AvalonBay Communities Inc
How Equity Residential Improved Its Balance Sheet in 2Q17
During 2Q17, Equity Residential (EQR) reported higher-than-expected top-line and bottom-line results backed by robust rent growth and occupancy levels.
Understanding Equity Residential’s Business Segments
In 1Q17, Southern California comprised 25% of Equity Residential’s (EQR) total revenues, 19% of its total revenues came from Washington, D.C., and New York comprised 21% of its total revenues.
AvalonBay: What’s Driving the Dividend and Valuations?
AvalonBay’s revenue grew 7% in the first quarter, driven by rental and other income.
Investing in American Campus Communities through ETFs
ETFs are a convenient, easy way to diversify your portfolio. In this article, we’ll look at how sector-specific and sector-agnostic ETFs invest in American Campus Communities (ACC) stock.
Residential Sector: What Investors Should Know
The residential REIT sector mainly includes apartments and manufactured housing. It’s one of the largest segments in the REIT industry.
How Is Equity Residential Rewarding Its Investors?
EQR announced a quarterly dividend of $0.50. The current dividend yield stands at 3.2%, and it has a payout ratio of 135.2% for 3Q17.
How Rising Interest Rates Could Affect Equity Residential
The Fed indicated that it could implement two more rate hikes in 2017. The market speculates one of the rate hikes could occur in June, and the other one is expected to occur around December 2017.
Why Equity Residential’s Top Line Soared in 2Q17
Equity Residential’s (EQR) top line in 2Q17 surpassed both the year-ago results as well as management’s expectations backed by rent growth.
How Building Permits and the Housing Market Can Predict Trends
When real estate developers or REITs like AvalonBay (AVB) are confident about the economy, they build more in anticipation of future demand from consumers.
Here’s What Drove Equity Residential’s Strong Q3 Results
Equity Residential (EQR) reported strong third-quarter results yesterday.
Where Equity Residential Stands among Peers after Q2 Results
Over the last two months, analysts have maintained their “hold” recommendation for Equity Residential.
Equity Residential’s Q2 Results Beat Wall Street Estimates
Equity Residential (EQR) posted FFO (funds from operations) of $0.81 in Q2 2018, beating Wall Street’s expectations by a penny.
RAAX: Key Focus Areas for Long-Term Considerations
Now that we understand the investment process overall, can you give us a few example sectors and how they work?
What Do Wall Street Analysts Think of Equity Residential?
Analysts gave EQR a mean price target of $69.08, implying a ~8.3% rise from its current level of $63.77.
How Does Equity Residential’s Balance Sheet Look?
EQR reported higher revenues backed by strong growth in rental income.
How Tax Plan, Interest Rates, and Other Factors Are Affecting EQR
Since REITs are required to pay 90% of their income as dividends, the tax cuts might reduce their advantage in comparison to other corporations.
Equity Residential’s Strategic Properties Give It an Edge
Equity Residential (EQR) has properties in Southern California, San Francisco, New York, Washington DC, Boston, and Seattle.
What Lies Ahead for AVB, ESS, and EQR?
The residential REIT sector is on the threshold of a transition period and the performance of these stocks depends a lot on the macroeconomic as well as industrial changes taking place currently.
Residential REITs Implemented These Capital Deployment Strategies
Residential REITs undertook various development and expansionary activities in order to maintain their leadership in the sector.
