When evaluating potential acquisitions, we consider a wide variety of factors, including, but not limited to:
We regularly monitor our assets to increase the quality and performance of our portfolio. Factors we consider in deciding whether to dispose of a property include, but not limited to:
We are focused on increasing our presence in markets with favorable job formation and income growth, high propensity to rent, strong relative affordability for rental versus homeownership, and a favorable demand/supply ratio for multifamily housing. Portfolio investment decisions consider internal analyses and third-party research.
Acquisitions and Dispositions
When evaluating potential acquisitions, we consider a wide variety of factors, including, but not limited to:
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high long-term working age population growth, relatively robust rental versus single-family home affordability, measured long-term new supply growth, overall potential for strong total income growth;
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the tax and regulatory environment of the market in which the property is located;
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geographic location, including proximity to jobs, entertainment, transportation, and our existing communities which can deliver significant economies of scale;
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our climate assessments for the market and sub-market in which the property is located;
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construction quality, condition, design and sustainability features of, or the potential to implement sustainability initiatives at, the property;
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current and projected cash flow of the property and the ability to increase cash flow;
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ability of the property’s projected returns to exceed our cost of capital;
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potential for capital appreciation of the property;
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ability to increase the value and profitability of the property through operations and redevelopment;
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terms of resident leases, including the potential for rent increases;
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occupancy and demand by residents for properties of a similar type in the vicinity;
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prospects for liquidity through sale, financing or refinancing of the property; and
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competition from existing multifamily communities and the potential for the construction of new multifamily properties in the area.
We regularly monitor our assets to increase the quality and performance of our portfolio. Factors we consider in deciding whether to dispose of a property include, but not limited to:
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current market price for an asset compared to projected economics for that asset;
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whether it is in a market targeted for divestment or a reduction in investment;
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potential increases in new construction in the market area;
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areas with low long-term job growth prospects;
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near- and long-term capital expenditure needs for the asset; and
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operating efficiencies.
We are focused on increasing our presence in markets with favorable job formation and income growth, high propensity to rent, strong relative affordability for rental versus homeownership, and a favorable demand/supply ratio for multifamily housing. Portfolio investment decisions consider internal analyses and third-party research.