Apartment REITs: The Big Bull Market in Housing

Could developers faced with a glut of condominiums turn to apartments? Real estate brokerage Rock Advisors Inc. is predicting that the number of purpose-built apartments will grow in 2014 as developers look elsewhere for income. “Everything that a condominium developer does can be applied to the building of apartments,” says Derek Lobo, chief executive of Rock Advisors, in a release.

Real estate investment trusts, hampered by falling unit prices, have been squeezed out of the commercial property market over the last quarter by private investors, a new report shows. CBRE Limited, which provided an advance copy of its latest data to the Financial Post, suggests things are not going to get much better for REITs in the coming year either. “Transaction volume is expected to be sustained by pension fund/advisors and private Canadian investors as REITs and real estate operating companies take more of a back seat,” says the report.

Quepasa Corp (QPSA.OB) owns Quepasa.com, which is a best of Facebook + best of Myspace + best of Zynga social networking site for Latinos. QPSA is the only social networking pure play that is publicly traded. Quepasa.com has been gaining traffic/membership quickly, adding 17.3 million members over the last 11 months and the growth is building momentum.

Brad Case submits:Barron’s published an article Saturday by Andrew Bary providing specific buy recommendations for publicly traded REITs. Bary interviewed Craig Leupold and Mike Kirby, president and director of research, respectively, of Green Street Advisors, the leading equity analyst firm specializing in REITs. Here are some highlights:

By Brett Williams: REITs (Real Estate Investment Trusts) are a longtime favorite of many stock market investors for their typically high yields, tax-favored status, and the ability for any investor to gain an equity stake in real property. While many REITs got slaughtered during the brutal real estate crash of 2008, and many others went belly up, there have been survivors who have struggled through and may reward investors greatly in a rebounding economy.

By Michael Stubben:The apartment sector has entered the recovery phase of the commercial real estate property cycle. Declining vacancies and rising rents highlight the recovery phase and point to higher total returns for investors. The mid-term prospects for apartments are further strengthened by powerful demographic trends that will fuel demand for apartments creating strong growth in apartment rents and strong returns for investors.

Kapitall submits:The following is a list of 7 oil related stocks that have seen operating cash flows accelerate faster than net income during the most recent quarter. Since these companies are generating cash at a faster pace, it might offer an interesting starting point for your own analysis...