How AvalonBay Compares after 2Q17
Price-to-funds from operations multiple AvalonBay Communities’ (AVB) performance in 2Q17 can be best evaluated by looking at its price-to-FFO (funds from operations) multiple. The multiple, widely used for REITs, gives an idea of how much an investor pays for a particular stock per unit of its profit. The multiple, which has the same implications as the price-to-earnings […]
Financing Activities Leverage AvalonBay’s Balance Sheet in 2Q17
Performance in 2Q17 AvalonBay Communities (AVB) has undertaken several development, redevelopment, and expansion projects to maintain its share in the market. It invested $400 million in new developments during the quarter. REITs such as UDR (UDR), Essex Property Trust (ESS), and Equity Residential (EQR) fund these activities with the help of debt and equity. Therefore, […]
Income Rises in 2Q17, AvalonBay Expects Higher Expenses
Income generated in 2Q17 AvalonBay Communities (AVB) reported NOI (net operating income) of $367.1 million, compared with $339.6 million in 2Q16. The Northern California region reported the highest NOI of $64.6 million, followed by the New York metropolitan area, which reported NOI of $61.5 million. Development and redevelopment communities reported NOI growth of $40.1 million, […]
How Geography Affected AvalonBay’s 2Q17 Results
Wide geographical diversity AvalonBay Communities (AVB) has its assets well placed in high-demand Class A cities. These cities have soaring job growth, a high barrier to entry for competitors, and proximity to premium infrastructure. REIT peers UDR (UDR), Equity Residential (EQR), and Essex Property Trust (ESS) are repositioning their properties to Class A cities and […]
AvalonBay Maintains Profit with Strategic Capital Deployment
Demographic shift American demographics are shifting towards Class A cities with high-income growth and demand for residential apartments. These cities offer job prospects and proximity to offices, schools, and other necessities for premium social living. Although these cities also have high barriers to entry, more residential apartment owners are repositioning their properties in these areas. […]
AvalonBay Revenue Climbs in 2Q17, Backed by Rent Growth
Robust 2Q17 driven by rent growth AvalonBay Communities’ (AVB) total revenue of $530.5 million marginally surpassed Wall Street estimates by 0.3%. However, revenue rose by almost 6% from the year prior. Upbeat top-line growth reflected growth in development communities and stabilized operating communities. Same-store revenue rose 2.5% year-over-year. Including revenue from redeveloped communities, same-store revenue […]
What Lies Ahead for AvalonBay
Robust 2Q17 results AvalonBay Communities’ (AVB) top and bottom lines exceeded expectations, backed by higher net operating income growth of 8.1%. Factors affecting profit during 2Q17 Higher occupancy and rent growth in development communities and stabilized operating communities led to upbeat results during the quarter. Higher funds from operations expected for 3Q17 AvalonBay expects […]
Where AvalonBay Stands after Its 2Q17 Earnings Release
AvalonBay Communities (AVB) reported core FFO (funds from operations) of $2.09 per share, in line with Wall Street estimates.
How Vornado Stacks Up against Peers
Vornado’s recent development and redevelopment activities have made investors optimistic about the stock.
Financing Helped Vornado Maintain Strong Balance Sheet in 2Q17
During 2Q17, Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results backed by growth in rent and occupancy level.
Did Vornado’s Cost Reduction Efforts Bear Fruit in 2Q17?
Vornado Realty Trust reported adjusted FFO (funds from operation) of $1.35 per share, which beat Wall Street estimates of $1.20 per share.
How Recent Disposition Activities Helped Vornado in 2Q17
Vornado Trust’s (VNO) top-line and bottom-line results improved year-over-year backed by higher rent growth and lower operational costs.
Project Development Spurred Vornado’s Growth in 2Q17
Vornado Realty Trust (VNO) reported decent results in 2Q17. Its top line and bottom line surpassed results from 2Q16 backed by higher rent and new lease activities.
Where Does Vornado Stand after 2Q17 Earnings?
Vornado Realty Trust (VNO) reported core funds from operation (or FFO) of $1.35 per share in 2Q17, which surpassed Wall Street estimates of $1.20 per share.
How Vornado’s New York Office Segment Performed in 2Q17
Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results during 2Q17 backed by higher rent growth, lower costs, and new leases during the quarter.
Vornado’s New Leases Drove Revenue in 2Q17
VNO posted rental revenue of $626 million in 2Q17, missing Wall Street’s estimates of $633.2 million.
How Wall Street Analysts Rate Vornado
Analysts assigned VNO a mean price target of $89.52, 13.8% higher than its current price level.
