John Pawlowski's questions to Invitation Homes Inc (INVH) leadership • Q2 2025
Question
In a follow-up, John Pawlowski of Green Street asked about the $2 billion interest rate swap book, questioning the upfront costs and the strategic rationale for using swaps instead of issuing long-term fixed-rate debt.
Answer
CFO Jonathan Olsen explained that the swap book is partly a legacy of their historical capital structure and agreed that the long-term goal is to have more natural fixed-rate debt. He clarified that the cost is a small, de minimis credit charge from the counterparty baked into the spread. The overall strategy is to make interest expense more knowable and less volatile, but he affirmed the expectation to become less reliant on hedging over time.