A Lehman Brothers analyst cut his estimates for a number of apartment landlords on Wednesday, saying a slower economy and a weak job market bodes poorly for rents.
Lehman Brothers analyst David Harris cut his estimates for Post Properties Inc., Avalon Bay Communities Inc., Apartment Investment & Management Co., Camden Property Trust, UDR Inc., and Equity Residential.
These companies buy and manage apartment properties and rent apartments to tenants.
Harris expects companies in this sector to cut their profit targets because the forecasts did not anticipate the downturn in the economy.
With unemployment creeping up and the economy slowing, Harris does not expect landlords to have much leverage for charging high rents.
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