DALLAS - Invitation Homes Inc . (NYSE: NYSE:INVH), a leading single-family home leasing company, has priced a public offering of senior notes, the company announced today. The $500 million offering of 4.875% Senior Notes, due in 2035, has been set at 98.855% of the principal amount.
The closing of the offering is anticipated for September 26, 2024, pending the fulfillment of customary closing conditions. The notes will be guaranteed by Invitation Homes and its affiliates, including Invitation Homes OP GP LLC and IH Merger Sub, LLC.
Proceeds from the notes sale are intended for general corporate purposes. This may cover repaying debt, working capital, acquiring and renovating single-family properties, and other activities aligned with the company's business strategy.
A consortium of banks, including PNC Capital Markets LLC, Deutsche Bank Securities, and several others, are managing the book-running for the offering. Co-managers include BMO Capital Markets, BNY Capital Markets, and additional financial institutions.
This offering follows a shelf registration statement filed with the Securities and Exchange Commission (SEC) by Invitation Homes and its partners. Related prospectus documents will be available through the managing banks and can also be accessed via the SEC's website.
Invitation Homes, part of the S&P 500 index, specializes in leasing and managing high-quality single-family homes. The company is committed to providing homes conducive to thriving families and offers continuous high-touch service to enhance living experiences.
The press release also included forward-looking statements regarding expectations for the company's business performance, financial results, and liquidity. These statements are subject to risks and uncertainties, including market conditions and competition, which could cause actual results to differ materially.
The information in this article is based on a press release statement from Invitation Homes Inc.
In other recent news, Invitation Homes Inc. has announced a quarterly dividend of $0.28 per share, scheduled for payment in mid-October to shareholders on record as of late September. The company has also secured a total of $3.5 billion in credit facilities, comprised of a $1.75 billion revolving credit facility and an equal term loan facility. Additionally, Invitation Homes has expanded its portfolio through the acquisition of 580 single-family homes in Tampa, Denver, and the Carolinas, investing approximately $216 million in these deals.
Analysts have expressed mixed views on the company's prospects. RBC Capital downgraded Invitation Homes from Outperform to Sector Perform, citing concerns over leasing spreads and tenant resistance to rate hikes. On the other hand, Goldman Sachs initiated coverage on the company with a Buy rating, while Wells Fargo downgraded its rating from Overweight to Equal Weight but raised the price target to $38. These recent developments reflect the ongoing activities of Invitation Homes and its commitment to delivering value to its shareholders.
InvestingPro Insights
As Invitation Homes Inc. (NYSE: INVH) prices its public offering of senior notes, investors are paying close attention to the company's financial health and market performance. According to InvestingPro data, Invitation Homes boasts a substantial market capitalization of approximately $22.4 billion, reflecting its significant presence in the single-family home leasing sector. The company's commitment to dividend growth is underscored by a track record of raising its dividend for seven consecutive years, a reassuring sign for income-focused investors.
Analyzing the company's valuation metrics, Invitation Homes is currently trading at a high earnings multiple, with a P/E ratio of 46.8 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 70.37. This indicates a premium valuation in the market, which can be attributed to the company's robust fundamentals and potential for continued growth in the single-family home leasing industry. Despite a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 5.29, the company's financial stability is evidenced by its liquid assets exceeding short-term obligations.
Investors may also find comfort in the company's profitability over the past year, a trend that analysts predict will continue into the current year. With a gross profit margin of 58.91% and an operating income margin of 27.74% in the last twelve months as of Q2 2024, Invitation Homes demonstrates strong operational efficiency. Moreover, the company's strategic financial management is reflected in its dividend yield of 3.11% as of mid-2024, complemented by a 7.69% growth in its dividend during the same period.
For those interested in further in-depth analysis and additional InvestingPro Tips related to Invitation Homes Inc., there are currently 6 more tips available at https://www.investing.com/pro/INVH.
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