Invitation Homes Reaches Agreement with Federal Trade Commission

Rhea-AI Summary

Invitation Homes (NYSE: INVH) has reached an agreement with the Federal Trade Commission (FTC) to resolve a civil investigation into certain company business practices. The resolution includes a $48 million payment in monetary relief to the FTC, with no civil penalties or admission of wrongdoing by the company.

Invitation Homes maintains that its disclosures and practices are industry-leading among professional peers and smaller single-family home rental owners. The agreement concludes the FTC's three-year investigation and allows the company to move forward, focusing on continuous improvement in customer service and business practices.

The company reaffirms its commitment to providing high-quality living experiences for individuals and families seeking flexibility in housing options, as well as maintaining transparency with all stakeholders.

Positive

• Resolution of FTC investigation without admission of wrongdoing
• No civil penalties imposed
• Company claims industry-leading disclosures and practices
• Opportunity to focus on continuous improvement and customer service

Negative

• $48 million payment in monetary relief to FTC

Insights

Legal Expert

The agreement between Invitation Homes and the FTC is a significant development with mixed implications. The $48 million monetary relief is substantial, potentially impacting the company's financials. However, the absence of civil penalties and admission of wrongdoing mitigates some legal risks. This resolution ends a three-year investigation, removing a cloud of uncertainty for investors. The company's assertion of industry-leading practices, despite the settlement, suggests a proactive stance on compliance. Investors should note that while this closes one chapter, it may prompt increased scrutiny of the single-family rental sector. The commitment to transparency and service improvement could help rebuild trust, but the financial impact and potential reputational effects should be monitored closely. This settlement may also set a precedent for regulatory expectations in the industry.

Financial Analyst

The $48 million settlement represents approximately 0.22% of Invitation Homes' market cap, a relatively small financial impact for a company of this size. However, investors should consider potential long-term effects on operational costs and practices. The resolution of the FTC investigation removes a significant regulatory overhang, which could positively influence investor sentiment. The absence of civil penalties is favorable, potentially limiting further financial exposure. Invitation Homes' commitment to enhancing practices may lead to increased operational expenses in the short term but could strengthen its market position long-term. The settlement's impact on future revenue and profitability should be closely monitored, as any changes in business practices could affect the company's growth trajectory and margins in the competitive single-family rental market.

DALLAS--(BUSINESS WIRE)-- Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”) has reached agreement with the Federal Trade Commission (the “FTC”) resolving the FTC’s civil investigation into certain company business practices. As part of the resolution, Invitation Homes will pay the FTC $48 million in monetary relief, with no civil penalties. The agreement contains no admission of wrongdoing by Invitation Homes.

Invitation Homes believes that its disclosures and practices are industry leading, both among its professional peers as well as the millions of smaller owners of single-family homes for lease. Today’s agreement brings the FTC’s three-year investigation to a close and puts this matter behind the Company, which will, as always, move forward with its continuous efforts to better serve its customers and enhance its practices. Invitation Homes remains committed to providing a high-quality living experience for individuals and families who want flexibility and choice in housing and to transparency with all stakeholders.

About Invitation Homes
Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association and insurance costs, poor resident selection and defaults and non-renewals by the Company's residents, the Company's dependence on third parties for key services, risks related to the evaluation of properties, performance of the Company's information technology systems, development and use of artificial intelligence, risks related to the Company's indebtedness, and risks related to the potential negative impact of unfavorable global and United States economic conditions, uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises, on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”), as such factors may be updated from time to time in the Company's periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240924477509/en/

Investor Relations Contact:

Scott McLaughlin

844.456.INVH (4684)

IR@InvitationHomes.com

Media Relations Contact:

Kristi DesJarlais

972.421.3587

Media@InvitationHomes.com

Source: Invitation Homes Inc.

FAQ

What agreement did Invitation Homes (INVH) reach with the FTC?

Invitation Homes reached an agreement with the FTC to resolve a civil investigation into certain company business practices, agreeing to pay $48 million in monetary relief with no civil penalties or admission of wrongdoing.

How much will Invitation Homes (INVH) pay in monetary relief to the FTC?

Invitation Homes will pay $48 million in monetary relief to the FTC as part of the agreement.

Did Invitation Homes (INVH) admit to any wrongdoing in the FTC agreement?

No, the agreement contains no admission of wrongdoing by Invitation Homes.

How long did the FTC's investigation of Invitation Homes (INVH) last?

The FTC's investigation of Invitation Homes lasted three years before reaching this agreement.