In Q3, home-building REITs thrive

Miami /
Oct.October 03, 2012 04:30 PM

As apartment companies’ shares fell in the third quarter, home building-related REITs fared well, the Wall Street Journal reported.

Timber companies had the lead, posting gains in excess of 10 percent. New Jersey- based Weyerhaeuser Co. saw a return of 17.6 percent and Potatch Corp. posted an 18 percent gain. But apartment REITs saw a negative 4 percent return in the third quarter. Jay Leupp, a portfolio manager at Lazard Asset Management LLC, surmised that “apartment dwellers will be exiting apartments and stepping into the home-buying market.”

Investors feel optimistic in part because inventory is running at historically low levels, the Journal reported. As The Real Deal previously reported, new home starts reached an adjusted annual rate of 750,000 units in August — the highest number of starts since April 2010.

National vacancy for apartments slipped to 4.6 percent from 4.7 percent in the third quarter, showing signs that rental demand is declining. The apartment REIT that posted the largest negative return was Equity Residential — owner of 119,293 units — at 7.2 percent. [WSJ]


Related Articles

arrow_forward_ios
Lennar Executive Chairman Stuart Miller (iStock)

“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results

“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida

Rent-to-own startup Divvy Homes expands to South Florida

Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)

Knock expands home lending program into South Florida 

Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...