January 28, 2023

South Sudan News Agency

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Inflation severely affected tenants. What about the angel?

Inflation severely affected tenants.  What about the angel?

Geography is also important. Even among the biggest owners, he saw those in the Sun Belt cities like Miami, Tampa, Nashville and Phoenix Much faster Rent growth compared to high-cost coastal markets like San Francisco, where rents have fallen dramatically during pandemic lockdowns as white-collar workers have fled to remote locations.

Mid-America apartment communities, a public circulation area Owner 101,000 units Concentrated in Georgia, Texas, Florida, and North Carolina, it has taken advantage of all of these trends. Its new tenants earn an average of $91,319 and are in their mid-30s. In the first half of the year, new and renewable leases increased 17.1 percent over their previous rates, resulting in the largest dividend increase per share in decades.

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“We are satisfied with the pricing opportunity going forward and continue to believe it is time to push the price for volume,” said Tom Grimes, the company’s chief operating officer, explaining to investors. In a quarterly earnings call He would rather raise prices than worry about turnover remaining low. “Demand is good, and our priority is to increase rents.”

It is difficult to track the finances of privately owned real estate portfolios, which can range from a few hundred to a few thousand units—medium-sized property owners, in relative terms. But interviews suggest that even if it remains profitable, higher expenses have further impacted its bottom line.

Take Swapnil Agarwal, for example, which Houston-based Nitya Capital has rapidly grown to include 20,000 units. He says insurance premiums, payroll and maintenance costs have combined to raise his expenses to $7,000 per unit this year from $5,500 in recent years.

“It’s ironic, because our net operating margins haven’t gone up – in fact, they have gone down,” Agarwal said. The picture may improve as he renews his lease contracts at market rates. “Yes, rent growth is there, but it has to continue there for some time because of rising costs,” he said.

Many medium-sized owners are also engaged in the acquisition, renovation and construction of apartments. Higher interest rates make that more difficult.