Invitation Homes Turns To Homebuilders To Bolster Inventory
Summary:
Invitation Homes, the largest owner of single-family rentals in the US with around 85,000 properties, is facing challenges in finding properties to purchase. Despite a strong demand for rental homes, the company struggles to acquire suitable properties, often getting outbid when they do find something that fits their criteria. They are turning to homebuilders to strengthen their portfolio and have formed partnerships with them to build new homes. Invitation Homes reported revenues of $618 million in the third quarter, with a robust leasing market and rents returning to historical norms. They are also selling older, non-core properties to fund new acquisitions, with a construction pipeline of 1,931 homes in partnership with third-party builders. The company is well-positioned with ample liquidity for potential merger and acquisition deals in the future.