(Reuters) -Invitation Homes reported first-quarter funds from operations (FFO) and revenue above Wall Street estimates on Wednesday, while reiterating its full-year forecast as concerns over possible recession in the U.S. led to more consumers leasing over buying.

"We're pleased to share that new lease rent growth has accelerated each month of 2025 so far," CEO Dallas Tanner said.

The largest U.S. landlord expects core FFO to be between $1.88 to $1.94 per share for 2025, the mid-point of which is marginally below analysts' average estimates of $1.92 per share, according to data compiled by LSEG.

Demand for affordable housing in the United States remains strong due to a long-standing shortage of single-family homes, a situation originating from the 2008 housing market crash.

The real estate investment trust, which leases more than 100,000 homes in 16 markets across the U.S., reported revenue of $674.5 million for the quarter ended March 31, above estimates of $660.4 million.

The Dallas, Texas-based REIT reported first-quarter core FFO per share of 48 cents per share, exceeding estimates of 47 cents per share.

Invitation Homes reported same-store renewal rent growth of 5.2%. The company achieved a blended rental growth rate of 3.6%, which reflects a combination of both new lease and renewal rates.

(Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh Kuber and Tasim Zahid)