Real Estate

According to the latest report from NAR, existing home sales have risen 2% to a seasonally adjusted annual rate of 5.48 million in October.

Prologis has noted a 15.0% rise in revenue in the first half of 2017, driven by every segment. Operating income rose 61.0% despite higher expenses.

Revenue and earnings Host Hotels & Resorts (HST), a hotel REIT, is involved in the possession and operation of US hotel properties. The company’s revenue was almost flat in 2015 and 2016, driven by rooms and food and beverages. Its operating costs and expenses rose 1%–2% in 2015 and 2016., while its interest expenses fell 32% […]

Revenue and earnings HCP (HCP) is a healthcare REIT specializing in US healthcare property investment. In 2016, the company’s revenue growth slowed to 10% from 19% in 2015. The growth was driven by its senior housing operating portfolio, life science segment, and medical office segment, and partially offset by its senior housing triple-net segment. Rental and […]

Revenue and earnings Public Storage (PSA) an industrial REIT, invests in US and European real estate markets. Tthe company’s revenue grew 9% and 8% in 2015 and 2016, respectively. The growth was driven by self-storage facilities and ancillary operations. Its operating costs rose 2%–3% in 2015 and 2016, and its operating income rose 17% in 2015 […]

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.

After thriving for a long time in a low interest rate environment, REITs (real estate investment trusts) are now facing a high interest rate.

REITs (real estate investment trusts) depend on debt and equity for their working capital, and so they’re directly impacted by the Fed’s interest rate policy.

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) 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.

In order to qualify as REITs (real estate investment trusts), companies usually have to pay 90% of their profits (excluding capital gains) as dividends.

REITs depend on equity and debt for their working capital.

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.

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.

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.

Price-to-funds from operations multiple AvalonBay Communities’ (AVB) performance in 2Q17 can be best evaluated by looking at its price-to-FFO (funds from operations) multiple. The multiple, widely used for REITs, gives an idea of how much an investor pays for a particular stock per unit of its profit. The multiple, which has the same implications as the price-to-earnings […]

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, […]

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 has redeveloped its vacant spaces for non-retail uses such as restaurants, entertainment zones, fitness centers, and grocery stores.

Robust 2Q17 results AvalonBay Communities’ (AVB) top and bottom lines exceeded expectations, backed by higher net operating income growth of 8.1%.   Factors affecting profit during 2Q17 Higher occupancy and rent growth in development communities and stabilized operating communities led to upbeat results during the quarter. Higher funds from operations expected for 3Q17 AvalonBay expects […]

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.

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.