The Nation's 50 Largest Apartment Owners and 50 Largest ...

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ApArtMeNt MANAGeMeNt by tier 3,000 2,500 Top 10 Top 25 Top 50 2,776.0 Hunt Companies, Inc. registered the largest portfolio gain, adding 16,489 units. Five other firms also had portfolio gains of more 2,000 1,925.6 than 8,000 units. The Related Companies made the biggest jump in the rankings, up 13 2,000 slots to No. 23. Berkshire Property Advisors 1,156.3 also made a double-digit move, climbing 1,500 10 places to the No. 40 position. Overall, 1,000 firms on this year’s management list added a combined 61,628 apartments to their portfo- 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 lios, as 34 companies grew compared to the 16 firms that shed assets. The total number of apartments managed by the Top 50 companies is the highest on record. The share of the entire in the South Atlantic region and 64 percent have properties apartment stock under management by the NMHC 50 rose in New England while each of the other seven regions has to 15.8 percent, also a new high. Both the mean and the properties owned by 78 percent to 86 percent of the firms on median rose and set new all-time highs. The minimum size the NMHC 50 ownership list. needed to make it into the Top 50 edged down a bit from last year’s record, but at 27,573 units is still the second-highest Apartment Managers threshold since the rankings began. Stability was the theme at the top of the NMHC manage- Concentration trends were mixed last year. The portment list. For the fourth consecutive year, the same firms folios of the 10 largest firms make up 41.7 percent of the made up the Top 10. Greystar Real Estate Partners LLC Top 50, down from 43 percent last year—the group’s lowest share remains in the top spot for the second straight year, while in 18 years. Apartments managed by the next 10 firms (No. Riverstone Residential Group kept its second place ranking. 11 through No. 20 in the rankings) rose to 19.7 percent from Lincoln Property Company (No. 3) and Pinnacle Family 18.6 percent a year ago. The percentage marks a sizable share but of Companies (No. 4) switched places—the only ranking is below 2005’s high-water mark of 20.8 percent. change among the Top 10. All of the Top 50 firms manage market-rate apartments. There were five new firms on the management list In addition, 32 companies have Low-Income Housing Tax this year, two of which debuted in the Top 20. Apartment Credit (LIHTC) properties in their portfolios—and of those, Management Consultants LLC (No. 12) was a first-time 19 also manage non-LIHTC affordable properties. Eighteen survey respondent, while Hunt Companies, Inc. (No. 17) firms have senior housing apartments under management, consolidated its reporting, including former Top 50 manager although only Pinnacle Family of Companies has more than LEDIC under its umbrella this year. The other newcom- 20,000 such units. The South Atlantic region is home to properers—Weidner Apartment Homes (No. 43), Harbor Group ties from 44 of the Top 50 managers, the most of any region. At International (No. 48) and Orion Real Estate Services Inc. the other end of the spectrum, 23 of the Top 50 manage proper- (No. 50)—rode portfolio increases to a Top 50 ranking. ties in the New England region. Units (thousands) ApArtMeNt MANAGers Largest portfolio Growth Apartments Hunt Companies, Inc. + 16,489 Weidner Apartment Homes + 11,043 Lincoln Property Company + 10,608 The Related Companies + 9,850 Alliance Residential Company + 8,432 Riverstone Residential Group + 8,159 A sPECIAL sUPPLEmEnT To nATIonAL REAL EsTATE InvEsToR Moving Up in rank slots The Related Companies + 13 Berkshire Property Advisors + 10 Essex Property Trust, Inc. + 8 The Lynd Company + 6 Forest City Residential Group, Inc. + 5 14 NMHC 50 APRIL 2012
NMHC 50 MaNagers Number of apartments Managed 2012 2011 2010 2009 2008 2007 2006 Top 10 1,156,335 1,171,167 1,195,881 1,224,042 1,194,108 1,106,880 1,051,603 Second 10 547,805 505,197 496,740 487,528 523,614 498,472 469,786 Top 25 1,925,592 1,885,014 1,890,933 1,915,170 1,930,162 1,810,315 1,703,865 Second 25 850,453 837,880 798,786 754,002 797,946 770,885 680,091 Top 50 2,776,045 2,722,894 2,689,719 2,669,172 2,728,108 2,581,200 2,383,956 Portfolio size Measures Mean 55,521 54,458 53,794 53,383 54,562 51,624 47,679 Median 41,774 39,788 37,767 37,871 40,578 40,010 33,150 No. 1 firm 192,711 187,360 183,877 185,219 195,888 209,412 197,774 No. 50 firm 27,573 28,085 26,845 23,730 25,852 25,277 22,500 share of National