 and 2025, we earned management fees totaling $59,479 and $65,677 , respectively. These revenues are included in management fee revenues on the condensed consolidated statements of operations.
Land and Construction in Progress
We hold investments in land held for potential future construction and have incurred costs for construction in progress for single‑family homes that we intend to own and lease upon completion of development activities or sell to unconsolidated joint ventures. We have entered into a development contract with an unconsolidated joint venture to construct single-family residential homes on land we own and will subsequently sell the land and completed homes to the joint venture.
No revenue has been recognized under the development contract with the unconsolidated joint venture during the three and nine months ended September 30, 2026. Any profits generated from transactions with an unconsolidated joint venture will be eliminated to the extent of our ownership interest.
Investments in Equity and Other Securities
We hold investments in equity and other securities both with and without a readily determinable fair value. Investments with a readily determinable fair value are measured at fair value, and those without a readily determinable fair value are measured at cost, less any impairment, plus or minus changes resulting from observable price changes for identical or similar investments in the same issuer. As of September 30, 2026 and December 31, 2025, the values of our investments in equity and other securities are as follows:
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Investments without a readily determinable fair value | $ | $ | ||||||||||||
| Investments with a readily determinable fair value | ||||||||||||||
| Total | $ | $ | ||||||||||||
The components of gains (losses) on investments in equity and other securities, net for the three and nine months ended September 30, 2026 and 2025 are as follows:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
| Net gains recognized on investments sold during the reporting period | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Net unrealized gains (losses) on investments still held at the reporting date — with a readily determinable fair value | ( | ( | ( | |||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
25
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Right-of-Use (“ROU”) Lease Assets — Operating and Finance, net
The following table presents supplemental information related to leases into which we have entered as a lessee as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Weighted average remaining lease term | ||||||||||||||||||||||||||
| Weighted average discount rate | ||||||||||||||||||||||||||
Investments in Debt Securities, net
In connection with our Secured Debt (as defined in Note 7), we have retained and purchased certificates totaling $55,235 , net of unamortized discounts of $264 as of September 30, 2026. These investments in debt securities are classified as held to maturity investments. As of September 30, 2026, we have not recognized any credit losses with respect to these investments in debt securities, and our retained certificates are scheduled to mature in one year .
Intangible Assets other than Goodwill
The following table presents the gross carrying amount and accumulated amortization, including the recognition of accelerated amortization when appropriate, calculated using the straight‑line method over the estimated useful lives, in total and by major class of intangible assets, as of September 30, 2026 and December 31, 2025:
September 30, 2026 | ||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | Amortization Period | |||||||||||||||||||||||
Customer relationships(1) | $ | $ | ( | $ | ||||||||||||||||||||||
Trade name(1) | ( | |||||||||||||||||||||||||
Property and asset management contracts | ( | |||||||||||||||||||||||||
| Total | $ | $ | ( | $ | ||||||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | Amortization Period | |||||||||||||||||||||||
Property and asset management contracts | $ | $ | ( | $ | ||||||||||||||||||||||
(1)We recorded $40,000 of intangible assets in connection with the acquisition of ResiBuilt (as defined in Note 16) in January 2026.
26
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Amortization expense totaled $4,188 and $669 for the three months ended September 30, 2026 and 2025, respectively, and $9,298 and $2,007 for the nine months ended September 30, 2026 and 2025, respectively. The expected future amortization expense for intangible assets as of September 30, 2026 are as follows:
| Year | Amortization | |||||||
Remainder of 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Total | $ | |||||||
Other
Other is primarily comprised of net deferred financing costs and other deferred costs, including those that will be capitalized as corporate fixed assets upon deployment of internally developed software. In connection with the Revolving Facility (as defined in Note 7), we incurred $25,626 of financing costs, which have been deferred as other assets, net on our condensed consolidated balance sheets. We amortize deferred financing costs as interest expense on a straight-line basis over the term of the Revolving Facility and accelerate amortization if debt is retired before the maturity date, as appropriate. As of September 30, 2026 and December 31, 2025, the unamortized balances of these deferred financing costs are $12,423 and $17,230 , respectively.
Note 7—Debt
Secured Debt
The following table sets forth a summary of our secured debt as of September 30, 2026 and December 31, 2025:
Outstanding Principal Balance(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Origination Date | Maturity Date | Interest Rate | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||
IH 2017-1(2)(3)(4) | April 28, 2017 | June 9, 2027 | $ | $ | ||||||||||||||||||||||||||||||||||||||||
IH 2019-1(5) | June 7, 2019 | June 9, 2031 | ||||||||||||||||||||||||||||||||||||||||||
| Total Secured Debt | ||||||||||||||||||||||||||||||||||||||||||||
| Less: deferred financing costs, net | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(1)Outstanding principal balance is net of discounts and does not include deferred financing costs, net.
(2)IH 2017-1 is comprised of two components, and Component A benefits from the Federal National Mortgage Association’s guaranty of timely payment of principal and interest. IH 2017-1 bears interest at a fixed rate of 4.23 % per annum, equal to the market determined pass-through rate payable on the certificates including applicable servicing fees. Interest payments are made monthly.
(3)Net of unamortized discount of $264 and $527 as of September 30, 2026 and December 31, 2025, respectively.
(4)On July 9, 2026, we used proceeds from the issuance of unsecured notes to make a $488,000 voluntary prepayment on the outstanding principal balance of IH 2017-1 and incurred a prepayment premium of $4,880 .
27
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
(5)IH 2019-1 bears interest at a fixed rate of 3.59 % per annum including applicable servicing fees for the first 11 years and for the twelfth year bears interest at a floating rate based on a spread of 147 bps over a comparable or successor rate to the one month London Interbank Offer Rate as provided for in the loan agreement, including applicable servicing fees, subject to certain adjustments as outlined in the loan agreement. Interest payments are made monthly.
IH 2017-1 and IH 2019-1 (collectively, the “Secured Debt”) are secured by first priority mortgages on the underlying properties as well as first priority pledges of the equity in the assets of the respective Borrower Entities. IH 2017-1 is further secured by a grant of security interests in all the related personal property.
As of September 30, 2026 and December 31, 2025, a total of 8,889 and 8,891 homes, with a gross book value of $1,957,691 and $1,929,649 , respectively, and a net book value of $1,286,798 and $1,311,955 , respectively, are pledged pursuant to the Secured Debt. Each Borrower Entity has the right, subject to certain requirements and limitations outlined in the respective loan agreements, to substitute properties. In addition, four times after the first anniversary of the closing date, the IH 2019-1 Borrower Entity has the right, subject to certain requirements and limitations outlined in the loan agreement, to execute a special release of collateral representing up to 15 % of the then-outstanding principal balance of the loan in order to bring the loan-to-value ratio back in line with the loan’s loan-to-value ratio as of the closing date. Any such special release of collateral would not change the then-outstanding principal balance of the loan, but rather would reduce the number of single-family rental homes included in the collateral pool.
Transaction with Trust
Concurrent with the execution of the IH 2017-1 loan agreement, the respective third-party lender sold the loan it originated to an individual depositor entity, which is a wholly owned subsidiary, who subsequently transferred the loan to a securitization-specific trust entity (the “Trust”). We accounted for the transfer of IH 2017-1 as a sale under ASC 860, Transfers and Servicing, with no resulting gain or loss as the securitization was both originated by the lender and immediately transferred at the same fair market value. This transaction had no effect on our condensed consolidated financial statements other than with respect to certificates issued by the Trust (the “Certificates”) that we retained in connection with securitization or purchased at a later date.
The Trust is structured as a pass-through entity that receives interest payments from the securitization and distributes those payments to the holders of the Certificates. The assets held by the Trust are restricted and can only be used to fulfill the obligations of that entity. The obligations of the Trust do not have any recourse to the general credit of any entities in these condensed consolidated financial statements. We have evaluated our interests in certain certificates of the Trust held by us and determined that they do not create a more than insignificant variable interest in the Trust.
As the Trust made Certificates available for sale to both domestic and foreign investors, sponsors of the IH 2017-1 loan are required to retain a portion of the risk that represents a material net economic interest in the loan pursuant to Regulation RR (the “Risk Retention Rules”) under the Securities Exchange Act of 1934, as amended. As loan sponsors, we are thus required to retain a portion of the credit risk that represents not less than 5 % of the aggregate fair value of the loan as of the closing date. Accordingly, we have retained the restricted Class B Certificates issued by IH 2017-1, which bear a stated annual interest rate of 4.23 % (including applicable servicing fees), that were made available exclusively to INVH LP to comply with the Risk Retention Rules.
The retained certificates, net of discount, total $55,235 and $54,972 as of September 30, 2026 and December 31, 2025, respectively, and are classified as held to maturity investments and recorded in other assets, net on the condensed consolidated balance sheets (see Note 6).
28
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Loan Covenants
The general terms that apply to the Secured Debt loan agreements require each Borrower Entity to maintain compliance with certain affirmative and negative covenants. Affirmative covenants include each Borrower Entity’s, and certain of their respective affiliates’, compliance with (i) licensing, permitting, and legal requirements specified in the Secured Debt loan agreements, (ii) organizational requirements of the jurisdictions in which they are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective Secured Debt loan agreements. Negative covenants include each Borrower Entity’s, and certain of their affiliates’, compliance with limitations surrounding (i) the amount of each Borrower Entity’s indebtedness and the nature of their investments, (ii) the execution of transactions with affiliates, (iii) the Manager, (iv) the nature of each Borrower Entity’s business activities, and (v) the required maintenance of specified cash reserves.
Prepayments
Prepayments of Secured Debt are generally not permitted under the terms of the respective loan agreements unless such prepayments are made pursuant to the voluntary election or mandatory provisions specified in such agreements. The specified mandatory provisions become effective to the extent that a property becomes characterized as a disqualified property, a property is sold, and/or upon the occurrence of a condemnation or casualty event associated with a property. To the extent either a voluntary election is made, or a mandatory prepayment condition exists, in addition to paying all interest and principal, we must also pay certain breakage costs as determined by the loan servicer and a yield maintenance or prepayment premium if prepayment occurs before specified dates. For IH 2017-1 and IH 2019-1, prepayments on or before December 2026 or June 2030, respectively, will require a yield maintenance or prepayment premium. For the nine months ended September 30, 2026 and 2025, we made voluntary and mandatory prepayments totaling $488,232 and $3,799 , respectively, under the terms of the loan agreements. During the nine months ended September 30, 2026, we incurred a $4,880 prepayment penalty related to a $488,000 voluntary prepayment of IH 2017-1.
Unsecured Notes
Our unsecured notes are issued in connection with either an underwritten public offering pursuant to our shelf registration statement or in connection with a private placement transaction with certain institutional investors (collectively, the “Unsecured Notes”). Our current shelf registration statement automatically became effective upon filing with the SEC in June 2024 and expires in June 2027. We utilize proceeds from the Unsecured Notes to fund: (i) repayments of then-outstanding indebtedness; (ii) closing costs in connection with the Unsecured Notes; and (iii) general costs associated with our operations and other corporate purposes, including acquisitions. Interest on the Unsecured Notes is payable semi-annually in arrears.
The following table sets forth a summary of our Unsecured Notes as of September 30, 2026 and December 31, 2025:
Interest Rate(1) | September 30, 2026 | December 31, 2025 | ||||||||||||||||||
Total Unsecured Notes, net(2) | $ | $ | ||||||||||||||||||
Deferred financing costs, net | ( | ( | ||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
(1)Represents the range of contractual rates in place as of September 30, 2026.
(2)Net of unamortized discount of $24,590 and $23,644 as of September 30, 2026 and December 31, 2025, respectively. Maturity dates for the Unsecured Notes range from May 2028 through May 2036 (see “Debt Maturities Schedule” for additional information).
29
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Debt Issuances
The following activity occurred during the nine months ended September 30, 2026 and 2025 with respect to the Unsecured Notes:
•On July 8, 2026, in a public offering under our existing shelf registration statement, we issued $500,000 aggregate principal amount of 4.95 % Senior Notes which mature on February 1, 2032.
•On August 15, 2025, in a public offering under our shelf registration statement, we issued $600,000 aggregate principal amount of 4.95 % Senior Notes which mature on January 15, 2033.
Prepayments
The Unsecured Notes are redeemable in whole at any time or in part from time to time, at our option, at a redemption price equal to (i) 100 % of the principal amount to be redeemed plus accrued and unpaid interest and (ii) a make-whole premium calculated in accordance with the respective loan agreements if the redemption occurs in certain amounts or in certain periods that range from to three months prior to the maturity date. The privately placed Unsecured Notes require any prepayment to be an amount not less than 5 % of the aggregate principal amount then outstanding.
Guarantees
The Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, by INVH and two of its wholly owned subsidiaries, the General Partner, and IH Merger Sub, LLC (“IH Merger Sub”).
Loan Covenants
The Unsecured Notes issued publicly under our registration statement contain customary covenants, including, among others, limitations on the incurrence of debt; and they include the following financial covenants related to the incurrence of debt: (i) an aggregate debt test; (ii) a debt service test; (iii) a maintenance of total unencumbered assets; and (iv) a secured debt test.
The privately placed Unsecured Notes contain customary covenants, including, among others, limitations on distributions, fundamental changes, and transactions with affiliates; and they include the following financial covenants, subject to certain qualifications: (i) a maximum total leverage ratio; (ii) a maximum secured leverage ratio; (iii) a maximum unencumbered leverage ratio; (iv) a minimum fixed charge coverage ratio; and (v) a minimum unsecured interest coverage ratio.
The Unsecured Notes contain customary events of default (subject in certain cases to specified cure periods), the occurrence of which would allow the holders of notes to take various actions, including the acceleration of amounts due under the Unsecured Notes.
Term Loan Facilities and Revolving Facility
On September 9, 2024, we entered into the Second Amended and Restated Revolving Credit and Term Loan Agreement with a syndicate of banks, financial institutions, and institutional lenders for a new credit facility, as amended, (the “Credit Facility”). The Credit Facility provides $3,500,000 of borrowing capacity and consists of a $1,750,000 revolving facility (the “Revolving Facility”) and a $1,750,000 term loan facility (the “2024 Term Loan Facility”), both of which mature on September 9, 2028, with two six month extension options available. The Revolving Facility also includes borrowing capacity for letters of credit. The Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the 2024 Term Loan Facility such that the aggregate amount does not exceed $4,000,000 at any time), subject to certain limitations.
The Credit Facility replaced a credit facility that consisted of a $1,000,000 revolving credit facility (the “2020 Revolving Facility”) and a $2,500,000 term loan facility (the “2020 Term Loan Facility,” and together with the 2020 Revolving Facility, the “2020 Credit Facility”). The terms and conditions of the Credit Facility are consistent with those of the 2020 Credit Facility except as otherwise noted below.
30
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Proceeds from the 2024 Term Loan Facility, a $750,000 borrowing on the Revolving Facility on the date of effectiveness of the Credit Facility, and excess cash on hand were used to fully repay the 2020 Term Loan Facility and to pay costs associated with the transaction. Future proceeds from the Revolving Facility are expected to be used for general corporate purposes.
On June 22, 2022, we entered into a Term Loan Agreement with a syndicate of banks for new senior unsecured term loans, as amended, (the “2022 Term Loan Facility” and together with the 2024 Term Loan Facility and the 2020 Term Loan Facility, the “Term Loan Facilities”). The 2022 Term Loan Facility provided $725,000 of borrowing capacity, consisting of a $150,000 initial term loan (the “Initial Term Loan”) and delayed draw term loans totaling $575,000 (the “Delayed Draw Term Loans”) which were fully drawn on December 8, 2022. The Initial Term Loan and the Delayed Draw Term Loans (together, the “2022 Term Loans”) originally matured on June 22, 2029. The 2022 Term Loan Facility also includes an accordion feature providing the option to increase the size of the 2022 Term Loans or enter into additional incremental 2022 Term Loans, such that the aggregate amount of all 2022 Term Loans does not exceed $950,000 at any time, subject to certain limitations. On April 28, 2025, we entered into an amendment to the 2022 Term Loan Facility that (1) amends the initial maturity date from June 22, 2029 to April 28, 2028, with two one year extension options at our election, provided we are in compliance with the loan agreement and pay a 12.5 bps extension fee and (2) adjusts the margin applicable to borrowings as more fully described below.
The following table sets forth a summary of the outstanding principal amounts under the Term Loan Facilities and the Revolving Facility, as of September 30, 2026 and December 31, 2025:
| Maturity Date | Interest Rate | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||
2024 Term Loan Facility(1)(2) | September 9, 2028 | $ | $ | |||||||||||||||||||||||
2022 Term Loan Facility(3)(4) | April 28, 2028 | |||||||||||||||||||||||||
| Total Term Loan Facilities | ||||||||||||||||||||||||||
| Less: deferred financing costs, net | ( | ( | ||||||||||||||||||||||||
| Term Loan Facilities, net | $ | $ | ||||||||||||||||||||||||
Revolving Facility(1)(2)(5) | September 9, 2028 | $ | $ | |||||||||||||||||||||||
(1)Interest rates for the 2024 Term Loan Facility and the Revolving Facility are based on the weighted average spread over a published forward-looking SOFR for the interest period relevant to such borrower (“Term SOFR”), plus an applicable margin. As of September 30, 2026, the applicable margins were 0.85 % and 0.78 % for the 2024 Term Loan Facility and the Revolving Facility, respectively, and Term SOFR was 3.91 %. On February 4, 2026, we entered into an amendment to the Credit Facility whereby Term SOFR is no longer subject to a 0.10 % credit spread adjustment.
