Wed, Apr. 27, 4:29 PM
Tue, Apr. 26, 5:35 PM
- ACGL, AEL, AF, ALGT, AMKR, AMP, ANIK, AR, ASGN, AVB, AVG, BCR, BGC, BKCC, BLKB, CACI, CAKE, CAVM, CBL, CDE, CGI, CLI, CMO, CMPR, CNMD, CNO, CRY, CSGP, CVTI, DGI, DLB, DMRC, DRE, DTLK, DWRE, DXCM, ECHO, EFX, ELY, EQY, ESRT, ESV, EXTR, FB, FIX, FNF, FORM, FORR, FR, FSLR, GG, HOLX, HTCH, HY, IBKC, INFN, IPHS, KEX, KIM, KRA, KRC, KS, LLNW, LOCK, LOGI, LQ, MANT, MAR, MC, MEOH, MMLP, MN, MSTR, MTGE, NE, NEU, NGD, NTGR, NVDQ, OIS, ORLY, OTEX, PEB, PPC, PRXL, PYPL, QDEL, QEP, QGEN, RCII, RGLD, RNG, ROIC, SCI, SFLY, SGI, SIMO, SNDK, SPRT, SSS, STR, TAL, TER, TILE, TS, TTEK, TTMI, TXN, TYL, UHS, UNM, VAR, VRTX, WCN, WIRE, WLL, WRE, WSR, XL, XLNX
Fri, Apr. 8, 2:31 PM
- The national vacancy rate has now risen for three straight quarters and hit 4.5% in Q1, according to Reis, up from 4.2% nine months earlier.
- Average rents increased 4.1% to $1,248 in Q vs. a 5% increase in Q1 a year ago, according to Axiometrics.
- Perhaps most of concern according to housing economists, the number of new occupied apartments climbed by just more than 20K units in Q1 - that's against a five-year average of roughly 40K per quarter. Whether that sharp drop turns into a long-term trend is another story.
- Supply? Developers are expected to build nearly 1M units in the U.S. over the next three years, up from about 100K in the previous three.
- In the country's hotter markets - think NYC, SF, Denver, Houston - landlords are more often offering concessions to bring in tenants. In Manhattan, rentals with concessions rose to 14% of the market vs. 5% a year earlier, and the median rental price fell 2.8% to $3,300.
- Landlords: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, NXRT, APTS, BRG
- Now read: NexPoint's Hidden Value (April 5)
Fri, Apr. 1, 3:59 PM
- National rents are higher by 0.4% over the past month and 2.7% Y/Y, according to the National Apartment List Rent Report. The median price for a 2BR apartment is $1.300, while 1BRs average $1,150.
- While San Francisco is in the lead for the nation's highest prices, rents have grown just 0.9% Y/Y. Seattle rents are higher by 5.4% Y/Y and it's now the 8th-most expensive city.
- Colorado Springs was tops for rent growth, up 11.4% Y/Y, followed by Orlando up 8.9%, Providence up 8.7%, and Tampa up 8.6%.
- Apartment REITs: EQR, AVB, ESS, PPS, AIV, CPT, MAA, IRET, IRT, APTS
- Now read: 2016 Rate Hikes Could Be A Blessing In Disguise For Equity REITs (April 1)
Mon, Mar. 7, 8:51 AM
- The team upgrades UDR to Outperform from Market Perform and downgrades AvalonBay (NYSE:AVB) to Market Perform from Outperform.
- AvalonBay has been the outperformer thus far this year, falling 2.2% vs. UDR's 7.5% decline. On a year-over-year basis UDR's 10% gain is about 70 basis points better than AvalonBay's.
Tue, Mar. 1, 4:27 PM
Mon, Feb. 22, 10:46 AM
- Broadly speaking, Q4 results met expectations, says Deutsche's Vin Chao, with industrial and mall REITs doing marginally better-than-expected, apartment, strip mall, and office REITs mostly inline, and healthcare missing modestly.
- While guidance from 9 of 13 REITs that provided it was below expectations, says Chao, most of those misses were due to "prudent funding" entailing higher-than-expected property sales. Also, given the recent market backdrop, one would expect managements to lean conservative.
- He continues with Buy ratings on Simon Property (NYSE:SPG), AvalonBay (NYSE:AVB), Boston Properties (NYSE:BXP), CyrusOne (NASDAQ:CONE), and Retail Properties of America (NYSE:RPAI).
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, SRS, ICF, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, DRA, FTY, PSR, FREL, LRET, WREI, IARAX, XLRE
Wed, Feb. 17, 4:13 PM
- The market environment has changed, says Ryan Severino from Reis Inc., noting apartment construction is at its quickest pace since 1999. "Gone are the days when apartments faced little competition from new construction.”
- The vacancy rate is expected to head higher from the 4.4% recorded in Q4, thus keeping at least a little bit of pressure on rents.
- Even the fast pace of construction, however, isn't keeping pace with demand - the number of households last year grew by 1.5M, but the housing stock rose just 1.1M units, says Freddie Mac's David Brickman.
- Apartment owners: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, NXRT, BRG
Thu, Feb. 4, 1:20 PM
- While job growth is expected to remain healthy across AvalonBay's (AVB +2.2%) markets this year, says management, it expects "moderation" in West Coast tech markets (slide 10 of presentation deck).
- In Q4, the company saw double-digit year-over-year increases in NOI along the West Coast.
- The midpoint of the company's full-year 2016 outlook calls for 9% core FFO per share growth.
