Invitation Homes Inc. (INVH), headquartered in Dallas, Texas, is the nation's premier single-family home leasing and management company. Valued at $18.7 billion by market cap, the company owns and operates single-family rental homes, as well as offers acquisition underwriting and execution, upfront capital investment and renovation, ongoing leasing and maintenance operations, and dispositions services. The single-family rental giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, Feb. 26.
Ahead of the event, analysts expect INVH to report a profit of $0.47 per share on a diluted basis, up 4.4% from $0.45 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s FFO estimates in its last four quarterly reports.
For the full year, analysts expect INVH to report FFO of $1.83, up 3.4% from $1.77 in fiscal 2023. Its FFO is expected to rise 3.3% year over year to $1.89 in fiscal 2025.
INVH stock has underperformed the S&P 500’s ($SPX) 24.6% gains over the past 52 weeks, with shares down 7.3% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 4.6% gains over the same time frame.
INVH's underperformance is likely due to weaker same-store revenue growth in markets like Phoenix, Tampa, Orlando, and Dallas, leading to decreased investor confidence and a decline in stock price. Additionally, accusations from the U.S. Federal Trade Commission (FTC) of misconduct, including misleading customers, failing to inspect homes, imposing unfair fees, and withholding security deposits, may have further contributed to the negative movement in its performance.
On Oct. 30, INVH reported its Q3 results and its shares closed down more than 5% in the following trading session. Its core FFO increased 6.8% year over year to $0.47. The company’s revenue stood at $660.3 million, up 6.9% year over year.
Analysts’ consensus opinion on INVH stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 12 give a “Hold.” INVH’s average analyst price target is $36.87, indicating a potential upside of 18.6% from the current levels.
