The companies (apartment REITs) have been the worst performers this year among all other publicly traded REITs that own commercial property, according to data compiled by Bloomberg. Retail landlords have returned 25 percent, compared with 12 percent for owners of office buildings.
Apartment stocks surged after REIT landlords increased rents by 19 percent between the market bottom at the end of 2009 through the second quarter of 2012, according to Dallas-based Axiometrics Inc. While rents are projected to keep climbing through 2017, the rate of annual growth peaked in the second quarter of 2011 at 5.1 percent. Rents are on pace to rise about 4 percent nationally this year, Axiometrics said.
Friday, September 28, 2012
Friday Reading - Archstone IPO
An article from Bloomberg on Archstone Inc.'s potential $3 bilion IPO, the largest IPO since Facebook earlier this year. The article discusses Archstone and Lehman Brothers, and has performance information on various REIT sectors: