VEREIT - Range-Bound And Down
William Stanley • 83 Comments
William Stanley • 83 Comments
Mon, Dec. 5, 9:41 AM
- Rising interest rates and limited upside from better economic growth thanks to long term leases have the team at BAML downgrading Realty Income (O -1.9%), National Retail Properties (NNN -1.5%), Vereit (VER -1.5%), and Spirit Realty (SRC -1.7%).
- Source: TheFly
- All have fallen in the area of 20% over the past three months, but still cling to small gains YTD.
- Seeking Alpha contributor Brad Thomas has a different take (at least on Realty Income): "Good grief please don't jump ship."
Fri, Dec. 2, 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%).
Tue, Nov. 15, 12:01 PM
- Fitch boosts the credit rating of Vereit (VER -0.7%) to BBB- with stable outlook.
- "An investment-grade rating from Fitch is validation of our safe balance sheet, bolstered by a well-laddered debt maturity schedule as a result of the May bond offering and other investment-grade metrics enhanced by our recent equity offering," says Vereit CEO Glenn Rufrano.
Mon, Nov. 14, 3:07 PM
- With interest rates shooting higher today, the REIT selloff resumed this morning, but there's been a major reversal, with the VNQ now up 2.5% and IYR +2% vs, the S&P 500's flat performance.
- Among the movers: Vereit (VER +1.4%), Omega Healthcare (OHI +3.5%), HCP (HCP +4.7%), Lexington Realty (LXP +4.8%), UDR (UDR +3.4%), General Growth (GGP +3.6%), CubeSmart (CUBE +1%), Host Hotels (HST +5.1%), Gramercy Property (GPT +3.2%).
Fri, Nov. 11, 12:53 PM
- Surging interest rates this week had investors pulling money from income favorites like REITs and utilities, and rotating into yield-starved banks, insurance companies, and brokerages.
- With the bond market closed for Veteran's Day, rates are taking the day off, and REITs and utilities (XLU +0.3%) are seeing a sizable bounce. VNQ +1.1%, IYR +0.9%
- Retails rates are thought to be more exposed than most to rising rates, and they were among the hardest hit. Today: Realty Income (O +1.6%), Vereit (VER +4.3%), National Retail (NNN +1%), Store Capital (STOR +4.3%)
- Other equity REITs: Omega (OHI +0.5%), LTC Properties (LTC +2%), Healthcare Trust (HTA +2.2%), Gramercy Property (GPT +3%), Gladstone Commercial (GOOD +4.3%), Lexington Realty (LXP +2.4%), General Growth (GGP +1%), Simon Property (SPG +1%), Retail Opportunity (ROIC +2.5%), Life Storage (LSI +1.4%), First Potomac (FPO +7.5%), Stag Industrial (STAG +1.5%)
Wed, Nov. 2, 7:40 AM
- Q3 adjusted FFO of $198.1M or $0.20 per share vs. $180.1M and $0.19 in Q2, $196.4M and $0.21 one year ago. Dividend is $0.1375.
- $278M of property sales at average cash cap rate of 6.6%.$803M of dispositions YTD brings total above the low end of guidance. Net debt cut to $6.5B from $7.5B. Net debt to normalized EBITDA cut to 5.7x from 6.6x.
- Cole Capital raised $136.4M of new equity capital.
- Full-year AFFO per share guidance is affirmed at $0.75-$0.78.
- Conference call at 1 ET
- Previously: VEREIT FFO in-line, beats on revenue (Nov. 2)
- VER flat premarket
Wed, Nov. 2, 6:17 AM
Tue, Nov. 1, 5:30 PM
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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
Thu, Sep. 8, 12:57 PM| Thu, Sep. 8, 12:57 PM | 16 Comments
Thu, Aug. 11, 5:24 PM
- VEREIT (NYSE:VER) declares $0.1375/share quarterly dividend, in line with previous.
- Forward yield 5.24%
- Payable Oct. 17; for shareholders of record Sept. 30; ex-div Sept. 28.
Fri, Aug. 5, 7:32 AM
Thu, Aug. 4, 4:27 PM
Wed, Aug. 3, 8:22 AM
- Q2 adjusted FFO of $180.1M or $0.19 per share vs.$202.3M and $0.22 one year ago.
- The company in June issued $1B in senior notes and entered into a new $300M bank term loan agreement. Proceeds from the two were used to help redeem $1.3B of outstanding 2% senior notes due next year (took place after the end of Q2). The early refinancing means a $0.02 cut in the top end of full-year AFFO per share guidance to $0.75-$0.78.
- "Culling of the portfolio remains on track," says CEO Glenn Rufrano, noting $612M of sales this year, with accelerated activity on Red Lobster sales.
- Same-store rent increases were flat Y/Y.
- Cole Capital AFFO of $2.5M vs. $7M earned one year ago. The operation did raise $174.1M during the quarter vs. $91.4M raised in Q2 one year ago.
- CC at 1 ET
- Previously: VEREIT FFO in-line, beats on revenue (Aug. 3)
- VER flat premarket
Wed, Aug. 3, 6:29 AM