Raina Brown
Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.
More From Raina Brown
How Analysts View HCP Inc. in Fiscal 2018
Analysts gave HCP a mean price target of $26.59, implying a significant ~17.0% rise from its current level of $22.68.
HCP’s Performance in Comparison to Its Peers
HCP has a $2.0 billion credit facility with maturity in 2021, and the majority of its debt matures after 2019.
HCP and Its Falling Shareholder Returns
HCP has indicated that the recently enacted Tax Cut and Jobs Act could materially and adversely affect the company and its stockholders.
HCP’s Portfolio Riding on Developments, Acquisitions, and More
In 4Q17, HCP recorded an $84.0 million impairment on the debt investment and reduced the value to $105.0 million.
HCP Inc.’s Demographic Drivers of Demand
According to the National Bureau of Economic Data, the first wave of Baby Boomers are expected to turn 75 in 2020.
HCP Inc.’s Expanding Medical Office Portfolio
Rental revenues for HCP increased ~3.0% from $392.0 million in 2016 to $400.0 million in 2017.
Chart in Focus: HCP’s Life Science Portfolio
Life Science is an 8.0 million square foot portfolio and represents ~25.0% of HCP’s NOI.
HCP Beats Funds from Operations, Misses on Revenues in 4Q17
For 2017, HCP’s funds from operation stood at $1.95 per share, and its same-store cash NOI growth was 3.4%.
HCP’s Cautious View for Its Senior Housing Portfolio in 2018
HCP Inc. has a diversified senior housing portfolio, which has a balanced mix of triple net and SHOP (senior housing operating portfolio).
Healthcare Trust of America Maintains Its ‘Buy’ Rating in 2018
Analysts gave HTA a mean price target of $33.38, implying a significant ~26.0% rise from its current level of $26.30.
Healthcare Trust of America’s Performance in Comparison to Its Peers
HTA has earnings per share of $0.33 and a PE (price-to-earnings) ratio of ~111.0x.
How Healthcare Trust of America Rewards Its Investors
HTA paid dividends of $1.17 in 2015, $1.19 in 2016, and $1.21 in 2017.
Healthcare Trust of America’s Balance Sheet
In 2017, Healthcare Trust of America (HTA) had total leverage of 29.9%.
Healthcare Trust of America’s Strategic Rationale
HTA has 3.4% combined pro forma same-store NOI growth, and its development assets are currently 86.0% pre-leased.
HTA’s Portfolio Riding on Investments, Acquisitions, and More
Healthcare Trust of America (HTA) completed investments of $2.7 billion in 2017, and 90% of these properties are in key strategic markets.
Healthcare Trust of America: Key Macro Drivers
In 2015, US healthcare spending grew 5.8%, and health spending accounted for 17.8% of the nation’s GDP.
Healthcare Trust of America and Its Growth Story
Healthcare Trust of America (HTA) has centers in more than 20 key markets in the US, covering 24 million square feet.
Goldman Sachs Is Trading at Discount to Peers
Goldman Sachs (GS) stock has risen 15.4% over the past six months and 5.4% over the past year.
Goldman Sachs: Its Expanding Investment Management Division
Net revenues for Goldman Sachs’s (GS) investment management segment were $6.2 billion, a 7% rise year-over-year.
Goldman Sachs’s Investing and Lending: What It’s Riding On
Goldman Sachs’s (GS) investing and lending segment produced revenues of $1.7 billion in 4Q17, a 12% rise from 4Q16 and 12% lower than 3Q16.
Goldman Sachs’s Trading Department and Its Equities Segment
Goldman Sachs’s (GS) equity net revenues were $1.4 billion in 4Q17, an 18% fall sequentially.
Goldman Sachs’s Trading Revenues Continue to Disappoint
Goldman Sachs’s (GS) net revenues in its ICS (Institutional Client Services) segment fell 24% to $2.4 billion compared to 3Q17.
Goldman Sachs: Investment Banking Division Getting Stronger
Goldman Sachs’s (GS) investment banking division produced revenues of $2.1 billion, a 19% rise over 3Q17.
Evercore’s Long-Term Commitment to Shareholders
Evercore (EVR) has been very committed to rewarding its shareholders in the form of dividends as well as buybacks.
