Back to Basics/ Apartment REIT concepts
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It has been brought to my attention that readers might benefit from a distilled version of the framework/concepts I use in evaluating apartment REITs. Here I discuss: 1. basic supply & demand for apartment markets and discuss how this impacts rents 2. the renter pool in gateway cities vs.
What might AIV be worth in a sale? What does this mean for other apartment REITs?
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Yesterday it was announced that Aimco (AIV) a received buyout approach from privately held Westdale Partners. Frustratingly, price talk was not disclosed, leaving shareholders in the dark. Today I take a look at what Aimco might fetch in a sale and show NAV estimates for other apartment REITs. As I&
Glossary of Apartment REIT Terms
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NOI (Net Operating Income) - Total property level operating revenue less total property operating expenses. If thinking about REITs versus other types of business, NOI is akin to adjusted EBITDA but adds back corporate overhead expenses. The rationale for doing so is that when apartment assets are bought and sold,
TJX - following up after 3Q
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All in my thesis [https://privateeyecapital.us17.list-manage.com/track/click?u=9817d763c853faa67051e844f&id=8a8ecb776e&e=42944f6352] appears on track. 3Q results themselves were decent considering the reluctance consumers have to make non-essential shopping trips. Same store sales comps were -5% year over year. As we’ve seen
Sunbelt Apartment REITs: 20-25% Below Private Market Value
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Note: A draft was sent to our FREE Actionable Investment Idea Newsletter [https://www.privateeyecapital.com/signup/] over the weekend. If you like being in the know and want FREE weekend reading, be sure to sign up NOW [https://www.privateeyecapital.com/signup/]. It's FREE!! Thus far I’
How I think about REIT balance sheets
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To me, the most relevant factors are the following: 1) LTV or Loan to Value - this is the total amount of debt relative to the total value of the properties owned by the REIT. 2) Structure of debt - recourse vs. non recourse 3) Term to maturity & covenants
Creating value via Apartment Development
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The reader may be wondering: with private market pricing at all time highs, other than share buybacks, how can the apartment REITs deploy capital at high rates of return? Development. Camden and other apartment REITs have demonstrated an ability to develop assets at attractive yields (NOI of development / cost of
You can have good news or cheap stocks; CLPR & NEN get No Love in apartment REIT rally
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This past week saw news of a vaccine for COVID sent share prices of most apartment REITs soaring, with those having exposure to hard hit urban areas seeing the some of the greatest gains. Seemingly, an end to COVID and the expectation of a return to normality came as a
