Five apartment metrics to watch this week

The seasonal deceleration and/or resilience of same-store rent growth remains the focus, they say, even as core operations are the main driver of apartment growth in this environment.

With pressure from inflation, the labor market, Hurricane Ian and property tax headwinds, managing expenses will also be a key focus, especially given slowing revenue growth.

As Covid rent relief and eviction moratoria wear off, St. Juste and Luo will look to clarify short-term bad debt expectations in 2H22/FY23.

With the deal market stalled following the rise in WACC, they will be looking for an updated outlook on acquisition prices/opportunities and capitalization rates.

The development message as yields compress due to cost inflation and slowing NOI growth.

The apartment sector has seen headwinds in terms of lease and ceiling rates lately, two indicators that the industry has been watching closely. But with apartment revenue for the third quarter kicking off this week, there are other financial metrics that should also be watched at the company level, according to Mizuho Americas research analysts Handel St. Juste and Barry Luo. . In a new research note, they outline what will be the most popular focus points in their conversations with investors that go beyond the macro and rising interest rates.

Check out our slideshow to see what they’ll want to know.

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