Latest news with #InvitationHomes
CNBC
a day ago
- Business
- CNBC
Institutional landlords see new competition from an unexpected source
It's getting harder to sell a home, as rising supply, high mortgage rates and waning consumer confidence conspire to keep potential buyers on the sidelines. Now some frustrated sellers are deciding to de-list their properties and instead offer them on the rental market. These new rentals are coming in direct competition with institutional investors in the rental space, especially in the markets where those investors are most prevalent. The largest investors, those with more than 50,000 homes in their portfolios, are highly concentrated geographically. Names like Invitation Homes, American Homes 4 Rent and Progress Residential each hold over a third of their assets in just six U.S. housing markets, according to an analysis by Parcl Labs: Atlanta, Phoenix, Dallas, Houston, Tampa, Florida, and Charlotte, North Carolina. These markets have seen inventory growth of well over 20% in the past year — much of it from former owner-occupants. "When these home sellers cannot find buyers, they face three choices: delist and wait, cut price to find market clearing level, or convert to rental. The last option creates what Parcl Labs terms 'accidental landlords': Owners who enter the single-family rental market not by design, but by necessity," wrote Jesus Leal Trujillo, principal data scientist at Parcl Labs. Garret Johnson bought his Dallas home two years ago, but recently got a new job in Houston. He thought selling his home last March would be easy. "There weren't many buyers, just lookers, and people were biding their time waiting for better rates. [There was] a lot of economic uncertainty in those months, March and April, that we had listed the house, so I think that played a factor as well," Johnson said. After a few months, Johnson decided to try putting his home up for rent. It wasn't his ideal plan, he said, but in just the first few days, he had several offers. The rent doesn't fully cover his mortgage, Johnson said, but he recast his loan and put more equity in the home to lower the payments. He also changed his homeowners insurance to a landlord policy for additional savings. Johnson said he doesn't expect to sell for several years. CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today. "I've gotten to be creative, and hopefully the goal is, in the next few years, to start to turn a profit on the month-to-month basis of the rent versus mortgage," he said. The inventory of homes for sale has already been growing steadily over the past year, especially in the formerly hot pandemic migration markets like the Sun Belt. Homes are sitting on the market longer as sellers, used to the heady price hikes of the last five years, are reluctant to lower their prices. As more for-sale supply enters the rental pool, that could limit landlord pricing power. "You're not going to see big reductions in rent, but maybe you won't be able to get 4% or 5% increases on your rent. Maybe it's just 1% to 2% in some cases," said Haendel St. Juste, a senior equity research analyst at Mizuho Securities. "But the professional big guys, INVH, AMH, have been getting 4% to 5% renewal rates and 75% retention in their portfolio. So keeping people in the homes at 4% to 5% rent is a key part of their business model." This is not, however, the first time this has happened. "We saw something like this in 2022 after mortgage rates doubled: A huge uptick in the number of people who owned one property besides their primary residence," said Rick Sharga, CEO of CJ Patrick Co., a real estate advisory firm. The largest single-family rental REITs are now selling more homes than they're buying, according to a count by Parcl Labs. That does not, however, mean they're exiting the market. "They are deploying more funds into build-to-rent projects, rather than competing with smaller investors and traditional homebuyers for resale properties," said Sharga, suggesting that doing so limits the threat from those so-called accidental landlords. That minimizes some of the risk, but St. Juste said the biggest landlords will have to incur some occupancy decline in order to optimize their revenue, as opposed to just slashing rents. "The incremental risk from this slow selling season is that there could be more supply, you know, come this fall, come next spring, that could limit some of the rental growth upside for next year," he said.