A Look at Evercore’s Business Model
Evercore generated 25% of its fees from its technology, media, and telecom sector, 20% from its energy sector, and 17% from its financials sector in 4Q17.
Evercore: Fall in Investment Management Revenues Continues
Evercore’s (EVR) investment management revenue in 4Q17 fell 26% to $13.2 million compared to $18 million in 4Q16.
Evercore’s Strongest Division: Investment Banking
Evercore’s (EVR) investment banking segment reported net revenues of $518.8 million in 4Q17 compared to $427.4 million in 3Q16.
Evercore in 4Q17: Tax Impact, Advisory Revenue, and More
Evercore’s (EVR) revenues were $540 million in 4Q17, or 21% higher than 4Q16. Revenues of $1.7 billion for 2017 was 18% higher than 2016.
How Wall Street Analysts View Bancorp
Analysts gave USB a mean price target of $59.5, implying a ~9% rise from its current level of $54.80.
What’s Bancorp’s Valuation?
Bancorp’s (USB) stock has risen 3.2% over the past six months and 3.0% over the past year.
Analyzing Bancorp’s Loan Credit Quality
Average loans rose in 4Q17 by $925 million on account of increased merger and acquisition activity and stronger customer relationships.
How Bancorp’s Credit Provision and Non-Performing Assets Looked in 4Q17
Bancorp’s (USB) provision for credit losses for 4Q17 was $335 million, which was lower by $25 million or 6.9% over 3Q17.
What Led to Bancorp’s Strong 4Q17 Performance?
Bancorp (USB) reported net income of $1,682 million for 4Q17 in comparison to $1,478 million in 4Q16, a 13.8% increase.
Raymond James Financial Compared to Its Peers
Raymond James Financial (RJF) generated a return of 4.8% in the last three months and 17.6% in the last year.
Analysts ‘Neutral’ to ‘Positive’ on Raymond James Financial
Analysts covering Raymond James Financials (RJF) have given RJF a mean price target of $109.14, implying a 15.7% rise from its current level of $94.30.
Raymond James Financial’s Steady Dividend Policy
Raymond James Financial (RJF) announced a dividend of $0.25 per share for 1Q18 from $0.22 in 3Q16. The dividend yield stands at 1.1%.
How Raymond James Financial Is Managing Its Expenses
Raymond James Financial’s (RJF) non-interest expenses increased 10% on a YoY (year-over-year) basis to $1.4 billion.
Raymond James Financial’s Most Profitable Divisions
Raymond James Financial’s (RJF) Private Client Group reported fiscal 1Q18 revenues of $1.2 billion, a 19% rise over fiscal 1Q17 and a 5% rise over 4Q17.
Company & Industry Overviews Raymond James Financial: Fall in Trading Revenues Continues
Raymond James Financial’s (RJF) fiscal 1Q18 net revenues of $216.7 million were 7% lower than 1Q17 and 18% lower than 4Q17.
Analysts Give Crown Castle Stock Mostly ‘Buy’ Ratings in 2018
Analyst ratings Crown Castle’s (CCI) 2018 performance expectations have been reflected in its analyst ratings. Of the 21 analysts covering the stock in January 2018, 13 have recommended “buy” or “strong buy” (as was the case in December 2017), and eight have recommended “hold.” Analysts have given Crown Castle a mean price target of $116.89, implying a […]
Where Crown Castle Stands among Peers
Peer comparison In 4Q17, Crown Castle (CCI) had FFO[1.funds from operations] per share of $1.25, and in 2018, it’s expected to see FFO per share of $5.23 due to its acquisition of Lightower. The company is expected to grow 7.8% in 2018, 11.4% in 2019, and at a five-year rate of 15.5%. Trading slightly lower rate than the industry […]
How Crown Castle Rewards Shareholders
Crown Castle’s dividend policy In 4Q17, Crown Castle (CCI) announced a dividend of $0.95 per share, bringing its 2017 dividend to $3.89, compared with $3.60 in 2016. It paid a dividend of $3.34 in 2015. Its dividend yield is currently 3.8%, and its three-year dividend growth rate is 27.8%. The company achieved its long-term annual dividend growth target of […]
A Look into Crown Castle’s Business Model
Major customers Crown Castle’s (CCI) customer base comprises wireless carriers operating in national networks and carriers renting small cell networks, including those of healthcare, education, and government organizations. Crown Castle’s key strategy is to acquire large tower clusters and leverage its relationships with carriers in US markets. Of its fiscal 2017 revenue, it derived 22% from AT&T (T), […]
Crown Castle Beats Revenue and Boosts Estimates
Crown Castle (CCI) has increased its site rental revenue estimate for 2018 by $36 million to $4.6 billion, representing a 26% YoY (year-over-year) gain.
