iShares Residential Rel Est Capped

The HMI was reported to have decreased by two points to 68 in June as compared to a May reading of 70.

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

For October, service sector activity rose at a pace not seen since the inception of the report. The non-manufacturing index reached a lifetime high of 60.1.

Since the last FOMC meeting in July, economic conditions in the US have continued to improve.

In the last few months, the performance of the US economy has been impressive. The unemployment rate fell to 4.3% in August.

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.

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.

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).

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

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

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.

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.

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%.

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.

There is wide anticipation in the market that the Federal Reserve could raise interest rates again during its upcoming meeting on June 14, 2017.

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’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.

To qualify as a REIT, a company must have most of its assets and income tied to real estate investment and must pay out almost all of its taxable income to shareholders in the form of dividends. In the U.S., a REIT must meet the following four requirements. The REIT must distribute at least 90% […]

Let’s talk about the two main types of REITs (ICF)—equity REITs and mortgage REITs.

AvalonBay Communities is a REIT focused on developing, redeveloping, acquiring, and managing high-quality apartment communities in high barrier-to-entry US markets.