Dec. 11, 2014, 8:02 AM| Comment!
Dec. 3, 2014, 4:42 PM| Comment!
Nov. 24, 2014, 2:40 PM
- Expected rent growth of 3.9% in 2015 is a bit slower than this year's 4%, according to the NAR, but it's still about 200 basis points higher than inflation.
- Though anticipated to edge upward, vacancy rates will still be scraping bottom - 4.1% in 2015 and 4.2% in 2015 vs. 4% this year. When vacancy rates are below 5%, it's considered a "landlord's market" in which property owners can continue to hike rents, says the NAR.
- Apartment REITs: Equity Residential (NYSE:EQR), AvalonBay (NYSE:AVB), Essex Property Trust (NYSE:ESS), Post Properties (NYSE:PPS), UDR, Aimco (NYSE:AIV), Camden Property Trust (NYSE:CPT), Home Properties (NYSE:HME), Mid-America Apartment Communities (NYSE:MAA).
Oct. 29, 2014, 5:05 PM| Comment!
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. 11, 2014, 4:22 PM| Comment!
Aug. 25, 2014, 10:59 AM
Aug. 20, 2014, 3:35 PM
- UBS O'Connor LLC is a $5.6B hedge fund unit within the Swiss bank, and it has cut REIT holdings across the board by more than $900M after racking up big gains in the stocks this year.
- The biggest reductions were in Mid-America Apartment Communities (MAA +0.3%), AvalonBay (AVB +0.8%), and Equity Lifestyle Properties (ELS +0.2%), and other holdings include Redwood Trust (RWT -0.8%) and American Realty Capital (ARCP +1.1%).
- ETFs: IYR, VNQ, DRN, URE, REZ, SRS, ICF, RWR, SCHH, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, FNIO, WREI, GQRE
- SEC Form 13F
Aug. 20, 2014, 9:29 AM
- “We will take what economic activity we can get, but our housing market model was designed in the U.S. to build a lot of single-family homes for owners, not multifamily homes for renters," says Diane Swonk commenting on yesterday's big jump in housing starts.
- A big share of the gain came from multifamily starts - typically a volatile number - but a rolling 12-month total shows apartment construction at its highest level in 25 years. Single-family housing has a bigger multiplier effect for both consumer spending and employment, says Swonk.
- As for apartment owners, a separate report showed rents up 3.3% Y/Y, their fastest pace of increase in five years. It's little mystery why the stocks of companies like Equity Residential (NYSE:EQR) and AvalonBay (NYSE:AVB) are at all-time highs, but their owners may want to mull the fast pace of building.
- Others of interest: ESS, PPS, UDR, AIV, CPT, HME, MAA, TSRE, AEC, IRET, APTS
Jul. 30, 2014, 6:07 PM| Comment!
May 22, 2014, 4:27 PM| Comment!
May 16, 2014, 10:40 AM
- A check of apartment REITs finds the group little-changed amid a surge in multi-family starts and permits in April. Finance professor Amir Sufi says it's pretty simple - builders are well aware of the data represented in this chart showing rents easily outpacing inflation over the past few years.
- Trulia's Jed Kolko says 93% of multi-family starts are intended as rentals and 89% of them were 20+ unit buildings. Both of these metrics were in the 60% range during the bubble years.
- Equity Residential (EQR +0.2%), AvalonBay (AVB -0.4%), Essex Property (ESS +0.2%), Post Properties (PPS -0.1%), UDR (UDR), Apartment Investment (AIV +0.5%), Camden Property (CPT +0.1%), Home Properties (HME -0.1%), Mid-America Apartment (MAA)
Apr. 30, 2014, 6:19 PM| Comment!
Mar. 20, 2014, 5:08 PM| Comment!
Feb. 5, 2014, 4:51 PM| Comment!
Feb. 5, 2014, 12:10 AM
- AFFX, AIZ, AKAM, ALL, ARMK, ATML, AVNR, BDN, BKD, BMR, BOFI, CALD, CBG, CINF, CNW, DIS, DRIV, EDMC, ENS, ENTR, FEIC, FISV, FLT, FMC, FORM, GEOS, GIL, GLUU, GMCR, GPRE, IRBT, KIM, LNC, MAA, MRO, MTD, MTGE, NXPI, OESX, ONVO, ORLY, OSUR, P, PAA, PMT, PNNT, PRU, QUIK, RE, RLD, SCSS, SFLY, SNCR, SPF, SRCL, SWI, SWIR, SWM, THG, TQNT, TSO, TTMI, TWO, TWTR, TYL, UHAL, WGL, WNC, XL, YELP
MAA vs. ETF Alternatives
Mid-America Apartment Communities is a multifamily focused, self-administered and self-managed REIT. The Company owns, operates, acquires and develops apartment communities in the Southeast and Southwest region of the United States.
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