- While urban apartment REITs rallied strongly following last week's vaccine news, New England Realty didn't budge. Shares are within 10% of their 52-week low.
- NEN trades at a fraction of its private market value/NAV. NEN has a strong balance sheet with loan-to-value below 40%.
- NEN owns apartments in the Greater Boston area. Greater Boston has favorable long-term supply/demand characteristics. The cost of home ownership is high.
- Should NEN shares revert toward private market value, shares could trade to $180. NEN accretes value to shareholders at about ~$12 per year, meaning that NAV grows as shareholders wait.
For further details see:
New England Realty Associates: Quality Apartment Assets At 1/3 Of NAV