Kilroy Realty Corp

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).

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.

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

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

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.

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.

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.

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 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 (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.

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.

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

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 (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 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.

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.