Invitation Homes posts higher quarterly revenue on rental growth

Invitation Homes

30/10/2024 22:32

Oct 30 (Reuters) - Invitation Homes  INVH.N  posted
higher third-quarter revenue on Wednesday, as volatile mortgage
rates pushed more consumers to rent instead of buying.
    The real estate investment trust, which has about 85,000
homes for lease in 16 markets across the U.S., reported nearly
7% rise in quarterly revenue of $660.3 million.
    Analysts estimated $652.7 million, according to data
compiled by LSEG.
    With the popular 30-year fixed mortgage rate currently
hovering around 6.5%, many customers prefer to rent affordable
single-family homes rather than taking out an expensive loan. 
    Moreover, overall demand for affordable housing options
remains strong, as the U.S. faces a chronic shortage of
single-family homes dating back to the 2008 housing market
crash.
    The Dallas, Texas-based REIT reported 1.7% growth in
same-store new lease rent growth — the rental hike offered to
new tenants.
    Renewal rates grew 4.2% and the company achieved a blended
rental growth rate of 3.6%, which reflects a combination of new
lease and renewal rates.
    Third-quarter funds from operations (FFO), a key measure of
performance for REITs, increased 6.8% from a year ago to 47
cents per share.
  
    The REIT also lifted the lower end of its full-year adjusted
FFO forecast to a range of $1.57 to $1.61 per share, compared
with earlier forecast ranging from $1.55 to $1.61 apiece.
    The new forecast's mid-point of $1.59 per share, however,
comes lower than the analysts' estimate of $1.88 per share.

(Reporting by Ananta Agarwal and Aatreyee Dasgupta in Bengaluru;
Editing by Alan Barona)
((mailto: Ananta.agarwal@thomsonreuters.com))