Elevator thesis
Multifamily fundamentals remain strong but it is challenging to invest in the space as the majority of the sector is trading at lofty valuations. BSR REIT (BSRTF) trades at a sizable discount to the sector while providing exposure to multifamily properties in areas with favorable demographic trends. The relatively lower rent on their assets provides room for increases to rental rates and BSR’s occupancy is trending up. Overall, we see healthy growth at an opportunistic valuation
Let us begin with a look at the fundamental strength behind multifamily.
Supply and demand
Millennials have