Kilroy Realty Corp
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.
Good credit conditions help commercial REITs like Boston Properties
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).
A rebound in capacity utilization helps office REITs like SL Green
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’ 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.
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.
Must-know: Thinking about quantitative easing going forward
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.
Why small business optimism continues to recover slowly
Small business accounts for roughly half of the U.S. gross domestic product (or GDP) and jobs.
Why does the Fed now see increasing confidence in credit?
On the household front, it noted that home price appreciation continues—although it did say it believed credit standards remain tight.
Must-know: Why did the service sector report a pick-up in May?
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 jobs report looms large this week for REITs and homebuilders
The upcoming week will be about the jobs report on Friday, which is the biggest driver of Fed policy at the moment.
How Prologis Boosted Top-Line Growth in 2Q17
Prologis’s (PLD) upbeat top-line and bottom-line results in 2Q17 were driven by higher-than-expected rent growth and net operating income.
Why a service sector rebound in March affects key office REITs
The index showed that overall activity in the non-manufacturing sector increased for the 50th consecutive month and the pace of growth is accelerating.
Jobs report shows hiring is picking up—good for commercial REITs
Private sector employment increased by 238,000 in December, while November’s numbers were revised upward from 215,000 to 229,000.
Why capacity utilization is an important economic indicator
Capacity utilization rates are approaching long-term historical averages.
Must know: Why the rise in job openings is good for office REITs
The activity and decisions of the Fed are probably the biggest driver of returns in the financial sector right now.
Vornado Realty Trust’s 3Q14 earnings: Company overview
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.
Why the ISM Services report drives REITs like Boston Properties
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).
Capacity utilization approaches historical levels, helping REITs
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.
The US witnesses an unexpected drop in capacity utilization
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.
JOLT job openings are flat at 13-year highs, driving office REITs
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.
Must-konw update: Small business optimism hurt by the deep freeze
Small business accounts for roughly half of the U.S. GDP and jobs.
How Prologis Has Managed to Remain Afloat amid Online Hype
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.
Why credit conditions ease, but mortgage credit is still tight
Overall, the financial situation didn’t change materially between the April and June Federal Open Market Committee (or FOMC) meetings.
Why the Fed’s economic projections became more optimistic
The staff economists took up their near-term estimate of GDP growth based on stronger retail sales despite the government shutdown.
Must-know: Vornado maintains dividends and plans spin-off
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.
The US services economy continues to hum along
Expansion was reported in 16 of the industries. The best-performing sectors were construction, retail, and agriculture. Two industries—entertainment and utilities—reported declines.
Must-know: Why all commercial real estate is local
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.
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.
Bonds rally on the slightly bullish FOMC minutes
Bonds rallied on the FOMC minutes, touching as low as 1.93% before selling off and finishing the day with a modest rally.
Rates are falling, but corporate spreads are widening
The Fed noted that during the October through December intermeeting period, long-term interest rates fell and corporate spreads widened.
The push-pull effect of economic strength on the REIT sector
Economic forces that work at cross-purposes are driving the commercial REIT sector. Economic strength is good, but increasing interest rates are a negative.
Bonds Rally And Commercial REITs Analyze The October FOMC Minutes
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.
Pay attention to office REITs’ focus on geography
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 […]
Why geography matters to REIT investors
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.
How Prologis Stacks Up against Peers after 2Q17 Earnings
The price-to-FFO multiple is the best way to evaluate Prologis (PLD).
How Prologis Improved Its Balance Sheet
Prologis maintained a debt-to-equity ratio of 0.75x for 2Q17, which was lower than the industrial mean of 1.07x.
Robust US Business Growth Helped Prologis in 2Q17
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’s Strong 2Q17 Results Backed by Rent Growth
Prologis (PLD) reported better-than-expected 2Q17 top-line and bottom-line results.
Where Does Prologis Stand after 2Q Earnings?
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%.
Prologis: What Analysts Recommend for the Stock
Analysts have assigned Prologis stock a mean price target of $58.47, which is 2.1% higher than its current price of $57.28.
Where Does Prologis Stand among Its Peers?
