Kilroy Realty Corp

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.

Increased credit availability is extremely important to commercial REITs like Simon Property Group (SPG), Boston Properties (BXP), Kilroy (KRC), Vornado (VNO), and S.L. Green (SLG).

While most people don’t think of industrial data affecting office REITs, it does influence the top-line growth of commercial REITs like SL Green (SLG).

Highwoods Properties’ (HIW) FFO (funds from operations) increased to $2.90 per share in 2014, compared with $2.81 per share in 2013.

Alexandria’s geographic coverage spans markets such as Greater Boston, San Francisco, New York City, San Diego, Seattle, and Maryland.

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.

The Fed currently supports $4 trillion in assets with about $55 billion in equity. Under any other entity, that would be considered an unthinkable leverage ratio.

Small business accounts for roughly half of the U.S. gross domestic product (or GDP) and jobs.

On the household front, it noted that home price appreciation continues—although it did say it believed credit standards remain tight.

The Institute of Supply Management (ISM) Purchasing Manager’s Index (PMI) is similar to the other regional PMI indices, but it covers the entire country. It’s the sister index to the ISM Manufacturing Purchasing Managers Index.

The upcoming week will be about the jobs report on Friday, which is the biggest driver of Fed policy at the moment.

Prologis’s (PLD) upbeat top-line and bottom-line results in 2Q17 were driven by higher-than-expected rent growth and net operating income.

The index showed that overall activity in the non-manufacturing sector increased for the 50th consecutive month and the pace of growth is accelerating.

Private sector employment increased by 238,000 in December, while November’s numbers were revised upward from 215,000 to 229,000.

Capacity utilization rates are approaching long-term historical averages.

The activity and decisions of the Fed are probably the biggest driver of returns in the financial sector right now.

Vornado has maintained a $0.73 dividend since early 2013. Late in 2012, it paid a $1 long-term capital gain along with its then-recurring dividend of $0.69 a share.

The strength of the services economy in particular is an important driver of the office REITs like Boston Properties (BXP), Kilroy (KRC), Vornado Realty Trust (VNO), S.L. Green (SLG), and Highwoods (HIW).

Industrial production and capacity utilization are numbers that get a lot of focus at the Fed. These figures not only help forecast economic activity, but they’re also important inputs into inflation.

From 1972 to 2012, capacity utilization averaged 80.2% and bottomed at 66.9% in 2009 suggesting there’s a lot of room for production to expand before we start feeling inflationary pressures.

The Bureau of Labor Statistics (or BLS) compiles data from a random sample of private non-farm businesses. Job openings are one piece of the report. The other is hires versus separations.

Small business accounts for roughly half of the U.S. GDP and jobs.

Prologis is expected to ride high on its growth trajectory. For 2017, it raised its adjusted FFO (funds from operation) projection by $0.10 per share.

Overall, the financial situation didn’t change materially between the April and June Federal Open Market Committee (or FOMC) meetings.

The staff economists took up their near-term estimate of GDP growth based on stronger retail sales despite the government shutdown.

Given that REITs are required to distribute 90% of their earnings to shareholders via dividends, they tend to have somewhat more volatile dividend streams than more traditional companies.

Expansion was reported in 16 of the industries. The best-performing sectors were construction, retail, and agriculture. Two industries—entertainment and utilities—reported declines.

Vacancy rates are determined not only by demand, but also by the supply of office space. Since the real estate bubble burst, we’ve had a lack of new construction, which has limited supply of office space.

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.

Bonds rallied on the FOMC minutes, touching as low as 1.93% before selling off and finishing the day with a modest rally.

The Fed noted that during the October through December intermeeting period, long-term interest rates fell and corporate spreads widened.

Economic forces that work at cross-purposes are driving the commercial REIT sector. Economic strength is good, but increasing interest rates are a negative.

The FOMC minutes go deeper than the FOMC statement and explain the current discussions. Commercial real estate investment trusts are sensitive to the interest rate. So, these companies carefully analyze the minutes.

