Yet Another Value Podcast Rhizome Partners' Bill Chen updates his publicly traded real estate thesis+ $AIV pitch
Aug 20, 2024
Bill Chen, a real estate investor and Managing Director at Rhizome Partners, shares insights into the booming publicly traded real estate market. He discusses the impressive performance of REITs and elaborates on the importance of effective management. Bill also pitches Apartment Investment & Management Co. ($AIV), highlighting undervaluation potential and key growth catalysts, particularly the sale of valuable Miami assets. He emphasizes the need for thorough due diligence and strategic capital allocation in navigating the complex landscape of real estate investments.
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Public REITs Outperforming
- Publicly traded real estate has performed well in the last 12 months, exceeding expectations.
- Bill Chen's prediction about the opportunity in this sector proved accurate.
Holding Multifamily REITs
- Large-cap multifamily REITs are still attractive investments.
- Consider selling when cap rates reach 5% or when superior opportunities arise.
Cap Rate vs. Treasury Yield
- A 5% cap rate is a target, but the 10-year Treasury yield influences decisions.
- Lower Treasury yields may justify holding, while higher yields might prompt selling.