Governance Rankings of Commercial Real Estate Companies

Audit Integrity has issued rankings of US commercial real estate companies, based on how aggressive they are in their corporate governance practices.

Companies in Audit Integrity’s bottom-ranked Very Aggressive AGR category have had consistently opaque financial reporting, weak corporate governance, and as a group are expected to have returns inferior to their peers over the next three months on a total return basis. Conversely, companies in the top-ranked Conservative AGR category have had consistently transparent financial reporting, strong corporate governance, and as a group are expected to surpass their peers over the next three months on a total return basis.

Audit Integrity says Very Aggressive companies underperformed Conservative companies by 15.7 percentage points in trailing twelve month returns.

Worst performing among the Very Aggressive group isProLogis (NYSE: PLD - down 86.3 percent) while the best performing among the Conservative group are Home Properties (NYSE: HME - down 21.7 percent) and EastGroup Properties (NYSE: EGP - down 21.8 percent.)

CreditSights noted April 30 that ProLogis “recorded FFO ahead of estimates as results for the quarter were adequate, but the more interesting story has been the improvement on the leverage and liquidity fronts.”

The full Audit Integrity report is available here.

Comments

[BxCapricorn:]

Sorry, but the stock market is telling me that commercial RE is king, homebuilders will be building like ants, banks are more than solvent, and the consumer is both confident and flush with cash, ready to spend it on every little thing plastic doo-dad made in China, at huge mark-ups.

May 04 05:59 PM

[medallionstock:]

Medical REITs stand to benefit considerably from the Obama Health Care policy. Yahoo Finance has an article discussing this issue:
finance.yahoo.com/news...

Sep 23 12:12 PM