Yesterday, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
- XLF -1%, KBE -0.7%, KRE -0.7%.
- Individual issues: Bank of America (BAC -1.8%), Morgan Stanley (MS -1.2%), Citigroup (C -1.9%), M&T (MTB -1.1%), Flagstar (FBC -1.7%), Fifth Third (FITB -1.6%), PNC Financial (PNC -1.4%), Prudential (PRU -1.1%), Lincoln National (LNC -1.9%), Schwab (SCHW -2.1%), State Street (STT -1.8%)
- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Mon, Nov. 14, 10:03 AM
- The bond market was closed on Friday, keeping rates in check and allowing REITs a respite from the week's bout of selling. The respite was short-lived though, with the selloff resuming this morning as the 10-year Treasury yield jumps 10 basis points to 2.255%.
- Realty Income (O -1.5%), Public Storage (PSA -1.3%), Welltower (HCN -0.6%), Equity Residential (AVB -1.6%), AvalonBay (AVB -1.6%), Simon Property (SPG -1.5%), Kimco (KIM -0.5%), Eastgroup (EGP -0.5%), American Campus (ACC -1.7%).
- Fading the action are some office REITs as players eye a big boost in government spending: Government Properties (GOV +1.6%), Boston Properties (BXP +1%), First Potomac (FPO +1.2%).
- Also fading the negativity despite the stronger dollar are the previously very roughed-up lodging REITs as perhaps they discount a stronger economy: Ashford Hospitality (AHT +3.7%), Sunstone Hotel (SHO +3.2%), LaSalle Hotel (LHO +2.2%), Pebblebrook Realty (PEB +3.7%), Summit Hotel (INN +1.6%), Hospitality Properties (HPT +1.2%), RLJ Lodging (RLJ +2.8%)
- Previously: "Bond vigilantes" term comes out of retirement (Nov. 14)
- ETFs: VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF
Wed, Nov. 9, 1:48 PM
- The 10-year U.S. Treasury yield is higher this session by 21 basis points to 2.07% after having fallen as low as 1.70% at one point last night. TLT -4%, TBT +8%
- On the shorter end, Fed Funds futures - after last night having priced out any chance of rate hike in December - have returned to pricing in nearly 100% chance of a move.
- Facing more serious competition for yield, utilities (XLU -3.4%) and REITs (VNQ -1.7%) are having a rough session.
- Individual REIT names: Realty Income (O -5.1%), Spirit Realty (SRC -3.3%), Omega Healthcare (OHI -2%), Welltower (HCN -3.1%), Equity Residential (EQR -2.4%), AvalonBay (AVB -2.1%), General Growth (GGP -2.3%), Kimco (KIM -2.3%), DDR (DDR -2.3%).
- Notably fading the move even as the dollar turns sharply higher are the lodging REITs: Ashford (AHT +2.9%), LaSalle Hotel (LHO +3.1%), Pebblebrook Hotel (PEB +3.9%), Chatham Lodging (CLDT +4.2%), Hersha (HT +3.7%)
Wed, Nov. 2, 10:21 AM
- The senior living/healthcare REIT space continues in major flux, with today Welltower (HCN -0.1%) boosting its full-year disposition guidance all the way to $4.1B from $1.6B.
- The new guidance includes about $1.7B of Genesis Healthcare (GEN +1.9%) properties to be executed in three separate deals already closed or under agreement. Two of the sales are to third parties, and the third is a JV between HCN (25%) and another investor (75%), and includes a combination of Genesis and Brookdale Senior Living (BKD +3.9%) properties.
- For Welltower, its pro forma revenues from private pay will rise to 92.4% of total from 89.4% seen in Q3. More Genesis sales are expected in 2017. A conference call is underway.
- Previously: HCP sells Brookdale portfolio to Blackstone fund, Brookdale (Nov. 1)
- Previously: Welltower beats by $0.01 (Nov. 2)
Wed, Nov. 2, 8:19 AM
- Welltower (NYSE:HCN): Q3 FFO of $1.16 beats by $0.01.
Tue, Nov. 1, 5:30 PM
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Thu, Oct. 27, 5:39 PM
Thu, Oct. 27, 10:42 AM
- The 10-year Treasury yield is making new bear-cycle highs today, up another seven basis points to 1.86% - its perkiest level since May. The move up in yields is global, with U.K. 10-years up 11 bps and Germany's up 8.5 bps.
- Earlier today, the U.K. reported Q3 GDP growth of 0.5% - far better than what had been predicted post-Brexit.
- Facing at least a little more competition in the yield department, equity REITs have turned sharply lower, with VNQ down 2.1%, and IYR off 1.8%. Mortgage REITs (REM -0.6%) are faring a little better as solid Q3 earnings begin to roll in.
