The growing economy has helped REITs including Weyerhaeuser (WY), Rayonier (RYN), Resolute Forests Products (RFP), and International Paper (IP) reap higher profits.
Timberland REITs (real estate investment trusts) in the US don’t seem to be in doubt about their continued growth momentum in the near future.
In this article, we’ll look into the rating analysts have given Boston Properties and also compare these ratings with those of the company’s close peers.
Boston Properties’ (BXP) valuation multiple can help us understand its expected performance for the rest of the year.
In order to qualify as REITs (real estate investment trusts), companies usually have to pay 90% of their profits (excluding capital gains) as dividends.
REITs depend on equity and debt for their working capital.
Although it is a common belief that high interest rates are usually bad for REITs like Boston Properties (BXP), Simon Property (SPG), Prologis (PLD), and Vornado Realty Trust (VNO), we find that REITs have continued in their growth trajectory in the past few months.
REITs have flourished for a considerable period in a record-low-interest-rate environment because they depend on debt and equity for their working capital.
BXP leased properties with a total area of 926,000 square feet in 2Q17.
Boston Property (BXP) has strong business momentum and has been maintaining a decent growth trajectory for the past few years.
Boston Properties raised its EPS (earnings per share) outlook for 2017 to a range of $2.72 to $2.77 per share.
The growing economy has acted as a boon to REITs, and with the help of their strategic initiatives, these REITs have been able to take advantage of the opportunity and report higher revenue and profits.
Boston Properties’ recent upbeat results came on the back of higher leasing activity as well as strong occupancy levels, which led to revenue growth.
Extra Space Storage’s (EXR) analyst target price is $81.13, up 7% from its current price level.
Public Storage (PSA) trades at an EV-to-EBITDA multiple of ~21.5x.
During 2Q17, CubeSmart (CUBE) paid a dividend of $0.27 per share, which was higher than $0.21 per share paid in 2Q16.
CubeSmart issued two notes of $50.0 million each, carrying interest of 4.4% and 4.0% and maturity dates of 2023 and 2025, respectively.
During 1H17, CubeSmart acquired two properties located in Maryland and California worth $21.9 million.
Although Public Storage did not provide any guidance for net operating income expected during fiscal 2017, analysts expect the company to report flat YoY NOI of ~$2.0 billion during 2Q17.
Extra Storage expects to report adjusted FFO of $4.25–$4.32 in fiscal 2017.