Wed, Jun. 8, 9:49 AM
- Equity Residential (EQR -1%), AvalonBay Communities (AVB -1.1%), and Essex Property Trust (ESS -0.5%) are all downgraded to Hold from Buy at Jefferies.
- With market caps of $13B-$23B, these three are the apartment sector giants by a wide margin. They tend to play in the high-priced markets on the coasts (Essex is all West Coast).
- Equity Residential made big news late last year when it sold a big chunk of its portfolio - and when Sam Zell sells, it's worth paying attention to. The company made more news last week when it cut guidance thanks to weakness in San Francisco and New York (though management played this down at a conference yesterday).
- Other sector names: Post Properties (PPS +0.1%), UDR (UDR -0.8%), Aimco (AIV -0.5%), Camden Property (CPT -1%), Mid-America (MAA -0.3%), Investors Real Estate (IRET +1.6%), Independence Realty (IRT +0.4%), Monogram Residential (MORE -0.5%), NexPoint (NXRT), Preferred Apartment (APTS +0.6%), Bluerock Residential (BRG -0.2%)
Thu, Jun. 2, 10:05 AM
Nov. 9, 2015, 11:25 AM
- Equity Residential (EQR -1.7%), UDR (UDR -1.6%), and Aimco (AIV -2.9%) are all downgraded to Sell at Miller Tabak. The declines in the trio today are roughly in-line with the rest of the apartment REIT sector, with the 10-year Treasury yield up another four basis points to 2.36%.
- The downgraded trio has outperformed the broader REIT sector this year, with EQR +5.2%, UDR +8.7%, and AIV -3% versus the IYR's 5.4% decline.
Oct. 26, 2015, 2:38 PM
- "The planned sales will likely raise questions regarding the apartment cycle as well as the 'call' for certain submarkets and asset types," says Cowen's James Sullivan, as Equity Residential (EQR +2.2%) announces the sale of $5.3B of apartment properties and looks to sell another $700M worth next year.
- Zell rung a bell for the top of the last real estate cycle with the early 2007 sale of his Equity Office Properties for $39B.
- Citi's Michael Bilerman acknowledges the sale should make good fodder for the bears, but he remains bullish on EQR. Wells Fargo's Jeffrey Donnelly is impressed with the timing, and applauds EQR for narrowing its focus on larger properties in core urban markets.
- Previously: Equity Residential sells chunk of holdings for $5.365B (Oct. 26)
- Other multi-family REITs: AvalonBay (AVB -0.5%), Essex Property (ESS -0.6%), Post Properties (PPS -0.1%), UDR (UDR -0.2%), Aimco (AIV +0.1%), Mid-America (MAA -0.3%), Investors Real Estate (IRET -0.1%), Independence Realty (IRT -2.6%).
May 1, 2015, 10:18 AM
- Q1 pro forma FFO of $0.52 up from $0.50 one year ago. Adjusted FFO of $0.46 vs. $0.43. Adjusted FFO takes out capital replacement spending and it's lower this year thanks to the sale of about 9K apartments last year. The concentration of capital on higher-quality units mean cap replacements decline as a percentage of NOI.
- Average revenue per apartment of $1,652 up 4.3% Y/Y. Average daily occupancy of 95.9% up 10 basis points. Expenses of $57.3M up 2.9%. NOI of $114.8M up 5.2%.
- Weighted average rent increases in Q1 of 2.8%.
- Full-year pro forma FFO guidance is boosted to by $0.02 on both ends to $2.14-$2.24. AFFO guidance is lifted by $0.02 to $1.82-$1.92. NOI growth is upped to 4.5-5.5% from 4-5.5%. Q2 pro forma FFO guidance of $0.51-$0.55. AFFO of $0.42-$0.46.
- Earnings call at 1 ET
- Previously: Apartment Investment beats by $0.01, beats on revenue (April 30)
- AIV +2.5%
Apr. 22, 2015, 10:02 AM
- Deals in the REIT space are picking up steam, with the latest being today's sale of Associated Estates to a Brookfield fund for $2.5B. Associated Estates has been under activist pressure for a number of months, and one wonders if any other apartment names might be next in line.
- Sector giants Equity Residential (EQR +1.3%), AvalonBay (AVB +1.2%), and Essex Property (ESS +1.2%) don't seem like likely targets, but are nicely higher on the session.
- Others: Post Properties (PPS +1.7%), UDR (UDR +1.6%), Aimco (AIV +1.3%), Camden Property (CPT +1.2%), Home Properties (HME +1.4%), Mid-America Apartments (MAA +1.1%), Investors Real Estate (IRET +0.8%).
- ETFs: IYR, VNQ, DRN, URE, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
Apr. 9, 2015, 3:24 PM
- A weak 30-year bond auction has long-term Treasury yields on the move higher, with the 10-year up five basis points to 1.96%. One also can't help but notice a recent uptick in capital raising among the equity REITs.
