2024-02-12 09:52:46 ET
Summary
- Apartment Income REIT Corp. shares have underperformed the broader real estate index over the past year.
- AIRC has a diversified portfolio of institutional quality multifamily assets in attractive markets.
- With low leverage levels, minimal upcoming debt maturities, and attractive interest rates, I see Air Communities as a low-risk investment.
- Air Communities is cheaply valued on all metrics with an implied cap rate of 6.6%, 14.8x 2024e AFFO, and offering a 5.7% dividend yield.
Apartment Income REIT Corp. (Air Communities) ( AIRC ) shares have performed poorly over the past year, with a -13% total return underperforming the broader real estate index ( VNQ ) which has a negative total return of -2%. Beyond 'Higher for Longer' interest rates and generally negative commercial real estate headlines, investors seem to be discouraged by a slowdown in NOI growth and slightly higher financing costs, which are expected to impact 2024 results....
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Apartment Income REIT: Overlooked And Undervalued 5.7% Yielder