And while that may still seem like a relatively small slice of the full pie, The Wall Street Journal found that major investors are tapping in with hopes the figure will grow (6). Their research highlighted several major players — including Blackstone, Invitation Homes and Pretium Partners — that are actively investing in this market.That represents an increase from 5% to 9% in the share of all new single-family homes being built in the United States.Developers are increasingly constructing neighbourhoods o ...

Valued at a market cap of $16.1 billion, Invitation Homes Inc. (INVH) is a residential real estate investment trust (REIT) that owns, renovates, leases, and manages single-family rental homes across major metropolitan areas. The Dallas, Texas-based company focuses on high-growth Sun Belt and Western U.S. markets, where housing demand is supported by population growth, job creation, and limited housing supply. This residential REIT has underperformed the broader market over the past 52 weeks. Shares of IN ...

(1)Invitation Homes Inc. Common Stock CUSIP 46187W107 Box 1a Box 2a Box 2b Box 2f Box 5 Record Date Payable Date Cash Distribution Taxable Dividend Total Ordinary Dividends (2) Total Capital Gain Distr. (3) Unrecap. Sec. 1250 Gain (3) Sec. 897 Capital Gain Sec. 199A Dividends (4) 3/27/2025 4/17/2025 $0.290000 $0.290000 $0.232198 $0.057802 $0.012415 $0.057545 $0.232198 6/26/2025 7/18/2025 $0.290000 $0.290000 $0.232198 $0.057802 $0.012415 $0.057545 ...

Invitation Homes (NYSE:INVH) is one of the most favored real estate investment trusts according to Hedge Funds. On January 14, Nicholas Yulico from Scotiabank maintained his Sector Perform rating for Invitation Homes (NYSE:INVH). Although he lowered his price target forecast from $31 to $28, Yulico expects a favorable sentiment towards multifamily and self-storage REITs. His predictions are based on Scotiabank’s broader outlook for the U.S. Real Estate & REITs segment, which is linked to the upcoming four ...

Company Overview - Invitation Homes Inc. (INVH) is a leading residential real estate investment trust (REIT) focused on single-family rentals, based in Dallas, Texas, with a market capitalization of $16.95 billion [1] Financial Performance - The company is expected to report its fourth-quarter results for fiscal 2025 soon, with analysts projecting a profit of $0.47 per share on a diluted basis for Q4, unchanged year-over-year [2][3] - For the full fiscal year 2025, diluted EPS is expected to decline marginally year-over-year to $1.87, followed by a 4.3% improvement to $1.95 in fiscal 2026 [3] Stock Performance - Invitation Homes' stock has faced pressure due to weakness in the real estate market, particularly in Sunbelt cities, declining by 12.9% over the past 52 weeks and 15.4% over the past six months, while the S&P 500 Index has increased by 13.3% and 7.9% during the same periods [4] - The stock has also underperformed its sector, as the State Street Real Estate Select Sector SPDR ETF (XLRE) has seen a marginal increase over the past 52 weeks but a decline of 1.1% over the past six months [5] Recent Developments - An announcement from the Trump administration prohibiting major institutional investors from buying additional single-family homes in the U.S. led to a significant drop in INVH's stock, with shares falling 6% intraday on January 7 [6] - On October 29, 2025, the company reported a 4.2% year-over-year increase in total revenues to $688.17 million, driven by a 3.2% annual growth in rental revenues to $593.61 million, with an average occupancy rate of 96.5% [7]

