Apartment Income REIT Corp (AIRC, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $5.57 billion, and its current price is $38.44, reflecting a significant 20.89% gain over the past week. Over the past three months, the stock has seen an 11.33% increase. According to GuruFocus's valuation metrics, the GF Value of AIRC is $42.66, suggesting that the stock is Modestly Undervalued. This valuation is consistent with the past GF Value of $45.27, maintaining a Modestly Undervalued status over the past three months.
Introduction to Apartment Income REIT Corp
Apartment Income REIT Corp, operating in the REITs industry, is known for its ownership of a portfolio of 75 apartment communities, which encompasses over 26,000 units. These properties are strategically located in key urban and suburban markets, including Boston, Denver, Los Angeles, Miami, Philadelphia, San Diego, San Francisco, and Washington, D.C. The company's focus on large, high-quality properties has positioned it as a significant player in the real estate investment trust sector. 
Assessing AIRC's Profitability
Apartment Income REIT Corp's profitability is robust, with a Profitability Rank of 7/10, indicating strong performance within the industry. The company's Operating Margin stands at 20.79%, surpassing the industry median and reflecting efficient management. AIRC's Return on Equity (ROE) is an impressive 28.67%, outperforming 93.84% of its peers. Additionally, the Return on Assets (ROA) at 9.90% is better than 88.4% of competitors, and the Return on Invested Capital (ROIC) at 2.63% exceeds 30.29% of the industry. With nine years of profitability over the past decade, AIRC demonstrates a higher consistency in financial performance than 78.22% of the industry. 
Growth Prospects of AIRC
The Growth Rank for Apartment Income REIT Corp is 4/10, indicating moderate growth potential. The company's 3-Year Revenue Growth Rate per Share is -2.40%, which, despite being negative, is ahead of 25% of the industry. The 5-Year Revenue Growth Rate per Share is -6.00%, surpassing 14.8% of peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 1.83%, better than 35.89% of the industry. The 3-Year EPS without NRI Growth Rate stands at a robust 39.40%, outperforming 82.1% of competitors. These figures suggest that while AIRC has faced challenges, it has managed to maintain a competitive edge in growth metrics. 
Notable Shareholders in AIRC
Among the notable shareholders of Apartment Income REIT Corp, Paul Tudor Jones (Trades, Portfolio) leads with 183,863 shares, representing a 0.13% share percentage. Following him is Jim Simons (Trades, Portfolio), holding 108,500 shares, which accounts for 0.08% of the company's shares. Jefferies Group (Trades, Portfolio) also has a stake in AIRC with 14,819 shares, equating to 0.01% share percentage. These prominent investors' involvement underscores confidence in the company's financial health and future prospects.
Competitive Landscape
When compared to its closest competitors in the REIT industry, Apartment Income REIT Corp holds a substantial market cap of $5.57 billion. Independence Realty Trust Inc (IRT, Financial) follows with a market cap of $3.63 billion, while Veris Residential Inc (VRE, Financial) and Elme Communities (ELME, Financial) have market caps of $1.4 billion and $1.29 billion, respectively. This comparison highlights AIRC's significant presence and competitive advantage in the market.
Conclusion
In summary, Apartment Income REIT Corp's stock performance and valuation indicate a company that is currently Modestly Undervalued with a positive outlook. The company's strong profitability metrics, as evidenced by its high Profitability Rank and superior ROE, ROA, and ROIC, are commendable. Although growth prospects are moderate, AIRC has demonstrated the ability to outperform a significant portion of its peers. The presence of notable shareholders and AIRC's standing among close competitors further solidify its position in the REIT industry. Investors and value seekers should consider these factors when evaluating the potential of AIRC's stock for their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
