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The call highlighted multiple operational and financial strengths: improving occupancy and leasing momentum into peak season, positive renewal rent growth, strong disposition execution enabling aggressive share buybacks, a solid balance sheet and liquidity position, and rapid integration of the ResiBuilt platform. Offsetting these positives were short-term pressures including negative new-lease growth in Q1 (improving in April), elevated year-over-year expense comparisons, a slight decline in same-store NOI and AFFO per share, and a materially reduced forward pipeline alongside legislative uncertainty that has led to a cautious stance on acquisitions and some delays. Overall, the company emphasized resilience, disciplined capital allocation, and cautious optimism as leasing trends improve.
Management reiterated the full-year outlook given in February, reaffirming full‑year expense guidance of 3–4% while noting Q1 operating and balance‑sheet metrics: same‑store core revenue +1.6% YoY, same‑store NOI -0.3%, renewal rent +3.7%, new‑lease rent -3.0% (Q1 blended +1.6%), average Q1 occupancy 96.3% (April 97.1%), April blended rent +2.3% (renewals low‑3% range; new leases ~+0.5%), bad debt 60 bps, core FFO/share roughly flat and AFFO/share -2.6%; liquidity $1.3B, total indebtedness ~$8.9B, net debt/adjusted EBITDA 5.6x (target 5.5–6x), 89.5% fixed/swapped debt, ~90% homes unencumbered. Capital allocation actions that inform guidance include dispositions of 483 homes for $206M (pro‑forma stabilized cap rates low‑4s), Q1 repurchases of ~17M shares for ~$439M (over 19M shares retired at $25.86 avg) completing the $500M buyback and a new $500M authorization, forward pipeline just over $200M, ResiBuilt delivering 300+ homes, and $279M construction‑lending commitments (≈$20M funded); management expects year‑over‑year expense comparisons to normalize and will update outlook after most of peak leasing season.
Average same-store occupancy accelerated to 96.3% in Q1 and improved month-over-month to 97.1% in April (an ~80 bps increase from Q1), with occupancy climbing each month during the quarter and entering peak leasing season with improving momentum.
Renewal rent growth was +3.7% (Q1), and new lease rent growth, which was negative in Q1, returned to positive in April (just under +0.5%). This drove April blended rent growth to ~+2.3% and represented a ~230 bps acceleration in new-lease growth from March to April.
Same-store core revenue increased +1.6% year-over-year in Q1 despite tough comps and normalization from 2025 highs.
Bad debt remained low and stable at 60 basis points (flat YoY). Same-store average resident tenure exceeded 40 months and resident renewals remained very high at over 78%.
Completed the full $500 million share repurchase authorization, buying ~17 million shares for ~$439 million in Q1 (totaling >19 million shares retired at an average price of $25.86). The Board authorized a new $500 million repurchase program.
Sold 483 wholly owned homes for $206 million in Q1, with sales beating underwriting, days on market better than expected, and pro forma stabilized cap rates in the low-4% range. Average sale price this quarter was ~$427,000 per home.
Available liquidity of ~$1.3 billion (cash + undrawn revolver) and total indebtedness of ~$8.9 billion. Net debt to adjusted EBITDA was 5.6x, inside the long-term target of 5.5–6.0x; ~89.5% of debt fixed or swapped to fixed-rate and ~90% of wholly owned homes unencumbered.
ResiBuilt integration advanced rapidly post-acquisition: delivered >300 homes to third-party buyers in the quarter. Construction lending commitments grew to $279 million (with just under $20 million funded so far), providing a capital-efficient way to add supply.
Welcome to the Invitation Homes Inc. First Quarter 2026 Earnings Conference Call. All participants are in listen-only mode at this time. As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good morning. Joining me today from Invitation Homes Inc. are Dallas Tanner, our President and Chief Executive Officer; Tim Lobner, our Chief Operating Officer; Jonathan S. Olsen, our Chief Financial Officer; and Scott Eisen, our Chief Investment Officer. Following our prepared remarks, we will open the line for questions from our covering sell-side analysts. During today's call, we may reference our first quarter 2026 earnings release and supplemental information. We issued this document yesterday afternoon after the market closed, and it is available on the Investor Relations section of our website at invh.com. Certain statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other nonhistorical statements, which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated.
We describe some of these risks and uncertainties in our 2025 Annual Report on Form 10-K and other filings we make with the SEC from time to time. Except to the extent otherwise required by law, we do not update forward-looking statements and expressly disclaim any obligati...