The Buy Thesis
It is very rare for an investment to appear favorable from every angle, but the events of the past two months have aligned the stars for Associated Estates (NYSE:AEC). It is well-positioned to outperform the market as it has the following factors in its favor.
We will now explore each of these factors in greater detail.
Encouraging Industry Fundamentals
For multi-family REITs, there are essentially three components that govern their supply/demand balance: Net household formation, market share distribution and net new supply. I believe that over the next few years, each of these components will be favorable.
1. Net new household formation
While everyone has to live...
|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|