Home Prices Continue to Outperform out West
The real estate recovery has been uneven, as home prices in the Pacific and Mountain states have outperformed the rest of the country over the past two years.
The recent 5.8% year-over-year gain for home prices has put the FHFA (Federal Housing Finance Agency) House Price Index back at April 2007 levels.
The FHFA’s House Price Index differs from other house price indexes in that it only looks at houses with mortgages guaranteed by Fannie Mae and Freddie Mac.
The iShares US Real Estate ETF (IYR) has a 0.39% stake in Post Properties while the SPDR Dow Jones REIT ETF (RWR) has a 0.55% exposure.
Post Properties’ EV-to-EBITDA ratio is in line with its historical valuation, ranging between 12.2x–25.5x, with a current EV-to-EBITDA ratio of ~21.7x.
Post Properties’ TTM price-to-FFO multiple is in line with its historical valuation at around 18.9x.
As of the end of fiscal 2014, Post Properties’ consolidated debt was $892.5 million, which was down by 18.8% over the previous year.
Despite its decline in FFO, Post Properties increased its dividend by 25.8%, reaching $1.56 per common share in fiscal 2014, compared to $1.24 in 2013.
Post Properties’ NOI grew consistently during the past five years, rising from $152.8 million in 2010 to $213.9 million in 2014.
Post Properties recorded an EBITDA margin of 51.3% in 2014, which is lower than the industry average of 57.7%.
Post Properties reported total property revenues of $377.8 million for fiscal 2014, which represents an increase of 4.2% over 2013.
Post Properties’ average occupancy rate has remained high compared to some of its peers in the apartment REIT segment, reaching 96.1% in 2014.
Post Properties’ main aim is to generate value to its residents and investors while being the leading choice of residents in quality, multifamily housing.
The principal objective of Post Properties’ acquisition and disposition strategy is to build a high-quality portfolio that garners demand from residents.
Like other major apartment REITs, Post Properties believes in generating consistent earnings growth through property development and redevelopment.
Post Properties’ communities consist of mid-rise and mix-use buildings in a landscaped setting, including residential units, retail space, and office space.
Post Properties has four major segments, including apartment management, construction and property services, investment group, and corporate services.
Headquartered in Atlanta, Georgia, Post Properties is structured as an REIT and completed its initial public offering in 1993.
Ginnie Mae TBAs rose ten ticks to go out at 104 4/32. Ginnie Mae TBAs had underperformed Fannie TBAs for the past couple of weeks, but reversed the trend last week.
Fannie Mae TBAs rose four ticks to go out at 103 14/32 for the week ending November 27, 2015. The ten-year bond yield fell by four basis points.