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What changed in Invitation Homes's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Invitation Homes's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+470 added−454 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-27)

Top changes in Invitation Homes's 2025 10-K

470 paragraphs added · 454 removed · 353 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

73 edited+26 added−10 removed99 unchanged
Biggest changeWe recognize the value of providing regular development opportunities for our associates that improve their capability to succeed in their current roles and achieve career growth to meet their aspirations. Growing People for Success is our fully integrated talent cycle that incorporates our performance and feedback process, career growth and development, and leadership behaviors model.
Biggest changeIn 2025 , we were recognized by Comparably for our company culture through several external awards, including Best Companies for Diversity and Best Companies for Women. We recognize the value of providing regular development opportunities for our associates that improve their capability to succeed in their current roles and achieve career growth to meet their aspirations.
If a deficiency is identified by our in-house property maintenance associates we endeavor to take prompt action to correct it. 11 Investment and Asset Management Acquisition Strategy We have a disciplined acquisition platform that is capable of deploying capital from multiple capital sources, including our own balance sheet and joint ventures that we manage, across multiple acquisition channels and markets simultaneously.
If a deficiency is identified by our in-house property maintenance associates, we endeavor to take prompt action to correct it. Investment and Asset Management Acquisition Strategy We have a disciplined acquisition platform that is capable of deploying capital from multiple capital sources, including our own balance sheet and joint ventures that we manage, across multiple acquisition channels and markets simultaneously.
We believe that ethical business practices and good governance promote the long-term interests of our stockholders, strengthen the board of directors and management accountability, and improve our standing as a trusted member of the communities we serve. We believe it is critically important to maintain a corporate culture that demands integrity and reflects our ethical values.
We believe that ethical business practices and good 15 governance promote the long-term interests of our stockholders, strengthen the board of directors and management accountability, and improve our standing as a trusted member of the communities we serve. We believe it is critically important to maintain a corporate culture that demands integrity and reflects our ethical values.
To identify investment and acquisition opportunities, we engage with local market real estate brokers, homebuilders, and strategic third-party technology platforms. Within our markets, our approach allows us to screen broadly and rapidly to identify potential acquisitions in highly targeted submarkets at the neighborhood and street levels.
To identify investment opportunities, we engage with local market real estate brokers, homebuilders, and strategic third-party technology platforms. Within our markets, our approach allows us to screen broadly and rapidly to identify potential acquisitions in highly targeted submarkets at the neighborhood and street levels.
Our differentiated approach, which combines a resident-centric focus, local market presence and expertise, and national strategy, infrastructure, technology-enabled workflows, and standards, informs all areas of our operations. Property Operations Property operations encompasses the in-house local market management and execution of marketing, leasing, resident relations, and maintenance functions.
Our differentiated approach, which combines a resident-centric focus, local market presence and expertise, and national strategy, infrastructure, technology-enabled workflows, and standards, informs all areas of our operations. 9 Property Operations Property operations encompasses the in-house local market management and execution of marketing, leasing, resident relations, and maintenance functions.
In addition, these visits allow our in-house property maintenance associates to begin preparing a scope of work and budget for the turnover work we undertake between residents to prepare our homes to be re-leased to a new resident. These visits also improve our ability to pre-market our homes.
In addition, 11 these visits allow our in-house property maintenance associates to begin preparing a scope of work and budget for the turnover work we undertake between residents to prepare our homes to be re-leased to a new resident. These visits also improve our ability to pre-market our homes.
Sustainability and Corporate Responsibility As one of the nation’s premier home leasing companies, we have an opportunity to make a profound impact through sustainability and corporate responsibility initiatives. We are committed to engaging with our communities to make meaningful and long-lasting impacts on those around us.
Sustainability and Corporate Responsibility As one of the nation’s premier home leasing and management companies, we have an opportunity to make a profound impact through sustainability and corporate responsibility initiatives. We are committed to engaging with our communities to make meaningful and long-lasting impacts on those around us.
Our primary competitors in acquiring portfolios include large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors may also compete with us for residents and may provide 16 property and asset management services similar to those that we provide.
Our primary competitors in acquiring portfolios include large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors may also compete with us for residents and may provide property and asset management services similar to those that we provide.
For example, the California Consumer Privacy Act of 2018 (“CCPA”), which came into effect on January 1, 2020, as amended by the California Privacy Rights Act (“CPRA”), which became effective on January 1, 2023, governs the collection, use, disclosure, and security of information about California residents.
For example, the California Consumer Privacy Act of 2018 (“CCPA”), which came into effect on January 1, 2020, as amended by the California Privacy 19 Rights Act (“CPRA”), which became effective on January 1, 2023, governs the collection, use, disclosure, and security of information about California residents.
Our high-touch business model enables us to continuously solicit and integrate resident feedback into our operations and tailor our approach to address their preferences, providing a superior living experience and fostering customer loyalty.
Our high-touch business model enables us to solicit and integrate resident feedback into our operations and tailor our approach to address their preferences, providing a superior living experience and fostering customer loyalty.
The ease of leasing through our technology, the Genuine Care from our teams, and our exceptional value-add services help our residents live the worry-free leasing lifestyle.
The ease of leasing through our technology, the Genuine CARE TM from our teams, and our exceptional value-add services help our residents live the worry-free leasing lifestyle.
“Risk Factors — Risks Related to Information Technology, Cybersecurity, and Data 18 Protection — Our business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters.
“Risk Factors — Risks Related to Information Technology, Cybersecurity, and Data Protection — Our business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters.
We train our associates on a regular basis regarding such laws and regulations and we believe that our properties are in substantial compliance with the FHA and other such regulations. 17 Municipal Regulations and Homeowners’ Associations Our properties are subject to various municipal regulations and orders, and county and city ordinances, including without limitation, use, operation and maintenance of our properties.
We train our associates on a regular basis regarding such laws and regulations and we believe that our properties are in substantial compliance with the FHA and other such regulations. 18 Municipal Regulations and Homeowners’ Associations Our properties are subject to various municipal regulations and orders, and county and city ordinances, including without limitation, use, operation and maintenance of our properties.
See Part I. Item 1A. “Risk Factors — Risks Related to Our Business and Operations — Increasing property taxes, insurance costs, and HOA fees may negatively affect our financial results” and We may suffer losses that are not covered by insurance. ” Systems and Technology Effective systems and technology are essential components of our business.
See Part I. Item 1A. “Risk Factors — Risks Related to Our Business and Operations — Increasing property taxes, insurance costs, and HOA fees may negatively affect our financial results and — We may suffer losses that are not covered by insurance. ” Systems and Technology Effective systems and technology are essential components of our business.
Our associates are able to support and manage requests for critical functions such as leasing and maintenance through easy-to-use digital tools. Our system is designed to handle the core requirements of residential property accounting, including accounting for security deposits as well as payment of property-level expenses.
Our associates are able to support and manage requests for critical functions such as leasing and maintenance through easy-to-use digital tools and AI services. Our system is designed to handle the core requirements of residential property accounting, including accounting for security deposits as well as payment of property-level expenses.
We are equally dedicated to upholding the ethical standards and responsible business practices that are integral to our culture. 13 We focus on ensuring that our residents live in high-quality homes and enjoy a worry-free leasing lifestyle, with access to professional services and Genuine Care.
We are equally dedicated to upholding the ethical standards and responsible business practices that are integral to our culture. We focus on ensuring that our residents live in high-quality homes and enjoy a worry-free leasing lifestyle, with access to professional services and Genuine CARE TM .
Our resident engagement and social following 10 continue to grow, owing partially to positive feedback from residents, who specifically mention our lifestyle and home maintenance content. Resident Relations and Property Maintenance The associates in each of our markets are responsible for property repairs and maintenance, as well as resident relations.
Our resident engagement and social media following continue to grow, owing partially to positive feedback from residents, who specifically mention our lifestyle and home maintenance content. Resident Relations and Property Maintenance The associates in each of our markets are responsible for property repairs and maintenance, as well as resident relations.
To comply with REIT requirements, we may need to forego otherwise attractive opportunities and limit our expansion opportunities and the manner in which we conduct our operations. Website and Availability of SEC filings We file annual, quarterly, and current reports, proxy statements, and other information with the SEC.
To comply with REIT requirements, we may need to forgo otherwise attractive opportunities and limit our expansion opportunities and the manner in which we conduct our operations. Website and Availability of SEC filings We file annual, quarterly, and current reports, proxy statements, and other information with the SEC.
We believe the significant local density of our portfolio, which averages approximately 5,000 homes in each of our core markets as of December 31, 2024, allows us to selectively sell properties without sacrificing the operating efficiency of our concentrated scale.
We believe the significant local density of our portfolio, which averages approximately 5,000 homes in each of our core markets as of December 31, 2025, allows us to selectively sell properties without sacrificing the operating efficiency of our concentrated scale.
Our SEC filings are available to the public over the Internet at the SEC’s website at https://www.sec.gov.
Our SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov.
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 year ended December 31, 2024.
Although an extreme or sustained escalation in costs could have a negative impact on our residents 17 and their ability to absorb rent increases, we do not believe this had a material impact on our results of operations for the year ended December 31, 2025.
The contents of our website and social media channels are not, however, a part of this Annual Report on Form 10-K and are not incorporated by reference herein.
The contents of our website and social media channels are not a part of this Annual Report on Form 10-K and are not incorporated by reference herein. 20
To maintain brand consistency and better track compliance with leasing requirements, we utilize standardized online applications, national lease agreements, move-in and move-out documents, resident communications, and other ancillary documents. Multiple channels are utilized to communicate with prospective residents, including automated email and texts, associate correspondence, and the new addition of an AI leasing assistant.
To maintain brand consistency and better track compliance with leasing requirements, we utilize standardized online applications, national lease agreements, move-in and move-out documents, resident communications, and other ancillary documents. Multiple channels are utilized to communicate with prospective residents, including automated email and texts, associate correspondence, and an AI leasing assistant.
We also believe our business has a positive economic impact on the communities in which we operate, through improved neighborhoods that benefit from our home renovations, the value of our local teams living in and contributing to the local economy, the payment of real estate taxes, and the purchase of local goods and services.
We also believe our business has a positive economic impact on the communities in which we operate, through improved neighborhoods that benefit from renovations to and ongoing maintenance of our homes, the value of our local teams living in and contributing to the local economy, the payment of real estate taxes, and the purchase of local goods and services.
We similarly believe that employing experienced, in-house acquisitions teams at the local level gives us a competitive advantage in selectively acquiring homes that will maximize risk-adjusted total return.
We similarly believe that employing experienced, in-house acquisitions and development teams at the local level gives us a competitive advantage in selectively acquiring and building homes that will maximize risk-adjusted total return.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Climate Change.” Human Capital As of December 31, 2024, we had 1,750 dedicated full-time associates, which we supplement with temporary and contract resources as needed. None of our associates are covered by a collective bargaining agreement.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Climate Change.” 14 Human Capital As of December 31, 2025, we had 1,725 dedicated full-time associates, which we supplement with temporary and contract resources as needed. None of our associates are covered by a collective bargaining agreement.
We are committed to operating at the highest ethical level and serving as a responsible fiduciary for our stockholders. We are committed to exercising and maintaining strong corporate governance practices, while integrating corporate responsibility and sustainability considerations into our decision-making processes.
We are committed to operating at the highest ethical level and serving as a responsible fiduciary for our stockholders. We exercise and maintain strong corporate governance practices, while integrating corporate responsibility and sustainability considerations into our decision-making processes.
For example, we alert our residents to prepare for storms, encourage them to pay their rent online, offer “Lease Friendly” and “Make It Home” design tips and giveaways, and hold an annual Resident Appreciation Month.
For example, we alert our residents to prepare for storms, encourage them to pay their rent online or through our mobile app, offer “Lease Friendly” and “Make It Home” design tips and giveaways, and hold an annual Resident Appreciation Month.
Through the integration of investment, property management, and asset management functions, our platform enables our teams to incorporate real-time information regarding leasing activity, property operations, maintenance, and capital spending into asset selection and asset management.
Through the integration of investment, property management, asset management, and now land development and construction functions, our platform enables our teams to incorporate real-time information regarding leasing activity, property operations, maintenance, capital spending, and construction into asset selection and asset management.
The Code of Conduct articulates these tenets and sets forth our principles, expectations, and guidelines for appropriate business behavior. Code of Conduct Our Code of Conduct is supported by company wide policies and programs and reinforced through regular associate training. Honesty and integrity are essential in our daily interactions with residents, fellow associates, vendors, suppliers, and other stakeholders.
The Code of Conduct articulates these tenets and sets forth our principles, expectations, and guidelines for appropriate business behavior. Code of Conduct Our Code of Conduct is supported by companywide policies and programs and reinforced through annual associate training and acknowledgement. Honesty and integrity are essential in our daily interactions with residents, fellow associates, vendors, suppliers, and other stakeholders.
The system also interfaces with our third-party resident screening vendors to expedite evaluations of prospective residents’ rental applications. Throughout our operations, we rely on technology systems that integrate with various third-party vendors and service providers. The failure of these systems or services to perform at subscribed levels could adversely impact our business.
The system also interfaces with our third-party resident screening vendors to expedite evaluations of prospective residents’ rental applications. Throughout our operations, we rely on technology systems that integrate with various third-party vendors, including their AI services. The failure of these systems or services to perform at subscribed levels could adversely impact our business.
New incidents are reported and evaluated for corrective action, and through continuous investment in health and safety, we strive to mitigate the risk of on-the-job injuries. Our 2024 incident rate was 3.39, compared to 3.39 in 2023 and 3.49 in 2022.
New incidents are reported and evaluated for corrective action, and through continuous investment in health and safety, we strive to mitigate the risk of on-the-job injuries. Our 2025 incident rate was 3.07, compared to 3.39 in both 2024 and 2023.
In evaluating acquisitions, we analyze numerous factors, including neighborhood desirability, proximity to employment centers, schools, and transportation corridors, community amenities, construction type, and required ongoing capital needs, among others.
In evaluating acquisition and development opportunities, we analyze numerous factors, including neighborhood desirability, proximity to employment centers, schools, and transportation corridors, community amenities, construction type, and required ongoing capital needs, among others.
To ensure scalability for continued growth of our portfolio of single-family homes for lease and our third-party management platform, we have made significant investments in various processes and systems including lease and property management, construction management, property and corporate accounting, asset management and data analysis.
To ensure scalability for continued growth of our portfolio of single-family homes for lease and our third-party management platform, we have made significant investments in processes and systems across leasing and property management, construction management, property and 16 corporate accounting, asset management, and data analysis.
We believe meaningful actions based on associate feedback provided by the surveys have resulted, and will continue to result, in ongoing high engagement with our associates as evidenced by our strong associate Net Promoter Score of 60 at the end of 2024, compared to a benchmark of 33.
We believe meaningful actions based on associate feedback provided by the surveys have resulted, and will continue to result, in ongoing high engagement with our associates as evidenced by our strong associate Net Promoter Score of 47 at the end of 2025, compared to a benchmark of 29.
We typically utilize our in-house maintenance associates in each of our markets to provide ordinary course, “handyman” services, and outsource more complex or extensive repairs, such as roofing, heating, ventilation, and air conditioning (“HVAC”) systems, plumbing, and electrical work to vetted, pre-approved third-party vendor partners.
We typically utilize our in-house maintenance associates in each of our markets to provide ordinary course, “handyman” services, and outsource more complex or extensive repairs, such as roofing, heating, ventilation, and air conditioning (“HVAC”) systems, plumbing, and electrical work to vetted, pre-approved third-party vendor partners. We strive to address and resolve maintenance requests primarily through our in-house maintenance technicians.
We believe our competitors in acquiring properties for investment purposes are larger investors, including private equity funds and other REITs, that are seeking to capitalize on the same market opportunity that we have identified, individual investors, and small private investment partnerships looking for one-off acquisitions of investment properties that can either be leased or restored and sold.
We believe our competitors in acquiring or building homes for investment purposes are larger investors, including private equity funds and other REITs, that are seeking to capitalize on the same market opportunity that we have identified, and individual investors or small private investment partnerships, that are seeking investment properties that can either be leased or restored and sold.
We also place a strong emphasis on the impact we have in our communities and to the environment in general, and we continue to develop programs that demonstrate those commitments. In addition, we ensure that we operate under strong, well-defined governance practices and adhere to the highest ethical standards at all times.
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.
Accordingly, investors should monitor the website, in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Invitation Homes when you enroll your email address by visiting the Email Notification section at INVH.com under the Investor Resources tab.
