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Invitation Homes Inc (INVH)
NYSE:INVH
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Invitation Homes
(NYSE:INVH)
76Outperform
Positive Factors
Earnings
1Q25 earnings beat with better than expected blended rent spreads and improving bad debt.
Valuation
INVH trades at an attractive relative valuation, with a discount to its long-term average and parity to all REITs.
Negative Factors
Competitive Position
INVH's top-line growth is projected to be lower than its peer AMH, which is preferred due to stronger growth and a more diversified portfolio.
Guidance
The FY25 guidance is slightly below both the WFC and Street expectations.
Invitation Homes (INVH) vs. S&P 500 (SPY)
Market Cap
$21.39B
Dividend Yield3.27%
Average Volume (3M)3.27M
Price to Earnings (P/E)101.8
Beta (1Y)0.70
Revenue Growth6.11%
EPS Growth-37.43%
CountryUS
Employees1,750
SectorReal Estate
Sector Strength81
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.27
Shares Outstanding612,949,340
10 Day Avg. Volume2,842,007
30 Day Avg. Volume3,271,413
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.37
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit18.92
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.62Price Target Upside8.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Invitation Homes Business Overview & Revenue Model
Company DescriptionInvitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
How the Company Makes MoneyInvitation Homes generates revenue primarily through the leasing of its portfolio of single-family homes. The company collects rental income from tenants who lease these properties, which serves as its main revenue stream. Additionally, Invitation Homes may earn ancillary income from services provided to tenants, such as maintenance and repair services. The company's ability to generate income is further supported by strategic acquisitions of homes in markets with high demand for rental properties, ensuring a steady flow of rental income. Partnerships with local real estate experts and investment in technology to streamline operations and enhance tenant satisfaction also contribute to their revenue-generating capabilities.
Invitation Homes Key Performance Indicators (KPIs)
Any
Average Monthly Rent
Shows the average rent collected per property, providing insight into revenue generation and pricing power in the rental market.
Shows the average rent collected per property, providing insight into revenue generation and pricing power in the rental market.
Data provided by:
Main Street Data
Main Street DataInvitation Homes Financial Statement Overview
Summary
Invitation Homes shows strong revenue growth and operational efficiency with high EBIT and EBITDA margins. However, the slight decrease in net profit margin and high debt levels pose some concerns.Income Statement
Invitation Homes has shown a consistent revenue growth with a 7.65% increase from 2023 to 2024. The gross profit margin improved to 64.28% in 2024 from 59.86% in 2023, indicating effective cost management. However, the net profit margin decreased slightly to 17.34% in 2024 from 21.37% in 2023, suggesting increased expenses or other costs impacting net income. Strong EBIT and EBITDA margins of 60.83% and 88.07% respectively highlight robust operational efficiency.85
Very Positive
Balance Sheet
The debt-to-equity ratio stood at 0.84 in 2023, reflecting moderate leverage. The return on equity was 5.11% in 2023, indicating modest profitability relative to shareholder's equity. The equity ratio was 52.85%, demonstrating a solid equity base compared to total assets. However, high debt levels could pose risks during economic downturns.70
Positive
Cash Flow
The free cash flow grew by 7.82% from 2022 to 2023, showing healthy cash generation. The operating cash flow to net income ratio was 2.13 in 2023, indicating strong cash conversion from earnings. However, the free cash flow to net income ratio of 1.71 suggests efficient capital expenditure management but could be improved for better flexibility.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.62B | 2.43B | 2.23B | 2.00B | 1.82B | Gross Profit |
| 1.55B | 1.46B | 1.35B | 1.22B | 1.08B | EBIT |
| 741.24M | 1.47B | 642.40M | 550.42M | 468.44M | EBITDA |
| 1.45B | 1.44B | 2.02B | 1.81B | 1.63B | Net Income Common Stockholders |
| 453.92M | 519.47M | 383.33M | 261.43M | 196.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 174.49M | 700.62M | 262.87M | 610.17M | 213.42M | Total Assets |
| 18.70B | 19.22B | 18.54B | 18.54B | 17.51B | Total Debt |
| 8.20B | 8.55B | 7.77B | 8.00B | 8.03B | Net Debt |
| 8.03B | 7.85B | 7.51B | 7.39B | 7.82B | Total Liabilities |
| 8.91B | 9.03B | 8.21B | 8.70B | 8.95B | Stockholders Equity |
| 9.76B | 10.16B | 10.29B | 9.80B | 8.50B |
| Cash Flow | Free Cash Flow | |||
| 862.41M | 885.99M | 815.52M | 744.83M | 524.43M | Operating Cash Flow |
| 1.08B | 1.11B | 1.02B | 907.66M | 696.71M | Investing Cash Flow |
| -465.87M | -773.55M | -814.41M | -1.16B | -425.16M | Financing Cash Flow |
| -1.09B | 110.02M | -574.11M | 658.99M | -146.03M |
Invitation Homes Technical Analysis
Positive
34.77
Price Trends
33.64
Positive
32.44
Positive
33.20
Positive
Market Momentum
0.48
Negative
56.16
Neutral
62.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVH, the sentiment is Positive. The current price of 34.77 is above the 20-day moving average (MA) of 33.85, above the 50-day MA of 33.64, and above the 200-day MA of 33.20, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 62.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INVH.
