Sam Zell's 6 Core Markets

He’s selling everything else and concentrates on these 6 24/7 gateway cities.

Here is the latest financials

http://finance.yahoo.com/news/equity-residential-eqr-meets-q4-145802327.html

Growing rate hike market, it is tough to judge REITs as it depends on what the loan they have got. Normally, they used to get term loan 5 years for higher profitability. It is hard to visualize the future after 5 years.

Like assume we have a property which has 7 year arm at 3.25% which may increase 2% cap rate after 7 years, changeable every year with max cap rate of 10.5%. If we are 5% negative cash flow with rent now, what will be my future cash flow, profitability and growth (4%)?

In such case, the best option is to sell right now when market is good as the lock is ARM. If the same is locked low rate fixed mortgage at 3.625%, hold forever.

He is doing that exactly now.