More From Peter Barnes
Boston Properties among REITs: Kind of a Big Deal
Boston Properties is a Boston-based REIT that completed its initial public offering in 1997 and is now the largest publicly traded office REIT in the US.
Wells Fargo Isn’t Out of the Woods
Wells Fargo discovered that employees in its wholesale unit altered information related to customers’ records without the company’s knowledge.
Will Financials Recover Next Week?
Broader markets posted a sharp drop and the financial sector saw more losses. The S&P 500 financial index fell 5.80% and closed at 458.95.
AIMCO Reported Highest Funds from Operations in 2014
AIMCO’s (AIV) funds from operations have increased consistently over the past five years, from $177 million in fiscal 2010 to $301.8 million in fiscal 2014. That’s the highest FFO in seven years.
What the Rise in Commercial Construction Spending Means to REITs
The total private commercial construction spending increased year-over-year by 12.7% to a seasonally adjusted annual rate of $696 billion in July.
Will Simon Property Group Repeat Its Stellar 3Q15 Performance?
Simon Property Group’s healthy revenue growth in 3Q15 was primarily driven by the rise in total sales per square foot and the base minimum rent.
Easing Bank Rules: Negative in the Long Term?
Fitch Ratings says that easing the Dodd-Frank Act for smaller and custodial banks could be negative for some banks’ credit profiles in the long term.
Financials Overview for the Week of June 26–30, 2017
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
How Interest Rates Affect REIT Valuations
The most common way of calculating the relative value of a REIT such as Simon Property Group (SPG) is the price-to-FFO (funds from operations) multiple.
How UDR Plans to Increase Shareholder Returns
UDR’s (UDR) principal business strategy is to maximize the economic returns of its apartment communities to provide higher shareholder returns and value.
Highwoods Properties’ Falling Funds from Operations Payout Ratio
Highwoods Properties’ (HIW) FFO (funds from operations) increased to $2.90 per share in 2014, compared with $2.81 per share in 2013.
Why Housing Affordability Is a Growing Concern in the US
With the rise in property prices, housing affordability has become a growing concern in many markets of the country. High housing prices force people to the suburbs and rural towns to find affordable housing.
UDR Recorded the Highest Funds from Operations in 2014
UDR’s funds from operations rose from $192.8 million in 2010 to $415.4 million in 2014—the highest FFO recorded by the company during the past decade.
A Look at Alexandria’s Geographic Coverage
Alexandria’s geographic coverage spans markets such as Greater Boston, San Francisco, New York City, San Diego, Seattle, and Maryland.
BioMed Realty Is Trading at a Discount Compared to Peers—For Now
A close look at BioMed Realty’s TTM price-to-FFO ratio shows that the company is in line with its historical valuation. Its current ratio is ~16.3x.
US Banks Are Optimistic about the New Tax Plan
Despite the $32.9-billion hit the top five banks took in their fourth-quarter earnings, US banks (XLF) are generally very positive about the new tax plan.
Why Are Lennar’s Higher Margins Unsustainable?
Buyers are reluctant to pay higher prices, and builders have to offer incentives, which reduces margins. Lennar’s higher margins will not be sustainable.
Douglas Emmett’s Leverage: A Tale of Dependence, or of Improvement?
At the end of fiscal 2014, Douglas Emmett’s consolidated debt was $3.4 billion, up by 6% over 2013. Since 2015, its total debt has seen moderate declines.
What’s Funding BioMed Realty’s Acquisitions?
At the end of 2014, BioMed Realty’s consolidated debt was $2.7 billion. Its total debt rose from $1.5 billion in 2010 to $3 billion as of September 2015.
What Does D.R. Horton’s EBITDA Margin Say?
D.R. Horton’s EBITDA margin was at 10.1% as on March 2015, much better compared to 2.3% for fiscal 2011.
ETF Inflows Rebounded despite Rising Geopolitical Concerns
The latest economic data and renewed geopolitical concerns failed to thwart ETF inflows last week.
ETF Inflows Moderated Last Week
According to FactSet, $3.7 billion worth of inflows were added in the ETF last week, which takes the year-to-date total to $388.2 billion.
Investing in Columbia Property Trust through ETFs
CXP is a mid-sized stock on the NYSE, with a market capitalization of $3 billion. Consequently, it sees allocation in some REIT-specific ETFs.
How Have REITs Evolved over the Years?
After a slow start, the REIT industry expanded rapidly especially during the period from 1965 to 1975. Initially, mortgage REITs dominated the industry.
Why you should invest in homebuilder ETFs like XHB and ITB
ETFs present another investment avenue. Apart from pure homebuilder ETFs, there are many other ETFs that offer exposure to homebuilders.
