REIT Roundtable Continued

Let's keep things rolling and take a look at a beaten down sector

"Apartment REITs"

THREAD

1/

Apartment REITs have been a mixed since the pandemic hit in March. Many Americans have started moving out of the city and into the suburbs, which has impacted REITs depending on their specific portfolio. Rent collections have lagged.

Here are the Apartment REITs I follow

2/

$AVB
$EQR
$ESS
$MAA
$UDR
$CPT

3/

Let's look at Fwd P/FFO valuations for these REITs

$AVB 17.8x
$EQR 17.4x
$ESS 16.7x
$MAA 18.3x
$UDR 17.1x
$CPT 18.0x

4/

Here is the dividend yield for each

$AVB 3.98%
$EQR 4.23%
$ESS 3.77%
$MAA 3.41%
$UDR 4.10%
$CPT 3.65%

All of these REITs except for $MAA are currently yielding above their 5-year average

5/

$AVB and $ESS are two of the strongest REITs over the year. $ESS focuses primarily on the west coast, an area that has benefited from the tech boom over the years, but has been impacted greatly from west coast unemployment

6/

$AVB is the largest in the sector and a name I like best due to the diversification of their portfolio. CA was their worst performing region, which explains how hard hit $ESS was.

However, I believe both of these REITs to be undervalued and high-quality long term plays

7/

This is certainly a sector I am looking to take a closer look at moving forward.

Do you own any Apartment REITs?