Yahoo
14-07-2025
- Business
- Yahoo
How to Easily Collect Passive Income From Real Estate Without Buying a Rental Property
Investing in REITs is an easy way to generate passive income from real estate. Invitation Homes owns over 110,000 single-family rental homes that generate dividend income for investors. Realty Income owns over 15,600 commercial properties that produce very stable rental income to support its rising monthly dividend. 10 stocks we like better than Realty Income › Many people buy one or more rental properties to generate passive income. That can be a very good income-producing strategy. However, it does have some drawbacks, including a high up-front investment and the need to actively manage the property. An even easier way to make passive income from real estate is to buy shares of a real estate investment trust (REIT). These entities own large portfolios of professionally managed income-generating rental properties. They distribute a portion of the cash flow to investors via dividend payments. Those features make REITs very passive investments. Here are a couple of top REITs to consider buying for super-easy passive income from real estate. Most beginning real estate investors will buy a single-family home that they'll turn into a rental property. While this strategy can yield some rental income, it has many potential pitfalls. For example, tenant troubles or repair issues can quickly turn your property from a moneymaker to a money pit. Invitation Homes (NYSE: INVH) makes it easy to invest in single-family rental properties without all the possible pitfalls. The REIT owns or manages over 110,000 homes across 16 top housing markets. That broad diversification helps reduce risk, enabling the landlord to generate steadier income to support dividend payments. The company pays its investors $0.29 per share in dividends each quarter ($1.16 annually). With its share price recently in the low $30s, it has a dividend yield of around 3.5%. Put another way, every $1,000 invested in the REIT would produce about $35 of passive dividend income each year. Invitation Homes typically pays out a little more than 70% of its cash flow in dividends. It retains the rest to invest in new rental properties. The REIT will buy houses on the open market, purchase rental properties from other investors, and acquire homes directly from homebuilders. For example, the company recently partnered with several homebuilders to buy over 300 future homes for more than $100 million. It also provided a $32.7 million loan to a homebuilder developing a 156-home community that it can purchase upon completion. The landlord's investments to expand its portfolio grow its rental income. That enables the REIT to increase its dividend. It has raised its payment every year since its initial public offering in 2017, including by 3.7% last December. As real estate investors build their portfolios, they often diversify into commercial real estate. That strategy requires a significant amount of capital, as these properties are expensive to purchase. However, they can generate very stable rental income backed by long-term leases. Realty Income (NYSE: O) makes it easy to invest in commercial real estate. The REIT owns a diversified portfolio of 15,600 properties across the U.S. and Europe. It owns single-tenant retail, industrial, gaming, and other properties net leased to many of the world's leading companies (its top tenants include 7-Eleven, FedEx, and Walmart). Net leases are very landlord-friendly because they require tenants to pay all property operating costs, including building insurance, real estate taxes, and routine maintenance. As a result, the REIT generates very stable cash flow. The company pays its investors each month (currently $0.269 per share or $3.228 annually). With its stock price in the mid $50s, Realty Income has a dividend yield of more than 5.5%. At that rate, you'd collect around $4.60 in dividend income each month for every $1,000 invested in the REIT. Realty Income also routinely raises its monthly dividend payment. It has increased the amount 131 times since its public market listing in 1994, including the last 111 quarters in a row. It has grown its payout at a 4.2% compound annual rate over the past 30 years. The REIT should be able to continue steadily increasing its payment. It pays out about 75% of its stable cash flow in dividends, enabling it to retain the other 25% to invest in income-generating properties. Realty Income also has a strong balance sheet, giving it additional financial flexibility to invest in properties. It makes sale-leaseback transactions with property owner-operators, buys portfolios from other investors, and invests in build-to-suit development projects. Investing in a rental property isn't for everyone. However, anyone can buy shares of a REIT to collect passive dividend income. Invitation Homes and Realty Income are great options because they pay steadily rising dividends supported by high-quality portfolios and financial profiles. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in FedEx, Invitation Homes, and Realty Income. The Motley Fool has positions in and recommends FedEx, Invitation Homes, Realty Income, and Walmart. The Motley Fool has a disclosure policy. How to Easily Collect Passive Income From Real Estate Without Buying a Rental Property was originally published by The Motley Fool
Business Insider
12-07-2025
- Business
- Business Insider
RBC Capital Keeps Their Hold Rating on Invitation Homes (INVH)
In a report released on July 10, Brad Heffern from RBC Capital maintained a Hold rating on Invitation Homes, with a price target of $35.00. The company's shares closed yesterday at $32.35. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Heffern is ranked #1430 out of 9826 analysts. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Invitation Homes with a $37.73 average price target, which is a 16.63% upside from current levels. In a report released on June 30, BMO Capital also maintained a Hold rating on the stock with a $38.00 price target. INVH market cap is currently $19.78B and has a P/E ratio of 94.24. Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INVH in relation to earlier this year. Last month, Dallas B Tanner, the CEO of INVH sold 148,749.00 shares for a total of $4,969,704.09.
