Invitation Homes Earnings: Guidance Unchanged Despite Macro Uncertainty; Solid Quarterly Results

No-moat-rated Invitation Homes reported first-quarter results roughly in line with our expectations, leading us to maintain our $41 fair value estimate. Same-store occupancy rose 50 basis points sequentially to 97.2%, slightly higher than our estimate for the quarter, while average monthly rent was up 3.1% year over year. This led to same-store revenue increasing by 2.5% in the first quarter, which was 80 basis points above our estimate. Same-store expenses were flat from the prior year, significantly lower than our estimate of expenses climbing 4.6% year over year. The company reported same-store net operating income growth of 3.7%, significantly better than our 0.3% estimate for the quarter. Invitation Homes posted core funds from operations of $0.48 per share in the first quarter, one cent better than our $0.47 estimate and in line with the core funds from operations posted in the first quarter of 2024.