Invitation Homes Earnings: Fourth-Quarter Results and 2024 Guidance Both in Line With Expectations

Invitation Homes reported fourth-quarter results that were in line with our estimates, giving us confidence in our $41 fair value estimate for the no-moat company. Same-store occupancy improved by 10 basis points sequentially to 97.1%, slightly better than our estimate of flat growth. Average monthly rents increased 5.3% year over year, which was in line with our estimate of 5.2% growth and drove same-store revenue growth of 5.9% for the quarter. Same-store operating expense growth of 6.6% in the fourth quarter was slightly higher than our 4.1%, leading to same-store net operating income, or NOI, growth of 5.6% that was slightly below our 6.8% estimate. The company reported core funds from operations, or FFO, of $0.45 per share that matched our estimate for the fourth quarter and was two cents better than the $0.43 figure the company reported in the fourth quarter of 2022.