Why Apartment REIT investors should care DEEPLY about the Private market
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In the apartment business, just ~6% of assets (by value) trade in the public market as REITs. That means that the rest of multifamily assets are in private hands - these assets are owned by traditional institutional investors (large pensions & endowments), private REITs (such as Blackstone's B-REIT)
Equity Residential: MEGACITIES will thrive and the PRIVATE MARKET SCREAMS BUY!
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-Megacities like LA/NY/SF/Boston will continue to thrive long term. Apartment rents/occupancy are stable in the short term as well (relative to most businesses). EQR rent collections in 2Q were 97%. Occupancy sits at 95% even as we are now 6 months into COVID. -Fortress balance sheet
Sure there is a temporary exodus from the urban core -but...
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* Exposure to suburban areas - for instance the urban core of LA and SF are small as a percentage of NOI for EQR (30%) - this is obvious as LA and SF are incredibly flat ‘cities’ - in truth while LA/SF are considered megacities, this is really just a
LEGAL DISCLAIMER:
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Do NOT buy any security mentioned on this site (or anywhere else for that matter) simply because Eric Bokota owns it and likes it. Verify what we are saying. Do your own analysis. Talk to people. We might be wrong. Private Eye is not responsible for any losses incurred by
Ever wanted to own an apartment in NY? $CLPR
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Private Eye Capital (PEC) LOVES NY. PEC believes $CLPR is VERY low risk and UNBELIEVABLY cheap. $CLPR management seems to agree and announced a large share buyback. $CLPR has a 5% divvy.
Why Megacities?
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Won't everyone just work from home and move to Iowa? No. No they won't. Megacities are special. And rare. There are only a handful of them. There is exactly one NY. Unique. Our admittedly unoriginal thoughts can be summarized as follows: Megacities are physical two sided