Accordingly, investors should monitor the website, in addition to following our press releases, SEC filings, and public conference calls and webcasts. 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 INVH.com.
Our Code of Conduct provides that “neither our company, nor any director, officer, employee, contractor, subcontractor, or agent of the company will, directly or indirectly, discharge, demote, suspend, threaten, harass, or in any manner discriminate or retaliate against any person who, in good faith, makes a report or assists in investigating a report.” 15 Vendor Practices We have adopted a Vendor Code of Conduct that extends our values to company vendors and highlights our commitment to ethical business practices, fair and safe labor conditions, the protection of human rights, sustainability, and regulatory compliance.
Our Code of Conduct provides that “[n]either the Company, the Audit Committee nor any director, officer, employee, contractor, subcontractor or agent of the Company will, directly or indirectly, discharge, demote, suspend, threaten, harass or in any manner discriminate or retaliate against any person who, in good faith, makes a report to or otherwise assists the Audit Committee, management or any other person or group, including any governmental, regulatory or law enforcement body, in investigating a report.” Vendor Practices We have adopted a Vendor Code of Conduct that extends our values to company vendors and highlights our commitment to ethical business practices, fair and safe labor conditions, the protection of human rights, sustainability, and regulatory compliance.
We believe the advantages of our integrated acquisition platform and local market expertise drive the performance of our existing total portfolio of 85,138 owned homes as of December 31, 2024, as well as the portfolio of homes we jointly own with or manage on behalf of others.
We believe the advantages of our integrated acquisition and development platform and local market expertise drive the performance of our existing portfolio of owned homes, as well as the portfolio of homes we jointly own with or manage on behalf of others.
We have developed and employ a highly scalable, vertically integrated, and resident-centric property management service platform, referred to as “ProCare.” All of our property management functions have been internally managed since our founding in 2012, and we have implemented an extensive property management infrastructure, including an online resident portal, smart home technology, a mobile app for residents to schedule and track maintenance requests, a technology suite to manage work orders and associate schedules, dedicated in-market associates, and local offices in each of our core markets. 9 We have organized our property management associates and operating structure such that Vice Presidents of Operations in each of our core markets are responsible for the operations of local leasing, property management, and maintenance teams.
We have developed and employ a highly scalable, vertically integrated, and resident-centric property management service platform, referred to as “ProCare.” All of our property management functions have been internally managed since our founding in 2012, and we have implemented an extensive property management infrastructure, including a resident portal that is available both online and via a mobile app, smart home technology, a mobile app for residents to schedule and track maintenance requests, a technology suite to manage work orders and associate schedules, dedicated in-market associates, and local offices in each of our core markets.
In 2024 , we facilitated the third cohort of “Peak,” an immersive six-month leadership development program for 25 high potential leaders. We also launched “Spark,” the next level leadership program focused on emerging leaders. In addition, we offered customized talent management solutions, including Stand Out assessments, leadership assimilations, team building activities, and more.
In 2025 , we facilitated the third cohort of “Peak,” an immersive six-month leadership development program for 22 high potential leaders. We also host “Spark,” the next level leadership program focused on emerging leaders, on a biennial basis. In addition, we offer customized talent management solutions, including Stand Out assessments, leadership assimilations, team building activities, and more.
We support fair access to opportunities through our hiring practices and are committed to fair practices that ensure a level playing field for all associates. The investment in our people is directly linked to our strategic business initiatives and measured by those outcomes. We value feedback from our associates, and we maintain a continuous listening associate survey tool, Our Family.
We support fair access to opportunities through our hiring practices and are committed to fair practices that ensure a level playing field for all associates. The investment in our people is directly linked to our strategic business initiatives and measured by those outcomes.
We target submarkets and neighborhoods in undersupplied high-growth markets and leverage our in-house acquisition and operations teams’ local market expertise to acquire homes in desirable locations that we believe will experience above average rental rate growth and home price appreciation.
We target submarkets and neighborhoods in undersupplied high-growth markets and leverage our in-house acquisition, development, and operations teams’ local market expertise to acquire homes in desirable locations that we believe will experience sustainable rental demand and long-term value and home price appreciation.
In addition to carefully monitoring our core platform, we consistently advance cloud-based digital technologies to benefit both our residents and our associates. We offer choice and control to our prospective and existing residents by providing a mobile-responsive website, an iOS app, and an Android app to engage with us.
In addition to carefully monitoring our core platform, we consistently advance cloud-based digital technologies and the pragmatic use of AI to benefit both our residents and our associates. We offer choice, control, and engagement options to our prospective and existing residents by providing a mobile-responsive website, an iOS app, and an Android app.
These homes help meet the needs of a growing share of Americans who prefer the ease of a leasing lifestyle over the burden of owning a home. We provide our residents access to updated homes with features they value, as well as close proximity to jobs and access to good schools.
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.
On a national level we are also able to standardize resident leases, employ a consistent approach to resident screening and leasing operations, and utilize a tailored pricing tool that analyzes publicly available data to reflect local market conditions. Our approach to investment and asset management similarly combines local presence and expertise with national oversight.
On a national level we are also able to standardize resident leases, employ a consistent approach to resident screening and leasing operations, and utilize a tailored pricing tool that analyzes publicly available data to reflect local market conditions.
As of December 31, 2024, INVH owns a 99.7% partnership interest in INVH LP and has the full, exclusive, and complete responsibility for and discretion over the day-to-day management and control of INVH LP. 8 Our principal executive offices are located at 5420 LBJ Freeway, Suite 600, Dallas, Texas 75240, and our telephone number is (972) 421-3600.
As of December 31, 2025, INVH owns 99.7% of INVH LP 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. 8 Our principal executive offices are located at 5420 LBJ Freeway, Suite 600, Dallas, Texas 75240, and our telephone number is (972) 421-3600.
Our in-house acquisition teams are comprised of dedicated professionals located in our markets and at our corporate headquarters who provide strategic direction and broad oversight. Our acquisition teams have significant local market experience and expertise in single-family investments and sales, which enables us to target specific submarkets, neighborhoods, individual streets, and homes that meet our selection and underwriting criteria.
Our in-house teams are comprised of dedicated professionals located in our markets and at our corporate headquarters who provide strategic direction and broad oversight. The teams also have significant local market experience and expertise in single-family investments and sales, which enable us to perform neighborhood-level analysis and identify homes that meet our selection and underwriting criteria.
Our in-house team of acquisition professionals coordinates with our in-house renovation, maintenance, and property management teams to ensure that feedback from historical acquisitions is shared across functions so that our ongoing investment activities are informed by, and benefit from, insight from prior experience.
Our in-house team of acquisition professionals coordinates with our in-house renovation, maintenance, and property management teams to ensure that feedback from historical acquisitions is shared across functions so that our ongoing investment activities are informed by, and benefit from, insight from prior experience. 12 Partnerships with Homebuilders We have increasingly leveraged strategic relationships with homebuilders to identify opportunities to purchase newly constructed homes.
During our initial assessment, we also determine the potential for, and potential return on, any value-additive upgrades that may reduce future operating costs or enhance rental demand and, by extension, our ability to realize more attractive rental, occupancy, or turnover rates.
During our initial assessment, we also determine the potential for, and potential return on, any value-additive upgrades that may reduce future operating costs or enhance rental demand and, by extension, our ability to realize more attractive rental, occupancy, or turnover rates. 13 We are able to drive cost efficiencies through oversight by our local associates of the entire process of renovating our homes.
As of December 31, 2024, we wholly own 85,138 homes for lease, jointly own 7,622 homes for lease, and provide professional third-party property and asset management services for an additional 17,678 homes, all of which are primarily located in 16 core markets across the country.
As of December 31, 2025, we wholly own 86,192 homes for lease, jointly own 8,006 homes for lease, and provide professional third-party property and asset management services for an additional 15,866 homes, all of which are primarily located in 16 core markets across the country.
Sustaining pay equity is a key focus for us now and in the future. Another component of our Total Value offering for associates is our holistic wellness program, which is designed to enhance mental, physical, and financial well-being.
We monitor our pay equity practices on an ongoing basis and consider pay equity dynamics when promoting internally and hiring externally. Sustaining pay equity is a key focus for us now and in the future. Another component of our Total Value offering for associates is our holistic wellness program, which is designed to enhance mental, physical, and financial well-being.
We strive to maximize the number of maintenance calls that are addressed by our in-house maintenance technicians. In cases where we outsource more complex or extensive repairs, our in-house maintenance associates provide oversight to ensure quality control and cost effectiveness.
In cases where we outsource more complex or extensive repairs, our in-house maintenance associates provide oversight to ensure quality control and cost effectiveness.
Digital Marketing Initiatives and Branding Our brand is differentiated through our commitment to providing high-quality living solutions and a professional property management team to support our residents, reflective of the needs of the rising generation of millennial renters.
We believe this approach increases our likelihood of capturing and retaining residents and enhances our opportunity to develop and market other programs and services. 10 Digital Marketing Initiatives and Branding Our brand is differentiated through our commitment to providing high-quality living solutions and a professional property management team to support our residents, reflective of the needs of the rising generation of millennial renters.
We value being part of the communities where we do business, and we recognize that the vitality of our business is directly linked to the vitality of the communities in which we operate.
Our scale enables us to offer enhanced services and exclusive offers that further improve the leasing experience. We value being part of the communities where we do business, and we recognize that the vitality of our business is directly linked to the vitality of the communities in which we operate.
Our strategy targets both existing homes through portfolio acquisitions or via MLS and newly constructed homes via strategic relationships with homebuilders. Our markets were generally selected through a robust process utilizing an analysis of housing and rental market supply and demand fundamentals, macroeconomic and demographic trends, and risk-adjusted total return potential.
Our markets were generally selected through a robust process utilizing an analysis of housing and rental market supply and demand fundamentals, macroeconomic and demographic trends, and risk-adjusted total return potential.
Your Voice. We continue to achieve high participation by our associates, with 82% of our associates sharing feedback at least once in 2024. This tool pro vides managers with actionable feedback on several key engagement dimensions.
We value feedback from our associates, and we maintain a continuous listening associate survey tool, Dot to Dot. We continue to achieve high participation by our associates, with 74% of our associates sharing feedback at least once in 2025. This tool pro vides managers with actionable feedback on several key engagement dimensions.
As part of our selective and disciplined investment approach, we have analyzed and considered a far greater number of potential acquisitions than the number of homes we have actually acquired or have agreed to purchase in the future from a homebuilder with whom we have a strategic relationship.
As part of our selective and disciplined investment approach, we have analyzed and considered a far greater number of potential acquisitions than the number of homes we have actually acquired or will acquire upon completion of construction.
We commission the construction of homes in high-demand areas that cater to the needs and preferences of our residents, contributing to the overall number of homes available in a supply-constrained environment.
We commission the construction of homes in high-demand areas that cater to the needs and preferences of our residents, contributing to the overall number of homes available in a supply-constrained environment. These contractual arrangements generally provide for periodic deposits from us to the homebuilders and scheduled delivery of homes over a specified period of time.
This team works in collaboration with our in-house investment and property management teams to maximize the total return of our upfront investment and minimize ongoing maintenance costs.
For newly constructed homes, which typically require no upfront renovation, this team is able to focus primarily on ongoing maintenance and resident service. The team works in collaboration with our in-house investment and property management teams to maximize the total return of our upfront investment and minimize ongoing maintenance costs.
These contractual arrangements generally provide for periodic deposits from us to the homebuilders and scheduled delivery of homes over a specified period of time. 12 Property Renovations We have an in-house team of dedicated associates located in our markets who oversee the upfront property renovation process and the ongoing maintenance of our homes, with support from centralized construction experts and infrastructure, including technology-enabled workflows.
Property Maintenance and Renovations We have an in-house team of dedicated associates located in our markets who oversee any required upfront property renovations and the ongoing maintenance of our homes, with support from centralized construction experts and infrastructure, including technology-enabled workflows.
Data privacy and security at the state level remains an evolving landscape. We endeavor to comply with privacy laws and regulations applicable to us.
These regulations include laws requiring holders of personal data to maintain safeguards and to take certain actions in response to a data breach. Data privacy and security at the state level remains an evolving landscape. We endeavor to comply with privacy laws and regulations applicable to us.
We thus have a substantial proprietary database from which we can draw as we evaluate future acquisition opportunities in our markets.
We thus have access to a substantial volume of historical public market data and operational experience from which we can draw as we evaluate future acquisition and development opportunities in our markets.
Our commitment to high-touch customer service continuously enhances residents’ living experiences and provides homes where individuals and families can thrive. 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.
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.
We also conduct an annual mandatory compliance training campaign and offer a robust catalog of online learning and development videos designed to help associates build their skills. We were recognized by Comparably in 2024 for Best Company for Career Growth.
Growing People for Success is our fully integrated talent cycle that incorporates our performance and feedback process, career growth and development, and leadership behaviors model. We also conduct an annual mandatory compliance training campaign and offer a robust catalog of online learning and development videos designed to help associates build their skills.
However, we believe that our acquisition platform, our extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages. Inflation and Macroeconomic Conditions Inflation primarily impacts our results of operations as a result of increased repair and maintenance and other costs and wage pressures.
However, we believe that our acquisition and development platform, our extensive in-market property operations infrastructure, and local expertise in our markets currently provide us with competitive advantages.
Compensation is one component of our Total Value offering for Invitation Homes associates, and we strive to compensate associates fairly and consistently based on market rates for their roles, experience, and how they perform. We monitor our pay equity practices on an ongoing basis and consider pay equity dynamics when promoting internally and hiring externally.
We believe that competitive compensation and benefits are key drivers of associate attraction, retention, motivation, and engagement. Compensation is one component of our Total Value offering for Invitation Homes associates, and we strive to compensate associates fairly and consistently based on market rates for their roles, experience, and how they perform.
Partnerships with Homebuilders We have increasingly leveraged strategic relationships with homebuilders to identify opportunities to purchase newly constructed homes. These partnerships allow us to meaningfully scale and expand our portfolio with single-family homes that are specifically designed to be leased by our target customer.
These partnerships allow us to meaningfully scale and expand our portfolio with single-family homes that are specifically designed to be leased by our target customer. Newly constructed homes offer several distinct advantages over legacy homes. From a cost perspective, these homes typically require significantly lower maintenance expenditures in the initial years of ownership.
At Invitation Homes, we are committed to creating a better way to live and to being a force for positive change, while at the same time advancing efforts that make our company more innovative and our processes more sustainable. Sustainability is an important part of our strategic business objectives and is critical to our long-term success.
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™.
Laws and Regulations Regarding Privacy and Data Protection We are subject to a variety of laws and regulations that involve matters such as privacy, data protection, content, consumer protection, and other matters. These regulations include laws requiring holders of personal data to maintain safeguards and to take certain actions in response to a data breach.
The timing and outcome of specific proposals or policies remain uncertain, as do their potential impacts on our operations. Laws and Regulations Regarding Privacy and Data Protection We are subject to a variety of laws and regulations that involve matters such as privacy, data protection, content, consumer protection, and other matters.
In response, some states and local jurisdictions have introduced or enacted regulations that limit landlords’ ability to screen applicants, raise rents, process evictions, or terminate leases. We are closely monitoring developments related to such regulations. However, the timing and outcome of specific proposals or policies remain uncertain, as do their potential impacts on our operations.
In response, some states and local jurisdictions have introduced or enacted regulations that may limit landlords’ ability to acquire, own or operate single-family residential properties, screen applicants, increase rents, recover possession of properties, process evictions, terminate leases, or otherwise manage single-family residential rental portfolios.
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History Through certain of the six holding entities that owned our business prior to our initial public offering (the “IH Holding Entities”), we commenced operations in 2012.
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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.
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On January 31, 2017, we effected certain reorganization transactions that resulted in INVH LP holding, directly or indirectly, all of the assets, liabilities, and results of operations of the Manager and the full portfolio of homes owned by the IH Holding Entities. As a result of the reorganization transactions, INVH LP became a consolidated subsidiary of INVH.
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We also work to advance sustainability, which is an important part of our strategic business objectives and is critical to our long-term success. Our commitment to high-touch customer service continuously enhances residents’ living experiences and provides an environment where individuals and families can thrive.
Removed
A wholly owned subsidiary of INVH, Invitation Homes OP GP LLC (the “General Partner”), serves as INVH LP’s sole general partner. Invitation Homes Inc., a Maryland corporation, was incorporated in Delaware on October 4, 2016.
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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.
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On February 6, 2017, Invitation Homes Inc. changed its jurisdiction of incorporation to Maryland and completed an initial public offering of its shares of common stock (the “IPO”).

