Wolfe Research Downgrades Apartment Income REIT Corp (AIRC) to Peerperform Following Acquisition

Wolfe Research analyst Andrew Rosivach downgraded Apartment Income REIT Corp (NYSE: AIRC) from Outperform to Peerperform.

The analyst comments "In this note, we downgrade Air Communities (AIRC) to Peer Perform on the back of its agreement to go private with a bid from Blackstone Real Estate (see here for the press release, and here for our initial takeaways). We estimate the transaction cap rate was 5.8% after accounting for planned capital spend and cash from dividend nonpayment, and 5.9% if we assume a debt mark to market (contact us for further detail). We think the name looked attractive for Blackstone because AIRC was particularly discounted for a multifamily REIT on an implied cap rate basis, with most of its portfolio in supply constrained coastal markets. Given that we are not expecting a topping bid ($39.12/share) and our prior price target of $40, we view AIRC as fairly valued. As a result of this, we are downgrading AIRC to Peer Perform, where we will no longer assign a price target."

For an analyst ratings summary and ratings history on Apartment Income REIT Corp click here. For more ratings news on Apartment Income REIT Corp click here.

Shares of Apartment Income REIT Corp closed at $38.44 yesterday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Downgrades Bain Capital Specialty Finance (BCSF) to Market Perform
• JPMorgan Downgrades York Space Systems (YSS) to Neutral
• ICICI Securities Downgrades Manappuram Finance Ltd (MGFL:IN) to Hold (3)