Core Insights - Invitation Homes (INVH) has announced the acquisition of Resibuilt Homes for $89 million, with potential additional earn-out payments of up to $7.5 million, aimed at enhancing its development capabilities in response to the growing demand for affordable housing [1][8] Group 1: Acquisition Details - Resibuilt Homes, based in Atlanta, has delivered over 4,200 homes since its inception in 2018, focusing on quality construction and a resident-centered approach [2] - The acquisition includes 23 existing fee-building contracts and a pipeline of additional third-party fee opportunities, with INVH also having the option to acquire around 1,500 well-located lots for future development [3][8] - The deal is expected to be immediately value accretive and contribute modestly to INVH's 2026 AFFO per share [3][8] Group 2: Strategic Implications - The acquisition will enhance INVH's ability to deliver homes that meet its operational standards, potentially improving leasing activity and tenant retention [6] - This move positions INVH to strengthen its presence in the fast-growing Sun Belt markets, reduce reliance on external developers, and create a more integrated growth platform [6] Group 3: Operational Model - Invitation Homes operates on an asset-light model, partnering with top homebuilders to develop BTR units, aiming for profitability with minimal capital investment [5]

Core Viewpoint - The Single-Family Rental (SFR) REITs have experienced a significant decline due to potential regulatory changes regarding institutional investors' ability to purchase single-family homes, marking a challenging year for the sector [1][54]. Industry Overview - SFR REITs have shown strong fundamentals, with consistent growth in AFFO (Adjusted Funds from Operations) per share [4]. - The sector has historically achieved robust rental rate growth and high occupancy rates, particularly as renting became more economical compared to owning due to rising home prices and mortgage rates [16][19]. - The influx of new supply in 2022 and 2023 has created headwinds for rental rates, leading to increased competition for existing properties [20][23]. Company Analysis - Invitation Homes (INVH) and American Homes 4 Rent (AMH) are now considered to be in value territory after recent price drops, prompting the company to add them to active coverage [3]. - INVH and AMH own over 85,000 and 61,000 homes, respectively, allowing them to leverage scale for improved margins and customer satisfaction [13][14]. - AMH reported a rental operating margin of 55% and INVH at 56% for Q3 2025, showcasing their operational efficiency [14][15]. Valuation Metrics - The market price of SFR REITs has dropped significantly since late 2021, while AFFO has continued to rise, leading to lower trading multiples that align with the REIT index [40][44]. - INVH is trading at 16.0X AFFO and AMH at 17.8X AFFO, indicating a shift from their historically premium valuations [45]. - Both companies are trading at substantial discounts to their net asset values, with INVH at 68.7% and AMH at 75.7% of NAV [52]. Future Outlook - The near-term AFFO growth is expected to be subdued due to the supply wave, but demand remains healthy, suggesting a potential return to organic growth rates post-2025 [36][37]. - The proposed ban on institutional buying of homes could have mixed implications, potentially reducing new supply while benefiting existing properties [56][57].

Core Viewpoint - The Single-Family Rental (SFR) REITs have experienced a significant decline due to potential regulatory changes regarding institutional investors' ability to purchase single-family homes, marking a challenging year for the sector [1][54]. Industry Overview - SFR REITs have shown strong fundamentals, with consistent growth in AFFO (Adjusted Funds from Operations) per share [4][36]. - The sector has historically achieved robust rental rate growth and high occupancy rates, particularly as renting became more economical compared to owning due to rising home prices and mortgage rates [16][19]. Market Dynamics - The SFR market is highly fragmented, with many small operators struggling to compete with larger REITs like Invitation Homes (INVH) and American Homes 4 Rent (AMH), which own over 85,000 and 61,000 homes, respectively [9][13]. - The scale of larger REITs allows for improved margins and customer satisfaction, as they can employ experienced property managers and mechanics [14][19]. Recent Performance - AMH reported rental revenue of $478.5 million and NOI of $263.5 million, achieving a rental operating margin of 55% in Q3 2025 [15]. - INVH reported rental revenue of $666.2 million and NOI of $370.1 million, with a rental operating margin of 56% [15]. Supply and Demand Factors - A surge in new SFR developments in 2022 has created a competitive environment, leading to pressure on rental rates, particularly in markets like Phoenix and Atlanta [20][23]. - Same-store NOI growth for INVH has decreased to about 1% from an average of 4%, while AMH has maintained a ~4% growth rate due to its diversified property locations [29][32]. Valuation Insights - The recent decline in market prices has brought SFR REITs into value territory, with INVH and AMH trading at multiples of 16.0X and 17.8X AFFO, respectively, aligning them with the REIT index [44][45]. - Both companies are trading at significant discounts to their net asset values, with INVH at 68.7% and AMH at 75.7% of NAV [52]. Future Outlook - The near-term AFFO growth is expected to be subdued due to the supply wave, but demand remains healthy, suggesting a potential rebound in organic growth rates post-2025 [37][51]. - The proposed ban on institutional buying could negatively impact external growth but may enhance organic growth by reducing competition from new supply [56][57].

