Investors Real Estate TrustNASDAQ
8% Yield And 40% Upside At The Beaten Down Investors Real Estate Trust
Dane Bowler • 26 Comments
Dane Bowler • 26 Comments
Thu, Sep. 15, 11:38 AM
- Board member Jeffrey Caira purchased 15K shares of company stock on Tuesday for $5.90 each, bringing his stake in IRET up to 43K shares.
- The company's Bakken exposure has been an issue, and though results last week met expectations, management warned of continued pressure. The $5.90 purchase price is within pennies of a multiyear low.
Fri, Sep. 9, 1:04 PM
Fri, Sep. 9, 10:01 AM
- The company posted FQ1 2017 FFO of $0.12 - down from $0.16 a year ago, but matching both consensus estimates, and that of D.A. Davidson's James Lykins.
- Same-store NOI fell $900K Y/Y thanks to lower revenues from energy-impacted markets in the Bakken Shale, says Lykins. Same-store occupancy fell 100 basis points to 93%.
- Management cited near-term supply/demand imbalance in certain multifamily markets. Though none were specifically named, one can assume they're talking about the Bakken, says Lykins.
- Full-year 2017 FFO guidance of $0.48-$0.54 per share compares to Lykins' $0.50 view (which is under review).
- IRET -2.3%
- Previously: Investors Real Estate Trust FFO in-line, beats on revenue (Sept. 8)
Thu, Sep. 8, 4:33 PM
Wed, Sep. 7, 5:35 PM
Thu, Sep. 1, 4:42 PM
Thu, Sep. 1, 7:29 AM
- With six separate deals, Investors Real Estate (NASDAQ:IRET) will sell 26 senior housing properties and one multifamily property for $236M. These sales are in addition to the exercise of purchase options by current tenants for another 8 senior housing properties in Idaho for $43.5M.
- Once everything closes, Investors will have disposed of its senior housing portfolio for a total of about $279.5M.
- The moves are part of company strategy to transform itself into a pure play multifamily company, says CEO Tim Mihalick.
Thu, Jul. 7, 8:47 AM
- Sales of higher-yielding properties "significantly decrease" NAV, FFO, and AFFO estimates, says analyst Drew Babin, downgrading Investors Real Estate Trust (NYSE:IRET) to Neutral from Outperform.
- While the portfolio may be being improved and the balance sheet delevered, it's going to be a damper on cash flow in the near-term.
- He cuts his price target to $7 from $8. Last night's close was $6.31.
Wed, Jun. 29, 4:54 PM
Tue, Jun. 28, 5:35 PM
Thu, Jun. 16, 10:20 AM
- Inside May's CPI report was a monthly rent increase of 0.4%, the strongest monthly increase sine 2007. The year-over-year rise was 3.8%, the highest since 2008.
- That far outpaces the average hourly wage increase of 1.4%.
- Associated tickers: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, APTS
Wed, Jun. 8, 9:49 AM
- Equity Residential (EQR -1%), AvalonBay Communities (AVB -1.1%), and Essex Property Trust (ESS -0.5%) are all downgraded to Hold from Buy at Jefferies.
- With market caps of $13B-$23B, these three are the apartment sector giants by a wide margin. They tend to play in the high-priced markets on the coasts (Essex is all West Coast).
- Equity Residential made big news late last year when it sold a big chunk of its portfolio - and when Sam Zell sells, it's worth paying attention to. The company made more news last week when it cut guidance thanks to weakness in San Francisco and New York (though management played this down at a conference yesterday).
- Other sector names: Post Properties (PPS +0.1%), UDR (UDR -0.8%), Aimco (AIV -0.5%), Camden Property (CPT -1%), Mid-America (MAA -0.3%), Investors Real Estate (IRET +1.6%), Independence Realty (IRT +0.4%), Monogram Residential (MORE -0.5%), NexPoint (NXRT), Preferred Apartment (APTS +0.6%), Bluerock Residential (BRG -0.2%)
Mon, Jun. 6, 9:44 AM
- The company this morning announces its intention to dispose of all healthcare and industrial properties, allowing it to focus on its multifamily platform.
- Fans will remember the company at the start of 2015 initiating a plan to focus on core assets, and in the nine months ending on Jan. 31, 5.1M square feet of commercial real estate was sold.
- According to presentation slides released alongside today's announcement, multifamily currently makes up 63% of IRET's portfolio, up from 44.6% at the start of 2015. Healthcare is 31%, and industrial 3.4%. Office and retail are each less than 2%.
- Shares +1.25%
Thu, Jun. 2, 4:45 PM
Thu, Apr. 28, 3:54 PM
- The national homeownership rate slipped to 63.5% at the end of Q1, according to the Census Bureau. That's thirty basis points lower than Q4 and twenty bps below the level of one year ago. At the peak in 2005, it topped 69%.
- The rental vacancy rate of 7% was flat from Q4 and down 10 bps from a year ago. In 2010, it was 10.6%. In the meantime, the median asking rent for rental units continues to move higher.
- Apartment REITs: EQR, AVB, ESS, PPS, UDR, AIV, CPT, MAA, IRET, IRT, MORE, NXRT, APTS, BRG
Wed, Apr. 27, 2:56 PM
- Investors Real Estate Trust (IRET -12.8%) has about 35% downside to $4.40 per share fair value, says Jonathan Litt's Land and Buildings. Among the negative catalysts are its exposure to energy-exposed markets (particularly North Dakota), and a highly leveraged balance sheet.
- Apartment rents are down 50% in some of the company's markets, says Litt. His team figures the dividend needs to be cut by 50% and earnings estimates by 15% or more.
- Land and Buildings, of course, is notable for its activism on the long side. This looks to be its first instance of publicly going short.
- Presentation slides