In terms of price-to-FFO multiple, PLD trades at par with most of its peers except Brandywine Realty Trust (BDN).
Will Prologis Be Able to Turn Macro Issues to Its Advantage?
In addition to Prologis’s strategic initiatives such as acquisitions, dispositions, and project development activities, several macroeconomic factors also impact performance.
The Factors behind Prologis’s Expected 2Q17 Upbeat Results
Wall Street expects Prologis to report adjusted FFO (funds from operations) of $0.76, a 27.3% rise year-over-year.
Can Prologis’s Cost Reductions Drive Net Operating Income Higher?
According to Wall Street analysts, Prologis (PLD) is expected to report NOI (net operating income) of $440.2 million in 2Q17.
Prologis’s Main Revenue Drivers in 2Q17
Prologis (PLD) is expected to see higher revenue growth as well as higher margins for 2Q17.
Will Prologis Ride High on Its Top Line in 2Q17?
Analysts expect Prologis (PLD) to report revenue of $583.5 million for 2Q17 when it releases its earnings on July 18, 2017.
What’s in Store for Prologis in 2Q17?
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.
Prologis on the Street: How Analysts See PLD Stock
The analysts covering Prologis have assigned the stock a mean price target of $57.8, which is the same as its current price level.
Understanding Prologis’s Multiples Next to Those of Peers
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.
Prologis’s Health by Leverage
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.
Inside Prologis’s Relationship with Its Shareholders
Commerical REITs (real estate investment trusts) have to pay at least 90% of their taxable income as dividends or share buybacks.
Prologis, Rising Interest Rates, and President Trump: Curses, or Blessings in Disguise?
Rising optimism in US markets bodes well for commercial REITs like Prologis, Duke Realty, Kilroy Realty, and Boston Properties.
Why Prologis’s Business Model Promises Consistent Profitability
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.
Analyzing BioMed Realty’s Higher FFO Payout Ratio
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.
Higher Demand Likely to Drive BioMed Realty’s Occupancy in 2016
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 Other Strategy: Generating Sustainable Growth
BioMed Realty’s growth strategy aims to meet demands for specialized office and laboratory space by leveraging its local knowledge and management expertise.
Interpreting BioMed Realty’s EV-to-EBITDA Multiple
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.
What is CXP’s Strategy to Enhance Its Competitive Position?
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.
BioMed Realty’s Property Acquisitions Have Been Enhancing Its Portfolio Quality
Many companies are looking to acquire properties in BioMed Realty’s core markets, thus enhancing competition for strategic properties.
BioMed Realty’s Quality Tenant Base and Triple Net Leases Ensure Steady Cash Flows
BioMed Realty’s tenant base has the top names in biotechnology companies, scientific research institutions, governments, and other life science firms.
BioMed Realty’s Strategy: Adding Value through Property Development and Redevelopment
BioMed Realty focuses on value creation through development and redevelopment of old and new properties, aiming to develop space on all land it acquires.
An Overview of BioMed Realty’s Specialized Property Portfolio
BioMed Realty’s total property portfolio witnessed increased from 12.2 million square feet in 2010 to 17.5 million square feet in 2014.
Analyzing Alexandria’s Higher Funds from Operations Payout Ratio
Alexandria’s FFO payout ratio, which was 40.4% in 2010, increased to 61.8% in 2013 and 65.2% in 2014.
Alexandria: Earnings Margin to Remain at an Elevated Level
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 to Generate Sustainable Growth
Alexandria’s strategy is to acquire, develop, and redevelop properties in target cluster markets.
Property Acquisitions May Boost Alexandria’s Operating Income
Alexandria seeks property acquisition opportunities with in-place cash flows and the possibility of near-term lease-up.
Alexandria: Diversified Tenant Base and Lease Expirations
Alexandria Real Estate Equities (ARE) has a diversified tenant base, which reduces the company’s dependence on any particular industry.
An Overview of Alexandria’s Property Portfolio
Alexandria Real Estate Equities’ total property portfolio has witnessed healthy growth during the past five years.
Alexandria Real Estate Equities: What Does It Do?
Alexandria Real Estate Equities (ARE) is a fully integrated, self-administered, and self-managed REIT.
