Latest news with #Goldfarb
Associated Press
12-06-2025
- Business
- Associated Press
Tectonic Metals Welcomes Dr. Richard Goldfarb, Distinguished Geologist and Global Expert in Orogenic Gold Systems and Alaskan Geology to Technical Advisory Team
One of the Most Influential Figures in Economic Geology Joins Tectonic as Company Ramps Up Exploration at Flat Gold Project in Alaska VANCOUVER, BC / ACCESS Newswire / June 12, 2025 / Tectonic Metals Inc. ('Tectonic' or the 'Company') (TSXV:TECT)(OTCQB:TETOF) is honoured to announce a timely and strategic strengthening of the Company's Technical Advisory Committee with the appointment of Dr. Richard Goldfarb - one of the most respected figures in global economic geology and a leading expert on orogenic and intrusion-related gold systems, including Alaska. A respected geoscientist with more than 40 years of research and industry experience, including 35 years with the U.S. Geological Survey (USGS), Dr. Goldfarb was awarded the 2023 SEG Penrose Gold Medal, the highest honour in economic geology, recognizing his outstanding lifetime contributions to the science and practice of mineral exploration. He has authored over 250 peer-reviewed publications and led targeting and gold genesis studies for some of the world's largest gold systems across more than 30 countries, including studies of the 39 million ounce Donlin Gold Project, just 40 kilometres ('kms') from Tectonic's Flat Gold Project and located within the same mineral belt. 1 A foremost authority on the metallogeny of the North American Cordillera and Alaskan gold deposits, Dr. Goldfarb's foundational work has shaped modern exploration models, directly impacting Tectonic's strategy at Flat. Tony Reda, President and CEO of Tectonic Metals, commented, 'Rich isn't just an advisor - he's part of Alaska's geological DNA. His return is truly a homecoming. He's walked these rocks, studied deposits across these terranes, and understands, better than anyone, the immense gold potential this region holds. From research at Donlin and Flat in the 1980s and 1990s, to shaping global theories on orogenic gold formation, Rich has helped define how the modern exploration industry approaches gold discovery. Since 1981, he has studied gold systems across Alaska alongside some of the most respected academic and industry geologists - first as a USGS scientist, and more recently as a trusted consultant to exploration and mining companies. Few have contributed more to the global understanding of orogenic gold systems, and certainly none more so in Alaska. His early work helped build the very geological framework we rely on today at Flat. Collaborating with Rich is both humbling and energizing. His expertise will directly enhance our targeting, refine our models, and move us closer to unlocking the full scale of Flat's mineral endowment. His appointment is a strategic advantage as we continue to expand our technical capabilities and advance what we believe is a tier-one gold opportunity. Tectonic's Technical Advisory Committee is second to none, with globally recognized leaders in mineral exploration, structural geology, metallurgy, and mine development. Combined with our exceptional internal team, we are uniquely equipped to seize every opportunity ahead. We're deeply honoured to have such distinguished professionals guiding our mission to create transformational value for our shareholders-this year and for years to come.' Dr. Richard Goldfarb, Technical Advisor, commented: 'The direct relationship between the historic placer gold recovery and numerous prospective lode gold occurrences, as well as the scale, preservation, and geologic architecture in the Flat area suggest high favourability for significant discovery. Furthermore, the Flat project is located within the highly underexplored and prospective Kuskokwim Mineral Belt of southwestern Alaska, which hosts one of the largest undeveloped gold deposits in the world at Donlin Creek. The Flat Project exhibits all the hallmarks of a good gold system - broad mineralized zones, well-developed structural controls, and consistent geochemical and alteration signatures over several host targets in competent intrusions and adjacent hornfels. Throw in the reported exceptional metallurgical recoveries utilizing multiple mineral processing methods, including heap leach recoveries of up to 96%, further enhance its potential. Among the systems I've reviewed globally, Flat ranks well in terms of discovery potential, economic upside, and technical merit. Tectonic has assembled a highly capable team and a focused exploration strategy. I'm excited to help guide the Company as it works to unlock what could be one of Alaska's next great gold deposits.' To learn more about Tectonic's Technical Advisory Committee, please click here: A Defining Year for Tectonic Metals