Ventas Is Trading at a Discount to Peers
Funds from operation (or FFO) for Ventas (VTR) for 3Q17 stood at $1.04 per share.
Why Ventas Stock Is Falling
The recent increase in interest rates has impacted the performance of VTR.
How Does Ventas’s Balance Sheet Look?
Ventas (VTR) has a strong flexible balance sheet and excellent liquidity.
How Wall Street Analysts View Extra Space
Analysts gave EXR a mean price target of $87.93, implying an ~1.5% rise from its current level of $86.72. It has a market capitalization of ~$10.9 billion.
Extra Space—Valuations on Par with the Industry
EXR’s FFO per share for 2017 is expected to be $4.32–$4.65.
Extra Space and Its Solid Balance Sheet
EXR increased its fixed debt ratio to 80.0% in 3Q17 from 76.1% in 2Q17.
Company & Industry Overviews Extra Space Storage—Highest Stock Price Return among REITs
Extra Space’s (EXR) stock price has risen from $12.77 in 2008 to $83.80 in January 2018. EXR has returned 705.4% in the past ten years.
Extra Space’s Occupancy Rate and Other Growth Factors
EXR’s occupancy rate in 2Q17 was 94.5% compared to 94.1% in 2Q16.
Morgan Stanley Maintains Its ‘Buy’ Rating in 2018
Of the analysts surveyed by Reuters, ~55% have rated Morgan Stanley (MS) a “buy.”
Earnings Report Morgan Stanley’s Expanding Investment Management Segment
Morgan Stanley’s Investment Management segment reported pretax income of $80 million in 4Q17 compared to $28 million in 4Q16.
Wealth Management Segment: Morgan Stanley’s Backbone
Morgan Stanley’s (MS) Wealth Management segment reported pretax income of $1.2 billion in 4Q17 compared to $891 million in 4Q16.
Morgan Stanley’s Downfall in Trading Revenue Continues
Morgan Stanley’s Institutional Securities segment reported pretax revenue of $1.2 billion in 4Q17 compared to $1.3 billion in 4Q16.
Earnings Report Tax Cut Policy: A One-Time Hit on Morgan Stanley’s Earnings
Morgan Stanley (MS) has reported a one-time net discrete tax provision of $990 million.
Wealth Management Helped Morgan Stanley Beat 4Q17 Estimates
Morgan Stanley (MS) announced its 4Q17 earnings on January 18, 2018. Its adjusted EPS (earnings per share) were $0.84, and its revenue was $9.5 billion.
Equinix Is Trading above the Industry Average
Equinix’s 3Q17 funds from operations stood at $4.97 per share. Its expected FFO was $4.11 for a surprise of ~20.9%.
How Equinix Rewards Its Shareholders
Equinix (EQIX) announced a dividend of $2.00 per share for 3Q17, leading to a total of $8.00 for 2017 and up from $7.00 in 2016.
Equinix: Debt, Balance Sheet, and Capex
Equinix (EQIX) had capex of $320.0 million in 3Q17, which included recurring capex of $45.0 million.
Equinix: A Complete Overview
Equinix generated an ~30.0% yield on gross property, plant, and equipment on stabilized assets. It generated a ten-year shareholder return of ~18.0%.
Equinix: Performance in International Markets
Equinix’s 3Q17 revenues in the Americas rose 12% quarter-over-quarter and 40% year-over-year on an as-reported basis.
How Welltower Is Rewarding Its Shareholders
Welltower (HCN) announced a dividend of $0.87 per share for 3Q17 from the previous guidance $0.86 in 3Q16. The dividend yield stands at ~5.6%.
Welltower’s Efficiently Managed Debt and Balance Sheet
Welltower (HCN) has kept its balance sheet in good shape. It has a cash balance of $236 million and $2.6 billion in credit line availability.
