AFFO of $296.5M covered dividends 2.3x (payout ratio 43%), but recurring capex consumed about 28% of FFO, indicating high reinvestment needs.
Invitation Homes Inc. (INVH) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | 1.2B | 1.21B | 1.08B | 1.11B | 1.02B | 907.66M | 696.71M | 662.13M | 561.24M | 259.79M | 250.13M | 197.47M | 48.45M |
| Operating CF Growth % | 21.32% | 11.5% | -2.28% | 8.16% | 12.77% | 30.28% | 5.22% | 17.98% | 116.04% | 3.86% | 26.66% | 307.57% | - |
| Operating CF / Revenue % | 42.14% | 44.2% | 41.31% | 45.52% | 45.73% | 45.46% | 38.22% | 37.52% | 32.57% | 24.64% | 27.11% | 23.62% | 7.36% |
| Net Income | 660.65M | 587.92M | 455.37M | 521.03M | 384.8M | 262.78M | 197.45M | 147.11M | -5.01M | -105.83M | -78.24M | -160.21M | -269.86M |
| Depreciation & Amortization | 759.57M | 746.93M | 714.33M | 674.29M | 638.11M | 592.13M | 552.53M | 533.72M | 560.54M | 309.58M | 267.68M | 340.09M | 215.81M |
| Stock-Based Compensation | 29.25M | 27.83M | 27.92M | 29.5M | 28.96M | 27.17M | 17.09M | 18.16M | 29.5M | 81.2M | 10.21M | 27.92M | 24.34M |
| Other Non-Cash Items | -232.16M | -176.03M | -136.7M | -129.69M | -17.9M | 34.11M | 46.31M | 50.65M | 53.91M | 32.86M | 63.75M | 2.88M | 100.69M |
| Working Capital Changes | -13.17M | 17.59M | 20.89M | 11.96M | -10.39M | 24.76M | -46.05M | -7.3M | -46.77M | -32.21M | -6.27M | -13.21M | -24.65M |
| Cash from Investing | -157.67M | -652.57M | -465.87M | -773.55M | -814.41M | -1.16B | -425.16M | 102.23M | 62.99M | 53.28M | -255.04M | -859.83M | -1.9B |
| Acquisitions (Net) | -175M | -45.68M | -44.19M | -442K | -167.73M | -65M | -16.34M | 586.08M | 192.57M | 84.95M | 0 | 0 | 0 |
| Purchase of Investments | -15.66M | -2.89M | -4.72M | -33.58M | 3.94M | 162.83M | 172.28M | -586.08M | -211.74M | -95.17M | -300.26M | -909.16M | -74.47M |
| Sale of Investments | 58.14M | 0 | 32.2M | 861K | 76.31M | 119.92M | 72.11M | 49.96M | 224.03M | 79.29M | 146.1M | 212.39M | 0 |
| Other Investing | 30.73M | -361.24M | -229.78M | -519.29M | -518.86M | -1.21B | -480.92M | 216.51M | 3.83M | 46.75M | 5.72M | 0 | -1.76B |
| Cash from Financing | -1B | -618.49M | -1.09B | 110.02M | -574.11M | 658.99M | -146.03M | -838.1M | -680.8M | -331.31M | -71.79M | 651.58M | 1.71B |
| Dividends Paid | -719.88M | -712.84M | -689.24M | -638.13M | -539.03M | -393.81M | -332.15M | -276.68M | -230.07M | -69M | -136K | -682.61M | -787.6M |
| Common Dividends | -719.88M | -712.84M | -689.24M | -638.13M | -539.03M | -393.81M | -332.15M | -276.68M | -230.07M | -69M | 0 | -682.47M | -787.47M |
| Debt Issuance (Net) | 2M | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K |
| Share Repurchases | -594.96M | -53.21M | -10.89M | -8.15M | 0 | 0 | 0 | -8.16M | -9.24M | -15.88M | 0 | 0 | 0 |
| Other Financing | -17.97M | -20.51M | -62.11M | -13.12M | -44.62M | -52.16M | -65.88M | 40.7M | -61.38M | 1.63B | -10.24M | -51.49M | 480.03M |
| Net Change in Cash | 43.56M | -64.83M | -477.79M | 443.56M | -364.93M | 407.09M | 125.52M | -73.75M | -56.57M | -18.24M | -76.7M | -10.78M | -145.97M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 372.98M | 419.69M | 897.48M | 453.93M | 818.86M | 411.77M | 286.25M | 359.99M | 416.56M | 198.12M | 274.82M | 285.6M | 431.56M |
| Cash at End | 327.28M | 354.87M | 419.69M | 897.48M | 453.93M | 818.86M | 411.77M | 286.25M | 359.99M | 179.88M | 198.12M | 274.82M | 285.6M |
| Free Cash Flow | 1.08B | 963.48M | 862.41M | 885.99M | 815.52M | 744.83M | 524.43M | 497.89M | 415.53M | 197.25M | 200.33M | 145.67M | -12.51M |
| FCF Growth % | 20.39% | 11.72% | -2.66% | 8.64% | 9.49% | 42.03% | 5.33% | 19.82% | 110.66% | -1.54% | 37.53% | 1264.24% | - |
| FCF / Revenue % | 37.88% | 35.3% | 32.93% | 36.43% | 36.44% | 37.3% | 28.77% | 28.21% | 24.12% | 18.71% | 21.71% | 17.42% | -1.9% |
Quick answers to the most common questions about buying INVH stock.
