Thu, Oct. 8, 10:58 AM
- This just in: REITs are in a sustained rally. The iShares DJ U.S. Real Estate ETF (NYSEARCA:IYR) is up 0.6% today (with the major averages lower), and is now ahead about 7.5% since hitting its low for the year around Labor Day.
- A more dovish outlook on interest rates is no doubt helping - the 10-year Treasury yield is 2.07% vs. 2.20 in early Sept., and the Fed looks to be on hold until Dec. at a minimum - but low prices also cure low prices.
- With so many names trading below conservative estimates of net asset values, buyers are stepping in - and not just for the stocks, but for the whole companies. In just the last month, Blackstone has agreed to buy Strategic Hotels and (this morning) BioMed Realty. The P-E giant's real estate chief Jon Gray says look for more to come.
- Spirit Realty (SRC +0.8%), Ventas (VTR +0.4%), Medical Properties Trust (MPW +2%), Gramercy Property (GPT +0.3%), Lexington Realty (LXP +1.1%), AvalonBay (AVB +0.9%), General Growth (GGP +1.1%), Inland Real Estate (IRC +0.7%), CubeSmart (CUBE +0.5%), Washington Real Estate (WRE +0.9%), Sunstone Hotel (SHO +1.3%), Liberty Property (LPT +1.1%)
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
Thu, Sep. 3, 8:04 AM
Tue, Aug. 18, 7:56 AM
- A pure-play skilled nursing facility REIT, Care Capital Properties is listed on the Big Board under the symbol CCP.
- Ventas (NYSE:VTR) expects to declare a Q3 dividend of at least $0.73 per share, and CCP $0.1425 per share (on a pre-split 1:4 adjustment basis), consistent with Ventas' expectation that the two companies combined payout would increase at least 10% from the current $0.79.
- Source: Press Release
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).
Mon, Jul. 27, 9:45 AM
- Beaten-down REITs are seeing some love in early action after Shanghai's 8.5% plunge last night triggered a global selloff, with Europe down 2%, and America opening 1% lower.
- The 10-year Treasury yield is down five basis points to 2.21%.
- The iShares Dow Jones U.S. Real Estate ETF (IYR +0.5%) is higher, as are the utilities (XLU +0.6%).
- Among the largest REIT gainers is Ventas (VTR +1.7%), which is also benefitting from a post-earnings upgrade to Outperform from BMO Capital.
- REIT ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, IFNA, DRA, FREL, WREI, IARAX
Fri, Jul. 24, 8:23 AM
- Q2 normalized FFO of $394.3M or $1.18 per share vs. $331.6M and $1.12 one year ago. Share count of 334M up from 296.5M.
- Total seniors housing operating (SHOP) portfolio NOI of $155.4M up 24% Y/Y. Same-store SHOP NOI up 4% for 234 same-store properties.
- Same-store cash NOI growth for total portfolio (1,342 assets) growth of 2.4% in constant currency.
- Full-year normalized FFO guidance is boosted to $4.70-$4.76, or 5-6% growth from 2014. Guidance includes pending acquisition of Ardent, but does not take into account the upcoming spinoff of Care Capital. Same-store cash NOI growth of 2.5-3.5% in unchanged.
- Conference call at 10 ET
- Previously: Ventas beats by $0.02, beats on revenue (July 24)
- VTR flat premarket
Fri, Jul. 24, 7:48 AM
Thu, Jul. 23, 5:30 PM
Thu, Jul. 9, 6:56 PM
- Healthcare REIT Ventas (NYSE:VTR) says it's priced a public offering of $500M in 4.125% senior notes due 2026, at 99.218% of principal.
- The notes are unsecured and the sale is expected to close next Thursday.
- Ventas will use proceeds for working capital and general purposes, which may include future acquisitions.
- Total debt at its most recent report was $11.6B, with debt/equity of 123. Book value per share was $33.37.
Tue, Jul. 7, 9:08 AM
- Ventas (NYSE:VTR) previously agreed to purchase Ardent Health Services - one of the ten-largest investor-owned hospital companies in the U.S. - and today agrees to sell the majority AHS's hospital operations to Equity Group Investments (Ventas will retain a 9.9% stake). Ventas will retain the owned real estate.
