Apartment REITs Improving, Job Growth Needed

www.reit.com At REITWeek 2010, Equity Residential (NYSE: EQR) President and CEO David Neithercut spoke with REIT.com's Matt Bechard about the apartment sector and how his company has positioned itself for growth following the economic downturn. "We found the bottom of our business in the middle of 2009, and saw our occupancy begin to grow in the fourth quarter of 2009," Neithercut said. "We've seen that continue. Our rents are up high single-digits since January 2010." However, Neithercut said the company gave tenants a rent discount during the downturn and are beginning to recover some of that discount. It will take real, sustained job growth to truly push the needle, he said. The supply/demand picture is also very strong for the sector, Neithercut said. He said this is in large part due to the echo boom generation leaving college and joining the apartment renter market and almost no new supply coming on the market. Neithercut said potential reform of Fannie Mae and Freddie Mac have been crucial to the multifamily sector, but have been less vital to Equity Residential and other well-capitalized public REITs.

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News & Politics

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• REIT
• NAREIT
• real estate investment trust
• real estate
• Matt Bechard
• David Neithercut
• Equity Residential
• apartment REITs
• Freddie Mac
• Fannie Mae