This real estate investment trust owns and manages multifamily apartment communities across the Southeast, Southwest, and Mid-Atlantic regions of the United States, with interests in over 104,000 units. Its operations focus on stable, long-held properties and newer acquisitions or developments. With a beta of 0.77, it shows low correlation to broader market swings, appealing to investors seeking steady income. Growth comes from high occupancy at 95.6%, effective rent collections, and redevelopment projects. Risks include slower job growth and supply pressures in some markets, but declining new construction offers future relief.
The company divides its portfolio into same-store communities, stable for at least a year, and non-same-store assets like recent buys or projects in progress. This setup helps deliver consistent performance. Strong resident retention, with fewer move-outs to home purchases, supports reliable cash flows. Investments in upgrades and technology, such as Wi-Fi additions, enhance property appeal and operating income.
Acquisitions in growing areas like Kansas City and Scottsdale add units at attractive yields of around 6%. Overall, these factors create resilience against economic uncertainty.
We increased our position in this stock in the Dividend Protection Stocks Portfolio because its defensive cash flows and low volatility align with the mandate for safe, reliable dividends. This action reflects confidence in its ability to protect investor capital while providing steady income.
