Leading single-family landlord Invitation Homes reported higher occupancy rates and revenue than predicted for the second quarter. Now, the company wants more. Already owning and managing 80,000 homes across the country, the landlord giant wants another 80,000, according to National Mortgage News. Invitation Homes is taking advantage of low mortgage rates, and especially the growing interest in suburbia life from ex-urbanites. The company’s stock experienced an 84% growth since the market’s low point on March 23. But the shortage of housing may put a damper on Invitation Homes’ plans.
The company's shares gained as much as 1.9% on Tuesday to the highest level since March 5. The stock has surged 84% since the market hit a low March 23, compared with a 21% rise in a Bloomberg index of real estate investment trusts that own apartments. That comes as investors bet the pandemic will drive Americans out of dense cities in search of space to spread out.
Invitation Homes, which spent two years pruning its portfolio following a 2017 merger, is turning to growth. It raised $448 million through a June share sale, and plans to use two-thirds of that primarily to buy homes.
"We can certainly handle much more scale on our platform," Tanner said. "Is that two times our current footprint? Maybe."