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur charter provides that, to the maximum extent permitted from time to time by Maryland law, we renounce any interest or expectancy that we have in, or any right to be offered an opportunity to participate in, any business opportunities that are from time to time presented to or developed by our directors or their affiliates, other than to those directors who are employed by us or our subsidiaries, unless the business opportunity is expressly offered or made known to such person in his or her capacity as our director, and none of our pre-IPO owners, or any of their respective affiliates, or any director who is not employed by us or any of his or her affiliates, will have any duty to refrain from engaging, directly or indirectly, in the same business activities or similar business activities or lines of business in which we or our affiliates engage or propose to engage or to refrain from otherwise competing with us or our affiliates. 45 Our charter provides that, to the maximum extent permitted from time to time by Maryland law, each of our non-employee directors, and any of their affiliates, may: • acquire, hold, and dispose of interests in us and/or our subsidiaries, including shares of our stock or common units of partnership interest in INVH LP for his, her or its own account or for the account of others, and exercise all of the rights of a stockholder of Invitation Homes Inc., or a limited partner of INVH LP, to the same extent and in the same manner as if he, she, or it were not our director or stockholder; and • in his, her, or its personal capacity or in his, her, or its capacity, as applicable, as a director, officer, trustee, stockholder, partner, member, equity owner, manager, advisor, or employee of any other person, have business interests and engage, directly or indirectly, in business activities that are similar to ours or compete with us, that involve a business opportunity that we could seize and develop or that include the acquisition, syndication, holding, management, development, operation, or disposition of interests in mortgages, real property or persons engaged in the real estate business.
Biggest changeOur charter provides that, to the maximum extent permitted from time to time by Maryland law, each of our non-employee directors, and any of their affiliates, may: • acquire, hold, and dispose of interests in us and/or our subsidiaries, including shares of our stock or common units of partnership interest in INVH LP for his, her or its own account or for the account of others, and exercise all of the 49 rights of a stockholder of Invitation Homes Inc., or a limited partner of INVH LP, to the same extent and in the same manner as if he, she, or it were not our director or stockholder; and • in his, her, or its personal capacity or in his, her, or its capacity, as applicable, as a director, officer, trustee, stockholder, partner, member, equity owner, manager, advisor, or employee of any other person, have business interests and engage, directly or indirectly, in business activities that are similar to ours or compete with us, that involve a business opportunity that we could seize and develop or that include the acquisition, syndication, holding, management, development, operation, or disposition of interests in mortgages, real property or persons engaged in the real estate business.
Despite our security measures, our information technology and infrastructure are subject to ongoing threats and attacks and may be vulnerable to attacks by malicious third parties or breached due to employee error, malfeasance, or other disruptions. Due to the nature of some of the attacks, there is a risk that they may remain undetected for a period of time.
Despite our security measures, our information technology and infrastructure are subject to ongoing threats and attacks and may be vulnerable to attacks by malicious third parties or breached due to employee error, malfeasance, or other disruptions. Due to the nature of some attacks, there is a risk that they may remain undetected for a period of time.
A general decline in business activity and demand for real estate transactions resulting from a pandemic could adversely affect (1) our ability to acquire or dispose of single-family homes on terms that are attractive or at all and (2) the value of our homes and our business such that we may recognize impairment on the carrying value of our investments in single-family residential properties and other assets subject to impairment review, including, but not limited to, goodwill.
A general decline in business activity and demand for real estate transactions resulting from a pandemic could adversely affect (1) our ability to build, acquire, or dispose of single-family homes on terms that are attractive or at all and (2) the value of our homes and our business such that we may recognize impairment on the carrying value of our investments in single-family residential properties and other assets subject to impairment review, including, but not limited to, goodwill.
If we fail to qualify as a REIT in any tax year, and we do not qualify for relief under applicable statutory provisions, then: • we would be taxed as a regular domestic corporation (a “C corporation”), which under current laws means, among other things, being unable to deduct distributions to stockholders in computing taxable income and being subject to United States federal income tax on our taxable income at regular corporate income tax rates; • any resulting tax liability could be substantial and could have a material adverse effect on our book value; • we would be required to pay taxes, and thus, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT and for which we had taxable income; • we could be subject to increased state and local taxes; and • we generally would not be eligible to requalify as a REIT for the subsequent four full taxable years. 46 REITs, in certain circumstances, may incur tax liabilities that would reduce our cash flows.
If we fail to qualify as a REIT in any tax year, and we do not qualify for relief under applicable statutory provisions, then: • we would be taxed as a regular domestic corporation (a “C corporation”), which under current laws means, among other things, being unable to deduct distributions to stockholders in computing taxable income and being subject to United States federal income tax on our taxable income at regular corporate income tax rates; • any resulting tax liability could be substantial and could have a material adverse effect on our book value; • we would be required to pay taxes, and thus, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT and for which we had taxable income; • we could be subject to increased state and local taxes; and • we generally would not be eligible to requalify as a REIT for the subsequent four full taxable years. 50 REITs, in certain circumstances, may incur tax liabilities that would reduce our cash flows.
Any such access, disclosure or other loss of information could result in legal claims or proceedings, misstated or unreliable financial data, liability under laws that protect the privacy of personal information, regulatory penalties, disruption to our operations and the services we provide to customers, including our residents, or damage our reputation, any of which could adversely affect our results of operations, reputation, and competitive position.
Any such access, disclosure or other loss of information could result in legal claims or proceedings, misstated or unreliable financial data, liability under laws that protect the privacy of personal information, 41 regulatory penalties, disruption to our operations and the services we provide to customers, including our residents, or damage our reputation, any of which could adversely affect our results of operations, reputation, and competitive position.
In general, these factors have put pressure on insurance premiums 21 and made it more challenging to obtain appropriate insurance coverage at reasonable rates without the assumption of increasingly higher levels of self-retained risk. In addition, a significant portion of our properties are located within HOAs, and we are subject to HOA rules and regulations.
In general, these factors have put pressure on insurance premiums and made it more challenging to obtain appropriate insurance coverage at reasonable rates without the assumption of increasingly higher levels of self-retained risk. In addition, a significant portion of our properties are located within HOAs, and we are subject to HOA rules and regulations.
Many of the expenses associated with our business, such as property taxes, insurance, HOA fees, utilities, acquisition, renovation and maintenance costs, and other general corporate expenses are relatively inflexible and will not necessarily decrease with a reduction in revenue from our business. Some components of our fixed assets depreciate more rapidly and require ongoing capital expenditures.
Many of the expenses associated with our business, such as property taxes, insurance, HOA fees, utilities, construction, acquisition, renovation and maintenance costs, and other general corporate expenses are relatively inflexible and will not necessarily decrease with a reduction in revenue from our business. Some components of our fixed assets depreciate more rapidly and require ongoing capital expenditures.
We may be unaware of or unable to review or comply with HOA rules before purchasing a property, and any such excessively 35 restrictive or arbitrary regulations may cause us to sell such property at a loss, prevent us from leasing such property, or otherwise reduce our cash flow from such property, which would have an adverse effect on our returns on these properties.
We may be unaware of or unable to review or comply with HOA rules before purchasing a property, and any such excessively restrictive or arbitrary regulations may cause us to sell such property at a loss, prevent us from leasing such property, or otherwise reduce our cash flow from such property, which would have an adverse effect on our returns on these properties.
There is increasing concern that a gradual rise in global average temperatures due to increased concentration of carbon dioxide and other greenhouse gases (“GHG”) in the atmosphere will cause significant changes in weather patterns around the globe, an increase in the frequency, severity, and duration of extreme weather conditions and natural disasters, and water scarcity and poor water quality.
There is increasing concern that a gradual rise in global average temperatures due to increased concentration of carbon dioxide and other greenhouse gases in the atmosphere will cause significant changes in weather patterns around the globe, an increase in the frequency, severity, and duration of extreme weather conditions and natural disasters, and water scarcity and poor water quality.
See “— Security breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and reputation to suffer. ” 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.
See “— Security breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and reputation to suffer. ” 42 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.
As a result, we may not be able to fully offset rising costs and capital spending by increasing rental rates, which could have a material adverse effect on our results of operations and cash available for distribution. We recorded net losses in the past and we may experience net losses in the future.
As a result, we may not be able to fully offset rising 24 costs and capital spending by increasing rental rates, which could have a material adverse effect on our results of operations and cash available for distribution. We recorded net losses in the past and we may experience net losses in the future.
If we conclude that certain individual properties purchased in bulk portfolio sales do not fit our target investment criteria, we may decide to sell, rather than renovate and lease, such properties, which could take an extended period of time and may not result in a sale at an attractive price.
If we conclude that certain individual properties purchased in bulk portfolio sales do not fit our target 30 investment criteria, we may decide to sell, rather than renovate and lease, such properties, which could take an extended period of time and may not result in a sale at an attractive price.
Implementation of such investments in information technology could exceed estimated budgets, and we may experience challenges that prevent new strategies or technologies from being realized. If we are unable to maintain current information technology and processes or encounter delays, or fail to exploit new technologies, then the execution of our business plans may be disrupted.
Implementation of such information technology investments could exceed estimated budgets, and we may experience challenges that prevent new strategies or technologies from being realized. If we are unable to maintain current information technology and processes or encounter delays, or fail to exploit new technologies, then the execution of our business plans may be disrupted.
Any one or more of these factors could adversely affect our business, financial condition, and results of operations. 20 Many factors impact the single-family rental market; and if rents in our markets do not increase sufficiently to keep pace with rising costs of operations, our income and distributable cash could decline.
Any one or more of these factors could adversely affect our business, financial condition, and results of operations. Many factors impact the single-family rental market; and if rents in our markets do not increase sufficiently to keep pace with rising costs of operations, our income and distributable cash could decline.
In addition, any title insurance on a property, even if acquired, may not cover all defects or the significant legal costs associated with obtaining clear title. Any of these risks could adversely affect our operating results, cash flows, and ability to make distributions to our stockholders.
In addition, any title insurance on a property, even if acquired, may not cover all defects or the significant legal costs associated with obtaining clear title. 39 Any of these risks could adversely affect our operating results, cash flows, and ability to make distributions to our stockholders.
Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have been responsible for the contamination, each person covered by 39 applicable environmental laws may be held responsible for all of the clean-up costs incurred.
Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have been responsible for the contamination, each person covered by applicable environmental laws may be held responsible for all of the clean-up costs incurred.
Local regulations, including municipal or local ordinances, restrictions, and restrictive covenants imposed by community developers may restrict our or the use of our properties and may require us to obtain approval from local officials or community standards 32 organizations at any time with respect to our properties, including prior to acquiring any of our properties or when undertaking renovations of any of our existing properties.
Local regulations, including municipal or local ordinances, restrictions, and restrictive covenants imposed by community developers may restrict our or the use of our properties and may require us to obtain approval from local officials or community standards organizations at any time with respect to our properties, including prior to acquiring any of our properties or when undertaking renovations of any of our existing properties.
Any attempt to own or transfer shares of our common stock in excess of the ownership limit without 48 the consent of our board of directors will result either in the shares of stock in excess of the limit being transferred by operation of the charter to a charitable trust, and the person who attempted to acquire such excess shares of stock will not have any rights in such excess shares of stock, or in the transfer being void.
Any attempt to own or transfer shares of our common stock in excess of the ownership limit without the consent of our board of directors will result either in the shares of stock in excess of the limit being transferred by operation of the charter to a charitable trust, and the person who attempted to acquire such excess shares of stock will not have any rights in such excess shares of stock, or in the transfer being void.
Further, investments in partnerships, joint ventures, or other entities may, under certain circumstances, involve risks not present were a third party not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their share of required capital contributions.
Further, investments in partnerships, joint ventures, or other 33 entities may, under certain circumstances, involve risks not present were a third party not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their share of required capital contributions.
An economic downturn resulting from a pandemic, and a disruption of, and/or instability in, the global financial markets or deteriorations in credit and financing conditions may affect our access to capital necessary to fund business operations, including acquisitions, or address maturing liabilities on a timely basis.
An economic downturn resulting from a pandemic, and a disruption of, and/or instability in, the global financial markets or deteriorations in credit and financing conditions may affect our access to capital necessary to fund business operations, including construction and acquisitions, or address maturing liabilities on a timely basis.
We believe that there are seasonal fluctuations in rental demand with demand higher in the spring and summer than in the late fall and winter. Such seasonal fluctuations may impact our operating results. In addition to global and United States economic conditions, our operating performance will be impacted by the economic conditions in our markets.
We believe that there are seasonal fluctuations in rental demand with demand higher in the spring and summer than in the late fall and winter. Such seasonal fluctuations may impact our operating results. 25 In addition to global and United States economic conditions, our operating performance will be impacted by the economic conditions in our markets.
Accordingly, the cost of maintaining rental properties can be higher than the cost of maintaining owner-occupied homes, which will affect our results of operations and may adversely impact our ability to make distributions to our stockholders. 29 Declining real estate valuations and impairment charges could adversely affect our financial condition and operating results.
Accordingly, the cost of maintaining rental properties can be higher than the cost of maintaining owner-occupied homes, which will affect our results of operations and may adversely impact our ability to make distributions to our stockholders. Declining real estate valuations and impairment charges could adversely affect our financial condition and operating results.
High unemployment levels and federal unemployment subsidies may adversely affect the labor force available to 23 us or increased labor costs. In addition, we continue to experience disruptions from workforce turnover due to a scarcity of talent, as businesses compete for personnel, and rising labor costs.
High unemployment levels and federal unemployment subsidies may adversely affect the labor force available to us or increased labor costs. In addition, we continue to experience disruptions from workforce turnover due to a scarcity of talent, as businesses compete for personnel, and rising labor costs.
For example, increases in unemployment levels or adverse economic conditions in certain of our markets may adversely affect the creditworthiness of our residents in such markets. Even though this information is not updated, we will use it to evaluate the characteristics of our portfolio over time.
For example, increases in unemployment levels or adverse economic conditions in certain of our markets may adversely affect 32 the creditworthiness of our residents in such markets. Even though this information is not updated, we will use it to evaluate the characteristics of our portfolio over time.
These limitations on ownership of TRS stock could limit the extent to which we can conduct these activities and other activities through our TRSs. In addition, the tax rules may limit the deductibility of interest paid or accrued by a TRS to its parent REIT.
These limitations on ownership of TRS stock could limit the extent to which we can conduct these activities and other activities through our TRSs. In addition, the tax rules may 53 limit the deductibility of interest paid or accrued by a TRS to its parent REIT.
For example, while we do not lend to homeowners and accordingly do not foreclose on a home, our title to properties we acquire at foreclosure auctions may be subject to challenge based on allegations of defects in the foreclosure process undertaken by other parties.
For example, while we do not lend to homeowners and accordingly do not foreclose on a home, our title to properties we acquire at foreclosure may be subject to challenge based on allegations of defects in the foreclosure process undertaken by other parties.
In such an event, the value of the affected properties would be reduced by the amount of any such uninsured loss, and we could experience a significant loss of capital invested and potential revenues in such properties and could potentially 30 remain obligated under any recourse debt associated with such properties.
In such an event, the value of the affected properties would be reduced by the amount of any such uninsured loss, and we could experience a significant loss of capital invested and potential revenues in such properties and could potentially remain obligated under any recourse debt associated with such properties.
Until a municipal inspector verifies that the 34 violation has been remedied and any applicable fines have been paid, additional fines accrue on the amount of the lien and the lien may not be released, in each case even at those properties that are not in violation.
Until a municipal inspector verifies that the violation has been remedied and any applicable fines have been paid, additional fines accrue on the amount of the lien and the lien may not be released, in each case even at those properties that are not in violation.
Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, or otherwise harm our business. ” 37 Our business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters.
Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, or otherwise harm our business. ” Our business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters.
We cannot assure you that we will be able to access the capital and credit markets to obtain additional debt or equity financing or that we will be able to obtain financing on terms favorable to us. Our inability to obtain financing could have negative effects on our business.
We cannot assure you that we will be able to access the capital and credit markets to obtain additional debt or equity financing or that we will be able to obtain financing on terms favorable to us. Our inability to obtain financing could have 45 negative effects on our business.
Instead, we may use such proceeds for other purposes, including: • purchasing additional properties; • repaying debt or buying back stock; • creating working capital reserves; or • making repairs, maintenance or other capital improvements or expenditures to our remaining properties.
Instead, we may use such proceeds for other purposes, including: • purchasing additional properties; • repaying debt or buying back stock; • creating working capital reserves; or 34 • making repairs, maintenance, or other capital improvements or expenditures to our remaining properties.
