HomeBusiness7 REITs receive analyst upgrades in the first week of May

7 REITs receive analyst upgrades in the first week of May

7 REITs receive analyst upgrades in the first week of May

Analyst upgrades are always welcome news for investors, as upgrades trigger buying activity that supports stock price appreciation.

It appears analysts have a better feeling about the future direction of interest rates and interest rate-sensitive stocks like real estate investment trusts (REITs), as seven different REITs across five different subsectors received analyst upgrades this week.

Sunstone Hotel Investors Inc (NYSE:SHO) is an Aliso Viejo, CA-based Hotel REIT with 6,675 rooms in 14 hotels on both the US coast and Hawaii. The hotel brands include Hyatt Regency, Marriott, Hilton and Four Seasons.

On May 8, Sunstone Hotel Investors reported operating results for the first quarter of 2024. Funds from Operation (FFO) of $0.19 per share beat the estimate of $0.17 per share, but were below the $0.21 per share FFO in the first quarter 2023. Revenue of $217.166 million exceeded the estimate of $214.595 million, but was below first quarter 2023 revenue of $243.443 million.

Aside from the declines from the same period last year, Compass Point analyst Floris Van Dijkum upgraded Sunstone Hotel from Sell to Neutral on May 7 and raised the price target from $10 to $12.

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Camden Property Trust (NYSE:CPT) is a Houston, Texas-based residential REIT that owns and manages 172 properties with 58,634 units in 15 major cities across the US. Some apartment complexes also include ground-floor retail space, offices or mixed-use space. It is a member of the Standard & Poor’s 500 index (S&P 500 and) and had its IPO in 1993. At the end of the third quarter of 2023, the occupancy rate was 95.0%.

On May 6, Piper Sandler analyst Alexander Goldfarb upgraded Camden Property Trust from Underweight to Neutral and raised the price target from $90 to $110. Three other brokers maintained their previous positions on the same day, with all raising their price targets between $110 and $118.

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Central America Apartment Communities Inc. (NYSE:MAA) is a self-managed residential REIT specializing in the purchase and lease of apartment complexes. As of March 2024, it owns 102,662 units in 300 communities in 16 states and Washington, DC. Most apartment community properties in Central America are located in the Southeast, Southwest, and Mid-Atlantic states.

On May 1, Mid-America reported first quarter 2024 operating results. FFO of $2.22 was in line with estimates, but below FFO of $2.28 from first quarter 2023. Revenue of $543, 62 million beat the estimate of $542.72 million and was above first quarter 2023 revenue of $529.03 million.

On May 6, Wedbush analyst Richard Anderson upgraded Mid-America Apartment from Neutral to Outperform, raising the price target 14% from $135 to $154.

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Healthpeak Properties Inc (NYSE:DOC) is an El Segundo, CA-based diversified healthcare REIT that owns and operates privately funded facilities such as life science centers, medical offices and continuing care retirement communities. Although it has properties across the country, most are in the San Francisco, San Diego and Boston areas. Healthpeak’s initial public offering took place in 1985 and was added to the S&P 500 in 2008. The company currently owns 774 properties worth more than $20 billion.

On March 1, Healthpeak officially merged with Physicians Realty Trust in an all-stock-for-stock transaction.

On April 25, Healthpeak reported operating results for the first quarter of 2024. FFO of $0.45 per share was a penny above the consensus estimate and up 7.14% from the first quarter FFO of $0.42 per share of 2023. Revenues of $606.560 million exceeded the consensus estimate of $588.284 million and were up 15.39% from revenues of $525.678 million in Q1 2023.

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Healthpeak also announced an increase in FY24 Diluted Adjusted Funds From Operations (AFFO) Guidance from $1.50-$1.56 to $1.53-$1.57.

Investors cheered the news, with Healthpeak rising more than 2% after announcing earnings and guidance.

On May 3, Wedbush analyst Richard Anderson upgraded Healthpeak Properties from Neutral to Outperform. No price target was given.

Tangier Inc (NYSE:SKT), formerly called Tangier Factory Outlet Centers Inc, is a Greensboro, NC-based retail REIT that owns, co-owns or manages 40 indoor and outdoor outlet malls spanning 15.6 million square feet and more than 3,000 stores in 20 states and Canada . Tanger Factory Outlet Centers was founded in 1981 and had its IPO in May 1993. Tanger’s occupancy rate at the end of 2023 was 97.3%

On April 30, Tangier reported excellent first-quarter operating results. FFO of $0.52 beat estimate of $0.51 and exceeded FFO of $0.46 per share in Q1 2023. Revenue of $123.371 million exceeded estimate of $122.804 million and was 13.24% above revenue from the fourth quarter of 2022 of $108.943 million. Tanger also increased its full-year 2024 Core FFO from $2.01-$2.09 per share to $2.03-$2.11.

On May 2, Compass Point analyst Floris Van Dijkum upgraded Tanger from Neutral to Buy and announced a price target of $32.

PotlatchDeltic Corp (NASDAQ:PCH) is a specialized REIT that invests in forest land. The Spokane, WA-based company owns nearly 2.2 million acres of forestland across seven states. It was founded in 1903 as Clearwater Timber Company and became a REIT in 2006. PotlatchDeltic merged with CatchMark Timer Trust, Inc. in 2022.

On April 29, PotlatchDeltic announced its first quarter 2024 operating results. Non-GAAP earnings per share of $0.00 beat estimates of (0.02). Revenue of $228.127 million exceeded the consensus estimate of $227.841 million and was 11.57% below first quarter 2023 revenue of $257.962 million.

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On May 1, RBC Capital analyst Matthew McKellar upgraded PotlatchDeltic from Sector Perform to Outperform and announced a $46 price target.

American Tower Corp (NYSE:AMT) is a Boston, Massachusetts-based specialty REIT that calls itself “a global leader in wireless infrastructure.” Founded in 1995, American Tower owns, operates and develops wireless and broadcast communications properties. Most of its business involves leasing space on wireless and cell towers, and it also leases portions of the land beneath the tower for equipment storage. Typical tower components include coaxial cables and fiber optic cables.

American Tower has a presence at 224,000 global communications sites in 25 different countries on six continents. Approximately 42,000 of these properties are in the US and Canada, and approximately 181,000 are international properties

On April 30, American Tower announced its first quarter 2024 operating results. Adjusted Funds from Operations (AFFO) of $2.79 per share easily exceeded the consensus estimate of $2.54 per share, and AFFO of $2.54 in the first quarter of 2023. Revenue of $2.834 billion also exceeded mainstream expectations of $2.795 billion and surpassed sales of $2.767 billion as of the first quarter of 2023. .

On May 1, Raymond James analyst Ric Prentiss upgraded American Tower from Outperform to Strong Buy and raised the price target from $226 to $248.

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