Wed, Apr. 22, 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
Fri, Mar. 27, 11:09 AM
- Continuing a plan to exit nearly all of its commercial office and retail property portfolios, Investors Real Estate (IRET +1.6%) closes on the sale of four office showroom properties in the Twin Cities for $26.6M. Separately, the company also sold a 26K square foot office showroom building for $2.725M and a 14.82K square foot Walgreens for $5.335M.
- The company earlier this month purchased a 119-unit apartment property in Bismarck for $15M.
- Source: Press Release
Tue, Mar. 17, 12:00 PM
- Apartment prices in North Dakota's oil patch - which last year rivaled those in NYC - have dipped 15-20% in the last two months, reports Reuters - a combination of frenzied building and the plunging oil prices.
- The town of Williston issued permits for 1,290 units in 2014, ten times the amount in 2009. At that city's Dakota Ridge apartments a 2-bedroom which went for $3.2K per month one year ago is going for $2.6K now, even with just-added perks like a hit tub and free alcohol/snacks in the common lounge.
- KKR upscale Prairie Pines has cut rents by nearly 20% since last summer.
- "I could see the quality of life improving for some people if they're not worried each month about how they're going to make rent," says Investors Real Estate's (IRET +0.3%) Justin Hammer. IRET owns apartments in Williston and Minot, some of which it's pricing below market to appeal to families and retirees.
Thu, Mar. 12, 5:06 PM| Comment!
Wed, Mar. 11, 5:35 PM
Wed, Feb. 18, 12:47 PM
- Including dividends, apartment REITs returned 39.7% in 2014, the best among all real estate sectors, according to Nareit, which says REITs overall returned a still-pleasing 28%.
- REITs in general have cooled of late - off 1.7% in February, with apartments off 1.1% as some analysts ring the register.
- Morgan Stanley's Haendel St. Juste says slowing growth combined with pricey stock prices isn't the best combination. He notes the names are trading at 10-15% premiums to NAV vs. 10-15% discounts one year ago.
- Then there's oversupply, especially in company towns like D.C. and in the Texas oil belt. Over the past six months, builders have broken ground on multifamily apartments at an average pace of 357K units per year - 26% more than the 30-year average.
- Names of interest: EQR, AVB, ESS, PPS, UDR, AIV, CPT. HME, MAA, TSRE, AEC, IRET
Tue, Feb. 10, 4:42 PM
- Thomas Wentz joined IRET in 2000 and has been COO since 2009. He's also a board member and has resigned from that spot as well. CEO Timothy Mihalick will take over operational leadership until a replacement is found.
- The company earlier this year announced it's considering a sale of all of its commercial office and retail properties in order to better focus on just multifamily and healthcare assets.
- Source: Press Release
Fri, Jan. 23, 9:16 AM
- Updating its strategic plan, Investors Real Estate Trust (NYSE:IRET) is exploring the sale this year of substantially all of its commercial office and retail properties, thus allowing the company to narrow its focus to just multifamily and healthcare assets.
- IRET has hired CBRE to assist in the sales process, and expects sales packages to be available before the end of February.
- Proceeds from any sale would go towards paying down debt and as capital towards further acquisitions.
- Source: Press Release
Wed, Jan. 14, 7:34 AM
- The hot sector is cut to Market Weight from Overweight at Wells Fargo amid a big reshuffling of ratings at the bank.
- Names of interest: EQR, AVB, ESS, PPS, UDR, AIV, CPT, HME, MAA, TSRE, AEC, IRET.
- Previously: Sell the net lease REIT sector says Wells Fargo (Jan. 14)
- Previously: Wells Fargo pulls the plug on mortgage REITs (Jan. 12)
Dec. 16, 2014, 10:49 AM
- National annual effective rent growth of 4.7% in November is the strongest result since August 2011, reports Axiometrics.
- Axiometrics' Jay Denton: "The combination of an improving job market, and a growing percentage of the population that prefers renting to owning, continues to boost apartment demand."
- Year-to-date rent growth of 5% makes 2014 the strongest post-recession year. 2010 was the previous high at 4.6%.
- The occupancy rate continued a seasonal decline, but at 94.8% it's the strongest November read since Axiometrics started reporting monthly in 2008.
- Source: Press release
- Interested parties: EQR, AVB, ESS, PPS, UDR, AIV, CPT, HME, MAA, TSRE, AEC, IRET
Dec. 10, 2014, 4:40 PM| Comment!
Dec. 9, 2014, 5:35 PM
Nov. 4, 2014, 5:11 PM
- The new credit line is $90M vs. $75M previously, and it can be boosted to $100M at the lender's discretion. The facility is secured by mortgages on 15 properties owned by Investors Real Estate Trust (NYSE:IRET). The initial term is for three years at the WSJ Prime Rate +1.25%, with a floor of 4.75% and a cap of 8.65%.
- In other news, IRET recently closed on the sale of an 83-unit complex in St. Cloud, MN for $4.5M, and the sale of a 52K square foot commercial property in Montana for $1.9M.
- Purchased is a 68-unit complex in Bismarck for $8.5M.
- Source: Press Release
Oct. 14, 2014, 3:10 PM
- The vacancy rate ticked higher to 4.2% in Q3 from 4.1 a quarter earlier - not much of a move, but the first increase in almost five years, according to REIS. Another survey - this one from MPF Research - says vacancy fell to 4.3% from 4.4% across the country's top 100 markets.
- Where the two reports both agree, however, is that there were significant construction deliveries during Q3 and a full pipeline of new construction going forward, suggesting neither vacancies nor rents have a lot of room improvement.
- The potential weakening fundamentals come as apartment REITs have been this year's top-performing REIT sectors (make that any sector) with a total return of 23.65% YTD. Can the outperformance continue?
- Names of interest are almost all having a big day today as interest rates continue to fall. One suspects that as long as rates stay low and first-time homebuyers or those with less-than-perfect credit have trouble getting mortgages, the apartment REITs might still get a bid: EQR, AVB, ESS, PPS, UDR, AIV, CPT, HME, MAA, AEC, IRET, TSRE
Sep. 12, 2014, 11:30 AM
- Adjusted FFO of $0.12 per share was shy of the dividend by $0.01 and - on the earnings call (transcript) - RBC's Michael Salinksy pressed management on whether it's rolling back its goal of dividend coverage to 2016 from 2015. Management's response is they are still shooting or 2015, but it's looking like 2016 is the more likely scenario at this point.
- RBC today downgrades Investors Real Estate Trust (IRET -4%) to Underperform, with price target cut to $8 from $9.
- Previously: Investors Real Estate Trust misses by $0.02, beats on revenue
Sep. 9, 2014, 5:07 PM| Comment!
IRET vs. ETF Alternatives
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