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Apartment Income REIT Now Deserves A Higher Valuation

Jan. 05, 2022 9:35 PM ETApartment Income REIT Corp. (AIRC)AVB, EQR, ESS, UDR15 Comments


  • AIRC still trades at a lower FFO multiple than its coastal apartment REIT peer group.
  • The primary reason for the discount historically has been high leverage. But after serious deleveraging efforts in 2021, AIRC now has one of the lower leverage ratios among peers.
  • AIRC's strong operational platform allows for higher NOI margins.
  • The REIT also offers a relatively high dividend yield of 3.3%.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord. Learn More »
modern low-rise, multi-family house. affordable housing for a young family

Andrey Sayfutdinov/iStock via Getty Images

Thesis: Strongly Beneficial Environment For Apartment Landlords Like AIRC

Apartment List recently reported that the national median rent increased by 17.8% from the beginning of 2021 through November. Compare that to the pre-pandemic average rent growth for the same period of 2.6%. The

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This article was written by

Austin Rogers profile picture
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.

I write about high-quality dividend growth stocks with the goal of generating the safest, largest, and fastest growing passive income stream possible. My style might be called "Quality at a Reasonable Price" (QARP) in service to the larger strategy of low-risk, low-maintenance, low-turnover dividend growth investing. Since my ideal holding period is "lifelong," my focus is on portfolio income growth rather than total returns.

My background and previous work experience is in commercial real estate, which is why I tend to heavily focus on real estate investment trusts ("REITs"). Currently, I write for the investing group, High Yield Landlord.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AIRC, AVB, ESS, UDR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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