The NY Times ran a story that is basically my post of a few days ago " Speed Kills "
I'm not saying they copied me, but you certainly got the thoughts first here at GBA.
Rents are going up up up. I tried to play this trend with a small play Dougless Edelman (DOUG) and got smoked. I still don't understand why.
High interest rates = more renting. More renting = more money for someone.
Invitation Homes
Invitation Homes is the largest single-family rental REIT. It has managed to amass over 80,000 rental homes across the country.<------
NYSE: INVH
Invitation Homes
Today's Change
(-1.96%) -$0.61
Current Price
$30.49
INVH
Key Data Points
Market Cap
$19B
Day's Range
$30.35 - $31.11
52wk Range
$28.52 - $44.36
Volume
6,404,021
Avg Vol
3,270,992
Gross Margin
60.77% <-------------
Dividend Yield
3.41% <--------------------
The company operates in high-demand, high-job-opportunity markets where the cost of rent is more affordable than buying. Being positioned in attractive locations like this creates high demand for its rental properties and a sticky tenant base. The REIT also leases to middle- and higher-income earners who earn on average 5 times more than their rent. This adds a layer of safety for the company because its tenants are more likely to be able to continue paying rent even if economic conditions like inflation impact its tenants' earnings.
The stock had a strong finish to the year, with its full-year revenue growing by 12% and its AFFO rising just over 10%. High demand and limited supply have helped its new and renewing rental rate grow by nearly 11% for the year. Invitation Homes knows this accelerated growth isn't the norm and is prepared for its 2023 earnings to better reflect more normalized rates of growth. But that doesn't mean it won't be able to deliver healthy earnings for shareholders in the future.
The company has a diverse acquisition pipeline, buying distressed properties from banks, auctions, and individual owners while also working with developers to create built-to-rent communities. Invitation Homes also had a reasonable dividend payout ratio of 62% over the past 12 months, which gives the company plenty of room to grow its payouts as it expands. It started 2023 with an 18% jump in its payout and has increased its dividend by 333% in its six years as a publicly traded company. Right now, the stock pays a dividend yield of just over 3%, which is near its highest yield percentage in history.
GBA UPGRADE- INVH.