Welltower’s 3Q17 Performance and Outlook
Welltower (HCN) increased its SSNOI (same-store net operating income) to 2.5%–3% from 2.25%–3%. This slight increase is due to strong seniors’ housing operating performance.
Analysts’ Views of American Tower
As of January 2018, 21 of the 22 analysts covering American Tower stock have given it a “buy” or “strong buy” rating. The remaining analyst gave it a “hold” rating.
American Tower’s Disciplined Capital Allocation
American Tower (AMT) deployed $600 million of capital in 3Q17, bringing its year-to-date amount to $3.6 billion.
A Look at American Tower’s Well-Built Balance Sheet
During 3Q17, American Tower (AMT) strengthened its revenues on higher organic growth in domestic and international markets such as India and Mexico.
American Tower’s Strong Hold in the International Market
Mexico is one of American Tower’s (AMT) vital international markets. AMT has entered into an agreement to acquire certain telecommunication assets in Mexico.
These Factors Are Helping American Tower’s Growth
Data usage is increasing in international markets due to smartphone penetration.
American Tower Riding High with Strong Organic Growth
American Tower (AMT) has increased its 2017 revenue outlook to $6.55 billion from $6.53 billion, an addition of $15 million and a 0.2% increase.
How Does Equity Residential’s Balance Sheet Look?
EQR reported higher revenues backed by strong growth in rental income.
How Tax Plan, Interest Rates, and Other Factors Are Affecting EQR
Since REITs are required to pay 90% of their income as dividends, the tax cuts might reduce their advantage in comparison to other corporations.
Equity Residential’s Strategic Properties Give It an Edge
Equity Residential (EQR) has properties in Southern California, San Francisco, New York, Washington DC, Boston, and Seattle.
What Do Wall Street Analysts Think of Equity Residential?
Analysts gave EQR a mean price target of $69.08, implying a ~8.3% rise from its current level of $63.77.
What Wall Street Analysts Think about Goldman Sachs
Analysts have given Goldman Sachs (GS) a mean price target of $258.40, implying a ~0.26% rise from its current level of $257.70.
How Goldman Sachs Is Rewarding Investors
Goldman Sachs (GS) reported revenue of $8.3 billion in 3Q17, the highest in the last seven quarters, beating analysts’ estimate by 10.4%.
How Goldman Sachs Is Managing Its Expenses
For 3Q17, GS’s non-compensation expenses were $2.2 billion, a 2% rise from 2Q17 and a 4% rise from 3Q16.
Goldman Sachs: Asset Management Is Contributing to Expansion
Goldman Sachs’s (GS) Investment Management segment reported 3Q17 net revenues of $1.5 billion, which was flat compared to 2Q17 but 2% higher than 3Q16.
Goldman Sachs and Its Commanding Investment Banking Division
Goldman Sachs’s (GS) Investment Banking segment generated revenues of $1.8 billion in 3Q17, which was a 4% rise compared to 2Q17.
What to Expect from Bulge-Bracket Giant Goldman Sachs in 2018
Goldman Sachs (GS) has identified $5 billion of growth initiatives. If successfully implemented, it will add an additional $2.5 billion in annual pre-tax earnings.
What Do Wall Street Analysts Think of SPG?
Analysts gave SPG a mean price target of $188.10, implying an ~16.0% rise from its current level of $162.26.
Why SPG Is Commanding a Premium in Comparison to Its Peers
A higher price-to-FFO multiple for Simon Property means that it has the capacity to give a predictable return as well as consistent dividend yields to investors.
SPG’s Stable Dividend Policy
During 2016, SPG repurchased 1,409,197 shares at an average price of $181.14 per share.
SPG Investments, US Portfolio Built Up in Upcoming Quarters
As of 3Q17, Simon Property Group had liquidity of more than $6.5 billion of cash on hand, which includes cash from its joint ventures and revolving credit facilities.
Key Drivers Contributing to SPG’s Evolution
Simon Property Group’s capital expenditure increased ~15.0% in 2Q17 while it decreased ~1.2% in 3Q17.
Simon Property Group: Altering Strategies to Target Growth in 2018
Simon Property Group (SPG) is expected to pay a dividend of $7.15 per share in 2017, an increase of 10.0%. Its portfolio valuation rose 3.9% for 3Q17 on a year-over-year basis.