Fri, Aug. 21, 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%).
Tue, Aug. 11, 8:20 AM
- The occupancy rate for all senior housing in 31 major markets fell this spring for the second consecutive quarter, reports Liam Pleven in the WSJ, and Dallas, Atlanta, and Chicago are among the cities where the number of new assisted-living units under construction represent more than 10% of the current inventory.
- For the 31 major markets in total the figure is 6.4%; about four years ago it was just 3.4%.
- "Everybody's thinking about these 10K baby boomers turning 65 every day," says one senior living executive, but that doesn't mean they're ready right away to move into senior communities. Alongside trouble finding renters - occupancy of 88.4% in Q2 was down 20 basis points from Q1 and 30 bps from a year ago - attempting to raise rents can also be an issue.
- Among names of interest: Health Care REIT (NYSE:HCN), HCP, Brookdale Senior Living (NYSE:BKD), Ventas (NYSE:VTR), New Senior (NYSE:SNR), Senior Housing Properties (NYSE:SNH), LTC Properties (NYSE:LTC).
Tue, Aug. 4, 7:59 AM
- Q2 normalized FFO of $383.7M or $1.09 per share vs. $316.4M and $1.06 one year ago. Normalized FAD of $332M or $0.95 per share vs. $281M and $0.94 one year ago. Normalized FAD payout ratio of 87% up 200 basis points.
- Same store cash NOI growth of 3.2%. Seniors housing operating same store cash NOI growth of 3.3%, with 5.2% growth in the U.S. offset by occupancy rates in the U.K. impacted by severe flu season.
- 2015 full year normalized FFO guidance is reaffirmed at $4.25-$4.35 per share, up 3-5% Y/Y; FAD guidance of $3.83-$3.93 is a 5-7% increase.
- Earnings call at 10 ET
- Previously: Health Care REIT beats by $0.01, beats on revenue (Aug. 4)
- HCN flat premarket
Tue, Aug. 4, 7:38 AM
Mon, Aug. 3, 5:30 PM
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Thu, Jul. 30, 5:12 PM
Wed, Jul. 15, 8:23 AM
Wed, Jul. 8, 12:30 PM
- "With interest rate fears driving the sector down 21% from its January [level], fundamental drivers remain strong and we see healthcare REIT valuations at their best entry point in 18 months," says Canaccord, initiating coverage on a number of sector names.
- Started at Buy are Caretrust REIT (CTRE -2.7%), Health Care REIT (HCN +0.6%), New Senior Investment (SNR -1%), and Physicians Realty Trust (DOC +0.3%).
- Started at Hold are Sabra Health Care REIT (SBRA +0.5%), and BioMed Realty (BMR -0.1%).
Thu, Jun. 18, 8:41 AM
- An existing JV between Health Care REIT (NYSE:HCN) and Revera, Inc. agrees to purchase Regal Lifestyles Communities, a publicly-traded Canadian company owning and operating 23 seniors housing communities with more than 3.6K units.
- The initial cash yield is expected to be 6.1% and anticipated to be immediately accretive to FFO and FAD per share.
- HCN has a 75% interest in the acquiring JV.
- Source: Press Release
Mon, Jun. 15, 2:20 PM
- Genesis Healthcare (GEN +10.8%) acquires 24 skilled nursing facilities and a rehabilitation business from privately-held Revera for $240M. Under the terms of the agreement, Genesis will purchase the real estate of 20 of the 24 facilities and will lease the remaining four through Health Care REIT (HCN -0.3%). It will also acquire the operations of Premier Therapy, Revera's contract rehabilitation business.
- The transaction, which will be accretive to 2016 earnings, is expected to close by year-end.
Mon, Jun. 15, 8:00 AM
- The agreement with Revera Inc. also includes its contract rehabilitation business, with the price for the whole deal being $240M.
- Genesis (NYSE:GEN) will acquire the real estate of 20 of the 24 facilities, and will enter into a long-term lease agreement with Health Care REIT (NYSE:HCN) for the others.
- The deal will initially be financed with a bridge loan from HCN, with Genesis to subsequently refinance into something more permanent.
- Source: Press Release
Mon, Jun. 1, 10:39 AM
Tue, May 26, 7:20 AM
Thu, May 14, 4:49 PM
- The team at Wells Fargo finds seven REITs most at risk of a takeover, writes Jake Mooney at SNL Financial. What they have in common are sustained discounts to NAV, market caps less than $5B, and relatively low debt ratios - important because it allows added leverage without violating debt covenants.
- At risk? The higher debt loads following a privatization could be harmful to existing bondholders. Stockholders, of course, might feel differently.
- The seven: Mack-Cali (NYSE:CLI), Education Realty Trust (NYSE:EDR), Equity One (NYSE:EQY), Healthcare Realty (NYSE:HR), Retail Opportunity Investments (NASDAQ:ROIC), Post Properties (NYSE:PPS), and Washington Real Estate (NYSE:WRE).
- In the right environment, why limit candidates to smaller REITs? Stifel's Daniel Bernstein suggests Ventas (NYSE:VTR) could go for the equivalent of a 5% cap rate or $90 per share, given Blackstone paid a 6.2% cap rate for Excel Trust, and Associated Estates sold with a cap rate below 5%. Similar cap rates would produce tasty premiums for HCP, Health Care REIT (NYSE:HCN), Healthcare Realty Trust (HR), and Healthcare Trust of America (NYSE:HTA).
Fri, May 8, 7:47 AM
- Q1 normalized FFO of $349.7M or $1.04 per share vs. $289.7M and $1.00 one year ago. Normalized FAD of $0.92 vs. $0.90. Dividend is $0.825.
- $2.2B of investments in Q1; same-store NOI growth of 3.1%.
- 2015 guidance is affirmed: Normalized FFO of $4.25-$4.35, up 3-5% Y/Y, and normalized FAD of $3.83-$3.93, up 5-7%. Same-store cash NOI growth of 3-3.5%.
- Conference call at 10 ET
- Previously: Health Care REIT EPS and revenue in-line (May 8)
- HCN flat premarket
Fri, May 8, 7:32 AM
HCN vs. ETF Alternatives
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