$EQR
Equity Residential
Why Trump's 'Eviction Moratorium' is a Nothing Burger for the megacity apartment REITs
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BIG Headline -->Minimal Impact
California is not dead. Not even close!
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California has some challenges - the government is big. Taxes are high. Covid related shutdowns have stopped film/tv production in LA. Nobody is traveling which has crippled LA's hotels, restaurants, theaters, retail, etc. Things are challenging right now in California. But...there are a few things that
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
