Improving fundamentals for apartment REITs

Apartment REITs experienced an improved recovery.

A report from Moody's Investors Service showed that real estate investment trusts that focus on apartments have experienced a strong recovery.

Overall, these organizations could experience close to another year of improving conditions, Chris Wimmer, vice president for Moody's, told National Real Estate Investor. This is due to the high occupancy rates throughout the country, which has also helped property management companies. Additionally, REITs have an average operating income that was 5 percent higher than the same point during the previous year for the last several quarters.

Money has also been managed properly by these REITs, the report explained. This includes their overall spending situation, as well as new investment, as companies have sold off non-core properties to fund these purchases. There also shouldn't be a significant issue with supply for the near future, though growth may decline at some point.

The stock market situation for REITs also improved, as they boomed to approximately three times their level, on average, the news source added, citing Marcus & Milichap. The S&P 500 only experienced a doubling of levels.

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