Invitation Homes Earnings: Solid Same-Store Growth Combined With Expansion of Management Platform

Invitation Homes reported second-quarter results that were in line with our estimates, leading us to reaffirm our $41 fair value estimate for the no-moat company. Same-store occupancy fell 30 basis points sequentially to 97.5%, though same-store average monthly rent was up 4.2% year over year. As a result, same-store revenue increased 4.8% in the quarter, slightly better than our 4.4% estimate. However, same-store operating expenses were up 7.1% in the second quarter, leading to same-store net operating income growth of 3.8%, which was relatively in line with our estimate of 3.6% growth. Invitation Homes reported core funds from operations of $0.47 per share in the quarter, which matched our estimate and was 7.3% higher than the $0.44 figure the company reported in the same period in 2023.