Fri, Nov. 20, 9:26 AM
- Apartment rents are still strong, but the rate of growth is slowing, according to Zillow, reporting a nationwide increase of 4.5% Y/Y in October, down from 5.3% in September and 6.6% in July.
- Even in red-hot San Francisco, a rent gain of 15.2% last month stands against 19% in June and July.
- At issue is more supply, says Zillow, noting projects begun a couple of years back are starting to come online.
- With rental affordability down, the relative affordability of homeownership is on the rise, says Zillow, noting home values up 4.3% - the fastest pace in a year.
- Apartment REITs: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, NXRT, APTS, BRG
Thu, Oct. 29, 4:51 PM
- Q3 adjusted FFO of $0.91 per share vs. $0.89 one year ago. Dividend is $0.70.
- Same-property revenues up 5.5% Y/Y; expenses up 5.7%; NOI up 5.5%.
- Occupancy of 96% up 10 basis points.
- Full-year FFO guidance of $4.51-$4.55 per share, with the midpoint of same-property revenue growth, expense growth, and NOI growth at 5.2%.
- Conference call tomorrow at 12 ET
- Previously: Camden Property Trust misses by $0.01, beats on revenue (Oct. 29)
- CPT flat after hours
Thu, Oct. 29, 4:38 PM
Wed, Oct. 28, 5:35 PM
- ARAY, ARI, ATEN, ATR, AUY, AXTI, AZPN, BCOR, BCOV, BGG, BIDU, BMRN, BVN, BXP, CALX, CATM, CENX, CLW, COLM, CPSI, CPT, CRAY, CTRL, CXP, DCT, DECK, DGI, DGII, DLR, EA, ECOL, EHTH, EMN, EPAY, ESS, EXPE, EXTR, EYES, FE, FLDM, FLR, FLS, FRGI, FSLR, FWM, GB, GNW, HWAY, IM, IMMR, IMPV, ISBC, IXYS, KAMN, KRG, LC, LEG, LNKD, LSCC, MEP, MOBL, MOD, MOH, MTSN, MXWL, NANO, NBIX, NR, NSR, NUS, OIS, OMCL, ON, OSIS, OUTR, PCCC, PDFS, PRMW, PSMT, QTM, RGA, RKUS, RSG, SAAS, SAM, SBUX, SCTY, SEM, SGEN, SHO, TMST, TNAV, TNDM, TRMB, TSRO, TSYS, TUES, VR, WRI, WU, WWWW, YRCW
Mon, Oct. 26, 10:48 AM
Tue, Oct. 20, 11:30 AM
- “Ultimately this was going to eat our lunch,” says Camden Property Trust (CPT -0.3%) President Keith Oden, as the company this summer stopped accepting parcels at all of its 169 apartment communities.
- The company's buildings received 1M packages in 2014, up 50% from the previous year. Camden figures each package results in roughly 10 minutes of lost productivity. Doing the math at $20 per hour for employee wages adds up to $3.3M per year.
- The surge in online shopping has turned apartment management offices essentially into receiving centers, with workers needing to accept and record items and track down tenants to pick them up, not to mention finding a place to store the mountain of parcels.
- AvalonBay (AVB -0.4%) is experimenting with installing electronic lockers in about a dozen of its properties.
Fri, Oct. 2, 12:02 PM
- The multi-family vacancy rate edged up to 4.3% in Q3, according to Reis, Inc, up from a post-recession low of 4.2% in Q2. With another 200K new units expected to hit the market this year, look for further increases in vacancies, say some economists. The historical average is about 5.5%.
- "I don’t think this is the death knell for the apartment market, but it is going to be more challenging over the next four to five years than it was over the last four to five,” says Reis' Ryan Severino.
- Rents, however, rose 4.2% year-over-year in Q3, the first time since 2007 above the 4% mark. It's not unusual to see higher rents accompany higher vacancies, as higher vacancies mean new units - usually with higher rents - coming to market. Severino doesn't see rents flattening out until 2017.
- Interested parties: Equity Residential (EQR -0.5%), AvalonBay (AVB -1.1%), Essex Property (ESS -0.7%), Post Properties (PPS -0.8%), UDR (UDR -0.4%), Aimco (AIV -1.1%), Camden Property (CPT -0.3%), Mid-America (MAA -0.4%), Independence Realty (IRT +1%), Preferred Apartments (APTS -0.6%), Investors Real Estate (IRET -1.8%).
Fri, Sep. 18, 3:06 PM
- Bullish on the apartment reason for al the usual reasons - supply/demand balance, lack of construction, low home ownership rate - DA Davidson analyst Steve Shaw prefers to invest in the Sun Belt. Along with the West Coast, the Sun Belt is ahead of the national average in job growth - meaning higher occupancy and higher rents.
- Initiated with Buys are Bluerock Residential (BRG +3.4%), Camden Property Trust (CPT +0.5%), Investors Real Estate Trust (IRET +1.6%), Mid-American Apartment (MAA +0.7%), and Preferred Apartments (APTS +0.7%).
- Started at Neutral is Essex Property Trust (ESS +0.7%). In other Essex news, it was upgraded to Buy at Cantor Fitzgerald, with price target lifted to $251 from $236.50.
Wed, Sep. 16, 2:35 PM
- Comparing its portfolio of today with that of four-plus years ago, Camden Property Trust (CPT +1.1%) has seen its number of operating properties go down to 169 from 186, with the average monthly rental rate jumping to $1,466 from $1,079. Development communities today stands at 12 vs. 2 in January 2011.
