We're continuing to grow our position in apartment REITs by doubling our allocation to Equity Residential (EQR).
Leasing Spreads
EQR provided an early look at their leasing spreads with a June 1st, 2020 update:
Source: EQR
The blended rate on new leases is down by 0.7%. That's not terrible, given the pandemic. We expect June and July performance could be a bit weaker.
While that may seem concerning, an enormous amount of weakness has already been priced in. Consider the price to FFO and price to Analyst AFFO multiples:
Source: TIKR.com
Excluding the very