AEC Provides What Matters

For all the analyst pessimism; for all the downtrodden complaints about cap rates and cash flow; for all the smirks that a company would ever bother “repaying what it owes” rather than leveraging up (more); AEC once again smashed earnings.

FFO gorged itself, plus >30%. Profits swelled. The operations of this multifamily improved considerably. And their flashy new credit rating shows off those improvements.

And through it all, occupancy held 96%.

It’s time for the REIT analysts to face the music – they were wrong. They were wrong about the company. They were wrong about the profitability of AEC being hindered by a paltry few percent in cap rates. They were wrong about an Exodus of renters leaving the market.

None of those things happened.

Or you can keep your head in the sand. I’ll just keep watching FFO build at a 30% clip, add at these ridiculous prices, and take a fat payday down the road.