Invitation Homes trims annual core FFO forecast

Invitation Homes

25/10/2023 23:11

Oct 25 (Reuters) - Single-family rental giant Invitation
Homes Inc  INVH.N  on Wednesday trimmed its full-year core funds
from operations (FFO) forecast, amid growing weakness in the
real-estate sector due to higher interest rates.
    REITs tend to borrow heavily, so higher rates put pressure
on their bottom line. 
    The housing market has been especially sensitive to the
Federal Reserve's efforts to curb inflation and soften demand
through aggressive interest rate increases since March 2022. 
    Invitation Homes expects full-year core AFFO between $1.75
and $1.79 per share, compared with its previously expected range
of $1.75 to $1.81. 
    The largest landlord of single-family houses in the United
States also missed estimates for core FFO in the third quarter.
    It reported core FFO of 44 cents per share, compared with
analysts' estimates of 45 cents per share, as per LSEG data.
    Shares of the Dallas Texas-based company fell 1.3% in
aftermarket trade. 

 (Reporting by Mehr Bedi and Aishwarya Jain in Bengaluru;
Editing by Shailesh Kuber)
 ((Mehr.bedi@thomsonreuters.com))