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REITs tend to borrow heavily, so higher rates put pressure on their bottom line.
The housing market has been especially sensitive to the Federal Reserve’s efforts to curb inflation and soften demand through aggressive interest rate increases since March 2022.
Invitation Homes expects full-year core AFFO between $1.75 and $1.79 per share, compared with its previously expected range of $1.75 to $1.81.
The largest landlord of single-family houses in the United States also missed estimates for core FFO in the third quarter.
It reported core FFO of 44 cents per share, compared with analysts’ estimates of 45 cents per share, as per LSEG data.
Shares of the Dallas Texas-based company fell 1.3% in aftermarket trade.
