Operational performance and market performance tend to, and should, move in tandem, but occasionally, an opportunity pops up where the market just gets it wrong. This year, a small ($758mm) multi-family REIT, Associated Estates (NYSE:AEC), became a phenomenal opportunity as its operational outperformance was met with market underperformance.
(click to enlarge)
We will cover AEC in more depth later, but first, let us cover the fundamentals of the multi-family sector.
The sector has had a long run of success, and its upward trend seems to be continuing, but at a declining speed. 3rd-quarter vacancy rate fell down to an incredible 4.6% from the already low 5.6% in 3Q11. Such occupancy has provided landlords with the power to raise...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|