How Vornado Stacks Up against Other Industry Players
VNO’s current price-to-FFO multiple is 17.77x. The company has been able to return value to its shareholders consistently in the form of dividends and share repurchases.
Will Vornado Benefit from a Growing Economy in 2Q17?
Although Vornado Realty Trust (VNO) may witness lower margins during a higher interest rate environment, it may see significant growth in the near future.
How Macro Issues Could Affect Vornado in 2Q17
Wall Street expects Vornado Realty Trust (VNO) to post flat year-over-year top-line and bottom-line results in 2Q17.
These Factors Could Affect Vornado’s 2Q17 Results
Vornado Realty Trust (VNO) is scheduled to report its 2Q17 earnings on July 31, 2017.
Will Vornado’s Project Streamlining Drive Net Operating Income?
Wall Street analysts expect Vornado Realty Trust (VNO) to report net operating income of $338.1 million in 2Q17.
How Vornado’s Revenue Could Benefit from Strategic Initiatives
Analysts expect Vornado Realty Trust (VNO) to report revenues of $622.3 million for 2Q17 when it releases its earnings on July 31, 2017.
What’s in Store for Vornado’s 2Q17 Earnings?
Vornado Realty Trust (VNO) is scheduled to report its 2Q17 earnings on July 31, 2017.
Equity Residential’s Main Revenue Drivers in 2Q17
Equity Residential (EQR) is expected to experience slightly lower margins, mainly due to the higher cost of debt.
How Does Wall Street Rate Essex Property Trust?
Essex Property Trust’s (ESS) performance expectations in 2017 are reflected in analysts’ ratings for its stock. Analysts have given ESS a mean price target of $257.6.
How Essex Property Trust Compares to Other Industry Players
The price-to-FFO (funds from operation) ratio is the most popular method of measuring the relative valuation of real estate investment trusts (or REIT) such as Essex Property Trust.
How Well Does Essex Property Manage Its Balance Sheet?
In order to function as real estate investment trusts (or REIT), companies such as Essex Property Trust (ESS) have to pay almost 90% of their taxable income out as dividends.
How Well Does Essex Property Return Value to Its Shareholders?
Real estate investment trusts (or REIT) such as Essex Property Trust (ESS) need to pay at least 90% of their taxable incomes as dividends or share buybacks as a prerequisite for functioning as REITs.
Are Trump and the Rate Hike Blessings in Disguise for ESS?
Rising optimism among citizens bodes well for REITs such as Essex Property Trust (ESS) AvalonBay Communities (AVB), Equity Residential (EQR), and UDR (UDR).
How Wall Street Analysts Rate Vornado Realty Trust
Analysts assigned VNO a mean price target of $108.18, which is 12.9% higher than its current price level.
How High Interest Could Affect ESS and Residential REITs
REITs such as Essex Property Trust (ESS) yielded high returns in the long period during which interest rates were below average.
Development Projects Helps Essex Property Combat REIT Headwinds
Amid the shifting residential REIT scenario, Essex Property Trust (ESS) has been able to maintain its dominant position.
How Well Does Vornado Leverage Its Balance Sheet?
Vornado Realty Trust’s (VNO) total debt-to-total-equity ratio was 153.8%.
Essex Property to See Growth due to Winning Strategies
The current macroeconomic scenario is conducive for growth in the residential REIT (real estate investment trust) sector.
Essex Property and Residential REITs Are Poised to Grow
The home building sector has set itself a course for smooth sailing amid the current favorable economic scenario.
How Essex Property Maintains Its Revenue Growth
A slow and steady improvement in the job market and rising optimism among consumers about their economic welfare has triggered a spike in the construction sector.
Essex Property: An Apartment REIT Standing Strong amid Headwinds
The current economic environment has made investors skeptical about the real estate investment trust (or REIT) industry.
Vornado amid the Economic Transition under President Trump
According to the University of Michigan, the June 2017 consumer sentiment index gained 1.7% year-over-year, standing at 95.1%.
The Fed’s Interest Rate Hike—A Challenge for Vornado Realty Trust
After increasing interest rates in December 2016, the Fed hiked rates in March and June 2017 by 0.25%.
