CFRA Downgrades Invitation Homes (INVH) to Buy

CFRA analyst Kenneth Leon downgraded Invitation Homes (NYSE: INVH) from Strong Buy to Buy with a price target of $38.00.

The analyst comments "We keep $38 target, factoring in mid-single-digit growth and a forward P/FFO of 20.0x, in line with the single-family residential REIT average at 18.4x. We increase our 2024 FFO view by $0.02 to $1.90 and keep 2025 at $2.00. INVH posted Q1 2024 FFO of $0.47, a penny above consensus as cash NOI rose 4.1%. INVH guided for 2024 NOI growth of 3.5%-5.5% as expenses (+5.5%-7.0%) are expected to outrun revenue (+4.5%-5.5%). In Q1 2024, INVH realized 97.6% occupancy, 20 bps below a year ago. Rental rates on a blended basis rose 4.4% Y/Y, with renewal contracts +5.8% and new lease rates flat. The highest blended rental rates were South Florida +6.5%, Tampa +5.0%, Orlando +5.0%, Atlanta +5.0%, and Southern CA +4.7%. Laggards were Las Vegas +1.9%, Northern CA +3.0%, Houston +3.2%, Denver +3.4%, and Jacksonville +3.4%. In Q1 2024, property acquisitions were $136M for 273 homes and dispositions were $157M for 399 homes. For 2024, INVH guided for $600M to $1.0B in acquisitions and $400M to $600M in dispositions."

For an analyst ratings summary and ratings history on Invitation Homes click here. For more ratings news on Invitation Homes click here.

Shares of Invitation Homes closed at $34.20 yesterday.

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