Core Viewpoint - Invitation Homes Inc. has acquired ResiBuilt Homes, LLC for $89 million, enhancing its capacity to address the demand for attainable housing through new construction and partnerships [1][3]. Group 1: Acquisition Details - The acquisition price is $89 million, with potential additional earn-out payments of up to $7.5 million based on performance [1]. - The transaction includes 23 existing fee-building contracts and a pipeline of additional third-party fee opportunities [3]. - Invitation Homes has secured options to acquire approximately 1,500 well-located lots for future development [3]. Group 2: Company Background - ResiBuilt, headquartered in Atlanta, has delivered over 4,200 homes since its founding in 2018 and is known for quality construction and operational efficiency [2]. - The team from ResiBuilt, including Co-founder and President Jay Byce, will continue to operate under the ResiBuilt brand after the acquisition [2]. Group 3: Strategic Vision - The acquisition aligns with Invitation Homes' long-term vision to create value through a dynamic build-to-rent growth strategy [4]. - The company aims to enhance its execution capabilities and address housing affordability by adding supply in desirable markets [4]. Group 4: Future Operations - ResiBuilt's original parent company, RESICAP, will remain independent and continue its operations in various sectors, but will not compete with ResiBuilt in ground-up BTR construction [5].

Defense Sector - The defense sector experienced significant volatility following President Trump's announcement of a proposed military budget increase to $1.5 trillion for fiscal 2027, a 50% increase from the $962 billion requested for 2026, leading to a surge in defense stocks [3][4] - Lockheed Martin's shares rose 4.3% on January 8, followed by a 4.2% increase on January 9, closing at $542.78, while Northrop Grumman and RTX also saw gains [3] - Smaller companies like Kratos Defense experienced a remarkable 13.8% increase, and defense-focused ETFs outperformed the broader market [3] Housing Market - President Trump's proposal to ban large institutional investors from purchasing single-family homes caused a decline in major stock indices, with the Dow Jones Industrial Average dropping 0.9% and the S&P 500 slipping 0.3% [5] - Shortly after, Trump announced a directive for federal agencies to purchase $200 billion in mortgage bonds to lower mortgage rates, which led to a rally in housing stocks, with Rocket Companies surging 9.65% and homebuilders like Lennar and D.R. Horton also experiencing significant gains [6][8] - Analysts expressed concerns that while bond purchases might lower mortgage yields, they could also increase housing demand, complicating the affordability issue [7] Energy Sector - The capture of Venezuelan President Nicolás Maduro and Trump's announcement of a $100 billion oil investment plan for Venezuela positively impacted major stock indexes, with energy stocks like Chevron and Exxon Mobil seeing gains [10] - However, by January 7, oil prices fell due to concerns over the long-term implications of Trump's plan to refine and sell Venezuelan crude, indicating a mixed market reaction [11] Tariffs and Legal Uncertainty - The market showed anxiety ahead of a Supreme Court ruling on Trump's tariffs, with Wall Street futures dipping as uncertainty persisted regarding the legality of these policies [13] - Kevin Hassett's expectation that the Supreme Court would side with the Trump administration on tariffs adds another layer of speculation to the ongoing legal battle, highlighting the tension between executive power and trade norms [14] Market Dynamics - The overall market remains highly reactive to Trump's pronouncements, with significant fluctuations observed across various sectors, including defense, housing, and energy, reflecting the interplay between presidential policy and economic fundamentals [15][16] - On January 9, major indices were on track for weekly gains, with the S&P 500 reaching a new all-time high of 6,966, indicating a volatile yet upward trend in the market [16]