67 WALL STREET, New York - October 25, 2013 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Pricing Power Outlook - Acquisition and Financing Costs - Apartment, Lodging, Self-Storage and Office REITs - Consolidation Activity - REIT Access to Capital
Companies include: American Residential Properties, Inc. (ARPI) and many more.
In the following excerpt from the REITs Report, top management discusses the outlook for this company and this vital industry:
TWST: Are there still plenty of good deals out there? As someone who lives in Las Vegas, one of, if not the worst hit market, I can say that the market has made some improvement.
Mr. Schmitz: It has, and it's interesting, because we were the first of the institutional players to go to Las Vegas. We liked Vegas a lot; we always thought Las Vegas was maybe 18 months behind Phoenix, and it's pretty tough to kill a town like Vegas. The problem in Vegas was too much employment centered on the construction business, and obviously in the downturn all of that went away.
Ms. Hawkes: In some places, including Las Vegas, there are still great opportunities. What people don't understand is that the MLS is a very vibrant mechanism, and there is still product being put on the market on a daily basis. As long as you're diligently watching the homes that become available in the markets that you target, you can acquire an interesting number of houses in a large number of markets over an extended period of time. It doesn't have to be 300 houses on Super Tuesday in Atlanta.
Mr. Schmitz: The other thing in Vegas is you have very strong rental demand; in Vegas, 52% of people rent homes as opposed to own.
Ms. Hawkes: The trend toward renting rather than owning is a national one. We have watched ownership move from 69% to 64% in this country. Each 1% decrease is equivalent to one million households, so by definition about 5 million homes have moved through the system. There are roughly 4.7 million homes still in the system, and we think that we're going to see another 2 million or so move through the markets.
When you add up the amount of money that the big institutional players have spent on acquiring single-family homes, it probably totals $15 billion to $20 billion on the high side, which represents only...
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