Vornado Realty Trust Works to Streamline Its Operations
Vornado Realty Trust (VNO) disposed of its 32.7% stake in Toys “R” Us and Urban Edge Properties as part of its strategy to concentrate on its core business.
A Look at Vornado’s Top-Line Performance
Vornado Realty Trust (VNO) is in talks to finalize the tax-free spinoff of its business in Washington, D.C. VNO expects to concentrate solely on its New York business after the spinoff.
Vornado Realty: A Commercial REIT Thriving amid a Retail Crisis
Vornado Realty Trust (VNO) is selling off its non-performing assets and focusing on its core business in a move to improve its profitability. Analysts are encouraged by Vornado’s strategy of optimizing its profits.
How Wall Street Analysts View AvalonBay Stock
In May 2017, 11 of 23 analysts covering AVB stock issued “buy” or “strong buy” ratings.
AvalonBay—Comparison with Other Retail REITs in Its Industry
Currently, AvalonBay Communities is offering a next-12-month (or NTM) dividend yield of 3%, which is in line with its close competitors.
How AvalonBay Communities Leverages Its Balance Sheet
AvalonBay has been able to maintain a low debt-to-equity ratio in the last five years. The company reported a debt-to-equity ratio of ~1.5x in 1Q17.
AvalonBay Communities: A Rewarding Stock for Shareholders
During 2016, AvalonBay Communities (AVB) repurchased 57,172 shares worth $0.6 million.
AvalonBay, Residential REITs Target Headwinds through Diversification
During 1Q17, AvalonBay Communities (AVB) had completed the development of projects worth $650 million at an initially projected yield of 5.6%.
Could Rising Consumer Sentiment Boost REITs Like AVB?
According to the University of Michigan, the consumer sentiment index for May 2017 gained 2.5% year-over-year, standing at 97.1%.
The Impact of Trump’s Proposed 2018 Budget on Residential REITs
According to President Trump’s proposed budget for fiscal 2018, the administration is expected to slash $6 million from the U.S. Department of Housing and Urban Development budget, decreasing its funding by 13.2% to $40.7 billion.
How Rising Interest Rates Impact AVB and Residential REITs
There is wide anticipation in the market that the Federal Reserve could raise interest rates again during its upcoming meeting on June 14, 2017.
AvalonBay Communities and the Residential REIT Industry Overview
According to NHAB’s Housing Economics survey, housing starts are expected to rise 6.2% in 2017 and ~6.3% in 2018, backed by respective 9.6% and ~11.8% gains in single-family home sales.
AvalonBay Maintains Revenue Growth amid Industrial Headwinds
AvalonBay’s 1Q17 revenues came in at ~$522.3 million and surpassed estimates by 0.3%.
AvalonBay: Weathering Ups and Downs in Residential REITs
In May 2017, 11 of 23 analysts covering AvalonBay Communities (AVB) stock issued “buy” or “strong buy” ratings. Eleven analysts gave AVB a “hold” rating, and one analyst gave it a “sell” or a “strong sell” rating.
American Tower’s Business Model Seeks Consistent Profitability
AMT maintains non-cancellable long-term leases with an initial term of ten years. Almost 50% of the company’s leases have a renewal date of 2022 or beyond.
GGP: A Rewarding Stock for Shareholders
General Growth Properties (GGP) has been paying dividends to its shareholders consistently in every quarter since it raised its dividend 11.1% during 4Q16 to $0.22.
How Does Equity Residential Manage Its Debt Leverage?
Equity Residential’s effective overall borrowing rate for fiscal 2016 was ~4.5%, close to its 2015 level of ~4.6%.
Equity Residential’s Geographic Expansion
As a part of its strategy initiated in 2005, Equity Residential (EQR) started to sell off its properties to other REITs located in less-dense regions.
Equity Residential: The Largest Apartment Building Owner in the US
On March 31, 2017, Equity Residential (EQR) owned 302 properties in ten states and the District of Columbia, comprising 77,498 apartment units.