(2)If we exercise the two six month extension options, the maturity date will be September 9, 2029.
(3)Interest rate for the 2022 Term Loan Facility is based on Term SOFR plus the applicable margin. As of September 30, 2026, the applicable margin was 0.85 % and Term SOFR was 3.91 %.
(4)If we exercise the two one year extension options, the maturity date will be April 28, 2030.
(5)As of September 30, 2026, $1,265,000 of our Revolving Facility is undrawn, and there are no restrictions on our ability to draw funds thereunder provided we remain in compliance with all covenants.
Interest Rate and Fees
Borrowings under the Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) Term SOFR for the interest period relevant to such borrowing, (b) a daily SOFR rate calculated without considering accrued interest, or (c) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 0.50 %, (3) the Term SOFR rate that would be payable on such day for a Term SOFR loan with a one-month interest period plus 1.00 %, and (4) 1.00 %.
31
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Borrowings under the 2022 Term Loan Facility bear interest, at our option, at a rate equal to a margin over either (a) Term SOFR for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 0.50 %, and (3) SOFR for a one month interest period plus 1.00 %.
The margins for the Term Loan Facilities and the Revolving Facility are as follows:
| Base Rate Loans | SOFR Rate Loans | |||||||||||||||||||||||||||||||||||||
| 2024 Term Loan Facility | — | — | ||||||||||||||||||||||||||||||||||||
| 2022 Term Loan Facility, prior to amendment | — | — | ||||||||||||||||||||||||||||||||||||
| 2022 Term Loan Facility, as amended | — | — | ||||||||||||||||||||||||||||||||||||
| Revolving Facility | — | — | ||||||||||||||||||||||||||||||||||||
In addition to paying interest on outstanding principal, we are required to pay certain facility and unused commitment fees. Under the Credit Facility, we are required to pay a facility fee ranging from 0.10 % to 0.30 %. We are also required to pay customary letter of credit fees.
Prepayments and Amortization
No principal reductions are required under the Credit Facility or the 2022 Term Loan Facility. We are permitted to voluntarily repay amounts outstanding under the 2024 Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and the payment of customary “breakage” costs with respect to Term SOFR loans. After June 22, 2024, we are also permitted to voluntarily repay amounts outstanding under the 2022 Term Loan Facility without premium or penalty. Once repaid, no further borrowings will be permitted under the Term Loan Facilities.
Loan Covenants
The Credit Facility and the 2022 Term Loan Facility contain certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of our subsidiaries to (i) engage in certain mergers, consolidations, or liquidations, (ii) sell, lease, or transfer all or substantially all of our respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to our fiscal year, (v) make changes in the nature of our business and our subsidiaries, and (vi) enter into certain burdensome agreements.
The Credit Facility and the 2022 Term Loan Facility also require us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, and (v) minimum unsecured interest coverage ratio. If an event of default occurs, the lenders under the Credit Facility and the 2022 Term Loan Facility are entitled to take various actions, including the acceleration of amounts due thereunder.
Guarantees
The obligations under the Credit Facility and the 2022 Term Loan Facility are guaranteed on a joint and several basis by INVH and two of its wholly owned subsidiaries, the General Partner and IH Merger Sub.
32
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Debt Maturities Schedule
The following table summarizes the contractual maturities of our debt as of September 30, 2026:
| Year | Secured Debt | Unsecured Notes | Term Loan Facilities(1)(2) | Revolving Facility(1)(3) | Total | |||||||||||||||||||||||||||||||||||||||
| 2026 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| 2027 | ||||||||||||||||||||||||||||||||||||||||||||
| 2028 | ||||||||||||||||||||||||||||||||||||||||||||
2029 | ||||||||||||||||||||||||||||||||||||||||||||
2030 | ||||||||||||||||||||||||||||||||||||||||||||
| Thereafter | ||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Less: deferred financing costs, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Less: unamortized debt discount | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(1)If we exercise the two six month extension options, the maturity date for the 2024 Term Loan Facility and the Revolving Facility will be September 9, 2029.
(2)If we exercise the two one year extension options, the maturity date for the 2022 Term Loan Facility will be April 28, 2030.
(3)Deferred financing costs related to the Revolving Facility are classified in other assets, net (see Note 6).
Note 8—Derivative Instruments
We have entered into various interest rate swap agreements, which are used to hedge the variable cash flows associated with variable-rate interest payments. We do not enter into derivative transactions for speculative or trading purposes. Each of our swap agreements meets the criteria for hedge accounting and has been designated for hedge accounting purposes. Changes in the fair value of these swaps are recorded in other comprehensive income and are subsequently reclassified into earnings in the period in which the hedged forecasted transactions affect earnings.
The table below summarizes our interest rate swap instruments as of September 30, 2026:
| Agreement Date | Forward Effective Date | Maturity Date | Strike Rate | Index | Notional Amount | |||||||||||||||||||||||||||
| September 20, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | $ | ||||||||||||||||||||||||||||
| September 20, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| September 23, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| September 24, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| September 24, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| September 25, 2024 | December 31, 2024 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| September 25, 2024 | December 31, 2024 | May 31, 2029 | One month Term SOFR | |||||||||||||||||||||||||||||
| May 8, 2025 | May 8, 2025 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| June 20, 2025 | June 20, 2025 | May 31, 2028 | One month Term SOFR | |||||||||||||||||||||||||||||
| March 22, 2023 | July 9, 2025 | May 31, 2029 | One month Term SOFR | |||||||||||||||||||||||||||||
33
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
During the nine months ended September 30, 2026 and 2025, interest rate swap instruments were used to hedge the variable cash flows associated with existing variable-rate interest payments. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next 12 months, we estimate that $26,096
Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets
The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025:
| Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
| Fair Value as of | Fair Value as of | |||||||||||||||||||||||||||||||||||||
| Balance Sheet Location | September 30, 2026 | December 31, 2025 | Balance Sheet Location | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
| Interest rate caps | Other assets | Other liabilities | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Offsetting Derivatives
We enter into master netting arrangements, which reduce risk by permitting net settlement of transactions with the same counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||||||||||||||||
| Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||||||||||||||
| Offsetting assets: | ||||||||||||||||||||||||||||||||||||||
| Derivatives | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Offsetting liabilities: | ||||||||||||||||||||||||||||||||||||||
| Derivatives | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
34
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||||||||||||||||||
| Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||||||||||||||
| Offsetting assets: | ||||||||||||||||||||||||||||||||||||||
| Derivatives | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
| Offsetting liabilities: | ||||||||||||||||||||||||||||||||||||||
| Derivatives | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Income (Loss) and the Condensed Consolidated Statements of Operations
The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the three months ended September 30, 2026 and 2025:
| Amount of Gain Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income | Amount of Gain Reclassified from Accumulated OCI into Net Income | Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | $ | $ | Interest expense | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the three months ended September 30, 2026 and 2025, we did not recognize any gains or losses related to derivative instruments, as there were no undesignated instruments outstanding during those periods.
The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the nine months ended September 30, 2026 and 2025:
| Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income | Amount of Gain Reclassified from Accumulated OCI into Net Income | Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps | $ | $ | ( | Interest expense | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2026 and 2025, we did not recognize any gains or losses related to derivative instruments, as there were no undesignated instruments outstanding during those periods.
35
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Credit-Risk-Related Contingent Features
The agreements with our derivative counterparties which govern our interest rate swap agreements contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.
As of September 30, 2026, we were not in a net liability position with any of our derivative counterparties.
Note 9—Stockholders’ Equity
As of September 30, 2026, we have 581,764,220 shares of common stock issued and outstanding. In addition, we issue OP Units from time to time which, upon vesting, are redeemable for shares of our common stock on a one -for-one basis or, in our sole discretion, cash and are reflected as non-controlling interests on our condensed consolidated balance sheets and statements of equity. As of September 30, 2026, 2,196,519 OP Units are outstanding, of which 225,010 are not currently redeemable.
During the three and nine months ended September 30, 2026, we issued 25,601 and 430,127 , shares of common stock, respectively. During the three and nine months ended September 30, 2025, we issued 12,369 and 415,111 , shares of common stock, respectively. During the three and nine months ended September 30, 2026, we repurchased 8,874,903 and 29,454,639 shares of common stock, respectively. No
Share Repurchase Programs
From time to time, our board of directors may authorize share repurchase programs through open market purchases or negotiated transactions, including through Rule 10b5-1 plans. Repurchases under share repurchase programs are made at our discretion and are not required or guaranteed. The timing and actual number of shares repurchased depends on a variety of factors, including price, corporate and regulatory requirements, market conditions, and other liquidity needs and priorities. Unless otherwise specified, share repurchase programs do not have an expiration date. Under Maryland law, our state of incorporation, there is no concept of treasury shares. Therefore, any shares we repurchase are immediately retired and revert to authorized but unissued status upon settlement.
On October 28, 2025 and April 27, 2026, our board of directors authorized share repurchase programs, under which we may acquire shares of our common stock through the open market or negotiated transactions up to an aggregate purchase price of $500,000 8,874,903 and 29,454,639 shares of our common stock for a total cost of $250,351 and $789,539 , respectively, inclusive of legal fees and commissions. As of September 30, 2026, $150,000 remained available for future repurchases under the April 27, 2026 share repurchase program. Through October 28, 2026, we repurchased an additional 5,609,664 shares of our common stock for a total cost of $149,049 , inclusive of legal fees and commissions, leaving $1,063 available for repurchase under the April 27, 2026 share repurchase program (see Note 17).
On October 26, 2026, our board of directors authorized a share repurchase program under which we may acquire shares of our common stock in the open market or negotiated transactions up to an aggregate purchase price of $500,000 (see Note 17).
At the Market Equity Program
On December 20, 2021, we entered into distribution agreements with a syndicate of banks (the “Agents” and the “Forward Sellers”), and on June 14, 2024, we entered into distribution agreements with additional Agents and Forward Sellers. Pursuant to these agreements, we may sell, from time to time, up to an aggregate sales price of $1,250,000 of our common stock through the Agents and the Forward Sellers (the “ATM Equity Program”). In addition to the issuance of shares of our common stock, the distribution agreements permit us to enter into separate forward sale transactions with certain forward purchasers who may borrow shares from third parties and, through affiliated Forward Sellers, offer a number of shares of our common stock equal to the number of shares of our common stock underlying the particular forward transaction. During the three and nine months ended September 30, 2026 and 2025, we did not 1,150,000 remains available for future offerings under the ATM Equity Program.
36
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Dividends
To qualify as a REIT, we are required to distribute annually to our stockholders at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. We intend to pay quarterly dividends to our stockholders that in the aggregate are approximately equal to or exceed our net taxable income in the relevant year. The timing, form, and amount of distributions, if any, to our stockholders, will be at the sole discretion of our board of directors.
The following table summarizes our dividends paid from January 1, 2025 through September 30, 2026:
| Record Date | Amount per Share | Pay Date | Total Amount Paid | |||||||||||||||||||||||
| Q3-2026 | June 25, 2026 | $ | July 17, 2026 | $ | ||||||||||||||||||||||
| Q2-2026 | March 26, 2026 | April 17, 2026 | ||||||||||||||||||||||||
| Q1-2026 | December 23, 2025 | January 16, 2026 | ||||||||||||||||||||||||
| Q4-2025 | September 25, 2025 | October 17, 2025 | ||||||||||||||||||||||||
| Q3-2025 | June 26, 2025 | July 18, 2025 | ||||||||||||||||||||||||
| Q2-2025 | March 27, 2025 | April 17, 2025 | ||||||||||||||||||||||||
| Q1-2025 | December 26, 2024 | January 17, 2025 | ||||||||||||||||||||||||
On September 10, 2026, our board of directors declared a dividend of $0.30 (actual $) per share to stockholders of record on September 24, 2026, resulting in a $175,546 dividend payment on October 16, 2026 (see Note 17). This dividend payment is accrued in other liabilities on our September 30, 2026 condensed consolidated balance sheet.
Note 10—Share-Based Compensation
Our board of directors adopted, and our stockholders approved, the Invitation Homes Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”) to provide a means through which to attract and retain key associates and to provide a means whereby our directors, officers, associates, consultants, and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, and to align their interests with those of our stockholders. Under the 2017 Omnibus Incentive Plan, we could issue up to 16,000,000 shares of common stock.
On May 7, 2026, the Invitation Homes Inc. 2026 Incentive Omnibus Plan (the “2026 Omnibus Incentive Plan”) became effective upon approval of our stockholders, subsequent to adoption by our board of directors. The 2026 Omnibus Incentive Plan replaces the 2017 Omnibus Incentive Plan with respect to new grants. Employees of INVH and its subsidiaries, non-employee directors, and certain consultants and advisors are eligible to receive grants under the 2026 Omnibus Incentive Plan. The 2026 Omnibus Incentive Plan provides for the issuance of 18,793,516 shares of common stock, consisting of (i) 17,500,000 newly authorized shares plus (ii) 1,293,516 shares that were available for issuance under the 2017 Omnibus Incentive Plan and became available for issuance under the 2026 Omnibus Incentive Plan. As of the effective date, shares which were subject to awards outstanding under the 2017 Omnibus Incentive Plan also become available for issuance under the 2026 Omnibus Incentive Plan pursuant to the terms and conditions thereof.
Share-based awards in connection with our annual long term incentive plan (“LTIP”) may be issued in the form of time vesting, performance based vesting, and/or market based vesting restricted stock units (“RSUs”) or, in certain cases, partnership ownership units (“LTIP OP Units”). Historically, we also issued Outperformance Awards (defined below). Time-vesting RSUs are participating securities for earnings (loss) per share (“EPS”) purposes, and performance and/or market based RSUs and LTIP OP Units (“PRSUs”) and Outperformance Awards are not. For a detailed discussion of share-based awards issued prior to January 1, 2026, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
37
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Share-Based Awards
The following summarizes our share-based award activity during the nine months ended September 30, 2026.
Annual LTIP Awards:
•Annual LTIP Awards Granted: During the nine months ended September 30, 2026, we granted 1,609,727 RSUs pursuant to LTIP awards. Each award includes components which vest based on time-vesting conditions, market-based vesting conditions, and/or performance-based vesting conditions, each of which is subject to continued employment through the applicable vesting date.
Time-vesting RSUs vest in three equal annual installments based on an anniversary date of March 1st. LTIP PRSUs may be earned based on the achievement of certain measures over a three year performance period. The number of PRSUs earned will be determined based on performance achieved during the performance period for each measure at certain threshold, target, or maximum levels and corresponding payout ranges. In general, the LTIP PRSUs are earned after the end of the performance period on the date on which the performance results are certified by our compensation and management development committee (the “Compensation Committee”).
All of the LTIP awards are subject to certain change in control and retirement eligibility provisions that may impact these vesting schedules.
•PRSU Results: During the nine months ended September 30, 2026, certain PRSUs did not achieve performance criteria, resulting in the cancellation of 213,382 awards. Such awards are reflected as an increase in the number of awards forfeited/canceled in the table below.
Other Award Activity:
•Retention Awards: During the nine months ended September 30, 2026, we granted 968,111 employment awards in the form of time-vesting RSUs that vest in installments, with 65 % vesting on the third and 35 % vesting on the fourth anniversary of March 1, 2026, and we granted 334,033 time-vesting RSU employment awards that vest on March 1, 2029.
•Director Awards: During the nine months ended September 30, 2026, we granted 52,472 time-vesting RSUs to members of our board of directors, which will fully vest on the date of INVH’s 2027 annual stockholders meeting, subject to continued service on the board of directors through that date.
Outperformance Awards
On April 1, 2022, the Compensation Committee granted equity based awards with market based vesting conditions in the form of PRSUs (the “2022 Outperformance Awards”). The 2022 Outperformance Awards included market based vesting conditions related to rigorous absolute and relative total shareholder returns (“TSRs”) over a three year performance period that ended on March 31, 2025.
In April 2025, upon completion of the performance period, the absolute and relative TSR components were separately calculated, and the Compensation Committee certified achievement of the absolute TSR at 0 % and the relative TSR at 50 %. The number of earned 2022 Outperformance Awards was then determined based on the earned dollar value of the awards (overall 25 % achievement) and the closing stock price on the performance certification date, resulting in 177,336 earned RSUs and 256,858 earned LTIP OP Units. Earned awards vested 50 % on the certification date in April 2025, and the remaining 50 % vested on March 31, 2026, subject to continued employment. During the nine months ended September 30, 2026, 6,402 earned LTIP OP Units were forfeited.
