Invitation Homes (INVH -4.05%) updated investors, saying the company is “well positioned” to deliver outsized annual funds from operations (AFFO) growth in the years to come. But investors appear more focused on metrics that show a slowing from last quarter.

Shares of Invitation Homes are down about 5% as of 11:30 a.m. ET on the news.

Softer increases this quarter

Invitation Homes is a real estate investment trust (REIT) focused on single-family rental homes. The company provided an update to investors highlighting the strength of its third-party management business and its strong relationships with homebuilders, arguing that it is set up well to grow from here.

But in the near term, it appears the trends are moving in the wrong direction. Invitation Homes said that quarter-to-date renewal lease rates are growing at a 4.4% rate, compared to 5.6% in the second quarter. Similarly, new lease rate growth so far this quarter is 1.9%, compared to 3.6% in the prior three months.

These numbers tend to be volatile as the year goes on, and it is dangerous to read too much into any two-month period. But the trend for now is in the wrong direction. On a day when Wall Street is concerned about the health of the consumer and the direction of the economy, the update appears to have spooked some investors.

Is Invitation Homes a buy?

For long-term-focused investors, the trends are still in Invitation’s favor. The company said that in all 16 of its core markets, it is more affordable to lease a home than it is to buy.

The stock has gone nowhere for years and is actually down 20% from the start of 2022. But given the need for more housing, in particular flexible housing, in the years to come, there is ample opportunity for growth.

Investors who are able to look past near-term volatility could view this sell-off as a buying opportunity.