Office REITs are driven in part by economy’s strength The strength of the services economy, in particular, is an important driver of office real estate investment trusts (or REITs) such as Boston Properties, Inc. (BXP), Kilroy Realty Corporation (KRC), Vornado Realty Trust (VNO), SL Green Realty Corp. (SLG), and Highwoods Properties Inc. (HIW). Strength increases […]

The strength of the services economy, in particular, is an important driver of office REITs. Strength increases demand and prices for office space. It lowers vacancy rates.

The price-to-FFO multiple is the best way to evaluate Prologis (PLD).

Prologis maintained a debt-to-equity ratio of 0.75x for 2Q17, which was lower than the industrial mean of 1.07x.

Prologis’s (PLD) properties are spread across the globe. This geographical diversity ensures that the company gets the optimum value from the retail and supply chains in different parts of the world.

Prologis (PLD) reported better-than-expected 2Q17 top-line and bottom-line results.

Prologis (PLD) reported core funds from operation (or FFO) of $0.84 per share in 2Q17, which surpassed Wall Street’s estimates of $0.77 by a remarkable 9.1%.

Analysts have assigned Prologis stock a mean price target of $58.47, which is 2.1% higher than its current price of $57.28.

In terms of price-to-FFO multiple, PLD trades at par with most of its peers except Brandywine Realty Trust (BDN).

In addition to Prologis’s strategic initiatives such as acquisitions, dispositions, and project development activities, several macroeconomic factors also impact performance.

Wall Street expects Prologis to report adjusted FFO (funds from operations) of $0.76, a 27.3% rise year-over-year.

According to Wall Street analysts, Prologis (PLD) is expected to report NOI (net operating income) of $440.2 million in 2Q17.

Prologis (PLD) is expected to see higher revenue growth as well as higher margins for 2Q17.

Analysts expect Prologis (PLD) to report revenue of $583.5 million for 2Q17 when it releases its earnings on July 18, 2017.

Prologis (PLD) is scheduled to report its fiscal 2Q17 earnings on July 18. 2017. Analysts expect it to report adjusted FFO (funds from operations) of $0.76.

The analysts covering Prologis have assigned the stock a mean price target of $57.8, which is the same as its current price level.

Prologis’s price-to-FFO multiple is now 20.95x, which means that it has been returning consistent capital value and reliable dividend yields to investors.

In order to qualify as an REIT (real estate investment trust), companies like Prologis (PLD) have to pay almost 90% of their taxable income as dividends.

Commerical REITs (real estate investment trusts) have to pay at least 90% of their taxable income as dividends or share buybacks.

Rising optimism in US markets bodes well for commercial REITs like Prologis, Duke Realty, Kilroy Realty, and Boston Properties.

Prologis is expected to achieve a growth rate of 6%, 5.8%, 9.1% and 8.7%, respectively, in AFFO (adjusted funds from operations) over the next four quarters.

Bolstered by higher FFO per share, BioMed Realty increased its dividend by 36.5% to $1.31 per common share in 2014—its highest dividend in seven years.

The improving economy, favorable business fundamentals, and a focus on life science companies have led to strong demand for BioMed Realty’s properties.

BioMed Realty’s growth strategy aims to meet demands for specialized office and laboratory space by leveraging its local knowledge and management expertise.

A close look at BioMed Realty Trust’s EV-to-EBITDA multiple shows that its ratio is in line with its historical valuation, with a current ratio of ~14.8x.

Columbia Property Trust’s strategy is to invest in a property portfolio that provides the size, quality, and market needed to deliver long-term returns.

Many companies are looking to acquire properties in BioMed Realty’s core markets, thus enhancing competition for strategic properties.

BioMed Realty’s tenant base has the top names in biotechnology companies, scientific research institutions, governments, and other life science firms.

BioMed Realty focuses on value creation through development and redevelopment of old and new properties, aiming to develop space on all land it acquires.

BioMed Realty’s total property portfolio witnessed increased from 12.2 million square feet in 2010 to 17.5 million square feet in 2014.

Alexandria’s FFO payout ratio, which was 40.4% in 2010, increased to 61.8% in 2013 and 65.2% in 2014.

Alexandria (ARE) recorded an EBITDA margin of 62.5% in 2014, the lowest earnings margin recorded by the company in the last five years.