The aggregate $17,100 grant-date fair value of the 2022 Outperformance Awards that were earned was determined based on a Monte-Carlo option pricing model which estimated the probability of achievement of the TSR thresholds, and it is amortized ratably over each vesting period. During the nine months ended September 30, 2026, 2022 Outperformance Awards with an estimated fair value of $8,100 vested.
38
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Summary of Total Share-Based Awards
The following table summarizes activity related to share-based awards, other than Outperformance Awards, during the nine months ended September 30, 2026:
| Time-Vesting Awards | Performance and/or Market Vesting Awards | Total Share-Based Awards(1) | ||||||||||||||||||||||||||||||||||||
| Number | Weighted Average Grant Date Fair Value (Actual $) | Number | Weighted Average Grant Date Fair Value (Actual $) | Number | Weighted Average Grant Date Fair Value (Actual $) | |||||||||||||||||||||||||||||||||
Balance, December 31, 2025 | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Granted | ||||||||||||||||||||||||||||||||||||||
Vested(2) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Forfeited / canceled | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Balance, September 30, 2026 | $ | $ | $ | |||||||||||||||||||||||||||||||||||
(1)Total share-based awards excludes Outperformance Awards.
(2)Vested share-based awards issued in shares of common stock are included in basic EPS for the periods after each award’s vesting date, and vested share-based awards issued in the form LTIP OP Units are included as a component of non-controlling interest for the periods after each award’s vesting date. The estimated aggregate fair value of share-based awards that fully vested during the nine months ended September 30, 2026 was $24,546 . During the nine months ended September 30, 2026, 26,597 RSUs, respectively, were accelerated pursuant to the terms and conditions of the 2017 Omnibus Incentive Plan and related award agreements.
Grant-Date Fair Values
The grant-date fair values of the time-vesting RSUs and PRSUs with performance condition vesting criteria are generally based on the closing price of our common stock on the grant date. However, the grant-date fair values for share-based awards with market condition vesting criteria are based on Monte-Carlo option pricing models. The following table summarizes the significant inputs utilized in these models for such awards granted or modified during the nine months ended September 30, 2026:
| For the Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||
Expected volatility(1) | ||||||||||||||||||||||||||||||||
| Risk-free rate | ||||||||||||||||||||||||||||||||
| Expected holding period (years) | ||||||||||||||||||||||||||||||||
(1)Expected volatility was estimated based on the historical volatility of INVH’s realized returns and of the applicable index.
39
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Summary of Total Share-Based Compensation Expense
During the three and nine months ended September 30, 2026 and 2025, we recognized share-based compensation expense as follows:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| General and administrative | $ | $ | $ | $ | ||||||||||||||||||||||
| Property management expense | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
As of September 30, 2026, there is $74,011 of unrecognized share-based compensation expense related to non-vested share-based awards which is expected to be recognized over a weighted average period of 2.13 years.
Note 11—Fair Value Measurements
The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and certain components of other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements, interest rate cap agreements, if any, and investments in equity securities with a readily determinable fair value are recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of interest rate swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 8 for the details of the condensed consolidated balance sheet classification and the fair values for the interest rate swaps. The fair values of our investments in equity securities with a readily determinable fair value are classified as Level 1 in the fair value hierarchy. For additional information related to our investments in equity and other securities as of September 30, 2026 and December 31, 2025, refer to Note 6.
Financial Instrument Fair Value Disclosures
The following table displays the carrying values and fair values of financial instruments as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
Assets carried at historical cost on the condensed consolidated balance sheets: | ||||||||||||||||||||||||||||||||
Investments in debt securities(1) | Level 2 | $ | $ | $ | $ | |||||||||||||||||||||||||||
Construction and development loan receivables(2) | Level 3 | N/A | ||||||||||||||||||||||||||||||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||||||||||||||||||||||||||||||||
Unsecured Notes — public offering(3) | Level 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||
IH 2017-1(4) | Level 2 | |||||||||||||||||||||||||||||||
Unsecured Notes — private placement(5) | Level 2 | |||||||||||||||||||||||||||||||
IH 2019-1(6) | Level 3 | |||||||||||||||||||||||||||||||
Term Loan Facilities(7) | Level 3 | |||||||||||||||||||||||||||||||
Revolving Facility(8) | Level 3 | |||||||||||||||||||||||||||||||
(1)The carrying values of investments in debt securities are shown net of discount.
40
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
(2)The carrying value represents the amortized cost of the construction and development loan receivables net of the allowance for credit losses. As of December 31, 2025, we did not estimate the fair value of the loan receivables as these loans were newly originated during the period.
(3)The carrying value of the Unsecured Notes — public offering includes $24,590 and $23,644 of unamortized discount and excludes $28,503 and $26,595 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively.
(4)The carrying values of IH 2017-1 includes $264 and $527 of unamortized discount and excludes $579 and $2,579 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively.
(5)The carrying value of the Unsecured Notes — private placement excludes $713 and $840 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively.
(6)The carrying value of the IH 2019-1 excludes $1,016 and $1,179 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively.
(7)The carrying values of the Term Loan Facilities exclude $14,299 and $23,015 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively.
(8)The carrying value of the Revolving Facility excludes $12,423 and $17,230 of deferred financing costs as of September 30, 2026 and December 31, 2025, respectively, which are classified in other assets, net (see Note 6).
We value our Unsecured Notes — public offering using quoted market prices for each underlying issuance, a Level 1 price within the fair value hierarchy. The fair values of our investments in debt securities, Unsecured Notes — private placement, and the IH 2017-1 secured loan, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at period end.
We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. Availability of secondary market activity and consistency of pricing from third-party sources impacts our ability to classify securities as Level 2 or Level 3.
The following table displays the significant unobservable inputs used to develop our Level 3 fair value measurements as of September 30, 2026:
Quantitative Information about Level 3 Fair Value Measurement(1) | ||||||||||||||||||||||||||||||||
| Fair Value | Valuation Technique | Unobservable Input | Rate | |||||||||||||||||||||||||||||
| Construction and development loan receivables, net | $ | Discounted Cash Flow | Effective Rate | — | ||||||||||||||||||||||||||||
Secured Debt — IH 2019-1 | Discounted Cash Flow | Effective Rate | ||||||||||||||||||||||||||||||
| Term Loan Facilities | Discounted Cash Flow | Effective Rate | — | |||||||||||||||||||||||||||||
| Revolving Facility | Discounted Cash Flow | Effective Rate | — | |||||||||||||||||||||||||||||
(1)Our Level 3 fair value instruments require interest only payments.
41
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Nonrecurring Fair Value Measurements
Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments.
Single-Family Residential Properties
The single-family residential properties for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments in single-family residential properties, net held for sale (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-impairment amount | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Total impairments | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Fair value | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
We did not record any impairments for our investments in single-family residential properties, net held for use during the three and nine months ended September 30, 2026 and 2025. For additional information related to our single-family residential properties as of September 30, 2026 and December 31, 2025, refer to Note 3.
Note 12—Earnings per Share
Basic and diluted EPS are calculated as follows:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders — basic and diluted | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding — basic | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Incremental shares attributed to non-vested share-based awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding — diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per common share — basic | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per common share — diluted | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Incremental shares attributed to non-vested share-based awards are excluded from the computation of diluted EPS when they are anti-dilutive. For the three months ended September 30, 2026 and 2025, 8,430 and 294,161 incremental shares attributed to non-vested share-based awards, respectively, are excluded from the denominator because they are anti-dilutive. For the nine months ended September 30, 2026 and 2025, 46,057 and 380,703 incremental shares attributed to non-vested share-based awards, respectively, are excluded from the denominator because they are anti-dilutive.
For the three and nine months ended September 30, 2026 and 2025, vested OP Units have been excluded from the computation of EPS because all income attributable to such vested OP Units has been recorded as non-controlling interest and thus excluded from net income available to common stockholders.
42
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 13—Income Tax
We account for income taxes under the asset and liability method. For our taxable REIT subsidiaries, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We provide a valuation allowance, from time to time, for deferred tax assets for which we do not consider realization of such assets to be more likely than not. As of September 30, 2026 and December 31, 2025, our deferred tax assets and liabilities, and any unrecognized tax benefits, were immaterial. We do not anticipate a significant change in unrecognized tax benefits within the next 12 months.
Note 14—Commitments and Contingencies
Lease Commitments
The following table sets forth our fixed lease payment commitments as a lessee, which are included in other liabilities on the condensed consolidated balance sheet, as of September 30, 2026, for the periods below:
| Year | Operating Leases | Finance Leases | ||||||||||||
Remainder of 2026 | $ | $ | ||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
2029 | ||||||||||||||
| 2030 | ||||||||||||||
| Thereafter | ||||||||||||||
| Total lease payments | ||||||||||||||
| Less: imputed interest | ( | ( | ||||||||||||
| Total lease liability | $ | $ | ||||||||||||
The components of lease expense for the three and nine months ended September 30, 2026 and 2025 are as follows:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed lease cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Variable lease cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finance lease cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of ROU assets | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on lease liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total finance lease cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New-Build Commitments
As of September 30, 2026, we have entered into binding development and purchase agreements with third parties for the acquisition of 183 homes over the next two years . Remaining commitments under these agreements total approximately $60,000 as of September 30, 2026.
43
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Insurance Policies
Pursuant to the terms of certain of our loan agreements (see Note 7), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. As of September 30, 2026, there are no material contingent liabilities related to uninsured losses with respect to our properties.
Legal and Other Matters
We are subject to various legal proceedings and claims that arise in the ordinary course of our business as well as governmental and regulatory inquiries and engagements. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our condensed consolidated financial statements.
Note 15—Segment Reporting
Our principal business is investment in, development of, and management of single-family residential properties for lease. As of September 30, 2026, we wholly own 85,961 homes for lease, jointly own 7,445 homes for lease, and provide professional third-party property and asset management services for an additional 15,354 homes, all of which are primarily located in 16 core markets across the country. We have determined that these properties are managed on a consolidated basis and represent one reportable segment.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). We concluded that we have one reportable segment based on the way our CODM regularly reviews internally reported financial information to evaluate performance, make operating decisions, and allocate resources at a consolidated level. Net income as reported on our condensed consolidated statements of operations is a primary metric utilized by the CODM to analyze the performance of the segment, including budget versus actual performance, and to allocate resources. The assets of our single reportable segment are reported as total assets on our condensed consolidated balance sheets as our CODM does not use this measure to assess segment performance or to make resource allocation decisions. The accounting policies for the reportable segment are the same as those described in our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Significant Segment Expenses
Our operating expenses are regularly reviewed by our CODM. All expenses are reviewed, but our CODM is regularly provided additional detail regarding the direct costs of operating our properties included in property operating and maintenance expense on our condensed consolidated statements of operations. Other expense categories such as property management expense, homebuilding cost of sales, general and administrative, depreciation and amortization, and interest expense are included on our condensed consolidated statements of operations. The following table sets forth the significant expenses that comprise property operating and maintenance expense on our condensed consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||
Fixed expenses(1) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Controllable expenses(2) | ||||||||||||||||||||||||||||||||||||||
| Total property operating and maintenance | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(1)Fixed expenses include the following: property taxes; insurance expense; and HOA expenses.
(2)Controllable expenses include the following: repairs and maintenance; personnel, leasing, and marketing; turnover; and utilities and property administrative.
44
INVITATION HOMES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 16—Business Combination
On January 14, 2026, we acquired ResiBuilt Homes, LLC (“ResiBuilt”), a leading fee homebuilder specializing in single-family rental communities with expertise in land development and construction general contracting across high-growth Southeast markets. The acquisition was a natural extension of our business and supports our growth strategy by adding homebuilding capabilities to our platform.
The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations, and INVH was designated as the accounting acquirer. The assets acquired, intangible assets identified, and liabilities assumed were recorded at their respective fair values as of January 14, 2026 (the “Acquisition Date”). For the assets acquired and liabilities assumed that comprise net working capital, the carrying amounts approximate fair value due to their short‑term maturities. The estimated fair value of the all cash consideration totaled $99,576 , inclusive of up to $7,500 in potential incentive-based earn-out payments tied to third-party fee-build performance. Subsequent to the Acquisition Date, our condensed consolidated financial statements reflect these fair value adjustments and include the combined results of operations. Because INVH was designated as the accounting acquirer, our historical financial statements for periods prior to the Acquisition Date represent only the historical financial information of INVH and its consolidated subsidiaries. As we have determined that the acquisition did not have a significant impact to our condensed consolidated financial statements, no pro forma disclosures are required.
The allocation of the total purchase price was as follows:
Consideration transferred(1) | $ | |||||||
| Assets acquired: | ||||||||
Other assets(2)(3) | ||||||||
| Liabilities assumed: | ||||||||
Accounts payable and accrued expenses(4) | ( | |||||||
Other liabilities(5) | ( | |||||||
| Net assets acquired | ||||||||
| Goodwill | $ | |||||||
(1)Inclusive of up to $7,500 in potential incentive-based earn-out payments tied to third-party fee-build performance. The contingent consideration was recognized at fair value as of the Acquisition Date, classified as a liability, and designated as Level 3 in the fair value hierarchy based on our estimates of future performance, probabilities of achievement, and expected timing of payment. No payments have been made as of September 30, 2026.
(2)Inclusive of $32,000 in customer relationships and $8,000 in trade name recognized at fair value as of the Acquisition Date. Both intangible assets were classified as Level 3 in the fair value hierarchy based on our assumptions related to projected cash flows, customer attrition, royalty rates, and discount rates (see Note 6).
(3)Inclusive of $23,271 in homebuilding receivables, contract assets, and construction in progress (see Note 6).
(4)Represents liabilities assumed in connection with the ongoing operations of the homebuilding platform.
(5)Inclusive of $9,754 in general contract deposits, representing customer payments received prior to the delivery of completed construction projects. These amounts were recorded as liabilities as they relate to performance obligations that have not yet been satisfied.
These allocations represent management’s estimates of fair value, which are preliminary as of September 30, 2026 and are subject to change. The goodwill recorded is primarily attributable to the proprietary business processes and assembled workforce. Goodwill, all of which is assigned to our one reportable segment, totaled $314,154 and $258,207 as of September 30, 2026 and December 31, 2025, respectively, and consists of existing goodwill and goodwill recognized in connection with the acquisition of ResiBuilt. The tax basis of goodwill is equal to its carrying amount.
Homebuilding revenues totaling $35,849 for the three months ended September 30, 2026 and $129,054 for the period from the Acquisition Date to September 30, 2026 were included in the condensed consolidated statement of operations.
45
We incurred $34 in acquisition-related expenses for the three months ended September 30, 2026 and $340 for the period from the Acquisition Date to September 30, 2026, which were included in general and administrative on the condensed consolidated statement of operations. Acquisition-related expenses are expensed as incurred and are comprised primarily of transaction fees and direct acquisition costs, including legal, finance, consulting, professional fees, and other third-party costs.
Note 17—Subsequent Events
In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after September 30, 2026, for potential recognition or disclosure.
Share Repurchase Program
Through October 28, 2026, we repurchased an additional 5,609,664 shares of our common stock for a total cost of $149,049 , inclusive of legal fees and commissions (see Note 9).
On October 26, 2026, our board of directors authorized a share repurchase program under which we may acquire shares of our common stock in the open market or negotiated transactions up to an aggregate purchase price of $500,000 (see Note 9).
Dividend Payment
On September 10, 2026, our board of directors declared a dividend of $0.30 (actual $) per share to stockholders of record on September 24, 2026, resulting in a $175,546 dividend payment on October 16, 2026 (see Note 9).
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements based upon our current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K.
Capitalized terms used without definition have the meaning provided elsewhere in this Quarterly Report on Form 10-Q.
Overview
Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in sought-after neighborhoods across the United States. As of September 30, 2026, we wholly own 85,961 homes for lease, jointly own 7,445 homes for lease, and provide professional third-party property and asset management services for an additional 15,354 homes, all of which are primarily located in 16 core markets across the country. These homes help meet the needs of a growing share of Americans who count on the ease, flexibility, and savings of leasing. We provide our residents access to updated homes with features they value, as well as close proximity to jobs and good schools. The continued demand for our homes proves that the choice and flexibility we offer are attractive to many people.
We operate in markets with strong demand drivers, high barriers to entry, and high rent growth potential, primarily in the Western United States, Florida, and the Southeast United States. Through disciplined market and asset selection, as well as through strategic mergers and acquisitions, we designed our wholly and jointly owned portfolios to capture the operating benefits of local density as well as economies of scale that we believe cannot be readily replicated. Since our founding in 2012, we have built a proven, vertically integrated operating platform that enables us to effectively and efficiently acquire, renovate, lease, maintain, and manage both the homes we own and those we manage on behalf of others.
The portfolio of homes we own average approximately 1,880 square feet with three to four bedrooms and two bathrooms, appealing to a resident base that we believe is less transitory than a typical multifamily resident. We invest in the upfront renovation of homes in our portfolio in order to address capital needs, reduce ongoing maintenance costs, and drive resident demand.
