Fri, Feb. 6, 5:37 PM
Thu, Jan. 29, 5:04 PM
Wed, Jan. 21, 3:14 PM
- Equity REITs had a nice run after bond yields peaked last year and began declining, but, says a now-cautious John Authers from the FT, that rally has turned into a stampede. And while the U.S. has led the way, U.K., European, and global REIT indexes have also had big gains.
- Since October, the S&P 500 REITs index is up 19% vs. 1.4% for the S&P 500, and a 22.5% loss for the Alerian index of MLPs.
- Valuation has now become a concern, with every REIT sector covered by SNL Securities trading at a premium to NAV (not the mortgage REITs though). Healthcare REITs - HCP, MPW, HTA, UHT, LTC, SBRA, OHI, HCN come to mind - are at a 25% premium.
- SNL's Jason Lail dismissed some concerns, noting REITs trade at a 12.% premium to NAV, well within the 20% above and below NAV they typically range between. Also, fundamentals remain sound, with supply still constricted in many areas.
- JPMorgan's Jason Ko notes pockets of value, particularly office REITs which trade a minimal premium. Boston Properties (BXP -0.1%) is a particular favorite. Others in the sector include: EQC, WRE, CSG, FPO, HIW.
- Simon Property (SPG +0.2%) is Ko's biggest holding as mall bankruptcies and chain closings should leave the survivors stronger. His 2nd-largest holding is industrial player ProLogis (PLD +0.2%).
- ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, ICF, SCHH, RWR, RWO, IFGL, KBWY, DRV, DRW, REK, FRI, GRI, IFEU, FTY, FFR, RWXL, PSR, IFNA, WREI, REET
Wed, Jan. 7, 9:42 AM
- Upgraded to Outperform from Market Perform are Corporate Office Properties Trust (OFC +0.8%), Douglas Emmett (DEI +0.5%), and Regency Centers (REG -0.2%).
- Downgraded to Market Perform are Brandywine Realty Trust (BDN +0.3%), Health Care REIT (HCN +0.3%), Mid-America Apartment Communities (MAA -0.1%), and Saul Centers (BFS +0.2%).
- Downgraded to Underperform is Inland Real Estate (IRC -1.3%).
- Previously: Raymond James cools on apartment REITs (Jan. 7)
- Previously: Raymond James rotates on self-storage names (Jan. 7)
- Previously: Raymond James rings the register on Weyerhauser (Jan. 7)
Tue, Jan. 6, 2:25 PM
- The 10-year Treasury yield plunging all the way to 1.94% makes the dividends on these players even more attractive.
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
- Individual names: National Retail Properties (NNN +2.3%), Spirit Realty (SRC +3.2%), Health Care REIT (HCN +1.6%), Ventas (VTR +2.1%), HCP (HCP +2.3%), AvalonBay (AVB +1.4%), Essex Property Trust (ESS +1.2%), Brixmor Property (BRX +1.8%), Macerich (MAC +0.9%), Retail Properties of America (RPAI +1.2%), Tanger Factory (SKT +1.3%), Public Storage (PSA +1.6%), Sovran Self Storage (SSS +1.9%),
Dec. 1, 2014, 4:32 PM
- The sale of seven entrance fee communities and one rental community for $435M equates to a 5.6% cash yield on sale and is expected to generate a gain of about $95M.
- The sale is in addition to HCN's most recent disposition guidance of $625M, and is expected to close before year-end. After the deal, Health Care REIT will own just one entrance fee community.
- Source: Press release
Nov. 5, 2014, 10:28 AM
Nov. 4, 2014, 7:45 AM
- Q3 normalized FFO of $326.1M vs. $280.8M a year ago. Normalized FFO per share of $1.04 vs. $0.97. Payout ratio of 76% vs. 79%.
- Normalized FAD of $284.9M vs. $246.3M a year ago. Normalized FAD per share of $0.91 vs. $0.86. Payout ratio of 87% vs. 89%.
- Same-store NOI growth of 4.3% for total portfolio. In senior housing, NOI growth of 7.6%.
- $757M of investments completed in Q3, including $653M of acquisitions with blended yield of 6.4%.
- Guidance: Full-year normalized FFO per share forecast is narrowed to $0.4.07-$4.13 from $4.05-$4.15. Normalized FAD per share is narrowed to $3.59-$3.65 from $3.57-$3.67. Dispositions guidance is boosted to $625M from $450M.
- Conference call at 10 ET
- Previously: Health Care REIT beats by $0.01, beats on revenue
- HCN flat premarket
Nov. 4, 2014, 7:32 AM
Nov. 3, 2014, 5:30 PM
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Oct. 30, 2014, 6:31 PM
Sep. 12, 2014, 9:36 AM
- The 15.5M share offering priced at $63.75 each, with the underwriters retaining an option to buy another 2.325M shares at that price.
- If the greenshoe is exercised, gross proceeds to Health Care REIT (HCN -3.1%) will be about $1.1B (about $988M if not).
- Source: Press Release
- Previously: Health Care REIT with secondary; details acquisition pipeline
Sep. 11, 2014, 4:29 PM
- Health Care REIT (NYSE:HCN) is offering 15.5M shares with an underwriter greenshoe of another 2.35M shares.
- As for what it might do with that money, the company - based on closings thus far this quarter and signed letters of intent - anticipates acquiring about $1.7B of properties in H2. This includes the already-announced $950M HealthLease Properties deal, and the $257M Gracewell purchase.
- Shares -3.2% AH
Aug. 14, 2014, 8:41 AM
- Health Care REIT (NYSE:HCN) closes on the purchase of 11 seniors housing communities for £153M, or about $257M in cash from Gracewell Healthcare, Sunrise Senior Living - the management company 24% owned by HCN - will separately purchase Gracewell and manage the portfolio going forward.
- Additionally, HCN and Sunrise enter a development deal with Gracewell's founders who will develop more seniors housing communities for HCN to own and for Sunrise to manage.
- Source: Press Release
Aug. 13, 2014, 7:59 AM
- Health Care REIT (NYSE:HCN) agrees to the purchase of HealthLease Properties Real Estate Investment Trust for CAD$14.20 in cash, with the deal valued at about $950M. The HealthLease portfolio includes 53 seniors housing, post-acute care, and long-term care communities. The purchase price represents a 7% initial cash yield and HCN expects it to accretive to FFO per share by about $0.04 in year one.
- HCN also agrees to a partnership with Mainstreet Property Group - the external management company of HealthLease. The deal includes an agreement to acquire 17 state-of-the-art Next Generation communities for about $369M, representing a 7.5% initial cash yield which is expected to be meaningfully accretive. The purchases are expected to close in tranches upon completion of construction beginning in Q4 of this year through Q1 of 2016.
- There's also an agreement for HCN to provide mezzanine financing and receive purchase rights for another 45 Next Generation projects.
- Press release
Aug. 1, 2014, 8:03 AM
- Q2 normalized FFO per share of $1.06 up 14% Y/Y and FAD per share of $0.94 up 15%. Dividend is $0.795.
- Same store NOI growth of 4.4%, led by 7.7% growth in the seniors housing portfolio.
- $579M of gross investments in Q2 includes $455M in acquisitions with blended initial yield of 6.5%.
- Full-year 2014 normalized FFO guidance is lifted by $0.02 to $4.05-$4.15 per share, representing growth of 6-9%. Normalized FAD guidance is lifted by $0.02 to $3.57-$3.67.
- Conference call at 10 ET
- Previously: Health Care REIT beats by $0.04, beats on revenue
- HCN flat premarket
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