Here is how I see the fair value of this stock. During the bubble, apartment properties traded for 5-6% cap rates. A normalized cap rate for core apartment properties is 8%. AEC is currently trading at an implied 10.6% cap rate. Let's be conservative and use a 9% cap rate given AEC's properties are located in secondary markets. This would result in a fair value equity price of $13.58. Another way to look at valuation...the current share price equates to a total market value per unit of only $53,434!!! Below is the analysis for anyone that cares:

NOI (Q1:09) $18,694

Debt $553,948
Preferred $48,263
Non-controlling $1,829
Total Debt (sum of the above) $604,040
Common Shares 16,699


Number of Units 13,192


Cap Rate 9.0%
Real Estate Value (Annualized NOI / Cap Rate) $830,844
Equity Value (RE Value - Total Debt) $226,804
FV Share Price (Equity Value / # Common Shares) $13.58

Actual Share Price $6.04
Implied Cap 10.6%
Implied Total Value $704,902
Implied Total Value/Unit $53,434