We are committed to increasing the supply of quality housing in the markets where we operate. We believe that the United States faces a meaningful shortage of housing, and we are taking steps to address this challenge through multiple channels, including acquiring newly built homes from homebuilders, developing homes through our in-house development arm, and extending financing to experienced developers through our construction lending channel.
On January 14, 2026, we acquired ResiBuilt Homes, LLC (“ResiBuilt”), a leading fee homebuilder specializing in single-family rental communities with expertise in land development and construction general contracting across high-growth Southeast markets. The acquisition was a natural extension of our business and supports our growth strategy by adding homebuilding capabilities to our platform. By bringing land development and construction expertise in-house, we gain greater operational control over the development process, enhance cost efficiency, and strengthen our ability to execute on growth opportunities in strategically important markets. We believe this internal development capacity will support our long-term growth strategy by providing a reliable pipeline of purpose-built rental homes tailored to our operational and quality standards.
In May 2025, we launched a developer lending program to selectively provide financing to experienced, successful, and relationship-driven homebuilders for the development of new single-family home communities that may serve as future acquisition opportunities. This initiative is intended to support the creation of new housing supply in markets with strong demand and to complement our traditional property acquisition strategy. Together, these initiatives reflect our broader commitment to expanding housing supply and availability while creating attractive growth opportunities for our business.
At Invitation Homes, we are committed to creating a better way to live and to being a force for positive change, which is underscored by our company purpose to Unlock the Power of Home™. Our Genuine CARE™ values serve as the foundation for our work, and the underlying principles of clear communication, integrity, responsibility, innovation, adaptability, and a welcoming workplace are designed to create an authentic experience for our residents, shareholders, and associates. We also work to advance sustainability, which is an important part of our strategic business objectives and is critical to our long-term success.
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Our commitment to high-touch customer service continuously enhances residents’ living experiences and provides an environment where individuals and families can thrive. Many of our residents are first responders, healthcare workers, teachers, and other essential members of their communities, people who dedicate themselves to serving others every day. We are honored to serve them in return, and we work hard to ensure they come home to a place of comfort and security. Each aspect of our operations — whether in our corporate headquarters or field offices located in our 16 core markets — is driven by a resident-centric model. Our associates take our values seriously and work hard every day to honor the trust our residents have placed in us to provide clean, safe, and functional homes for them and their loved ones. In turn, we focus on ensuring that our associates are fairly compensated and that we provide a culture that values respect, opportunity, and belonging. We also place a strong emphasis on the impact we have in our communities and on the environment in general, and we continue to support programs that demonstrate those commitments. In addition, we operate under strong, well-defined governance practices and are dedicated to adhering to the highest ethical standards at all times.
Impact of Macroeconomic Trends
General economic conditions in the United States have continued to fluctuate in recent quarters. While inflationary pressures have moderated from prior peaks, they remain elevated, and interest rates remain subject to volatility and uncertainty. These factors, together with ongoing uncertainty in financial and capital markets, geopolitical tensions, evolving trade and tariff policies, labor market conditions, and a general decline in consumer confidence could adversely affect (i) our occupancy levels, rental rates, and collections, (ii) our ability to acquire or dispose of properties on economically favorable terms, (iii) our access to financial markets on attractive terms, or at all, (iv) the value of our homes and our business that could cause us to recognize impairments in the value of our assets, and (v) demand for our land development, fee-building, and build-to-rent operations, as well as our construction and development lending activities. Broader inflationary pressures and market conditions may contribute to increases in operating costs that are outside of our control, including property taxes, utilities, and insurance costs (including higher premiums and deductibles, more restrictive terms, or reduced availability of coverage), which could adversely affect our results of operations. In addition, consumer confidence and spending may decline in response to changes in fiscal and monetary policy, reductions in income or asset values, and other macroeconomic factors. Labor shortages and inflationary increases in labor and material costs have impacted and may continue to impact certain aspects of our business. Imposition or increase of tariffs and trade restrictions by the United States on imports from certain countries and counter tariffs in response could lead to increased costs and supply chain disruptions. Any of these factors could have a material adverse effect on our business and results of operations, as well as on the price of our common stock.
The regulatory landscape affecting institutional ownership and acquisition of single-family rental properties continues to evolve. Executive actions, and potential federal and state legislation or regulations, aimed at limiting institutional ownership and acquisition of single-family homes, including but not limited to the Housing Act, could limit our ability to acquire additional homes, require us to modify our growth, investment, development, or disposition strategies, reduce the scale or efficiency of our operations, increase compliance costs, subject us to increased regulatory scrutiny, or otherwise adversely affect market dynamics, our business, and results of operations, financial condition, or cash flows. In addition, expanded tenant-protection and rent regulation requirements (whether enacted or proposed) could increase operating costs, reduce revenue, limit operational flexibility, and increase litigation and regulatory enforcement risk. We believe the legislative uncertainty preceding the enactment of the Housing Act contributed to certain prospective institutional purchasers deferring or curtailing their acquisition activity, which has reduced demand for our build-to-rent communities and fee-build operations, as well as for our construction and development lending. To the extent institutional demand remains constrained, our revenues, margins, and returns on invested capital in these business activities could be materially adversely affected, and if institutional capital is redirected away from single-family housing, our ability to maintain a pipeline of controlled lots on favorable terms through joint ventures, land banking arrangements, or similar structures could be impaired. Although the Housing Act includes an exception for build-to-rent development, the implementing regulatory framework may impose compliance costs or operational constraints that diminish the attractiveness of these programs to us, institutional investors, or our partners, and there can be no assurance that such exceptions will be maintained or that future legislative or regulatory action will not further restrict institutional participation in the single-family housing market.
While the degree to which we may continue to be affected by these macroeconomic challenges largely depends on the nature and duration of uncertain and unpredictable events, we believe that we are well suited to endure a shifting macroeconomic environment due to our diversification and resiliency. For further discussion of risks related to general economic conditions, see Part I. Item 1A. “Risk Factors — Risks Related to Our Business Environment and Industry — Our
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operating results are subject to general economic conditions and risks associated with our real estate assets” of our Annual Report on Form 10-K.
Climate Change
Potential consequences of global climate change may range from more frequent extreme weather events to governmental policy developments and shifts in consumer preferences, which have the potential individually or collectively to disrupt our business as well as negatively affect our suppliers, contractors, and residents. Physical, regulatory, and transition risks from climate change may significantly reduce our revenues and profitability or cause us to generate losses. We are subject to evolving laws and regulations relating to climate change, including regulations aimed at drastically increasing reporting and governance related to climate change as well as focused on limiting greenhouse gas emissions.
Evolving laws and regulations or any changed interpretation of such laws and regulations may require us to make costly improvements to our properties resulting in increased operating costs and compliance burdens. Choosing not to enhance our homes’ resource efficiency could make our portfolio less attractive to residents and investors. If we fail to manage transition risks effectively, our profitability and cash flow could suffer.
We recognize that climate change could have a significant impact on our portfolio of homes and that an increase in the number of acute weather events, natural disasters, and other climate-related events could significantly impact our business, operations, and homes. We consider physical risks, including the potential for natural disasters such as hurricanes, floods, and wildfires, when assessing our portfolio of homes and our business processes.
Our management and the board of directors are focused on managing our business risks, including climate change-related risks. The process to identify, manage, and integrate climate-change risk is part of our comprehensive enterprise risk management program. Our board of directors, through its Audit Committee and Nominating and Corporate Governance Committee, is responsible for oversight of our management of risks related to environmental issues, climate related risks, and social issues. For more information on risks related to climate change, see Part I. Item 1A. “Risk Factors — Risks Related to Sustainability, Corporate Responsibility, and Governance — Climate change and related environmental issues, related legislative and regulatory responses to climate change, and the transition to a lower-carbon economy may adversely affect our business, — We are subject to risks from natural disasters such as earthquakes, wildfires, and severe weather, and — We are subject to increasing scrutiny from investors and others regarding our sustainability responsibilities, which could result in additional costs or risks and adversely impact our reputation, associate attraction and retention, and ability to raise capital” of our Annual Report on Form 10-K.
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Our Portfolio
The following table provides summary information regarding our total and Same Store portfolios as of and for the three months ended September 30, 2026 as noted below:
| Market | Number of Homes(1) | Average Occupancy(2) | Average Monthly Rent(3) | Average Monthly Rent PSF(3) | % of Revenue(4) | ||||||||||||||||||||||||||||||
Western United States: | |||||||||||||||||||||||||||||||||||
Southern California | 6,635 | 96.2% | $3,300 | $1.92 | 10.5 | % | |||||||||||||||||||||||||||||
Northern California | 3,805 | 96.6% | 2,843 | 1.80 | 5.2 | % | |||||||||||||||||||||||||||||
Seattle | 3,839 | 96.7% | 3,027 | 1.58 | 5.6 | % | |||||||||||||||||||||||||||||
Phoenix | 9,225 | 96.5% | 2,089 | 1.23 | 9.2 | % | |||||||||||||||||||||||||||||
Las Vegas | 3,374 | 96.5% | 2,280 | 1.16 | 3.7 | % | |||||||||||||||||||||||||||||
Denver | 3,108 | 94.0% | 2,628 | 1.43 | 3.8 | % | |||||||||||||||||||||||||||||
Western United States Subtotal | 29,986 | 96.2% | 2,654 | 1.51 | 38.0 | % | |||||||||||||||||||||||||||||
Florida: | |||||||||||||||||||||||||||||||||||
South Florida | 7,746 | 94.2% | 3,190 | 1.71 | 11.4 | % | |||||||||||||||||||||||||||||
Tampa | 9,594 | 94.9% | 2,305 | 1.23 | 10.7 | % | |||||||||||||||||||||||||||||
Orlando | 7,073 | 95.7% | 2,309 | 1.23 | 7.9 | % | |||||||||||||||||||||||||||||
Jacksonville | 2,126 | 96.9% | 2,210 | 1.13 | 2.3 | % | |||||||||||||||||||||||||||||
Florida Subtotal | 26,539 | 95.1% | 2,556 | 1.36 | 32.3 | % | |||||||||||||||||||||||||||||
Southeast United States: | |||||||||||||||||||||||||||||||||||
Atlanta | 12,732 | 94.8% | 2,141 | 1.03 | 12.6 | % | |||||||||||||||||||||||||||||
Carolinas | 6,254 | 95.5% | 2,129 | 1.02 | 6.3 | % | |||||||||||||||||||||||||||||
Southeast United States Subtotal | 18,986 | 95.0% | 2,137 | 1.03 | 18.9 | % | |||||||||||||||||||||||||||||
Texas: | |||||||||||||||||||||||||||||||||||
Houston | 2,592 | 94.6% | 1,944 | 0.98 | 2.4 | % | |||||||||||||||||||||||||||||
Dallas | 3,882 | 93.8% | 2,219 | 1.10 | 3.9 | % | |||||||||||||||||||||||||||||
Texas Subtotal | 6,474 | 94.1% | 2,103 | 1.05 | 6.3 | % | |||||||||||||||||||||||||||||
Midwest United States: | |||||||||||||||||||||||||||||||||||
Chicago | 2,416 | 96.2% | 2,644 | 1.65 | 2.9 | % | |||||||||||||||||||||||||||||
Minneapolis | 1,020 | 94.1% | 2,532 | 1.29 | 1.2 | % | |||||||||||||||||||||||||||||
Midwest United States Subtotal | 3,436 | 95.6% | 2,611 | 1.53 | 4.1 | % | |||||||||||||||||||||||||||||
Other(5) | 540 | 90.9% | 1,930 | 1.02 | 0.4 | % | |||||||||||||||||||||||||||||
Total / Average | 85,961 | 95.4% | $2,466 | $1.31 | 100.0 | % | |||||||||||||||||||||||||||||
Same Store Total / Average | 76,687 | 96.4% | $2,492 | $1.33 | 91.6 | % | |||||||||||||||||||||||||||||
(1)As of September 30, 2026.
(2)Represents average occupancy for the three months ended September 30, 2026.
(3)Represents average monthly rent for the three months ended September 30, 2026.
(4)Represents the percentage of rental revenues and other property income generated in each market for the three months ended September 30, 2026.
(5)As of September 30, 2026, includes homes located in San Antonio, Salt Lake City, Austin, and Nashville, outside of our 16 core markets.
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Factors That Affect Our Results of Operations and Financial Condition
Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control. See Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K for more information regarding factors that could materially adversely affect our results of operations and financial condition. Key factors that impact our results of operations and financial condition include market fundamentals, rental rates and occupancy levels, collection rates, turnover rates and days to re-resident homes, property improvements and maintenance, property development, acquisitions, and renovations, financing arrangements, macroeconomic conditions, regulatory and policy development, and technology and data risks. Sensitivity to many of these factors has been heightened as a result of current macroeconomic conditions, including inflation, interest rate volatility, political dissension, labor market conditions, disruptions in financial markets (including events affecting financial institutions), evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties, and increasing technology and data risks. Additionally, each of these factors may also impact the results of operations and financial condition of our joint venture investments and those of third parties for whom we perform property and asset management services, which would impact the amount of management fee revenues and income (losses) from investments in unconsolidated joint ventures that we earn.
Market Fundamentals: Our results are impacted by housing market fundamentals and supply and demand conditions in our markets, particularly in the Western United States and Florida, which represented 70.3% of our rental revenues and other property income during the three months ended September 30, 2026. We actively monitor the impact of macroeconomic conditions on market fundamentals and quickly implement changes in pricing as market fundamentals shift.
Rental Rates and Occupancy Levels: Rental rates and occupancy levels are primary drivers of rental revenues and other property income. Our rental rates and occupancy levels are affected by macroeconomic factors and local and property-level factors, including market conditions, tenant-protection, rent control, and rent stabilization laws and regulations, seasonality, resident defaults, and the amount of time it takes to prepare a home for its next resident and re-lease homes when residents vacate. An important driver of rental rate growth is our ability to increase monthly rents from expiring leases, which typically have a term of one to two years.
Collection Rates: Our rental revenues and other property income are impacted by the rate at which we collect such revenues from our residents. Despite our efforts to assist residents facing financial hardships who need flexibility to fulfill their lease obligations, a portion of amounts receivable may not ultimately be collected. We may also be constrained in our ability to collect resident receivables due to local ordinances restricting residential lease compliance options. Any amounts billed to residents that have been deemed uncollectible along with our estimate of amounts that may ultimately be uncollectible decrease our rental revenues and other property income. In addition, expanded tenant-protection and rent regulation requirements and other legal restrictions affecting notices, fees, or enforcement remedies could adversely affect collections and increase related operating costs.
Turnover Rates and Days to Re-Resident: Other drivers of rental revenues and property operating and maintenance expense include the length of stay of our residents, resident turnover rates, and the number of days a home is unoccupied between residents. Our operating results are also impacted by the amount of time it takes to market and lease a property, which is a component of the number of days a home is unoccupied between residents. The period of time to market and lease a property can vary greatly and is impacted by local supply and demand, our marketing techniques, the size of our available inventory, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business, and both current economic conditions and future economic outlook, including the impact of inflation, interest rate increases, and labor shortages, uncertainty in financial markets which could adversely affect demand for our properties.
Property Improvements and Maintenance: Property improvements and maintenance impact capital expenditures, property operating and maintenance expense, and rental revenues. We actively manage our homes on a total portfolio basis to determine what capital and maintenance needs may be required and what opportunities we may have to generate additional revenues or expense savings from such expenditures. As a result of inflationary trends and/or imposition of or increases in tariffs, we may experience, as we have in the past, increased costs for certain materials and services necessary to improve and maintain our homes. We continue to actively manage the impact of these factors on these costs, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally, although there can be no assurance that we will continue to realize such advantages. Our property improvement and maintenance costs could also increase due to severe weather events or other casualty events, as well as increasing insurance premiums, deductibles, or reduced insurance availability.
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Property Development, Acquisitions, and Renovations: Future growth in rental revenues and other property income may be impacted by our ability to and the pace at which we identify and build or acquire homes and the time and cost required to renovate and lease those homes. We are also developing build-to-rent homes through third-party homebuilders and our ResiBuilt business, acquired in January 2026. Opportunities from these new construction channels are impacted by the availability of vacant developed lots, development land assets, and inventory of homes currently under construction or newly developed.
Our ability to identify and acquire single-family homes that meet our investment criteria is impacted by home prices in targeted acquisition locations, the inventory of homes available for sale through our acquisition channels, and competition for our target assets. All of these factors may be negatively impacted by current inflationary trends and elevated interest rates, potentially reducing the number of homes we acquire. The evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties could also limit our ability to acquire additional homes.
The acquisition of homes involves expenditures in addition to payment of the purchase price, including payments for acquisition fees, property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, property taxes, and HOA fees (when applicable). Additionally, we incur costs to renovate acquired homes to prepare them for rent. The time and cost involved in preparing acquired homes for rent can significantly impact our financial performance. As a result of inflationary trends and/or imposition of or increases in tariffs, we may experience, as we have in the past, increased costs for certain materials and services necessary to renovate our homes. We continue to actively manage the cost of renovations, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally, although there can be no assurance that we will continue to realize such advantages.
