UDR Inc

Over the last two months, analysts have maintained their “hold” recommendation for Equity Residential.

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 […]

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.

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.

Rising optimism among citizens bodes well for REITs such as Essex Property Trust (ESS) AvalonBay Communities (AVB), Equity Residential (EQR), and UDR (UDR).

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.

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

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

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 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.

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

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

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.

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.

On March 31, 2017, Equity Residential (EQR) owned 302 properties in ten states and the District of Columbia, comprising 77,498 apartment units.

According to Lipper fund flow data, investment-grade bond funds saw net inflows of $2.2 billion during the week ended August 17, 2016.

US financials and Yankee issuers commanded 34.0% each of the primary market high-grade bond issuance in the week ended August 19, 2016.

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

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.

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.

Higher dividend payout by many REITs forces management to go for higher leverage to expand real estate holdings. This results in higher interest outgo, thereby reducing earnings.

American Campus Communities (ACC) reported a total revenue of $733.9 million for fiscal 2014, up by a healthy 11.6% over 2013.

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.

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.

MAA’s operating strategy includes maintaining high occupancy levels to sustain its growth momentum.

MAA’s focus on the acquisition and disposition of properties helps it achieve the required product mix and geographic diversification.

As of the end of fiscal 2014, 92.4% of Camden’s leverage consisted of fixed-rate debt, while 7.6% comprised variable-rate debt.

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.

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.

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 expects coastal California and Washington to lead the nation in job growth given vibrant technology and life science employment sectors.

Acquisitions and dispositions are an important component of Essex Property Trust’s (ESS) business plan.

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.

The sharp rise in Essex Property Trust’s costs in 2014 can be attributed to its acquisition of properties following the BRE Properties merger.

Essex Property Trust is one of the largest apartment REIT companies in the United States with a market capitalization of $14.4 billion.

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.

The distribution of properties in attractive US coastal markets reflects AvalonBay Communities’ geographic diversification strategy.

AvalonBay Communities’ business segments primarily consist of current operating apartment communities, development communities, and development rights.

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.

AvalonBay Communities’ brands focus on consumer preference as well as location and price. They help differentiate its apartments from the competition.

AvalonBay Communities sees property development and redevelopment as an opportunity to enter new markets and strengthen existing ones.

AvalonBay Communities aims to increase long-term shareholder returns. Its strategy is to be a leader in delivering a range of multi-family offerings tailored to customers.

A higher price-to-FFO multiple for AvalonBay Communities meant that it provided consistent capital value return along with reliable dividend yield to investors.

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

ETFs allow investors to build a portfolio that meets specific asset allocation needs. Investors can obtain portfolio diversification across a number of asset classes.

The most common way to calculate the relative value of a REIT like Equity Residential (EQR) is the price-to-FFO (funds from operations) multiple.

Equity Residential’s debt-to-equity ratio reached its high of 1.96 in 2008. Since then, it has fallen consistently from 1.72 in 2009 to 0.96 as of June 2015.

REITs must pay at least 90% of the taxable income to investors as dividends. REIT dividends are protected from the long-term effects of rising prices.

Equity Residential’s (EQR) consolidated cost was $1.69 billion for fiscal 2014—down by 9.70% over 2013. This came after a 52% rise in the total cost in 2013.

Equity Residential has a development pipeline of over $3.1 billion. In 2014, the projects under development totaled $6.7 billion—compared to $4.76 billion in 2013.

The distribution of properties throughout the US reflects Equity Residential’s belief that geographic diversification helps insulate the property portfolio from regional influences.

Equity Residential (EQR) has three main business segments—garden, mid-rise or high-rise, and military housing.