- The major U.S. averages have given up early gains and turned red, led by the S&P 500 and Nasdaq, both off 0.25%.
- Individual equity REITs: Verreit (VER -2.2%), Welltower (HCN -2.4%), Equity Residential (EQR -1.6%), Omega Healthcare (OHI -3.2%), Simon Property (SPG -3.2%), General Growth (GGP -2.6%), Public Storage (PSA -2.9%), Gramercy Property (GPT -1.9%), Washington Real Estate (WRE -1.2%), Hersha (HT -2.9%), Sunstone Hotel (SHO -1.4%), Stag Industrial (STAG -2%)
- Mortgage REITs: AGNC Investment (AGNC -1.5%), Annaly (NLY -0.7%), Two Harbors (TWO -0.4%), Capstead (CMO +0.3%)
- ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX, RORE
Tue, Oct. 4, 4:29 PM
- Chatter of the ECB's plan to begin tapering monthly bond purchases sent interest rates sharply higher today, and REITs sharply lower.
- The 10-year Treasury yield gained 6.3 basis points to 1.688%.
- The mortgage REITs (REM -2.2%): Annaly (NLY -3.1%), Armour (ARR -1.2%), Two Harbors (TWO -2.9%), Chimera (CIM -3.9%), CYS (CYS -2.4%), Invesco (IVR -3%), Western Asset (WMC -2.8%), MFA Financial (MFA -2.7%), AG Mortgage (MITT -3.1%)
- Equity REITs (VNQ -1.4%): Realty Income (O -2.6%), WellTower (HCN -2.6%), HCP (HCP -2%), Vereit (VER -2.3%), Equity Residential (EQR -0.9%), Simon Property (SPG -1.5%), Public Storage (PSA -1.8%), Government Properties (GOV -2.7%), Gramercy Property (GPT -2.2%), Stag Industrial (STAG -3%)
- ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX
Tue, Aug. 2, 8:01 AM
- Q2 normalized FFO of $414.4M or $1.15 per share vs. $383.7M and $1.09 a year ago. Normalized FAD of $373.1M or $1.04 per share vs. $332.1M and $0.95 a year ago. Dividend of $0.86 up from $0.825.
- Same-store NOI up 3.3%, led by 4% growth in seniors housing portfolio. Seniors housing operating occupancy up 100 bps to 90.3%, with RevPOR growth of 3.8%.
- Alongside earnings, company announces an agreement to buy a West coast portfolio of 19 seniors housing communities for $1.15B at a stabilized yield of mid-to-high 6%. The 2,590 units are concentrated in NoCal an SoCal.
- Full-year guidance is affirmed: Normalized FFO per share of $4.50-$4.60; FAD of 3.95-$4.05.
- Conference call at 10 ET
- Previously: Welltower beats by $0.01, beats on revenue (Aug. 2)
- HCN flat premarket
Tue, Aug. 2, 7:34 AM
Mon, Aug. 1, 5:30 PM
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Thu, Jul. 28, 5:47 PM
Wed, Jun. 22, 8:10 AM
- Cut to Underweight from Equal Weight is HCP, with analyst Vikram Malhotra expecting the market to price in an elevated risk of rent cuts. As for the spin off the nursing business, he doesn't anticipate it to be a material catalyst.
- Welltower (NYSE:HCN) is downgraded to Equal Weight from Overweight for similar reasoning.
- As for the scorecard this year, HCN is higher by 8%, while HCP is down 8.4%.
Wed, Jun. 8, 3:59 PM
- "[We] will not hand you a leaking, steaming bag of real estate and say, 'Here, you go, do what you want to do with it,'" says Welltower (HCN +1.6%) CEO Tom DeRosa at REITWeek, giving his take on HCP's (HCP +0.9%) planned spinoff of HCR ManorCare (or VTR's spin of CCP).
- If the properties are a headache, says DeRosa, it's a REIT manager's job to sell them and put the capital into better investments.
- HCP CEO Lauralee Martin counters that a sale wouldn't capture the full value of the assets, and she suggests a focused spin may have ways of dealing with the troubled tenant. "Anybody can sell garbage, but the real question is, what if it's worth more than that?"
Thu, Jun. 2, 3:36 PM
- Moody's upgrades Welltower's (HCN +0.5%) senior unsecured debt to Baa1 from Baa2, and shifts the outlook to stable from positive.
- The agency notes Welltower's success and growing and improving its healthcare real estate portfolio, while also reducing leverage. The stable rating reflects Moody's expectation that progress will continue, with a focus on private pay assets.
- Putting some numbers on it, effective leverage was 43% as of Q1 vs. 51% at year-end 2011. Net debt/EBITDA of 5.9x fell from 7.8x. Planned asset sales for this year should further reduce leverage.