- Q4 Management Letter
- More of a pure-play West Coast apartment owner, Essex Property Trust (ESS +0.3%) reports its Q4 after the close.
- Previously: Strong West Coast results lead AvalonBay beat (Feb. 3)
- Previously: AvalonBay Communities beats by $0.03, beats on revenue (Feb. 3)
Wed, Feb. 3, 5:11 PM
- Q4 core FFO of $273.1M or $1.99 per share vs. $230.3M and $1.74 one year ago. Dividend is hiked to $1.35 from $1.25.
- Full-year core FFO of $7.55 up from $6.78 in 2014.
- Rental revenue up 5.8% Y/Y, operating expenses down 0.9%, NOI up 8%. NoCal particularly strong with 14.9% increase in NOI; SoCal up 10.3%; Pacific NW 10.6%; New England 9%, Mid-Atlantic 2%.
- Full-year core FFO is expected at $8.03-$8.43 (vs. $7.55 in 2015). Q1 core FFO of $1.88-$1.94.
- Earnings call tomorrow at 1 ET
- Previously: AvalonBay Communities beats by $0.03, beats on revenue (Feb. 3)
- AVB flat after hours
Wed, Feb. 3, 4:35 PM
- AvalonBay Communities (NYSE:AVB) declares $1.35/share quarterly dividend, 8% increase from prior dividend of $1.25.
- Forward yield 3.19%
- Payable April 15; for shareholders of record March 31; ex-div March 29.
Wed, Feb. 3, 4:21 PM
- AvalonBay Communities (NYSE:AVB): Q4 FFO of $1.99 beats by $0.03.
- Revenue of $480.84M (+9.1% Y/Y) beats by $1.16M.
Tue, Feb. 2, 5:35 PM
- AAV, ALL, AVB, AWH, BDN, BRKS, BWLD, BXP, CACI, CBL, CCK, CDNS, CEB, CINF, CPST, DHT, ENH, EPM, EXAR, FBHS, GEOS, GLUU, GPRO, HIVE, HUBG, ICUI, IMPV, LCI, LNC, MAA, MAC, MCHP, MDU, MET, MNR, MTGE, MTRX, MUSA, MWA, NE, NXPI, OSUR, PACB, PCL, PMT, PNNT, RE, RGLD, RRTS, SFLY, SPSC, TIS, TMK, TTWO, TWO, UHAL, WFT, WSTL, XL, YUM
Mon, Jan. 25, 11:33 AM
- "We think any meaningful indication that the private tech market is headed for a sustained downfall will impact tech-heavy REIT stocks in all property sectors, and in a negative way," says Mizuho Securities in a report titled "Bubble Jeopardy 2.0."
- The Mizuho team notes negative sentiment alone has impacted some office REIT names, even as there's been no tangible slowdown in rent growth. What might happen if things pivot from sentiment to reality?
- The report mentions no REITs by name, but those apartment REITs with Bay Area holdings include AvalonBay (AVB +0.2%), Equity Residential (EQR +0.3%), Essex Property (ESS) and UDR (UDR -0.4%). Office REITs would include Kilroy Realty (KRC -0.4%) and Hudson Pacific (HPP -0.5%).
- Source: Barron's
Fri, Jan. 8, 9:46 AM
- These income favorites are known for having had a tough time of it in 2015, in part thanks to worries about rising interest rates. MKM's Jonathan Krinsky, however, notes REITs have been relatively outperforming the S&P 500 for months and have just broken out to nine-month highs versus the broader market.
- Krinsky's a technician, so he's staying with the trend and recommending going long REITs (NYSEARCA:IYR) versus the S&P 500.
- Turning to individual REIT sectors and names, he's overweight apartments (AIV, AVB, ESS, EQR, MAA), UDR), storage (CUBE, EXR, PSA, SSS), and shopping malls (KIM, MAC, FRT, REG, IRM).
- He's equal weight data centers (buys: CONE, DCT, QTS, sells: EGP), diversified (buys: AMT, CCI, DLR, DRE, PSB, sells: EQIX, LPT, STAG, VNO, WY, WPC).
- He's underweight office property (buys: EQC, sells: HPP, FSP, GOV, KRC, OFC, PKY, SLG), hotels (sells: AHT, FCH, HPT, HST), mREITs (sells: ARR, STWD, RSO, buy: ABR), healthcare (sells: HCP, MPW, OHI, VTR, buys: DOC, HR, HTA)
Wed, Jan. 6, 8:07 AM
- The national vacancy rate edged up to 4.4% in Q4 versus 4.3% in Q3 and a year earlier, according to Reis, Inc. It's the second straight sequential rise in vacancies - the first time that's happened since 2009. Rents rose 0.8% in Q4 - slower than past quarters, but still representing an annualized increase north of 3%.
- It's a tale of two markets, with older, suburban properties holding the overall vacancy rate down amid a surge in downtown, Class A supply aimed at the one-percenters.
- "Vacancies are rising predominantly because a lot of shiny, sexy new Class A projects are having a harder time leasing up relative to a few years ago," says Ryan Severino from Reis. According to his firm, there have been exactly zero completions of new Class B and C apartments since 2012, and almost 1M of new Class A units since 2007.
- Interested parties: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, MORE, NXRT, APTS, BRG
AvalonBay Communities, Inc. is a real estate investment trust, which engages in the development, redevelopment, acquisition, ownership and operation of multifamily communities in high barrier to entry markets of the U.S. It operates through three segments: Established Communities, Other... More
Industry: REIT - Residential
Country: United States
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