DALLAS – Invitation Homes Inc . (NYSE: NYSE:), a leading player in the single-family home leasing sector, is set to expand its portfolio with the addition of approximately 500 newly built homes. The company has committed to a $140 million investment for properties located in Charlotte, Jacksonville, and Nashville.
These acquisitions are part of Invitation Homes’ strategy to address the ongoing housing supply shortage and are facilitated through new partnerships with three prominent homebuilders.
The delivery of these homes is slated to commence later in the year, marking a significant step in the company’s growth. In 2023, Invitation Homes took delivery of 648 new homes and projects to receive around 1,000 homes in 2024 from its new product pipeline.
Invitation Homes’ Chief Investment Officer, Scott Eisen, expressed pride in the company’s initiative to expand homebuilder partnerships, which he believes will not only enhance the housing supply but also offer the best risk-adjusted returns to stockholders. Eisen also emphasized the company’s role in providing housing options in desirable neighborhoods, thereby helping residents save towards their personal goals.
As an S&P 500 entity, Invitation Homes is renowned for providing high-quality, updated homes strategically located near employment hubs and reputable schools. The company’s mission, “Together with you, we make a house a home,” underscores its dedication to fostering thriving communities and delivering exceptional service to its residents.
This announcement contains forward-looking statements, including expectations about the company’s business performance, financial results, liquidity, and capital resources. Still, these statements are subject to various risks and uncertainties, such as those inherent to the single-family rental industry, macroeconomic factors, competition, and potential adverse economic conditions.
Invitation Homes has directed investors to consider the risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the SEC for a more comprehensive understanding of these uncertainties.
This news is based on a press release statement from Invitation Homes Inc. and does not include any speculative content or endorsement of the company’s claims.
InvestingPro Insights
Invitation Homes Inc. (NYSE: INVH) is demonstrating robust financial health and strategic growth as it expands its portfolio in the single-family home leasing sector. With a market capitalization of $21.71 billion, the company’s size and stability are evident. The commitment to invest $140 million in new properties is a testament to its growth-oriented approach.
InvestingPro Tips reveal that Invitation Homes has consistently raised its dividend for 7 consecutive years, underscoring its commitment to returning value to shareholders. The company’s liquid assets surpassing short-term obligations is another positive sign, indicating a strong balance sheet that can support ongoing operations and investments.
From a valuation perspective, Invitation Homes is trading at a high earnings multiple, with a P/E ratio of 41.54 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 62.75. This suggests that the market has high expectations for the company’s future earnings potential. Moreover, the company is trading near its 52-week high, with the price at 95.17% of the peak, reflecting investor confidence in its prospects.
InvestingPro Data metrics provide further insights:
- The company’s revenue growth for the last twelve months as of Q4 2023 stands at 8.34%, indicating a healthy expansion of its business activities.
- Gross profit margin for the same period is at a strong 59.57%, showing the company’s effectiveness in managing its cost of sales and maintaining profitability.
- The dividend yield as of the latest data is 3.22%, which is attractive to income-focused investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on https://www.investing.com/pro/INVH, providing a comprehensive view of Invitation Homes’ financials and market performance. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a treasure trove of actionable insights to inform their investment decisions.
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