Futubull learned that as the second quarter real estate investment trust (REIT) financial reporting season drew to a close, Wells Fargo & Co adjusted its investment ratings, reflecting different expectations for residential REITs. Wells Fargo & Co analyst James Feldman made the following adjustments to the ratings of several residential REITs: Mid-America Apartment Communities Inc (MAA.US) rating was changed from 'hold' to 'buy', Camden Property Trust (CPT.US) rating was upgraded from 'shareholding' to 'hold', American Homes 4 Rent (AMH.US) also saw an upgrade from 'hold' to 'buy', while Invitation Homes (INVH.US) had its rating downgraded from 'buy' to 'shareholding'.

Feldman's upgrade of the rating for Mid-America Apartment Communities Inc was based on the expectation that the company will achieve a more stable recovery in same-store revenue growth. He anticipates that over time, supply pressure in the Sunbelt region will ease, and if demand in this area continues to outpace that of the coastal regions, the performance of Mid-America Apartment Communities Inc will continue to improve.

The rating upgrade for Camden Property Trust to 'hold' reflects market expectations for strong performance in the Washington DC, Southern California, and Florida markets, with the potential for these areas to offset potential weakness in the Sunbelt, while also expecting more active trading activity in the coming quarters.

Feldman stated in his analysis report: "Camden Property Trust's significant 13.5% net operating revenue exposure in the Washington DC area has significantly strengthened the fundamentals of its investment portfolio. Especially in Northern Virginia, the market has shown the strongest momentum in rent growth in the multi-family residential sector within Wells Fargo & Co so far."

The rating for American Homes 4 Rent was upgraded to 'buy', as this REIT focused on single-family residential leasing is seen to have significant growth potential by expanding its investment portfolio through acquisitions and development, increasing profits, and achieving operational synergies through higher density and scale.

Overall, Wells Fargo & Co holds an optimistic view on single-family residential leasing demand and expects the leasing demand for both American Homes 4 Rent and Invitation Homes to increase. However, Feldman pointed out that compared to American Homes 4 Rent, Invitation Homes faces a higher risk of investment portfolio concentration and relatively weak new leasing pricing power.

At the same time, Wall Street has an average hold rating for mid-america apartment communities inc, while the other three stocks have all received buy ratings.