Invitation Homes to Report Q2 Earnings: What to Expect From the Stock?

Invitation Homes INVH is slated to report second-quarter 2025 results on July 30, after market close. The company’s quarterly results are likely to display a year-over-year increase in revenues and funds from operations (FFO) per share.In the last reported quarter, this residential real estate investment trust (REIT) posted a core FFO per share of 48 cents, beating the Zacks Consensus Estimate of 47 cents. Results reflected higher same-store net operating income (NOI) and same-store blended rent. However, lower occupancy marred the performance to an extent.Over the preceding four quarters, INVH’s core FFO per share met the Zacks Consensus Estimate twice and surpassed it in the other two periods, with the average beat being 1.08%. The graph below depicts this surprise history:Invitation Home Price and EPS Surprise Invitation Home price-eps-surprise | Invitation Home QuoteIn this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2025 performance.US Apartment Market in Q2The U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. According to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty.While rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over year. Operators appear focused on maximizing occupancy, even if it means sacrificing rent increases. This “heads-in-beds” approach supports stability during a period of high new supply.Supply, though moderating, remains historically elevated. More than 535,000 units were completed in the past year, with roughly 108,000 delivered in the second quarter alone. Yet the market’s ability to digest this volume underscores its underlying strength.Regionally, tech-driven markets like San Francisco and San Jose, as well as Boston and New York, gained momentum — likely aided by easing supply and increased return-to-office trends. Sun Belt markets, such as Dallas, Atlanta and Jacksonville, FL, also showed signs of recovery in the second quarter, sustaining robust demand amid declining deliveries. Tourism-dependent cities, like Las Vegas, Orlando, FL, and Nashville, TN, faltered slightly, possibly reflecting softening discretionary spending. Supply-heavy markets like Austin, Phoenix and Denver continued to see the sharpest rent cuts.Factors at Play and Projections for Invitation HomesIn this environment, INVH’s quarterly performance is likely to have benefited from a diverse portfolio of single-family rental units in infill locations in high-growth markets. Solid demand for such rental units with favorable demographic trends is likely to have aided the company’s performance.Moreover, the company’s asset-light model, through a partnership with homebuilders for built-to-rent units, offers healthy yields with limited risk. This might have positively contributed to its second-quarter revenues.For the second quarter, the Zacks Consensus Estimate for INVH’s rental revenues currently stands at $654.09 million, up from $576.87 million reported in the prior-year period. The Zacks Consensus Estimate for second-quarter total revenues is pegged at $676.86 million, indicating a rise of 3.58% from the year-ago reported number.However, the high supply of rental properties in some markets is likely to have an adverse impact.Invitation Homes’ activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 48 cents over the past three months. However, the figure suggests an increase of 2.13% year over year.What Our Quantitative Model Predicts for Invitation HomesOur proven model does not conclusively predict a surprise in terms of FFO per share for INVH this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.Invitation Homes currently has an Earnings ESP of -1.79% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks That Warrant a LookHere are two stocks from the broader REIT sector — AvalonBay Communities AVB and Cousins Properties CUZ— that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.AvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Cousins Properties Incorporated (CUZ): Free Stock Analysis Report Invitation Home (INVH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks