| Q1 rocked for two Chicago REITs. In their respective earnings calls late last week, Equity Residential CEO David Neithercut said EQR acquired two assets valued at $139M this past quarter, and First Industrial CEO Bruce Duncan said FR's in the late innings of a deleveraging. | |||
| In addition to the Pegasus apartment complex EQR just bought in LA, it scooped up 225 units in Fort Lauderdale and 296 units in Boston's Back Bay. (Not hard to guess which one they'll winter in.) It sold 12 assets valued at $262M and reported apartment cap rates of 4.5%. David also said it's a great time to be an apartment owner given renewals trending up as young people decide not to buy. EQR's portfolio occupancy was up 20 bps to 95% in Q1. | |||
| Meanwhile, First Industrial continued to dispose of non-performing assets, letting go of 700k SF at $27/SF last quarter in Wichita, Detroit, and suburban Denver, among others. The company took strides in reducing its debt to EBITDA ratio, getting it down to 7.9 from 8.3 last quarter (the goal is 6.5 to 7.5). It also sublet two-thirds of its Chicago office at 311 S Wacker and moved some employees to a suburban office. Above is a building that it owns in Bedford Park. For the first time in years, the company is considering acquiring again, if it can find an appropriate asset. | |||
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Bedford Park, Bruce Duncan, David Neithercut, Equity Residential CEO, First Industrial CEO
