Real Estate

Revenue and earnings In this part, we’ll look at Simon Property Group (SPG). Engaged in real estate investment around the world, this retail REIT saw its revenue growth slow from 8% in 2015 to 3% in 2016. Whereas its minimum rent has risen since 2014, its overage rent, tenant reimbursements, and management fees fell in 2016. Simon […]

Revenue and earnings Ventas (VTR) is a major REIT in the United States and Canada. The company’s revenue growth slowed from 18% in 2015 to just 5% in 2016. The growth was driven by all of its segments, through resident fees and services, office building and other service revenue, and income from loans and investments, […]

The expected performance of timberland REIT Weyerhaeuser (WY) for the rest 2017 and in 2018 can be best understood by its valuation multiples.

REITs (real estate investment trusts) usually provide generous returns to their shareholders in the form of dividends or share buybacks.

REITs (real estate investment trusts) depend mostly on debt for their day-to-day functioning and working capital.

How Iron Mountain has maintained a 5% yield Iron Mountain (IRM) is an enterprise information management services company. The company’s revenue grew in 2016, supported by its North American Records and Information Management Business, North American Data Management Business, Western European Business, and Other International Business segments. Its revenue fell 4% in 2015 before rising 17% in 2016. Its operating income fell 5% in 2015 and 4% in 2016 due to […]

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) owns almost 13.1 million acres of timberlands across the US.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) expects to continue its growth trajectory for the rest of 2017.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) has been able to use the opportunities of the booming housing sector to its advantage.

Timberland REIT (real estate investment trust) Weyerhaeuser (WY) reported upbeat earnings results for 2Q17, backed by higher sales and prudent cost management.

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.

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.

Public Storage (PSA) trades at an EV-to-EBITDA multiple of ~21.5x.

Performance in 2Q17 AvalonBay Communities (AVB) has undertaken several development, redevelopment, and expansion projects to maintain its share in the market. It invested $400 million in new developments during the quarter. REITs such as UDR (UDR), Essex Property Trust (ESS), and Equity Residential (EQR) fund these activities with the help of debt and equity. Therefore, […]

Income generated in 2Q17 AvalonBay Communities (AVB) reported NOI (net operating income) of $367.1 million, compared with $339.6 million in 2Q16. The Northern California region reported the highest NOI of $64.6 million, followed by the New York metropolitan area, which reported NOI of $61.5 million. Development and redevelopment communities reported NOI growth of $40.1 million, […]

GGP’s estimated price-to-FFO multiple for fiscal 2018 is 14.2x, which is at a premium compared to its peers.

Wide geographical diversity AvalonBay Communities (AVB) has its assets well placed in high-demand Class A cities. These cities have soaring job growth, a high barrier to entry for competitors, and proximity to premium infrastructure. REIT peers UDR (UDR), Equity Residential (EQR), and Essex Property Trust (ESS) are repositioning their properties to Class A cities and […]

In 2Q17, GGP (GGP) paid $17.5 million in dividends to its shareholders. That was higher than $13.3 million paid a year ago.

Demographic shift American demographics are shifting towards Class A cities with high-income growth and demand for residential apartments. These cities offer job prospects and proximity to offices, schools, and other necessities for premium social living. Although these cities also have high barriers to entry, more residential apartment owners are repositioning their properties in these areas. […]

GGP maintained a debt-to-equity ratio of 1.55x for 2Q17. That was higher than the industrial mean of 1.07x.

Robust 2Q17 driven by rent growth AvalonBay Communities’ (AVB) total revenue of $530.5 million marginally surpassed Wall Street estimates by 0.3%. However, revenue rose by almost 6% from the year prior. Upbeat top-line growth reflected growth in development communities and stabilized operating communities. Same-store revenue rose 2.5% year-over-year. Including revenue from redeveloped communities, same-store revenue […]

GGP’s (GGP) minimum rent fell by $17.0 million in 2Q17, mainly because of dilution resulting from the sale of an interest in the Fashion Show Mall in Las Vegas n 2016.

AvalonBay Communities (AVB) reported core FFO (funds from operations) of $2.09 per share, in line with Wall Street estimates.

GGP’s minimum rent fell 3.9% to $349.2 million, and tenant recoveries fell 4.6% to $161.9 million. Overage rent fell 25.0% to $3.3 million.

GGP (GGP) reported funds from operations (or FFO) of $0.35 per share, which was in line with Wall Street estimates. Adjusted FFO remained flat year-over-year.

Vornado’s recent development and redevelopment activities have made investors optimistic about the stock.

During 2Q17, Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results backed by growth in rent and occupancy level.

Vornado Realty Trust reported adjusted FFO (funds from operation) of $1.35 per share, which beat Wall Street estimates of $1.20 per share.

Vornado Trust’s (VNO) top-line and bottom-line results improved year-over-year backed by higher rent growth and lower operational costs.

Vornado Realty Trust (VNO) reported higher year-over-year top-line and bottom-line results during 2Q17 backed by higher rent growth, lower costs, and new leases during the quarter.

VNO posted rental revenue of $626 million in 2Q17, missing Wall Street’s estimates of $633.2 million.

AMT’s current price-to-FFO multiple stands at ~22.1x. After 2Q17, American Tower offers a next-12-month dividend yield of 1.9%.