and the Flat Gold Project Dr. Goldfarb's appointment marks another major milestone in a year of transformative progress for Tectonic and its Flat Gold Project. Key 2025 highlights to date include: These results have set the stage for a high-impact Phase One diamond and reverse circulation drill program, which is underway now. About Dr. Richard Goldfarb Dr. Richard Goldfarb is a foremost authority on economic geology, with a career spanning over four decades dedicated to advancing the understanding of gold deposit formation and mineral exploration strategies. He holds a in Geology from Bucknell University, an in Hydrogeology from the University of Nevada - Mackay School of Mines, and a Ph.D. in Geology from the University of Colorado. Dr. Goldfarb spent 35 years with the U.S. Geological Survey (USGS), where he served as a Senior Research Geologist and led foundational research on the geology, metallogeny, and mineral potential of Alaska and the greater North American Cordillera. He is globally recognized for pioneering work on orogenic gold systems, ore genesis, and tectonic controls on mineralization, producing over 250 peer-reviewed publications and scientific papers that have shaped global exploration models. His contributions have had direct and lasting impact on exploration in Alaska, including early resource assessment work at the Flat Gold Project in the 1980s - Tectonic Metals' flagship asset - as well as major metallogenic studies at world-class deposits such as Donlin Gold. His work has provided critical frameworks for understanding the link between large-scale tectonics and gold deposition, influencing exploration decisions across the global mining sector. In recognition of his lifetime achievements, Dr. Goldfarb was awarded the 2023 Society of Economic Geologists (SEG) Penrose Gold Medal, one of the highest honours in the field of economic geology. Dr. Goldfarb currently holds appointments as a Research Professor at the Colorado School of Mines, a Distinguished Professor at the China University of Geosciences (Beijing), and an Adjunct Professor at the University of Western Australia. In addition to his academic contributions, he is a sought-after consultant to leading mining companies and provides technical guidance to governments, international agencies, and exploration companies worldwide. Dr. Goldfarb's unmatched depth of knowledge and global perspective continue to influence the next generation of exploration geologists and mineral resource strategies. The Flat Gold System - Alaska's Next Tier 1 Opportunity The Flat Gold Project spans 99,800 acres of predominantly Native-owned land belonging to Doyon Limited, one of Alaska's largest Native Regional Corporations, which has invested over $4M in Tectonic Metals, endorsing exploration on their land. Flat hosts bulk-tonnage, intrusion-related gold mineralization, comparable to the Fort Knox gold mine. It is recognized as a prime example of the direct relationship between placer gold and bedrock sources. Placer gold shed from intrusions has led to 1.4 Moz of placer gold production. Notably, the project has achieved a 100% drill success rate to date, with gold intersected in all 86 drill holes at Chicken Mountain. Tour The Flat Gold Project Tectonic invites you to take a virtual tour of our Flat Gold Project with both the CEO of Tectonic and Doyon, one of Alaska's largest for-profit Native Regional Corporations. To Be A Part of 'The Shift,' Follow Us On Social Media: X LinkedIn Instagram Facebook YouTube Qualified Person Tectonic Metals' disclosure of technical or scientific information in this press release has been reviewed, verified and approved by Peter Kleespies, Vice President of Exploration, who is a Qualified Person in accordance with Canadian regulatory requirements set out in National Instrument 43-101. On behalf of Tectonic Metals Inc., Tony Reda President and Chief Executive Officer For further information about Tectonic Metals Inc. or this news release, please visit our website at or contact Jesse Manna, Investor Relations, toll-free at 1.888.685.8558 or by email at [email protected] Cautionary Note Regarding Forward-Looking Statements Certain information in this news release constitutes forward-looking information and statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as 'may', 'should', 'anticipate', 'expect', 'intend' and similar expressions and include, but are not limited to, statements regarding the Offering, including the expected closing date and participation by certain strategic funds for the amounts described herein; the intended use of the net proceeds of the Offering, including the Company securing sufficient funds for the 2025 drill program at Alpha Bowl by the expected launch date; the potential for mineralization and planned exploration and drilling activities at Tectonic's projects, any future exploration activities and the size; the terms and closing date of the Share Consolidation, including the expected benefits for shareholders; the receipt of any regulatory approvals, including the final approval of the TSXV for the Offering and the Share Consolidation. