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Invitation Homes Inc INVH Stock Quote

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NYSE:INVH

Morningstar‘s Stock Analysis INVH

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1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Despite Strong Rate Growth, High Operating Expense Growth Leads Invitation Homes to Reduce Guidance

Kevin Brown, CFA Senior Analyst

Analyst Note

| Kevin Brown, CFA |

Third-quarter results for no-moat Invitation Homes were in line with our expectations, leading us to reaffirm our $42 fair value estimate. Same-store occupancy was down 50 basis points sequentially and 60 basis points year over year to 97.5%. Still, average rental rates increased 9.7% year over year, leading to same-store revenue growth of 8.3% which was in line with our 8.0% estimate for the third quarter. However, same-store operating expenses increased 7.6%, the largest increase in the company’s history, due to inflation driving a 15.4% increase in the cost of repairs and maintenance and a 15.2% increase in turnover-related expenses. As a result, same-store net operating income came in at 8.6%, and while that is in line with our 8.2% estimate for the third quarter, it is below the double-digit same-store NOI growth Invitation Homes reported over the past four quarters. Core funds from operations grew 9.5% in the third quarter to $0.42, in line with our estimate for the firm.

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Key Statistics INVH

Company Profile INVH

Business Description

Invitation Homes owns a portfolio of over 82,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with nearly 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.

Contact
1717 Main Street, Suite 2000
Dallas, TX, 75201
T +1 972 421-3600
Industry REIT - Residential
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 1,240