UPDATE 1-Multifamily REITs will benefit post subprime era - BMO
(Adds details)
March 31 (Reuters) - BMO Capital Markets said multifamily real estate investment trusts (REITs) will benefit in the post-subprime era as there will be a greater inclination to rent versus home ownership.
"With the period of home price declines about to enter its second year, we think buying multifamily may be a way to play the eventual recovery of the overall residential market. Ultimately greater attention will be placed on renting apartments versus owning a home, both now and in the years ahead," analyst Richard Anderson said in a research note.
The analyst upgraded BRE Properties Inc (BRE.N: Quote, Profile, Research) to "market perform" from ""underperform," and AvalonBay Communities Inc (AVB.N: Quote, Profile, Research) to "outperform" from "market perform."
He, however, downgraded apartment company Mid-America Apartment Communities Inc (MAA.N: Quote, Profile, Research) to "market perform" from "outperform," citing reduced trading discount for the stock.
Following are the price target changes by BMO Capital Markets on eight REITs: Company Price Target
(in U.S. $)
Current Prior Mid-America Apartment Communities Inc (MAA.N: Quote, Profile, Research) 52 50 BRE Properties Inc (BRE.N: Quote, Profile, Research) 47 35 AvalonBay Communities Inc (AVB.N: Quote, Profile, Research) 109 87 Camden Property Trust (CPT.N: Quote, Profile, Research) 51 44 Colonial Properties Trust (CLP.N: Quote, Profile, Research) 21 17 Equity Residential (EQR.N: Quote, Profile, Research) 39 34 Essex Property Trust Inc (ESS.N: Quote, Profile, Research) 111 95 Home Properties Inc (HME.N: Quote, Profile, Research) 49 39 (Reporting by Biswarup Gooptu in Bangalore; Editing by Deepak Kannan)
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