Financing Arrangements: Financing arrangements directly impact our interest expense, our various debt instruments, and our ability to acquire and renovate homes. We have historically utilized indebtedness to fund the acquisition and renovation of new homes. Our current financing arrangements contain financial covenants and other terms and conditions, including variable interest rates in some cases, that are impacted by market conditions. Current macroeconomic conditions may continue to negatively affect volatility, availability of funds, and transaction costs (including interest rates) within financial markets. These factors may also negatively affect our ability to access financial markets as well as our business, results of operations, and financial condition. Financial market uncertainty (including as a result of events affecting financial institutions) could also adversely affect credit availability and pricing. See Part I. Item 3. “Quantitative and Qualitative Disclosures about Market Risk” for further discussion regarding interest rate risk. Our future financing arrangements may not have similar terms with respect to amounts, interest rates, financial covenants, and durations.
Macroeconomic Conditions: Inflation, interest rate volatility, political dissension, labor market conditions, the evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties, and adverse global economic conditions could negatively affect our business and financial condition. Imposition of, increases in, and changing policies around tariffs by the United States on imports from certain countries and potential counter tariffs in response could lead to increased costs and supply chain disruptions. If we are not able to navigate any such changes, they could have a material adverse effect on our business and results of operations, as well as on the price of our common stock. In addition, increases in property taxes and insurance costs could adversely affect our results of operations.
Regulatory and Policy Risks: Executive actions, and potential federal and state legislation or regulations, aimed at limiting institutional ownership and acquisition of single-family homes, including but not limited to the Housing Act, could limit our ability to acquire additional homes, require us to modify our growth, investment, development, or disposition strategies, reduce the scale or efficiency of our operations, increase compliance costs, subject us to increased regulatory scrutiny, or otherwise adversely affect market dynamics, our business, and results of operations, financial condition, or cash flows. In addition, expanded tenant-protection and rent regulation requirements (whether enacted or proposed) could increase operating costs, reduce revenue, limit operational flexibility, and increase litigation and regulatory enforcement risk. As this policy landscape continues to evolve, we remain committed to working constructively with policymakers at all levels to support housing supply and availability, and we believe that well-managed, professionally operated rental housing serves an important role in expanding access to quality homes for American families.
Technology and Data Risks: Our business is dependent on information technology systems and third-party service providers, and evolving technologies (including the development and use of AI) may introduce operational, cybersecurity, and compliance risks that could adversely affect our business, results of operations, and financial condition.
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Components of Revenues and Expenses
The following is a description of the components of our revenues and expenses.
Revenues
Rental Revenues and Other Property Income
Rental revenues, net of any concessions and bad debt (including write-offs, credit reserves, and uncollectible amounts), consist of rents collected under lease agreements related to our single-family homes for lease. We enter into leases directly with our residents, and the leases typically have a term of one to two years.
Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) revenues from value-add services such as smart homes, internet and media packages, home liability insurance, and HVAC replacement filters; (iii) various other fees, including late fees and lease termination fees, among others; and (iv) rent and non-refundable deposits associated with pets.
Management Fee Revenues
Management fee revenues consist of fees from property and asset management services provided to portfolio owners of single-family homes for lease, including investments in our unconsolidated joint ventures.
Homebuilding Revenues
Homebuilding revenues consist of revenue recognized as progress is made toward completion of contractual performance obligations associated with the construction of single-family residential properties for third‑party fee-build customers.
Expenses
Property Operating and Maintenance
Once a property is available for its initial lease, which we refer to as “rent-ready,” we incur ongoing property-related expenses, which consist primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, utility expenses, repairs and maintenance, and property administration. Prior to a property being “rent-ready,” certain of these expenses are capitalized as building and improvements. Once a property is “rent-ready,” expenditures for ordinary repairs and maintenance thereafter are expensed as incurred, and we capitalize expenditures that improve or extend the life of a home.
Property Management Expense
Property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes, including those for which we provide property and asset management services on behalf of others through our internal property manager.
Homebuilding Cost of Sales
Homebuilding cost of sales includes labor, materials, and other direct and indirect costs incurred in connection with the construction of single-family residential properties for third‑party fee-build customers.
General and Administrative
General and administrative expense represents personnel costs, professional fees, and other costs associated with our day-to-day activities. General and administrative expense may also include expenses that are of a non-recurring nature, such as business reorganization costs.
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Share-Based Compensation Expense
We issue share-based awards to align the interests of our associates with those of our investors, and all share-based compensation expense is recognized in our condensed consolidated statements of operations as components of general and administrative expense and property management expense.
Interest Expense
Interest expense includes interest payable on our debt instruments, payments and receipts related to our interest rate swap agreements, amortization of discounts and deferred financing costs, unrealized gains (losses) on non-designated hedging instruments, and non-cash interest expense related to our interest rate swap agreements.
Depreciation and Amortization
We recognize depreciation expense associated with our homes and other capital expenditures and amortization of intangible assets over the expected useful lives of the assets.
Casualty Losses, Impairment, and Other
Casualty losses, impairment, and other represents casualty (gains) losses, net of any insurance recoveries, and provisions for impairment when the carrying amount of our single-family residential properties is not recoverable.
Gain on Sale of Property, net of tax
Gain on sale of property, net of tax consists of net gains and losses resulting from sales of our homes.
Income (Losses) from Investments in Unconsolidated Joint Ventures
Income (losses) from investments in unconsolidated joint ventures consists of our share of net earnings and losses from investments in unconsolidated joint ventures accounted for using the equity method, including gains (losses) recognized in connection with the dissolution of joint ventures that result in consolidation of joint venture assets and liabilities.
Loss on Debt Extinguishment and Modifications
Loss on debt extinguishment and modifications represents losses recognized in connection with the early retirement or modification of debt, including, but not limited to, legal and other costs incurred, prepayment premiums, and the write-off of unamortized deferred financing costs associated with debt repayments and modifications prior to maturity.
Other, net
Other, net includes interest income, provision for credit losses, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
Results of Operations
Portfolio Information
As of September 30, 2026 and 2025, we owned 85,961and 86,139 single-family rental homes, respectively, in our total portfolio. During the three months ended September 30, 2026 and 2025, we acquired 1,110 and 526 homes, respectively, and sold 658 and 292 homes, respectively. During the three months ended September 30, 2026 and 2025, we owned an average of 85,409 and 86,016 single-family rental homes, respectively. During the nine months ended September 30, 2026 and 2025, we acquired 1,567 and 2,042 homes, respectively, and sold 1,798 and 1,041 homes, respectively. During the nine months ended September 30, 2026 and 2025, we owned an average of 85,782 and 85,573 single-family rental homes, respectively. The number of homes acquired for the three and nine months ended September 30, 2026 includes 894 homes consolidated as a result of the Pathway Transaction (as more fully described and defined in “— Liquidity and Capital Resources”).
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We believe presenting information about the portion of our total portfolio that has been fully operational for the entirety of both a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business. To do so, we provide information regarding the performance of our Same Store portfolio.
As of September 30, 2026, our Same Store portfolio consisted of 76,687 single-family rental homes.
Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
The following table sets forth a comparison of the results of operations for the three months ended September 30, 2026 and 2025:
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Rental revenues and other property income | $ | 675,540 | $ | 666,191 | $ | 9,349 | 1.4 | % | |||||||||||||||||||||
| Management fee revenues | 19,889 | 21,975 | (2,086) | (9.5) | % | ||||||||||||||||||||||||
| Homebuilding revenues | 35,849 | — | 35,849 | N/M | |||||||||||||||||||||||||
| Total revenues | 731,278 | 688,166 | 43,112 | 6.3 | % | ||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||
| Property operating and maintenance | 264,198 | 259,037 | 5,161 | 2.0 | % | ||||||||||||||||||||||||
| Property management expense | 39,163 | 37,073 | 2,090 | 5.6 | % | ||||||||||||||||||||||||
| Homebuilding cost of sales | 31,967 | — | 31,967 | N/M | |||||||||||||||||||||||||
| General and administrative | 34,233 | 18,444 | 15,789 | 85.6 | % | ||||||||||||||||||||||||
| Interest expense | 92,045 | 90,781 | 1,264 | 1.4 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 195,751 | 188,457 | 7,294 | 3.9 | % | ||||||||||||||||||||||||
Casualty losses, impairment, and other | 6,807 | 3,420 | 3,387 | 99.0 | % | ||||||||||||||||||||||||
| Total expenses | 664,164 | 597,212 | 66,952 | 11.2 | % | ||||||||||||||||||||||||
| Gain on sale of property, net of tax | 136,176 | 45,515 | 90,661 | 199.2 | % | ||||||||||||||||||||||||
| Income (losses) from investments in unconsolidated joint ventures | (32,175) | 2,130 | (34,305) | N/M | |||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | (8,660) | — | (8,660) | N/M | |||||||||||||||||||||||||
| Other, net | (3,366) | (1,389) | (1,977) | (142.3) | % | ||||||||||||||||||||||||
| Net income | $ | 159,089 | $ | 137,210 | $ | 21,879 | 15.9 | % | |||||||||||||||||||||
Revenues
For the three months ended September 30, 2026 and 2025, total revenues were $731.3 million and $688.2 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
For the three months ended September 30, 2026 and 2025, total portfolio rental revenues and other property income totaled $675.5 million and $666.2 million, respectively, an increase of 1.4%, driven by an increase in average monthly rent per occupied home and a 60 bps increase in average occupancy, partially offset by a 607 home decrease between periods in the average number of homes owned.
Average occupancy for the three months ended September 30, 2026 and 2025 for the total portfolio was 95.4% and 94.8%, respectively. Average monthly rent per occupied home for the total portfolio for the three months ended September 30, 2026 and 2025 was $2,466 and $2,447, respectively, a 0.8% increase. For our Same Store portfolio, average occupancy was 96.4% and 96.5% for the three months ended September 30, 2026 and 2025, respectively, and average monthly rent per occupied home for the three months ended September 30, 2026 and 2025 was $2,492 and $2,448, respectively, a 1.8% increase.
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The annualized turnover rate for the Same Store portfolio for the three months ended September 30, 2026 and 2025 was 24.9% and 25.2%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 47 and 45 days between residents for the three months ended September 30, 2026 and 2025, respectively. The increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
To monitor prospective changes in average monthly rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized non-service concessions, to calculate net effective rental rate growth. Leases are either renewal leases, where our current resident stays for a subsequent lease term, or new leases, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Renewal lease net effective rental rate growth for the total portfolio averaged 4.3% and 4.5% for the three months ended September 30, 2026 and 2025, respectively, and new lease net effective rental rate growth for the total portfolio averaged 0.1% and (0.9)% for the three months ended September 30, 2026 and 2025, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 4.3% and 4.5% for the three months ended September 30, 2026 and 2025, respectively, and new lease net effective rental rate growth averaged (0.2)% and (0.7)% for the three months ended September 30, 2026 and 2025, respectively.
Other property income for the three months ended September 30, 2026 increased compared to September 30, 2025, primarily due to enhanced value-add revenue programs and increased utility recoveries as new leases are entered into, among other things.
For the three months ended September 30, 2026 and 2025, management fee revenues totaled $19.9 million and $22.0 million, respectively. The 9.5% decrease was primarily attributable to a lower average number of homes for which we provide property and asset management services, which decreased from 24,251 homes during the three months ended September 30, 2025 to 23,586 homes during the three months ended September 30, 2026, as well as lower disposition fee revenue.
For the three months ended September 30, 2026, homebuilding revenues totaled $35.8 million related to our acquisition of ResiBuilt on January 14, 2026.
Expenses
For the three months ended September 30, 2026 and 2025, total expenses were $664.2 million and $597.2 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
For the three months ended September 30, 2026, property operating and maintenance expense increased to $264.2 million from $259.0 million for the three months ended September 30, 2025. The 2.0% increase in property operating and maintenance expense is primarily attributable to increases in utilities and HOA expense.
Property management expense and general and administrative expense increased to $73.4 million from $55.5 million for the three months ended September 30, 2026 and 2025, respectively. The $17.9 million increase was primarily driven by a $9.5 million increase in share-based compensation expense, resulting from $5.4 million of forfeitures upon the departure of an executive during the three months ended September 30, 2025 and an increase in the value of awards granted during 2026 as compared to 2025, as well as additional costs recognized in connection with our newly acquired homebuilding platform.
For the three months ended September 30, 2026, homebuilding cost of sales totaled $32.0 million related to our acquisition of ResiBuilt on January 14, 2026.
Interest expense increased to $92.0 million for the three months ended September 30, 2026 from $90.8 million for the three months ended September 30, 2025. The increase in interest expense was primarily attributable to a $236.3 million increase in the weighted average debt balance outstanding between periods.
Depreciation and amortization expense increased to $195.8 million for the three months ended September 30, 2026 from $188.5 million for the three months ended September 30, 2025 due to increased amortization of intangible assets related to our newly acquired homebuilding platform, increased corporate depreciation related to technology improvements, and higher real estate depreciation resulting from cumulative capital expenditures.
Casualty losses, impairment, and other expenses were $6.8 million and $3.4 million for the three months ended September 30, 2026 and 2025, respectively. Expense during both periods is primarily comprised of casualty and other insurance losses and reserves.
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Gain on Sale of Property, net of tax
Gain on sale of property, net of tax was $136.2 million and $45.5 million for the three months ended September 30, 2026 and 2025, respectively. The increase resulted from an increase in the number of homes sold from 292 for the three months ended September 30, 2025 to 658 for the three months ended September 30, 2026 and an increase in the disposition proceeds received per home between periods.
Income (Losses) from Investments in Unconsolidated Joint Ventures
Our share of equity in income (losses) from unconsolidated joint ventures was a $32.2 million loss for the three months ended September 30, 2026, compared to $2.1 million of income for the three months ended September 30, 2025. The change was primarily driven by a $30.4 million loss recognized in connection with the dissolution of the Pathway joint ventures and the resulting consolidation of the assets and liabilities owned by Pathway Property Company at fair value (see additional information regarding the transaction in “— Liquidity and Capital Resources”).
Loss on Debt Extinguishment and Modifications
For the three months ended September 30, 2026, loss on debt extinguishment and modifications totaled $8.7 million, primarily related to costs incurred in connection with the voluntary repayment of IH 2017-1 in July 2026, including prepayment premiums and the acceleration of deferred financing costs.
Other, net
Other, net increased to $3.4 million of expense for the three months ended September 30, 2026 from $1.4 million of expense for the three months ended September 30, 2025, primarily attributable to a $3.5 million provision for credit losses on our construction and development loan receivables and the reserve for unfunded loan commitments recognized during the three months ended September 30, 2026, partially offset by higher interest income.
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
The following table sets forth a comparison of the results of operations for the nine months ended September 30, 2026 and 2025:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Rental revenues and other property income | $ | 2,024,407 | $ | 1,978,369 | $ | 46,038 | 2.3 | % | |||||||||||||||||||||
| Management fee revenues | 59,479 | 65,677 | (6,198) | (9.4) | % | ||||||||||||||||||||||||
| Homebuilding revenues | 129,054 | — | 129,054 | N/M | |||||||||||||||||||||||||
| Total revenues | 2,212,940 | 2,044,046 | 168,894 | 8.3 | % | ||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||
| Property operating and maintenance | 771,044 | 740,764 | 30,280 | 4.1 | % | ||||||||||||||||||||||||
| Property management expense | 116,214 | 109,645 | 6,569 | 6.0 | % | ||||||||||||||||||||||||
| Homebuilding cost of sales | 113,316 | — | 113,316 | N/M | |||||||||||||||||||||||||
| General and administrative | 95,884 | 71,553 | 24,331 | 34.0 | % | ||||||||||||||||||||||||
| Interest expense | 281,345 | 262,449 | 18,896 | 7.2 | % | ||||||||||||||||||||||||
| Depreciation and amortization | 583,192 | 557,058 | 26,134 | 4.7 | % | ||||||||||||||||||||||||
Casualty losses, impairment, and other | 15,388 | 11,132 | 4,256 | 38.2 | % | ||||||||||||||||||||||||
| Total expenses | 1,976,383 | 1,752,601 | 223,782 | 12.8 | % | ||||||||||||||||||||||||
| Gain on sale of property, net of tax | 355,578 | 163,772 | 191,806 | 117.1 | % | ||||||||||||||||||||||||
| Losses from investments in unconsolidated joint ventures | (37,662) | (7,890) | (29,772) | (377.3) | % | ||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | (8,660) | — | (8,660) | N/M | |||||||||||||||||||||||||
| Other, net | (6,008) | (2,468) | (3,540) | (143.4) | % | ||||||||||||||||||||||||
| Net income | $ | 539,805 | $ | 444,859 | $ | 94,946 | 21.3 | % | |||||||||||||||||||||
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Revenues
For the nine months ended September 30, 2026 and 2025, total revenues were $2,212.9 million and $2,044.0 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
For the nine months ended September 30, 2026 and 2025, total portfolio rental revenues and other property income totaled $2,024.4 million and $1,978.4 million, respectively, an increase of 2.3%, driven by an increase in average monthly rent per occupied home and a 20 bps increase in average occupancy.
