Invitation Homes' FFO and Revenues Beat Estimates in Q1

Core Insights - Invitation Homes Inc. reported first-quarter 2025 core funds from operations (FFO) per share of 48 cents, exceeding the Zacks Consensus Estimate of 47 cents and matching the prior-year quarter's figure [1] - Total revenues reached $674.5 million, surpassing the Zacks Consensus Estimate of $669.4 million and reflecting a 4.4% year-over-year improvement [2] Financial Performance - Same-store core revenues increased by 2.5%, while same-store core operating expenses remained flat year over year, leading to a 3.7% improvement in same-store net operating income (NOI) [3] - Same-store renewal rent grew by 5.2%, whereas same-store new lease rent declined by 0.1%, resulting in a same-store blended rent growth of 3.6% [3] - Average occupancy for same-store properties was 97.2%, down 60 basis points year over year [3] Portfolio Activity - In Q1 2025, the company acquired 577 wholly owned homes for approximately $194 million and 54 homes in joint ventures for around $19 million [4] - The company disposed of 454 wholly owned homes for gross proceeds of about $173 million and 16 homes in joint ventures for gross proceeds of $6 million during the same period [4] Balance Sheet - As of the end of Q1 2025, Invitation Homes had total liquidity of $1.36 billion, which includes unrestricted cash and undrawn capacity on its revolving credit facility [5] - The company's total secured and unsecured debt was $8.18 billion, with a Net Debt/TTM adjusted EBITDAre ratio of 5.3X [5] Credit Ratings - Following the quarter end, S&P Global Ratings reaffirmed the issuer and issue-level credit ratings for Invitation Homes at 'BBB' and upgraded its outlook to 'Positive' from 'Stable' [6] 2025 Guidance - Invitation Homes maintained its initial 2025 outlook, expecting core FFO per share between $1.88 and $1.94, with a midpoint of $1.91, aligning with the Zacks Consensus Estimate [7] - The full-year guidance is based on anticipated same-store revenue growth of 1.75% to 3.25% and an increase in same-store expenses of 2.75% to 4.25%, with same-store NOI projected to rise by 1.00% to 3.00% [7] Industry Performance - Other residential REITs, such as Essex Property Trust Inc. and Equity Residential, also reported positive first-quarter results, indicating favorable growth trends in the sector [10][11]