Invitation Homes Earnings: Slowing Growth Likely to Continue Into 2025

Invitation Homes reported fourth-quarter results that were in line with our expectations, leading us to reaffirm our $41 fair value estimate for the no-moat company. Same-store occupancy fell 30 basis points sequentially to 96.7%, matching our estimate for the quarter, while average monthly rent was up 3.1% year over year. As a result, same-store revenue increased 2.7% in the fourth quarter, below our estimate of 4.0%. However, same-store expenses fell 1.5%, significantly better than our estimate of expenses rising 4.6%. Therefore, the company reported same-store net operating income growth of 4.7%, slightly better than our estimate of 4.3%. Invitation Homes reported core funds from operations of $0.47 per share for the fourth quarter, in line with our estimate and $0.02 better than the $0.45 reported in the fourth quarter of 2023.