Average occupancy for the nine months ended September 30, 2026 and 2025 for the total portfolio was 95.4% and 95.2%, respectively. Average monthly rent per occupied home for the total portfolio for the nine months ended September 30, 2026 and 2025 was $2,461 and $2,435, respectively, a 1.1% increase. For our Same Store portfolio, average occupancy was 96.6% and 97.0% for the nine months ended September 30, 2026 and 2025, respectively, and average monthly rent per occupied home for the nine months ended September 30, 2026 and 2025 was $2,480 and $2,431, respectively, a 2.0% increase.
The annualized turnover rate for the Same Store portfolio for the nine months ended September 30, 2026 and 2025 was 22.7% and 23.3%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 52 and 44 days between residents for the nine months ended September 30, 2026 and 2025, respectively. The increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
To monitor prospective changes in average monthly rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized non-service concessions, to calculate net effective rental rate growth. Leases are either renewal leases, where our current resident stays for a subsequent lease term, or new leases, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Renewal lease net effective rental rate growth for the total portfolio averaged 3.7% and 4.7% for the nine months ended September 30, 2026 and 2025, respectively, and new lease net effective rental rate growth for the total portfolio averaged (0.8)% and 0.3% for the nine months ended September 30, 2026 and 2025, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 3.7% and 4.8% for the nine months ended September 30, 2026 and 2025, respectively, and new lease net effective rental rate growth averaged (0.8)% and 0.4% for the nine months ended September 30, 2026 and 2025, respectively.
Other property income for the nine months ended September 30, 2026 increased compared to September 30, 2025, primarily due to enhanced value-add revenue programs and increased utility recoveries as new leases are entered into, among other things.
For the nine months ended September 30, 2026 and 2025, management fee revenues totaled $59.5 million and $65.7 million, respectively. The 9.4% decrease was primarily attributable to a lower average number of homes for which we provide property and asset management services, which decreased from 24,722 homes for the nine months ended September 30, 2025 to 23,688 homes for the nine months ended September 30, 2026, as well as lower disposition fee revenue.
For the nine months ended September 30, 2026, homebuilding revenues totaled $129.1 million after our acquisition of ResiBuilt on January 14, 2026.
Expenses
For the nine months ended September 30, 2026 and 2025, total expenses were $1,976.4 million and $1,752.6 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
For the nine months ended September 30, 2026, property operating and maintenance expense increased to $771.0 million from $740.8 million for the nine months ended September 30, 2025. The 4.1% increase in property operating and maintenance expense is primarily attributable to increases in utilities, property taxes, repairs and maintenance, and HOA expense.
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Property management expense and general and administrative expense increased to $212.1 million from $181.2 million for the nine months ended September 30, 2026 and 2025, respectively. The $30.9 million increase was primarily driven by a $11.0 million increase in share-based compensation expense, resulting from $5.4 million of forfeitures upon the departure of an executive during the nine months ended September 30, 2025 and an increase in the value of awards granted during 2026 as compared to 2025, as well as additional costs recognized in connection with our newly acquired homebuilding platform.
For the nine months ended September 30, 2026, homebuilding cost of sales totaled $113.3 million after our acquisition of ResiBuilt on January 14, 2026.
Interest expense increased to $281.3 million for the nine months ended September 30, 2026 from $262.4 million for the nine months ended September 30, 2025. The increase in interest expense was primarily attributable to a $379.5 million increase in the weighted average debt balance outstanding between periods.
Depreciation and amortization expense increased to $583.2 million for the nine months ended September 30, 2026 from $557.1 million for the nine months ended September 30, 2025 due to higher real estate depreciation resulting from cumulative capital expenditures, increased amortization of intangible assets related to our newly acquired homebuilding platform, and increased corporate depreciation related to technology improvements.
Casualty losses, impairment, and other expenses were $15.4 million and $11.1 million for the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026, we incurred $13.2 million of casualty and other insurance losses and reserves and $2.2 million of impairment losses on our single-family residential properties, compared to $10.7 million and $0.4 million, respectively, for the nine months ended September 30, 2025.
Gain on Sale of Property, net of tax
Gain on sale of property, net of tax was $355.6 million and $163.8 million for the nine months ended September 30, 2026 and 2025, respectively. The increase resulted from an increase in the number of homes sold from 1,041 for the nine months ended September 30, 2025 to 1,798 for the nine months ended September 30, 2026 and an increase in the disposition proceeds received per home between periods.
Losses from Investments in Unconsolidated Joint Ventures
Our share of equity in losses from unconsolidated joint ventures was a loss of $37.7 million and $7.9 million for the nine months ended September 30, 2026 and 2025, respectively. The change was primarily driven by a $30.4 million loss recognized in connection with the dissolution of the Pathway joint ventures and the resulting consolidation of the assets and liabilities owned by Pathway Property Company at fair value (see additional information regarding the transaction in “— Liquidity and Capital Resources”).
Loss on Debt Extinguishment and Modifications
For the nine months ended September 30, 2026, loss on debt extinguishment and modifications totaled $8.7 million, primarily related to costs incurred in connection with the voluntary repayment of IH 2017-1 in July 2026, including prepayment premiums and the acceleration of deferred financing costs.
Other, net
Other, net increased to $6.0 million of expense for the nine months ended September 30, 2026 from $2.5 million of expense for the nine months ended September 30, 2025, primarily attributable to a $3.5 million provision for credit losses on our construction and development loan receivables and the reserve for unfunded loan commitments recognized during the nine months ended September 30, 2026.
Liquidity and Capital Resources
Our liquidity and capital resources as of September 30, 2026 and December 31, 2025 include unrestricted cash and cash equivalents of $78.9 million and $130.0 million, respectively, a 39.3% decrease primarily due to repurchases of shares of our common stock and the acquisition of Resibuilt as more fully described below. As of September 30, 2026, $1,265.0 million of our Revolving Facility is undrawn, and there are no restrictions on our ability to draw funds thereunder provided we remain in compliance with all covenants. We have no debt reaching final maturity until June 2027, and we plan to address IH 2017-1 in advance thereof by accessing one or our multiple capital sources for potential refinancing.
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Debt Issuance and Prepayment
On July 8, 2026, in a public offering under our existing shelf registration statement, we issued $500.0 million aggregate principal amount of 4.95% Senior Notes which mature on February 1, 2032.
On July 9, 2026, we used proceeds from the issuance of unsecured notes to make a $488.0 million voluntary prepayment on the outstanding principal balance of IH 2017-1 and incurred a prepayment premium of $4.9 million.
Share Repurchase Programs
From time to time, our board of directors may authorize share repurchase programs pursuant to which we may acquire shares of our common stock through open market purchases or negotiated transactions, including through Rule 10b5-1 plans. Unless otherwise specified, share repurchase programs do not have an expiration date. On October 28, 2025 and April 27, 2026, our board of directors authorized share repurchase programs, under which we may acquire shares of our common stock through the open market or negotiated transactions up to an aggregate purchase price of $500.0 million pursuant to each program.
During the three and nine months ended September 30, 2026, we repurchased an aggregate of 8,874,903 and 29,454,639 shares of our common stock for a total cost of $250.4 million and $789.5 million, respectively, inclusive of legal fees and commissions. As of September 30, 2026, $150.0 million remained available for future repurchases under the April 27, 2026 share repurchase program. Through October 28, 2026, we repurchased an additional 5,609,664 shares of our common stock for a total cost of $149.0 million, inclusive of legal fees and commissions, leaving $1.1 million available for repurchase under the April 27, 2026 share repurchase program.
On October 26, 2026, our board of directors authorized a share repurchase program under which we may acquire shares of our common stock in the open market or negotiated transactions up to an aggregate purchase price of $500.0 million.
Repurchases under share repurchase programs are made at our discretion and are not required or guaranteed. The timing and actual number of shares repurchased depends on a variety of factors, including price, corporate and regulatory requirements, market conditions, and other liquidity needs and priorities.
Pathway Transaction
On September 15, 2026, we executed a series of agreements to effectuate the dissolution of the Pathway joint ventures, Pathway Property Company and Pathway Operating Company (the “Pathway Transaction”). In connection with the Pathway Transaction, we acquired the general partner and all other interests in Pathway Property Company, resulting in our ownership of a controlling financial interest in the entity and the consolidation of the 894 homes, along with other assets and liabilities, previously owned by Pathway Property Company. In conjunction with the Pathway Transaction, we contributed $196.9 million to Pathway Property Company to repay the outstanding balance of and release the homes securing the joint venture’s warehouse loan. Additionally, the operating agreements governing the Pathway joint ventures were terminated, resulting in the dissolution of Pathway Operating Company.
Acquisition of ResiBuilt
On January 14, 2026, we acquired ResiBuilt, a leading fee homebuilder specializing in single-family rental communities with expertise in land development and construction general contracting across high-growth Southeast markets.
Other
Our ability to access capital as well as to use cash from operations to continue to meet our liquidity needs, all of which are highly uncertain and cannot be predicted, could be affected by various risks and uncertainties, including, but not limited to, the effects of general economic conditions, including inflation and interest rates, as detailed in Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K.
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Long-Term Debt Strategy
The following table summarizes certain information about our debt obligations as of September 30, 2026 ($ in thousands):
Debt Instruments(1) | Balance (Gross of Retained Certificates and Unamortized Discounts) | Balance (Net of Retained Certificates) | Weighted Average Interest Rate(2) | Weighted Average Years to Maturity(3) | Amount Freely Prepayable (Gross) | |||||||||||||||||||||||||||
| Secured: | ||||||||||||||||||||||||||||||||
IH 2017-1(4) | $ | 499,781 | $ | 444,282 | 4.23% | 0.7 | $ | — | ||||||||||||||||||||||||
IH 2019-1(5) | 400,386 | 400,386 | 3.59% | 4.7 | — | |||||||||||||||||||||||||||
Total secured | 900,167 | $ | 844,668 | 3.94% | 2.5 | — | ||||||||||||||||||||||||||
| Unsecured: | ||||||||||||||||||||||||||||||||
2024 Term Loan Facility(6)(7) | $ | 1,750,000 | S + 85 bps | 2.9 | $ | 1,750,000 | ||||||||||||||||||||||||||
2022 Term Loan Facility(6)(8) | 725,000 | S + 85 bps | 3.6 | 725,000 | ||||||||||||||||||||||||||||
Revolving Facility(6)(7) | 485,000 | S + 78 bps | 2.9 | 485,000 | ||||||||||||||||||||||||||||
Unsecured Notes — May 2028 | 150,000 | 2.46% | 1.7 | — | ||||||||||||||||||||||||||||
Unsecured Notes — November 2028 | 600,000 | 2.30% | 2.1 | — | ||||||||||||||||||||||||||||
| Unsecured Notes — August 2030 | 450,000 | 5.45% | 3.9 | — | ||||||||||||||||||||||||||||
Unsecured Notes — August 2031 | 650,000 | 2.00% | 4.9 | — | ||||||||||||||||||||||||||||
Unsecured Notes — February 2032 | 500,000 | 4.95% | 5.3 | — | ||||||||||||||||||||||||||||
| Unsecured Notes — April 2032 | 600,000 | 4.15% | 5.5 | — | ||||||||||||||||||||||||||||
| Unsecured Notes — January 2033 | 600,000 | 4.95% | 6.3 | — | ||||||||||||||||||||||||||||
| Unsecured Notes — August 2033 | 350,000 | 5.50% | 6.9 | — | ||||||||||||||||||||||||||||
Unsecured Notes — January 2034 | 400,000 | 2.70% | 7.3 | |||||||||||||||||||||||||||||
Unsecured Notes — February 2035 | 500,000 | 4.88% | 8.3 | — | ||||||||||||||||||||||||||||
Unsecured Notes — May 2036 | 150,000 | 3.18% | 9.7 | — | ||||||||||||||||||||||||||||
Total unsecured(9) | 7,910,000 | 4.00% | 4.6 | 2,960,000 | ||||||||||||||||||||||||||||
Total debt(9) | 8,810,167 | 3.99% | 4.4 | $ | 2,960,000 | |||||||||||||||||||||||||||
| Unamortized discounts | (24,854) | |||||||||||||||||||||||||||||||
| Deferred financing costs, net | (45,110) | |||||||||||||||||||||||||||||||
| Total debt per balance sheet | 8,740,203 | |||||||||||||||||||||||||||||||
| Retained certificates | (55,499) | |||||||||||||||||||||||||||||||
Cash and restricted cash, excluding security deposits and letters of credit | (147,083) | |||||||||||||||||||||||||||||||
| Deferred financing costs, net | 45,110 | |||||||||||||||||||||||||||||||
| Unamortized discounts | 24,854 | |||||||||||||||||||||||||||||||
| Net debt | $ | 8,607,585 | ||||||||||||||||||||||||||||||
(1)For detailed information about and definition of each of our financing arrangements, see Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements.” For information about our derivative instruments that hedge floating rate debt, see Part I. Item 1. “Financial Statements — Note 8 of Notes to Condensed Consolidated Financial Statements.”
(2)Variable interest rate loans are indexed to a Secured Overnight Financing Rate (“SOFR”) index rate determined by reference to a published forward-looking SOFR rate for the interest period relevant to such borrowing (“Term SOFR”), reflected as “S” in the table above.
(3)Weighted average years to maturity assumes all extension options are exercised, which are subject to certain conditions being met.
(4)IH 2017-1 bears interest at a fixed rate of 4.23% per annum, equal to the market determined pass-through rate payable on the certificates including applicable servicing fees.
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(5)IH 2019-1 bears interest at a fixed rate of 3.59% per annum including applicable servicing fees for the first 11 years and for the twelfth year bears interest at a floating rate based on a spread of 147 bps over a comparable or successor rate to the one month London Interbank Offer Rate as provided for in the loan agreement, including applicable servicing fees, subject to certain adjustments as outlined in the loan agreement.
(6)As of September 30, 2026, interest rate is based on Term SOFR of 3.91% plus the applicable margin for the 2024 Term Loan and the Revolving Facility.
(7)If we exercise the two six month extension options, the maturity date will be September 9, 2029.
(8)If we exercise the two one year extension options, the maturity date will be April 28, 2030.
(9)For unsecured debt and total debt, the weighted average interest rate is calculated based on September 30, 2026 Term SOFR of 3.91%, and includes the impact of interest rate swap agreements effective as of that date.
As part of our long-term debt strategy, our goal is to maintain or improve our credit ratings, and, over time, we generally intend to be a predominantly unsecured borrower with a target net debt of approximately 5.5 to 6.0 times trailing twelve months Adjusted EBITDAre (see “— Non-GAAP Measures — EBITDA, EBITDAre, and Adjusted EBITDAre”). To facilitate our long-term debt strategy, we expect to seek to, among other things, (a) refinance a significant portion of our secured debt maturing in 2027 with unsecured debt, including potential unsecured bond issuances and/or (b) repay a portion of such debt. There can be no assurance that we will be successful in implementing our long-term debt strategy, improving our credit ratings, or adhering to our targets in the short or medium term or at all, or that we will not change our strategy or targets in the future. We may from time to time fall outside of our target ranges. In addition, we cannot assure you that we will be able to access the capital and credit markets to obtain additional unsecured debt financing or that we will be able to obtain financing on terms favorable to us. For further discussion of risks related to our indebtedness, see Part I. Item 1A. “Risk Factors — Risks Related to Our Indebtedness,” including “Risk Factors — Risks Related to Our Indebtedness — We may be unable to obtain financing through the debt and equity markets, which would have a material adverse effect on our growth strategy and our financial condition and results of operations” of our Annual Report on Form 10-K.
Short-Term and Long-Term Liquidity Needs
Liquidity is a measure of our ability to meet potential cash requirements, maintain our assets, fund our operations, make dividend payments to our stockholders, and meet other general requirements of our business. Our liquidity, to a certain extent, is subject to general economic, financial, competitive, and other factors beyond our control. Our short-term liquidity requirements consist primarily of:
•commitments for the development or acquisition of homes;
•renovation of newly-acquired homes;
•funding commitments for construction and development loans made to homebuilders;
•HOA fees (as applicable), property taxes, insurance premiums, and the ongoing maintenance of our homes;
•property management, general and administrative, and other entity-level commitments and expenses;
•interest expense;
•dividend payments to our stockholders; and
•required contributions to our joint ventures.
We believe our rental income, net of total expenses, will generally provide cash flow sufficient to fund operations and dividend payments on a short-term basis. Additionally, we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the financing of one of our joint ventures. We do not expect these guarantees to have a material current or future effect on our liquidity.
