Amid stagnant home sales’ figures, with recent decreases in new and existing home sales, some analysts are turning the spotlight on apartment REITs.
“The benefits to apartments are declining homeownership, increased confidence of those people who have their jobs and survived, and you have an unbundling that’s occurring,” said Sandler O’Neill Senior Analyst Alexander D. Goldfarb. “If you look at Axiometrics‘ data, year-to-date through June, the REITs have pushed effective rents 5.5%, and a few have pushed it in excess of 7%. That’s year-to-date; that’s phenomenal.”
Analyst Michael Levy favors apartment REIT Camden (CPT), as it has increased occupancy and raised rents aggressively, overriding themes in the REIT sector.
“I think right now their occupancy is closer to 95.5%, and they started the year at 92%, so they’ve done a really good job of increasing occupancy,” Levy said. “Should a general revival of the rental markets continue, they are in some of the markets that got hit hardest and are now coming out stronger.”
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