superficial analysisBut anybody feel like chipping in some more thoughts and research?
As pr the latest investor presentation Avalon Bay Communities also uses a 4,5% caprate on their residential properties. But where they are very much different is that book value pr share is approx 82 usd, and it trades at 178 usd, so price book is more than 2.
H&R has a 58% residential element as I remember it. Its put in the books at a 4,5% caprate like Avalon. Now what am I missing.
Could like like a huge potential in H&R, or is Avalon using 4,5% caprate just for presentation purposes, and maybee they have them in the book at original building cost. I will look into this when I have time.
But for now, H&R looks like its not rewarded at all for residential element, with a price book at approx 0,45.