If our assumptions regarding the costs or 24 timing of renovation and maintenance across our properties prove to be materially inaccurate, our operating results and ability to make distributions to our stockholders may be adversely affected.
If our assumptions regarding the costs or timing of renovation and maintenance across our properties prove to be materially inaccurate, our operating results and ability to make distributions to our stockholders may be adversely affected.
Such inspection processes may fail to reveal major defects associated with 27 such properties, which may cause the amount of time and cost required to renovate and/or maintain such properties to substantially exceed our estimates.
Such inspection processes may fail to reveal major defects associated with such properties, which may cause the amount of time and cost required to renovate and/or maintain such properties to substantially exceed our estimates.
Brokerage of real estate leasing transactions and the provision of property management services require us and our associates to maintain applicable licenses in each state in which we perform these services.
Brokerage of real estate leasing transactions and the provision of property management services require us and certain of our associates to maintain applicable licenses in each state in which we perform these services.
See “— 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. ” Environmentally hazardous conditions may adversely affect us.
See “— 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. ” 43 Environmentally hazardous conditions may adversely affect us.
As a result, there can be no assurance that we will be able to identify and finance investments that are consistent with our investment objectives or to achieve positive investment results, and our failure to accomplish any of the foregoing could have a material adverse effect on us and cause the value of our common stock to decline.
As a result, there can be no assurance that we will be able to identify and finance investments or development opportunities that are consistent with our investment objectives or to achieve positive investment results, and our failure to accomplish any of the foregoing could have a material adverse effect on us and cause the value of our common stock to decline.
Such takeover defenses 44 may have the effect of inhibiting a third party from making an acquisition proposal for us or of delaying, deferring, or preventing a change in control of us under the circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then-current market price.
Such takeover defenses 48 may have the effect of inhibiting a third party from making an acquisition proposal for us or of delaying, deferring, or preventing a change in control of us under the circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then-current market price.
For example, if we decide to acquire properties opportunistically to renovate in anticipation of immediate resale, we will need to conduct that activity through a TRS to avoid the 100% prohibited transactions tax. 47 The 100% prohibited transactions tax may limit our ability to enter into transactions that would otherwise be beneficial to us.
For example, if we decide to acquire properties opportunistically to renovate in anticipation of immediate resale, we will need to conduct that activity through a TRS to avoid the 100% prohibited transactions tax. 51 The 100% prohibited transactions tax may limit our ability to enter into transactions that would otherwise be beneficial to us.
In addition, any potential competitor may have higher risk tolerances or different risk assessments and may not be subject to the operating constraints associated with qualification for taxation as a REIT, which could allow them to consider a wider variety of investments.
In addition, any potential competitor may have higher risk tolerances or different risk assessments and may not be subject to the operating constraints associated with qualification for taxation as a REIT, which could allow them to consider a wider variety of investments or development opportunities.
Any such changes could have an adverse effect on an investment in our stock or on the market value or the resale potential of our assets. You are urged to consult with your tax advisor with respect to the status of legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our stock.
Any of these changes could have an adverse effect on an investment in our stock or on the market value or the resale potential of our assets. You are urged to consult with your tax advisor with respect to the status of legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our stock.
When we purchase properties in bulk or through an auction process, we often do not have the opportunity to conduct interior inspections or conduct more than cursory exterior inspections on a portion of the properties, if at all.
When we purchase properties in bulk, or if we were to acquire properties through an auction process, we often do not have the opportunity to conduct interior inspections or conduct more than cursory exterior inspections on a portion of the properties, if at all.
See “— We rely on information supplied by prospective residents in managing our business. ” Our evaluation of properties involves a number of assumptions that may prove inaccurate, which could result in us paying too much for properties we acquire and/or overvaluing our properties or our properties failing to perform as we expect.
See “— We rely on information supplied by prospective residents in managing our business. ” Our evaluation of properties and development projects involves a number of assumptions that may prove inaccurate, which could result in us paying too much for properties we acquire or development projects we undertake and/or overvaluing our properties or development projects, or our properties or development projects failing to perform as we expect.
In determining whether a particular property meets our investment criteria, we also make a number of assumptions, including, among other things, assumptions related to estimated time of possession and estimated renovation costs and time frames, annual operating costs, market rental rates and potential rent amounts, time from purchase to leasing, and resident default rates.
In determining whether a particular property or development project meets our investment criteria, we also make a number of assumptions, including, among other things, assumptions related to estimated time of possession and estimated renovation costs and time frames, annual operating costs, market rental rates and potential rent amounts, time from purchase to leasing, and resident default rates.
Policy changes and changes in federal, state, and local legislation and regulation based on concerns about climate change, including regulations aimed at limiting GHG emissions and the implementation of “green” building codes, could result in increased capital expenditures on our existing 38 properties (for example, to improve their energy efficiency and/or resistance to inclement weather) without a corresponding increase in revenue, resulting in adverse impacts to our results of operations.
Policy changes and changes in federal, state, and local legislation and regulation based on concerns about climate change, including regulations aimed at limiting greenhouse gas emissions and the implementation of “green” building codes, could result in increased capital expenditures on our existing properties (for example, to improve their energy efficiency and/or resistance to inclement weather) without a corresponding increase in revenue, resulting in adverse impacts to our results of operations.
A disparity between federal and state regulations increases the likelihood of heightened state regulatory risk, as compliance with federal standards may not fully align with more stringent or divergent state-level requirements.
Additionally, disparity between federal and state regulations increases the likelihood of heightened state regulatory risk, as compliance with federal standards may not fully align with more stringent or divergent state-level requirements.
Similarly, our associates require effective tools and techniques to perform functions integral to our business. 36 We currently use limited traditional and generative AI solutions for certain marketing, administrative, and other functions. We may incorporate additional generative AI solutions into our information systems in the future and these solutions may become important in our operations over time.
Similarly, our associates require effective tools and techniques to perform functions integral to our business. We currently use traditional and generative AI solutions for certain marketing, operational, administrative, and other functions. We may incorporate additional generative AI solutions into our information systems in the future and these solutions may become important in our operations over time.
Compliance with laws and regulations concerning cyber security, such as the recently enacted SEC rules requiring disclosure of material cybersecurity incidents, data governance, and data protection could result in significant expense, and any failure to comply could result in proceedings against us by regulatory authorities or other third parties.
Compliance with laws and regulations concerning cyber security, such as SEC rules requiring disclosure of material cybersecurity incidents, data governance, and data protection could result in significant expense, and any failure to comply could result in proceedings against us by regulatory authorities or other third parties.
See “ — We are subject to risks from natural disasters such as earthquakes, wildfires, and severe weather .” Growing public concern about climate change has resulted in the increased focus of local, state, regional, national, and international regulatory bodies on GHG emissions and climate change issues.
See “ — We are subject to risks from natural disasters such as earthquakes, wildfires, and severe weather .” Growing public concern about climate change has resulted in the increased focus of local, state, regional, national, and international regulatory bodies on greenhouse gas emissions and climate change issues.
We have and may continue to utilize non-recourse long-term mortgage loans relating to pools of homes which we own, if and when they become available and to the extent consistent with the maintenance of our REIT qualification. Mortgage loans may expose us to certain risks not prevalent in other debt financings.
We have and may continue to utilize non-recourse long-term secured debt relating to pools of homes which we own, if and when they become available and to the extent consistent with the maintenance of our REIT qualification. Secured debt may expose us to certain risks not prevalent in other debt financings.
We are authorized to follow a broad investment policy established by our board of directors and subject to implementation by our management. Our board of directors periodically reviews and updates the investment policy and also 26 reviews our portfolio of residential real estate, but it generally does not review or approve specific property acquisitions.
We are authorized to follow a broad investment policy established by our board of directors and subject to implementation by our management. Our board of directors periodically reviews and updates the investment policy and also reviews our portfolio of residential real estate, but it generally does not review or approve specific property acquisitions or development projects.
We have and may continue to utilize non-recourse long-term mortgage loans, and such structures may expose us to certain risks not prevalent in other debt financings, which could affect the availability and attractiveness of this financing option or otherwise result in losses to us.
We have and may continue to utilize non-recourse long-term secured debt, and such structures may expose us to certain risks not prevalent in other debt financings, which could affect the availability and attractiveness of this financing option or otherwise result in losses to us.
The effects of inflation on our financial condition and results of operations over the past few years are primarily related to increased operating costs for the procurement of goods and service, compensation of our associates, including benefits, and financing costs in the form of interest expense.
The effects of inflation on our financial condition and results of operations over the past few years are primarily related to increased operating costs for the procurement of goods and services, compensation of our associates, including benefits, and financing costs in the form 22 of interest expense.
In addition, competition for desirable investments could delay the investment of our capital, which could adversely affect our results of operations and cash flows.
In addition, competition for desirable investments and development sites could delay the investment of our capital, which could adversely affect our results of operations and cash flows.
The inability to consummate mortgage loans to finance our investments on a long-term basis could require us to seek other forms of potentially less attractive financing or to liquidate assets at an inopportune time or price, which could adversely affect our performance and our ability to grow our business.
The inability to consummate secured debt to finance our investments on a long-term basis could require us to seek other forms of potentially less attractive financing or to liquidate assets at an inopportune time or price, which could adversely affect our performance and our ability to grow our business.
Our operating results are subject to risks generally incident to the ownership and rental of residential real estate, many of which are beyond our control, including, without limitation: • fluctuating global and United States economic conditions, uncertainty in financial markets, and geopolitical tensions; • bank failures or other liquidity constraints affecting financial institutions; • changes in national, regional, or local economic, demographic, or real estate market conditions; • changes in job markets and employment levels on a national, regional, and local basis; • declines in the value of residential real estate; 19 • overall conditions in the housing market, including: • macroeconomic shifts in demand for rental homes; • inability to lease or re-lease homes to residents on a timely basis, on attractive terms or at all; • failure of residents to pay rent when due or otherwise perform their lease obligations; • unanticipated repairs, capital expenditures, weather related damages, or other costs; • uninsured damages; and • increases in property taxes, HOA fees, and insurance costs; • level of competition for suitable rental homes; • terms and conditions of purchase contracts; • costs and time period required to convert acquisitions to rental homes; • changes in the terms or availability of financing that may render the acquisition of any homes difficult or unattractive; • the liquidity of real estate investments, generally; • the short-term nature of most residential leases and the costs and potential delays in re-leasing; • changes in laws and regulations, including those that increase operating expenses or limit our ability to increase rental rates.
Our operating results are subject to risks generally incident to the ownership and rental of residential real estate, many of which are beyond our control, including, without limitation: • fluctuating global and United States economic conditions, uncertainty in financial markets, and geopolitical tensions; • liquidity constraints affecting financial institutions; • changes in national, regional, or local economic, demographic, or real estate market conditions; • changes in job markets and employment levels on a national, regional, and local basis; • declines in the value of residential real estate; • overall conditions in the housing market, including: • executive actions and proposed federal and state legislation or regulations aimed at limiting institutional institutional ownership and acquisition of single-family homes; • macroeconomic shifts in demand for rental homes; • inability to lease or re-lease homes to residents on a timely basis, on attractive terms or at all; • failure of residents to pay rent when due or otherwise perform their lease obligations; • unanticipated repairs, capital expenditures, weather related damages, or other costs; • uninsured damages; and • increases in property taxes, HOA fees, and insurance costs; • level of competition for suitable rental homes; • terms and conditions of purchase contracts; • costs and time period required to convert acquisitions to rental homes; • changes in the terms or availability of financing that may render the acquisition of any homes difficult or unattractive; • the liquidity of real estate investments, generally; • the short-term nature of most residential leases and the costs and potential delays in re-leasing; • changes in laws and regulations, including those that increase operating expenses or limit our ability to increase rental rates.
We cannot assure you that existing regulatory policies will not adversely affect us or the timing or cost of any future acquisitions, renovations, or dispositions, or that additional regulations will not be adopted that would increase such delays or result in additional costs or losses.
We cannot assure you that existing regulatory policies will not adversely affect us or the timing or cost of any future acquisitions, dispositions, renovations, and land development and construction, or that additional regulations will not be adopted that would increase such delays or result in additional costs or losses.
Disruptions of the securitization market could preclude our ability to use mortgage loans as a financing source or could render it an inefficient source of financing, making us more dependent on alternative sourcing of financing that might not be as favorable as mortgage loans in otherwise favorable markets.
Disruptions of the securitization market could preclude our ability to use secured debt as a financing source or could render it an inefficient source of financing, making us more dependent on alternative sourcing of financing that might not be as favorable as secured debt in otherwise favorable markets.
Accordingly, future acquisitions may have lower yield characteristics than recent past and present opportunities and, if such future acquisitions are funded through equity issuances, the yield and distributable cash per share may be reduced, and the value of our common stock may decline.
Accordingly, future acquisitions and development projects may have lower yield characteristics than recent past and present opportunities and, if such future acquisitions or development activities are funded through equity issuances, the yield and distributable cash per share may be reduced, and the value of our common stock may decline.
We are subject to certain risks associated with bulk portfolio acquisitions and dispositions and acquisitions through an auction process. We have acquired and disposed of, and may continue to acquire and dispose of, properties we acquire or sell in bulk from or to other owners of single-family homes, banks, and loan servicers.
We are subject to certain risks associated with bulk portfolio acquisitions and dispositions. We have acquired and disposed of, and may continue to acquire and dispose of, properties we acquire or sell in bulk from or to other owners of single-family homes, banks, and loan servicers.
See “Risks Related to Our Business Environment and Industry — Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and outbreaks of infectious disease. ” We utilize a significant amount of indebtedness in the operation of our business. As of December 31, 2024 we had $8,287.2 million aggregate principal amount of indebtedness outstanding.
See “Risks Related to Our Business Environment and Industry — Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and outbreaks of infectious disease. ” We utilize a significant amount of indebtedness in the operation of our business. As of December 31, 2025 we had $8,458.4 million aggregate principal amount of indebtedness outstanding.
We cannot predict whether, when or to what extent new United States federal tax laws, regulations, interpretations, or rulings will be adopted. Any legislative action may 49 prospectively or retroactively modify our tax treatment and, therefore, may adversely affect our taxation or our stockholders.
We cannot predict whether, when or to what extent new United States federal, state, or local tax laws, regulations, interpretations, or rulings will be adopted. Any such action may prospectively or retroactively modify our tax treatment and, therefore, may adversely affect our taxation or our stockholders.
Selecting, managing, and supervising these third-party service providers requires significant resources and expertise, and because our portfolio consists of geographically dispersed properties, our ability to adequately select, manage, and supervise such third parties may be more limited or subject to greater inefficiencies than if our properties were more geographically concentrated.
Selecting, managing, and supervising these third-party service providers requires significant resources and expertise, and because our portfolio consists of geographically dispersed properties and our development activities occur across multiple markets, our ability to adequately select, manage, and supervise such third parties may be more limited or subject to greater inefficiencies than if our properties and development projects were more geographically concentrated.
In addition, we have in the past, and may from time to time in the future, acquire a number of our properties on an “as is” basis, at auctions or otherwise.
In addition, we have in the past, and may from time to time in the future, acquire a number of our properties on an “as is” basis.
Competition may result in fewer investments, higher prices, a broadly dispersed portfolio of properties that does not lend itself to efficiencies of concentration, acceptance of greater risk, lower yields and a narrower spread of yields over our financing costs.
Competition may result in fewer investments, higher prices for both existing homes and developable land, a broadly dispersed portfolio of properties that does not lend itself to efficiencies of concentration, acceptance of greater risk, lower yields and a narrower spread of yields over our financing costs.
We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility, and reduce the price of our common stock. The Internal Revenue Service, the United States Treasury Department, and Congress frequently review United States federal income tax legislation, regulations, and other guidance.
We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility, and reduce the price of our common stock. The Internal Revenue Service, the United States Treasury Department, Congress, and state and local taxing authorities frequently review and may modify tax legislation, regulations, and other guidance.
Even though we believe we utilize appropriate duplication and back-up procedures, a significant outage in telecommunications, the Internet, or at our third-party service providers could negatively impact our operations.
Even though we believe we have appropriate duplication and redundancy procedures, a significant outage in telecommunications, the Internet, or at our third-party service providers could negatively impact our operations.
Experiencing or addressing the various 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, complex, and sometimes, inconsistent disclosure obligations promulgated by governmental and regulatory organizations relating to sustainability.
Experiencing or addressing the various 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, complex, and sometimes, inconsistent disclosure obligations promulgated by governmental and regulatory organizations relating to sustainability which could significantly increase compliance burdens and associated regulatory costs and complexity.
