Are REITs Missing Out on Class C Rent Growth? via Multifamily Executive Magazine

The rent report cards are out. But luckily, the REITs' parents don’t have to sign them, because they mightn't like what they see: Many of the major apartment REITs are missing out on the booming effective-rent growth taking place among Class C assets, according to October 2012 data from Dallas-based research firm Axiometrics.

While most REITs remain heavily invested in Class A properties, with 47 percent being rated at B+ or higher on Axiometrics’ A++ to C- 10-point grading scale, the research shows that many firms are overlooking the rent growth of lower-rated asset classes.

In October, Class C annual effective-rent growth was at 3.9 percent, while Class A and Class B came in at 3.7 percent and 3.6 percent, respectively. While that's not a huge disparity, rents among varying asset classes are moving in different directions.

Read more...Are REITs Missing Out on Class C Rent Growth? - Reits - Multifamily Executive Magazine