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).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
