Market Update

Hey there,

Here’s what we’re seeing in the multifamily market.

•  🔼 Activity is up dramatically for properties being offered to market. We have seen more deals come across our desk in the first 5 months of 2025 than the total number of deals in 2023 & 2024 combined. Few are debt-distressed so far.

•  ⏸ Debt rates are unchanged from 1-year ago.  

  •   The Bank of England lowered rates yesterday (5/7/25) by 25bps

  • China’s central bank cut rates today (5/8/25) by 10bps

  • US Fed held rates the same (5/7/2025)

  • Limits the appeal of refinancing.

• 🔼 Rental rates continue to climb 4% on national CPI. Our portfolio rental increases of 3.8% to 10%. Demand for our units has been very strong, with collections over 95% until April. Noticed a meaningful increase in late pays/bad debt in April.

•  🔽 CPI fell from 2.8% to 2.4% most of which came from a large decrease in energy costs, vehicle & apparel inflation was flat (stems from decreased discretionary spending). Food and shelter continue to outpace the headline inflation number.

  • This makes sense. Think about prices of groceries, they continue to be expensive. A 12-pack of Coca-Cola is now $10.99

• ✋ Below are the current prices of large publicly traded multifamily REITs along with their 52 week highs and current dividend rate. All of our properties are currently paying out at higher dividend rates than Centerspace.Below are the current prices of large publicly traded multifamily REITs along with their 52 week highs and current dividend rate. All of our properties are currently paying out at higher dividend rate than Centerspace.

Questions always welcome!

Nate & Steven
Rust Belt Capital, LLC

www.rustbeltcapital.com

_Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.