Core Viewpoint - Invitation Homes is experiencing signs of softening in its performance metrics, leading to a decline in share prices despite the company's optimistic long-term outlook for growth in annual funds from operations (AFFO) [1][2][4]. Company Performance - Invitation Homes reported a quarter-to-date renewal lease rate growth of 4.4%, down from 5.6% in the previous quarter, and new lease rate growth of 1.9%, compared to 3.6% in the prior three months [3][4]. - The company emphasized the strength of its third-party management business and strong relationships with homebuilders, positioning itself well for future growth [2][5]. Market Context - The current trends indicate a potential slowdown, which has raised concerns among investors, particularly in light of broader economic conditions affecting consumer health [4]. - Despite recent stock performance, which has seen a 20% decline since the start of 2022, the company maintains that leasing remains more affordable than buying in all 16 of its core markets, suggesting long-term growth opportunities [5][6].

Market Overview - The average home price in the United States has increased to over $360,000, a 77% rise from $203,000 in April 2016 [1] - As of July 31, 2024, the median sale price is $361,500, with a median list price of $405,933 [2] - The current 30-year fixed mortgage rate is approximately 6.5%, up from below 4.0% in 2016 [2][4] Affordability Crisis - The housing affordability index is at its worst since the mid-1990s, even worse than before the Great Financial Crisis [3] - The average monthly payment for a 6.5% mortgage is about 43% of the average salary of a full-time employee in the U.S. [4] - Proposed solutions to the affordability crisis include building 3 million homes and providing down payment assistance of $25,000 for middle-class Americans [4] Invitation Homes Inc. (INVH) - Invitation Homes owns approximately 85,000 homes in 16 core markets, focusing on high-growth areas [6][7] - The company benefits from a housing shortage of 2 to 4 million homes, which supports pricing power [6] - INVH expects to grow its same-store NOI by at least 3.75% this year, with a dividend yield of 3.1% and a payout ratio of 61% [13][14] Sun Communities, Inc. (SUI) - Sun Communities operates manufactured housing communities that are 97% occupied, providing affordable living options [16] - The company has a strong investment-grade balance sheet with no significant maturities until 2026 [18] - SUI offers a dividend yield of 2.8% with a healthy payout ratio of 53% and a five-year CAGR of 5.1% [19] Investment Outlook - Both Invitation Homes and Sun Communities are well-positioned to benefit from the ongoing affordability challenges in the housing market [22] - These companies provide solid growth opportunities and attractive dividends, making them compelling options for investors seeking capital appreciation and income [22]

