Invitation Homes (INVH, Financial) has received an upgrade from Citi analyst Eric Wolfe, shifting from a Neutral to a Buy rating, with the price target raised to $38.50 from the previous $35. This adjustment is part of a larger analysis focused on Real Estate Investment Trusts (REITs) and the Lodging sector. Wolfe anticipates that Invitation Homes' earnings and same-store net operating income (SSNOI) growth will align with AMH within the upcoming 6 to 12 months. The analyst also points out that the company's SSNOI guidance is relatively cautious compared to its peers. Furthermore, Citi notes that May could mark the peak of AMH's new lease growth, a development that might catch some investors by surprise.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Invitation Homes Inc (INVH, Financial) is $37.50 with a high estimate of $43.00 and a low estimate of $34.00. The average target implies an upside of 13.84% from the current price of $32.94. More detailed estimate data can be found on the Invitation Homes Inc (INVH) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Invitation Homes Inc's (INVH, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Invitation Homes Inc (INVH, Financial) in one year is $38.73, suggesting a upside of 17.58% from the current price of $32.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Invitation Homes Inc (INVH) Summary page.
INVH Key Business Developments
Release Date: May 01, 2025
- Average Occupancy: 97.2% for the same-store portfolio.
- Blended Rent Growth: 3.6% year-over-year increase.
- Net Operating Income (NOI) Growth: 3.7% year-over-year increase.
- Core FFO per Share: 3.5% year-over-year growth.
- AFFO per Share: 4% year-over-year growth.
- Home Acquisitions: 577 wholly owned homes acquired for approximately $194 million.
- Home Dispositions: 454 homes strategically disposed.
- Same-Store Core Revenue Growth: 2.5% increase.
- Same-Store Core Operating Expenses: Flat year-over-year.
- Repair and Maintenance Expense: 2% reduction year-over-year.
- Turnover Expenses: 5.1% decrease year-over-year.
- Renewal Rent Growth: 5.2% increase in Q1.
- Average Length of Stay: 38.5 months with nearly 80% renewal rate.
- Total Available Liquidity: Nearly $1.4 billion as of March 31.
- Net Debt to Adjusted EBITDA Ratio: 5.3 times.
- Core FFO: $0.48 per share, 3.5% increase year-over-year.
- AFFO: $0.42 per share, 4% increase year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Invitation Homes Inc (INVH, Financial) reported a strong first quarter with a 3.7% year-over-year increase in same-store NOI and a 3.5% growth in Core FFO per share.
- The company achieved a high average occupancy rate of 97.2% and a 3.6% blended rent growth, indicating strong demand for their rental properties.
- INVH's strategic acquisition and disposition activities resulted in the acquisition of 577 homes and the strategic disposal of 454 homes, enhancing their portfolio quality.
- The company maintained a robust balance sheet with nearly $1.4 billion in available liquidity and a net debt to adjusted EBITDA ratio of 5.3 times.
- Standard & Poor's reaffirmed INVH's BBB flat credit rating and upgraded their outlook from stable to positive, reflecting confidence in their financial stability.
Negative Points
- The renewal rate decreased from 5.2% in the first quarter to 4.5% in April, indicating potential challenges in maintaining high renewal rates.
- There are ongoing supply pressures in markets like Phoenix, Texas, and Florida, which could impact future occupancy and rent growth.
- The company faces potential risks from macroeconomic uncertainties, which could affect their ability to maintain current performance levels.
- INVH's property management expenses have increased, partly due to investments in servicing new third-party management customers.
- The company is cautious about potential impacts from proposed tariffs on HVAC and appliances, which could increase repair and maintenance costs.
