Extra Storage expects to report adjusted FFO of $4.25–$4.32 in fiscal 2017.
Public Storage (PSA) reported adjusted funds from operations of $2.51 per share, 1% lower than the Wall Street estimates.
Self-storage REITs are experiencing solid growth in income and revenues in 2017. In this series, we’ll analyze the 2Q17 results for Public Storage (PSA), Extra Space Storage (EXR), and CubeSmart (CUBE).
Prologis (PLD) has been assigned a target price of $62.75, which is 0.8% higher than its current price level.
Prologis (PLD) is now trading at a price-to-FFO multiple of ~22.2x, driven by its better-than-expected results in 2Q17.
Real estate investment trusts have to distribute ~90% of their profits to investors in order to qualify as an REIT.
Real estate investment trusts depend on equity and debt for working capital and carry on extensive expansion and development activities to maintain profitability.
Industrial REITs (real estate investment trusts) fund their development and redevelopment properties through debt.
Industrial REITs (real estate investment trusts) tend to carry on many development and redevelopment projects simultaneously in order to maintain leadership.
Industrial REITs (real estate investment trusts) appear to have a bright future backed by a growing economy and industrial growth.
Industrial REITs (real estate investment trusts) reported robust top-line and bottom-line results in 2Q17 backed by industrial growth,
Industrial REITs (real estate investment trusts) are currently experiencing a boom, and many investors and analysts anticipate future growth.
Welltower (HCN) has been assigned a target price of $72.59, which is a 2.1% premium to its current price level.
Healthcare Trust of America (HTA) is the most premium among our top three healthcare REITs in terms of price-to-FFO multiple.
REITs are required to pay 90.0% of their profits to shareholders in the form of share buybacks or dividends.
Welltower’s debt-to-equity ratio was 0.81x for 2Q17, which was lower than the industry mean of 1.07x.
Welltower spent $292.0 million on development and expansion in 2Q17. Of that, $110.0 million was spent on acquisitions.
Healthcare REITs fund their working capital through debt and equity. So it’s important to optimize their spending in order to maximize income.
Strong performance in skilled nursing facilities prompted Welltower management to increase its same-store net operating income guidance for fiscal 2017.
Healthcare REITs have positioned their properties in premium locations where there’s high income growth.