Core Insights - Invitation Home (INVH) reported revenue of $659.13 million for the quarter ended December 2024, reflecting a year-over-year increase of 5.6% [1] - The earnings per share (EPS) for the quarter was $0.47, significantly higher than $0.21 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $663.21 million, resulting in a revenue surprise of -0.62% [1] - The company met the consensus EPS estimate of $0.47, indicating no EPS surprise [1] Revenue Breakdown - Management Fee Revenues reached $21.08 million, exceeding the average estimate of $19.02 million by three analysts, representing a year-over-year increase of 516.4% [4] - Rental Revenues were reported at $576.63 million, which was below the average estimate of $643.98 million from three analysts, showing a year-over-year increase of 2.3% [4] Stock Performance - Over the past month, Invitation Home's shares have returned +3.3%, contrasting with a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Invitation Home (INVH) reported quarterly funds from operations (FFO) of $0.47 per share, matching the Zacks Consensus Estimate and showing an increase from $0.45 per share a year ago [1] Financial Performance - The company posted revenues of $659.13 million for the quarter ended December 2024, which was 0.62% below the Zacks Consensus Estimate, compared to $624.32 million in the same quarter last year [2] - Over the last four quarters, Invitation Home has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Invitation Home shares have increased by approximately 0.4% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] Estimate Revisions - The current consensus FFO estimate for the upcoming quarter is $0.48 on revenues of $674.33 million, and for the current fiscal year, it is $1.93 on revenues of $2.75 billion [7] - The estimate revisions trend for Invitation Home is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Residential industry is currently in the bottom 25% of the Zacks industry rankings, which may negatively impact stock performance [8]

Financial Performance - Q4 2024 total revenues increased 5.6% year over year to $659 million, while FY 2024 total revenues rose 7.7% to $2,619 million[9]. - Q4 2024 net income available to common stockholders was $143 million, or $0.23 per diluted share, compared to $0.21 per diluted share in Q4 2023; FY 2024 net income was $453 million, or $0.74 per diluted share, down from $0.85 per diluted share in FY 2023[9][12]. - Core FFO per share for FY 2024 reported at $1.88, with FY 2025 guidance midpoint at $1.91, reflecting a $0.03 increase[31]. - Net income for Q4 2024 was $143.6 million, compared to $129.9 million in Q4 2023, marking an increase of 10.4%[45]. - Net income available to common stockholders for Q4 2024 was $142,941,000, an increase from $129,368,000 in Q4 2023, representing a growth of 4.1%[48]. - Core FFO for FY 2024 reached $1,157,164,000, up from $1,086,416,000 in FY 2023, indicating a year-over-year increase of 6.5%[48]. - Adjusted EBITDAre for FY 2024 was $1,496,883,000, compared to $1,413,480,000 in FY 2023, showing an increase of 5.9%[164]. Revenue and Occupancy - Q4 2024 Same Store NOI grew 4.7% year over year, driven by 2.7% Same Store Core Revenues growth and a 1.5% reduction in Same Store Core Operating Expenses; FY 2024 Same Store NOI increased 4.6%[9][15]. - Q4 2024 Same Store Average Occupancy was 96.7%, a decrease of 60 basis points year over year; FY 2024 Same Store Average Occupancy was 97.3%, down 10 basis points[9][15]. - Rental revenues for FY 2024 totaled $2.3 billion, compared to $2.2 billion in FY 2023, indicating a growth of 4.2%[45]. - Same Store Core Revenues for Q4 2024 increased by 0.6% sequentially, totaling $553,233,000 compared to $551,738,000 in Q3 2024[79]. - Average Monthly Rent for Same Store properties in Q4 2024 was $2,419, up from $2,405 in Q3 2024, reflecting a 0.6% increase[79]. - Average Monthly Rent for Same Store properties in FY 2024 was $2,392, a 3.9% increase from $2,303 in FY 2023[81]. Expenses and Debt - Interest expense for FY 2024 was $366.1 million, compared to $333.5 million in FY 2023, reflecting an increase of 9.8%[45]. - Total debt as of December 31, 2024, was $8,287,197,000, with a weighted average interest rate of 3.9%[54]. - The company's net debt stood at $7,996,049,000, resulting in a leverage ratio of 5.3x based on TTM Adjusted EBITDAre[54]. - Total recurring operating expenses, net for Q4 2024 were $31,947, down from $40,375 in Q3 2024[91]. - Total Cost to Maintain, net for Q4 2024 was $64,637, a decrease from $86,641 in Q3 2024[91]. Acquisitions and Dispositions - The Company acquired 501 homes for approximately $171 million in Q4 2024 and 2,200 homes for $764 million in FY 2024, while dispositions totaled 581 homes for $245 million in Q4 2024 and 1,575 homes for $646 million in FY 2024[9][22][23]. - The company disposed of 564 homes in Q4 2024, achieving an average sales price of $423,101 per home[96]. - As of December 31, 2024, the expected acquisition pipeline includes 2,031 new homes, with estimated deliveries of 1,449 homes in 2025[101]. Guidance and Future Projections - FY 2025 guidance for Core FFO per share is projected to be between $1.88 and $1.94, with Same Store Core Revenues growth expected between 1.75% and 3.25%[29]. - Same Store Core Operating Expenses growth guidance for FY 2025 is projected to decrease by 2.0% to 3.0% year-over-year[30]. - The company anticipates a reduction in FY 2025 property taxes by 5.0% to 6.0% year-over-year[30]. Legal and Compliance - Legal settlements in FY 2024 included $77,000,000 related to a Federal Trade Commission inquiry and a legal dispute, impacting net income[49]. - Breach of covenants in the Unsecured Credit Agreements could lead to default on indebtedness, impacting the Company's financial stability[147]. Operational Metrics - The total number of homes in the portfolio as of Q4 2024 was 85,138, with the same store portfolio comprising 90.0% of the total[65]. - The turnover rate for Q4 2024 was 5.1%, a decrease from 6.1% in Q3 2024[71]. - The average cap rate for wholly owned acquisitions during Q4 2024 was 5.9%, while the cap rate for dispositions averaged 2.6%[100].