An Informative Glance at Macerich’s Top Tenants
Macerich’s centers derived approximately 74% of their total rent for fiscal 2014 from mall stores and freestanding stores under 10,000 square feet.
Simon Property Group’s Key Business Segments
Simon Property is the only REIT in the S&P 100 Index and has heavy asset concentration on the US east coast and in the central US.
How Zoning Regulations Impact City Development
Zoning is the way that governments supervise land development and the kinds of uses each individual property may be directed toward for the public interest.
Why REITs Witnessed Free Fall in 2015
Most REIT stocks have experienced a free fall in 2015 after stupendous growth during the past five years. The free fall came as investors avoided REITs due to concerns of higher interest rates.
The IBB Biotechnology ETF: The Drugs You Need?
The iShares NASDAQ Biotechnology ETF (IBB) aims to track the investment results of the NASDAQ Biotechnology Index, which comprises NASDAQ-listed biotechnology and pharmaceuticals companies.
How to Invest in Equity Residential through ETFs
ETFs allow investors to build a portfolio that meets specific asset allocation needs. Investors can obtain portfolio diversification across a number of asset classes.
Investing in Lennar through Homebuilder ETFs
Lennar sees allocation in major sector-specific homebuilder ETFs such as the SPDR S&P Homebuilders ETF (XHB). XHB has a 3.36% stake in Lennar.
US Stocks Bolstered by Financials amid Tax Cut Hopes
US stocks are rising due to hopes that the Trump Administration will complete a tax deal in the near future that will substantially benefit corporates.
HACK: The World’s First Cybersecurity ETF
The ETFMG Prime Cyber Security ETF (HACK) is an ETF (exchange-traded fund) that tracks the price and yield performance of the Prime Cyber Defense Index.
How to Invest in General Growth Properties through ETFs
General Growth Properties has a market cap of $22.1 billion, is part of S&P 500 index, and sees allocation in the major REIT-specific ETFs like ICF.
BBJP: Second-Fastest ETF to Cross $1 Billion in Assets
BBJP was the star ETF last week. BBJP is the second-fastest ETF to reach the $1 billion mark after the SPDR Gold Trust (GLD).
Investing in American Campus Communities through ETFs
ETFs are a convenient, easy way to diversify your portfolio. In this article, we’ll look at how sector-specific and sector-agnostic ETFs invest in American Campus Communities (ACC) stock.
Residential Sector: What Investors Should Know
The residential REIT sector mainly includes apartments and manufactured housing. It’s one of the largest segments in the REIT industry.
Investing in Camden Property Trust through ETFs
ETFs are a convenient way for investors to build a portfolio that meets specific asset allocation needs. Camden Property Trust (CPT) sees allocation in most of the REIT-specific ETFs.
How to Invest in D.R. Horton through ETFs
D.R. Horton sees allocation in major homebuilding sector-specific ETFs like the iShares Dow Jones US Home Construction Index Fund (ITB).
Dorsey Wright Indices: Taking Advantage of Technical Aspects
With the Dorsey Wright indices, we mentioned the Dividend Achievers (VIG) (DVY) and now this is more of a fundamental factor based suite of products.
Shopping Center REITs Are Sensitive to Economic Cycles
Shopping center REITs mainly own and operate shopping centers that are smaller than retail malls. They’re mainly driven by higher consumer spending.
Why Essex Property Trust Concentrates Its Portfolio on the West Coast
Essex Property Trust expects coastal California and Washington to lead the nation in job growth given vibrant technology and life science employment sectors.
A Look at American Campus Communities’ Business Segments
American Campus Communities (ACC) has four segments: wholly-owned properties, on-campus participating properties, development services,
and property management services.
Large US Banks’ Earnings Topped Analysts’ Expectations
JPMorgan Chase (JPM) reported an EPS (earnings per share) of $2.37 in 1Q18—compared to the consensus estimate of $2.28.
Homeowner Vacancy Rate Ticks Upward
On an annual basis, the homeowner vacancy rate fell by 9.52% in the quarter ended December, down from 2.1% in the last quarter of 2013.
What Fueled the Recent Market Rally?
A sharp rise in the market (VOO) was driven by economic optimism fueled by a rebound in economic growth, improving corporate earnings, government reform initiatives, and higher liquidity.
Banks’ Trading Revenue Fell Sharply in 3Q17
So far, banks that reported their 3Q17 earnings showed mixed trends. JPMorgan Chase’s revenue and earnings comfortably beat consensus estimates.
Assessing Macerich’s Robust Revenue Growth in Fiscal 2014
Macerich reported a consolidated revenue of $1.1 billion in 2014—a figure up by 7.4% over 2013. In 2013, its revenue growth was a whopping 29.1% over 2012.
