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%).
Mon, Sep. 14, 4:28 PM
Wed, Sep. 9, 8:41 AM
- Miller Tabak is cashing in its chips on a number of Sell recommendations, upgrading Aimco (NYSE:AIV), Duke Realty (NYSE:DRE), Equity Residential (NYSE:EQR), and UDR (NYSE:UDR) to Hold.
- SunTrust boosts Highwoods Properties Trust (NYSE:HIW) to Buy.
- Previously: More REIT upgrades hit (Sept. 9)
- Previously: REITs headed for worst year since 2008 (Sept. 8)
Wed, Sep. 9, 7:47 AM
- The roughed-up sector has been a popular spot for upgrades over the past couple of weeks, and there's a new handful of names getting rating boosts today.
- Aimco (NYSE:AIV) gets two upgrades, with Barclays lifting to Overweight with $43 price target, and Janney to Buy with $41 price target.
- Stifel Nicolaus upgrades Boston Properties (NYSE:BXP), Prologis (NYSE:PLD), and SL Green (NYSE:SLG) to Buy.
- See also: Another batch of REIT upgrades (Sept. 9)
- Previously: REITs headed for worst year since 2008 (Sept. 8)
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
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, 4:19 PM
- Pro forma FFO of $0.56 vs. $0.52 one year ago. Adjusted FFO (deducting company share of capital replacement spending) of $0.46 vs. $0.44.
- Average revenue per apartment of $1,703 up 4.4% Y/Y. Average daily occupancy of 96.3% up 10 basis points. Expenses of $53.1M down ten basis points. NOI of $116.8M up 6.7%.
- Renewal rent increases of 5.1% in Q2. New lease rent increases of 5.7%.
- Full-year pro forma FFO per share guidance of $2.16-$2.26 is raised by $0.02 at the midpoint. AFFO per share of $1.83-$1.93 is lifted by a penny at the midpoint.
- Conference call tomorrow at 1 ET
- Previously: Apartment Investment and Management beats by $0.02, misses on revenue (July 30)
- AIV flat after hours
Thu, Jul. 30, 4:08 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
Tue, Jul. 28, 5:22 PM
Thu, Jul. 23, 8:09 AM
- Launching coverage on a number of apartment rental REITs, Canaccord starts Preferred Apartments (NYSE:APTS) and Education Realty (NYSE:EDR) with Buys.
- APTS is one of the outperformers in the sector, and is actually in the green for the year by nearly 20%. EDR is down more than 10% YTD.
- Essex Property Trust (NYSE:ESS), Aimco (NYSE:AIV), and American Campus (NYSE:ACC) are initiated with Holds.
Mon, Jun. 22, 12:48 PM
- Home Properties is up 2.3% after agreeing to sell itself to Lone Star Funds, but the news isn't doing a whole lot to lift M&A animal spirits in the sector for now.
- As part of the deal UDR (UDR +0.5%) will acquire from Lone Star up to $908M of Home Properties' apartments in the D.C. area. The purchase is expected to boost AFFO by $0.015 per share in 2016.
- Presentation slides
- Earlier this year, Associated Estates agreed to sell itself to a Brookfield Asset Management fund, and last year there was Essex Property Trust's purchase of BRE Properties.
- Equity Residential (EQR -0.3%), AvalonBay (AVB), Post Properties (PPS -0.2%), Aimco (AIV +0.2%), Camden Property (CPT +0.1%), Mid-America (MAA +0.2%), Trade Street Residential (TSRE), Investors Real Estate (IRET -0.4%), NexPoint Residential (NXRT -0.5%), Bluerock Residential (BRG -1.4%).
Fri, May 1, 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%
Thu, Apr. 30, 4:31 PM
Wed, Apr. 29, 5:35 PM
- ABAX, ADNC, ADUS, AEM, AIG, AIV, ARAY, ATHN, ATR, AVD, AXTI, BCOR, BCOV, BMRN, BRKS, BYD, CALD, CAP, CATM, CEMP, CENX, CLD, CLMS, CMLS, COLM, CPSI, CPT, CTCT, CTRL, CUBE, DCT, DGI, DWA, EEP, EGO, ELLI, EMN, EPAY, EVHC, EXEL, EXPE, EZPW, FBHS, FEYE, FLR, FLS, FLT, FRGI, FSLR, G, GB, GILD, HABT, HCI, HLS, HME, HTCH, IART, IMMR, INT, ISBC, JDSU, KRG, LEG, LLNW, LNKD, LNT, LRE, LYV, MITK, MOBL, MRC, MRH, MXL, NFG, NKTR, NR, NTRI, OMCL, PCCC, PDFS, PKI, PODD, POL, PSA, PXLW, QLGC, RGC, RKUS, ROVI, SEM, SGEN, SKYW, SPF, SPN, SPWR, SWKS, SYNC, TER, THG, TMST, TNAV, TNDM, TRMB, TS, TSRO, TSYS, TUES, TXTR, UIL, V, VR, WU, WWWW, YRCW
Wed, Apr. 29, 5:09 PM
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
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