Shares of apartment, storage REITs soar

In a sign of the U.S. rental market’s strength, shares of real estate investment trusts that own apartment buildings — Equity Residential, Apartment Investment & Management and UDR — are near their highest levels in a year, according to CNN Money. Storage facility REITs, including Public Storage, Sovran Self Storage and U-Store-It Trust are also performing remarkably well. Analysts say that with the job market improving, these types of companies, which offer short-term leases, have seen demand grow, allowing them to raise their rental rates even as the housing market stagnates. “A few years ago, apartment and storage companies were more worried about holding onto existing tenants,” said Bob Gadsden, manager of the Alpine Realty Income & Growth Fund in Westchester. “But because these companies offer shorter-term leases, they have more pricing power now.” [CNN Money]