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Yahoo
8 hours ago
- Business
- Yahoo
Is Essex Property Trust Underperforming the Dow?
Valued at a market cap of $18.3 billion, Essex Property Trust, Inc. (ESS) is a self-administered and self-managed real estate investment trust (REIT). Headquartered in San Mateo, California, the company acquires, develops, redevelops, and manages apartment communities in selected residential areas located on the West Coast of the United States. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Essex Property Trust Energy fits this description perfectly. The company has ownership interests in 257 apartment communities comprising over 62,000 apartment homes, with an additional property in active development. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Essex Property Trust's stock dropped 10.6% from its 52-week high of $317.73. Shares of ESS have declined 5% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 1.4% increase. In the longer term, shares of Essex Property have decreased marginally over the past 52 weeks, underperforming the Dow Jones' 8.6% return over the same time frame. Additionally, ESS stock has dropped marginally on a YTD basis, aligning with the DOWI's performance over the same time period. The stock has been trading below its 200-day moving average since early April. Yet, it has risen above its 50-day moving average since mid-June. ESS stock rose 1.5% following its solid Q1 2025 results on Apr. 29. The company's same-property revenues increased 3.4% year-over-year, while net operating income rose 3.3% from the prior year quarter to $284.9 million. Its core FFO came in at $3.97 per share, reflecting a 3.7% increase from the year-ago quarter and surpassing the consensus estimate of $3.92. The growth in core FFO was primarily driven by strong same-property revenue performance, increased co-investment income, and reduced interest expense. In contrast, rival Invitation Homes Inc. (INVH) has underperformed ESS stock over the past 52 weeks, declining 5.5%. Although INVH stock has returned 5.6% on a YTD basis, surpassing ESS stock. While the stock has underperformed relative to the Dow over the past year, analysts have a moderately optimistic outlook. With 27 analysts covering the stock, the consensus rating is 'Moderate Buy,' and it is currently trading below the mean price target of $309.12. On the date of publication, Sohini Mondal 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
Yahoo
2 days ago
- Business
- Yahoo
Is Invitation Homes Stock Underperforming the S&P 500?
With a market cap of $20.6 billion, Invitation Homes Inc. (INVH) is a real estate investment trust (REIT) that engages in owning, renovating, leasing, and operating single-family residential properties. Based in Dallas, Texas, the company has approximately 85,138 homes for lease, and also manages properties on behalf of others. Companies worth $10 billion or more are generally labeled as 'large-cap' stocks, and Invitation Homes fits this criterion perfectly. The company focuses on providing long-term housing solutions, emphasizing resident satisfaction, operational efficiency, and sustainable community growth. Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Dear Nvidia Stock Fans, Mark Your Calendars for July 16 The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Invitation Homes stock has dropped 11.3% from its 52-week high of $37.80. Shares of INVH have decreased marginally over the past three months, underperforming the S&P 500 Index's ($SPX) 5.4% increase. Longer term, shares of Invitation Homes have dipped 5.6% over the past 52 weeks, notably lagging behind the SPX's 9.3% return over the same time frame. However, INVH stock has returned 4.9% on a YTD basis, outpacing the SPX, which has risen 1.7%. Despite recent fluctuations, the stock has been trading above its 50-day moving average since late February. Invitation Homes' stock rose 2.7% following the release of its strong Q1 2025 results on Apr. 30. The company reported revenues of $674 million, up 4.4% year-over-year, exceeding the consensus estimate of $669.4 million. Its core FFO came in at $0.48 per share, marking a 2.1% increase year-over-year and beating analysts' expectations. Adjusted FFO stood at $0.42 per share, up 2.4% from the prior-year quarter. Looking ahead to fiscal 2025, Invitation Homes expects core FFO to range between $1.88 per share and $1.94 per share, in line with Wall Street forecasts. It also anticipates joint venture acquisitions between $100 million and $200 million, with AFFO projected in the range of $1.58 to $1.64 per share. In contrast, rival Essex Property Trust (ESS) has lagged behind INVH stock on a YTD basis, declining marginally. Although shares of ESS have increased marginally over the past 52 weeks, outperforming INVH stock. Although INVH has underperformed relative to SPX over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of 'Moderate Buy' from the 23 analysts covering it, and it is currently trading below the mean price target of $37.69. On the date of publication, Sohini Mondal 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 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Citi upgrades Invitation Homes, downgrades American Homes 4 Rent on valuation gap
--Citi upgraded Invitation Homes (NYSE:INVH) to Buy and downgraded American Homes (NYSE:AMH) 4 Rent to Neutral, citing relative valuation and expectations that Invitation Homes' earnings growth will soon catch up with its peer. Citi said the recent underperformance of INVH shares, about 6% behind American Homes since first-quarter results, has widened the valuation gap to an attractive entry point. INVH now trades at a roughly 30 basis point implied cap rate discount to AMH, which Citi sees as near the lower end of historical levels. 'We believe INVH is in a good position to assess these risks given its knowledge of BTR rents and valuations in the market,' the analysts wrote, adding that INVH's guidance appears more conservative and may beat expectations on occupancy and rent growth. Citi sees additional upside from INVH's new lending program, which could add 7 cents to annual earnings, about a 3.5% boost, over the medium term. The initiative also opens up more opportunities to acquire built-to-rent communities from homebuilders. Despite slower lease growth in recent months, Citi expects both INVH and AMH to grow rents at around 4% over the next few years. While AMH may have already peaked in new lease growth in May, the bank noted that differences in rent trends were modest and likely driven by methodology and market reaction to seasonality. Citi raised its price target on INVH to $38.50 from $35, implying a 4.8% cap rate and a 19x multiple on 2026 core FFO. It maintained a $41 target for AMH, equating to a 4.7% cap rate and a 21x multiple. We continue to like the single-family rental sector overall, Citi said, but sees greater upside in INVH due to potential earnings reacceleration and a return to more typical relative valuation. Related articles Citi upgrades Invitation Homes, downgrades American Homes 4 Rent on valuation gap Melius upgrades Deere on long-term tech moat and recurring revenue upside UAE's data center project with U.S. tech firms faces security concerns Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Should You Retain Invitation Homes Stock in Your Portfolio Now?
