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."
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Shares of Invitation Homes closed at $34.20 yesterday.