Alexandria’s strategy is to acquire, develop, and redevelop properties in target cluster markets.

Alexandria seeks property acquisition opportunities with in-place cash flows and the possibility of near-term lease-up.

Alexandria Real Estate Equities (ARE) has a diversified tenant base, which reduces the company’s dependence on any particular industry.

Alexandria Real Estate Equities’ total property portfolio has witnessed healthy growth during the past five years.

Alexandria Real Estate Equities (ARE) is a fully integrated, self-administered, and self-managed REIT.

FFO payout ratio is the dividend declared per common share divided by the diluted FFO per common share for a given period.

Highwoods Properties (HIW) is a fully integrated, self-administered, and self-managed REIT.

Kilroy Realty’s earnings margin is much higher than the industry average of 52.3% and those recorded by its peers.

Kilroy Realty expects its strategy to generate higher rental income and higher occupancy levels in the years to come.

Founded in 2005 and headquartered in California, Douglas Emmett is an REIT focused on high-quality commercial properties and luxury apartment communities.

FFO (funds from operations) is a measure used by REITs to define the cash generated from their operations.

As of fiscal ended 2014, 49.5% of the Kilroy Realty’s leases were long term in nature, expiring after 2020.

SL Green Realty (SLG) primarily generates revenue through leasing office space to corporate tenants.

Kilroy Realty (KRC) is present in some of the West Coast’s premier office sub-markets.

Boston Properties’ FFO increased to $5.26 per share in 2014, compared to $4.91 per share in 2013. Bolstered by high FFO, it increased its dividend by 46.4%.

The increase in Kilroy Realty’s office property portfolio was due to the acquisition of properties to create long-term value.

Kilroy Realty Corporation (KRC) was founded in 1996 by John B. Kilroy Jr.

Boston Properties’ FFO has risen steadily over the past five years, from $547.4 million in 2010 to $807.5 million in 2014—its highest in ten years.

SL Green’s focus on property acquisitions and dispositions bodes well for its healthy growth.

Boston Properties (BXP) consolidated costs were $1.6 billion for fiscal 2014—up by 12.1% over 2013—on the heels of a 25.7% total cost rise in 2013.

Boston Properties reported total revenues of $2.4 billion for fiscal 2014—up by a healthy 12.2% over 2013.

SL Green Realty is the second-largest publicly traded office REIT in the United States and is part of the S&P 500.

Boston Properties aims for high growth by managing properties, recycling capital, and operating in supply-constrained markets with high entry barriers.

Boston Properties’ average rental income has improved over the years due to acquisitions of high-quality properties and dispositions of low-return assets.

Boston Properties believes in generating consistent earnings growth and value creation over the coming years through existing and new property development.

Boston Properties concentrates on some of the highest-growth markets in the US, including Boston, New York, San Francisco, and Washington, D.C.

Commercial real estate investment trusts are sensitive to the interest rate, so these companies carefully analyze minutes from the Federal Open Market Committee meetings.

The index showed that overall activity in the non-manufacturing sector increased for the 55th consecutive month, and the rate of growth is accelerating.

Vornado has maintained a $0.73 dividend since early 2013. Late in 2012, it paid a $1 long-term capital gain along with its then-recurring dividend of $0.69 a share.

The index showed that overall activity in the non-manufacturing sector increased for the 53rd consecutive month, but the rate of growth is decelerating.

We’re seeing signs of strength in the employment market. Friday’s payroll reading was a mixed bag—payrolls were strong, but the drop in unemployment was due to a decrease in the labor force participation rate.

With “tapering” now a common term in Fed-speak, a new word is needed to address when we eventually step away from ZIRP (or zero interest rate policy). That word is “normalization.”

The strength of the services economy is an important driver of the office REITs like Boston Properties (BXP), Kilroy (KRC), Vornado Realty Trust (VNO), S.L. Green (SLG), and Highwoods (HIW).

While last week was a huge one for the builders, we still have a lot of important data this week, with the Case-Shiller Real Estate Index, New Home Sales, as well as the Personal Spending and Income data.

The National Federation of Independent Business is a monthly report that contains a wealth of information regarding trends for small businesses.