More Analysts Ask About REITs' Rent-to-Income Ratios 

Investors and analysts are becoming increasingly interested in the rent-to-income ratio for residents at publically traded apartment management companies such as MAA, according to David Nischwitz, MAA’s Senior Vice President, Director of Property Redevelopment.

“When listening to several of our competitor’s Q2 quarterly calls with analysts as well as our Q2 call, there seemed to be a fair amount of interest in understanding the change to rent-to-income ratio over the last few months,” Nischwitz says.

“These analysts were curious because they wanted to gauge renter’s capacity for further rent increases and what each company’s perspective was on when that ratio reaches a concerning level to either cause changes to pricing or changes to renter profile within a given property.”

Nischwitz says MAA expects 2011 revenue growth for the full year to range from 5 percent to 6 percent.

“We believe the fundamentals will continue to improve in 2012 for the multifamily housing industry, but are unable to put any specific data points to that growth until later this year.” – NAA’s Paul Bergeron

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