Mar. 17, 2014, 7:55 AM
- Downgraded to Neutral from Outperform are Sovran Self Storage (SSS) and Extra Space Storage (EXR), and boosted to Outperform from Neutral is Public Storage (PSA).
- It looks like a valuation call as Public Storage is the notable underperformer in the group over the last year, up 13.4% vs. 20.2% for Sovran and 29% for Extra Storage.
Feb. 26, 2014, 7:13 AM
- "Public Storage's (PSA) earnings sensitivity to topline growth (due to low leverage) external growth (due to size) and refinance potential (all preferreds already refiananced) is among the lowest in the sector," says analyst Andrew Rosivach, cutting the stock to a Sell with price target of $157. "Finally the relative multiple of PSA to REITs is near peak levels."
- Peers? Sovran Self Storage (SSS), CubeSmart (CUBE), Extra Storage Space (EXR).
Feb. 20, 2014, 6:03 PM
Feb. 20, 2014, 12:10 AM| 2 Comments
Feb. 19, 2014, 5:35 PM| Comment!
Jan. 31, 2014, 10:26 AM
- Working today - and for the whole month of January - as the broader market sells off are the REITs. The sector - both the equity REITs and mREITs - had been punished in 2013 as rates moved higher starting last May, but another four basis point decline this morning brings the 10-year Treasury yield down to 2.66% after starting the year at about 3%.
- At least for the mREITs, nearly all put in what may turn out to be major bottoms late in 2013 amid jitters over year-end tax-loss selling and the commencement of the taper - sell the rumor, buy the news ... indeed.
- Mortgage REITs: Annaly (NLY +1.1%) +7.4% YTD, American Capital (AGNC +1.3%) +9.1%, Invesco (IVR +0.5%) +6.7%, Anworth (ANH +0.6%) +10.9%, Apollo Residential (AMTG +0.7%) +9.1%, AG Mortgage Investment (MITT +0.6%) +5.6%.
- ETFs: REM, MORT, MORL
- Equity players: Realty Income (O +0.5%) +9.6% YTD, National Retail (NNN +0.7%) +9.8%, AvalonBay (AVB +0.8%) +4.1%, Public Storage (PSA +0.6%) +4.9%, Boston Properties (BXP +0.2%) +7.8%, Liberty Trust (LRY +1%) +7.9%.
- Related ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Jan. 9, 2014, 7:39 AM
- "We think the shares have pulled back too much on overblown concerns regarding slowing earnings growth," says analyst Omotayo Okusanya, upping Public Storage (PSA) to a Buy with $175 price target. "Our PT implies a total return of ~20%, including the 3.7% dividend yield."
- The analyst cuts Highwoods Properties (HIW) to Hold with price target of $38 (from $42). "While we like the HIW story longer-term, we expect performance in 2014 to be more modest given limited near-term catalysts, and fair valuation at 12.4x FFO versus Suburban Office REIT peers at 11.9x FFO."
- See also: Jefferies makes a couple of other moves in REITs.
Jan. 7, 2014, 9:04 AM
- Wells Fargo downgrades two more REIT sector players, removing Buy ratings on Sovran Self Storage (SSS) and CubeSmart (CUBE) after nice runs (relative to the sector) for both.
- In addition to valuation for SSS, Wells notes headwinds for same-store results and the team's FFO growth estimate for 2014 at 8.5% vs. consensus 9.3%. Also in the peer-group is Hold-rated Public Storage (PSA), which Wells expects will grow FFO just 7.3% this year.
- Earlier: Wells downgrades Senior Housing Properties and Omega Healthcare.
Dec. 17, 2013, 10:16 AM
- The upgrades: Brandywine Realty Trust (BDN +0.8%) and Federated Realty Investment (FRT +0.4%) to Buy at ISI, CommonWealth REIT (CWH +0.3%) to Hold and Liberty Property Trust (LRY +2%) to Buy at Stifel, Extra Storage Space (EXR +1.7%) to Hold at BMO (BMO earlier downgraded PSA), and American Realty Capital (ARCP +0.3%) to Buy at CapitalOne.
- The downgrades: Cedar Realty Trust (CDR -0.5%) to Sell at BAML, and Parkway Properties (PKY -1.4%) to Sell at Citi.
Dec. 17, 2013, 8:40 AM
- Public Storage (PSA) closed the purchase of 44 properties from Florida-based Stor-All for $430M on December 12 - the largest self-storage acquisition of 2013.
- "To the frustration of investors, management remains vague on the initial yield on the $1.1B of activity this year," says BMO Capital, cutting the stock to a Sell with $140 price target. One of the largest REITs with a "pristine" balance sheet, PSA has historically traded at a premium to its peers, but the company's balance sheet and acquisition strategy have begun to look like everyone else's - so why wouldn't its valuation.
Oct. 31, 2013, 6:08 PM
Oct. 31, 2013, 5:53 PM
Oct. 31, 2013, 12:10 AM
Oct. 30, 2013, 5:35 PM
Oct. 9, 2013, 3:11 PM
- "There was a time when people were overly exuberant about how long interest rates were going to stay low. That time is gone," says Cohen & Steers' Jason Yablon. Investors have pulled $728M out of real-estate mutual funds since May 15 (about the time interest rates started rising) vs. $42.8B in inflows into all equity funds, according to Lipper data. After outperforming the broader stock market for several years, REIT stocks have underperformed the S&P 500 for each of the last four months.
- The best-performing REITs in Q3, say analysts, were those renting property with short-term leases. Those with longer-term leases - such as owners of health care facilities - suffer most as rates rise.
- The only sectors showing gains in Q3 were self-storage (+7.45%) and hotel (+6.23%) REITs. "Self-storage was always regarded as the ugly stepchild of the real-estate industry, but our industry was always thought to be recession-resilient," says Extra Space Storage (EXR) CEO Spencer Kirk.
- REIT ETFs: FRI, WREI, FTY, ICF, IYR, REM, REZ, RTL, PSR, KBWY, SCHH, RWR, VNQ, DRN, URE, DRV, SRS, REK, ROOF.
- Self-storage: CUBE, PSA, SSS.
- Hotel: AHT, CLDT, CHSP, DRH, FCH, HT, HPT, HST, LHO, PEB, RLJ, BEE, INN, SHO, SPPR.
Sep. 23, 2013, 3:34 PM
- Total property losses are expected at nearly $2B, with about half housing and the rest from commercial and government sectors.
- Franklin Street Properties (FSP -0.2%) is the most exposed, with 14.3% of its current portfolio in the affected area, according to SNL Financial. Next is CoreSite Realty (COR), whose two data center assets in the area account for 13.3% of the company's property count. Next is newly public Independence Realty Trust (IRT +2.2%) - which only owns one property there, but it accounts for 12.5% of its portfolio.
- Others (in order of percentage of portfolio in affected area): RLJ, OFC, DRH, INN, FR, GOV, REG, CHSP, EQR, LSE, LTC, GEO, TCO, AIV, CPT, CWH, EPR, ELS, WRI, MPW, MNR, PSA.
PSA vs. ETF Alternatives
Public Storage is engaged in the acquisition, development, ownership and operation of self-storage facilities which offers storage spaces for lease, generally on a month-to-month basis, for personal and business use.
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