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UPDATE 1-Multifamily REITs will benefit post subprime era - BMO

Mon Mar 31, 2008 11:56pm IST
 
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 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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