Sector: Real Estate | Focus: Multi-Family Residential REITs
HQ: San Mateo, California
Financial Risks
The company faces risks from elevated tenant cash delinquencies, though not currently material. Geopolitical tensions, inflation, and potential recessionary impacts affect market conditions and interest rates. The company's ability to maintain investment-grade credit ratings is a concern. Litigation risks, including class actions, are present and outcomes are uncertain. The success of development and redevelopment projects is uncertain. Changes in laws and regulations, and unforeseen difficulties in leasing, also pose risks.
Financial Upside
The company's strategy includes monitoring existing markets and evaluating new ones for rental growth. Acquisitions of apartment communities in Southern California, Northern California, and Seattle are increasing the portfolio. Co-investments and alternative capital sources are utilized for acquisitions and development. The company has access to traditional funding sources and is not at material risk of defaulting on debt obligations. Increased rental rates and decreased delinquencies are contributing to revenue growth.