Invitation Homes Inc. INVH is poised for growth with a diverse portfolio in infill locations in high-growth markets, an asset-light model, technological moves, process enhancements and a healthy balance sheet. However, the elevated supply of rental units in some of Invitation Homes' markets and the high debt burden are its concerns. Last month, INVH reported first-quarter 2025 core funds from operations (FFO) per share of 48 cents, beating the Zacks Consensus Estimate of 47 cents. The reported figure compared favorably with the prior-year quarter's 47 cents. Results reflected higher same-store NOI, with increased same-store blended rent, though lower same-store average occupancy partly marred the upside. Invitation Homes is poised to benefit from a high-quality portfolio of single-family rental units in infill locations in the Western United States, Sunbelt and Florida. Solid demand for such rental units in the high-growth markets with favorable demographic trends is likely to benefit the company in the upcoming quarters. INVH operates on an asset-light model by building relationships for built-to-rent units with top homebuilders like D.R. Horton, Lennar, Pulte, Meritage and many others who develop homes and deliver them to the company. It aims to drive profitability through a value-added platform and minimal capital investments. Invitation Homes is leveraging technological initiatives and process enhancements through the ProCare application for enhanced customer experience and margin expansion. Such efforts are likely to capture additional NOI, driving long-term profitability. Per the company's March Investor Presentation, this residential REIT estimates around $80 million in value-added revenues for 2025. Invitation Homes continues to focus on its strategic priorities, such as disciplined capital distribution and maintaining an investment-grade balance sheet. As of March 31, 2025, the company had $1.36 billion of liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The company's Net debt/TTM adjusted EBITDAre was 5.3X, and it has no debt maturing before 2027. A healthy balance sheet position enables it to procure debt financing at a favorable rate. Solid dividend payouts are arguably the biggest enticement for REIT investors, and INVH remains committed to that. The company has increased its dividend five times in the last five years, and the five-year annualized dividend growth rate is 17.59%, which is encouraging. Given Invitation Homes' operating platform and solid financial position, its dividend seems sustainable and well-covered by cash flow from operations. The struggle to lure renters is likely to persist as the volume of new deliveries remains elevated in several markets where Invitation Homes operates. Particularly in markets like Texas, Florida and Phoenix and a few others with easier barriers to entry, the company is witnessing supply pressures, resulting in lower rental rates. Despite the Federal Reserve announcing rate cuts late in 2024, the interest rate is still high and is a concern for Invitation Homes. Elevated rates imply high borrowing costs for the company, affecting its ability to purchase or develop real estate. The company has a substantial debt burden, and its total debt as of March 31, 2025 was $8.18 billion. Over the past three months, shares of this Zacks Rank #3 (Hold) company have fallen 2.8%, narrower than the industry's decline of 10%. Image Source: Zacks Investment Research Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and W.P. Carey WPC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share has been raised marginally over the past month to $2.34. The consensus estimate for W.P. Carey's current-year FFO per share has moved northward by 1% in the past month to $4.88. Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.P. Carey Inc. (WPC) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
Invitation Home: Q1 Earnings Snapshot
DALLAS (AP) — DALLAS (AP) — Invitation Home Inc. (INVH) on Wednesday reported a key measure of profitability in its first quarter. The results beat Wall Street expectations. The Dallas-based real estate investment trust said it had funds from operations of $298.3 million, or 48 cents per share, in the period. The average estimate of seven analysts surveyed by Zacks Investment Research was for funds from operations of 47 cents per share. Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization. The company said it had net income of $165.5 million, or 27 cents per share. The real estate investment trust focused on single-family rentals, based in Dallas, posted revenue of $674.5 million in the period, also surpassing Street forecasts. Five analysts surveyed by Zacks expected $669.4 million. _____
