April 30 (Reuters) - Invitation Homes ( INVH ), which

rents out single family homes in the U.S., missed Wall Street

estimates for first-quarter funds from operations (FFO) per

share on Tuesday, as fixed expenses including property tax rose

year-on-year.

While high demand for single-family rentals amidst

increasing barriers to homeownership has allowed the company to

hike rental rates, fixed costs such as property management

expenses have also risen in an inflationary environment.

Meanwhile, the company is experiencing higher same-store

property tax rates in its key markets, Florida and Georgia,

which is further putting pressure on profits.

The real estate investment trust (REIT), which has about

80,000 homes for lease in 16 markets across the U.S., reported

revenue of $646 million for the quarter ended March 31, 9.5%

higher than last year.

Shares of Invitation Homes ( INVH ) were down 2.5% in trading after

the bell.

Expenses for the first quarter rose 7.4% year over year,

attributable primarily to higher property tax in its key

markets.

First-quarter FFO per share of 43 cents came in below

analysts' estimate of 46 cents per share, according to LSEG

data.

The Dallas, Texas-based REIT reported 0.8% growth in

same-store new lease rent growth, which is the rental hike

offered to new tenants.

Renewal rates grew 5.8% and the company achieved a blended

rental growth rate of 4.4%, which reflects a combination of new

lease and renewal rates.