Raymond James slightly bearish on REITs as property tax and bad debts rise
29/11/2022 12:54
** Real estate investment trust (REIT) company Invitation
Homes Inc's shares INVH.N slip 1.2% to $30.6 before the bell
** Raymond James downgrades both INVH and American Homes 4
Rent AMH.N to "outperform" from "strong buy"
** Also cuts PT for INVH to $35 from $44 and for AMH to $36
from $45
** Brokerage says higher expense trends will continue to
impact earnings in FY23; says spiking property taxes will slow
net operating income (NOI) growth
** Says with rental assistance programs winding down,
non-paying tenants are weighing on bad debt numbers, especially
in the state of California
** RJ, however, is positive on single-family rental (SFR)
industry as an investment opportunity in residential sub sector,
considering mortgage rates are near a near two-decade high
** AMH was down 0.2% in light trading premarket
** 13 of 22 brokerages rate INVH "buy" or higher and 9
"hold"; their median PT is $37 -Refinitiv data
** Up to Monday's close, INVH and AMH had fallen 31.6% and
27.4% YTD respectively
(Reporting by Shristi Achar A in Bengaluru)
((Shristi.AcharA@thomsonreuters.com;))