Centerspace

Centerspace is a Midwest-focused apartment REIT trading at a discount to peers, with strong near-term AFFO/share growth prospects not priced in. CSR's clever acquisition strategy, including using OP units, allows for accretive purchases in growth markets, enhancing long-term performance. The Midwest's stable rental market and CSR's significant presence in Minneapolis and Denver contribute to its outperformance in same-store NOI growth.» Mehr auf seekingalpha.com

Apartment rental rates are significantly below equilibrium due to oversupply from zero interest rate policies, with rents expected to rise 10%-20% by 2027. Investment opportunities in apartment REITs are promising; current low valuations present a buying opportunity as equilibrium is restored and rents increase. Coastal, Midwestern, and Sunbelt apartment REITs, as well as Canadian REIT BSR, offer varied prospects based on regional supply/demand dynamics and management capabilities.» Mehr auf seekingalpha.com

COVID-19 led to a migration to Sunbelt cities, causing a surge in apartment rents and subsequent overbuilding, which is now stabilizing. Multifamily REITs saw a decline in valuations but are now modestly valued with a P/AFFO multiple averaging 18.3x, higher than the broader REIT market. Despite suppressed rent growth and occupancy, strong job markets and reduced new supply suggest the potential for landlords to regain pricing power.» Mehr auf seekingalpha.com