- Net asset value per share (averaging estimates from sell-side coverage) of $86 has risen from $49 (current price is $72.36).
- Presentation slides
- Camden's average revenue growth and NOI growth from 2011-2014 is 2nd in the industry, trailing only Essex Property Trust. Expected revenue and NOI growth in 2015 is more toward the middle of the pack for the company.
Tue, Sep. 15, 4:12 PM
Thu, Aug. 20, 9:42 AM
- Upgraded to Outperform from Neutral are AvalonBay (AVB -0.4%), DiamondRock Hospitality (DRH -0.6%), Federal Realty Investment (FRT -0.3%), and General Growth (GGP -0.6%).
- Upgraded to Neutral from Underperform are Vornado (VNO -0.8%), Regency Centers (REG -0.4%), and Corporate Office Properties (OFC -0.3%).
- Downgraded to Neutral from Outperform are Camden Property Trust (CPT -1.5%), and Eastgroup Properties (EGP -1.2%).
- Cut to Underperform from Neutral is UDR (UDR -1.2%).
Thu, Aug. 13, 1:37 PM
- According to Zillow, renters spent 30.2% of income on rent in Q2, the highest percentage since as far back as the data go (1979). In comparison, the average between 1995 and 2000 was just over 24%.
- Los Angeles is tops for unaffordability at 49%, with San Francisco not far behind at 47%. In NYC, renters historically have paid about 25% of income for rent, but that has gone up to 41%. Known for being more affordable than other major cities, the luxury condo market has transformed Miami, and renters there now pay 44.5%.
- The solution, naturally says Zillow, is to buy. In most cities, buyers can expect to pay less than 30% of income towards mortgage payments. "Rents are crazy right now," says Zillow Chief Economist Dr. Svenja Gudell.
- For apartment REITs, one is left to wonder how much more room there is to boost rents. Names of interest: Equity Residential (NYSE:EQR), AvalonBay (NYSE:AVB), and Essex Property (NYSE:ESS) - a big player on the West Coast - are the most sizable companies. Also: UDR, Post Properties (NYSE:PPS), Aimco (NYSE:AIV), Camden Property (NYSE:CPT), Mid-America (NYSE:MAA), Trade Street Residential (NASDAQ:TSRE), Investors Real Estate (NYSE:IRET), Independence Realty (NYSEMKT:IRT), Bluerock Residential (NYSEMKT:BRG), NexPoint Residential (NYSE:NXRT).
Thu, Jul. 30, 4:57 PM
- Q2 adjusted FFO of $82.8M or $0.91 per share vs. $77.1M and $0.86 one year ago.
- Same-property revenues up 5.2% Y/Y; expenses up 3.9%, NOI up 5.9%. Occupancy of 96% up 40 basis points from a year ago.
- Full-year FFO guidance is lifted to $4.47-$4.57 per share, with revenue, expenses, and NOI all up 5% at the midpoint of their expected ranges.
- Conference call tomorrow at 11 ET
- Previously: Camden Property Trust beats by $0.02, beats on revenue (July 30)
- CPT flat after hours
Thu, Jul. 30, 4:29 PM
Wed, Jul. 29, 5:35 PM
- AIV, AMCC, AMGN, ATEN, AUY, AVD, AXTI, BAS, BCOR, BCOV, BRCM, BVN, CALD, CATM, CLW, CMLS, COHR, COLM, CPSI, CPT, CRAY, CTRL, CXP, DCT, DECK, DGI, DLR, DTLK, EA, EEP, EGO, EIX, ELLI, ES, ESS, EVHC, EXPE, FE, FEIC, FEYE, FLR, FLS, FR, FRGI, GB, GMED, HBI, HK, HME, HTCH, IM, IMMR, INT, ISBC, KAMN, KLAC, LEG, LNKD, LRE, LSCC, MOH, MTD, MTSN, MWA, MXWL, NGVC, NR, NSR, OLN, OMCL, OUTR, PCCC, PDFS, PKI, PODD, PTCT, PXLW, QLGC, QTM, RGC, RMD, RNG, ROVI, SAM, SB, SGEN, SKYW, SPF, SPN, SYA, SYNA, SZYM, TCO, TEP, TMST, TNAV, TNDM, TPX, TSYS, TXTR, UHS, VCRA, VVUS, WAGE, WBMD, WU, WWWW, YRCW, ZLTQ
Fri, Jul. 17, 9:57 AM
- A combination of sluggish job growth and abundant supply has made Washington, D.C. one of the worst U.S. markets for landlords, but rebounding employment is leading to renewed development.
- Toll Brothers (NYSE:TOL) plans to more than double its stock of apartments over the new three years, Camden Property Trust (NYSE:CPT) has 862 units under construction, and AvalonBay (NYSE:AVB) is boosting its investment in what may be a coming hot neighborhood. The nation's largest apartment REIT, Equity Residential (NYSE:EQR) is set to start work on a 174-unit building in Georgetown stalled since 2012. Still a bit wary, UDR is buying rather than building - last month it agreed to acquire six suburban communities from Home Properties.
- Effective rents fell 1.4% in 2013, and rose just 0.4% last year - enough to scare off smaller players. REITs however, have access to relatively cheap capital, giving them the opportunity to step in while the market is soft to hopefully take advantage of the next upturn.
- According to Axiometrics, effective rents will climb 3.4% in 2016 versus 2.9% for the entire country. 2107 should see a 4.5% increase, with 3.6% estimated for 2018.
- Source: Bloomberg
- Previously: Multi-family action leads gain in housing starts (July 17)
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