Invitation Homes' Q2 2026 net income rose 55% to $218M on $132M of home-sale gains, while same-store NOI grew just 1.5% and buybacks lifted Core FFO per share 5.0% to $0.51.
Revenue
$748M
+9.7% YoY
Net income
$218M
+55.1% YoY
Diluted EPS
$0.37
+60.9% YoY
Overview
Invitation Homes, the largest US landlord of single-family rental homes (85,509 wholly owned homes at June 30, 2026), reported second-quarter 2026 results that look much stronger on the surface than underneath. Total revenue rose 9.7% to $747.6 million and net income available to common stockholders jumped 55.1% to $218.2 million, or $0.37 per diluted share. But most of that came from two things that are not the core rental business: $49.5 million of revenue from ResiBuilt, a homebuilder it bought on January 14, 2026, and a $132.3 million gain from selling homes (versus $46.6 million a year earlier).
The rental business itself grew slowly. On homes owned for the full comparison period (the "same store" portfolio of 77,326 homes), core revenue rose 1.6% and net operating income (NOI — rent and fees collected minus the direct costs of running the homes, such as property taxes, insurance and repairs) rose 1.5%. Core FFO per share — the REIT industry's standard measure of recurring cash earnings, which strips out depreciation and gains on property sales — rose 5.0% to $0.51, helped substantially by a lower share count after buybacks.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Total revenues
$747.6M
$681.4M
+9.7%
– of which homebuilding revenue (ResiBuilt)
$49.5M
—
new
Rental revenues
$603.0M
$592.5M
+1.8%
Net income available to common stockholders
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Core FFO and AFFO growth rates are the company's own, calculated on unrounded figures. AFFO ("adjusted" FFO) further subtracts the recurring capital spending needed to keep homes rentable.
Takeaway: The 55% jump in GAAP profit is almost entirely home-sale gains. Strip out the $132.3 million gain and net income fell from about $94.8 million to $87.3 million. Even the healthier-looking 5.0% Core FFO per share growth is mostly a share-count effect: total Core FFO dollars rose only 1.5% ($301.2M vs. $296.7M), while the diluted share count fell 3.4% because the company has been selling homes and using the money to buy back its own stock.
Rents: still rising, but more slowly
Rent growth on signed leases (measured by comparing a new lease's rent to the previous lease on the same home) slowed across the board from a year ago:
Renewals (existing residents staying on): +3.3%, down from +4.7%.
New leases (a new resident moving in): +1.1%, down from +2.1%. The first half averaged −1.1%, meaning first-quarter new leases were signed below the prior rent before improving in the spring. CEO Dallas Tanner said new-lease rent growth "accelerated every month through June."
Blended: +2.7%, down from +4.0%.
Average monthly rent on same-store occupied homes rose 2.0% to $2,480. That was partly offset by occupancy slipping 20 basis points to 97.1%. The 10-Q is specific about why: homes sat empty for an average of 46 days between residents, up from 40 days a year earlier — so while fewer residents moved out (annualized turnover fell to 22.8% from 24.6%), each vacant home took longer to re-lease. Bad debt (rent that goes uncollected) held steady at 0.6% of gross rent.
Costs: property tax and HOA up, insurance and utilities down
Same-store core operating expenses rose 1.9% to $185.0 million, a much gentler pace than the 3.7% rise for the first half as a whole.
Same-store expense
Q2 2026
Q2 2025
YoY
Property taxes
$101.0M
$97.5M
+3.6%
Insurance
$9.0M
$9.8M
−8.0%
HOA fees
$11.3M
$9.9M
+14.1%
Repairs and maintenance
$26.9M
$25.8M
+4.2%
Turnover costs
$10.4M
$9.7M
+7.5%
Utilities and property administrative (net of resident recoveries)
$6.5M
$8.4M
−22.2%
Personnel, leasing and marketing
$19.9M
$20.5M
−2.9%
"Fixed" costs the company can't easily control (taxes, insurance, HOA) rose 3.5%, while "controllable" costs fell 1.0%, mainly on lower utilities and staffing expense. That kept same-store NOI growth (+1.5%) roughly in line with revenue growth rather than below it — a reversal from the first quarter, when expenses outran revenue.
Below the property level: homebuilding, interest and overhead
ResiBuilt (homebuilding): $49.5 million of revenue against $42.2 million of cost of sales, a gross profit of about $7.2 million (a 14.6% gross margin). It lifts the revenue line far more than it lifts profit.
Interest expense rose 7.5% to $94.0 million, which the 10-Q attributes to $339.8 million more gross debt outstanding, partly offset by a 6 basis-point lower weighted average interest rate.
Property management plus general and administrative expense rose to $67.1 million from $59.4 million, which the company attributes to personnel and other costs of the new homebuilding platform and general salary increases. G&A alone rose 24% to $29.3 million.
Management fee revenue from homes it manages for others fell 11.5% to $19.7 million, because fewer managed homes were sold (disposition fees are lower) and the managed portfolio shrank.
Selling homes to fund buybacks
The company sold 657 wholly owned homes in the quarter (versus 295 a year earlier), "many to families purchasing for their own use," for about $309 million, and bought 196 homes for about $74 million. It used the proceeds to repurchase 3.48 million shares for about $100 million and to pay down debt that had funded first-quarter buybacks. Since December 2025 it has bought back 22.8 million shares for about $600 million. Shares outstanding fell to 590.6 million from 610.8 million at year-end.
Balance sheet: total debt of $8.59 billion, 92.4% fixed-rate or swapped to fixed; net debt was 5.4x trailing adjusted EBITDAre (a leverage measure comparing debt to annual cash earnings), below its 5.5x–6.0x target range; available liquidity $1.55 billion. After quarter-end, on July 8, it issued $500 million of 4.95% senior notes due 2032 and on July 9 used the proceeds to prepay $488 million of secured debt, paying a $4.9 million prepayment premium.
The revenue guidance assumes full-year same-store occupancy of 96.0%–96.6% and bad debt of 60–80 basis points.
Our read: The guidance itself tells the story. Same-store NOI is expected to grow about 1% this year, yet Core FFO per share is guided up only modestly, and the company raised its planned home sales by $300 million at the midpoint. Invitation Homes is increasingly growing per-share earnings by shrinking — selling homes at gains and retiring stock — rather than by squeezing more out of its rentals. That works while home-sale prices hold and the stock trades cheaply relative to the homes' value, but it is not a substitute for rent growth. The number to watch next quarter is new-lease rent growth: if the spring improvement continues, same-store revenue can move toward the top of its range; the full-year occupancy assumption (96.0%–96.6%, below both the 97.1% just reported and the 96.7% first-half average) implies management expects occupancy to dip in the second half.