- The end of the eviction moratorium may be good news for landlords, but it could also accelerate the exodus out of California and the Northeast.
- Equity Residential's assets are highly concentrated in areas of the U.S. with declining rental demand.
- Evidence suggests that all-time-low capitalization rates will not last long as U.S. commercial bank and Fed demand for mortgage-backed securities fades.
- EQR is fairly valued if it were to liquidate all of its assets today; however, an expected 1-2% rise in capitalization rates would cause its NAV to decline 20-40%.
- Equity Residential's high exposure to weakening rental markets may also cause its NOI to decline over the coming years.
For further details see:
Equity Residential: A Small Rise In Mortgage Rates May Soon Pop The Multifamily Property Bubble