mouu007
In investment decision making, there are very few guarantees. If, however, on April 29, 2022 (when everyone still loved multifamily REITs) you got long BSR REIT’s (TSX:HOM.UN:CA, OTCPK:BSRTF) $19.55/share follow-on offering, you may now, in 4Q2023, have a new perspective certainty on the particular appeal of your investment. When BSR offered the shares in late April 2022, the multifamily REIT sector was trading at about 24x forward FFO/share and Sun Belt apartment rents were going to the moon.
S&P Global
Source: S&P Global
Fast-forward to September 29, 2023, and Sun Belt markets were expected to be squarely in the path of a multifamily supply tsunami. Rents would fall, vacancies would climb, and the sector price to FFO multiples contracted to about 14x.
S&P Global
Source: S&P Global
Your $19.55 shares were now changing hands at about $11.80 ($16.27 C$). If your enthusiasm about investing in apartments had waned,…
