Analyst Note| Kevin Brown, CFA |
Apartment Income REIT reported first-quarter results that were in line with our expectations, leading us to reaffirm our $53 fair value estimate. Same-store occupancy stayed at 98.1% in the first quarter, matching our estimate. Rate growth for the same-store portfolio was 6.2% year over year, slightly below our estimate of 7.9% growth, leading to same-store revenue growth of 9.2% that was slightly below our 10.1% estimate. However, same-store expense growth was also lower than we anticipated with the company reporting 3.1% expense growth compared with our 4.7% estimate. As a result, same-store net operating income grew 11.7%, which was relatively in line with our 12.3% estimate for the first quarter. With portfolio NOI up double-digits in the quarter, Apartment Income REIT also reported strong pro forma funds from operations growth of 13.2% to $0.57 per share, matching our estimate for the first quarter.