While we are not currently involved in any legal or regulatory proceedings that we expect to have a material adverse effect on our business, results of operations, or financial condition, such proceedings have imposed, and may in the future impose, on us significant litigation expenses, including settlements to avoid continued litigation or judgments for damages or injunctions.
While we are not currently involved in any legal or regulatory proceedings that we expect to have a material adverse effect on our business, results of operations, or financial condition, such proceedings have imposed, and may in the future impose, on us significant litigation expenses, including settlements to avoid continued litigation or judgments for damages or injunctions. 38 Contingent or unknown liabilities could adversely affect our financial condition, cash flows, and operating results.
The potential difficulties we may encounter in providing professional property and asset management services may include, without limitation: • our inability to effectively perform the property and asset management services at the level and/or the cost that we anticipate or as a result of a failure to allocate sufficient resources to meet those needs; • our inability to manage the complexities associated with hiring and retaining key personnel required to provide property and asset management services to the increased number of properties we manage as we grow; • integrating additional regulatory and legal compliance controls and financial reporting practices and controls into our business; • failure to have received comprehensive diligence regarding the properties or existing tenants that we manage, which may have impaired our assessment of the engagement; • potential unknown liabilities and unforeseen increased expenses associated with property and asset management; and • performance shortfalls as a result of the diversion of management’s attention caused by a significant increase in the number of properties we manage. 31 For all these reasons, it is possible that providing professional property and asset management services could result in the distraction of our management or inconsistencies in our operations, services, standards, controls, policies, and procedures, any of which could adversely affect our business and financial results.
The potential difficulties we may encounter in providing professional property and asset management services may include, without limitation: • our inability to effectively perform the property and asset management services at the level and/or the cost that we anticipate or as a result of a failure to allocate sufficient resources to meet those needs; • our inability to manage the complexities associated with hiring and retaining key personnel required to provide property and asset management services to the increased number of properties we manage as we grow; • integrating additional regulatory and legal compliance controls and financial reporting practices and controls into our business; • failure to have received comprehensive diligence regarding the properties or existing tenants that we manage, which may have impaired our assessment of the engagement; • potential unknown liabilities and unforeseen increased expenses associated with property and asset management; and • performance shortfalls as a result of the diversion of management’s attention caused by a significant increase in the number of properties we manage.
We intend to continue to acquire properties from time to time consistent with our investment strategy even if the rental and housing markets are not as favorable as they have been in the recent past, which could adversely impact anticipated yields.
We intend to acquire properties and to engage in development and construction activities from time to time consistent with our investment strategy even if the rental and housing markets are not as favorable as they have been in the recent past, which could adversely impact anticipated yields and returns on our development investments.
If we are unable to effectively execute or maintain our information technology strategies or adopt new technologies and processes relevant to our service platform, our ability to deliver high-quality services to our residents may be materially impaired. In addition, we make investments in new systems and tools to achieve competitive advantages and efficiencies.
If we are unable to effectively execute or maintain our information technology strategies or adopt new technologies and processes relevant to our service platform, our ability to deliver high-quality services to our residents may be materially impaired. In addition, we make investment in new systems and tools to gain competitive advantage and improve efficiency.
See “Legal and Regulatory Related Risks — Eviction, tenant rights, rent control, and rent stabilization laws, and other similar laws and/or regulations that limit our ability to collect rent, enforce remedies for failure to pay rent, or increase rental rates may negatively impact our rental income and profitability ; ” • the impact of potential reforms relating to government-sponsored enterprises involved in the home finance and mortgage markets; • rules, regulations and/or policy initiatives by government and private actors, including HOAs, to discourage or restrict the purchase or operation of single-family properties by entities owned or controlled by institutional investors; • the potential effects of climate change, related regulatory policies, legislation, and/or investor responses and expectations, and the transition to a lower-carbon economy; • disputes and potential negative publicity in connection with eviction proceedings; • construction of new supply; • costs resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems, such as indoor mold; • fraud by borrowers, originators, and/or sellers of mortgage loans; • undetected deficiencies and/or inaccuracies in underlying mortgage loan documentation and calculations; • casualty or condemnation losses; • the geographic mix of our properties; • the cost, quality, and condition of the properties we are able to acquire; and • our ability to provide adequate management, maintenance, and insurance.
See “Legal and Regulatory Related Risks — Eviction, tenant rights, rent control, and rent stabilization laws, and other similar laws and/or regulations that limit our ability to collect rent, enforce remedies for failure to pay rent, or increase rental rates may negatively impact our rental income and profitability ; ” • the impact of potential reforms relating to government-sponsored enterprises involved in the home finance and mortgage markets; 21 • rules, regulations and/or policy initiatives by government and private actors, including HOAs, to discourage or restrict the purchase or operation of single-family properties by entities owned or controlled by institutional investors; • the potential effects of climate change, related regulatory policies, legislation, and/or investor responses and expectations, and the transition to a lower-carbon economy; • disputes and potential negative publicity in connection with eviction proceedings; • construction of new supply; • costs resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems, such as indoor mold; • fraud by borrowers, originators, and/or sellers of secured debt; • undetected deficiencies and/or inaccuracies in underlying mortgage loan documentation and calculations; • casualty or condemnation losses; • the geographic mix of our properties; • the cost, quality, and condition of the properties we are able to acquire; • our development activities which expose us to execution, integration, cost, regulatory, permitting, and land acquisition risks, as well as potential delays, construction challenges, and lower-than-expected returns; • our developer lending program which exposes us to heightened credit, construction, valuation, and execution risks that could result in cost overruns, project delays, insufficient collateral value, or loan losses; and • our ability to provide adequate management, maintenance, and insurance.
The following factors, among others, may make acquisitions more expensive: • improvements in overall economic conditions and employment levels; • greater availability of consumer credit; • improvements in the pricing and terms of mortgages; • the emergence of increased competition for single-family properties from private investors and entities with similar investment objectives to ours; and • tax or other government incentives that encourage homeownership.
The following factors, among others, may make acquisitions or development activities more expensive: • improvements in overall economic conditions and employment levels; • greater availability of consumer credit; • improvements in the pricing and terms of mortgages; • the emergence of increased competition for single-family properties and developable land from private investors and entities with similar investment objectives to ours; • tax or other government incentives that encourage homeownership; and • increases in construction costs, including labor, materials, and supplies or delays in construction timelines.
In acquiring our properties, we compete with a variety of institutional investors, including other REITs, specialty finance companies, public and private funds, savings and loan associations, banks, mortgage bankers, insurance companies, institutional investors, investment banking firms, financial institutions, governmental bodies, and other entities. We also compete with individual private home buyers and small-scale investors.
In acquiring our properties and pursuing development opportunities, we compete with a variety of institutional investors, including other REITs, specialty finance companies, public and private funds, savings and loan associations, banks, mortgage bankers, insurance companies, institutional investors, investment banking firms, financial institutions, governmental bodies, 27 and other entities.
Our charter contains a provision that expressly permits our non-employee directors, certain of our pre-IPO owners, and their affiliates to compete with us.
Our charter contains a provision that expressly permits our non-employee directors and their affiliates to compete with us.
Our ability to successfully operate our business and implement our operating policies and investment strategy depends on many factors, including: • our ability to effectively manage renovation, maintenance, marketing, and other operating costs for our properties; • economic conditions in our markets, including changes in employment and household earnings and expenses, as well as the condition of the financial and real estate markets and the economy, in general; • our ability to maintain high occupancy rates and target rent levels; • the availability of, and our ability to identify, attractive acquisition opportunities consistent with our investment strategy; • our ability to compete with other investors entering the single-family rental industry; • costs that are beyond our control, including title litigation, litigation with residents or tenant organizations, legal compliance, property taxes, insurance, and HOA fees; • judicial and regulatory developments affecting landlord-tenant relations that may affect or delay our ability to dispossess or evict occupants or increase rental rates; • reversal of population, employment, or homeownership trends in our markets; and • interest rate levels and volatility, which may affect the accessibility of short-term and long-term financing on desirable terms.
Our ability to successfully operate our business and implement our operating policies and investment strategy depends on many factors, including: • our ability to effectively manage construction, renovation, maintenance, marketing, and other operating costs for our properties, or delays in construction timelines; • economic conditions in our markets, including changes in employment and household earnings and expenses, as well as the condition of the financial and real estate markets and the economy, in general; • our ability to maintain high occupancy rates and target rent levels; • the availability of, and our ability to identify, attractive acquisition or land development opportunities consistent with our investment strategy; • our ability to compete with other investors entering the single-family rental industry and other developers of single-family rental homes and communities; 35 • costs that are beyond our control, including title litigation, litigation with residents or tenant organizations, legal compliance, property taxes, insurance, HOA fees, and construction and renovation costs, including labor, materials, and supplies; • executive actions and legislative, regulatory, or policy initiatives, particularly those focused on institutional ownership and acquisition of single-family homes, that could limit our ability to acquire properties, impose additional compliance or operating requirements, or constrain pricing flexibility in certain markets; • judicial and regulatory developments affecting landlord-tenant relations that may affect or delay our ability to dispossess or evict occupants or increase rental rates; • reversal of population, employment, or homeownership trends in our markets; and • interest rate levels and volatility, which may affect the accessibility of short-term and long-term financing on desirable terms.
The Code provides that no more than 20% of the value of a REIT’s assets may consist of stock or securities of one or more TRSs.
The Code provides that no more than 20% of the value of a REIT’s assets, or no more than 25% of the value of a REIT’s assets beginning with the 2026 tax year, may consist of stock or securities of one or more TRSs.
Certain critical components of our platform are dependent upon third-party service providers, and a significant portion of our business operations are conducted over the Internet or through mobile applications.
Certain critical components of our platform are dependent upon third-party service providers, and a significant portion of our business operations is conducted online or via mobile applications.
Any of these factors could limit our access to mortgage loans as a source of financing.
Any of these factors could limit our access to secured debt as a source of financing.
An overall labor shortage experienced by our vendors, lack of skilled labor, increased turnover, or labor inflation, caused by a pandemic or as a result of general macroeconomic factors, could have a material adverse impact on our business, financial condition, or operating results.
An overall labor shortage experienced by our vendors, general contractors, subcontractors, and other third-party service providers, lack of skilled labor, increased turnover, or labor inflation, including as a result of general macroeconomic factors, could have a material adverse impact on our business, financial condition, or operating results.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeShe is skilled in aligning cybersecurity risk assessments with our ERM framework and monitoring the implementation of cybersecurity audit recommendations to ensure their effectiveness over time. The Cybersecurity Governance Committee meets quarterly to review the processes and performance indicators related to prevention, detection, mitigation, and remediation of cybersecurity incidents that could adversely impact business operations.
Biggest changeThe Cybersecurity Governance Committee meets quarterly to review the processes and performance indicators related to prevention, detection, mitigation, and remediation of cybersecurity incidents that could adversely impact business operations.
We follow a cloud-first approach to enable efficient scaling, robust business continuity, and access to the latest technology innovations. 50 Our cybersecurity risk management program aims to protect and preserve the confidentiality, integrity, and continued availability of our residents’ and associates’ data and includes controls and procedures for the identification, containment, and remediation of cyber threats.
We follow a cloud-first approach to enable efficient scaling, robust business continuity, and access to the latest technology innovations. Our cybersecurity risk management program aims to protect and preserve the confidentiality, integrity, and continued availability of our residents’ and associates’ data and includes controls and procedures for the identification, containment, and remediation of cyber threats.
As of December 31, 2024, we do not believe that any risks from any cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, our results of operations, or our financial condition.
As of December 31, 2025, we do not believe that any risks from any cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, our results of operations, or our financial condition.
We assess our cybersecurity risk management program at least annually and regularly review our cyber incident response plan. Our processes and policies also include the identification of those third-party relationships which have the greatest potential to expose us to cybersecurity threats.
We assess our cybersecurity risk management program at least annually and regularly review our cyber incident response plan. Our processes and policies also include the identification of those third-party relationships that have the greatest 54 potential to expose us to cybersecurity threats.
“Risk Factors — Risks Related to Information Technology, Cybersecurity, and Data Protection.” Governance Since August 2020, our Vice President, Chief Information Security Officer (“CISO”) has led a team of information security professionals who have the first line responsibility for our cybersecurity risk management processes and activities.
“Risk Factors — Risks Related to Information Technology, Cybersecurity, and Data Protection.” Governance Since August 2020, our Senior Vice President, Infrastructure, Support Services, and Chief Information Security Officer (“CISO”) has led a team of information security professionals who have the first line responsibility for our cybersecurity risk management processes and activities.
He reports directly to our Executive Vice President, Chief Information and Digital Officer, who 51 reports to our Chief Executive Officer, has over 25 years of experience managing global information technology operations, including strategy, application, infrastructure, information security, support, and execution.
Our CISO reports directly to our Senior Vice President, Head of Technology, who reports to our Chief Executive Officer, and has over 25 years of experience managing global information technology operations, including strategy, application, infrastructure, information security, support, and execution.
Our CISO and other senior members of information technology personnel regularly report to the audit committee and the board of directors on recent trends in cyber risks and review our strategy to defend our business systems and information against cyber-attacks.
In addition to providing periodic reports, at least semi-annually, our CISO and other senior members of information technology personnel report to the audit committee and the board of directors on recent trends in cyber risks and review our strategy to defend our business systems and information against cyber attacks.
We maintain a cross-functional cyber incident response plan with defined roles, responsibilities, and reporting protocols, which focuses on responding to and recovering from any significant breach as well as mitigating any impact to our business.
We maintain a cross-functional cyber incident response plan with defined roles, responsibilities, and reporting protocols, which focuses on responding to and recovering from any significant breach as well as mitigating any impact to our business. Significant breaches are escalated to the Cybersecurity Governance Committee for analysis and guidance.
Depending on the severity and impact of a cybersecurity threat, the audit committee and the board of directors would be notified of an incident and kept informed of the mitigation and remediation efforts.
The Cybersecurity Governance Committee then determines reporting obligations, designates an incident manager, and oversees containment, eradication, and recovery. Depending on the severity and impact of a cybersecurity threat, the audit committee and the board of directors would be notified of an incident and kept informed of the mitigation and remediation efforts.
Two members of our audit committee hold cybersecurity certifications: Ms. Sears holds a Cyber Risk and Strategy Certification from Diligent Institute; and Ms. Barbe holds a CERT Certificate in Cybersecurity Oversight from the National Association of Corporate Directors.
Ms. Barbe, the chairperson of the nominating and corporate governance committee of the board, holds a CERT Certificate in Cybersecurity Oversight from the National Association of Corporate Directors. Mr.
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In performing his role, our CISO regularly performs the following: review of enterprise cybersecurity risks, controls, program policy, processes, and training; oversight of policy and program development, implementation, and updates; and information to senior leadership about cybersecurity-related issues and activities affecting the organization.
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In performing his role, our CISO oversees cybersecurity risk assessments, policy development, training, and incident reporting, while applying industry best practices to identify cybersecurity risks and threats and assess and guide mitigation strategies effectively. Relevant cyber certifications of our CISO include Certified Information Systems Security Professional (“CISSP”) and Certified Information Security Manager (“CISM”).
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Our CISO is regularly apprised of enterprise cybersecurity events, threats, and activities, including with respect to incidents, protection vulnerabilities, software update needs, and lifecycle status. He possesses a deep understanding of evolving cybersecurity threats, technologies, and industry best practices to identify cybersecurity risks and threats and assess and guide mitigation strategies effectively.
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Our cybersecurity team holds certifications such as CISSP and CISM, supplemented by vendor-specific training and ongoing education.
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Relevant cyber certifications include Certified Information Systems Security Professional and Certified Information Security Manager.
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We have implemented a robust cybersecurity risk governance model, including the Cybersecurity Governance Committee chaired by our CISO and composed of senior leaders including these key members: • Chief Operating Officer — Over 25 years of commercial and strategic leadership experience; skilled in identifying operational and cybersecurity risks and ensuring alignment of security initiatives with business objectives and technology infrastructure. • Chief Legal Officer — Extensive experience as top legal executive; oversees legal and regulatory affairs, including risk management; advises on governance frameworks and board oversight of cybersecurity risk. 55 • Chief Compliance Officer — Over 20 years of legal experience; expertise in SEC regulations and disclosure requirements for cybersecurity risks and incidents; oversees ERM program alignment of cybersecurity initiatives with business strategy. • Vice President of Internal Audit — Specialized in detecting internal threats and fraud through advanced audit techniques; integrates cybersecurity risk assessments into ERM and monitors audit recommendations for effectiveness.