Equity Residential’s Management Paints a Bullish Picture for 2016
Equity Residential upwardly revised its guidance for its 2016 same-store operating performance, normalized FFO per share, and some of its transactions.
EQR Sees a Marginal Fall in Borrowing Costs in 4Q15
In 2015, EQR was active in both the unsecured and secured credit markets to lower its effective borrowing costs and extend its maturity profile.
How Zoning Regulations Benefit Communities
Zoning protects existing property values by preventing incompatible uses of a property. It also protects residential properties from commercial development.
What Can the Government Do to Increase Housing Affordability?
Many local governments have initiated measures to increase housing affordability. The California Community Redevelopment Law requires developers of redevelopment projects to construct 15% of the houses to be affordable for low- and moderate-income households.
Why Rent Is Going through the Roof
As more and more people seek apartments, rent has also been rising rapidly. In fact, rent has been rising faster than the overall cost of living in the US.
Investing in Post Properties through ETFs
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.
Rising Occupancy and Average Rent for American Campus Communities
American Campus Communities’ (ACC) average occupancy rate has remained at an elevated level for the past few years. It reached its peak at 97.8% in 2011.
What Post Properties’ Higher-than-Average EV-to-EBITDA Multiple Means
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.
Assessing Post Properties’ Average Price-to-FFO Multiple
Post Properties’ TTM price-to-FFO multiple is in line with its historical valuation at around 18.9x.
A Comparative Analysis of ICF’s Market Performance
ICF tracks the performance of the realty subsector through the average performances of its holdings.
A Must-Read Company Overview of Post Properties
Headquartered in Atlanta, Georgia, Post Properties is structured as an REIT and completed its initial public offering in 1993.
MAA’s EBITDA Margin: Lower than Industry Average
MAA’s EBITDA margin is lower than the industry average of 57.7%, as well as the margins reported by some of the company’s peers.
Why AIMCO Has Reported Subdued Revenue Growth in Recent Years
AIMCO (AIV) generates revenue primarily from leasing apartments to residents. Other revenues include management fees based on the revenues of the properties being managed.
Camden Property Trust: Its History and Its Business
Camden Property Trust (CPT) is the fifth largest apartment REIT in the United States. At the end of fiscal 2014, it had 181 multifamily properties comprised of 63,163 apartment homes.
Investing in Apartment Investment & Management Company
Apartment Investment & Management Company (or AIMCO) (AIV) is a self-administered, self-managed REIT. It’s one of the largest owners and operators of apartment communities in the United States.
Equity Residential Plans to Sell Apartment Units to Starwood Capital
On October 26, Equity Residential announced its plans to sell 72 properties in five markets to Starwood Capital. This includes 23,262 apartment units.
AvalonBay Struggled to Increase Occupancy Rates in 3Q15
AvalonBay’s established communities’ occupancy rate fell by 0.4% year-over-year to 95.3% in 3Q15. This is the lowest occupancy level recorded by the company in the last 14 quarters.
Why UDR Trades at a Higher EV/EBITDA Multiple
A closer look at UDR’s EV/EBITDA multiple shows that, over the last seven years, UDR’s EV/EBITDA was 12.9x–23.8x. Its current EV/EBITDA is around 22.3x.
Why Essex Property Trust Trades at a High Price-to-FFO Multiple
A close look at Essex Property Trust’s trailing-12-month price-to-FFO multiple shows that it’s in line with its historical valuation.
Why Did Essex Property Trust Merge with BRE Properties?
Essex Property Trust merged with BRE Properties for the opportunity to acquire a highly complementary apartment portfolio concentrated in its target markets.
Investing in Essex Property Trust: A Must-Read Company Overview
Essex Property Trust is one of the largest apartment REIT companies in the United States with a market capitalization of $14.4 billion.
Why AvalonBay Communities Acquired Archstone Enterprise
AvalonBay Communities acquired ~40% of Archstone’s assets and liabilities, which the company saw as an opportunity to expand its presence across major US markets.