Invitation Homes: Buying The Dip
Summary
- Invitation Homes shares have fallen during the past year despite strong fundamentals.
- Demand for single family home rentals remains strong as more would-be homebuyers are hamstrung by higher mortgage rates stimulating rental demand.
- Even in a slowing economy, Invitation Homes is poised for continued NOI growth as in-place rents are below market with a loss-to-lease of ~10% as of 3Q22.
- Trading at an implied valuation of $300,000 per home, Invitation Homes trades at a 25% discount to the median US home price and a 5.6% implied cap rate with a 3% dividend yield.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of INVH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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