- The deal values Ardent at about $475M. Closing is expected in Q3, and at that time, Ventas and Ardent will enter into long-term, triple-net leases will an initial base rent of $105M.
- Ventas now expects the unlevered cash rental yield on the real estate to be about 7.5%.
- Source: Press Release
Thu, Jul. 2, 3:01 PM
- Even as public market valuations have pulled back, says Citi's Michael Bilerman, private market pricing has remained strong, widening the gap between price and value.
- While fund flows are a negative, Bilerman notes an uptick in interest from market generalists, suggesting they're beginning to spot value in the sector.
- Healthcare: The REITs here are particularly sensitive to rising rates given high external growth expectations and accretive "spread" investing. Bilerman has Overweights in large-cap Ventas (NYSE:VTR) and small-cap Sabra Health Care (NASDAQ:SBRA).
- Lodging: Supply is largely intact and demand continues to improve, hopefully setting up a strong H2. He continues to favor C-corps like Hilton Worldwide (NYSE:HLT), but also has Overweight positions on Host Hotels (NYSE:HST) and LaSalle Hotel (NYSE:LHO).
- Office/Industrial: This sector offers particular opportunity for outperformance, and he prefers urban names, Boston Property (NYSE:BXP), SL Green (NYSE:SLG), and Vornado (NYSE:VNO), and only select suburban names Parkway (NYSE:PKY) and Mack Cali (NYSE:CLI). In industrial, he's Overweight EastGroup (NYSE:EGP), Prologis (NYSE:PLD), and DCT Industrial (NYSE:DCT).
- Apartments: Growth remains strong and valuations attractive. He's Overweight large caps AvalonBay (NYSE:AVB), Equity Residential (NYSE:EQR), and UDR, as well as value name Camden Property Trust (NYSE:CPT).
- Retail: He's still Overweight Class A mall REITs, but is getting more bullish on strip mall names, with Kimco (NYSE:KIM), Acadia (NYSE:AKR), and Weingarten (NYSE:WRI) upgraded to Buy. Other top picks are General Growth (NYSE:GGP), Simon Property (NYSE:SPG), Kite Realty (NYSE:KRG), and Forest City (NYSE:FCE.A).
- Previously: Citi spots value in beaten-up REIT sector (July 2)
Thu, Jun. 25, 3:07 PM
- Among those who placed initial bids last week for GE's health-care finance unit was the diverse group of Capital One (NYSE:COF), Apollo Global (NYSE:APO), Ares Management (NYSE:ARES), and Ventas (NYSE:VTR), reports Bloomberg. The operation could fetch more than $11B, say sources.
- The sale of the unit comes as GE is in the process of breaking up GE Capital by selling several lending businesses totaling roughly $200B in assets.
Wed, Jun. 3, 10:25 AM
- There's a bit of a selling panic going on in fixed income, with the 10-year Treasury yield up another nine basis points on this session to 2.35%, and now up 25 bps this week. The carnage across the pond is worse.
- The IYR is lower by 0.9%.
- Individual equity REITs: Realty Income (O -1.2%), Ventas (VTR -2.5%), Omega Healthcare (OHI -0.9%), HCP (HCP -1.5%), Equity Residential (EQR -2.1%), AvalonBay (AVB -1.8%), Simon Property (SPG -1.3%), General Growth (GGP -1.5%), Kimco (KIM -1.2%), Public Storage (PSA -1%), Boston Properties (BXP -1.1%), Hospitality Properties (HPT -1.2%), Liberty Property (LPT -1%), Campus Crest (CCG -2.2%).
- Mortgage REITs: Annaly (NLY -1.2%), American Capital Agency (AGNC -0.9%), Invesco (IVR -1.1%), Hatteras (HTS -1%), Ellington Residential (EARN -1%).
- ETFs: IYR, VNQ, MORL, REM, MORT, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, LMBS, IARAX
Fri, May 15, 6:48 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).
Thu, Apr. 30, 3:15 PM
- A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
- Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
- Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
- ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
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