Jan. 10, 2014, 2:44 PM
- The broad averages are struggling following the jobs number, but the big decline in interest rates (the 10-year Treasury is now off 10 bps to 2.87%) has the equity REIT sector lit up bright green.
- Ventas (VTR +4.4%) is having the biggest day, continuing to cruise through a couple of early-year downgrades (latest was Barclays on Wednesday). Among those also higher: National Retail Properties (NNN +3.1%), Realty Income (O +1.6%), Health Care REIT (HCN +2.5%), HCP (HCP +3.8%), RAIT Finanical (RAS +1.4%), Apartment Investment (AIV +2.9%), General Growth (GGP +1.6%), Inland Real Estate (IRC +1.5%), Government Properties (GOV +1.6%), American Campus (ACC +1.7%).
- Relevant ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Dec. 12, 2013, 4:09 AM
- Four major mall owners have agreed to a deal with start-up Deliv to provide same-day delivery to consumers at the operators' shopping centers.
- Macerich (MAC), Westfield and Simon Property Group (SPG) are due to unveil the partnership today following a pilot at several General Growth Properties (GGP) malls.
- The companies will initially offer same-day delivery at nine malls in Los Angeles, San Francisco, Chicago and San Jose, after which they intend to expand the service to more properties next year.
- "Will the average spend go up if customers don't have to carry around the bags? We think so," said General Growth's Scott Morey. However, the malls don't expect to make money from the service, said Simon's Mikael Thygesen.
Dec. 11, 2013, 3:08 PM
- The equity REITs are particularly weak today as the 10-year Treasury yield heads higher by 4 basis points to 2.85%. Senior Housing (SNH -2.3%), Omega Healthcare (OHI -2.6%), American Realty Capital (ARCP -1.7%), Stag Industrial (STAG -2%), Equity Residential (EQR -1.4%).
- Retail and shopping center/mall REITs also have the weak retail traffic numbers to mull over: Realty Income (O -1.4%), National Retail (NNN -2.8%), Simon Property (SPG -1.4%), General Growth (GGP -2.6%), Kimco (KIM -2.6%), Brixmor (BRX -0.8%).
Dec. 4, 2013, 5:30 PM
- General Growth Properties (GGP) is replacing Molex (set to be acquired by Koch Industries) in the S&P 500 following the Dec. 9 close. GGP is up 5.4% AH on the news.
- Facebook (FB), rumored to be the next company to be added to be added to the index, is selling off on the news after rising 4% in regular trading.
Nov. 1, 2013, 8:17 AM
- The team upgrades General Growth Properties (GGP) to Buy, while removing its Buy rating on Taubman Centers (TCO).
- While GGP has begun to recover from this sping/summer's tumble as interest rates surged higher, Taubman has fallen and can't get up. YTD, GGP is ahead by 7% while Taubman is off 16%.
- Earlier: Brookfield Property Partners to invest another $1.4B in GGP.
Nov. 1, 2013, 7:43 AM
- The additional investment will raise Brookfield Property Partners' (BPY) stake in General Growth Properties (GGP) to 32% and boost the total Brookfield consortium investment (includes BAM) over 40%.
- "We believe that the investment will earn a return that exceeds our target range of 12% to 15%," says BPY CEO Ric Clark.
- The investment will be partly funded with the sale of $435M in equity to Investment Corporation of Dubai and other institutional investors, boosting BPY's float by 28%. Still out there is Brookfield's tender for any stock of Brookfield Office Properties (BPO) it doesn't already own.
- Press release.
Oct. 29, 2013, 9:58 AM
- Adjusted FFO of $0.29 per share is up 26% from a year ago. Comparable NOI for regional mall portfolio of $521M up 6.8%.
- Tenant sales up 3.8% to $562 per square foot. Mall lease percentage of 96.6% is up 110 bps from a year ago. Initial rental rates for leases starting this year up 12.2% to $63.32 per square foot.
- 28.3M shares repurchased at average price of $20 each, included 25M shares bought back from Bill Ackman's Pershing Square for $20 each.
- Quarterly dividend boosted by one penny to $0.14 per share.
- CC is just about to get underway.
- Q3 results, press release.
- GGP +1.5%.
Oct. 28, 2013, 4:15 PM
Oct. 28, 2013, 12:10 AM
Oct. 27, 2013, 5:35 PM
Sep. 13, 2013, 7:30 AM
- General Growth Properties (GGP) purchased 28.3M shares of company stock during Q3 (through yesterday) at an average price of $20 each for total cost of $567M. The activity included buying back 25M shares from Bill Ackman's Pershing Square at $20 each on September 12. Cash on hand was used for the buys.
- The purchases reduced the float to 964M shares. The full year impact on FFO per share (had they occurred at the start of the year) would be $0.03.
- The shares were acquired at an approximate cap rate of 6%, says CEO Mathrani. "We believe this is a discount to private market valuation for high-quality U.S. retail properties."
- Press release.
Sep. 10, 2013, 12:24 PM
- More on Janney Capital's initiation of coverage on the equity REIT sector:
- Started at Buy are Agree Realty (ADC +0.6%), DDR Corp. (DDR -0.7%), Physicians Realty Trust (DOC +0.3%), Glimcher Realty Trust (GRT +0.3%), Healthcare Trust of America (HTA -0.4%), Simon Property (SPG +0.4%), Trade Street Residential (TSRE +0.5%), and Weingarten Realty (WRI). Earlier: Realty Income (O) is also started at Buy.
- Started at Neutral are Armada Hoff Properties (AHH -4.6%), American Realty Capital (ARCP -0.9%), CB&L Associates (CBL -1.1%), General Growth (GGP -0.7%), Inland Real Estate (IRC -1.2%), Investors Real Estate Trust (IRET -2.8%), Kimco (KIM -0.3%), Kite Realty (KRG -1.2%), National Retail Properties (NNN -0.9%), Regency Centers (REG +0.1%). Earlier: Omega Healthcare (OHI), Medical Properties Trust (MPW), and Senior Housing (SNH) are also started at Neutral.
Aug. 23, 2013, 11:50 AM
Aug. 23, 2013, 11:09 AM
- BMO Capital upgrades to Buy with $175 price target.
- The stock's off about 17% since late May with current annualized yield of 3.11%.
- Peers Taubman (TCO +0.5%), General Growth Properties (GGP +0.8%), Macerich (MAC +0.1%), and CBL (CBL -1.1%) have had similarly tough runs.
- ETFs of interest: FRI, WREI, FTY, ICF, IYR, REM, REZ, RTL, PSR, KBWY, SCHH, RWR, VNQ, DRN, URE, DRV, SRS, REK, ROOF.
Aug. 15, 2013, 6:55 AM
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