The Rent Roll with Jay Parsons EP#46 Rich Hightower | 5 Takeaways From Apartment REIT Calls
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Aug 14, 2025 Rich Hightower, Managing Director of U.S. REIT Equity Research at Barclays, shares insights from years of tracking apartment REITs. He reveals how Wall Street views these investments, noting discrepancies between public and private market valuations. Rich discusses successful REIT strategies in an era of high supply and rent challenges, including renovation and technology adoption. Additionally, they examine market movements, recent sales like Elme Communities’ portfolio, and the nuances of navigating rent control dynamics, emphasizing the evolving landscape of multifamily housing.
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Strong Renter Health And Retention
- Market-rate renters (mid/upper income) show strong financial health and low rent-to-income ratios.
- REITs report tight occupancy and high retention despite supply growth.
Prioritize Retention Over Chasing New Leases
- Protect occupancy by investing in resident experience and retention initiatives.
- Prioritize customer satisfaction because occupancy equals cash flow.
New-Lease Growth Lags Renewals
- New lease rent growth is softening even as renewals remain strong and occupancy is high.
- Operator and renter sentiment and heavy lease-up supply are driving defensive pricing.