Invitation Homes expects 2024 FFO below estimates on higher property tax

Invitation Homes

24/07/2024 22:39

July 24 (Reuters) - Invitation Homes  INVH.N  forecast
annual per-share funds from operations (FFO) below Wall Street
estimates on Wednesday in anticipation of higher property taxes
and other fixed expenses, sending its shares down 4.5% in
extended trading.
    The real estate investment trust (REIT) expects full-year
adjusted funds from operations (AFFO) per share of $1.55 to
$1.61, below analysts' estimates of $1.88, according to LSEG
data. 
    Sticky inflation has led to higher fixed costs, offsetting
the benefit from strong demand for single-family rentals that
has allowed the company to increase rental rates.   
        The company's profits are also under pressure from
steeper same-store property tax rates in its key markets,
Florida and Georgia.
  
    Fixed expenses rose 8.3% due to property taxes.      
    The real estate investment trust (REIT), which has about
85,000 homes for lease in 16 markets across the U.S., reported
revenue of $653 million for the quarter ended June 30, 8.8%
higher than last year. 
    Second-quarter AFFO per share came in at 40 cents per share,
below estimates of 47 cents. 

 (Reporting by Ananta Agarwal and Aishwarya Jain in Bengaluru;
Editing by Devika Syamnath)
 ((Ananta.agarwal@thomsonreuters.com;))