Analyzing Kilroy Realty’s Funds from Operations Payout Ratio
FFO payout ratio is the dividend declared per common share divided by the diluted FFO per common share for a given period.
Highwoods Properties: What Does It Do?
Highwoods Properties (HIW) is a fully integrated, self-administered, and self-managed REIT.
Kilroy Realty: Standing Tall with Highest Earnings Margin
Kilroy Realty’s earnings margin is much higher than the industry average of 52.3% and those recorded by its peers.
What Is Kilroy Realty’s Value Creation Strategy?
Kilroy Realty expects its strategy to generate higher rental income and higher occupancy levels in the years to come.
Getting to Know Douglas Emmett: An REIT Heavy Hitter Worth Watching
Founded in 2005 and headquartered in California, Douglas Emmett is an REIT focused on high-quality commercial properties and luxury apartment communities.
Evaluating SL Green’s Higher Funds from Operations
FFO (funds from operations) is a measure used by REITs to define the cash generated from their operations.
Kilroy Realty: Lease Expiration and Tenant Management
As of fiscal ended 2014, 49.5% of the Kilroy Realty’s leases were long term in nature, expiring after 2020.
Why Has SL Green’s Revenue Growth Remained Moderate?
SL Green Realty (SLG) primarily generates revenue through leasing office space to corporate tenants.
An Insight into Kilroy Realty’s Geographic Coverage
Kilroy Realty (KRC) is present in some of the West Coast’s premier office sub-markets.
Boston Properties’ Higher FFO Payout Ratio, or Why Dividends Matter
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%.
A Look at Kilroy Realty’s Property Portfolio
The increase in Kilroy Realty’s office property portfolio was due to the acquisition of properties to create long-term value.
Kilroy Realty Corporation: What Does it Do?
Kilroy Realty Corporation (KRC) was founded in 1996 by John B. Kilroy Jr.
Sizing up Boston Properties’ Funds from Operations
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.
Property Acquisitions and Dispositions: Key to SL Green’s Growth
SL Green’s focus on property acquisitions and dispositions bodes well for its healthy growth.
Boston Properties’ Cost Structure, EBITDA Margin, and Other Must-Knows
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.
Why Boston Properties’ Revenue Growth Keeps Looking So Good
Boston Properties reported total revenues of $2.4 billion for fiscal 2014—up by a healthy 12.2% over 2013.
SL Green Realty: What Does It Do?
SL Green Realty is the second-largest publicly traded office REIT in the United States and is part of the S&P 500.
Breaking Down Boston Properties’ Value Creation Strategy
Boston Properties aims for high growth by managing properties, recycling capital, and operating in supply-constrained markets with high entry barriers.
A Nod to Boston Properties’ Key Growth Drivers, Acquisitions and Dispositions
Boston Properties’ average rental income has improved over the years due to acquisitions of high-quality properties and dispositions of low-return assets.
Why Property Development Matters So Much to Boston Properties
Boston Properties believes in generating consistent earnings growth and value creation over the coming years through existing and new property development.
Making Sense of Boston Properties’ Geographically Concentrated Portfolio
Boston Properties concentrates on some of the highest-growth markets in the US, including Boston, New York, San Francisco, and Washington, D.C.
Bonds rally on the dovish FOMC minutes
Commercial real estate investment trusts are sensitive to the interest rate, so these companies carefully analyze minutes from the Federal Open Market Committee meetings.
Services activity hits a record in August, supporting office REITs
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 maintains its dividend and plans to spin off its retail portfolio
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.
Institute for Supply Management non-manufacturing survey grows
The index showed that overall activity in the non-manufacturing sector increased for the 53rd consecutive month, but the rate of growth is decelerating.
Why economic strength can be a double-edged sword for office REITs
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.
Why the April FOMC minutes were no surprise to bond investors
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.”
Why you should focus on geography’s role in the office REIT cycle
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).
Important releases for homebuilder and REIT investors this week
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.
Why a small business hiring boom is good for office REITs
The National Federation of Independent Business is a monthly report that contains a wealth of information regarding trends for small businesses.