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Aimco (AIV) Acquires Bent Tree Apartment Community for $160M
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Apartment Investment and Management Company (AIV - Free Report) – better known as Aimco – announced the acquisition of Bent Tree apartment community in Fairfax County, VA. In the first 12 months of ownership, this $160-million deal is likely to benefit the company's adjusted funds from operations per share by about a cent.
Situated in suburban Fairfax County, the Bent Tree apartment community consists of 748-apartment homes. It is located beside two other communities owned by Aimco, having 1000-apartment homes. Bent Tree is a B-quality community with the average rent of approximately $1500 per unit. The acquisition is a strategic fit for the company, as with some capital investments, the units have the capability to generate higher than market rate revenue growth.
The transaction is in line with Aimco’s strategy of revamping its portfolio through property sales and reinvesting the proceeds in select apartment homes with higher rents, superior margins and higher-than-expected growth.
As this community is located a few minutes away from the Dulles International Airport and within traveling distance from downtown D.C., the residents are provided with opportune access to employment. In fact, onsite amenities and comfortable homes will likely hold significance for educated and high-income customers.
Aimco plans to put up for sale the same value of communities that have the probability of lower rental growth and lower expected free cash flow internal rates of return (FCF IRR), in sync with its paired trade discipline. The company expects Bent Tree’s FCF IRR to surpass the FCF IRR of the properties that will be vended to support the acquisition by minimum 300 basis points.
This acquisition was financed with bank borrowings awaiting the anticipated third-quarter sales to complete the paired trade funding.
Shares of Aimco have lost 16.5% in the past six months, compared with the decline of 15.5% recorded by the industry it belongs to.
Aimco currently carries a Zacks Rank #4 (Sell). Over the last 30 days, the Zacks Consensus Estimate for 2018 funds from operations (FFO) per share witnessed a decline of 1.2%.
Stocks That Warrant a Look
The RMR Group (RMR - Free Report) has witnessed an upward earnings estimate revision of 27.4% for 2018 in the last 60 days. Also, its shares gained 27.4% in the past six months. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for A V Homes (AVHI - Free Report) for 2018 has been revised 21% upward over the last 60 days. Also, its shares have moved up 7% in six months’ time. It flaunts a Zacks Rank #1.
Ally Financial’s (ALLY - Free Report) Zacks Consensus Estimate for 2018 has moved up 15.7% over the last 60 days. Its shares have gained 23.6% in the past six months. It carries a Zacks Rank #1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Aimco (AIV) Acquires Bent Tree Apartment Community for $160M
Apartment Investment and Management Company (AIV - Free Report) – better known as Aimco – announced the acquisition of Bent Tree apartment community in Fairfax County, VA. In the first 12 months of ownership, this $160-million deal is likely to benefit the company's adjusted funds from operations per share by about a cent.
Situated in suburban Fairfax County, the Bent Tree apartment community consists of 748-apartment homes. It is located beside two other communities owned by Aimco, having 1000-apartment homes. Bent Tree is a B-quality community with the average rent of approximately $1500 per unit. The acquisition is a strategic fit for the company, as with some capital investments, the units have the capability to generate higher than market rate revenue growth.
The transaction is in line with Aimco’s strategy of revamping its portfolio through property sales and reinvesting the proceeds in select apartment homes with higher rents, superior margins and higher-than-expected growth.
As this community is located a few minutes away from the Dulles International Airport and within traveling distance from downtown D.C., the residents are provided with opportune access to employment. In fact, onsite amenities and comfortable homes will likely hold significance for educated and high-income customers.
Aimco plans to put up for sale the same value of communities that have the probability of lower rental growth and lower expected free cash flow internal rates of return (FCF IRR), in sync with its paired trade discipline. The company expects Bent Tree’s FCF IRR to surpass the FCF IRR of the properties that will be vended to support the acquisition by minimum 300 basis points.
This acquisition was financed with bank borrowings awaiting the anticipated third-quarter sales to complete the paired trade funding.
Shares of Aimco have lost 16.5% in the past six months, compared with the decline of 15.5% recorded by the industry it belongs to.
Aimco currently carries a Zacks Rank #4 (Sell). Over the last 30 days, the Zacks Consensus Estimate for 2018 funds from operations (FFO) per share witnessed a decline of 1.2%.
Stocks That Warrant a Look
The RMR Group (RMR - Free Report) has witnessed an upward earnings estimate revision of 27.4% for 2018 in the last 60 days. Also, its shares gained 27.4% in the past six months. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for A V Homes (AVHI - Free Report) for 2018 has been revised 21% upward over the last 60 days. Also, its shares have moved up 7% in six months’ time. It flaunts a Zacks Rank #1.
Ally Financial’s (ALLY - Free Report) Zacks Consensus Estimate for 2018 has moved up 15.7% over the last 60 days. Its shares have gained 23.6% in the past six months. It carries a Zacks Rank #1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>