About two years ago, multifamily real estate investment trusts were trading at all-time high valuation spread to the REIT industry on an adjusted funds from operation (AFFO) basis.

However, that relationship has reversed, with multifamily AFFO multiples below the REIT industry average for the first time since 2000.

Nonetheless, UBS reiterated a sector 'overweight' rating on multifamily REITs and which stocks investors should buy.