Invitation Homes Q4 FFO Meets Estimates, Revenues Increase Y/Y

Invitation Homes Inc. INVH reported fourth-quarter 2024 core funds from operations (FFO) per share of 47 cents, meeting the Zacks Consensus Estimates. The reported figure compared favorably with the prior-year quarter’s 45 cents.

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Results reflect higher same-store net operating income (NOI) and same-store blended rent. However, lower occupancy marred the performance to an extent.

Total revenues of $659.1 million missed the Zacks Consensus Estimate by 0.62%. However, the figure improved 5.6% year over year.

As per Dallas Tanner, CEO of Invitation Homes, “As we look ahead, we expect to continue to benefit from the sustained demand for high-quality, well-located single-family homes for lease. Our strategic vision for external growth, combined with our unwavering commitment for Genuine Care, positions us to drive strong performance and create long-term value for our stockholders.”

For full-year 2024, core FFO per share was $1.88, which rose 6.2% from the prior-year tally and met the Zacks Consensus Estimate. Moreover, total revenues grew 7.7% to $2.62 billion.

Invitation Homes’ Fourth Quarter in Detail

During the fourth quarter, Invitation Homes’ same-store core revenues grew 2.7%, and same-store core operating expenses fell 1.5% year over year. As a result, same-store NOI improved 4.7% year over year.

Invitation Homes witnessed yearly same-store renewal rent growth of 4.2% and same-store new lease rent decline of 2.2%, resulting in same-store blended rent growth of 2.3%.

Same-store average occupancy was 96.7%, down 60 basis points year over year.

Property management expenses grew 55% year over year to $39.2 million. Casualty losses, impairment and other expenses increased significantly year over year.

For the fourth quarter, total acquisitions by the company and its joint ventures included 501 homes for $171 million, while dispositions totaled 581 homes for around $245 million.

Invitation Homes’ Balance Sheet

Invitation Homes exited the fourth quarter of 2024 with total liquidity of $1.35 billion, including unrestricted cash and undrawn capacity on its revolving credit facility.

Moreover, secured and unsecured debt aggregated $8.29 billion as of Dec. 31, 2024, and its Net Debt/TTM adjusted EBITDAre was 5.3X.

Invitation Homes’ 2025 Guidance

Invitation Homes provided its initial 2025 outlook.

It expects core FFO per share between $1.88 and $1.94, with a midpoint of $1.91. The Zacks Consensus Estimate for the same is pegged at $1.93, which lies in the guided range.

The full-year guidance is based on the assumption of 1.75% to 3.25% growth in same-store revenues and a 2.75-4.25% increase in same-store expenses. Same-store NOI is projected to rise by 1.00% to 3.00%.

INVH’s Zacks Rank

Invitation Homes currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Residential REITs

AvalonBay Communities AVB reported a fourth-quarter 2024 core FFO per share of $2.80, missing the Zacks Consensus Estimate of $2.83. However, the figure increased 2.2% year over year.

The quarterly results reflected higher property management, other indirect operating expenses and interest expenses. However, a year-over-year increase in same-store residential revenues and same-store NOI supported AVB’s results to an extent.

Equity Residential EQR reported a fourth-quarter 2024 normalized FFO per share of $1.00, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.

EQR’s quarterly results reflected healthy same-store revenue performance and high occupancy.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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