General economic conditions in the United States have continued to fluctuate in recent quarters, and concerns persist regarding adverse macroeconomic conditions, such as inflation, interest rate volatility, political dissension, and labor market conditions. Fluctuating economic conditions and uncertainty in financial markets may negatively impact our operating cash flow such that we are unable to make required debt service payments, which would result in an event of default for any debt instrument under whose loan agreement such payments were not made. Specifically, the collateral within individual borrower entities may underperform, resulting in cash flow shortfalls for debt service while consolidated cash flows are sufficient to fund our operations. If an event of default occurs for our secured debt, our loan agreements provide certain remedies,
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including our ability to fund shortfalls from consolidated cash flow; and such an event of default would not result in an immediate acceleration of the loan.
Our real estate assets are illiquid in nature. A timely liquidation of assets may not be a viable source of short-term liquidity should a cash flow shortfall arise, and we may need to source liquidity from other financing sources, such as the Revolving Facility which had an undrawn balance of $1,265.0 million as of September 30, 2026.
Our long-term liquidity requirements consist primarily of funds necessary to pay for the acquisition of, and non-recurring capital expenditures for, our homes and principal and interest payments of our indebtedness. We intend to satisfy our long-term liquidity needs through cash provided by operations, long-term secured and unsecured borrowings, the issuance of debt and equity securities, and property dispositions. As a REIT, we are required to distribute to our stockholders at least 90% of our taxable income, excluding net capital gain, on an annual basis. Therefore, as a general matter, it is unlikely that we will be able to retain substantial cash balances from our annual taxable income that could be used to meet our liquidity needs. Instead, we will need to meet these needs from external sources of capital and amounts, if any, by which our cash flow generated from operations exceeds taxable income.
Cash Flows
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
The following table summarizes our cash flows for the nine months ended September 30, 2026 and 2025:
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,060,576 | $ | 1,077,580 | $ | (17,004) | (1.6) | % | ||||||||||||||||||
| Net cash used in investing activities | (64,345) | (570,993) | 506,648 | 88.7 | % | |||||||||||||||||||||
Net cash used in financing activities | (1,013,262) | (530,612) | (482,650) | (91.0) | % | |||||||||||||||||||||
| Change in cash, cash equivalents, and restricted cash | $ | (17,031) | $ | (24,025) | $ | 6,994 | 29.1 | % | ||||||||||||||||||
Operating Activities
Our cash flows provided by operating activities depend on numerous factors, including the occupancy level of our homes, the rental rates achieved on our leases, the collection of rent from our residents, and the amount of other operating revenues and expenses. Net cash provided by operating activities was $1,060.6 million and $1,077.6 million for the nine months ended September 30, 2026 and 2025, respectively, a decrease of 1.6%. The decrease in cash provided by operating activities is primarily due to a net $16.3 million of cash used in operations between periods from changes in operating assets and liabilities.
Investing Activities
Net cash used in investing activities consists primarily of expenditures for the acquisition, initial renovations, and ongoing capital improvements to our homes, investments in unconsolidated joint ventures, the purchase price of our recent homebuilding platform acquisition, land and construction in progress, and fundings of construction loans, partially offset by proceeds from property sales.
Net cash used in investing activities was $64.3 million and $571.0 million for the nine months ended September 30, 2026 and 2025, respectively, a decrease of $506.6 million. The net decrease in cash provided by investing activities resulted primarily from the combined effect of the following significant changes in cash flows period over period: (1) a decrease in cash used for the acquisition and initial renovations of homes; (2) an increase in cash proceeds received from the sale of single-family homes; (3) an increase in cash used for investments in unconsolidated joint ventures; (4) the purchase of a homebuilding platform in the current period; (5) an increase in cash used for investment in land and construction in progress; and (6) an increase in cash used for fundings of construction loans.
Acquisition and initial renovation spend decreased by $476.2 million from period to period due to a decrease in the number of homes acquired from 2,042 during the nine months ended September 30, 2025 to 673 homes purchased during the nine months ended September 30, 2026. Proceeds from the sale of single-family homes increased $384.6 million due to an increase in the number of homes sold from 1,041 during the nine months ended September 30, 2025 to 1,798 homes sold
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during the nine months ended September 30, 2026 and an increase in average net proceeds per home. On September 15, 2026, in connection with the Pathway Transaction, we contributed $196.9 million to Pathway Property Company to repay its then-outstanding indebtedness. On January 14, 2026, we invested $91.1 million for the acquisition of ResiBuilt. Cash used for investment in land and construction in progress increased to $80.1 million due to an increase in on balance sheet and related party build-to-rent development activities. Cash used for fundings of construction loans increased to $49.3 million due to commencement of our construction and development lending program in the second half of 2025.
Financing Activities
Net cash used in financing activities was $1,013.3 million for the nine months ended September 30, 2026 compared to $530.6 million for the nine months ended September 30, 2025. The change between periods is primarily due to the following financing transactions. During the nine months ended September 30, 2026, we repurchased $797.6 million of shares of our common stock under our share repurchase programs. No such repurchases occurred during the nine months ended September 30, 2025. For the nine months ended September 30, 2026, $340.0 million of net proceeds from our Revolving Facility and proceeds from the sale of homes were used to acquire ResiBuilt and repurchase shares of our common stock. During the nine months ended September 30, 2026, we issued $496.5 million of unsecured notes, net of discount, and used the proceeds to make a $488.0 million voluntary prepayment on IH 2017-1 debt secured debt and to pay related closing costs. For the nine months ended September 30, 2025, we issued $596.9 million of unsecured notes, net of discount, and used the proceeds to repay the then-outstanding balance on our revolving credit facility (resulting in $570.0 million of net payments thereon on a year to date basis) and to pay related closing costs. We also made dividend and distribution payments totaling $544.1 million during the nine months ended September 30, 2026 compared to $536.8 million during the nine months ended September 30, 2025, which were funded by cash flows from operations.
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Contractual Obligations
Our contractual obligations as of September 30, 2026, consist of the following:
| ($ in thousands) | Total | 2026(1) | 2027-2028 | 2029-2030 | Thereafter | |||||||||||||||||||||||||||
Secured Debt(2)(3) | $ | 982,348 | $ | 8,992 | $ | 537,943 | $ | 28,730 | $ | 406,683 | ||||||||||||||||||||||
Unsecured Notes(2)(3) | 6,061,656 | 48,390 | 1,133,687 | 792,868 | 4,086,711 | |||||||||||||||||||||||||||
Term Loan Facilities(2)(3)(4)(5) | 2,828,438 | 12,543 | 237,028 | 2,578,867 | — | |||||||||||||||||||||||||||
Revolving Facility(2)(3)(4)(5)(6) | 560,727 | 6,481 | 51,494 | 502,752 | — | |||||||||||||||||||||||||||
Derivative instruments(2)(7) | (34,474) | (4,540) | (28,105) | (1,829) | — | |||||||||||||||||||||||||||
Purchase commitments(8) | 58,561 | 13,936 | 44,625 | — | — | |||||||||||||||||||||||||||
| Operating leases | 59,110 | 1,814 | 14,207 | 12,287 | 30,802 | |||||||||||||||||||||||||||
| Finance leases | 22,102 | 2,084 | 13,777 | 6,241 | — | |||||||||||||||||||||||||||
| Total | $ | 10,538,468 | $ | 89,700 | $ | 2,004,656 | $ | 3,919,916 | $ | 4,524,196 | ||||||||||||||||||||||
(1)Includes estimated payments for the remaining three months of 2026.
(2)For detailed information about each of our financing arrangements and derivative instruments see Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements” and “— Note 8 of Notes to Condensed Consolidated Financial Statements.”
(3)Includes estimated interest payments through the extended maturity date, as applicable, based on the principal amount outstanding as of September 30, 2026.
(4)Interest is calculated at rates in effect as of September 30, 2026, including the indexed rate, any applicable margin, and that rate is held constant until the maturity date. As of September 30, 2026, Term SOFR was 3.91%.
(5)Calculated based on the maturity date if we exercise each of the remaining extension options available, which are subject to certain conditions being met. See Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements” for a description of maturity dates without consideration of extension options.
(6)Includes the related facility fee, as applicable.
(7)Includes payments (receipts) related to interest rate swap obligations calculated using Term SOFR. As of September 30, 2026, Term SOFR was 3.91%.
(8)Represents commitments, net of previously funded deposits, to acquire 183 homes pursuant to binding development and purchase agreements with certain third-party homebuilders as of September 30, 2026.
Additionally, we have commitments, which are not reflected in the table above, to make additional capital contributions to our joint ventures and to fund future draws under construction and development loans made to borrowers. As of September 30, 2026, our remaining equity commitments to our joint ventures total $62.6 million, and our remaining funding commitments for construction and development loans total $221.9 million.
Supplemental Guarantor Information
INVH, INVH LP, the General Partner, and IH Merger Sub, LLC (“IH Merger Sub”) have filed a registration statement on Form S-3 with the SEC registering, among other securities, debt securities of INVH LP, fully and unconditionally guaranteed, on a joint and several basis, by INVH, the General Partner, and/or IH Merger Sub. Pursuant to Rule 3-10 of Regulation S-X, subsidiary issuers of obligations guaranteed by the parent are not required to provide separate financial statements, provided that the subsidiary obligor is consolidated into the parent company’s consolidated financial statements, the parent guarantee is “full and unconditional” and, subject to certain exceptions as set forth below, the alternative disclosure required by Rule 13-01 is provided, which includes narrative disclosure and summarized financial information. Accordingly, separate consolidated financial statements of INVH LP, the General Partner, and IH Merger Sub have not been presented.
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Furthermore, as permitted under Rule 13-01(a)(4)(vi) of Regulation S-X, we have excluded the summarized financial information for the INVH LP, the General Partner, and IH Merger Sub, because the combined assets, liabilities, and results of operations of INVH, INVH LP, the General Partner, and IH Merger Sub are not materially different than the corresponding amounts in our condensed consolidated financial statements, and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.
Purchase of Outstanding Debt Securities or Loans
As market conditions warrant, we may from time to time seek to purchase our outstanding debt or debt securities that we may issue in the future, in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our condensed consolidated balance sheet or the incurrence of new secured or unsecured debt, including borrowings under our Credit Facility. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may be with respect to a substantial amount of a particular class or series of debt, with the attendant reduction in the trading liquidity of such class or series. In addition, any such purchases made at prices below the “adjusted issue price” (as defined for United States federal income tax purposes) may result in taxable cancellation of indebtedness income to us, which amounts may be material, and in related adverse tax consequences to us.
Critical Accounting Policies and Estimates
Critical accounting policies are those accounting policies that management believes are important to the portrayal of our financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We believe that our critical accounting policies pertain to our investments in single-family residential properties, including acquisition of real estate assets, related cost capitalization, provisions for impairment, and single-family residential properties held for sale. These critical policies and estimates are summarized in Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the nine months ended September 30, 2026.
For a discussion of recently adopted accounting standards, if any, see Part I. Item 1. “Financial Statements — Note 2 of Notes to Condensed Consolidated Financial Statements.”
Segment Reporting
Our principal business is acquiring, renovating, leasing, operating, developing, and managing single-family residential properties. Under the provisions of ASC 280, Segment Reporting, we have determined that we currently operate in one reportable segment.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). We concluded that we have one reportable segment based on the way our CODM regularly reviews internally reported financial information to evaluate performance, make operating decisions, and allocate resources at a consolidated level. Net income as reported on our condensed consolidated statements of operations is a primary metric utilized by the CODM to analyze the performance of the segment, including budget versus actual performance, and to allocate resources.
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Non-GAAP Measures
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with GAAP before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. The National Association of Real Estate Investment Trusts (“Nareit”) recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. Consistent with the Nareit definition, we define EBITDAre as EBITDA, further adjusted for the following: gain on sale of property, net of tax; and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; business reorganization; casualty (gains) losses and reserves, net; (gains) losses on debt extinguishment and modifications; and other income and expenses.
EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
Our management uses EBITDA, EBITDAre, and Adjusted EBITDAre in a number of ways to assess our condensed consolidated financial and operating performance, and we believe these measures are helpful to management and external users in identifying trends in our performance. EBITDA, EBITDAre, and Adjusted EBITDAre help management identify controllable expenses and make decisions designed to help us meet our current financial goals and optimize our financial performance, while neutralizing the impact of capital structure on results. Accordingly, we believe these metrics measure our financial performance based on operational factors that management can impact in the short-term, namely our cost structure and expenses.
We believe that the presentation of EBITDA, EBITDAre, and Adjusted EBITDAre provides information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies.
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The following table presents a reconciliation of net income (as determined in accordance with GAAP) to EBITDA, EBITDAre, and Adjusted EBITDAre for each of the periods indicated:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 157,811 | $ | 136,474 | $ | 535,783 | $ | 442,656 | ||||||||||||||||||||||||||||||||||||
| Net income available to participating securities | 676 | 264 | 2,059 | 714 | ||||||||||||||||||||||||||||||||||||||||
| Non-controlling interests | 602 | 472 | 1,963 | 1,489 | ||||||||||||||||||||||||||||||||||||||||
| Interest expense | 92,045 | 90,781 | 281,345 | 262,449 | ||||||||||||||||||||||||||||||||||||||||
| Interest expense in unconsolidated joint ventures | 6,054 | 7,253 | 18,446 | 18,822 | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 195,751 | 188,457 | 583,192 | 557,058 | ||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization of investments in unconsolidated joint ventures | 4,572 | 4,484 | 13,548 | 11,937 | ||||||||||||||||||||||||||||||||||||||||
| EBITDA | 457,511 | 428,185 | 1,436,336 | 1,295,125 | ||||||||||||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (136,176) | (45,515) | (355,578) | (163,772) | ||||||||||||||||||||||||||||||||||||||||
| Impairment on depreciated real estate investments | 796 | 335 | 2,226 | 434 | ||||||||||||||||||||||||||||||||||||||||
| Net gain on sale of investments in unconsolidated joint ventures | (1,856) | (6,469) | (4,904) | (6,875) | ||||||||||||||||||||||||||||||||||||||||
EBITDAre | 320,275 | 376,536 | 1,078,080 | 1,124,912 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense(1) | 11,462 | 1,916 | 31,508 | 20,537 | ||||||||||||||||||||||||||||||||||||||||
Business reorganization(2) | 32,009 | — | 34,789 | 2,420 | ||||||||||||||||||||||||||||||||||||||||
Casualty losses and reserves, net(3) | 6,036 | 3,116 | 13,329 | 10,799 | ||||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | 8,660 | — | 8,660 | — | ||||||||||||||||||||||||||||||||||||||||
Other, net(4) | 3,366 | 1,389 | 6,008 | 2,468 | ||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDAre | $ | 381,808 | $ | 382,957 | $ | 1,172,374 | $ | 1,161,136 | ||||||||||||||||||||||||||||||||||||
(1)For the three months ended September 30, 2026 and 2025, $1,824 and $1,562 was recorded in property management expense, respectively, and $9,638 and $354 was recorded in general and administrative expense, respectively. For the nine months ended September 30, 2026 and 2025, $6,089 and $4,779 was recorded in property management expense, respectively, and $25,419 and $15,758 was recorded in general and administrative expense, respectively.
(2)Includes a $30,411 loss recognized from consolidation of assets and liabilities in connection with the dissolution of our Pathway joint ventures; this loss was recorded in income (losses) from investments in unconsolidated joint ventures. Also includes severance, restructuring, acquisition, and integration costs.
(3)Includes our share from unconsolidated joint ventures.
(4)Includes interest income, non-cash provision for credit losses, net, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
Net Operating Income
NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, utility expenses, repairs and maintenance, and property administration). NOI excludes: management fee revenues; homebuilding revenues; property management expense; homebuilding cost of sales; general and administrative expense; interest expense; depreciation and amortization; casualty losses, impairment, and other; gain on sale of property, net of tax; losses from investments in unconsolidated joint ventures; (gains) losses on debt extinguishment and modifications; and other income and expenses.
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We consider NOI to be a meaningful supplemental financial measure of our performance when considered with the financial statements determined in accordance with GAAP. We believe NOI is helpful to investors in understanding the core performance of our real estate operations. The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.
We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store portfolio.
