SA News • Today, 12:23 PM
Today, 12:23 PM
- Expect plenty of foreign capital to continue flowing into the sector, says MLV analyst Ryan Meliker. This will contribute to cap rate compression, making it more difficult for REITs to make accretive purchases.
- The West Coast should lead the country in job generation, and thus rent growth, making Essex Property Trust (ESS) - essentially a pure-play on major markets there - an interesting pick.
- The Northeast is split - with Boston and NYC expected to outperform on rent growth, but Philadelphia, Baltimore, and D.C. predicted to lag.
- Strength in the Southeast will be led by Atlanta, and Central and South Florida. Meliker's top pick, Preferred Apartments (APTS +0.6%) has a strong presence in Atlanta.
- "Conference participants agreed that Houston was in for difficult times ahead – there was no sugar coating how oil prices might affect job growth and therefore demand for multifamily housing."
- Others of interest: Aimco (AIV +0.6%), Associated Estates (AEC +3.1%), AvalonBay (AVB -0.2%), Post Properties (PPS +0.3%), UDR (UDR +0.3%), Camden Property (CPT -0.3%), Home Properties (HME +0.2%), Mid-America (MAA +0.1%), Trade Street Residential (TSRE -0.6%), Equity Residential (EQR +0.3%).
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)
Mon, Jan. 12, 9:46 AM
- Two apartment players get upgrades to Buy from Neutral: AvalonBay (AVB +0.9%) and Mid-America Apartment Communities (MAA +1%). Also getting an upgrade to Buy thanks to its NYC exposure is SL Green Realty (SLG +1%).
- Downgraded to Underperform from Hold are Government Properties Trust (GOV -0.9%) and Digital Realty Trust (DLR -0.1%).
Wed, Jan. 7, 9:42 AM
- Upgraded to Outperform from Market Perform are Corporate Office Properties Trust (OFC +0.8%), Douglas Emmett (DEI +0.5%), and Regency Centers (REG -0.2%).
- Downgraded to Market Perform are Brandywine Realty Trust (BDN +0.3%), Health Care REIT (HCN +0.3%), Mid-America Apartment Communities (MAA -0.1%), and Saul Centers (BFS +0.2%).
- Downgraded to Underperform is Inland Real Estate (IRC -1.3%).
- Previously: Raymond James cools on apartment REITs (Jan. 7)
- Previously: Raymond James rotates on self-storage names (Jan. 7)
- Previously: Raymond James rings the register on Weyerhauser (Jan. 7)
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. 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!
MAA vs. ETF Alternatives
Mid-America Apartment Communities Inc., is a self-administrated and self-managed real estate investment trust which owns, acquires and operates multifamily apartment communities in the Sunbelt region of the United States.
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