Apartment Investment and Management (AIV), mcap=$954m, price $6.25 vs $5.82

– Multi-family REIT with Class A properties in Boston, NY, Miami, etc. – markets with high barriers to construction and very high construction costs.
– Demand for rentals in these markets is expected to continue to increase ahead of supply.
– Further tailwinds from higher mortgage rates and resumption of immigration.

– Currently, AIV trades at 50% replacement cost and 70% discount to NAV.
– For 2025 assuming $145m NOI (vs $105m current run rate) from currently stabilized properties and an additional $130m of NOI from development/redevelopment projects results in the target of $33/share with a 4% cap rate.

Exp. gain: 5x to $33/share by 2025. In shorter-term, 2x to $10.4/share at 5% cap rate.

Full AIV write-up (free guest account required):

Leave a Comment