Oct. 1, 2014, 11:26 AM| Comment!
Sep. 19, 2014, 4:23 PM
Aug. 25, 2014, 10:59 AM
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. 29, 2014, 8:10 AM
Jun. 19, 2014, 4:17 PM
Jun. 18, 2014, 10:52 AM
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. 29, 2014, 8:16 AM
Mar. 19, 2014, 4:32 PM
Feb. 4, 2014, 8:04 AM
Feb. 4, 2014, 12:05 AM
Feb. 3, 2014, 5:30 PM
Jan. 10, 2014, 8:00 AM
- Shopping centers: The team downgrades Weingarten (WRI) and Kimco (KIM) to Sell.
- Apartments: UDR and Camden Property Trust (CPT) are cut to Neutral.
- Healthcare: Omega Healthcare Investors (OHI) is downgraded to Sell.
- The office and industrial space, however, sees some positivity, with coverage initiated on Liberty Property Trust (LRY) at a Buy.
Jan. 8, 2014, 10:53 AM
- Morgan Stanley is neutral on the group despite some obvious headwinds as it's likely the bad news has already been priced into the stocks.
- First, there's supply pressure - Axios estimates 323K new units in 2014 vs. the 275K historical average and 184K last year. Supply increases may not be as detrimental as thought, however, thanks to average growth of just 125K units per year from 2010-2012.
- Second, there's rising rates: Morgan Stanley notes multifamily has historically been the least impacted in the REIT sector from higher rates thanks to shorter lease terms.
- Valuation? Multifamily REITs trade at a 14% discount to NAV vs. a 1% premium historically. The FFO multiple is 16.1x vs. the 10-year average of 18x, and the relative FFO multiple sigma of negative 1.6x also suggests the group's undervaluation compared to the broader REIT sector.
- Among the players: EQR, AVB, ESS, BRE, PPS, UDR, AIV, CPT, HME, MAA.
Dec. 16, 2013, 8:37 AM
UDR vs. ETF Alternatives
UDR Inc is a self-administered real estate investment trust that owns, acquires, renovates, develops, and manages apartment communitiesgenerally located in high barrier-to-entry markets located throughout the United States.
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