Citizens has lowered its price objective on Invitation Homes (INVH) to $35 from $40, while leaving its Market Outperform recommendation intact. The analyst firm pointed to oversupply in specific local markets as a drag on the company’s core leasing dynamics.
In the most recent quarter new lease rate growth declined to -4.1%. That metric contrasts with a modest expansion in same-store net operating income, which increased by 0.7% over the same period.
At the time of reporting the shares were trading at $25.68, close to a 52-week low of $25.29. The stock carries a dividend yield of 4.67%.
Citizens said it expects new lease rate growth to inflect over the coming year. The firm also noted that the asset class should benefit from the spread between the cost of ownership and rental rates, a dynamic it believes supports long-term performance despite near-term leasing headwinds.
The analyst reiterates a recommendation to hold the shares in part based on the company’s discount to net asset value. Data show that INVH is trading near its 52-week low with a PEG ratio of 0.83, a measure the firm highlighted when discussing valuation versus growth expectations.
On the corporate results front Invitation Homes reported fourth-quarter 2025 earnings per share of $0.24, exceeding the consensus forecast of $0.18. That outturn represented a 33.33% earnings surprise versus expectations. Despite the upside, the stock fell in after-hours trade, declining 3.56% to close at $26.68, a move the market may have driven in part by broader market trends or investor concerns about future guidance.
These developments underscore a mixed set of signals for the single-family rental REIT: weakening pricing power on new leases paired with slight growth in operating income and an earnings beat that did not prevent a negative near-term market reaction.
What this means for investors
Investors should weigh the company’s current valuation metrics and dividend yield against near-term leasing pressures. The recommendation from Citizens rests on a view that the company trades at a discount to net asset value and that some of the current rent weakness will stabilize within the next year.
Further analysis and company research materials are available for investors seeking deeper detail on the company’s portfolio and operating metrics.