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$EQR

Equity Residential

EQR Results; Expectations/Moods/Share Prices

EQR Results; Expectations/Moods/Share Prices
Members Public

Equity Residential (EQR) reported results last week showing improved quarter over quarter occupancy.  While rents declined year over year, concessions/incentives have declined and rents have stabilized versus last quarter.  LA, Boston, Orange Country and San Diego rank are expected to show relative strength for 2021.  Of course, SF and

Eric J Bokota
$EQR
LA is set to BOOM!

LA is set to BOOM!
Members Public

Happy new year - As I’ve mentioned previously, I believe that LA is on the precipice of a large, Hollywood-driven boom (I’m guessing 2H21) as: Working through the backlog of un-produced film & TV from 2020 as COVID shut down production schedules for much of 2020.More importantly,

Eric J Bokota
$ESS
Don't believe everything that you read over and over again

Don't believe everything that you read over and over again
Members Public

Apartment REIT investors have heard two refrains throughout 2020: 1) California is dead (2) Urban areas are dead. To read the news, the death of CA seems a given -after all we lost not only Joe Rogan but Elon Musk and Oracle.   Today after hours we have a sizable counterfactual.

Eric J Bokota
$AVB

3Q20 updates for EQR/AVB
Members Public

EQR and AVB reported weak results.  The impact of the pandemic has hit urban areas hardest - causing increases in vacancy, declines in effective rents, and corresponding decreases in NOI.  Occupancy @ EQR is ~94%.  AVB saw occupancy as low as ~93% in Sept before rebounding to ~94% in October.  Coupled

Eric J Bokota
$AVB

Tidbits: EQR follow up; New Actionable Investment Idea coming this week
Members Public

While I have a new actionable investment idea in the hopper, it is not yet ready to send out (interested readers: keep your eyes out this week either in your Inbox or at www.privateeyecapital.com; if you haven't already, sign up for the FREE Actionable Investment Idea newsletter here

Eric J Bokota
$EQR
The prudent sounding verbiage in sell-side reports can lead to terrible investment outcomes

The prudent sounding verbiage in sell-side reports can lead to terrible investment outcomes
Members Public

This is in response to Baird's enlightening research piece (Seeking Alpha synopsis here) earlier this month letting us all know to  wait for rents to bottom before buying apartment REITs.  The wizards at Baird think this is what worked last time.  Let me tell you - things are different. Why

Eric J Bokota
$ESS
Equity Residential (EQR): Recap transaction could give shareholders ALL their money back while still owning ALL the apartments

Equity Residential (EQR): Recap transaction could give shareholders ALL their money back while still owning ALL the apartments
Members Public

The 9/14 $2.4 billion California apartment transaction lends credibility to the notion of being able to recapitalize Equity Residential (full writeup here), pay shareholders back 94-103% of their money invested (pretty much right away) and then still owning ALL the properties (and receiving a growing stream of dividends)

Eric J Bokota
$EQR
The private market for California apartments is Alive & Well

The private market for California apartments is Alive & Well
Members Public

Quick N Dirty: On 9/14/20, Aimco announced a series of transactions including the formation of a $2.4 bn JV with a passive institutional partner whereby LA/SF apartment properties were sold at a 4.2% cap rate/$592k per unit valuation.  This valuation is consistent with what

Eric J Bokota
$AVB