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Invitation Homes Inc INVH

Morningstar Rating
$34.54 +0.47 (1.38%)
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Company Report

Invitation Homes Earnings: Fourth-Quarter Results and 2024 Guidance Both in Line With Expectations

Invitation Homes reported fourth-quarter results that were in line with our estimates, giving us confidence in our $41 fair value estimate for the no-moat company. Same-store occupancy improved by 10 basis points sequentially to 97.1%, slightly better than our estimate of flat growth. Average monthly rents increased 5.3% year over year, which was in line with our estimate of 5.2% growth and drove same-store revenue growth of 5.9% for the quarter. Same-store operating expense growth of 6.6% in the fourth quarter was slightly higher than our 4.1%, leading to same-store net operating income, or NOI, growth of 5.6% that was slightly below our 6.8% estimate. The company reported core funds from operations, or FFO, of $0.45 per share that matched our estimate for the fourth quarter and was two cents better than the $0.43 figure the company reported in the fourth quarter of 2022.

Price vs Fair Value

INVH is trading at a 16% discount.
Price
$34.54
Fair Value
$89.00
Uncertainty
Medium
1-Star Price
$15.86
5-Star Price
$64.10
Economic Moat
Jrlmq
Capital Allocation
Ywljwwg

Bulls Say, Bears Say

Bulls

Positive demographic trends should fuel strong demand for single-family rentals as millennials, a population that has pushed back major life decisions such as marriage and homeownership, start to move into the suburbs.

Bears

Higher home prices due to housing shortages means that Invitation Homes must also pay higher prices to acquire new homes, limiting accretive external growth opportunities.

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News

Trading Information

Previous Close Price
$34.07
Day Range
$33.6434.63
52-Week Range
$28.4936.54
Bid/Ask
$34.17 / $34.76
Market Cap
$21.14 Bil
Volume/Avg
3.7 Mil / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
60.86
Price/Sales
8.71
Dividend Yield (Trailing)
3.07%
Dividend Yield (Forward)
3.24%
Total Yield
3.07%

Company Profile

Invitation Homes owns a portfolio of nearly 83,000 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 over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Sector
Real Estate
Industry
REIT - Residential
Stock Style Box
Mid Core
Total Number of Employees
1,555

Competitors

Valuation

Metric
INVH
AIRC
EQR
Price/Earnings (Normalized)
60.867.1039.05
Price/Book Value
2.081.902.09
Price/Sales
8.715.658.26
Price/Cash Flow
19.3411.6715.51
Price/Earnings
INVH
AIRC
EQR

Financial Strength

Metric
INVH
AIRC
EQR
Quick Ratio
3.800.460.06
Current Ratio
5.710.530.17
Interest Coverage
2.566.274.16
Quick Ratio
INVH
AIRC
EQR

Profitability

Metric
INVH
AIRC
EQR
Return on Assets (Normalized)
2.96%10.92%4.44%
Return on Equity (Normalized)
5.46%31.64%8.07%
Return on Invested Capital (Normalized)
4.48%13.79%5.89%
Return on Assets
INVH
AIRC
EQR
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REIT - Residential Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
AVB
AvalonBay Communities IncSmf$25.3 Bil
EQR
Equity ResidentialWhxb$23.1 Bil
SUI
Sun Communities IncNgzjs$16.5 Bil
ESS
Essex Property Trust IncXbmm$15.0 Bil
MAA
Mid-America Apartment Communities IncJntbn$14.9 Bil
AMH
American Homes 4 Rent Class AMbbq$13.5 Bil
ELS
Equity Lifestyle Properties IncCvm$12.5 Bil
UDR
UDR IncRfxml$11.8 Bil
AIRC
Apartment Income REIT Corp Class AKkr$4.5 Bil

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