Invitation Homes Risk Analysis
Invitation Homes disclosed 70 risk factors in its most recent earnings report. Invitation Homes reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Invitation Homes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.34B | 36.06 | 5.81% | 2.78% | 6.90% | 9.99% | |
76 Outperform | $21.39B | 101.83 | 4.92% | 3.27% | 6.11% | -37.43% | |
75 Outperform | $27.63B | 27.63 | 9.01% | 3.90% | 3.91% | 8.78% | |
71 Outperform | $14.19B | 120.40 | 3.40% | 3.99% | 2.35% | -73.89% | |
68 Neutral | $20.15B | 34.92 | 9.37% | 3.69% | 1.55% | 0.73% | |
63 Neutral | $19.08B | 27.59 | 12.09% | 3.52% | 7.61% | 27.83% | |
60 Neutral | $2.80B | 11.09 | 0.20% | 8508.36% | 6.13% | -16.84% |
* Real Estate Sector Average
Performance Comparison
INVH
Invitation Homes
34.77
1.13
3.36%
EQR
Equity Residential
69.94
5.61
8.72%
MAA
Mid-America Apartment
163.02
32.84
25.23%
ESS
Essex Property
282.69
32.50
12.99%
UDR
UDR
42.29
4.82
12.86%
AMH
American Homes
38.70
3.67
10.48%
Invitation Homes Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.70%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance, high occupancy, and strategic growth through acquisitions and developments. However, there are some concerns about renewal rent growth moderation, challenges in select markets, and potential increases in turnover during the peak leasing season.Q1-2025 Updates
Positive Updates
Strong Financial Performance
During the first quarter, same-store portfolio delivered 97.2% average occupancy, 3.6% blended rent growth, and a 3.7% year-over-year increase in NOI. Core FFO per share grew 3.5% year-over-year, and AFFO per share grew 4%.
High Occupancy and Renewal Rates
The company reported a nearly 80% renewal rate during the first quarter with an average length of stay of 38.5 months, reflecting sustained demand and customer satisfaction.
Strong Balance Sheet
Total available liquidity stood at nearly $1.4 billion as of March 31, with a net debt to adjusted EBITDA ratio of 5.3x. The company's credit rating was reaffirmed at BBB by S&P, with an upgraded outlook from stable to positive.
Strategic Acquisitions and Developments
Acquired 577 wholly owned homes for approximately $194 million, nearly all newly built, while disposing of 454 homes. Developing nearly 2,000 additional homes in key markets, providing a reliable pipeline of future growth opportunities.
Negative Updates
Moderation in Renewal Rent Growth
Renewal rent growth dipped from 5.2% in the first quarter to 4.5% in April, indicating a potential moderation in renewal rent increases.
Challenges in Specific Markets
Phoenix, Texas, and Florida markets experienced supply pressures, although there are signs of improvement. These areas require monitoring due to ongoing challenges.
Turnover and Days to Re-Resident Concerns
While turnover has been lower than expected, there is an anticipation of increased turnover during the summer, which could affect occupancy rates and days to re-resident.
Company Guidance
During Invitation Homes' first quarter 2025 earnings call, the company reported several key metrics highlighting its strong performance. The same-store portfolio achieved an average occupancy rate of 97.2%, with a blended rent growth of 3.6% and a year-over-year increase in net operating income (NOI) of 3.7%. Core funds from operations (FFO) per share grew by 3.5%, while adjusted funds from operations (AFFO) per share increased by 4%. The firm also acquired 577 wholly owned homes for approximately $194 million and disposed of 454 homes. Turnover expenses decreased by 5.1% year-over-year, contributing to favorable expense results. The average length of stay extended to 38.5 months, with a renewal rate of nearly 80% in the first quarter. Looking ahead, the company reaffirmed its full-year 2025 guidance, emphasizing its focus on disciplined capital allocation and sustainable growth.Invitation Homes Corporate Events
Business Operations and StrategyFinancial Disclosures
Invitation Homes Reports Strong Start to 2025
Positive
Feb 28, 2025
Invitation Homes Inc. reported preliminary results for January-February 2025, showing growth in renewal and blended lease rates, with occupancy improving to 97.1%. The company anticipates steady growth in 2025, supported by strategic acquisitions and partnerships, aiming for a return to normal occupancy levels and continued expansion in its core markets.
Executive/Board ChangesBusiness Operations and Strategy
Invitation Homes Promotes Timothy Lobner to COO
Positive
Feb 25, 2025
On February 21, 2025, Invitation Homes announced the promotion of Timothy Lobner to Executive Vice President and Chief Operating Officer, effective March 2, 2025. This leadership change aims to strengthen the company’s operations and strategic focus, with Charles Young continuing as President. The announcement also included updates on executive compensation, reflecting the company’s performance in 2024, with increased long-term incentive awards for key executives. These changes are part of Invitation Homes’ efforts to ensure leadership continuity and business success, impacting stakeholders by potentially enhancing operational efficiency and strategic growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.