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Certifications of our cybersecurity professionals include, but are not limited to: Certified Information Systems Security Professionals from the International Information System Security Certification Consortium; Certified Information Security Manager from Information Systems Audit and Control Association; and focused training/certifications from security vendors on the applications utilized in the management of our cybersecurity program.
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Howard, a member of the audit committee, brings extensive practical experience in, and domain expertise related to, cybersecurity, shaped by his prior service with the SEAL teams and Joint Special Operations of the United States Navy.
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The certifications mentioned above are accompanied by multiple years of direct experience in cybersecurity which provide the framework for the team’s continuous learning of new technologies, processes, trends, and concepts, with additional training obtained through relevant cybersecurity focused conferences.
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We have implemented a robust cybersecurity risk governance model, including the formation of the Cybersecurity Governance Committee chaired by our CISO and composed of key leaders from stakeholder groups throughout our company including our President and Chief Operating Officer, Chief Legal Officer, Chief Compliance Officer, and the head of internal audit, along with other senior members of management.
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Experience of key members of the committee includes: • Our President and Chief Operating Officer, who joined the Company as Chief Operating Officer in November 2017 and has served in his current role since March 2023, has over 25 years of commercial and strategic leadership experience.
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He excels at identifying and mitigating operational risks, including cybersecurity threats that could disrupt critical business processes.
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His contributions to the Cybersecurity Governance Committee include aligning cybersecurity initiatives with broader business strategies and ensuring cybersecurity considerations are integrated into information technology infrastructure and operations. • Our Chief Legal Officer, serving since August 2015, brings extensive experience as the top legal executive across various organizations.
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At Invitation Homes, he oversees all legal and regulatory affairs, including direct supervision of the risk management department.
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His expertise includes advising on governance frameworks, supporting board oversight of cybersecurity risk management, and addressing litigation trends and risks associated with cybersecurity breaches. • Our Chief Compliance Officer, who joined the Company in July 2016 and has served in her current role since July 2024, is an experienced public company counsel with over 20 years of combined private practice and in-house experience.
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She provides expertise in SEC regulations and disclosure requirements, including cybersecurity-related guidance, and ensures compliance with legal standards for disclosing material cybersecurity risks and incidents. In collaboration with internal audit, she helps oversee our ERM program to align cybersecurity initiatives with broader business strategies.
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She also brings a thorough understanding of breach notification requirements and regulatory responses to cybersecurity incidents. • Our Vice President of Internal Audit, serving since November 2017, brings specialized expertise in identifying internal threats and potential fraud related to cybersecurity through advanced audit techniques.
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Generally, when a breach or suspected breach is identified, the information security team would escalate the issue to the Cybersecurity Governance Committee for initial analysis and guidance.
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The Cybersecurity Governance Committee, in 52 consultation with appropriate subject matter experts, would be responsible for determining whether a particular incident alone or in combination with other factors, triggers any reporting and/or further notification responsibilities.
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The Cybersecurity Governance Committee would designate the primary manager of a cybersecurity incident, identify the parties who should be informed about the incident, and oversee the processes for containment, eradication, recovery, and resolution of the incident.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+2 added−1 removed6 unchanged
Biggest changeFor the years ended December 31, 2024 and 2023, dividends per share held for the entire year were estimated to be taxable as follows: 2024 2023 Amount (1) Percentage Amount (1) Percentage Ordinary income $ 0.80 70.8 % $ 0.97 73.5 % Capital gains (2) 0.26 23.0 % 0.28 21.2 % Unrecaptured Section 1250 (2) 0.07 6.2 % 0.07 5.3 % Total $ 1.13 100.0 % $ 1.32 100.0 % (1) Amounts are displayed in actual dollars per share; all section references are to the Code unless otherwise specified.
Biggest changeFor the years ended December 31, 2025 and 2024, dividends per share held for the entire year were estimated to be taxable as follows: 2025 2024 Amount (1) Percentage Amount (1) Percentage Ordinary income $ 0.94 80.3 % $ 0.80 70.8 % Capital gains (2) 0.18 15.4 % 0.26 23.0 % Unrecaptured Section 1250 (2) 0.05 4.3 % 0.07 6.2 % Total $ 1.17 100.0 % $ 1.13 100.0 % (1) Amounts are displayed in actual dollars per share; all section references are to the Code unless otherwise specified.
No. 115-97, §13001(b). 54 Stock Performance Graph The following graph shows the total stockholder return of an investment of $100 cash on December 31, 2019 for (1) our common stock, (2) the S&P 500 Total Return Index, and (3) the MSCI US REIT (RMS) Total Return Index. All values assume reinvestment of the full amount of all dividends.
No. 115-97, §13001(b). 58 Stock Performance Graph The following graph shows the total stockholder return of an investment of $100 cash on December 31, 2020 for (1) our common stock, (2) the S&P 500 Total Return Index, and (3) the MSCI US REIT (RMS) Total Return Index. All values assume reinvestment of the full amount of all dividends.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is listed on the New York Stock Exchange under the symbol “INVH.” Holders As of February 26, 2025, there were 41 holders of record of 612,689,592 shares of common stock outstanding.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is listed on the New York Stock Exchange (NYSE) and NYSE Texas, Inc. under the symbol “INVH.” Holders As of February 18, 2026, there were 41 holders of record of 609,386,093 shares of common stock outstanding.
Removed
Cumulative Total Returns as of December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Invitation Homes Inc. 100.00 101.19 157.43 105.41 126.19 122.25 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 MSCI US REIT Index 100.00 92.43 132.23 99.82 113.54 123.47 Repurchases of Equity Securities We made no repurchases of our common stock during the three months ended December 31, 2024.
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Cumulative Total Returns as of December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 Invitation Homes Inc. 100.00 155.58 104.17 124.71 120.81 109.12 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 MSCI US REIT Index 100.00 143.06 108.00 122.84 133.59 137.53 59 Repurchases of Equity Securities We made the following share repurchases during the three months ended December 31, 2025: 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) October 1 — October 31, 2025 — $ — — $ 500,000 November 1 — November 30, 2025 — — — 500,000 December 1 — December 31, 2025 2,232,685 27.43 2,232,685 438,765 Total 2,232,685 $ 27.43 2,232,685 (1) Average Price Paid Per Share excludes cash paid for legal fees and commissions.
Added
(2) On October 28, 2025, our board of directors authorized a share repurchase program pursuant to which we may acquire shares of our common stock up to an aggregate purchase price of $500.0 million (the “Share Repurchase Program”) in the open market or negotiated transactions, including through Rule 10b5-1 plans. The Share Repurchase Program does not have an expiration date.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeWe cannot currently predict the timing, outcome, or scope of this inquiry. 58 Our Portfolio The following table provides summary information regarding our total and Same Store portfolios as of and for the year ended December 31, 2024 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 7,326 96.5% $3,085 $1.81 11.1 % Northern California 4,127 97.5% 2,720 1.72 5.8 % Seattle 3,957 97.3% 2,863 1.49 5.8 % Phoenix 9,246 97.0% 2,049 1.21 9.7 % Las Vegas 3,405 96.7% 2,192 1.12 3.8 % Denver 2,728 96.8% 2,547 1.39 3.4 % Western United States Subtotal 30,789 96.9% 2,553 1.46 39.6 % Florida: South Florida 8,180 96.4% 3,015 1.61 12.1 % Tampa 9,543 94.0% 2,286 1.21 10.6 % Orlando 6,794 96.2% 2,232 1.19 7.6 % Jacksonville 2,005 96.8% 2,171 1.09 2.2 % Florida Subtotal 26,522 95.4% 2,494 1.32 32.5 % Southeast United States: Atlanta 12,623 95.3% 2,030 0.98 12.6 % Carolinas 6,005 94.6% 2,047 0.96 5.5 % Southeast United States Subtotal 18,628 95.1% 2,036 0.98 18.1 % Texas: Houston 2,347 95.0% 1,915 0.96 2.2 % Dallas 3,158 93.6% 2,248 1.09 3.4 % Texas Subtotal 5,505 94.0% 2,103 1.04 5.6 % Midwest United States: Chicago 2,468 96.9% 2,381 1.48 2.8 % Minneapolis 1,061 95.9% 2,308 1.18 1.2 % Midwest United States Subtotal 3,529 96.6% 2,359 1.38 4.0 % Other (5) : 165 46.9% 2,068 1.04 0.2 % Total / Average 85,138 95.8% $2,387 $1.27 100.0 % Same Store Total / Average 76,601 97.3% $2,392 $1.28 92.0 % (1) As of December 31, 2024.
Biggest changeIn December 2025, the SEC notified us that it had concluded this inquiry and did not intend to recommend any enforcement action. 63 Our Portfolio The following table provides summary information regarding our total and Same Store portfolios as of and for the year ended December 31, 2025 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 7,100 95.8% $3,194 $1.87 10.9 % Northern California 3,997 97.1% 2,791 1.76 5.5 % Seattle 3,908 97.4% 2,943 1.53 5.6 % Phoenix 9,200 96.7% 2,074 1.22 9.5 % Las Vegas 3,391 96.6% 2,244 1.14 3.7 % Denver 2,954 93.9% 2,633 1.43 3.6 % Western United States Subtotal 30,550 96.4% 2,613 1.49 38.8 % Florida: South Florida 8,058 95.4% 3,118 1.67 11.9 % Tampa 9,702 93.1% 2,305 1.22 10.7 % Orlando 6,973 95.6% 2,274 1.21 7.7 % Jacksonville 2,158 94.6% 2,194 1.11 2.1 % Florida Subtotal 26,891 94.5% 2,541 1.35 32.4 % Southeast United States: Atlanta 12,624 95.4% 2,097 1.01 12.6 % Carolinas 6,157 93.7% 2,098 1.00 6.1 % Southeast United States Subtotal 18,781 94.9% 2,097 1.01 18.7 % Texas: Houston 2,559 92.0% 1,952 0.98 2.3 % Dallas 3,554 90.9% 2,264 1.11 3.6 % Texas Subtotal 6,113 91.1% 2,139 1.06 5.9 % Midwest United States: Chicago 2,448 95.2% 2,499 1.56 2.8 % Minneapolis 1,035 94.4% 2,414 1.23 1.2 % Midwest United States Subtotal 3,483 94.9% 2,474 1.45 4.0 % Other (5) : 374 68.4% 2,128 1.11 0.2 % Total / Average 86,192 95.0% $2,439 $1.29 100.0 % Same Store Total / Average 76,819 96.8% $2,450 $1.31 91.7 % (1) As of December 31, 2025.
Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) rent and non-refundable deposits associated with pets; (iii) revenues from value-add services such as smart homes, internet and media packages, home liability insurance, and HVAC replacement filters; and (iv) various other fees, including late fees and lease termination fees, among others.
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.
Depreciation and Amortization We recognize depreciation and amortization expense associated with our homes and other capital expenditures over the expected useful lives of the assets. Casualty Losses, Impairment, and Other Casualty losses, impairment, and other represents provisions for impairment when the carrying amount of our single-family residential properties is not recoverable and casualty (gains) losses, net of any insurance recoveries.
Depreciation and Amortization We recognize depreciation and amortization expense associated with our homes and other capital expenditures 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.
Once a property is ready for its intended use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred, and we capitalize expenditures that improve or extend the life of a home and for certain furniture and fixtures additions.
Once a property is ready for its intended use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred. We capitalize expenditures that improve or extend the life of a home and for certain furniture and fixtures additions.
The period of time to market and lease a property can vary greatly and is impacted by local 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 elevated interest rates, political dissension, and labor shortfalls which could adversely affect demand for our properties.
The period of time to market and lease a property can vary greatly and is impacted by local 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, elevated interest rates, political dissension, and labor shortfalls which could adversely affect demand for our properties.
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about the effect of matters that are inherently uncertain and that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. For a discussion of recently-issued and adopted accounting standards, see Part IV.
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about the effect of matters that are inherently uncertain and that affect the amounts reported on the consolidated financial statements and accompanying notes. Actual results could ultimately differ from those estimates. For a discussion of recently-issued and adopted accounting standards, see Part IV.
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; severance expense; casualty (gains) losses, net; and (gains) losses on investments in equity and other securities, net, as applicable.
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; severance expense; casualty (gains) losses and reserves, net; and (gains) losses on investments in equity and other securities, net, as applicable.
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 61 ordinary repairs and maintenance thereafter are expensed as incurred, and we capitalize expenditures that improve or extend the life of a home.
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.
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.
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 65 competition for our target assets.
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.
Specifically, the collateral within individual borrower 73 entities may underperform, resulting in cash flow shortfalls for debt service while consolidated cash flows are sufficient to fund our operations.
For those homes for which a change in an event or circumstance was identified in the most recent impairment analysis, a 10% decrease in the estimated fair value of those homes may have resulted in an increase in impairment expense of $0.4 million. • Single-Family Residential Properties Held for Sale: From time to time, we may identify single-family residential properties to be sold.
For those homes for which a change in an event or circumstance was identified in the most recent impairment analysis, a 10% decrease in the estimated fair value of those homes may have resulted in an increase in impairment expense of $1.0 million. • Single-Family Residential Properties Held for Sale: From time to time, we may identify single-family residential properties to be sold.
We evaluate multiple information sources and perform a number of internal analyses, each of which are important components of our process with no one information source or analysis being necessarily determinative. There have not been any significant process changes in our review for impairment during the current reporting period.
We evaluate multiple information sources and perform a number of internal analyses, each of which are important components of our process with no single information source or analysis being necessarily determinative. There have not been any significant process changes in our review for impairment during the current reporting period.
We believe our rental income, net of total expenses, will generally provide cash flow sufficient to fund operations and dividend payments on a near-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 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.
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 (loss) from investments in unconsolidated joint ventures that we earn.
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.
To the extent an impairment has occurred, the carrying amount of our investment in a property is adjusted to its estimated fair value. The process whereby we assess our single-family residential properties for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty.
To the extent an impairment has occurred, the carrying amount of our investment in a property is adjusted to its estimated fair value. The process to assess our single-family residential properties for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty.
Item 15. “Exhibits and Financial Statements — Note 7 of Notes to Consolidated Financial Statements” and “— Note 8 of Notes to Consolidated Financial Statements.” (2) Includes estimated interest payments through the extended maturity date, as applicable, based on the principal amount outstanding as of December 31, 2024.
Item 15. “Exhibits and Financial Statements — Note 7 of Notes to Consolidated Financial Statements” and “— Note 8 of Notes to Consolidated Financial Statements.” (2) Includes estimated interest payments through the extended maturity date, as applicable, based on the principal amount outstanding as of December 31, 2025.
If the percentage allocated to buildings and improvements versus land for the homes acquired during the year ended December 31, 2024 was increased or decreased by 500 bps, our annualized depreciation expense would have changed by approximately $1.1 million. • Cost Capitalization: We incur costs to acquire, stabilize, and prepare our single-family residential properties to be leased.
If the percentage allocated to buildings and improvements versus land for the homes acquired during the year ended December 31, 2025 was increased or decreased by 500 bps, our annualized depreciation expense would have changed by approximately $1.2 million. • Cost Capitalization: We incur costs to acquire, stabilize, and prepare our single-family residential properties to be leased.
We continue to actively manage the impact of inflation 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.
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.
If the useful lives for costs capitalized during the year ended December 31, 2024 were increased or decreased by 10%, our annualized depreciation expense would have changed by approximately $5.0 million. • Provisions for Impairment: We continuously evaluate, by property, whether there are any events or changes in circumstances indicating that the carrying amount of our single-family residential properties may not be recoverable.
If the useful lives for costs capitalized during the year ended December 31, 2025 were increased or decreased by 10%, our annualized depreciation expense would have changed by approximately $6.0 million. • Provisions for Impairment: We continuously evaluate, by property, whether there are any events or changes in circumstances indicating that the carrying amount of our single-family residential properties may not be recoverable.
(2) Represents average occupancy for the year ended December 31, 2024. (3) Represents average monthly rent for the year ended December 31, 2024. (4) Represents the percentage of rental revenues and other property income generated in each market for the year ended December 31, 2024.
(2) Represents average occupancy for the year ended December 31, 2025. (3) Represents average monthly rent for the year ended December 31, 2025. (4) Represents the percentage of rental revenues and other property income generated in each market for the year ended December 31, 2025.
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.
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.
As a result of the amendments 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.
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.
For similar operating and financial data and discussion of our results for the year ended December 31, 2023 compared to the year ended December 31, 2022, refer to Part II. Item 7.
For similar operating and financial data and discussion of our results for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to Part II. Item 7.
We also place a strong emphasis on the impact we have in our communities and to the environment in general, and we continue to develop programs that demonstrate those commitments.
