Some warning signs have begun to flash on multifamily rents. December was the fourth straight month-over-month decline, according to ApartmentList and even in the Sun Belt — one of the major hotbeds of activity — apartment rents have been cooling.

Now BTIG's latest report on apartment REITs raises more concern.

"Despite the positive same-store results throughout 2022, Apartment REITs underperformed the REIT peer group by 1140 bps during the fourth quarter. The group finished 2022 down 33.2% on a TR basis compared to the down 25.0% returns for the broader REIT space. The underperformance was in spite of 5.9% dividend growth in 2022, as well as the additional 300 bps of FFO/sh growth estimated for Apartments relative to REITs overall."

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