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about the Company securing sufficient financing for its planned exploration and drilling initiatives on acceptable terms or at all, current estimates and assumptions regarding the benefits of the Share Consolidation, future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct. Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company's ability to consummate the Offering and the Share Consolidation on the terms described herein or at all; the Company's ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE: Tectonic Metals Inc. press release
Yahoo
06-06-2025
- Business
- Yahoo
G-III Finds a Way Forward, Building With Donna Karan and Boosting Q1 Earnings
Morris Goldfarb is finding new retail territory to explore as he hits the accelerator on Donna Karan and his other brands, filling the void left as licenses for Calvin Klein and Tommy Hilfiger transition back to PVH Corp. The effort is starting to pay off, even as the trade war scrambles the market and supply chains. More from WWD PVH's Weaker Profit Outlook Takes 18% Bite Out of Its Stock Jodie Comer Keeps Footwear in Step With Sculptural Silhouettes Across '28 Years Later' Appearances in New York and Paris Tommy Hilfiger Teams Up With 'F1 the Movie' on the APXGP Collection G-III Apparel Group, which Goldfarb has led for more than 50 years as chief executive officer, saw first-quarter sales fall 4 percent to $583.6 million, but made up for it on the bottom line, with earnings rising to $7.8 million, or 17 cents a diluted share, from $5.8 million, or 12 cents, a year earlier. Adjusted earnings per share rose to 19 cents from 12 cents. 'I can't control the tariffs, but it's not unique to G-III,' Goldfarb told WWD in an interview. 'It's a global issue that nobody's got their arms wrapped around.' China, which is most impacted by President Donald Trump's trade war, will represent less than 20 percent of the firm's production by the end of the year, down from nearly 90 percent several years ago. But Goldfarb said despite the tariffs, macroeconomics and some unfavorable weather, business is manageable. 'We are finding that price points are not an issue,' the CEO said. 'Our brands — Donna Karan and Karl Lagerfeld, particularly — have higher price points….They are unique, well-crafted, quality product and they're paying for it. There's no pushback at all. We're expanding the categories in Donna Karan and certainly further penetrating the categories that we've launched. We've found our way back into people like Nordstrom's and Saks and their full-price areas. Historically, we've not shipped pretty much any product from the PVH assets into full-price, Nordstrom's or Saks.' G-III, which relaunched the Donna Karan business once PVH started to withdraw, sees the potential to grow the business up to $1 billion over the long run. 'There's a world that goes beyond the current distribution that we're penetrated in,' Goldfarb said. 'It's opened up a new field for us on our own acquired brands. We will be in approximately 50 doors of Nordstrom's full-price for Donna Karan. We have no distribution in the off-price channel, which is an attraction to people like Nordstrom's and Dillard's and even Macy's. 'We like that,' he said. 'It kind of inhibits a little bit of the top-line sales, but bottom line, if you look at the margins that we're attaining, they are significantly improved over the portfolio that we managed prior.' G-III has also been strengthening its financial base. Total debt fell by 96 percent to $18.7 million after the firm redeemed $400 million in senior secured notes last year. Given the uncertainy in the back half, the company pulled its profit forecast for the year, as many other companies have. But G-III also reaffirmed its sales outlook at $3.14 billion, down slightly from $3.18 billion last year. If the tariffs put in place held at their current rates, G-III said it would have an 'unmitigated cost' of about $135 million — a number the company would look to bring down with supply chain tweaks. 'We are shifting production into different countries,' Goldfarb said. 'We're making the best of what's retained in China through price concessions from our vendor base and some increased prices for our customers, our retail customers. And we're achieving some success doing that. And I guess maybe part of the advantage we have is the new brands that don't have established price points. We're not raising prices, we're establishing price points that work with reasonable margins. 'We're doing well and building market share and delivering the most amazing product on the floor,' he said. 'Those are good formulas for the future. And as we stabilize pricing, as our retailers and our customers and consumers get acclimated to our price points and the industry's price points, we will do well. I have no doubt that we'll do well. It might be a hiccup for a quarter, but it all goes away as the world levels out.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