Financial Data and Key Metrics Changes - Core FFO increased by 6.5% year-to-date, with a 7.3% increase in Q2 to $0.47 per share, while AFFO rose by 4.1% to $0.40 per share [75] - Same-store NOI grew by 3.8% year-over-year, driven by a 4.8% increase in core revenues and a 7.1% rise in core expenses [60][61] - Average occupancy remained high at 97.5%, approximately 140 basis points above the three-year historical average for Q2 prior to 2020 [63] Business Line Data and Key Metrics Changes - Same-store core revenues increased by 4.8%, primarily due to a 4.2% rise in average monthly rent and a 9.6% increase in other income [60] - Renewal rent growth was 5.6%, while new lease rates grew by 3.6%, resulting in blended rent growth of 5% year-over-year [63] Market Data and Key Metrics Changes - The company noted a moderation in markets like Phoenix and Central Florida, which had previously shown strong performance [84] - In South Florida, renewal growth reached 9.5%, while Atlanta saw a 6.3% increase, indicating strong performance in certain markets despite moderation elsewhere [86] Company Strategy and Development Direction - The company is focused on expanding partnerships with homebuilders to address housing supply shortages, with a pipeline of nearly 2,700 new homes planned for lease [50][51] - The strategy includes balancing rate and occupancy to optimize core revenue growth, with a focus on maintaining high occupancy levels [21][64] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting that while some markets are experiencing moderation, the overall business remains strong [84][87] - The company anticipates a return to normal seasonality in occupancy and leasing rates as the summer leasing season concludes [64] Other Important Information - The company has approximately $1.7 billion in available liquidity and maintains a proactive approach to managing its balance sheet [67] - Property tax expenses are expected to remain elevated in the third quarter, with year-over-year growth projected at 8% to 9.5% [70] Q&A Session Summary Question: Is the company seeing a larger trend in lower turnover? - Management indicated that turnover has been lower due to ongoing lease compliance cleanup, but trends are returning to normal levels [1][2][6] Question: How much do rates need to come down for acquisitions to accelerate? - Management stated that they evaluate acquisition cap rates based on market conditions and cost of capital, but specific thresholds are difficult to predict [8][9] Question: What are the expectations for blended spreads in the second half of the year? - Management indicated that blended rent growth is expected to be in the high 4s to low 5s for the remainder of the year, with a focus on balancing rate and occupancy [31] Question: Can you provide specifics on growth expectations for Florida, Phoenix, and Vegas? - Management noted a moderation in growth expectations for these markets, attributing it to seasonality and increased supply [20][21] Question: Which markets came in below expectations for property taxes? - Management highlighted Washington State and Minnesota as markets where property tax expectations were revised down due to better-than-expected assessments [24] Question: How quickly is the pipeline of new homes expected to be delivered? - Management explained that new homes are delivered gradually, with 691 homes expected in the second half of the year and the remainder over the next few years [14][15] Question: What is the outlook for renewal rate growth in the upcoming months? - Management expects renewal rates to improve in the fall, with current rates reflecting seasonal trends and loss to lease dynamics [104]

4 • "PSF" means per square foot. When comparing homes or cohorts of homes, we believe PSF calculations help management and external stakeholders normalize metrics for differences in property size, enabling more meaningful comparisons based on characteristics other than property size; • "Same Store" or "Same Store portfolio" includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an own ...

The reported revenue compares to the Zacks Consensus Estimate of $654.7 million, representing a surprise of -0.19%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.47. Here is how Invitation Home performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Shares of Invitation Home have returned +2.7% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank # ...

Over the last four quarters, the company has surpassed consensus FFO estimates just once. Invitation Home shares have added about 7% since the beginning of the year versus the S&P 500's gain of 16.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately. It will be interesting to see ...

p Dallas 2017 Southern California invitation homes EARNINGS RELEASE & EARNINGS RELEASE & SUPPLEMENTAL INFORMATION SECOND QUARTER 2024 Table of Contents Earnings Press Release | --- | |------------------------------------------------------------------| | | | Consolidated Financial Statements | | Schedule 1: Reconciliation of FFO, Core FFO, and AFFO | | Schedule 2: Capital Structure Information | | Schedule 3: Summary of Operating Information by Home Portfolio | | Schedule 4: Home Characteristics by Market | ...

Previous Buy Rating They acquired a minor equity interest in a single-family home portfolio in a deal with Quarterra, a subsidiary of Lennar Corporation (LEN). This added more than 4,000 homes to INVH's growing portfolio. Financials | --- | --- | --- | |----------------------|--------------|------------| | Fiscal Period Ending | FFO Estimate | YoY Growth | | Dec 2024 | 1.88 | 6.15% | | Dec 2025 | 1.97 | 4.99% | | Dec 2026 | 2.10 | 6.70% | | Dec 2027 | 2.27 | 7.62% | Ilmpressively, Invitation Homes received ...

Kirpal Kooner/iStock via Getty Images Seeking Alpha Invitation Homes NAHB Invitation Homes I say that because in its newly released June investor presentation, INVH disclosed that through May its Q2 blended lease rate accelerated to 5.3% from 4.4% in Q1, primarily due to new leases rising 3.5% from 0.8% in Q1. Occupancy ticked down slightly to 97.5% from 97.6%. Q2 and early Q3 are the seasonally critical period as families try to settle in before the school year starts in late Q3. As such, this reaccelerati ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38004 Invitation Homes Inc. (Exact name of registrant as specified in its charter) Maryland 90-0939055 (State or other jurisdiction of incor ...