Wed, Apr. 22, 4:07 PM
Tue, Apr. 21, 5:35 PM| Tue, Apr. 21, 5:35 PM | 6 Comments
Tue, Apr. 21, 3:54 PM
- The REITs are down about 8% from their January highs while the homebuilders have posted gains, bringing the ratio of homebuilders to REITs to long-term resistance, says MKM Partners' Jonathan Krinsky, who suggests fading the move.
- Most vulnerable to tactical pullbacks are those homebuilders/suppliers showing the weakest relative strength: Beazer Homes (NYSE:BZH), Lennar (NYSE:LEN), Louisiana-Pacific (NYSE:LPX), Taylor Morrisn (NYSE:TMHC), Toll Brothers (NYSE:TOL), and TRI Pointe Homes (NYSE:TPH).
- The best long REIT ideas are those showing the best relative strength: AvalonBay (NYSE:AVB), Crown Castle (NYSE:CCI), Essex Property (NYSE:ESS), Extra Space Storage (NYSE:EXR), Federal Realty (NYSE:FRT), General Growth (NYSE:GGP), SL Green (NYSE:SLG), and UDR.
- Those REITs showing poor relative strength or to be avoided or sold: American Tower (NYSE:AMT), American Realty Capital (NASDAQ:ARCP), Brixmor (NYSE:BRX), Host Hotels (NYSE:HST), and Omega Healthcare (NYSE:OHI).
- Source: Barron's
Mon, Feb. 23, 12:07 PM
- Among the additions to the index (which fuels the IBLN ETF) are EMC, Google (GOOG, GOOGL), Goodyear (NASDAQ:GT), Mohawk Industries (NYSE:MHK), PVH, Time Warner (NYSE:TWX), and Yahoo (NASDAQ:YHOO). There are three health care additions as well: Allergan (NYSE:AGN), Amgen (NASDAQ:AMGN), and HCA. The lone energy name added is Consol Energy (NYSE:CNX).
- Exiting the index are energy names Halliburton (NYSE:HAL) and National-Oilwell Varco (NYSE:NOV), along with healthcare companies AbbVie (NYSE:ABBV), Aetna (NYSE:AET), Humana (NYSE:HUM), and Tenet Healthcare (NYSE:THC). Citigroup (NYSE:C), CBS, Crown Castle (NYSE:CCI), and Michael Kors (NYSE:KORS) round out those subtracted.
- IBLN tracks the highest-conviction S&P 500 picks by hot-handed billionaires who built their fortunes through hedge funds and investing. The list of billionaires tracked is updated each October, and the equity components are rebalanced each quarter after sifting through regulatory filings.
- IBillionaire Index Rebalance
Tue, Feb. 17, 8:01 PM
- Crown Castle International (NYSE:CCI) is looking at selling its Australian subsidiary CCAL, based on "unsolicited offers" the company has received -- and Zacks notes CCI needs to reduce debt burden and focus on U.S. operations.
- CCAL -- the largest independent wireless tower operator in Australia -- is likely to lose its tax shelter tied to deprectation in the near future, Zacks says.
- CCI owns 77.6% of CCAL -- which is projected to make up 4-5% of CCI's 2015 adjusted EBITDA of $2.15B -- and had an intercompany loan of about A$306M (about $239M) due from CCAL on Dec. 31.
- CCI's total debt-to-assets: 55.79; total debt-to-equity: 167.39.
Tue, Feb. 17, 4:22 PM
Wed, Jan. 21, 7:10 PM
- Crown Castle (NYSE:CCI) uses its Q4 report to hike its 2015 AFFO/share guidance range by $0.02 to $4.33-$4.39 (still below a $4.45 consensus). Q1 AFFO/share guidance has been set at $1.09-$1.10 (above a $1.08 consensus).
- Site rental revenue guidance has been upped by $10M to $3.058B-$3.078B (4% organic growth at the midpoint), and adjusted EBITDA guidance by $14M to $2.14B-$2.16B.
- Q4 site rental revenue +17% Y/Y to $761M (+6.6% organic). Network services/other revenue +40% to $206.2M. The AT&T deal (closed in Dec. 2013) provided a major top-line boost.
- Crown Castle ended Q4 with $11.7B in net debt, up from $11.3B at the end of Q3.
- CCI +0.9% AH. The dividend yield is currently 4%.
- Q4 results, PR
Wed, Jan. 21, 4:05 PM
Tue, Jan. 20, 5:35 PM
Dec. 2, 2014, 10:53 AM
- Raymond James has downgraded American Tower (AMT -2.5%) to Outperform from Strong Buy, and Crown Castle (CCI -2.3%) to Market Perform from Outperform. Peer SBA (SBAC -2.2%) is off in sympathy.
