2024-06-06 11:47:27 ET
Summary
- Invitation Homes has seen flat share performance due to real estate-related stocks being weighed down by higher rates and rental inflation slowing.
- The company owns over 84,000 homes and has launched a third-party property management platform, with a focus on the Sun Belt region.
- Positive demand fundamentals, including millennials entering family formation years and affordability challenges, support INVH's rental growth and occupancy rates.
- In its June update, rent growth reaccelerated, likely due to these factors, and even apartment rents have begun rising again.
- With strong dividend coverage, a healthy balance sheet, and mid-single digit FFO growth, INVH is an attractive long-term investment.
Shares of Invitation Homes ( INVH ) have traded essentially flat over the past year, missing out on a meaningful equity market rally. Real estate-related stocks have been weighed down by higher rates, and rental inflation has slowed. I last covered Invitation Homes in September , rating it a “buy,” given favorable long-term secular dynamics. Since then, shares have returned about 8%, moving towards my $36-38 price target, but this has lagged the market’s 20+% return. Its recent investor update leaves me positive, and I see INVH as an attractive dividend growth stock....
Read the full article on Seeking Alpha
For further details see:
Invitation Homes: Positive June Update Strengthens Favorable Long-Term Dynamics