Invitation Homes: An Above-Average REIT At A Below-Average Valuation

Summary

• Invitation Homes, a real estate investment trust that owns and operates single-family homes for lease across the United States, is now a $21 billion (by market cap) real estate titan.
• To date, the company has increased its dividend for eight consecutive years, with a five-year dividend growth rate of 18.8%.
• Invitation Homes advanced its revenue from $1.1 billion in FY 2017 to $2.4 billion in FY 2023, a compound annual growth rate of 13.9%.
• The forward P/FFO ratio is 18.4, based on midpoint guidance for this year’s core FFO/share, which is somewhat analogous to a P/E ratio on a normal stock.

Thomas Barwick