CLPR - Solid Bargain At An Apartment Near You

• Book value is not the same as Net Asset Value for equity REITs in the United States. Apartment REITs still trade at substantial discounts to Net Asset Value.
• In the Great Recession, we saw apartment REITs drop to staggering discounts, followed by a moderate reduction in NAV estimates. The same thing occurred in early 2020.
• Following the initial decline with the Great Recession, apartment REITs roared back. Current headwinds to rental rates and occupancy have a similar impact.
• Unless you believe occupancy and/or rental rates will continue to fall for several years (well past any estimate for access to vaccines), it's hard not to like the REITs.
• We're highlighting bullish ratings on ESS and AVB. We own shares of each REIT.

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