S&P rates Invitation Homes BBB-

S&P said it rated Invitation Homes Inc. and Invitation Homes Operating Partnership LP BBB-.

Single-family home rentals are up, and the pandemic has helped improve existing trends in the market. “INVH's average monthly rent per home of $1,898 for fourth-quarter 2020 is higher than that of peers, largely driven by location since it has a larger presence on the West Coast where rent is higher,” S&P said in a press release.

“Credit metrics should remain in line with current levels over the next year, and then improve in 2022 as INVH's financial policies target further deleveraging. At year-end 2020, INVH's adjusted debt to EBITDA was in the low-7x area, and we project it to largely remain in line with current levels at year-end 2021. We believe additional improvement will occur in 2022 and beyond, largely due to NOI growth, as we anticipate INVH to fund future acquisitions in a leverage-neutral manner,” the agency said.

The outlook is stable, reflecting the view it will produce robust operating performance, with high occupancy levels and growing low- to mid-single-digit NOI growth, over the next two years as it reaps the benefits from increased workforce mobility and continued population migration to its core markets in the Sunbelt states, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.