Invitation Homes Inc. (INVH) in Dallas, Tex., is a real estate investment trust (REIT) that conducts its operations through Invitation Homes Operating Partnership LP. The company operates by acquiring, renovating, leasing, and operating single-family homes. Its business activity includes property operations, marketing and leasing, digital marketing initiatives and branding, resident relations and property maintenance, and investment and asset management.
REITs own, operate, or finance real estate and generate rental income. By regulatory structure, REITs are required to pay out most of their profits as dividends. So, they offer a steady income stream. Investing in REITs can be an excellent strategy to hedge one’s portfolio against the current market volatility. In addition, real estate rents and property values increase during inflationary conditions, which helps REITs increase their dividends. With inflation at a multi-decade high, investing in REITs could help investors hedge their portfolios against the inflationary pressure also.
