Invitation Homes Q3 revenue beats estimates on rental rate growth

Overview

• U.S. single-family rental firm's Q3 revenue rose 6.3% yr/yr, beating analyst expectations

• Core FFO per share grew 2.4% yr/yr to $0.48

• Company repurchased nearly $1 bln in shares and authorized additional $500 mln buyback

Outlook

• Invitation Homes raises FY 2026 Core FFO per share midpoint to $1.96 from $1.95

• Company lifts FY 2026 Same Store NOI growth guidance midpoint to 1.2% from 1.15%

• Invitation Homes increases FY 2026 wholly owned home sales guidance midpoint to $950 mln

Result Drivers

• RENTAL RATE GROWTH - Co said Same Store Core Revenues growth was driven by a 1.8% increase in Average Monthly Rent and a 2.6% rise in other property income, partially offset by lower occupancy and higher bad debt

• OPERATING EXPENSES - Co said Same Store Core Operating Expenses increased 2.5% yr/yr, mainly due to a 4.9% rise in controllable expenses and a 1.1% increase in fixed expenses

• SHARE REPURCHASES - Core FFO per share growth was attributed in part to a lower share count from stock repurchases, per co

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for Invitation Homes Inc. is $33.00, about 21.4% above its October 27 closing price of $27.19

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 41 three months ago

Reuters Recommended Reads

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• Oct 27 - American Assets Trust Q3 FFO rises on higher rental rates; lifts outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)