Essex Property Trust Inc

Equity Residential (EQR) reported strong third-quarter results yesterday.

During the first half of 2018, Equity Residential sold four apartment properties and a land parcel for $292.7 million.

Equity Residential (EQR) posted FFO (funds from operations) of $0.81 in Q2 2018, beating Wall Street’s expectations by a penny.

EQR reported higher revenues backed by strong growth in rental income.

Since REITs are required to pay 90% of their income as dividends, the tax cuts might reduce their advantage in comparison to other corporations.

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.

Equity Residential (EQR) has properties in Southern California, San Francisco, New York, Washington DC, Boston, and Seattle.

Analysts gave EQR a mean price target of $69.08, implying a ~8.3% rise from its current level of $63.77.

Residential REITs undertook various development and expansionary activities in order to maintain their leadership in the sector.

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 […]

AvalonBay Communities (AVB) reported core FFO (funds from operations) of $2.09 per share, in line with Wall Street estimates.

During 2Q17, Equity Residential (EQR) reported higher-than-expected top-line and bottom-line results backed by robust rent growth and occupancy levels.

Equity Residential’s (EQR) top line in 2Q17 surpassed both the year-ago results as well as management’s expectations backed by rent growth.

Equity Residential (EQR) is expected to experience slightly lower margins, mainly due to the higher cost of debt.

Equity Residential’s current price-to-FFO multiple is 21.01x. Its higher multiple shows that the stock has provided a consistent capital value return.

Analysts expect Equity Residential (EQR) to report revenue of $608.5 million for 2Q17 when it releases its results on July 25, 2017.

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).

Amid the shifting residential REIT scenario, Essex Property Trust (ESS) has been able to maintain its dominant position.

REITs such as Essex Property Trust (ESS) yielded high returns in the long period during which interest rates were below average.

The current macroeconomic scenario is conducive for growth in the residential REIT (real estate investment trust) sector.

The home building sector has set itself a course for smooth sailing amid the current favorable economic scenario.

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.

The current economic environment has made investors skeptical about the real estate investment trust (or REIT) industry.

In May 2017, 11 of 23 analysts covering AVB stock issued “buy” or “strong buy” ratings.

Currently, AvalonBay Communities is offering a next-12-month (or NTM) dividend yield of 3%, which is in line with its close competitors.

During 2016, AvalonBay Communities (AVB) repurchased 57,172 shares worth $0.6 million.

During 1Q17, AvalonBay Communities (AVB) had completed the development of projects worth $650 million at an initially projected yield of 5.6%.

According to the University of Michigan, the consumer sentiment index for May 2017 gained 2.5% year-over-year, standing at 97.1%.

AvalonBay’s 1Q17 revenues came in at ~$522.3 million and surpassed estimates by 0.3%.

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’s effective overall borrowing rate for fiscal 2016 was ~4.5%, close to its 2015 level of ~4.6%.

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.

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.

Equity Residential upwardly revised its guidance for its 2016 same-store operating performance, normalized FFO per share, and some of its transactions.

In 2015, EQR was active in both the unsecured and secured credit markets to lower its effective borrowing costs and extend its maturity profile.

Rent is rising fast while pay raises have been very modest, which is a very difficult situation for median-income households.

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.

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.

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 recorded an EBITDA margin of 51.3% in 2014, which is lower than the industry average of 57.7%.

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.

Headquartered in Atlanta, Georgia, Post Properties is structured as an REIT and completed its initial public offering in 1993.

EdR (EDR) classifies its business into three segments: collegiate housing leasing, development consulting services, and management services.

FFO payout ratio is the dividend declared per common share divided by diluted FFO per common share for a given period.

A closer look at EdR’s (EDR) trailing-12-month price-to-FFO multiple shows that it is in line with its historical valuation.

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.

American Campus Communities’ (ACC) current price-to-FFO multiple is 16.6x, which is lower than some of its major peers.

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 believes in generating consistent earnings growth through property development and acquisitions.

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) has four segments: wholly-owned properties, on-campus participating properties, development services,
and property management services.

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 Property Trust’s (CPT) EV-EBITDA multiple is in line with its historical valuation. Its current EV-EBITDA multiple is around 17.1x.

A closer look at Camden Property Trust’s (CPT) trailing 12 months price-to-FFO multiple shows that it’s in line with its historical valuation.

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’s (AIV) funds from operations have increased consistently over the past five years, from $177 million in fiscal 2010 to $301.8 million in fiscal 2014. That’s the highest FFO in seven 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.

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.

AIMCO’s main aim of its geographic coverage strategy is to maintain diversification while moving to a higher average price point.

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 trades at a higher-than-average price-to-FFO multiple for the industry due to a number of reasons.

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.

On October 26, Equity Residential announced its plans to sell 72 properties in five markets to Starwood Capital. This includes 23,262 apartment units.

Equity Residential (EQR) is the largest US residential REIT. It reported its 3Q15 earnings on October 26. The company’s EPS was $0.53 for 3Q15.

New home sales fell to 468,000 in September—compared to a downward revised 529,000 in August 2015. It’s below the consensus estimate of 549,000.

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.

Historically, a better-than-average price-to-FFO multiple for UDR meant that it was able to provide consistent capital value return to investors.

UDR’s funds from operations rose from $192.8 million in 2010 to $415.4 million in 2014—the highest FFO recorded by the company during the past decade.

UDR’s (UDR) principal business strategy is to maximize the economic returns of its apartment communities to provide higher shareholder returns and value.