How the Top 3 Residential REITs Stack Up after 2Q17
AvalonBay Communities (AVB) has the highest premium in terms of its price-to-FFO ratio among the three residential REITs discussed.
Residential REITs have undertaken several development and reconstruction activities in order to maintain leadership in the industry.
Residential REITs undertook several strategic initiatives to maintain their leadership in the industry.
Residential REITs undertook various development and expansionary activities in order to maintain their leadership in the sector.
Residential REITs’ top-line performances in 2Q17 were solid and higher than their performances in the corresponding period last year.
The residential REIT sector is on the threshold of a transition period and the performance of these stocks depends a lot on the macroeconomic as well as industrial changes taking place currently.
Residential REITs showed strong momentum in the first half of 2017 with solid improvements in both top-line and bottom-line results.
Despite higher volatility levels, the US-listed (GS) (C) ETFs saw net inflows of ~$5.0 billion last week.
The volatility index also jumped to its highest level since the 2016 election due to heightened tension between North Korea and the US.
The top five US investment banks, including J.P. Morgan (JPM) and Goldman Sachs (GS), garnered total advisory and underwriting fees of $8 billion in 2Q17. This trend represented a 12% year-over-year increase.
Vornado seems to be the most premium in terms of price-to-FFO multiple. The REIT currently trades at 17.99x.
In 2Q17, GGP paid $17.5 million in dividends to its shareholders, which was more than $13.3 million paid a year ago.
GGP’s (GGP) debt-to-equity was 1.55x for 2Q17, which was higher than the industrial mean of 1.07x. As of 2Q17, GGP had $2.0 billion of liquidity.
Simon Property Group (SPG) had 25 redevelopment expansion projects under construction as of 2Q17.
Simon Property reported a 5.0% rise in NOI (net operating income) during the quarter backed by an 80.6% higher NOI for US malls and premium outlets.
When we consider the top line performance of commercial REITs, we find that they have performed decently during the second quarter.
Amid the loud cries that US malls are dying, the 2Q17 performances of US commercial REITs show the fallacy of the idea.
US-listed ETFs saw net inflows worth $6.90 billion during the week. In the next few weeks, inflows will likely surpass last year’s total of $287.5 billion.
Financials reached the highest level since December 2007 in anticipation of higher interest rates and the hope of early deregulation of the banking sector.
The OCC (Office of the Comptroller of the Currency) will start the process of amending the Volcker Rule this week.