INVH · Earnings call · 2026Q3T · Full report

Operating Expense Trends

Invitation Homes Inc. · 2026-10-28 · Importance 25 · Surprise 32

Core operating expenses increased 2.5% in the third quarter and 3.3% year to date, within full-year guidance. Fixed expenses rose 1.1% in the quarter as slightly lower property taxes offset higher insurance and homeowners association costs. Controllable expenses increased 4.9%, primarily because of higher repair and utility expenses associated with summer heat. Florida and Georgia account for more than half of total property tax expense, and bills received to date were better than management originally expected.

Key facts

• Invitation Homes said some of its more elevated expense line items had experienced a good amount of deflation over the last few years, which it viewed as good news for the long term.
• Invitation Homes’ core expenses grew 2.5% in Q3 2026 and 3.3% year to date, both within its full-year guidance range.
• Invitation Homes’ controllable expenses grew 4.9% in Q3 2026, mostly due to higher repair and utility expenses resulting from summer extreme heat.
• Invitation Homes’ bad debt was 75 basis points in Q3 2026 and 60 basis points for the year, in line with its pre-pandemic range of 40–60 basis points year to date as described by management.
• Invitation Homes’ fixed expenses grew 1.1% in Q3 2026 as slightly lower property taxes offset higher insurance and HOA costs.
• Invitation Homes said third-quarter cost to maintain ran somewhat hot after a particularly hot summer, with many HVAC replacements.