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Apartment Income REIT Corp Class A AIRC

Morningstar Rating
$30.82 +0.50 (1.65%)
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Company Report

Apartment Income REIT's Improved Portfolio Should See Low-Single-Digit Same-Store Growth

Apartment Income REIT has significantly slimmed down the portfolio of multifamily buildings it owns over the past decade to just its best assets. The company invests in metropolitan markets with solid demographic trends that allow the company to maintain high occupancies and pass along consistent rent increases. Demand for apartments depends on economic conditions in their markets like job growth, income growth, decreasing homeownership rates, high relative cost of single-family housing, and attractive urban centers. Apartment Income's portfolio is typically more suburban than its multifamily REIT peers, which has put it at a slight disadvantage over the past economic cycle but should favor growth in the company as millennials move from the urban centers out into the suburbs over the next few years. The company regularly recycles capital by selling noncore assets or markets and uses the proceeds to fuel targeted acquisitions with strong growth prospects, a strategy that has improved the company's performance over the past few years.

Price vs Fair Value

AIRC is trading at a 32% discount.
Price
$30.82
Fair Value
$55.50
Uncertainty
Medium
1-Star Price
$18.33
5-Star Price
$61.59
Economic Moat
Hbrd
Capital Allocation
Tjbtdxyhz

Bulls Say, Bears Say

Bulls

Apartment Income's diversified portfolio of mainly suburban and infill assets should see less impact from supply, which is more concentrated in urban, luxury markets.

Bears

The coronavirus pandemic may encourage more office employees to work from home, which could reduce demand for large apartment buildings as proximity to central business districts and transportation hubs becomes less important.

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News

Trading Information

Previous Close Price
$30.32
Day Range
$29.8130.82
52-Week Range
$28.2238.71
Bid/Ask
$29.50 / $32.00
Market Cap
$4.47 Bil
Volume/Avg
1.1 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
7.10
Price/Sales
5.65
Dividend Yield (Trailing)
5.84%
Dividend Yield (Forward)
5.84%
Total Yield
8.62%

Company Profile

Apartment Investment and Management Co. owns a portfolio of 75 apartment communities with over 26,000 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Boston, Denver, Los Angeles, Miami, Philadelphia, San Diego, San Francisco, and Washington, D.C.
Sector
Real Estate
Industry
REIT - Residential
Stock Style Box
Small Core
Total Number of Employees
760

Competitors

Valuation

Metric
AIRC
EQR
AVB
Price/Earnings (Normalized)
7.1039.0536.35
Price/Book Value
1.902.092.15
Price/Sales
5.658.269.12
Price/Cash Flow
11.6715.5116.36
Price/Earnings
AIRC
EQR
AVB

Financial Strength

Metric
AIRC
EQR
AVB
Quick Ratio
0.460.060.57
Current Ratio
0.530.170.76
Interest Coverage
6.274.165.56
Quick Ratio
AIRC
EQR
AVB

Profitability

Metric
AIRC
EQR
AVB
Return on Assets (Normalized)
10.92%4.44%4.86%
Return on Equity (Normalized)
31.64%8.07%8.64%
Return on Invested Capital (Normalized)
13.79%5.89%6.08%
Return on Assets
AIRC
EQR
AVB
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REIT - Residential Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
AVB
AvalonBay Communities IncThfw$25.3 Bil
EQR
Equity ResidentialFxnh$23.1 Bil
INVH
Invitation Homes IncZhl$21.1 Bil
SUI
Sun Communities IncZkk$16.5 Bil
ESS
Essex Property Trust IncPdh$15.0 Bil
MAA
Mid-America Apartment Communities IncGrbq$14.9 Bil
AMH
American Homes 4 Rent Class ASml$13.5 Bil
ELS
Equity Lifestyle Properties IncMbww$12.5 Bil
UDR
UDR IncXffn$11.8 Bil

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