Why are apartment REITs struggling with acquisitions in late 2025?

Apartment REITs face acquisition challenges due to private market valuations exceeding public market values, increasing capital costs.

Which apartment REITs are selling assets in the current market?

Some smaller REITs, like Centerspace, are evaluating portfolio sales, and AIMCO has decided to liquidate its assets.

What were AvalonBay Communities' recent Q3 2025 transactions?

AvalonBay Communities acquired three properties and sold six communities totaling 1,594 units in Q3 2025.

Home / Business and Economy / REITs Navigate Public vs. Private Value Gap

REITs Navigate Public vs. Private Value Gap

21 Nov

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Summary

Some REITs are considering portfolio sales due to market value disparities.
Public REITs find it harder to acquire new properties at current prices.
AvalonBay Communities made significant Q3 acquisitions and dispositions.

REITs Navigate Public vs. Private Value Gap

Apartment REITs are currently facing significant headwinds as private market valuations for real estate outpace public markets. This valuation gap is prompting some smaller firms to explore portfolio sales, with entities like AIMCO opting for complete asset liquidation. Larger REITs, while less likely to sell entirely, are finding it increasingly challenging to pursue new acquisitions due to these market conditions.

Executives from major REITs, such as MAA's CEO Brad Hill, have expressed caution, indicating that current capital costs make acquisitions at prevailing prices unfeasible. This sentiment is reflected in revised financial guidance, with some REITs lowering their acquisition projections. For example, Equity Residential adjusted its full-year guidance for both acquisitions and dispositions, highlighting a selective approach to new investments.