Salomon Puts Hold Rating on IAC, Predicts 12% Return
Debora Vrana covers real estate for The Times. She can be reached at (714) 966-5979 and at debora.vrana@latimes.com
Salomon Brothers Inc., the Wall Street investment banking firm, has begun coverage of the Irvine Apartment Communities Inc., with a hold rating on the real estate investment trust’s stock.
In a report, Salomon predicted a 12-month return of 12% for IAC, a publicly traded spinoff that owns and operates 48 apartment buildings once owned by the Irvine Co., Orange County’s largest landowner.
Salomon may have something there. A new report from the National Multi-Housing Council, a trade group, finds that owning a home for less than five years is more expensive than renting because of transaction costs and little change in home values.
On Thursday, IAC stock increased 50 cents per share in New York Stock Exchange trading to close at $23.375..
