EQR; residential real estate etf

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Submitted by scaredyclassic on August 21, 2020 - 10:27am

EQR is a severely beaten down real estate etf, produces rents, the landlord etf. I don't know anything about it really other than tiny bit of research and its severely depressed chart that did not get a post covid panic bounce.

"Equity Residential is a publicly traded real estate investment trust that invests in apartments.

As of December 31, 2019, the company owned or had investments in 309 properties consisting of 79,962 apartment units in Southern California, San Francisco, Washington, D.C., New York City, Boston, Seattle, and Denver.

It is the 2nd largest owner of apartments in the United States and the 10th largest apartment property manager in the United States."

the only real estate etf ive held is vanguard's vnq, which is i think largely commercial real estate.

much cleaner obviously than actual real estate, less leveraged, but seems like it might be a nice way to diversify? or perhaps to short, if you think the urban lifestyle is doomed.

i bought two shares just so i could claim im kind of a landlord. lack of trading fees is going to make more people buy a few shares of misc etfs...

Submitted by gzz on August 21, 2020 - 10:46am.

I have done value analysis on a few distressed REITs.

The only one I thought worth investing in was shorting SPG at 100, a position I've half exited.

None of the others seemed worth going long or short.

The mall and shopping center REITs have a lot of
problems, but their loans are usually only secured by individual properties, and they trade for pretty close to their liquidation value.

Without looking at that one, red flags are concentration in SF/NYC/Seattle with riots/covid/anti-landlord laws all being issues that hurt both current rent collections and future value.

"less leveraged"

That's neither good nor bad in the abstract. Lots of low rate loans locked in for 40 years? Sign me up!

Submitted by scaredyclassic on August 21, 2020 - 11:29am.

4% dividend.

why not long term? will cities really be emptied?

Submitted by The-Shoveler on August 21, 2020 - 1:29pm.

Probably much better investments out there.

Probably depends on the city and locations within the City as well. Large parts of SF have kind of turned into real sh#thole neighborhoods as I understand it, not sure if or when they be on the upswing again.

Submitted by Coronita on August 21, 2020 - 3:32pm.

S&P500 and Nasdaq at all time high .

Don't fight the irrational exuberance.

Submitted by scaredyclassic on August 21, 2020 - 4:32pm.

The-Shoveler wrote:
Probably much better investments out there.

Probably depends on the city and locations within the City as well. Large parts of SF have kind of turned into real sh#thole neighborhoods as I understand it, not sure if or when they be on the upswing again.

are there?

if people are thinking of buying a house to rent out, is that really better than buying this?

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