Invitation Homes Q4 FFO Meets Estimates, Revenues Increase Y/Y

Invitation Homes Inc. INVH reported fourth-quarter 2024 core funds from operations (FFO) per share of 47 cents, meeting the Zacks Consensus Estimates. The reported figure compared favorably with the prior-year quarter’s 45 cents.See the Zacks Earnings Calendar to stay ahead of market-making news.Results reflect higher same-store net operating income (NOI) and same-store blended rent. However, lower occupancy marred the performance to an extent.Total revenues of $659.1 million missed the Zacks Consensus Estimate by 0.62%. However, the figure improved 5.6% year over year.As per Dallas Tanner, CEO of Invitation Homes, “As we look ahead, we expect to continue to benefit from the sustained demand for high-quality, well-located single-family homes for lease. Our strategic vision for external growth, combined with our unwavering commitment for Genuine Care, positions us to drive strong performance and create long-term value for our stockholders.”For full-year 2024, core FFO per share was $1.88, which rose 6.2% from the prior-year tally and met the Zacks Consensus Estimate. Moreover, total revenues grew 7.7% to $2.62 billion.Invitation Homes’ Fourth Quarter in DetailDuring the fourth quarter, Invitation Homes’ same-store core revenues grew 2.7%, and same-store core operating expenses fell 1.5% year over year. As a result, same-store NOI improved 4.7% year over year.Invitation Homes witnessed yearly same-store renewal rent growth of 4.2% and same-store new lease rent decline of 2.2%, resulting in same-store blended rent growth of 2.3%.Same-store average occupancy was 96.7%, down 60 basis points year over year.Property management expenses grew 55% year over year to $39.2 million. Casualty losses, impairment and other expenses increased significantly year over year.For the fourth quarter, total acquisitions by the company and its joint ventures included 501 homes for $171 million, while dispositions totaled 581 homes for around $245 million.Invitation Homes’ Balance SheetInvitation Homes exited the fourth quarter of 2024 with total liquidity of $1.35 billion, including unrestricted cash and undrawn capacity on its revolving credit facility.Moreover, secured and unsecured debt aggregated $8.29 billion as of Dec. 31, 2024, and its Net Debt/TTM adjusted EBITDAre was 5.3X.Invitation Homes’ 2025 GuidanceInvitation Homes provided its initial 2025 outlook.It expects core FFO per share between $1.88 and $1.94, with a midpoint of $1.91. The Zacks Consensus Estimate for the same is pegged at $1.93, which lies in the guided range.The full-year guidance is based on the assumption of 1.75% to 3.25% growth in same-store revenues and a 2.75-4.25% increase in same-store expenses. Same-store NOI is projected to rise by 1.00% to 3.00%.INVH’s Zacks RankInvitation Homes currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Residential REITsAvalonBay Communities AVB reported a fourth-quarter 2024 core FFO per share of $2.80, missing the Zacks Consensus Estimate of $2.83. However, the figure increased 2.2% year over year.The quarterly results reflected higher property management, other indirect operating expenses and interest expenses. However, a year-over-year increase in same-store residential revenues and same-store NOI supported AVB’s results to an extent.Equity Residential EQR reported a fourth-quarter 2024 normalized FFO per share of $1.00, in line with the Zacks Consensus Estimate. The figure remained unchanged year over year.EQR’s quarterly results reflected healthy same-store revenue performance and high occupancy.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Equity Residential (EQR): Free Stock Analysis Report Invitation Home (INVH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks