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.
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 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, […]
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 […]
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. […]
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 […]
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 […]
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.
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.
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.
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.
Rising optimism among citizens bodes well for REITs such as Essex Property Trust (ESS) AvalonBay Communities (AVB), Equity Residential (EQR), and UDR (UDR).
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.
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.
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.
Equity Residential upwardly revised its guidance for its 2016 same-store operating performance, normalized FFO per share, and some of its transactions.
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.
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.
HUD considers a house to be affordable if the cost of the total rent or mortgage plus utilities are ~30% or lower of the household’s annual income. This relates to a family of four earning at or below 80% of the area median income.
Camden Property Trust’s portfolio occupancy rate inched up marginally by 0.1% year-over-year, reaching 96% in 3Q15. In 4Q15, its occupancy rate may likely be around the same level.
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.
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.
The principal objective of Post Properties’ acquisition and disposition strategy is to build a high-quality portfolio that garners demand from residents.
Education Realty Trust is a self-managed and self-administered equity REIT. The main objective of the company is to develop, acquire, own, and manage student housing properties.
American Campus Communities (ACC), founded by William C. Bayless in 1993, completed an IPO in 2004 and became the first publicly traded student housing REIT on the New York Stock Exchange.
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.
ACC’s FFO payout ratio declined consecutively over the past five years. The FFO payout ratio was 75.8% in 2010. It declined to 67.9% in 2012 and subsequently to 60.8% in 2014.
American Campus Communities’ (ACC) funds from operations increased from $102.7 million in 2010 to $259.2 million in 2014. This is ACC’s highest FFO recorded since its IPO in 2004.
American Campus Communities (ACC) believes its operating and investment strategy has produced positive results in recent years. It expects that strategy to help it increase profitability.
American Campus Communities (ACC) is present in some of the high-growth coastal markets of the country. The geographically diverse portfolio has boded well for the healthy growth of the company.
American Campus Communities (ACC) faces competition from university-owned on-campus student housing, off-campus student housing, and traditional multifamily housing units.
ETFs are a convenient way for investors to build a portfolio that meets specific asset allocation needs. Camden Property Trust (CPT) sees allocation in most of the REIT-specific ETFs.
Camden’s strategic initiatives include selective opportunities to enhance its geographically diverse portfolio of assets that meets the requirements of its residents.
Camden Property Trust’s (CPT) focus on property acquisitions and dispositions bodes well for its healthy growth. Its average monthly revenue has improved significantly over the past several years.
The distribution of properties in the attractive US markets reflects Camden Property Trust’s geographic diversification strategy to take advantage of the growth in prime regional markets.
Camden Property Trust has restructured its portfolio over the past four years through strategic capital recycling and internal growth from its operating portfolio.
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.
AIMCO’s (AIV) EV-EBITDA multiple shows that it’s in line with its historical valuation. Over the last seven years, its EV-EBITDA was 10.5 to 18.2x, with a current EV-EBITDA multiple of 16.9x.
Historically, a lower-than-average price-to-FFO multiple for AIMCO (AIV) shows it couldn’t provide consistent capital value return to investors in spite of a higher dividend yield than some of its peers.
At the end of fiscal 2014, AIMCO’s (AIV) consolidated debt was $4.1 billion, down 5.8% over 2013. Over the last five years, AIMCO’s total debt has declined from $5.2 billion.
AIMCO (AIV) generates revenue primarily from leasing apartments to residents. Other revenues include management fees based on the revenues of the properties being managed.
AIMCO (AIV) invests in the redevelopment of certain apartment communities in superior locations when the investment is expected to yield higher risk-adjusted returns than existing apartments.
AIMCO has a diversified renter base. The average age of AIMCO’s residents is 36 years. Around 38% of AIMCO’s renters are between the ages of 18 and 30 years.
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.
The market reacted negatively to Essex Property Trust’s 3Q15 earnings. Soon after the earnings release, the stock dipped by 3.6% over the previous day’s close.
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.
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.
ETFs are a convenient way for portfolio diversification across a number of asset classes. ETFs mirror the performance of an entire market in a single trade.
Essex Property Trust merged with BRE Properties for the opportunity to acquire a highly complementary apartment portfolio concentrated in its target markets.
Essex Property Trust follows a research-driven strategy for real estate investment decisions to increase shareholder returns. It also expects the strategy to thwart competition.
REITs such as AvalonBay Communities must pay at least 90% of taxable income to investors as dividends. Dividends come from relatively stable rents paid by tenants.
AvalonBay Communities’ business segments primarily consist of current operating apartment communities, development communities, and development rights.
