GICS Sector : Real Estate
Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools.The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences. Show Full description
Invitation Homes reported a strong third quarter of 2025, with same-store renewal rate growth of 4.5%, up 30 basis points from the previous year, and blended rent growth of 3%. The company's same-store core revenue growth was 2.3%, while same-store NOI growth was 1.1%. The actual EPS came out at $0.22, which was lower than the estimated $0.47. The company's available liquidity stood at $1.9 billion, and its net debt-to-EBITDA ratio was 5.2x. Analysts estimate next year's revenue growth at 3.4%.
Publication Date: Nov -02
The company's financial performance was driven by its resilient platform and steady demand for single-family rentals. The average resident tenure increased to 41 months, indicating a stable customer base. Invitation Homes completed a $600 million bond offering in August and announced a share repurchase program of up to $500 million, demonstrating its commitment to returning value to shareholders.
Invitation Homes outlined its growth strategy through four channels: homebuilder partnerships, homebuilder month-end inventory, construction lending, and third-party management. The company's capital allocation framework prioritizes funding organic growth, investing in long-term total returns, and maintaining a strong balance sheet. With a stable portfolio and healthy demographics, Invitation Homes remains confident in the durability of demand for well-located single-family rentals.
With a P/E Ratio of 29.43 and an EV/EBITDA of 9.16, the market seems to be pricing in a certain level of growth for Invitation Homes. The company's Dividend Yield stands at 4.12%, making it an attractive option for income-seeking investors. As the company looks to drive shareholder value through strategic acquisitions and share buybacks, its ROIC of 145.81% indicates a strong ability to generate returns on invested capital.
The company acquired 2,493 homes during the quarter, with 70% coming from forward purchase deliveries and 30% from opportunistic one-off purchases from homebuilders at discounted prices. Invitation Homes offered targeted specials in October and November to boost traffic and generate leasing momentum, which have been successful. The loss to lease is low to mid-single digits, and turnover is expected to return to a long-term average of around 25%.
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Dec -02
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Nov -21
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Nov -20
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Nov -18
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Nov -18
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Nov -11
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Invitation Homes Inc.'s single-family home segment growth of 6.0% is driven by increasing demand for rental properties, particularly among millennials and Gen Z, who prefer flexibility and affordability over homeownership. Additionally, the company's strategic acquisitions, efficient property management, and focus on high-growth markets contribute to its growth momentum.
Invitation Homes offers a wide range of single-family rental homes, providing residents with a comfortable and convenient living experience.
Invitation Homes provides lease-to-own options, allowing residents to rent a home with the option to purchase in the future.
Invitation Homes offers property management services, including maintenance, repairs, and customer support, to ensure a seamless living experience.
Invitation Homes provides home renovation and rehabilitation services, restoring homes to a high standard of quality and safety.
Invitation Homes offers a range of resident services, including online rent payment, maintenance requests, and community events.
The threat of substitutes is low for Invitation Homes Inc. as the company operates in a niche market of single-family home rentals, making it difficult for substitutes to emerge.
The bargaining power of customers is medium as Invitation Homes Inc. operates in a competitive market, but the company's scale and brand recognition help to mitigate this power.
The bargaining power of suppliers is low as Invitation Homes Inc. is a large company with significant purchasing power, allowing it to negotiate favorable terms with suppliers.
The threat of new entrants is high as the single-family home rental market is attractive and has low barriers to entry, making it vulnerable to new competitors.
The intensity of rivalry is medium as Invitation Homes Inc. operates in a competitive market, but the company's scale and brand recognition help to mitigate the intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 47.51% |
| Debt Cost | 3.95% |
| Equity Weight | 52.49% |
| Equity Cost | 8.66% |
| WACC | 6.42% |
| Leverage | 90.50% |
Value: 3.6
Growth: 6.4
Quality: 7.1
Yield: 7.0
Momentum: 2.5
Volatility: 10.0
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Value: 3.3
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Yield: 7.0
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Growth: 5.2
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Yield: 7.0
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Value: 4.4
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Volatility: 3.3
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