Boston Globe
19-05-2025
- Politics
- Boston Globe
Ronald Goldfarb, legal reformer who battled Mafia for RFK, dies at 91
Many of his nearly a dozen books stemmed from work done by his Washington law firm, which specialized in public interest cases, taking on subjects such as farm laborer rights in 'Migrant Farm Workers: A Caste of Despair' (1981) and the penal system in 'After Conviction: A Review of the American Correction System' (1973), written with law partner Linda Singer. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Following the leaks of National Security Agency files by contractor Edward Snowden in 2013, Mr. Goldfarb edited essays from policy experts and ethicists for the 2015 book 'After Snowden: Privacy, Secrecy and Security in the Information Age.' Advertisement 'National security and constitutional liberty are not an either-or proposition,' Mr. Goldfarb said at the Miami Book Fair that year, 'but we have to strike an exquisite balance.' His time in the Justice Department under Attorney General Robert F. Kennedy also came to represent competing priorities, he contended. Mr. Goldfarb was recruited in 1961 and assigned to the Organized Crime and Racketeering Section — a once tiny unit that grew to more than 70 members under RFK. Advertisement Meanwhile, President John F. Kennedy had ordered an all-out effort to depose Cuban leader Fidel Castro after the calamitous Bay of Pigs invasion in 1961. The anti-Castro plans, overseen by Robert Kennedy, included the CIA seeking possible hit men among mobsters, who were eager to bring back their gambling operations in Cuba, according to later disclosures by congressional investigations and leaked documents. 'They thought they could burn their candle at both ends, and both work with the Mafia at the same time that we were harassing them, and prosecuting them, and investigating them and making their lives miserable,' Mr. Goldfarb told an audience in Alexandria, Va., in 2002. This double standard became one of subplots in Mr. Goldfarb's 'Perfect Villains, Imperfect Heroes: Robert F. Kennedy's War Against Organized Crime' (1995), a part memoir and part analysis of RFK's single-minded drive to mobilize federal law enforcement agencies against the Cosa Nostra and others. Mr. Goldfarb's path to the Justice Department began with a chance meeting. He had come to Washington to pay a social visit to Supreme Court Justice Hugo Black. On the way, Mr. Goldfarb stopped to see a law school friend, who introduced him to a recruiter for RFK's team. His pitch to Mr. Goldfarb was direct: Toss out your plans to go into academia and stay in the courtroom. Mr. Goldfarb had served in the Judge Advocate General's Corps, or JAG Corps, in the Air Force defending airmen in court-martial hearings and other cases. 'And I ended up in the 'New Frontier,'' he said, using a term coined to describe the youthful President Kennedy and his policies. Advertisement Mr. Goldfarb, however, was initially wary of RFK over his past work. In the early 1950s, Robert Kennedy was assistant counsel for the 'Red Scare' subcommittee led by Senator Joseph McCarthy, a Wisconsin Republican, that waged career-crushing inquests into suspected communist sympathizers. 'I just thought, like other people, that he was brash, and a bully, and that it was strictly nepotism that he was made attorney general,' Mr. Goldfarb told the Washington City Paper. But he soon began to admire Robert Kennedy's uncompromising style, he said. Mr. Goldfarb was sent to Newport, Ky., a Cincinnati suburb he described as a 'classic sin city' that at the time was notorious for its political corruption and mob-run vice. Mr. Goldfarb aided in investigations that led to the conviction of nearly the entire Newport city government and dozens of others. He also worked closely with the county's reform-minded sheriff, George Ratterman, a former professional football player who had been drugged and photographed in bed with a stripper in a blackmail attempt during the campaign for sheriff in 1961. The caper was exposed and Ratterman surged to victory. The crime syndicates in northern Kentucky eventually moved out. In his book, Mr. Goldfarb adopted much of RFK's views that organized crime was a direct threat to the rule of law and confidence in the political system. 