Beyond analysts' top -and-bottom-line estimates for Invitation Home (INVH), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2024.
I'm considering building a new apartment community in Spartanburg, SC, driven by strong multifamily sector trends and solid absorption rates despite high new supply. Mid-America Apartment Communities is a resilient Sunbelt-focused apartment REIT, benefiting from job growth and investment, with a strong balance sheet and steady dividend growth. Invitation Homes is a single-family rental REIT with strategic homebuilder partnerships, a robust balance sheet, and consistent AFFO and dividend growth, making it a buy.
Investing in a single-family rental property requires significant capital and carries risks, including high debt and potential cash flow issues. Invitation Homes offers a diversified REIT alternative with a recent 3.6% dividend raise and a 72.5% AFFO payout ratio. Valuation models like the Chowder Rule and Dividend Discount Model suggest the Company is undervalued, with potential annual returns of 20.51%.
Dallas Tanner, Invitation Homes CEO, joins 'Closing Bell Overtime' to talk his housing lookahead for 2025.
Dividend stocks can be no-brainer investments. Over the last 50 years, the average dividend stock in the S&P 500 has outperformed non-dividend payers by more than 2 to 1, with the best performance coming from dividend growers.
Invitation Homes has underperformed in 2024, but high mortgage rates and low home affordability make renting attractive, supporting steady demand. Despite recent rental growth deceleration, Invitation Homes benefits from a favorable external environment with high homeownership costs and growing demand for single-family homes. The company trades at a low valuation, with an implied cap rate of 5.5% and the potential for 10-17% annualized returns over the next 4 years.
Invitation Homes (INVH) has underperformed, rising only 2% in the past year, missing out on the broader market rally. INVH's strong cost discipline and positive rental inflation, despite weaker apartment rental rates, support a favorable outlook. Higher home prices and mortgage rates make renting attractive, boosting INVH's single-family rental model and valuation.
Abating headwinds should benefit these REITs in the coming years.
Invitation Homes Inc. (NYSE:INVH ) Q3 2024 Earnings Call October 31, 2024 2:00 PM ET Company Participants Scott McLaughlin - Senior Vice President, Investor Relations Dallas Tanner - Chief Executive Officer Charles Young - President and Chief Operating Officer Jon Olsen - Chief Financial Officer Scott Eisen - Chief Investment Officer Conference Call Participants Michael Goldsmith - UBS Steve Sakwa - Evercore ISI Eric Wolfe - Citi Jamie Feldman - Wells Fargo Adam Kramer - Morgan Stanley Jesse Lederman - Zelman & Associates John Pawlowski - Green Street Josh Dennerlein - Bank of America Juan Sanabria - BMO Capital Markets Haendel St. Juste - Mizuho Brad Heffern - RBC Capital Markets Austin Wurschmidt - KeyBanc Capital Markets Michael Gorman - BTIG Julien Blouin - Goldman Sachs Jason Sabshon - KBW Operator Greetings and welcome to the Invitation Homes Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
Although the revenue and EPS for Invitation Home (INVH) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Invitation Home (INVH) came out with quarterly funds from operations (FFO) of $0.47 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to FFO of $0.44 per share a year ago.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Invitation Home (INVH), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.