This REIT's Expansion Strategy Could Pay Big Dividends
Equity Residential (NYSE: EQR) is one of the U.S.'s largest apartment landlords. The real estate investment trust (REIT) owns more than 300 properties with over 80,000 apartment units. Most of those apartments are in major cities along the coasts, like Boston, New York, San Francisco, and Los Angeles, which benefit from steady demand and constrained supply.
While that strategy has enabled Equity Residential to grow its dividend steadily over the years, the REIT recently expanded its approach to accelerate growth. That could allow Equity Residential to deliver even higher total returns in the coming years.
Equity Residential's strategy of focusing on high-cost coastal markets has worked well over the past decade. Demand for apartments in those cities has remained strong due to healthy job markets that draw a steady stream of job seekers, who often need to rent because of high housing costs. That has helped keep occupancy levels high and rental rates rising.
Source Fool.com
