How UDR Plans to Increase Shareholder Returns
UDR’s (UDR) principal business strategy is to maximize the economic returns of its apartment communities to provide higher shareholder returns and value.
UDR Recorded the Highest Funds from Operations in 2014
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.
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.
Investment-Grade Bond Fund Flows Slowed Last Week
According to Lipper fund flow data, investment-grade bond funds saw net inflows of $2.2 billion during the week ended August 17, 2016.
How to Invest in Equity Residential through ETFs
ETFs allow investors to build a portfolio that meets specific asset allocation needs. Investors can obtain portfolio diversification across a number of asset classes.
Standard Chartered Issued the Most High-Grade Bonds Last Week
US financials and Yankee issuers commanded 34.0% each of the primary market high-grade bond issuance in the week ended August 19, 2016.
Why Essex Property Trust Concentrates Its Portfolio on the West Coast
Essex Property Trust expects coastal California and Washington to lead the nation in job growth given vibrant technology and life science employment sectors.
Breakdown of Essex Property Trust’s Cost Structure
The sharp rise in Essex Property Trust’s costs in 2014 can be attributed to its acquisition of properties following the BRE Properties merger.
Where Equity Residential Stands among Peers after Q2 Results
Over the last two months, analysts have maintained their “hold” recommendation for Equity Residential.
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 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 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.
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.
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.
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.
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.
How Much Money Are You Spending on Rent?
Rent is rising fast while pay raises have been very modest, which is a very difficult situation for median-income households.
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.
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.
American Campus Communities Has Lower Leverage Than Average
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 Reported Healthy Revenue Growth
American Campus Communities (ACC) reported a total revenue of $733.9 million for fiscal 2014, up by a healthy 11.6% over 2013.
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 Have Rising Occupancy Levels and Rent Boded Well for MAA?
MAA’s operating strategy includes maintaining high occupancy levels to sustain its growth momentum.
Why Property Acquisitions and Dispositions Are Important to MAA
MAA’s focus on the acquisition and disposition of properties helps it achieve the required product mix and geographic diversification.
Camden Property Trust Has Lower Leverage Than Industry Average
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.
Investing in American Campus Communities, a Student Housing REIT
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.
What Do Analysts Recommend for AvalonBay?
AvalonBay trades at a higher-than-average price-to-FFO multiple for the industry due to a number of reasons.
Essex Property Trust Stock Fell despite Robust 3Q15 Earnings
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.
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.
Equity Residential’s 3Q15 Earnings Boost the Stock Performance
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.
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.
Analyzing UDR’s Price-to-FFO Multiple versus Its Peers
Historically, a better-than-average price-to-FFO multiple for UDR meant that it was able to provide consistent capital value return to investors.
Investing in Essex Property Trust through ETFs
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.
How Essex Property Trust Plans to Increase Shareholder Returns
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.
How Essex Property Trust Benefited from Portfolio Restructuring
Acquisitions and dispositions are an important component of Essex Property Trust’s (ESS) business plan.
Assessing AvalonBay Communities’ Price Multiple Versus Peers
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 Offers Steady Dividend to Shareholders
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.
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.
How Does AvalonBay Communities Plan to Increase Shareholder Returns?
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.
AvalonBay Communities’ Development and Redevelopment Projects
AvalonBay Communities sees property development and redevelopment as an opportunity to enter new markets and strengthen existing ones.
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.
Analyzing Equity Residential’s Higher Price-to-FFO Multiple
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.
What Are the Major Brands of AvalonBay Communities?
AvalonBay Communities’ brands focus on consumer preference as well as location and price. They help differentiate its apartments from the competition.
Equity Residential Has a Moderate Debt-to-Equity Ratio
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.
An Overview of AvalonBay Communities’ Geographic Coverage
The distribution of properties in attractive US coastal markets reflects AvalonBay Communities’ geographic diversification strategy.
Equity Residential Offers Steady Dividends to Shareholders
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.
What Are AvalonBay Communities’ Key Business Segments?
AvalonBay Communities’ business segments primarily consist of current operating apartment communities, development communities, and development rights.
Investing in AvalonBay Communities: A Must-Know Company Overview
AvalonBay Communities is a REIT focused on developing, redeveloping, acquiring, and managing high-quality apartment communities in high barrier-to-entry US markets.
What Was Equity Residential’s Cost Structure?
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.
What Are Equity Residential’s Development Projects?
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.
Analyzing Equity Residential’s Geographic Coverage
The distribution of properties throughout the US reflects Equity Residential’s belief that geographic diversification helps insulate the property portfolio from regional influences.
What Are Equity Residential’s Key Business Segments?
Equity Residential (EQR) has three main business segments—garden, mid-rise or high-rise, and military housing.