Core Viewpoint - Invitation Homes Inc. (INVH) is positioned to benefit from a high-quality portfolio of single-family rental units in desirable locations, although it faces challenges from elevated supply and high-interest expenses [1][2][6]. Group 1: Business Model and Strategy - The company operates an asset-light model by partnering with top homebuilders for built-to-rent units, which allows for healthy yields with limited risk [1][3]. - Invitation Homes targets high-growth markets with desirable neighborhoods and a young population, focusing on infill locations [3]. - The company is leveraging technological initiatives, such as the ProCare application, to enhance customer experience and drive long-term profitability [4]. Group 2: Financial Position - As of September 30, 2024, Invitation Homes had $2.03 billion in liquidity, consisting of unrestricted cash and undrawn capacity on its revolving credit facility [5]. - The total debt outstanding was $9.1 billion, with a Net debt/TTM adjusted EBITDAre ratio of 5.4x [5][7]. Group 3: Market Challenges - The company is experiencing supply pressures in several markets, including Tampa, Orlando, Dallas, and Phoenix, leading to lower rental rates due to slower absorption of new leases [6]. - High-interest expenses remain a concern, particularly as the company carries a substantial debt burden [2][7].

Core Viewpoint - Wall Street analysts anticipate Invitation Home (INVH) will report quarterly earnings of $0.47 per share, reflecting a year-over-year increase of 4.4%, with revenues expected to reach $663.21 million, up 6.2% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised downward by 1.1% over the past 30 days, indicating a collective reassessment by analysts [1] - Analysts project 'Revenues- Management Fee Revenues' to be $19.02 million, representing a significant year-over-year increase of 456.2% [4] - 'Revenues- Rental revenues' are expected to be $643.98 million, indicating a 14.2% increase from the year-ago quarter [4] - Depreciation and amortization is predicted to reach $179.67 million, compared to $173.16 million from the previous year [4] Group 2: Market Performance - Invitation Home shares have increased by 5.6% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.2% [5] - With a Zacks Rank of 3 (Hold), INVH is expected to closely follow overall market performance in the near term [5]

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Group 1 - Invitation Homes (NYSE: INVH) has underperformed the broader market and REIT index in 2024, with a total return of just 3% [1] - The shares of Invitation Homes have declined approximately 10% over the past period [1]

Group 1: Mid-America Apartment Communities (MAA) - Mid-America Apartment Communities has increased its dividend for 14 consecutive years, with a 5% increase last December [3] - The REIT's funds from operations (FFO) have decreased from $6.85 to $6.65 per share due to increased apartment supply affecting occupancy and rent growth [4] - The company anticipates a decline in new apartment supply, which is expected to lead to higher occupancy and rent growth in the coming years [5] - Mid-America is actively developing eight new apartment communities and acquiring recently built apartments, which will contribute to future earnings growth [6] - The stock price is currently 33% below its peak, resulting in a dividend yield near 4%, making it an attractive investment opportunity [7] Group 2: Invitation Homes (INVH) - Invitation Homes has increased its dividend every year since going public in 2017, with a 7.7% increase last December [8] - The REIT has maintained a high occupancy level of 97% and achieved a 4.2% growth in same-store rents in the third quarter [8] - The company has expanded its portfolio by purchasing 1,591 homes for $557 million and investing $37 million in joint venture homes [9] - Demand for single-family rental homes remains strong, with renting being 33% more affordable than buying in key markets [10] - Invitation Homes has a strong balance sheet and plans to acquire about 2,700 homes from builders, enhancing its growth potential [11] - Despite a 30% decline in stock value from its peak, the REIT's dividend yield is around 3.5%, indicating an attractive investment opportunity [12] Group 3: Investment Outlook - Both Mid-America Apartment Communities and Invitation Homes offer attractive dividend yields and have significant growth potential ahead [13] - The decline in stock prices for both REITs has created opportunities for investors seeking income and growth [13]