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.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 For similar operating and financial data and discussion of our results for the year ended December 31, 2023 compared to the year ended December 31, 2022, refer to Part II. Item 7.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 For similar operating and financial data and discussion of our results for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to Part II. Item 7.
NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; casualty losses, impairment, and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; management fee revenues; and income (losses) from investments in unconsolidated joint ventures.
NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; casualty losses, impairment, and other; gain on sale of property, net of tax; other income and expenses; management fee revenues; and (income) losses from investments in unconsolidated joint ventures.
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 $1,180.0 million as of December 31, 2024.
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 $1,605.0 million as of December 31, 2025.
“Exhibits and Financial Statement Schedules — Note 2 of Notes to Consolidated Financial Statements.” Critical accounting policies are those accounting estimates that management believes are important to the portrayal of our financial condition and results of operations 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. 71 Investments in Single-Family Residential Properties The following significant accounting policies affect the acquisition, disposition, recognition, classification, and fair value measurements (on a nonrecurring basis) related to our owned portfolio of approximately 85,000 single-family residentia l properties located primarily in 16 core markets across the United States as of December 31, 2024 .
“Exhibits and Financial Statement Schedules — Note 2 of Notes to Consolidated Financial Statements.” Critical accounting policies are those accounting estimates that management believes are important to the portrayal of our financial condition and results of operations 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. 76 Investments in Single-Family Residential Properties The following significant accounting policies affect the acquisition, disposition, recognition, classification, and fair value measurements (on a nonrecurring basis) related to our owned portfolio of 86,192 single-family residentia l properties located primarily in 16 core markets across the United States as of December 31, 2025.
For our Same Store portfolio, renewal lease net effective rental rate growth averaged 4.9% and 6.9% for the years ended December 31, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 1.0% and 4.0% for the years ended December 31, 2024 and 2023, respectively.
For our Same Store portfolio, renewal lease net effective rental rate growth averaged 4.6% and 4.9% for the years ended December 31, 2025 and 2024, respectively, and new lease net effective rental rate growth averaged (0.6)% and 0.9% for the years ended December 31, 2025 and 2024, respectively.
Renewal lease net effective rental rate growth for the total portfolio averaged 4.9% and 6.9% for the years ended December 31, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 1.0% and 4.0% for the years ended December 31, 2024 and 2023, respectively.
Renewal lease net effective rental rate growth for the total portfolio averaged 4.6% and 4.9% for the years ended December 31, 2025 and 2024, respectively, and new lease net effective rental rate growth for the total portfolio averaged (0.8)% and 1.0% for the years ended December 31, 2025 and 2024, respectively.
If an event of default occurs for our mortgage loan or for our secured term loan, our loan agreements provide 68 certain remedies, 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.
If an event of default occurs for our secured debt, our loan agreements provide certain remedies, 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.
“Management’s Discussion and Analysis of Financial Condition and Results of Operation — Cash Flows” of our 2023 10-K .
“Management’s Discussion and Analysis of Financial Condition and Results of Operation — Cash Flows” of our 2024 10-K .
(3) Interest is calculated at rates in effect as of December 31, 2024, including the indexed rate, any credit spread adjustment, and any applicable margin, and that rate is held constant until the maturity date. As of December 31, 2024, Term SOFR was 4.33%.
(3) Interest is calculated at rates in effect as of December 31, 2025, including the indexed rate, any credit spread adjustment, and any applicable margin, and that rate is held constant until the maturity date. As of December 31, 2025, Term SOFR was 3.69%.
(5) Includes the related unused commitment fee, as applicable. (6) Includes payments (receipts) related to interest rate swap obligations calculated using Term SOFR.
(5) Includes the related facility fee, as applicable. (6) Includes payments (receipts) related to interest rate swap obligations calculated using Term SOFR.
To do so, we provide information regarding the performance of our Same Store portfolio. As of December 31, 2024, our Same Store portfolio consisted of 76,601 single-family rental homes. Revenues For the years ended December 31, 2024 and 2023, total revenues were $2,618.9 million and $2,432.3 million, respectively.
To do so, we provide information regarding the performance of our Same Store portfolio. As of December 31, 2025, our Same Store portfolio consisted of 76,819 single-family rental homes. Revenues For the years ended December 31, 2025 and 2024, total revenues were $2,729.3 million and $2,618.9 million, respectively.
(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. 67 (5) The Secured Term Loan 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 one month LIBOR as provided for in our loan agreement, including applicable servicing fees, subject to certain adjustments as outlined in the loan agreement.
(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. 72 (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.
Weighted average vested OP Units of 1,954,212, 1,835,686, and 2,338,999 for the years ended December 31, 2024, 2023, and 2022, respectively, are included in the denominator for the computations of FFO, Core FFO, and AFFO per common share — diluted.
Weighted average vested OP Units of 2,068,892, 1,954,212 and 1,835,686 for the years ended December 31, 2025, 2024, and 2023, respectively, are included in the denominator for the computations of FFO, Core FFO, and AFFO per common share — diluted.
As of December 31, 2024, $1,180.0 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.
As of December 31, 2025, $1,605.0 million of our revolving facility (the “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.
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 72.1% of our rental revenues and other property income during the year ended December 31, 2024.
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 71.2% of our rental revenues and other property income during the year ended December 31, 2025.
For the Same Store portfolio, a home remained unoccupied on average for 40 and 38 days between residents for the years ended December 31, 2024 and 2023, respectively.
For the Same Store portfolio, a home remained unoccupied on average for 47 and 40 days between residents for the years ended December 31, 2025 and 2024, respectively.
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 a home to prepare it for rental.
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.
For the years ended December 31, 2024 and 2023, total portfolio rental revenues and other property income totaled $2,549.0 million and $2,418.6 million, respectively, an increase of 5.4%, driven by an increase in average monthly rent per occupied home and a 996 home increase between periods in the average number of homes owned, partially offset by a 80 bps reduction in average occupancy.
For the years ended December 31, 2025 and 2024, total portfolio rental revenues and other property income totaled $2,642.0 million and $2,549.0 million, respectively, an increase of 3.6%, driven by an increase in average monthly rent per occupied home and a 999 home increase between periods in the average number of homes owned, partially offset by an 80 bps reduction in average occupancy.
Other property income for the year ended December 31, 2024 increased compared to December 31, 2023, primarily due to enhanced value-add revenue programs and increased utility billbacks as new leases are entered into, among other things. For the years ended December 31, 2024 and 2023, management fee revenues totaled $70.0 million and $13.6 million, respectively.
Other property income for the year ended December 31, 2025 increased compared to December 31, 2024, primarily due to enhanced value-add revenue programs and increased utility recoveries as new leases are entered into, among other things. For the years ended December 31, 2025 and 2024, management fee revenues totaled $87.3 million and $70.0 million, respectively.
Other, net Other, net increased to $54.0 million of expense for the year ended December 31, 2024 from $2.4 million of expense for the year ended December 31, 2023, primarily due to settlement and other costs incurred in connection with the resolution of an inquiry from the FTC and the legal dispute entitled City of San Diego et al v.
Other, net Other, net decreased to $4.3 million of expense for the year ended December 31, 2025 from $53.0 million of expense for the year ended December 31, 2024, primarily due to settlement and other costs incurred in connection with the resolution of an inquiry from the FTC and the legal dispute entitled City of San Diego et al v.
(6) Incremental shares attributed to non-vested share-based awards totaling 1,080,300, 1,394,924, and 1,341,786 for the years ended December 31, 2024, 2023, and 2022, respectively, are included in weighted average common shares outstanding in the calculation of net income per common share — diluted.
(5) Incremental shares attributed to non-vested share-based awards totaling 229,485, 1,080,300 and 1,394,924 for the years ended December 31, 2025, 2024, and 2023, respectively, are included in weighted average common shares outstanding in the calculation of net income per common share — diluted.
Additionally, we have commitments, which are not reflected in the table above, to make additional capital contributions to our joint ventures. As of December 31, 2024, our remaining equity commitments to our joint ventures total $177.0 million.
Additionally, we have commitments, which are not reflected in the table above, to make additional capital contributions to our joint ventures. As of December 31, 2025, our remaining equity commitments to our joint ventures total $137.9 million.
Expenses For the years ended December 31, 2024 and 2023, total expenses were $2,326.7 million and $2,074.8 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses. For the year ended December 31, 2024, property operating and maintenance expense increased to $935.3 million from $880.3 million for the year ended December 31, 2023.
Expenses For the years ended December 31, 2025 and 2024, total expenses were $2,341.7 million and $2,326.7 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses. For the year ended December 31, 2025, property operating and maintenance expense increased to $985.6 million from $935.3 million for the year ended December 31, 2024.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K which was filed with the SEC on February 21, 2024 (the “2023 10-K”).
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K which was filed with the SEC on February 27, 2025 (the “2024 10-K”).
W e also made dividend and distribution payments totaling $692.6 million during the year ended December 31, 2024 compared to $640.5 million during the year ended December 31, 2023, which were funded by cash flows from operations.
W e made dividend and distribution payments totaling $715.4 million during the year ended December 31, 2025 compared to $692.6 million during the year ended December 31, 2024, which were funded by cash flows from operations.
(7) For unsecured debt and total debt, the weighted average interest rate is calculated based on December 31, 2024, Term SOFR of 4.33% adjusted for a 0.10% credit spread adjustment (Adjusted SOFR), as appropriate, and includes the impact of interest rate swap agreements effective as of that date.
(8) For unsecured debt and total debt, the weighted average interest rate is calculated based on December 31, 2025 Term SOFR of 3.69% adjusted for a 0.10% credit spread adjustment (Adjusted SOFR), where appropriate, and includes the impact of interest rate swap agreements effective as of that date.
(2) For the years ended December 31, 2024, 2023, and 2022, $5,830, $6,963, and $6,493, was recorded in property management expense, respectively, and $22,088, $22,540, and $22,469, was recorded in general and administrative expense, respectively.
(2) For the years ended December 31, 2025, 2024, and 2023, $6,419, $5,830, and $6,963, was recorded in property management expense, respectively, and $21,411, $22,088, and $22,540, was recorded in general and administrative expense, respectively.
The decrease in net cash used in investing activities resulted primarily from the combined effect of the following significant changes in cash flows during the year ended December 31, 2024 compared to the year ended December 31, 2023: (1) a decrease in cash used for the acquisition 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 joint ventures ; and (4) an increase in cash provided from repayment proceeds from retained debt securities .
The net increase in cash used in investing activities resulted primarily from the combined effect of the following significant changes in cash flows during the year ended December 31, 2025 compared to the year ended December 31, 2024: (1) a decrease in cash proceeds received from the sale of single-family homes; (2) a decrease in cash from repayment proceeds from retained debt securities; (3) an increase in cash used for other capital expenditures for our homes; and (4) an increase in cash used for investments in land held for development.
Our near-term liquidity requirements consist primarily of: • acquisition of homes currently under contract, including commitments to homebuilders; • renovation of newly-acquired homes; • 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.
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.
If market values less disposal costs for our properties that were classified as held for sale as of December 31, 2024 were 10% lower or higher, our impairment expense related to those properties would have changed by approximately $0.4 million. 72 Segment Reporting Our principal business is acquiring, renovating, leasing, operating, and managing single-family residential properties.
If market values less disposal costs for our properties that were classified as held for sale as of December 31, 2025 were 10% lower or higher, our impairment expense related to those properties would not have been material. 77 Segment Reporting Our principal business is acquiring, renovating, leasing, operating, and managing single-family residential properties.
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 acquisitions and renovations, and financing arrangements.
“Risk Factors” 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 acquisitions and renovations, and financing arrangements.
During the year ended December 31, 2024, casualty losses, impairment, and other expenses were comprised of net casualty losses of $82.4 million, including the recognition of $55.1 million for estimated losses and damages related to Hurricanes Milton, Beryl, Debby, and Helene , net of estimated insurance proceeds, additional storm activity unrelated to hurricanes during the year, and impairment losses of $0.5 million on our single-family residential properties.
D uring the year ended December 31, 2024 , casualty losses, impairment, and other expenses were comprised of net casualty losses of $82.4 million, including the recognition of $55.1 million for estimated losses and damages related to Hurricanes Milton, Beryl, Debby, and Helene, net of estimated insurance proceeds, additional storm activity unrelated to hurricanes during the year, and impairment losses of $0.5 million on our single-family residential properties. 69 Gain on Sale of Property, net of tax Gain on sale of property, net of tax was $218.2 million and $244.6 million for the years ended December 31, 2025 and 2024, respectively.
These factors, which include labor shortages and inflationary increases in labor and material costs, have impacted and may continue to impact certain aspects of our business. In addition, consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy, declines in income or asset values, and other macroeconomic factors.
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.
Average occupancy for the years ended December 31, 2024 and 2023 for the total portfolio was 95.8% and 96.6%, respectively. Average monthly rent per occupied home for the total portfolio for the years ended December 31, 2024 and 2023 was $2,387 and $2,303, respectively, a 3.6% increase.
Average occupancy for the years ended December 31, 2025 and 2024 for the total portfolio was 95.0% and 95.8%, respectively. Average monthly rent per occupied home for the total portfolio for the years ended December 31, 2025 and 2024 was $2,439 and $2,387, respectively, a 2.2% increase.
Financing Activities Net cash used in financing activities was $1,093.7 million for the year ended December 31, 2024 compared to net cash provided by financing activities of $110.0 million for the year ended December 31, 2023. The change between periods is primarily due to the following financing transactions.
Financing Activities Net cash used in financing activities was $618.5 million for the year ended December 31, 2025 compared to $1,093.7 million for the year ended December 31, 2024. The change between periods is primarily due to the following financing transactions.
(2) Includes $22,088, $22,540, and $22,469 of share-based compensation expense for the years ended December 31, 2024, 2023, and 2022, respectively. (3) Includes our share from unconsolidated joint ventures. The year ended December 31, 2024 includes $55,100 of estimated losses and damages related to Hurricanes Milton, Beryl, Debby, and Helene.
(2) Includes $21,411, $22,088, and $22,540 of share-based compensation expense for the years ended December 31, 2025, 2024, and 2023, respectively. (3) The year ended December 31, 2024 included $55,100 of estimated losses and damages related to Hurricanes Milton, Beryl, Debby, and Helene.
Such macroeconomic factors coupled with uncertainty in financial markets, and a general decline in business activity and/or consumer confidence could adversely affect (i) our occupancy levels, our 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, and (iv) the value of our homes and our business that could cause us to recognize impairments in value of our tangible assets or goodwill.
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, and (iv) the value of our homes and our business that could cause us to recognize impairments in the value of our tangible assets or goodwill.
These homes help meet the needs of a growing share of Americans who prefer the ease of a leasing lifestyle over the burden of owning a home. We provide our residents access to updated homes with features they value, as well as close proximity to jobs and access to good schools.
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 60 access to updated homes with features they value, as well as close proximity to jobs and good schools.
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.
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.
During the year ended December 31, 2024, we issued $494.3 million of unsecured notes, net of discount, and refinanced the 2020 Credit Facility. The proceeds were used to repay the existing credit facility and $645.7 million of mortgage loans, including the voluntary prepayment of the IH 2018-4 mortgage loan, and to fund $54.2 million of financing costs.
During the year ended December 31, 2024, we issued $494.3 million of unsecured notes, net of discount, and entered into a replacement credit facility. The proceeds from this refinancing were used to repay the existing credit facility and $645.7 million of secured debt, including the voluntary prepayment of the IH 2018-4 debt, and to fund $54.2 million of financing costs.
During the years ended December 31, 2024 and 2023, we acquired 2,072 and 2,877 homes, respectively, and sold 1,501 and 1,423 homes, respectively. During the years ended December 31, 2024 and 2023, we owned an average of 84,718 and 83,722 single-family rental homes, respectively.
During the years ended December 31, 2025 and 2024, we acquired 2,410 and 2,072 homes, respectively, and sold 1,356 and 1,501 homes, respectively. During the years ended December 31, 2025 and 2024, we owned an average of 85,717 and 84,718 single-family rental homes, respectively.