- Realty Income (O -2.2%), Agree Realty (ADC -2.2%), Omega Healthcare (OHI -4%), Medical Properties Trust (MPW -2.5%), W.P. Carey (WPC -2.2%), Duke Realty (DRE -2.5%), Essex Property (ESS -2.9%), Aimco (AIV -3%), Simon Property (SPG -2.4%), Kimco (KIM -2.9%), Inland Real Estate (IRC -3%), DDR Corp (DDR -2.3%), Sovran Self Storage (SSS -2.2%), Washington Real Estate (WRE -4%), Digital Realty Trust (DLR -2%), Hospitality Properties (HPT -2.6%), Ashford Hospitality (AHT -2.4%), Stag Industrial (STAG -4.6%), American Campus (ACC -2.3%).
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
- Previously: Treasury yields on the rise after weak 30-year auction (April 9)
Mar. 18, 2015, 3:28 PM
- The Fed earlier cuts its forecasts for GDP growth, inflation, and the pace of rate hikes. Alongside, it also lowered NAIRU - the level at which unemployment threatens accelerating inflation.
- The 10-year Treasury yield is lower by 13 basis points to 1.92% following the news, sending the board averages to near-1.5% gains, but the strongest names are the equity REITs.
- IYR +2.3%
- National Retail Properties (NNN +3%), Spirit Realty (SRC +3.1%), Senior Housing Properties (SNH +2.1%), Healthcare Trust of America (HTA +2.9%), Equity Commonwealth (EQC +2.7%), Gramercy Property (GPT +3.2%), Post Properties (PPS +3.9%), Aimco (AIV +2.6%), Kimco (KIM +2.8%), DDR Corp (DDR +2.4%), Public Storage (PSA +2%), Government Properties (GOV +1.9%), First Potomac Realty (FPO +3%), Digital Realty Trust (DLR +1.5%), Sunstone Hotel (SHO +2%), Liberty Property (LPT +2.4%), American Campus (ACC +2.5%)
- Previously: Day's biggest news: Fed sharply cuts "normal" unemployment rate (March 18)
- Previously: FOMC drops "patient," but sends dovish signal (March 18)
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
Jan. 12, 2015, 4:25 PM
- Apartment Investment Management (NYSE:AIV) is selling 8.2M shares, with an underwriter greenshoe of another 1.23M shares.
- Helped along by an upgrade this morning, the stock gained 1.9% in the regular session, and is lower by 2.5% after hours.
Jan. 12, 2015, 9:39 AM
Dec. 11, 2014, 8:02 AM| Dec. 11, 2014, 8:02 AM
Jul. 24, 2014, 10:40 AM
- The apartment building owner last night beat estimates on the top and bottom lines and raised full-year guidance.
- This morning, ISI Group chimes in with an upgrade to Buy and $156 price target, citing expected contribution from AvalonBay's (AVB +2.2%) $3.2B development pipeline.
- AVB results aren't necessarily filtering through to the rest of the apartment sector, which is mixed. Equity Residential (EQR +0.3%), Essex Property (ESS), Aimco (AIV -0.2%), Camden Properties (CPT -0.1%).
Jul. 8, 2014, 2:53 PM
- Despite a big run this year, Apartment Investment Management's (AIV +1%) valuation "still does not reflect the attractive portfolio upgrades that AIV has completed since 2009," says analyst Nick Yulico, boosting to a Buy with $36 price target (from $32).
- By his team's figures, AIV is trading at a 15% discount to its 1-year forward NAV as the market is pricing the company as if it still owned its lesser-quality 2008-era portfolio.
- Yulico also suggests the possibility of a guidance hike this quarter thanks to industry data showing improving rent growth in the company's markets.
- Previously: Apartment Investment Management boosted by upgrade
Jul. 8, 2014, 9:40 AM
Jan. 10, 2014, 2:44 PM
- The broad averages are struggling following the jobs number, but the big decline in interest rates (the 10-year Treasury is now off 10 bps to 2.87%) has the equity REIT sector lit up bright green.
- Ventas (VTR +4.4%) is having the biggest day, continuing to cruise through a couple of early-year downgrades (latest was Barclays on Wednesday). Among those also higher: National Retail Properties (NNN +3.1%), Realty Income (O +1.6%), Health Care REIT (HCN +2.5%), HCP (HCP +3.8%), RAIT Finanical (RAS +1.4%), Apartment Investment (AIV +2.9%), General Growth (GGP +1.6%), Inland Real Estate (IRC +1.5%), Government Properties (GOV +1.6%), American Campus (ACC +1.7%).
- Relevant ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Dec. 4, 2013, 10:17 AM
- A check of other multi-family REITs amid news of a $5B bid for BRE Properties (BRE +12.8%) by Essex (ESS -1.8%).
- Equity Residential (EQR +2.2%), AvalonBay (AVB +2.5%), UDR (UDR +2.5%), Apartment Investment and Management (AIV +4%), Camden (CPT +3.2%), Home Properties (HME +3.3%), Mid-America (MAA +1.7%), Post (PPS +4.7%).
Apartment Investment & Management Co. is a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. Its primary financial objective is to provide predictable and attractive returns to the stockholders. The company operates... More
Industry: REIT - Residential
Country: United States
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