Revenue and Income - Rental revenues for Q3 2024 reached $641.3 million, an increase of 4.2% from $614.3 million in Q3 2023[11] - Total revenues for the nine months ended September 30, 2024, were $1.96 billion, compared to $1.81 billion for the same period in 2023, reflecting a growth of 8.4%[11] - Net income attributable to common stockholders for Q3 2024 was $95.3 million, down from $131.8 million in Q3 2023, representing a decrease of 27.6%[11] - Net income for the three months ended September 30, 2024, was $95,578,000, a decrease of 27.8% compared to $132,221,000 for the same period in 2023[14] - Comprehensive income attributable to common stockholders for the three months ended September 30, 2024, was $52,598,000, down from $138,562,000 in the prior year, representing a decline of 62%[14] - Net income for the nine months ended September 30, 2024, was $311,795,000, a decrease from $391,087,000 for the same period in 2023, reflecting a decline of approximately 20.3%[14] Expenses and Liabilities - Property operating and maintenance expenses for Q3 2024 were $242.2 million, an increase of 5.8% from $229.5 million in Q3 2023[11] - Interest expense for the nine months ended September 30, 2024, was $270.9 million, compared to $243.4 million for the same period in 2023, indicating a rise of 11.3%[11] - Total liabilities and equity as of September 30, 2024, amounted to $19.63 billion, up from $19.22 billion at the end of 2023[10] - The accumulated deficit increased to $(1,275,601,000) as of September 30, 2024, compared to $(1,198,481,000) as of June 30, 2024[16] - Total stockholders' equity as of September 30, 2024, was $9,951,662,000, a decrease from $10,066,709,000 as of June 30, 2024[16] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $948,997,000, down from $1,019,544,000 in 2023, indicating a decrease of about 6.9%[22] - Total cash, cash equivalents, and restricted cash at the end of the period was $1,245,472,000, compared to $979,891,000 at the end of September 2023, reflecting an increase of approximately 27.1%[23] - The acquisition of single-family residential properties amounted to $543,039,000 for the nine months ended September 30, 2024, down from $906,845,000 in 2023, a decrease of approximately 40.1%[22] - Proceeds from the sale of single-family residential properties were $305,849,000 for the nine months ended September 30, 2024, compared to $354,409,000 in 2023, indicating a decline of about 13.7%[22] - The company reported a change in cash flow from operating leases of $4,814,000 for the nine months ended September 30, 2024, compared to $4,597,000 in 2023, an increase of approximately 4.7%[23] Shareholder Information - The company declared dividends of $0.28 per share for the three months ended September 30, 2024, totaling $172,389,000[16] - The number of common shares outstanding as of September 30, 2024, was 612,605,478, an increase from 611,958,239 as of December 31, 2023[16] - The company intends to pay quarterly dividends that approximately equal or exceed its net taxable income for the relevant year[104] - The company issued 612,605,478 shares of common stock as of September 30, 2024, with 1,979,009 outstanding OP Units redeemable[102] Risks and Challenges - The company continues to face risks related to the single-family rental industry, including macroeconomic factors and competition, which may impact future performance[4] - The company faces significant risks including inflation, high unemployment, and geopolitical tensions, which could adversely affect its financial condition and operations[29] - The company continues to face risks related to unfavorable economic conditions, including inflation and high unemployment, which could impact financial performance and asset values[29] Accounting and Compliance - The company is currently evaluating the impact of new accounting standards issued by FASB, including ASU 2023-05, ASU 2023-07, and ASU 2023-09, which may affect future financial disclosures[32][33] - The company is required to maintain a minimum fixed charge coverage ratio and a minimum unsecured interest coverage ratio under its loan covenants[82] Property Management and Operations - The company provided property and asset management services for 25,535 homes as of September 30, 2024, a significant increase from 3,656 homes in the same period of 2023[48] - Future minimum rental revenues and other property income under leases are projected to total $1,775,962 as of September 30, 2024[48] - Average monthly rent for occupied properties increased, contributing to the overall rental revenue growth, although specific figures were not disclosed[6] Derivatives and Hedging - The company has entered into various interest rate swap agreements to hedge variable cash flows, with a notional amount of $400,000,000 indexed to one month Term SOFR and a strike rate of 2.80%[89] - The company reported unrealized losses on interest rate swaps of $21,587,000 for the three months ended September 30, 2024, compared to unrealized gains of $27,845,000 in the same period of 2023[14] - The total liabilities related to derivatives as of September 30, 2024, are $118,000, reflecting a decrease from previous periods[92] Impairments and Losses - The company recognized impairments totaling $270 during the three months ended September 30, 2024, compared to $83 in the same period of 2023, reflecting a significant increase in impairment losses[36] - The company recorded net unrealized losses on investments still held at the reporting date totaling $(269) for the three months ended September 30, 2024[52] Debt and Financing - As of September 30, 2024, the total outstanding principal balance of mortgage loans is $1,614,220, a decrease from $1,627,256 as of December 31, 2023, representing a reduction of approximately 0.9%[57] - The company has entered into binding purchase agreements for the acquisition of 2,243 homes over the next four years, with remaining commitments totaling approximately $670,000 as of September 30, 2024[128] - The company issued $500,000 of 4.88% Senior Notes maturing on February 1, 2035, on September 26, 2024[70]