'These were predators, often totally asocial animals, who preyed on society, had no socially redeeming ends, who used the vilest means to get their way, and whose actions, if unchecked, would lead to anarchy,' he wrote. 'They were perfect villains.' Advertisement Yet Mr. Goldfarb also recounted RFK's shortcomings, which included an obsessive pursuit of Teamster boss Jimmy Hoffa. Hoffa was convicted in 1964 of jury tampering and other charges and began serving a 13-year sentence in 1967. (The sentence was commuted in 1971 by President Richard M. Nixon and Hoffa was last seen in 1975, but details of his presumed slaying remained unsolved.) On Nov. 22, 1963, Mr. Goldfarb was part of a meeting with Robert Kennedy that ended shortly before lunch. About an hour later, news broke that President Kennedy had been shot while his motorcade drove through Dallas. For decades, Mr. Goldfarb staked out a position at odds with the Warren Commission's conclusion that the gunman, Lee Harvey Oswald, acted alone in a self-hatched plot. In his book and later articles, Mr. Goldfarb left open the possibility that organized crime bosses — angered by RFK's crusading fervor — had a hand in planning the JFK assassination. 'The most compelling evidence concerns conversations among leading organized crime figures in 1962 and 1963 who were outraged by [Robert] Kennedy's crusade against them,' Mr. Goldfarb wrote in a 1995 opinion piece in The Washington Post. 'There was a conspiracy to kill the attorney general; there is ominous evidence that they switched their wrath to the president.' His stance brought some derision from book reviewers even as his profile was raised among JFK conspiracy theorists. Mr. Goldfarb remained unmoved but conceded that too much time had passed to either validate or debunk his speculation. 'There is a haunting credibility to the theory that our organized crime drive prompted a plan to strike back at the Kennedy brothers,' he wrote, 'and that Robert Kennedy went to his grave at least wondering whether — and perhaps believing — there was a real connection between the plan and his brother's assassination.' Advertisement Ronald Lawrence Goldfarb was born in Jersey City on Oct. 16, 1933, and was raised in North Bergen. His father was a building manager, and his mother cared for their home. At Syracuse University, Mr. Goldfarb was part of a law-school-track program, finishing his undergraduate studies in 1954 and receiving a law degree in 1956. After serving in the Air Force JAG Corps for three years, he enrolled at Yale Law School for advanced legal degrees. Robert Kennedy resigned as attorney general in September 1964, and Mr. Goldfarb joined him as speechwriter in a long-shot — but ultimately successful — run for US Senate in New York, defeating the incumbent Republican, Kenneth Keating, that November. 'My personal contacts with him, especially after his brother was killed, showed him to be a very tortured human being feeling very human things and not at all the machinelike person that he was depicted as,' Mr. Goldfarb said in a 1981 oral history for the John F. Kennedy Library. Mr. Goldfarb formed his law practice, Goldfarb & Associates, in 1966. Two years later, as Kennedy campaigned in the Democratic presidential primaries, Mr. Goldfarb planned to seek a seat as a New Jersey delegate for Kennedy at the Democratic National Convention in Chicago. 'And before I could do anything,' Mr. Goldfarb recalled, 'he was killed.' Kennedy was shot on June 5, 1968, as he was leaving the Ambassador Hotel in Los Angeles, shortly after winning California's Democratic presidential primary. He died the next day. The gunman, Sirhan Sirhan, remains in prison. Advertisement Mr. Goldfarb's other books include 'The Contempt Power' (1963) about use of contempt of court provisions; 'Ransom: A Critique of the American Bail System' (1966) and 'TV or Not TV: Television, Justice, and the Courts' (1998). As a documentary producer, he helped develop 'Desperate Hours' (2001), an account of Turkey's role in rescuing Jewish refugees during the Holocaust, directed by Victoria Barrett. Survivors include his wife of 68 years, Joanne Jacob Goldfarb; sons Nick and Matt; daughter Jody; and seven grandchildren. In 1963, the Mississippi governor, Ross R. Barnett, was charged with federal criminal contempt for obstructing court orders to desegregate the University of Mississippi. Barnett's supporters in Congress cited passages from Mr. Goldfarb's book 'The Contempt Power' to claim judicial overreach. Mr. Goldfarb was so troubled that he asked for a meeting with Robert Kennedy to apologize. Kennedy listened and then asked Mr. Goldfarb to sign a copy of his book. (The charges against Barnett were dropped years later.) 'Instead of it being a heavy moment where conceivably he was going to ask for my resignation,' he recalled in the 1981 oral history, 'it converted into an act of friendship.'