Why General Growth Properties’ Revenue Declined in 3Q15
General Growth Properties tenant reimbursement, a major source of income for the company, experienced a drop of 7.3% in 3Q15 to $172.5 million over 3Q14.
Breakdown of Essex Property Trust’s Cost Structure
The sharp rise in Essex Property Trust’s costs in 2014 can be attributed to its acquisition of properties following the BRE Properties merger.
AIG Posted a Huge Loss in 4Q17
AIG (AIG) reported a net loss of $6.66 billion in 4Q17—compared to a loss of $3 billion in 4Q16.
What Are EdR’s Key Business Segments?
EdR (EDR) classifies its business into three segments: collegiate housing leasing, development consulting services, and management services.
How Geopolitical Factors Could Impact Stock Markets
The S&P 500 Index plunged 4.6% during the first four trading days of February, while the Dow Jones Industrial Average and the NASDAQ Composite Index dipped 4.7% and 4.0%, respectively.
US Banks’ 4Q17 Earnings Hit by New Tax Law
Morgan Stanley (MS) reported an EPS of $0.84 in 4Q17. Its earnings exclude a one-time $990 million hit resulting from recent changes to the US tax code.
Alexandria: Flying High with Higher Occupancy Levels
Occupancy rate is the number of units that are rented out to residents by a company in proportion to the total number of units in the building or community.
Fintech Startups Grabbed a Larger Share of US Personal Loans
The total spending on Visa’s (V) network rose 11% to $2.1 trillion in the second quarter—slightly better than analysts’ estimates of $2.09 trillion.
Trading Revenues Boosted Banks’ Second-Quarter Earnings
The top five US banks’ trading revenues rose 10% in the second quarter to over $20 billion—compared to $18.55 billion in the same period last year.
Earnings Growth Drove Financials Last Week
Even though broader markets remained flat last week, US financials rose due to strong earnings growth from leading banks.
ETF Inflows Rose amid a Strong Rally in the Market
The rise in US stocks to more than a five-month high prompted investors to put money into ETFs. US-listed ETFs added $8.5 billion last week.
ETF Inflows Are Gravitating towards Fixed Income
According to FactSet data, US-listed ETFs had inflows worth $770 million last week. Now, the year-to-date inflows are $121 billion.
Highest ETF Outflows in Three Months
FactSet data showed that ETFs posted net outflows of $21.6 billion during the week, which pushed the year-to-date inflows down to $129.4 billion.
Banks Might Benefit from the Improving Loan-to-Deposit Ratio
The LDR ratio for the largest US banks—JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and U.S. Bancorp—rose in the first quarter.
Russell-Indexed Funds Boost US Equity ETFs’ Inflows
FactSet data showed that US-listed ETFs garnered inflows worth $7.5 billion during the week. Now, the year-to-date inflows are $142.5 billion.
US Banks Might Boost Payouts after Clearing the Stress Test
Big US banks (VFH) have cleared the Fed’s latest stress test. The test measures banks’ ability to withstand an economic crisis.
Why Did ETF Flows Pause Last Week?
After eight weeks of continuous inflows, ETF flows faltered last week despite positive momentum in the markets.
Top US Banks Lost Market Share in the Mortgage Industry
According to the Federal Reserve, consumer credit slowed to an annual growth rate of 2.9% or $9.3 billion in April—compared to 3.8% in March.
Jefferies: US Banks’ Exposure to Italy Is Manageable
According to Jefferies, JPMorgan Chase only had $6.7 billion of exposure to Italy at the end of 2017, while Bank of America had $5.4 billion.
ETF Inflows Gained Traction Last Week
According to FactSet, investors added $3.5 billion to US-listed ETFs last week. Now, the year-to-date inflows are $90.4 billion.
Big US Banks Continued to Report Robust Earnings
Morgan Stanley reported an EPS of $1.45 in 1Q18—compared to expectations of $1.25. Morgan Stanley’s revenue was $11.1 billion.
US Equity ETFs Continued to See Sharp Outflows
The uncertainty created by the US-China trade war continues to impact ETF inflows. Investors withdrew $3 billion out of US-listed ETFs last week.
US Investment Banks Earned Record Fees in 2017
The five largest US investment banks garnered more than $15.2 billion in fees from debt capital market activities in 2017.
Bank of America Fined for Fraudulent ‘Masking’ Scheme
The New York Attorney General fined Bank of America due to a fraudulent “masking” scheme in the bank’s electronic trading division.
Could an Interest Rate Hike Boost Financials This Week?
US stocks ended lower last week amid political uncertainty. Strong industrial production data didn’t boost the markets.