apartment stock Top 10 6.6% 6.7% 6.9% 7.0% 6.9% 6.4% 6.0% Top 25 11.0% 10.8% 10.9% 11.0% 11.1% 10.4% 9.7% Top 50 15.8% 15.6% 15.5% 15.3% 15.7% 14.8% 13.6% MetHodology A SpeciAl SuppleMeNT To NATioNAl reAl eSTATe iNveSTor The National Multi Housing Council (NMHC) partnered with Kingsley Associates to handle the NMHC 50 survey process (though NMHC remains solely responsible for any errors). To compile the NMHC 50 lists, both organizations gather names of owners and managers from as wide a range of sources as possible, and staff from each firm complete the survey online. Over the years, improved outreach and increased publicity associated with the rankings have resulted in more firms responding to the survey. For the purposes of this survey, investment fund managers are treated as owners only if they retain substantial equity in the apartment property or if they maintain effective responsibility and decision-making over the investment property. Similarly, tax credit syndicators and franchisers are regarded as owners only if they retain a fiduciary responsibility. (When firms function strictly as advisers rather than investors, they are not regarded as owners.) The rankings do not distinguish between partial and full ownership. Some firms own sizable apartment properties through joint ventures in which their share could range anywhere from 1 to 99 percent. Others are primarily the sole owners of their apartments. In principle, it would be desirable to account for partial ownership—treating 50 percent ownership of 100 apartments as equivalent to full ownership of 50 units, for example. In practice, it is not feasible to make such distinctions. The survey excludes condominiums, cooperatives, hotel rooms, nursing homes, hospital rooms, mobile homes and houses with rental units. Rental housing for seniors (age-restricted apartments) is included, although assisted living and congregate care facilities are not. Finally, since we measure industry concentration by comparing the Top 50 owners and managers against the nation’s entire apartment stock, only U.S. apartments are included. At times, a firm may debut on the NMHC 50 at a high level. Generally, this means the firm is responding to the survey for the first time, rather than an indication of an outsized portfolio gain—although that, too, happens on occasion. Nonetheless, despite many improvements and everyone’s best efforts, the process remains imperfect: It relies on both accurate reporting and surveying of the complete universe, both of which can be fraught with problems. There are two caveats in comparing the lists over time. First, the definition was refined in 2006 to eliminate those investment fund managers with neither substantial equity nor effective control over the investment property. Second, occasionally firms that have previously been among the Top 50 owners or managers have not responded to the NMHC survey. When that occurs, companies appear on the list that otherwise might not have been large enough. In addition, this affects the total number of apartments owned by the Top 50 firms, as well as other measures of concentration such as the mean and median portfolio size. (Note that this did not affect the management list.) For these reasons, year-to-year comparisons must be made with great care. Note: In some cases, newly introduced policies prohibited firms from sharing the kind of information needed for these rankings. April 2012 NMHC 50 15
Page 1 and 2: A SPECIAL SUPPLEMENT TO NATIONAL RE
Page 3 and 4: Delivered through a leading team of
Page 10 and 11: Top Apartment Firms Strategically P
Page 12 and 13: were up by almost five percent in 2
Page 14: 2011. Hunt Companies, Inc. had the
Page 19 and 20: April 2012 A speciAl A speciAl supp
Page 21 and 22: A speciAl A speciAl supplement to n
Page 24 and 25: RAISING EQUITY + SUPPORTING AFFORDA
Page 26 and 27: company plans to start construction
Page 28 and 29: Top 25 Apartment Buyers and Sellers
Page 30 and 31: NMHC Officers 2012 Chairman Thomas
Page 32 and 33: Executive Committee Eli Hanacek Hol
Page 34 and 35: Board of Directors Jeffery Daniels
Page 36 and 37: Board of Directors John M. O’Hara
Page 38 and 39: Board of Directors Joe Colon Protec
Page 40 and 41: Board of Directors (not pictured) E
Page 43 and 44: Advisory Committee Advenir Taylor R
Page 45 and 46: Advisory Committee Haley Real Estat
Page 47 and 48: Advisory Committee Merion Realty Pa
Page 49 and 50: Advisory Committee Shelter Corporat
Page 51: SMARTER YARDI VOYAGER End-to-end p

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