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Analyst views carry significant weight on Wall Street. Investors often see stock prices rise when an analyst upgrades a stock or maintains a previous rating while increasing the price target.
Sometimes analysts review a particular sector or subsector and then raise price targets for several stocks within that group. Other times, when an analyst raises a rating on a stock, another analyst quickly follows suit.
Four real estate investment trusts (REITs) just received new price targets from the Scotiabank analyst. Three have diversified portfolios, while the fourth is a retail REIT. Look:
W. P. Carey
W. P. Carey Inc. (NYSE:WPC) is a New York City-based diversified net-lease REIT whose single-tenant properties include industrial, warehouse, retail and self-storage units. It was founded in 1973 and recently celebrated its 50th year of real estate investment.
WP Carey has 1,282 net leased properties with approximately 168 million square feet across 26 countries. The portfolio includes 335 tenants with a weighted average lease term of 14.9 years and an excellent occupancy rate of 99.1 years.
On April 30, WP Carey reported first-quarter 2024 operating results, missing analyst estimates for both FFO and revenue. FFO of $1.14 per share and revenue of $386.842 million fell short of expectations of $1.16 per share and $397.594 million. FFO was also below $1.31 in the same period a year ago and revenue fell from $427.350 million in the first quarter of 2023.
WP Carey also confirmed its full-year 2024 AFFO per share of $4.65 to $4.75, with a midpoint of $4.70, slightly above estimates of $4.67.
Despite missing estimates for the second consecutive quarter, the forward guidance gave investors hope and WP Carey shares have risen since the earnings release.
On May 16, Scotiabank analyst Nicholas Yulico maintained WP Carey at Sector Perform and raised the price target 9% from $55 to $60. However, WP Carey recently closed at $59.56, so the price target is hardly a compelling statement of support.
Many investors have also lost confidence in WP Carey after September’s announcement of a spin-off and sale of its office properties and a surprise dividend cut. Shares are down more than 26% since their July 2022 high of $81.54.
Ventas
Ventas Inc (NYSE:VTR) is a Chicago-based diversified healthcare REIT with 1,368 properties, including senior living communities, life sciences, research and innovation properties, medical offices, outpatient facilities and skilled nursing facilities. Ventas has been around for more than 20 years and is a member of the S&P 500.
Ventas has made a lot of news lately. On May 1, Ventas announced its operating results for the first quarter of 2024. The FFO of $0.78 per share beat the consensus estimate of $0.74 and the first quarter 2023 FFO of $0.74 per share. Revenue of $1.19 billion exceeded the forecast of $1.16 billion. Revenue also improved from the first quarter of 2023, when it was $1.08 billion.
On May 15, Ventas announced a quarterly dividend of $0.45 per common share, in line with the previous quarterly dividend, payable on July 18 to shareholders of record on July 1.
On May 16, Scotiabank analyst Nicholas Yulico maintained Ventas with a Sector Perform rating, raising the price target from $47 to $51. Ventas has seen a significant increase in the past month from $41.45 to $48.71 and could become overextended. But analyst Yulico still believes there is more to do next year.
VICI properties
VICI Properties Inc (NYSE:VICI) is a New York-based diversified experiential REIT specializing in owning and operating gaming, hospitality and entertainment properties. The triple-net portfolio includes well-known Las Vegas hotels such as Caesars Palace, MGM Grand and the Venetian Resort.
VICI Properties was founded in 2017 as a REIT and was a spin-off from Caesars Entertainment Operating Company as part of a Chapter 11 reorganization. The IPO took place on February 1, 2018. Vici Properties’ portfolio of 93 properties currently includes 54 gaming and 39 non-gaming facilities, with 60,300 hotel rooms and more than 500 restaurants, bars, nightclubs and sportsbooks.
On May 1, VICI Properties reported first-quarter earnings of $0.56 per share, meeting consensus estimates. Revenue of $951.50 million surpassed the consensus estimate of $936.67 million and exceeded first-quarter 2023 revenue by $877.65 million.
On May 16, Scotiabank analyst Nicholas Yulico maintained VICI Properties with a Sector Outperform rating and raised the price target from $32 to $34. This represents a potential upside of 12.28% from the recent closing price of $30.28. This was the second price target increase by analysts in the past week. Mizuho analyst Haendel St. Juste maintained a buy rating on May 10 and raised the price target from $31 to $32.
Simon Real Estate Group
Simon Property Group Inc. (NYSE:SPG) Simon Property Group is an Indianapolis-based retail REIT that owns and leases more than 250 properties consisting of shopping centers, restaurants, outlet centers and entertainment venues. It has locations in the top 25 population markets in the US. Simon Property Group was founded in 1960 and launched its initial public offering in 1993. The occupancy rate of its US shopping centers and premium outlets at the end of the first quarter of 2024 was 95.5%, down from 95.8%. in the fourth quarter of 2023, but an increase from 94.4% in the first quarter of 2023.
On May 6, Simon Property Group reported excellent operating results for the first quarter of 2024. FFO of $3.56 per share exceeded the consensus estimate of $2.82 and was almost 30% above the FFO of $2.74 per share in the previous quarter year. Revenue of $1.44 billion was 11.83% ahead of estimates of $1.29 billion and was up 6.78% from first quarter 2023 revenue of $1.35 billion.
On May 16, Scotiabank analyst Nicholas Yulico maintained Simon Property with a Sector Perform rating and raised the price target from $142 to $152. Simon recently closed at $148.66, down from a high of $157.82 in late March.
2 High-yield alternatives
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This article 4 REITs With Recent Price Target Hikes originally appeared on Benzinga.com
