Invitation Homes forecasts annual FFO below estimates on higher costs

Feb 18 (Reuters) - U.S.-based Invitation Homes INVH.N forecast annual funds from operations (FFO) below Wall Street estimates on Wednesday, as the real estate investment trust navigates higher costs in an inflationary environment.

The REIT, which owns, leases and operates single-family residential properties, continues to see an impact from increasing operating and maintenance costs on its topline.

"We will continue working constructively with policymakers to support broader housing affordability and availability," CEO Dallas Tanner said.

The largest U.S. landlord for single-family homes expects core 2026 adjusted FFO per share of $1.60 to $1.68, the midpoint of which is below analysts' average estimate of $1.97, according to data compiled by LSEG.

Same-store renewal rent grew 4.2% from a year earlier during the quarter ended December 31. Blended rental growth, which reflects a combination of both new lease and renewal rates, rose 1.8%.

Quarterly revenue increased 4% from a year earlier to $685.3 million.

Fourth-quarter adjusted FFO stood at 41 cents per share, below analysts' estimates of 48 cents per share.