SPY Witnessed Huge Outflows
The SPDR S&P 500 ETF Trust (SPY) was responsible for all of the outflows from US equity. SPY experienced net redemptions of $12.7 billion.
US Financials Rallied, Indexes Extended Gains
US stock markets rallied last week after February’s jobs report was better than expected. Non-farm payrolls rose by 313,000 in February.
Gold ETF Is Making a Comeback
The VanEck Vectors Gold Miners ETF (GDX) raked in $610.1 million. SMH also saw substantial inflows of $552.8 million.
Why Investors Should Monitor Geopolitical Risks
Localized geopolitical risks like the tension in the Middle East are unlikely to cause substantial damage to the markets in the long run, though they could bolster oil prices in the short term.
North Korea Could Be a Major Political Risk
While North Korea and South Korea (EWY) have initiated talks recently, North Korea’s nuclear ambitions mean that tensions will always remain in the region despite temporary overtures of peace from both sides.
Can Trade War Spook Stock Markets in 2018?
The biggest political risk to markets could arise from a trade war that has been playing out ever since Donald Trump came to power.
Huge Dip in ETF Flows for the Week
After registering the strongest inflows in January, ETFs witnessed huge outflows last week. The YTD inflows have fallen to $51.9 billion.
Why Investors Need Not Remain Complacent
The International Monetary Fund expects the US economy to grow 2.7% in 2018 and 2.5% in 2019. The global economy is expected to expand 3.9% in both 2018 and 2019.
How Monetary Tightening Could Affect the Stock Markets
The ultra-loose monetary policies that have been in vogue for many years have helped jack up prices of all the asset classes.
SPY’s Assets Crossed $300 Billion
SPY, the world’s largest ETF, continued to receive huge inflows. After adding $7.8 billion the previous week, it added another $6.2 billion last week.
Strong Earnings Propel Stocks into Unchartered Waters
Last week, US stocks closed the week on a very strong note mainly driven by strong earnings growth. All 11 sectors in SPY reported positive earnings growth.
SPY Was the Big Winner Last Week
SPY continued to be the big winner of the week with inflows of $7.8 billion. SPY’s total assets under management have reached $292 billion.
ETFs Start 2018 on a Very Strong Note
ETFs started 2018 on a very promising note. According to FactSet, the total ETF inflows amounted to $5.32 billion for the first week of the year.
Can Verizon’s Current Transformation Boost Its Stock in 2018?
Over the past two years, Verizon has boosted its presence in online advertising, streaming videos, and adjacent wireless markets by acquiring a number of companies.
ETF Inflows Hit Record Highs in 2017
With the addition of $475 billion, ETF inflows have broken all of the records in 2017. The previous record was $287.5 billion in 2016.
Is IBM Ready to Take Off?
International Business Machines (IBM), a leading enterprise solutions provider, has seen its revenue decline consistently for the past 22 quarters.
2017 Dogs of the Dow Were Winners in 2016
The Dow has risen 88.5% since December 2012. Except for Merck (MRK) and Verizon (VZ), the laggards delivered negative returns during that period.
SPY Was the Biggest Winner Last Week
Last week, the SPDR S&P 500 ETF Trust (SPY) was the biggest winner with inflows worth $4.63 billion.
US Financials: More Gains in the Coming Weeks?
US financial stocks hold a lot of promise going into 2018 due to strong economic growth and the expected rise in interest rates.
Smart Beta ETFs Were the Real Stars Last Week
Last week, the real stars were smart beta ETFs that saw strong inflows after many weeks. MTUM and USMV added $847.5 million and $829 million.
Investors Up Exposure in US Equities amid Rising Markets
According to Lipper data, US-based stock ETFs (exchange-traded funds) saw inflows worth $9.4 billion last week even as the markets (SPY) continued to see record highs.
ETF Inflows Are near $400 Billion
ETFs saw another week of record inflows even though the markets fell slightly for the second consecutive week. ETFs added $5.4 billion last week.
US Banks’ Divergent Approaches to Securities Trading
Over the years, the largest US banks (XLF) have followed different approaches to their equity and FICC (fixed income, currencies and commodities) trading.
Equities Garnered a Huge Chunk of the Total ETF Inflows
FactSet data show that $16.2 billion worth of inflows were added in the ETF last week, which takes the YTD (year-to-date) total to $384.3 billion.
ETF Inflows Set a New Annual Record
As the broader stock indexes continued to make new highs, ETFs also continued to witness record inflows.
What Just Happened to Investment Bank Rankings?
During a press conference last week, Federal Reserve Chair Janet Yellen criticized Wells Fargo (WFC) for its fake account scam.