Invitation Homes Inc. (INVH) generated $1.21B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Invitation Homes Inc. (INVH) generated $963.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Invitation Homes Inc. (INVH) spent $242.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Invitation Homes Inc. (INVH) returned $712.8M to shareholders via cash dividends and spent $53.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Regulatory and cost pressures
Metrics are mathematically derived from official filings.
AFFO Coverage Strengthens
AFFO of $296.5M in Q2 2026 covered dividends 2.3x, with payout ratio at 43%, according to the latest earnings release. This suggests a robust buffer for distribution growth.
The dividend payout ratio based on AFFO has improved from 69% in Q2 2024 to 43% in Q2 2026, indicating that the company is retaining a larger portion of its cash flow. This retained AFFO buffer may support future dividend increases or fund internal growth initiatives. The trend suggests that the company's cash flow generation is outpacing its distribution obligations, providing financial flexibility.
Capex Intensity Remains Elevated
Quarterly capex averaged $60M in 2026, with recurring maintenance and leasing costs consuming about 28% of FFO, as per financial statements. This suggests a high reinvestment need for the aging portfolio.
The gap between FFO and AFFO, which represents recurring capex, has been relatively stable at around $60-70M per quarter. This indicates that the company is consistently investing in property maintenance and tenant improvements to preserve asset quality. While this capex is necessary, it reduces the cash available for distribution, and investors should monitor whether this level of reinvestment is sufficient to maintain the portfolio's competitive position.
Depreciation Masks Cash Earnings
FFO exceeded net income by $194M in Q2 2026, with FFO/NI at 1.77, according to the cash flow data. This highlights the significant non-cash depreciation charges typical of REITs.
The large gap between net income and FFO underscores the importance of using FFO and AFFO as the primary earnings metrics for REITs. Depreciation is a non-cash expense that does not reflect the actual cash flow generated by the properties. The consistent FFO/NI ratio above 1.5 indicates that the company's cash earnings are substantially higher than GAAP earnings, which may not be fully appreciated by investors focused solely on net income.
Working Capital Dynamics Stable
Operating cash flow of $386.7M in Q2 2026 was $168M higher than net income, according to the cash flow statement. This suggests minimal working capital drag from rent collections.
The strong conversion of net income to operating cash flow indicates that the company is collecting rents efficiently, with no significant build-up in tenant receivables. This is a positive sign for cash flow quality, as it suggests that reported revenues are translating into actual cash receipts. The stability in this conversion over the past quarters implies that the company's rent collection processes are effective, even in a challenging economic environment.
No External Funding Needed
With AFFO of $296.5M exceeding dividends of $179.3M in Q2 2026, the company appears self-funding, as per the cash flow data. This suggests no reliance on external capital for distributions.
The company's operating cash flow and AFFO are more than sufficient to cover its dividend payments, indicating that it does not need to rely on debt issuance or equity offerings to fund distributions. This financial self-sufficiency is a sign of strength and reduces the risk of dilution or increased leverage. However, investors should monitor whether the company's external growth initiatives, such as acquisitions or development, will require additional capital in the future.
Capex Classification Scrutiny
The low gross margin of 3.7% and high operating margin of 27.1% suggest significant cost of sales, possibly including capitalized maintenance, as per the income statement. This warrants investigation into expense classification.
The divergence between gross and operating margins is unusual for a REIT and may indicate that certain property-level expenses are being classified as cost of goods sold rather than operating expenses. This could affect the comparability of margins with peers. Additionally, the company's reported debt/equity ratio of 0.88% appears unusually low, which may suggest off-balance-sheet financing or a data anomaly. Investors should review the footnotes to understand the full extent of the company's obligations.