How Wall Street Analysts View Equity Residential
Analysts gave EQR a mean price target of $65.30, implying a 0.2% fall from its current level of $65.41.
Equity Residential’s effective overall borrowing rate for fiscal 2016 was ~4.5%, close to its 2015 level of ~4.6%.
Equity Residential’s (EQR) current price-to-FFO multiple is ~21.0x.
As a part of its strategy initiated in 2005, Equity Residential (EQR) started to sell off its properties to other REITs located in less-dense regions.
In order to qualify as equities, REITs like Equity Residential (EQR) are required to pay at least 90% of their taxable income to investors in the form of dividends. REITs…
The Fed indicated that it could implement two more rate hikes in 2017. The market speculates one of the rate hikes could occur in June, and the other one is expected to occur around December 2017.
According to preliminary results released by the University of Michigan in May 2017, the consumer sentiment index gained 3.2% year-over-year for May to date, standing at 97.7%.
In 1Q17, Southern California comprised 25% of Equity Residential’s (EQR) total revenues, 19% of its total revenues came from Washington, D.C., and New York comprised 21% of its total revenues.
According to Freddie Mac, approximately 75.4 million Millennials and 74.9 million Baby Boomers are expected to join the pool of customers for apartment units in 2017.
On March 31, 2017, Equity Residential (EQR) owned 302 properties in ten states and the District of Columbia, comprising 77,498 apartment units.
In 2016, Equity Residential (EQR) completed $1.1 billion in development projects, a record for the company. It expects to complete $900 million in development projects in 2017.
Simon Property Group’s current price-to-FFO multiple is ~14.1x.
Analysts gave SPG a mean price target of $202.45, implying an ~25.1% rise from its current level of $161.78.
During 2016, Simon Property Group repurchased 1,409,197 shares at an average price of $181.14 per share.
Simon Property Group (SPG) maintained an effective overall borrowing rate on its debt for fiscal 2016 of ~3.4%, down 49 basis points compared to ~3.9% in 2015.
Because President Trump is not expected to raise the minimum wage, the profit margins of mall owners or smaller retail shops are expected to be on the higher side, increasing their ability to pay higher rents.
According to a survey conducted by the University of Michigan in April 2017, the Consumer Sentiment Index stood at 97.0 compared to 96.9 in March.
The hawkish interest rate environment has added to the woes of mall owners like Simon Property (SPG), as well as the REIT industry.
According to recent research conducted by Green Street Estimates, department stores need to shut down hundreds of stores in 2017.
On March 31, 2017, Simon Property Group’s business in the US stood at a hefty figure of 206 properties, including malls, premium outlets, and lifestyle centers.