Why I Bought American Realty Capital Properties
Weighing Machine • 100 Comments
Weighing Machine • 100 Comments
American Realty Capital Properties: Rapid Growth At A Cheap Price
Dane Bowler • 131 Comments
Dane Bowler • 131 Comments
ARCP Is A REIT That I Trust But I Will Wait To Verify
Brad Thomas • 48 Comments
Brad Thomas • 48 Comments
Fri, Jun. 24, 10:30 AM
- A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
- A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
- The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
- Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
- The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMU, VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
Wed, May 18, 2:42 PM
- The yield on these income-producers may be about to face some more competition as the FOMC minutes suggest a June rate hike is on the way. The IYR is now lower by 2.2%.
- Individual names: Realty Income (O -3.2%), Welltower (HCN -4.1%), Omega Healthcare (OHI -3.3%), HCP (HCP -3.5%), Medical Properties (MPW -3.3%), Vereit (VER -3.5%), Equity Residential (EQR -1.2%), AvalonBay (AVB -1.8%), SilverBay Realty (SBY -1%), Public Storage (PSA -2.2%), Boston Properties (BXP -3.1%), Hospitality Properties (HPT -2.2%), Pebblebrook Hotel (PEB -3.8%), Stag Industrial (STAG -2.2%)
- ETFs: VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, FRI, DRA, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX
- Previously: Mortgage REITs dive on FOMC surprise (May 18)
Fri, Mar. 11, 5:38 PM
Dec. 31, 2015, 5:42 PM
Nov. 6, 2015, 11:20 AM
- Vereit (NYSE:VER) managed a nice gain yesterday after an inline earnings report. Also announced was the sale of $204M of Red Lobster properties to Golden Gate Capital (a P-E firm which owns the Red Lobster brand), as well as a partnership with GGC to opportunistically unload another $400M of restaurant real estate.
- The company expects to have sold all the properties in the partnership by the end of next year.
- The $204M in sales were made at a cap rate of 7.78%, or 2% above their purchase price. As the rest of the properties are going to be sold singly, or in smaller groups, the company hopes to sell cap rates of at least 150 basis points less.
- Speaking on the conference call (transcript), CEO Glenn Rufrano says the company is in pretty consistent contact with the ratings agencies, but will be sure and soon let them know of the sales.
- JPMorgan upgrades to Neutral from Underweight.
- The stock has given back yesterday's gain and more, as the REIT sector as a whole gets swamped by a big move higher in interest rates. It's down 2.45% on the session.
- Previously: VEREIT FFO in-line, beats on revenue (Nov. 5)
Aug. 21, 2015, 3:30 PM
- These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
- The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
- Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
- Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
- Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
- Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
Jul. 15, 2015, 12:11 PM
- Corvex Capital's Keith Meister names American Realty Capital Properties (ARCP +2.9%) as his "best idea" while presenting at the Delivering Alpha conference.
- Meister last December disclosed a 7.1% stake in the company in the wake of its accounting issues, and earlier this year pushed to gain a seat on the board.
Jun. 25, 2015, 4:17 PM
- The XLU underperformed again today, losing 0.7% and bringing its year-to-date decline to more than 12%.
- Looking at equity REITs, the IYR dipped another 0.95% and VNQ fell 1%. Both are down about 6% in 2015, and roughly 15% since late January. Some individual names: Spirit Realty (SRC -2.8%), Senior Housing (SNH -1.2%), HCP (HCP -1.4%), American Realty Capital (ARCP -3%), Gramercy Property (GPT -2.8%), Duke Realty (DRE -2%).
- In mortgage REITs, REM lost 0.9% today and is off 7% YTD. Some individual names: American Capital Agency (AGNC -1.2%), Armour (ARR -1%), CYS Investments (CYS -0.9%), Annaly Capital (NLY -0.8%), Invesco Mortgage (IVR -1.2%), Apollo Residential (AMTG -1.1%), PennyMac Mortgage (PMT -2.3%), Western Asset Mortgage (WMC -2.7%).
- The 10-year Treasury yield gained three basis points to 2.40%.
- Previously: Sell-side abandoning REITs as rates rise (June 25)
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
Mar. 30, 2015, 7:35 AM
- Q4 adjusted FFO of $205.5M or $0.22 per share vs. $70.5M and $0.26 one year earlier. Real estate investment segment AFFO of $193.9M or $0.21 per share vs. $70.5M and $0.26. Cole Capital segment AFFO of $11.5M or $0.01 per share (company didn't own Cole a year ago).
- There's no dividend announcement yet, but company expects it to be inline with net lease peers.
- Conference call at 10 ET.
- Previously: American Realty Capital misses by $0.02, beats on revenue (March 30)
- ARCP +2% premarket.
Mar. 30, 2015, 7:03 AM
- American Realty Capital (NASDAQ:ARCP): Q4 AFFO of $0.22 misses by $0.02.
- Revenue of $418.8M (+207.0% Y/Y) beats by $27.8M.
- Shares +1.52% PM.
Mar. 25, 2015, 9:40 AM| Mar. 25, 2015, 9:40 AM | 23 Comments
Mar. 2, 2015, 9:15 AM
Mar. 2, 2015, 7:31 AM
- "The audit committee's investigation did not identify any material changes relating to ARCP's real estate ownership, rental revenue or fundamental business operations. The probe also found no changes to the financial statements or operations of the Cole Capital non-traded REITs.
- For full-year 2013, AFFO is cut by $43.9M or $0.20 per share vs. what was originally reported.
- Q1 2014 AFFO is cut by $38.5M or $0.07 per share. It was originally reported at $0.26.
- Q2 2014 AFFO is cut by $19.3M and $0.03 per share. It was originally reported as $0.24.
- Q3 2014 AFFO - reported for the first time - is $244.5M or $0.26 per share vs. $72.1M and $0.28 one year earlier (after restatement).
- Q4 results and the 10-K are expected to be reported by the end of this month.
- SEC filings
- A conference call is set for 8:30 ET
- Shares -1.1% premarket
Feb. 27, 2015, 12:18 PM
Dec. 30, 2014, 9:11 AM
Dec. 29, 2014, 7:17 PM
- Keith Meister's Corvex Management discloses a stake of nearly 65M shares, or 7.1% of troubled American Realty Capital (NASDAQ:ARCP).
- "It is clear to the Reporting Persons that this is a time of transition and a unique opportunity for a ‘new start’ for the company and its shareholders," says Corvex in the 13D, also disclosing it's had discussions with ARCP management.
- Corvex most recently was behind the overthrow of the board and management at Commonwealth REIT (now renamed Equity Commonwealth).
- Shares +6.1% after hours, following a 2.2% gain in the regular session.
- "The ARCP Board of Directors is pleased that Corvex shares its belief that ARCP is an attractive investment," says the company, commenting on the Corvex filing.
VEREIT, Inc. provides real estate investment services. It operates though the following segments: Real Estate Investment and Cole Capital. The Real Estate Investment segment acquires, owns and operates single tenant, freestanding, commercial real estate properties, primarily subject to long term... More
Industry: REIT - Diversified
Country: United States
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