Real estate investment trusts (REITs) have long been a popular option for investors looking for a reliable source of passive income. One of the most notable REITs on the market today is Apartment Income REIT, which opened at $35.16 on Monday.
Apartment Income REIT boasts a debt-to-equity ratio of 1.40, indicating that the company relies more heavily on debt financing compared to equity financing. Its quick ratio and current ratio are both at 0.33, suggesting that it will have difficulties paying off its short-term obligations using its current assets without having to sell its inventory or take out new loans.
Despite these numbers, Apartment Income REIT is still viewed as promising by industry analysts with a consensus rating of “Moderate Buy.” This verdict may be attributed to its market capitalization of $5.24 billion and price-to-earnings ratio of 6.03, both of which are relatively impressive given the current climate.
Other researchers have also upgraded their outlook on the company recently. BMO Capital Markets upgraded from an “underperform” rating to “market perform,” while Mizuho initiated coverage at a “buy” rating and increased their target price from $41 to $45 in February.
While it may not be completely out of the woods yet, Apartment Income REIT’s strong performance has helped convince several hedge funds and institutional investors to increase their stakes in the company over recent months.
Ellevest Inc., Private Trust Co. NA, and Wipfli Financial Advisors LLC are just these few companies that have invested further in this promising real estate investment trust.
Given everything said above, it may be worth adding Apartment Income REIT to your portfolio if you’re looking for options related to rental properties. Nevertheless, keep in mind that any type of investing carries risks and unforeseen events can influence even the steadiest trends in markets like those involving real estate.Jefferies Financial Group’s Positive Earnings Estimate for Apartment Income REIT Corp Signals Growth Potential
Apartment Income REIT Corp., traded publicly under the ticker symbol NYSE:AIRC, has recently received a positive earnings per share estimate from leading financial institution, Jefferies Financial Group. In a note issued to investors on Friday, April 14th, Jefferies analyst J. Petersen predicts that the company will earn an impressive $0.61 per share for Q3 2023; up from their previous estimate of $0.60.
The consensus estimate for Apartment Income REIT’s current full-year earnings is also healthy standing at a promising $2.42 per share. On top of this, Jefferies Financial Group also issued estimates for Apartment Income REIT’s FY2024 earnings at $2.56 EPS and FY2026 earnings at $2.70 EPS.
Institutional investors and hedge funds continue to back the business with Ellevest Inc., Private Trust Co., NA, Bessemer Group Inc., Wipfli Financial Advisors LLC and First Manhattan Co adding or reducing their stakes in recent months. As it currently stands, a remarkable 99.35% of the stock is owned by institutional investors.
Apartment Income REIT announced its quarterly dividend on Tuesday, February 28th which was paid on that date to shareholders of record as of Friday, February 17th who were each given a $0.45 dividend. This equates to an annualized basis of $1.80 and a dividend yield of 5.12%. The ex-dividend date was Thursday, February 16th and Apartment Income REIT’s dividend payout ratio currently sits at 30.87%.
Director Devin Ignatius Murphy made notable purchases in March when he purchased two lots of shares amounting to 2,500 each time who were acquired at an average cost price of $34 per share coming to a total value of $85k each transaction costing him over quarter of a million dollars. Following the completion of the purchase, he now directly owns 11,386 shares in the company, which are currently valued at approximately $387,124. Company insider Keith M. Kimmel sold 8,000 shares of the business’s stock in March at an average price per share of $35.75 translating to a sum value of $286k; following the sale he owned 34,345 shares within Apartment Income REIT which are valued at $1.2m.
The future for Apartment Income REIT Corp certainly looks promising with its strong earnings per share estimates and a growing support from influential shareholders. The recent purchases by both director and insiders give a positive indication that they too believe in the growth potential of this thriving real estate investment trust corporation.
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