NBC News
09-05-2025
- Business
- NBC News
Something 'striking' is happening with apartment renters
Renting has its benefits. It's usually cheaper than buying a home, and it offers the freedom of moving without much hassle. That's why about half of apartment renters in large urban markets usually move when their leases expire. But that is not happening now. The low turnover is 'striking,' according to real estate analyst Alex Goldfarb at Piper Sandler. He said some of the largest landlords are seeing turnover at just 30% compared with the industry norm of 50%. He cited reasons including an unaffordable for-sale market, lack of rental supply on the coasts, nervousness about the economy and tariffs, the cost of moving and a shift to suburban apartments, which tend to be larger and more comfortable. 'The consequence is landlords are getting better pricing from renewals, as people don't want to leave,' said Goldfarb. 'It also improves [their] cash flow, because of lower turnover costs.' Those costs would include repairs, painting and cleaning. As a result, in the multifamily REIT sector, Goldfarb likes Essex Property Trust, with its large West Coast footprint. Equity Residential also benefits from that regional presence. He noted the rebounds of San Francisco and Seattle, driven by artificial intelligence and tech companies like Amazon issuing return to office mandates, have helped real estate. He's neutral on the Sunbelt, which had been a hot pandemic play. Names like Camden Property Trust and Mid-America Apartment Communities had strong performances in the first quarter of this year, but could be hit hardest if there is a recession that leads to job losses. As for the overall multifamily market, after declines last year due to record levels of new supply, rents are now coming back, up 0.9% year over year in the first quarter, according to CBRE. That is thanks to the strongest positive net absorption, or the change in the number of occupied units, since 2000 and more than triple the pre-pandemic first quarter average. It marks the fourth consecutive quarter in which demand surpassed new construction completions, and that pushed the multifamily vacancy rate down to 4.8%, below its long term average of 5%. 'The first drop in vacant units in more than two years signals a crucial turning point in the multifamily sector,' said Kelli Carhart, leader of multifamily capital markets for CBRE. 'This boost will lead to increased investment activity in 2025 as improving fundamentals continue to drive investor confidence capital deployment.'
CNBC
09-05-2025
- Business
- CNBC
Something 'striking' is happening with apartment renters
Renting has its benefits. It's usually cheaper than buying a home, and it offers the freedom of moving without much hassle. That's why about half of apartment renters in large urban markets usually move when their leases expire. But that is not happening now. The low turnover is "striking," according to real estate analyst Alex Goldfarb at Piper Sandler. He said some of the largest landlords are seeing turnover at just 30% compared with the industry norm of 50%. He cited reasons including an unaffordable for-sale market, lack of rental supply on the coasts, nervousness about the economy and tariffs, the cost of moving and a shift to suburban apartments, which tend to be larger and more comfortable. "The consequence is landlords are getting better pricing from renewals, as people don't want to leave," said Goldfarb. "It also improves [their] cash flow, because of lower turnover costs." Those costs would include repairs, painting and cleaning. As a result, in the multifamily REIT sector, Goldfarb likes Essex Property Trust, with its large West Coast footprint. Equity Residential also benefits from that regional presence. He noted the rebounds of San Francisco and Seattle, driven by artificial intelligence and tech companies like Amazon issuing return to office mandates, have helped real estate. He's neutral on the Sunbelt, which had been a hot pandemic play. Names like Camden Property Trust and Mid-America Apartment Communities had strong performances in the first quarter of this year, but could be hit hardest if there is a recession that leads to job losses. As for the overall multifamily market, after declines last year due to record levels of new supply, rents are now coming back, up 0.9% year over year in the first quarter, according to CBRE. That is thanks to the strongest positive net absorption, or the change in the number of occupied units, since 2000 and more than triple the pre-pandemic first quarter average. It marks the fourth consecutive quarter in which demand surpassed new construction completions, and that pushed the multifamily vacancy rate down to 4.8%, below its long term average of 5%. "The first drop in vacant units in more than two years signals a crucial turning point in the multifamily sector," said Kelli Carhart, leader of multifamily capital markets for CBRE. "This boost will lead to increased investment activity in 2025 as improving fundamentals continue to drive investor confidence capital deployment."
