INVH: Upgrading INVH to OW from EW: Successfully Climbing the Wall of Worry, Although Not Yet Reflected in Valuation

Research evidence excerpt

INVH: Upgrading INVH to OW from EW: Successfully Climbing the Wall of Worry, Although Not Yet Reflected in Valuation

d Yield 4.1%

$ (Dec) Q1 Q2 Q3 Q4 FY

CFFO & Buybacks: Our FY26 CFFO of $1.96 is above the Street & +1% vs INVH’s guide

with help from our estimate of $590M of share buybacks. INVH has been selling assets Core FFO/Share

at ~2.5% cap rates (2.2% in 1Q26) & repurchasing shares at mid-6% implied cap rates, 2026E 0.48 A 0.49 E 0.49 E 0.51 E 1.96 E

among the most accretive capital recycling spreads in our REIT coverage. Our $2.03 FY27 Prior NC NC 0.48 E 0.50 E 1.95 E

CFFO estimate is +1c above the Street with less occupancy drag (-30bps in FY26 vs 0bps 2027E 0.51 E 0.49 E 0.50 E 0.52 E 2.03 E

in FY27) & blend (1.9% FY26 vs 2.1% FY27) & CFFO acceleration. Prior NC NC NC NC 2.02 E

3 Yr EPS CAGR from current year (unless otherwise

noted): 2021-2024E Core FFO/share CAGR Source: Company Data,

21st Century ROAD to Housing Act a Net Positive for SFR REITs. Buybacks remain Wells Fargo Securities estimates, and Factset.

the most attractive use of capital today. However, our industry contacts believe the Act NA = Not Available, NC = No Change, NE = No Estimate

will encourage SFR sector consolidation by larger platforms & accelerate transaction James Feldman

activity during the 180-day window before enactment. We estimate INVH has ~$650M Equity Analyst | Wells Fargo Securities, LLC

of liquidity for investment while remaining in its stated target leverage range. Join our James.Feldman@wellsfargo.com | 212-214-5328

webinar today (6/24 @ 11AM ET) for the details! Conor Peaks

Associate Equity Analyst | Wells Fargo Securities, LLC

Valuation Upside: INVH trades at 14.5x NTM CFFO & 17.2x NTM AFFO, 2.8x & 3.2x Conor.M.Peaks@wellsfargo.com | 212-214-8281