“Risk Factors.” 66 Long-Term Debt Strategy The following table summarizes certain information about our debt obligations as of December 31, 2024 ($ 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) $ 989,151 $ 933,652 4.23% 2.4 $ — Secured Term Loan (5) 403,046 403,046 3.59% 6.4 — Total secured 1,392,197 $ 1,336,698 4.04% 3.6 — Unsecured: 2024 Term Loan Facility (6) $ 1,750,000 S +85 bps 4.7 $ 1,750,000 2022 Term Loan Facility (6) 725,000 S + 115 bps 4.5 725,000 Revolving Facility (6) 570,000 S + 78 bps 4.7 570,000 Unsecured Notes — May 2028 150,000 2.46% 3.4 — Unsecured Notes — November 2028 600,000 2.30% 3.9 — Unsecured Notes — August 2030 450,000 5.45% 5.6 — Unsecured Notes — August 2031 650,000 2.00% 6.6 — Unsecured Notes — April 2032 600,000 4.15% 7.3 — Unsecured Notes — August 2033 350,000 5.50% 8.6 — Unsecured Notes — January 2034 400,000 2.70% 9.0 — Unsecured Notes — February 2035 500,000 4.88% 10.1 Unsecured Notes — May 2036 150,000 3.18% 11.4 — Total unsecured (7) 6,895,000 3.90% 6.0 3,045,000 Total debt (7) 8,287,197 3.93% 5.6 $ 3,045,000 Unamortized discounts (24,336) Deferred financing costs, net (60,559) Total debt per balance sheet 8,202,302 Retained certificates (55,499) Cash and restricted cash, excluding security deposits and letters of credit (235,649) Deferred financing costs, net 60,559 Unamortized discounts 24,336 Net debt $ 7,996,049 (1) For detailed information about and definition of each of our financing arrangements see Part IV.
“Risk Factors.” 71 Long-Term Debt Strategy The following table summarizes certain information about our debt obligations as of December 31, 2025 ($ 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) $ 988,013 $ 932,514 4.23% 1.4 $ — IH 2019-1 (5) 400,386 400,386 3.59% 5.4 — Total secured 1,388,399 $ 1,332,900 4.04% 2.6 — Unsecured: 2024 Term Loan Facility (6) $ 1,750,000 S + 85 bps 3.7 $ 1,750,000 2022 Term Loan Facility (6)(7) 725,000 S + 85 bps 4.3 725,000 Revolving Facility (6) 145,000 S + 78 bps 3.7 145,000 Unsecured Notes — May 2028 150,000 2.46% 2.4 — Unsecured Notes — November 2028 600,000 2.30% 2.9 — Unsecured Notes — August 2030 450,000 5.45% 4.6 — Unsecured Notes — August 2031 650,000 2.00% 5.6 — Unsecured Notes — April 2032 600,000 4.15% 6.3 — Unsecured Notes — January 2033 600,000 4.95% 7.0 — Unsecured Notes — August 2033 350,000 5.50% 7.6 — Unsecured Notes — January 2034 400,000 2.70% 8.0 — Unsecured Notes — February 2035 500,000 4.88% 9.1 — Unsecured Notes — May 2036 150,000 3.18% 10.4 — Total unsecured (8) 7,070,000 3.91% 5.4 2,620,000 Total debt (8) 8,458,399 3.93% 4.9 $ 2,620,000 Unamortized discounts (24,171) Deferred financing costs, net (54,208) Total debt per balance sheet 8,380,020 Retained certificates (55,499) Cash and restricted cash, excluding security deposits and letters of credit (167,472) Deferred financing costs, net 54,208 Unamortized discounts 24,171 Net debt $ 8,235,428 (1) For detailed information about and definition of each of our financing arrangements, see Part IV.
As of December 31, 2024, we wholly own 85,138 homes for lease, jointly own 7,622 homes for lease, and provide professional third-party property and asset management services for an additional 17,678 homes, all of which are primarily located in 16 core markets across the country.
As of December 31, 2025, we wholly own 86,192 homes for lease, jointly own 8,006 homes for lease, and provide professional third-party property and asset management services for an additional 15,866 homes, all of which are primarily located in 16 core markets across the country.
Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies. 76 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 Years Ended December 31, (in thousands, except shares and per share data) 2024 2023 2022 Net income available to common stockholders $ 453,164 $ 518,774 $ 382,668 Add (deduct) adjustments from net income to derive FFO: Net income available to participating securities 753 696 661 Non-controlling interests 1,448 1,558 1,470 Depreciation and amortization on real estate assets 699,474 663,398 629,301 Impairment on depreciated real estate investments 506 427 310 Net gain on sale of previously depreciated investments in real estate (244,550) (183,540) (90,699) Depreciation and net gain on sale of investments in unconsolidated joint ventures 14,479 8,704 4,907 FFO 925,274 1,010,017 928,618 Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1) 44,681 36,069 24,326 Share-based compensation expense (2) 27,918 29,503 28,962 Legal settlements (3) 77,000 2,000 7,400 Severance expense 637 977 314 Casualty losses, net (1)(4) 82,700 8,200 28,485 (Gains) losses on investments in equity and other securities, net (1,046) (350) 3,939 Core FFO 1,157,164 1,086,416 1,022,044 Recurring capital expenditures (1) (170,927) (163,051) (156,147) Adjusted FFO $ 986,237 $ 923,365 $ 865,897 Net income available to common stockholders Weighted average common shares outstanding — diluted (5)(6)(7) 613,631,617 613,288,708 611,112,396 Net income per common share — diluted (5)(6)(7) $ 0.74 $ 0.85 $ 0.63 FFO, Core FFO, and Adjusted FFO Weighted average common shares and OP Units outstanding — diluted (5)(6)(7) 615,881,670 615,367,734 613,669,133 FFO per common share — diluted (5)(6)(7) $ 1.50 $ 1.64 $ 1.51 Core FFO per common share — diluted (5)(6)(7) $ 1.88 $ 1.77 $ 1.67 AFFO per common share — diluted (5)(6)(7) $ 1.60 $ 1.50 $ 1.41 (1) Includes our share from unconsolidated joint ventures.
Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. 81 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 Years Ended December 31, (in thousands, except shares and per share data) 2025 2024 2023 Net income available to common stockholders $ 586,964 $ 453,164 $ 518,774 Net income available to participating securities 960 753 696 Non-controlling interests 1,985 1,448 1,558 Depreciation and amortization of real estate assets 728,652 699,474 663,398 Impairment on depreciated real estate investments 657 506 427 Net gain on sale of previously depreciated investments in real estate (218,235) (244,550) (183,540) Depreciation and net gain on sale of investments in unconsolidated joint ventures 7,845 14,479 8,704 FFO 1,108,828 925,274 1,010,017 Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1) 26,808 44,681 36,069 Share-based compensation expense (2) 27,830 27,918 29,503 Legal settlements (3) — 77,000 2,000 Severance expense 2,772 637 977 Casualty losses and reserves, net (1)(4) 10,924 82,700 8,200 Gains on investments in equity and other securities, net (318) (1,046) (350) Core FFO 1,176,844 1,157,164 1,086,416 Recurring capital expenditures (1) (173,472) (170,927) (163,051) Adjusted FFO $ 1,003,372 $ 986,237 $ 923,365 Net income available to common stockholders Weighted average common shares outstanding — diluted (5)(6) 613,177,806 613,631,617 613,288,708 Net income per common share — diluted (5)(6) $ 0.96 $ 0.74 $ 0.85 FFO, Core FFO, and Adjusted FFO Weighted average common shares and OP Units outstanding — diluted (5)(6) 615,643,476 615,881,670 615,367,734 FFO per common share — diluted (5)(6) $ 1.80 $ 1.50 $ 1.64 Core FFO per common share — diluted (5)(6) $ 1.91 $ 1.88 $ 1.77 AFFO per common share — diluted (5)(6) $ 1.63 $ 1.60 $ 1.50 (1) Includes our share from unconsolidated joint ventures.
Property Acquisitions and Renovations: Future growth in rental revenues and other property income may be impacted by our ability to identify and acquire homes, our pace of property acquisitions, and the time and cost required to renovate and lease a newly acquired home.
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.
Mandated and proposed tariffs to be imposed by the United States on imports from certain countries and potential counter-tariffs in response could lead to increased costs and supply chain disruptions.
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.
General economic conditions in the United States have fluctuated in recent quarters, and concerns persist regarding adverse macroeconomic conditions, such as inflation, elevated interest rates, political dissension, and labor shortfalls.
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.
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. 74 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 Years Ended December 31, ($ in thousands) 2024 2023 2022 Net income available to common stockholders $ 453,164 $ 518,774 $ 382,668 Net income available to participating securities 753 696 661 Non-controlling interests 1,448 1,558 1,470 Interest expense 366,070 333,457 304,092 Depreciation and amortization 714,326 674,287 638,114 Property management expense (1) 137,490 95,809 87,936 General and administrative (2) 90,612 82,344 74,025 Casualty losses, impairment, and other (3) 82,925 8,596 28,697 Gain on sale of property, net of tax (244,550) (183,540) (90,699) (Gains) losses on investments in equity and other securities, net (1,046) (350) 3,939 Other, net (4) 54,032 2,435 11,261 Management fee revenues (69,978) (13,647) (11,480) Losses from investments in unconsolidated joint ventures 28,445 17,877 9,606 NOI (total portfolio) 1,613,691 1,538,296 $ 1,440,290 Non-Same Store NOI (113,290) (104,116) NOI (Same Store portfolio) (5) $ 1,500,401 $ 1,434,180 (1) Includes $5,830, $6,963, and $6,493 of share-based compensation expense for the years ended December 31, 2024, 2023, and 2022, respectively.
We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store portfolio. 79 The following table presents a reconciliation of net income (as determined in accordance with GAAP) to NOI for our total portfolio and NOI for our Same Store portfolio for each of the periods indicated: For the Years Ended December 31, ($ in thousands) 2025 2024 2023 Net income available to common stockholders $ 586,964 $ 453,164 $ 518,774 Net income available to participating securities 960 753 696 Non-controlling interests 1,985 1,448 1,558 Interest expense 353,327 366,070 333,457 Depreciation and amortization 746,933 714,326 674,287 Property management expense (1) 149,130 137,490 95,809 General and administrative (2) 95,250 90,612 82,344 Casualty losses, impairment, and other (3) . . . . . . . . . . . . . . . . 11,443 82,925 8,596 Gain on sale of property, net of tax (218,235) (244,550) (183,540) Other, net (4) 4,345 52,986 2,085 Management fee revenues (87,339) (69,978) (13,647) Losses from investments in unconsolidated joint ventures 11,607 28,445 17,877 NOI (total portfolio) 1,656,370 1,613,691 $ 1,538,296 Non-Same Store NOI (115,554) (107,434) NOI (Same Store portfolio) (5) $ 1,540,816 $ 1,506,257 (1) Includes $6,419, $5,830, and $6,963 of share-based compensation expense for the years ended December 31, 2025, 2024, and 2023, respectively.
(3) The year ended December 31, 2024, includes $77,000 of settlement costs that resolved an inquiry from the FTC and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs.
(3) The year ended December 31, 2024 included $77,000 of settlement costs that resolved an inquiry from the FTC and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs. (4) The year ended December 31, 2024 included $55,100 of estimated losses and damages related to Hurricanes Milton, Beryl, Debby, and Helene.
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.
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. 80 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.
We continue to actively manage the impact of inflation on 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.
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. Financing Arrangements: Financing arrangements directly impact our interest expense, our various debt instruments, and our ability to acquire and renovate homes.
Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. 73 The following table presents a reconciliation of net income (as determined in accordance with GAAP) to EBITDA, EBITDA re , and Adjusted EBITDA re for each of the periods indicated: For the Years Ended December 31, ($ in thousands) 2024 2023 2022 Net income available to common stockholders $ 453,164 $ 518,774 $ 382,668 Net income available to participating securities 753 696 661 Non-controlling interests 1,448 1,558 1,470 Interest expense 366,070 333,457 304,092 Interest expense in unconsolidated joint ventures 26,333 18,255 3,581 Depreciation and amortization 714,326 674,287 638,114 Depreciation and amortization of investments in unconsolidated joint ventures 13,377 10,469 5,838 EBITDA 1,575,471 1,557,496 1,336,424 Gain on sale of property, net of tax (244,550) (183,540) (90,699) Impairment on depreciated real estate investments 506 427 310 Net (gain) loss on sale of investments in unconsolidated joint ventures 1,215 (1,668) (865) EBITDA re 1,332,642 1,372,715 1,245,170 Share-based compensation expense (1) 27,918 29,503 28,962 Severance expense 637 977 314 Casualty losses, net (2) 82,700 8,200 28,485 (Gains) losses on investments in equity and other securities, net (1,046) (350) 3,939 Other, net (3) 54,032 2,435 11,261 Adjusted EBITDA re $ 1,496,883 $ 1,413,480 $ 1,318,131 (1) For the years ended December 31, 2024, 2023, and 2022, $5,830, $6,963, and $6,493, was recorded in property management expense, respectively, and $22,088, $22,540, and $22,469, was recorded in general and administrative expense, respectively.
Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. 78 The following table presents a reconciliation of net income (as determined in accordance with GAAP) to EBITDA, EBITDA re , and Adjusted EBITDA re for each of the periods indicated: For the Years Ended December 31, ($ in thousands) 2025 2024 2023 Net income available to common stockholders $ 586,964 $ 215,139 $ 453,164 $ 518,774 Net income available to participating securities 960 753 696 Non-controlling interests 1,985 1,448 1,558 Interest expense 353,327 366,070 333,457 Interest expense in unconsolidated joint ventures 25,312 26,333 18,255 Depreciation and amortization 746,933 714,326 674,287 Depreciation and amortization of investments in unconsolidated joint ventures 16,361 13,377 10,469 EBITDA 1,731,842 1,575,471 1,557,496 Gain on sale of property, net of tax (218,235) (244,550) (183,540) Impairment on depreciated real estate investments 657 506 427 Net (gain) loss on sale of investments in unconsolidated joint ventures (8,461) 1,215 (1,668) EBITDA re 1,505,803 1,332,642 1,372,715 Share-based compensation expense (1) 27,830 27,918 29,503 Severance expense 2,772 637 977 Casualty losses and reserves, net (2) 10,924 82,700 8,200 Other, net (3) 4,345 52,986 2,085 Adjusted EBITDA re $ 1,551,674 $ 1,496,883 $ 1,413,480 (1) For the years ended December 31, 2025, 2024, and 2023, $6,419, $5,830, and $6,963, was recorded in property management expense, respectively, and $21,411, $22,088, and $22,540, was recorded in general and administrative expense, respectively.
Net cash provided by operating activities was $1,081.8 million and $1,107.1 million for the years ended December 31, 2024 and 2023, respectively , a decrease of 2.3%.
Net cash provided by operating activities was $1,206.2 million and $1,081.8 million for the years ended December 31, 2025 and 2024, respectively , an increase of 11.5%.
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.
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. 66 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.
Losses from Investments in Unconsolidated Joint Ventures Our share of equity in earnings and/or losses from unconsolidated joint ventures was a net loss of $28.4 million and $17.9 million for the years ended December 31, 2024 and 2023, respectively.
Losses from Investments in Unconsolidated Joint Ventures Our share of losses from unconsolidated joint ventures was $11.6 million and $28.4 million for the years ended December 31, 2025 and 2024, respectively.
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.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2024, our $3,045.0 million of outstanding variable-rate debt was comprised of Revolving Facility of $570.0 million, and Term Loan Facilities of $2,475.0 million. As of December 31, 2024, we had effectively converted 76.4% of these borrowings to a fixed rate through interest rate swap agreements.
Biggest changeAs of December 31, 2025, we had effectively converted 80.2% of these borrowings to a fixed rate through interest rate swap agreements.
This estimate considers the impact of our interest rate swap agreements, interest rate cap agreement, 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.
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.
The primary market risks to which we are exposed are interest rate risk and seasonality. We may in the future use derivative financial instruments to manage, or hedge, interest rate risks related to any borrowings we may have. We may enter into such contracts only with major financial institutions based on their credit ratings and other factors.
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, fluctuating global and United States economic conditions (including inflation, elevated interest rates, and bank failures), geopolitical tensions, and other factors that are beyond our control.
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, fluctuating 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.
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 year ended December 31, 2024.
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 year ended December 31, 2025. 83 Seasonality Our business and related operating results have been, and we believe will continue to be, impacted by seasonal factors throughout the year.
Our variable-rate borrowings bear interest at SOFR, as adjusted if appropriate, plus the applicable spread. 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 $7.2 million.
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 $5.2 million.
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.
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.
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.
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.
Further, in the event of a change of such magnitude, we may consider taking actions to further mitigate our exposure to the change.
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.
Removed
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. 78 Inflation Inflation primarily impacts our results of operations as a result of increased repair and maintenance and other costs and wage pressures.
Added
As of December 31, 2025, our $2,620.0 million of outstanding variable-rate debt included $145.0 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.
Removed
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.