US FTC reaches $48 mln settlement with Invitation Homes; shares down

Invitation Homes

24/09/2024 18:39

(Updates)
    ** Single-family residential REIT Invitation Homes' shares
 INVH.N  fall ~2% to $35.79 
    ** U.S. Federal Trade Commission says INVH would pay more
than $48 mln as part of settlement order over deceiving renters
about lease costs and charging undisclosed junk fees; proceeds
to be used to refund consumers
    ** Earlier today, brokerage BofA downgraded INVH's rating to
"neutral" from "buy", cut PT to $37 from $39
    ** Brokerage believes INVH may have overpromised results on
2H24, citing softness in new lease rate growth, seasonality
trends
    ** Says supply would remain pressured, affecting co's rent
growth in 2025
    ** "These risks are balanced by strong demand for Single
Family Housing given the overall underbuilding of this housing
product since the Global Financial Crisis" - brokerage
    ** 12 brokerages rate the stock "buy" or higher and 11
"hold"; their median PT is $39 - LSEG data
    ** Up to last close, stock had risen ~5% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))