The following table presents a reconciliation of net income (as determined in accordance with GAAP) to NOI for our total portfolio and NOI for our Same Store portfolio for each of the periods indicated:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 157,811 | $ | 136,474 | $ | 535,783 | $ | 442,656 | |||||||||||||||||||||||||||||||||||||||||||||
| Net income available to participating securities | 676 | 264 | 2,059 | 714 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-controlling interests | 602 | 472 | 1,963 | 1,489 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Management fee revenues | (19,889) | (21,975) | (59,479) | (65,677) | |||||||||||||||||||||||||||||||||||||||||||||||||
Homebuilding revenues | (35,849) | — | (129,054) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Property management expense(1) | 39,163 | 37,073 | 116,214 | 109,645 | |||||||||||||||||||||||||||||||||||||||||||||||||
Homebuilding cost of sales | 31,967 | — | 113,316 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative(2) | 34,233 | 18,444 | 95,884 | 71,553 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 92,045 | 90,781 | 281,345 | 262,449 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 195,751 | 188,457 | 583,192 | 557,058 | |||||||||||||||||||||||||||||||||||||||||||||||||
Casualty losses, impairment, and other . . . . . . . . . . . . . . . . | 6,807 | 3,420 | 15,388 | 11,132 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (136,176) | (45,515) | (355,578) | (163,772) | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Income) losses from investments in unconsolidated joint ventures | 32,175 | (2,130) | 37,662 | 7,890 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | 8,660 | — | 8,660 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net(3) | 3,366 | 1,389 | 6,008 | 2,468 | |||||||||||||||||||||||||||||||||||||||||||||||||
| NOI (total portfolio) | 411,342 | 407,154 | 1,253,363 | 1,237,605 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Same Store NOI | (30,703) | (30,582) | (94,444) | (89,443) | |||||||||||||||||||||||||||||||||||||||||||||||||
NOI (Same Store portfolio)(4) | $ | 380,639 | $ | 376,572 | $ | 1,158,919 | $ | 1,148,162 | |||||||||||||||||||||||||||||||||||||||||||||
(1)Includes $1,824 and $1,562 of share-based compensation expense for the three months ended September 30, 2026 and 2025, respectively. Includes $6,089 and $4,779 of share-based compensation expense for the nine months ended September 30, 2026 and 2025, respectively.
(2)Includes $9,638 and $354 of share-based compensation expense for the three months ended September 30, 2026 and 2025, respectively. Includes $25,419 and $15,758 of share-based compensation expense for the nine months ended September 30, 2026 and 2025, respectively.
(3)Includes interest income, non-cash provision for credit losses, net, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
(4)The Same Store portfolio totaled 76,687 homes for the three and nine months ended September 30, 2026.
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Funds from Operations, Core Funds from Operations, and Adjusted Funds from Operations
Funds From Operations (“FFO”), Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization, and impairment of real estate assets, and adjustments for unconsolidated joint ventures.
We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from net income or loss (computed in accordance with GAAP). By excluding depreciation and amortization and gains or losses on sales of real estate, management uses FFO to measure returns on its investments in homes. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the homes that result from use or market conditions nor the level of capital expenditures to maintain the operating performance of the homes, all of which have real economic effect and could materially affect our results from operations, the utility of FFO as a measure of our performance is limited.
Management also believes that FFO, combined with the required GAAP presentations, is useful to investors in providing more meaningful comparisons of the operating performance of a company’s real estate between periods or as compared to other companies. The GAAP measure most directly comparable to FFO is net income or loss. FFO is not used as a measure of our liquidity and should not be considered an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our FFO may not be comparable to the FFO of other companies due to the fact that not all companies use the same definition of FFO. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.
We believe that Core FFO and Adjusted FFO are also meaningful supplemental measures of our operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period. We define Core FFO as FFO adjusted for the following (including adjustments for unconsolidated joint ventures, as applicable): non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; amortization of intangible assets; business reorganization; casualty (gains) losses and reserves, net; (gains) losses on debt extinguishment and modifications; non-cash provision for (reversal of) for credit losses, net; and (gains) losses on investments in equity and other securities, net, as applicable. We define Adjusted FFO as Core FFO less recurring capital expenditures, including adjustments for unconsolidated joint ventures, that are necessary to help preserve the value and maintain the functionality of our homes. The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies.
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The following table presents a reconciliation of net income (as determined in accordance with GAAP) to FFO, Core FFO, and Adjusted FFO for each of the periods indicated:
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| (in thousands, except shares and per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 157,811 | $ | 136,474 | $ | 535,783 | $ | 442,656 | ||||||||||||||||||||||||
| Net income available to participating securities | 676 | 264 | 2,059 | 714 | ||||||||||||||||||||||||||||
| Non-controlling interests | 602 | 472 | 1,963 | 1,489 | ||||||||||||||||||||||||||||
| Depreciation and amortization on real estate assets | 185,136 | 183,653 | 555,459 | 543,775 | ||||||||||||||||||||||||||||
| Impairment on depreciated real estate investments | 796 | 335 | 2,226 | 434 | ||||||||||||||||||||||||||||
| Net gain on sale of previously depreciated investments in real estate | (136,176) | (45,515) | (355,578) | (163,772) | ||||||||||||||||||||||||||||
| Depreciation and net gain on sale of investments in unconsolidated joint ventures | 2,710 | (1,992) | 8,629 | 5,016 | ||||||||||||||||||||||||||||
| FFO | 211,555 | 273,691 | 750,541 | 830,312 | ||||||||||||||||||||||||||||
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives(1) | 5,418 | 9,128 | 23,894 | 18,486 | ||||||||||||||||||||||||||||
Share-based compensation expense(2) | 11,462 | 1,916 | 31,508 | 20,537 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 4,188 | — | 9,298 | — | ||||||||||||||||||||||||||||
Business reorganization(3) | 32,009 | — | 34,789 | 2,420 | ||||||||||||||||||||||||||||
Casualty losses and reserves, net(1) | 6,036 | 3,116 | 13,329 | 10,799 | ||||||||||||||||||||||||||||
| Loss on debt extinguishment and modifications | 8,660 | — | 8,660 | — | ||||||||||||||||||||||||||||
| Non-cash provision for credit losses, net | 3,516 | — | 3,516 | — | ||||||||||||||||||||||||||||
| (Gains) losses on investments in equity and other securities, net | 5 | (380) | 344 | (69) | ||||||||||||||||||||||||||||
| Core FFO | 282,849 | 287,471 | 875,879 | 882,485 | ||||||||||||||||||||||||||||
Recurring capital expenditures(1) | (56,826) | (52,350) | (139,099) | (132,969) | ||||||||||||||||||||||||||||
| Adjusted FFO | $ | 226,023 | $ | 235,121 | $ | 736,780 | $ | 749,516 | ||||||||||||||||||||||||
| Net income available to common stockholders | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding — diluted(4)(5) | 588,534,202 | 613,084,571 | 595,690,705 | 613,237,288 | ||||||||||||||||||||||||||||
Net income per common share — diluted(4)(5) | $ | 0.27 | $ | 0.22 | $ | 0.90 | $ | 0.72 | ||||||||||||||||||||||||
| FFO, Core FFO, and Adjusted FFO | ||||||||||||||||||||||||||||||||
Weighted average common shares and OP Units outstanding — diluted(4)(5) | 591,396,324 | 615,599,540 | 598,386,169 | 615,673,797 | ||||||||||||||||||||||||||||
FFO per common share — diluted(4)(5) | $ | 0.36 | $ | 0.44 | $ | 1.25 | $ | 1.35 | ||||||||||||||||||||||||
Core FFO per common share — diluted(4)(5) | $ | 0.48 | $ | 0.47 | $ | 1.46 | $ | 1.43 | ||||||||||||||||||||||||
AFFO per common share — diluted(4)(5) | $ | 0.38 | $ | 0.38 | $ | 1.23 | $ | 1.22 | ||||||||||||||||||||||||
(1)Includes our share from unconsolidated joint ventures.
(2)For the three months ended September 30, 2026 and 2025, $1,824 and $1,562 was recorded in property management expense, respectively, and $9,638 and $354 was recorded in general and administrative expense, respectively. For the nine months ended September 30, 2026 and 2025, $6,089 and $4,779 was recorded in property management expense, respectively, and $25,419 and $15,758 was recorded in general and administrative expense, respectively.
(3)Includes a $30,411 loss recognized from consolidation of assets and liabilities in connection with the dissolution of our Pathway joint ventures; this loss was recorded in income (losses) from investments in unconsolidated joint ventures. Also includes severance, restructuring, acquisition, and integration costs.
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(4)Incremental shares attributed to non-vested share-based awards totaling 121,643 for the three months ended September 30, 2026, and 148,150 and 265,995 for the nine months ended September 30, 2026 and 2025, respectively, are included in weighted average common shares outstanding in the calculation of net income per common share — diluted. There are no incremental shares attributed to non-vested share-based awards for the three months ended September 30, 2025. For the computations of FFO, Core FFO, and AFFO per common share — diluted, common share equivalents of 787,246 and 415,032 for the three months ended September 30, 2026 and 2025, respectively, and 678,581 and 644,075 for the nine months ended September 30, 2026 and 2025, respectively, related to incremental shares attributed to non-vested share-based awards are included in the denominator.
(5)Vested units of partnership interests in INVH LP (“OP Units”) have been excluded from the computation of net income per common share — diluted for the periods above because all net income attributable to the vested OP Units has been recorded as non-controlling interest and thus excluded from net income available to common stockholders. Weighted average vested OP Units of 2,196,519 and 2,099,937 for the three months ended September 30, 2026 and 2025, respectively, and 2,165,033 and 2,058,429 for the nine months ended September 30, 2026 and 2025, respectively, are included in the denominator for the computations of FFO, Core FFO, and AFFO per common share — diluted.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our future income, cash flows, and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Market risk refers to the risk of loss from adverse changes in interest rates, seasonality, market prices, commodity prices, and inflation. The primary market risks to which we are exposed are interest rate risk and seasonality. We use, and may continue to use, derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings. We enter into such contracts only with major financial institutions based on their credit ratings and other relevant factors.
Interest Rate Risk
A primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, global and United States economic conditions (including uncertainty in financial markets, inflation, elevated interest rates, and evolving trade and tariff policies), geopolitical tensions, and other factors that are beyond our control. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under the Credit Facility. In addition, decreases in interest rates may lead to additional competition for the acquisition of single-family homes, which may lead to future acquisitions being more costly and resulting in lower yields on single-family homes targeted for acquisition. Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to increase rents on expired leases or acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings.
As of September 30, 2026, our $2,960.0 million of outstanding variable-rate debt included $485.0 million on the Revolving Facility and $2,475.0 million on the Term Loan Facilities. Our variable-rate borrowings bear interest at SOFR, as adjusted if appropriate, plus the applicable spread. As of September 30, 2026, we had effectively converted 70.9% of these borrowings to a fixed rate through interest rate swap agreements. Assuming no change in the outstanding balance of our existing debt, the projected effect of a 100 bps increase or decrease in SOFR, collectively, on our annual interest expense would be an estimated increase or decrease of $8.6 million. This estimate considers the impact of our interest rate swap agreements and any Term SOFR floors or minimum interest rates stated in the agreements of the respective borrowings.
This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we may consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.
Inflation
Inflation primarily impacts our results of operations in the form of increased repair and maintenance and other costs and wage pressures. Inflation could also impact our cost of capital as a result of changing interest rates on variable rate debt that is not hedged or if our debt instruments are refinanced in a high-inflation environment. Our resident leases typically have a term of one to two years, which generally enables us to compensate for inflationary effects by increasing rents on our homes to current market rates. Although an extreme or sustained escalation in costs could have a negative impact on our residents and their ability to absorb rent increases, we do not believe this had a material impact on our results of operations for the three and nine months ended September 30, 2026.
Seasonality
Our business and related operating results have been, and we believe will continue to be, impacted by seasonal factors throughout the year. In particular, we have experienced higher levels of resident move-outs during the summer months, which impacts both our rental revenues and related turnover costs. Further, our property operating costs are seasonally impacted in certain markets by increases in expenses such as HVAC repairs and costs to re-resident during the summer season.
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Part II
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We maintain a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. The design of any disclosure controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2026. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2026, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control
There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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ITEM 1. LEGAL PROCEEDINGS
We are not subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us other than routine litigation and administrative proceedings arising in the ordinary course of business.
ITEM 1A. RISK FACTORS
For a discussion of our potential risks or uncertainties, you should carefully read and consider risk factors previously disclosed under Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K. There have been no material changes to the risk factors disclosed in Part I. Item 1A. of the Annual Report on Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Repurchases of Equity Securities
We made the following share repurchases during the three months ended September 30, 2026:
Period | Total Number of Shares Purchased | Average Price Paid Per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan or Program(2) ($ in thousands) | |||||||||||||||||||||||||
| July 1 — July 31, 2026 | — | $ | — | — | $ | 400,000 | |||||||||||||||||||||||
| August 1 — August 31, 2026 | 2,828,151 | 29.67 | 2,828,151 | 316,093 | |||||||||||||||||||||||||
| September 1 — September 30, 2026 | 6,046,752 | 27.47 | 6,046,752 | 150,000 | |||||||||||||||||||||||||
Total | 8,874,903 | $ | 28.17 | 8,874,903 | |||||||||||||||||||||||||
(1)Average Price Paid Per Share excludes cash paid for legal fees and commissions.
(2)On April 27, 2026, our board of directors authorized a new share repurchase program under which we may acquire shares of our common stock through open market purchases or negotiated transactions, including through Rule 10b5-1 plans, up to an aggregate purchase price of $500.0 million (See Part I. Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources”).
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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ITEM 5. OTHER INFORMATION
None.
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EXHIBIT INDEX
Exhibit number | Description | |||||||||||||
| 3.1 | ||||||||||||||
| 3.2 | ||||||||||||||
| 4.1 | ||||||||||||||
22.1 | ||||||||||||||
| 31.1 | ||||||||||||||
| 31.2 | ||||||||||||||
| 32.1 | ||||||||||||||
| 32.2 | ||||||||||||||
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||
| 104 | Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||||||||
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Certain agreements and other documents filed as exhibits to this Quarterly Report on Form 10-Q contain representations and warranties that the parties thereto made to each other. These representations and warranties have been made solely for the benefit of the other parties to such agreements and may have been qualified by certain information that has been disclosed to the other parties to such agreements and other documents and that may not be reflected in such agreements and other documents. In addition, these representations and warranties may be intended as a way of allocating risks among parties if the statements contained therein prove to be incorrect, rather than as actual statements of fact. Accordingly, there can be no reliance on any such representations and warranties as characterizations of the actual state of facts. Moreover, information concerning the subject matter of any such representations and warranties may have changed since the date of such agreements or other documents.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Invitation Homes Inc. | |||||
| By: | /s/ Jonathan S. Olsen | ||||
| Name: Jonathan S. Olsen | |||||
| Title: Executive Vice President and Chief Financial Officer | |||||
| (Principal Financial Officer) | |||||
| Date: October 29, 2026 | |||||
| By: | /s/ Kimberly K. Norrell | ||||
| Name: Kimberly K. Norrell | |||||
| Title: Executive Vice President and Chief Accounting Officer | |||||
| (Principal Accounting Officer) | |||||
| Date: October 29, 2026 | |||||
Exhibit 22.1
Subsidiary Issuer and Guarantors of Guaranteed Securities
As of September 30, 2026, Invitation Homes Operating Partnership LP (the “Issuer”), the principal operating subsidiary of Invitation Homes Inc. (the “Company”), has issued the following debt securities under a registration statement on Form S-3, filed with the Securities and Exchange Commission, which securities are fully and unconditionally guaranteed by the Company, Invitation Homes OP GP LLC, the sole general partner of the Issuer and a wholly-owned subsidiary of the Company, and IH Merger Sub, LLC, a wholly-owned subsidiary of the Company.
| Issuer | Notes | Guarantors | ||||||
| Invitation Homes Operating Partnership LP | 2.000% Senior Notes due 2031 | Invitation Homes Inc. | ||||||
| 2.300% Senior Notes due 2028 | Invitation Homes OP GP LLC | |||||||
| 2.700% Senior Notes due 2034 | IH Merger Sub, LLC | |||||||
| 4.150% Senior Notes due 2032 | ||||||||
| 5.450% Senior Notes due 2030 | ||||||||
| 5.500% Senior Notes due 2033 | ||||||||
| 4.875% Senior Notes due 2035 | ||||||||
| 4.950% Senior Notes due 2033 | ||||||||
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Dallas B. Tanner, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Invitation Homes Inc. for the quarterly period ended September 30, 2026;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| By: | /s/ Dallas B. Tanner | ||||
| Dallas B. Tanner | |||||
| President and Chief Executive Officer | |||||
| (Principal Executive Officer) | |||||
| October 29, 2026 | |||||
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Jonathan S. Olsen, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Invitation Homes Inc. for the quarterly period ended September 30, 2026;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| By: | /s/ Jonathan S. Olsen | ||||
| Jonathan S. Olsen | |||||
| Chief Financial Officer | |||||
| (Principal Financial Officer) | |||||
| October 29, 2026 | |||||
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Invitation Homes Inc. (the “Company”) for the quarterly period ended September 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dallas B. Tanner, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| By: | /s/ Dallas B. Tanner | ||||
| Dallas B. Tanner | |||||
| President and Chief Executive Officer | |||||
| (Principal Executive Officer) | |||||
| October 29, 2026 | |||||
A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Invitation Homes Inc. (the “Company”) for the quarterly period ended September 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jonathan S. Olsen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| By: | /s/ Jonathan S. Olsen | ||||
| Jonathan S. Olsen | |||||
| Chief Financial Officer | |||||
| (Principal Financial Officer) | |||||
| October 29, 2026 | |||||
A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.