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)