Scotiabank analyst names top pick among apartment REITs

Scotiabank analyst Mario Sarin highlights Killam Apartment REIT as his only 'sector outperform' while Rentals.ca data showed smaller month-over-month rent declines in December compared with November.

Scotiabank analyst Mario Sarin provided an update on the apartment REIT sector, citing December Rentals.ca data and a seasonally slow Q4 and Q1 ahead of the spring leasing season. The roundup also includes strategist commentary on recent Department of Justice scrutiny tied to the Federal Reserve and a separate precious-metals note from Citi. The pieces are discussed together as part of a daily market research roundup that covers housing, rates and commodity themes. The reports frame near-term sentiment drivers rather than definitive market moves. Key points: - Rentals.ca December data showed smaller month-over-month rent declines versus November: average 2‑bed asking rents fell 0.6% m/m (vs. 1.8% in November) and average 1‑bed fell 0.7% m/m (vs. 1.4% in November); national apartment rent fell 0.5% m/m (vs. 1.2% in November). - The article says BEI benefited from 1‑bed m/m growth in Edmonton and Montreal, with Halifax performing better than Ottawa, Toronto or Vancouver. - Scotiabank's view was described as 'Neutral' for the sector through the seasonally slow period, and the article mentions Killam Apartment REIT (KMP-T) as the firm's only 'sector outperform' rating. - BofA strategist Meghan Swiber reported that markets were relatively muted after DOJ scrutiny related to Fed testimony, with a modest bear steepening of the UST curve and the U.S. dollar weaker by about 0.3%; the piece notes positioning for a steeper UST curve and higher breakeven inflation. - Citi analyst Kenny Hu expects silver to outperform gold in the near term and is quoted with 0–3 month targets of $5,000/oz for gold and $100/oz for silver, citing geopolitical risks and market shortages. Summary: Apartment REIT rent data and analyst updates suggest a softer but less severe rent decline in December, and Scotiabank's sector view is cautious ahead of spring leasing. Market reaction to DOJ-related Fed scrutiny was muted, and the implications for policy and markets are undetermined at this time.