The Real Deal Miami

Shares of apartment, storage REITs soar

May 01, 2011 09:17PM

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