Multifamily REITs ALL raising guidance in 2Q....
In short, results are good...very good. AVB CPT ESS MAA and UDR all increased guidance. Rental growth remains very strong in July and renewals sent out for Aug-Oct have large rental increases. This means that 2023 will be another very good year as 2022 rental increases have a full year impact on the 2023 income statement. I'm too lazy to type so I simply linked to my Tweet updates for the multifamily REITs I wrote about last month.
Sunbelt rental conditions remain strong -> $MAA increase YoY NOI growth guidance to 15% (from 13.5%) as rental rate growth remains robust in July (+16.6% blended YoY). $CPT $NXRT $IRT #REITs #dividends pic.twitter.com/XrVj7Ro1WW
— Private Eye Capital (@PrivateEyeCap) July 27, 2022
Similar to coastal peers $ESS $EQR $UDR, AvalonBay $AVB is benefitting from a very strong apartment leasing market and is boosting guidance to 14.25% NOI growth YoY. With a 15% loss-to-lease at end of June sets up for well for 2023. #multifamily #apartment #rents $VNQ #REITs pic.twitter.com/72Fkz6KSBq
— Private Eye Capital (@PrivateEyeCap) July 27, 2022
Rents. Are. Ripping. We're only in July but $ESS raised guidance for the 3rd time this year, FY SS NOI now expected to grow @ 13.5% YoY (+1.4% vs. previous guide 6.5 weeks ago). Similar #s coming out of $EQR $UDR after the bell. #REITs #apartments #dividends pic.twitter.com/5L9oXCMIxC
— Private Eye Capital (@PrivateEyeCap) July 26, 2022
$CPT trades @ implied ~5.1% 2023e cap rate. For multifamily #Reits it makes most sense to use 2023e NOI given the sizable rent hikes which have occurred YTD (& will continue to occur in 2H as leases are marked to market as they roll). These rent hikes flow through to PnL in 2023
— Private Eye Capital (@PrivateEyeCap) July 29, 2022
$BX reports 2Q22. RE continues to vacuum up flow. $BREIT hauls in another $6.6 bn in 2Q + $1.4 bn so far in July. $60 bn in dry powder. #REITs pic.twitter.com/pBoBz1lior
— Private Eye Capital (@PrivateEyeCap) July 21, 2022
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Disclosure:
As always, THIS IS NOT INVESTMENT ADVICE. Eric Bokota owns shares in AVB CPT ESS MAA and UDR. DO YOUR OWN WORK.