- AMT and SBAC have rallied strongly this year; CCI has seen more moderate gains.
- A month ago: Goldman, Macquarie downgrade AMT; CCI receives upgrade and downgrades
Nov. 3, 2014, 8:48 AM
- Goldman and Macquarie have both downgraded American Tower (NYSE:AMT) to Neutral, and Nomura has issued a similar downgrade for Crown Castle (NYSE:CCI). Meanwhile, Goldman has upgraded CCI to Buy, and Raymond James has downgraded the company to Outperform from Strong Buy.
- AMT rallied on Thursday thanks to a strong Q3 AFFO figure and a full-year guidance hike. CCI sold off on Friday due to the company's soft 2015 outlook.
- Macquarie's Kevin Smithen says his firm has spent the last few days conducting checks to "try and reconcile" AMT's bullish commentary with CCI's cautious outlook. The checks "suggest a 100-150bps slowdown in industry US site leasing revenue growth in ‘16 as AT&T, Sprint and T-Mo reduce aggregate wireless capex and decommission Leap, Clearwire and Metro sites."
- He sees AMT's U.S. organic growth falling to 7.5% in 2015 and 6.4% in 2016 from 9.5% in 2014, and predicts the slowdown will yield multiple compression. "While we regard AMT’s mgmt. team and business model very highly, we are moving to the sideline on the shares until we feel ... expectations reflect slowing growth in ’16."
- Goldman's Brett Feldman says his "fundamental outlook for AMT" hasn't changed. However, he thinks "investors looking for exposure to the tower sector can generate a more attractive total return in CCI," following the company's huge dividend hike.
- If they pan out, Macquarie's checks also have implications for SBA (NASDAQ:SBAC). SBA's shares fell 1.8% on Friday thanks to Crown Castle.
Oct. 31, 2014, 6:17 PM
- Morgan Stanley's Simon Flannery: "Crown Castle (CCI -6.2%) now offers a ~4% dividend yield, based on [Thursday's] closing price, compared to the REITs, which yield between 3.3% and 3.9%. We continue to see upside, as the stock attracts income oriented investors."
- Though it just more than doubled its payout following pressure from activist Corvex Management, Crown Castle still expects to grow its dividend at a rate on par with its AFFO growth; the tower owner is aiming for 6%-7% growth on an organic basis.
- Shares sold off due to disappointment with CCI's 2015 outlook: The company expects AFFO/share of $4.31-$4.37, below a $4.75 consensus. Site rental revenue is expected to rise to $3.047B-$3.067B from a 2014 level of $3.001B-$3.006B.
Oct. 30, 2014, 6:42 PM
Oct. 30, 2014, 5:34 PM
- Crown Castle's (NYSE:CCI) new quarterly dividend, provided after activist Corvex Management called for greater capital returns, is 134% above a prior $0.35/share, and good for a 4% yield. The next dividend is payable on Dec. 31 to shareholders on record as of Dec. 19.
- The tower owner expects Q4 AFFO/share of $1.04-$1.05 (close to Q3's $1.04). Site rental revenue is expected to rise to $755M-$760M from Q3's $752M.
- CCI -1.6% AH. Q3 results, PR.
Oct. 30, 2014, 4:06 PM
Oct. 30, 2014, 1:39 PM
- Though it missed Q3 EPS estimates (while beating on revenue), American Tower (NYSE:AMT) is hiking its full-year AFFO guidance to $1.8B-$1.82B from $1.755B-$1.795B.
- Also, AMT now respectively forecasts U.S. and international organic core revenue growth of 9.5% and 16%; prior guidance was for 9%+ and "nearly 15%" growth.
- Rental/management revenue guidance has been narrowed to $3.975B-$4.005B from $3.945B-$4.015B, and net income guidance lowered to $805M-$825M from $830M-$850M.
- Q3 AFFO rose 25.2% Y/Y to $460M ($1.15/share, well above EPS of $0.50).
- U.S. rental/management revenue +25.2% to $664M (+9.1% organic); international revenue +30.3% to $348M (+17.7% organic). Network development services revenue more than doubled to $27.1M.
- Rental/management op. margin slipped to 67% from 69% a year ago. AMT ended Q3 with $13.6B in net debt, and a 5.1x net leverage ratio.
- SBA (SBAC +1.4%) and Crown Castle (CCI +0.8%) are up moderately.
- Q3 results, PR
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