Invitation Homes Delivers Strong Q4 Performance Amid Evolving Market Landscape
Invitation Homes, a leading provider of high-quality rental homes in desirable neighborhoods across the US, has reported a strong fourth quarter performance for 2024. The company's operational and financial results demonstrate solid execution across its platform, with core FFO per share growth of 6.4% and AFFO per share growth of 6.7%. This achievement underscores Invitation Homes' ability to maintain a high level of performance despite the evolving market landscape.
"Our residents continue to choose Invitation Homes for the long term," said Dallas Tanner, Chief Executive Officer. "During the fourth quarter, average length of stay was approximately 38 months, and we achieved a renewal rate of 80% with same-store rental rate growth on renewals of 4.2% year-over-year." This is a testament to the value proposition offered by Invitation Homes' high-quality homes in desirable neighborhoods.
Invitation Homes has also made significant strides in its strategic growth initiatives, growing its JV and third-party managed home count by more than 6.5x last year to over 25,000 homes. This business is expected to continue to have opportunities for growth in the future. The company's pipeline remains robust, with more than 2,000 homes under development by its homebuilder partners at the start of this year.
"We've moved beyond the traditional build-to-rent model and are evaluating new opportunities and structures to strengthen our growth profile," said Tanner. "Our unique broad-spectrum approach considers everything from early-stage builder partnerships to the acquisition of stabilized communities." This has allowed Invitation Homes to enhance its scale and density within its core markets and potentially expand its existing footprint by evaluating new markets with attractive growth profiles.
The company's focus on efficiency and operational excellence is also evident in its financial performance. Its same-store NOI margin returned over 68% last year, and Invitation Homes believes it can continue to see improvement as it further executes on its growth and efficiency objectives.
"We're proud of our team's ability to deliver strong results despite the evolving market landscape," said Tanner. "Our focus on building long-term relationships with residents, partners, and stakeholders will continue to drive our performance in the years ahead." Invitation Homes is well-positioned for continued success, with a robust pipeline, growing JV business, and commitment to operational excellence.
As the company looks to the future, it remains focused on its strategic growth initiatives. "We're excited about the opportunities ahead of us," said Tanner. "Our unique approach to building homes and communities will continue to drive our growth and performance in the years to come."