Business Wire
09-07-2025
- Business
- Business Wire
Invitation Homes Announces Dates for Second Quarter 2025 Earnings Release and Conference Call
DALLAS--(BUSINESS WIRE)--Invitation Homes Inc. (NYSE: INVH) ('Invitation Homes' or the 'Company'), the nation's premier single-family home leasing and management company, will release its second quarter 2025 financial and operating results on Wednesday, July 30, 2025, after the market closes. The Company will host a conference call that will be webcast live on Thursday, July 31, 2025, at 11:00 a.m. Eastern Time to review second quarter results, discuss recent events, and conduct a question-and-answer session. A link to the live webcast and related information will be available online from the Company's investor relations website at Following the conclusion of the earnings call, the Company will post a replay of the webcast to its website for one year. Live Conference Call Details: Domestic: 1-888-330-2384 International: 1-240-789-2701 Conference ID: 7714113 Webcast: About Invitation Homes: Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality homes with valued features such as close proximity to jobs and access to good schools. Our purpose, Unlock the power of home™, reflects our commitment to providing living solutions and Genuine CARE™ to the growing share of people who count on the flexibility and savings of leasing a home.
Yahoo
05-07-2025
- Business
- Yahoo
What to Expect From Invitation Homes' Next Quarterly Earnings Report
With a market capitalization of $19.9 billion, Invitation Homes Inc. (INVH) is a leading provider of single-family home leasing and management services in the U.S. The Texas-based company owns and operates a vast portfolio of single-family rental homes and also offers a full suite of services, including acquisition underwriting, capital investment and renovation, leasing and maintenance, and property dispositions. The company is scheduled to release its fiscal second-quarter earnings on Wednesday, July 23. Ahead of the event, analysts expect INVH to report an FFO of $0.47 per share on a diluted basis, flat from the year-ago quarter. The company has consistently surpassed Wall Street's FFO estimates in each of its last four quarterly reports. UnitedHealth Stock Is One of the Worst-Performing S&P 500 Stocks in 2025. Should You Buy the Dip? AI Isn't Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race 'It's a Miracle': Nvidia CEO Says Their New Technology Takes 'AI Supercomputing to a Whole New Level' Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the current year, analysts expect INVH to report an FFO of $1.88, again, unchanged from fiscal 2024. Its FFO is expected to grow 4.3% year over year to $1.96. INVH stock has declined 9.4% over the past year, trailing the S&P 500 Index's ($SPX) 13.4% gains and the Real Estate Select Sector SPDR Fund (XLRE), which saw a 9.5% increase during the same period. On Apr. 30, Invitation Homes' stock rose 2.7% following the release of its Q1 2025 results. It delivered strong performance with total revenues rising 4.4% year-over-year to $674.5 million and net income climbing 16.4% to $166 million, or $0.27 per share. AFFO rose 4% to $0.42, and same-store NOI increased 3.7%, supported by 3.6% blended rent growth and stable operating costs. Analysts' consensus opinion on INVH stock is reasonably bullish, with a 'Moderate Buy' rating overall. Among the 23 analysts covering the stock, ten advise a 'Strong Buy' rating, one suggests a 'Moderate Buy,' and 12 give a 'Hold.' INVH's average analyst price target is $37.74, indicating a potential upside of 15.7% from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
