S&P Global Market Intelligence presents a wrap-up of earnings conference calls May 3.
American Homes sees steady demand for single-family rental homes
Residential real estate investment trust American Homes 4 Rent expects steady demand for single-family rental homes in the foreseeable future on the back of the housing shortage across the US, aging millennial demographics and challenging home affordability.
The higher-for-longer interest rate scenario will continue to pressure new housing supply.
In the first quarter, American Homes delivered 469 homes to its wholly owned and joint venture portfolios. It sold 471 properties, generating about $145 million in net proceeds.
Read the call transcript.
------------------------
Regency 'opportunistic' in buying retail assets
Open-air shopping center REIT Regency Centers Corp. said it continues to be opportunistic in acquiring properties in 2024 amid increased demand.
"Although data points and deal volumes remain below historical norms, we are seeing increased activity in deeper bidding pools in the marketplace, and cap rates remain low," said Nicholas Wibbenmeyer, chief investment officer and president of west region at Regency.
The REIT raised its acquisitions guidance for 2024 to $46 million, taking into account the purchase of a 76,000-square-foot shopping center in Westport, Conn. It raised its 2024 disposition guidance by $25 million to $125 million to include the potential sale of a few noncore assets.
Read the call transcript and Dow Jones Newswires coverage.
------------------------
Camden Property: 2024 demand should be sufficient despite supply concerns
Multifamily REIT Camden Property Trust expects demand for multifamily properties in 2024 to be sufficient to accelerate rent growth for 2025 and 2026 despite current supply levels limiting rent growth in many markets.
"Demographic trends continue to be a tailwind supporting demand from high propensity to rent groups, including young adults, age 35 and under. Apartment should take a larger share of household formations, given these demand drivers," Chairman of the Board of Trust Managers and CEO Richard Campo said.
"Mortgage rates and rising home prices have kept move-out to buy homes at historic lows; 9.4% of our move-outs in the first quarter were attributed to a resident's buying a home, lowest in our history. The monthly cost of owning a home today is 61% more than leasing an apartment. This is not going to change anytime soon," Campo said.
Read the call transcript.
------------------------
Office landlord Kilroy sees green shoots in tech fundraising
Office and life science landlord Kilroy Realty Corp. is upbeat about the company's leasing prospects. On the technology fundraising environment, CEO and director Angela Aman said the company is starting to see some green shoots, which suggests capital flows are improving in the sector.
"Blue-chip tech companies are demonstrating access to capital, which bodes well for the broader tech ecosystem and ultimately for real estate requirements," Aman said.
"As it relates to life science, after record years of venture capital deployment during the height of the pandemic, the pace has decelerated to more normalized levels. That said, 2023 saw over $30 billion of activity, significantly higher than any stand-alone pre-pandemic year, and 2024 appears to be on pace for similar levels," the executive said.
Read the call transcript and Dow Jones Newswires coverage.
------------------------
Read the previous earnings calls wrap-up.
