• Core FFO per Share Growth: 6.4% for the full year 2024.
• AFFO per Share Growth: 6.7% for the full year 2024.
• Renewal Rate: 80% with same-store rental rate growth on renewals of 4.2% year over year.
• Same-Store NOI Margin: Over 68% for 2024.
• NOI Growth: 4.7% year over year for Q4 2024; 4.6% for the full year 2024.
• Core Revenue Growth: 2.7% for Q4 2024; 4.3% for the full year 2024.
• Core Operating Expense Growth: Reduced by 1.5% for Q4 2024; 3.7% growth for the full year 2024.
• Property Tax Expense Growth: 5.8% year over year for 2024.
• Average Occupancy: Above 97% for 2024.
• Blended Rent Growth: 3.9% for the full year 2024.
• Total Revenues: $659 million for Q4 2024, a 5.6% increase year over year.
• Property Operating Costs: $228 million for Q4 2024, slightly lower year over year.
• Core FFO per Share: Up 5.9% for Q4 2024.
• AFFO per Share: Up 8.9% for Q4 2024.
• Liquidity Position: Nearly $1.4 billion at year-end 2024.
• Net Debt to Adjusted EBITDA Ratio: 5.3 times at year-end 2024.
• 2025 Guidance - Core FFO per Share: $1.88 to $1.94.
• 2025 Guidance - AFFO per Share: $1.58 to $1.64.
• 2025 Guidance - Same-Store NOI Growth: 1% to 3%.
• 2025 Guidance - Wholly Owned Acquisitions: $600 million at the midpoint.
• 2025 Guidance - Dispositions: $500 million at the midpoint.

• Warning! GuruFocus has detected 4 Warning Sign with INVH.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Invitation Homes Inc (NYSE:INVH) reported strong operational and financial results for Q4 2024, with core FFO per share growth of 6.4% and AFFO per share growth of 6.7%.
• The company achieved a high renewal rate of 80% with same-store rental rate growth on renewals of 4.2% year over year, indicating strong resident retention.
• INVH expanded its JV and third-party managed home count by more than 6.5 times to over 25,000 homes, showcasing significant growth in its management portfolio.
• The company maintained a robust liquidity position with nearly $1.4 billion in liquidity and a net debt to adjusted EBITDA ratio of 5.3 times, indicating strong financial health.
• INVH's strategic growth initiatives, including builder partnerships and capital recycling, have enhanced scale and density within core markets, supporting margin expansion and operational efficiency.

Negative Points

• The company is facing supply pressures in certain markets, particularly in Florida and Phoenix, which could impact new lease rent growth and occupancy rates.
• INVH is taking a cautious approach to 2025 guidance due to uncertainties around new supply, potential tariffs, and prolonged higher mortgage rates.
• The company anticipates a slight increase in turnover and longer days on market, which could affect occupancy rates and rental growth.
• INVH's bad debt expense remains a concern, with elongated timelines in certain markets like Atlanta and Chicago affecting collections.
• The company is experiencing challenges in some markets with increased supply, requiring competitive pricing strategies to maintain occupancy.

Q & A Highlights

Q: Eric Wolfe from Citibank asked about the blended rent growth guidance for 2025, questioning why it isn't expected to accelerate further given the current trends. A: Jonathan Olsen, CFO, explained that while they anticipate blended rent growth in the mid-3s, they are taking a measured approach due to supply pressures and potential impacts on occupancy. They expect turnover to remain similar to 2024, with some impact from longer days on market.

Q: Michael Goldsmith from UBS inquired about the impact of new home deliveries and the early signs of improvement mentioned in the opening remarks. A: Dallas Tanner, CEO, noted that while there are still pressures in certain markets like Florida and Phoenix, they are seeing some moderation in supply. They remain optimistic about future improvements and are focusing on renewals, which constitute a significant portion of their leasing volume.

Q: Daniel Tricarico from Scotiabank asked about the impact of recent wildfires in Southern California on their guidance and whether there has been a reevaluation of being a net seller in West Coast markets. A: Charles Young, COO, stated that the fires had no material impact on guidance, as they only lost two homes. The West Coast markets continue to perform well with high occupancy and strong rates. Dallas Tanner added that they continue to evaluate opportunities for capital recycling in these markets.

Q: Jana Galan from Bank of America asked about the current transaction market and capital allocation strategies, including the focus on bulk portfolios or BTR communities. A: Dallas Tanner highlighted their focus on new product through builder partnerships and being asset-light. Scott Eisen, CIO, added that they are seeing deal flow in bulk portfolios and stabilized BTR communities, with a focus on selective opportunities that offer the best risk-adjusted returns.

Q: Austin Wurschmidt from KeyBanc Capital Markets inquired about the potential growth from projects outside the traditional SFR model and the possibility of entering new markets. A: Jonathan Olsen, CFO, emphasized the contribution of third-party management to earnings growth. Dallas Tanner mentioned ongoing evaluations of expanding current markets and entering new ones, leveraging technology and automation to enhance efficiency and growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.