Apartment REITs Prepare for Future

Apartment REITs are planning for an anticipated resurgence in the housing market:

The interest in apartment properties since the recession has also created a tough environment for multifamily REITs to find high-quality assets at affordable prices in key locations, according to Considine. Instead, REITs such as Aimco are putting an emphasis on the redevelopment of their existing properties. 

“We have not been active acquirers,” he said. “We have been able to spend our capital dollars on redevelopment, which has a higher margin.”

Equity Residential (NYSE: EQR) has been focusing its efforts on planning for a possible resurgence in the housing market. In a video interview with REIT.com during REITWeek 2012: NAREIT’s Investor Forum, David Neithercut, president and CEO of Equity Residential, said he’s anticipating that markets where the cost of single-family housing is low will be more affected by the resurgence of the housing market. “We’ve been selling assets in those markets,” he said. The company has instead turned its attention markets with high barriers to entry and more expensive single family housing. 

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