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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Prioritize Retention Over Chasing New Leases
- Protect occupancy by investing in resident experience and retention initiatives.
- Prioritize customer satisfaction because occupancy equals cash flow.
San Francisco's Strong Rebound
- San Francisco led Q2 with strong occupancy and blended rent growth after a long recovery.
- REITs credited return-to-office and tech job stability for the turnaround.
Renovations Deliver High ROI
- Value-add renovations are producing strong returns and faster lease velocity even in high-supply markets.
- REITs achieve rent premiums by making older units compete with new builds at lower basis.