Based in Dallas, Texas, Invitation Homes Inc. (INVH) provides real estate services that focus on owning, renovating, leasing, and operating single-family residential properties. Valued at a market cap of $20.8 billion, the company provides access to high-quality, updated homes with valued features and is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.
Ahead of this event, analysts expect the REIT to report an FFO of $0.45 per share, up 2.3% from $0.44 per share in the year-ago quarter. The company has consistently surpassed or met Wall Street's bottom-line estimates in the last four quarters. In Q2, the company reported an FFO of $0.47 per share, which topped the consensus estimates by 2.2%.
For fiscal 2024, analysts expect INVH to report an FFO of $1.83 per share, up 3.4% from $1.77 per share in fiscal 2023. Moreover, FFO is expected to increase 4.4% year-over-year to $1.91 per share in fiscal 2025.
Shares of INVH have gained 6.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 32.2% surge and the Real Estate Select Sector SPDR Fund’s (XLRE) 28.7% return over the same period.
On Sep. 24, shares of INVH plunged 2.6% after the U.S. Federal Trade Commission (FTC) accused the company of committing a range of misdeeds, including deceiving customers about lease costs, not inspecting residences before the arrival of new tenants, charging “junk fees” and unfairly retaining security deposits after tenants departure.
Moreover, despite beating Wall Street’s FFO estimates, the stock fell 7.7% following its Q2 earnings release on Jul. 24, primarily due to a 47% decline in its net income available to common shareholders to $73 million. The company’s weaker-than-expected core leasing activities and same-store revenues further dampened investor sentiments, offsetting an 8.8% increase in its total revenues and 7.3% year-over-year growth in its core FFO.
Analysts' consensus view on Invitation Homes’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 10 recommend "Strong Buy," two suggest "Moderate Buy," and 11 indicate “Hold.” This configuration is slightly more bullish than three months ago, with nine analysts suggesting a "Strong Buy."
The average analyst price target for INVH is $38.92, indicating a 14.5% potential upside from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
