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Retail REITs to Watch for in Q2 Earnings: NNN, RPT, REG, RPAI
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As we tread into another busy week of the current reporting cycle, a lot of activity can be noticed in the real estate investment trust (REIT) space. In fact, there is a deluge of Q2 earnings releases this week, with National Retail Properties, Inc. (NNN - Free Report) , Ramco-Gershenson Properties Trust , Regency Centers Corporation (REG - Free Report) and Retail Properties of America, Inc. of the retail REIT category, reporting their numbers on Aug 2.
Industry top shots like Simon Property Group, Inc. (SPG - Free Report) and Kimco Realty Corporation (KIM - Free Report) already announced their results last week. Simon Property reported a positive surprise of 0.38% benefitting from growth in operating income as well as new developments and expansion. Kimco’s results were in line with the Zacks Consensus Estimate and its occupancy reached an eight-year high.
Armed with strong consumer spending, job gains and rising income levels, the U.S. economy registered a solid rebound and retails sales picked up in the second quarter. Further, with omni-channel retailing expansion, demand for space climbed in the brick-and-mortar centers.
Per the study of CBRE Group Inc. , the national retail availability rate has fallen to its lowest level since 2008 amid reviving retail sales. In second-quarter 2016, retail availability averaged 10.9%, reflecting a 10 basis points (bps) contraction sequentially and 30 bps from a year ago. Encouragingly, two-thirds of the U.S. markets experienced tighter retail availability.
However, not every retail REIT is equally poised to beat earnings this season. Hence, we relied on the Zacks methodology for predicting a beat this quarter, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology – Earnings ESP – shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Let’s take a look at what’s in store for these retail REITs which are slated to report on Aug 2.
National Retail Properties invests in single tenant net-leased retail properties throughout the United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s zero ESP makes surprise prediction difficult.
Ramco-Gershenson Properties Trust is engaged in the business of owning and managing large, multi-anchor shopping centers, primarily in a number of the largest-metropolitan markets in the central United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). It is not poised for a beat this quarter as it lacks the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold). We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Regency Centers Corporation is engaged in ownership, operations and development of high-quality, grocery-anchored neighborhood and community shopping centers. The company has an Earnings ESP of -1.24% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, a negative ESP lowers the chances of a beat this quarter.
Retail Properties of America is engaged in the ownership and operations of high quality, strategically-located shopping centers in the United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). Therefore, despite a favorable Zacks Rank, the stock’s zero ESP makes surprise prediction difficult.
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Retail REITs to Watch for in Q2 Earnings: NNN, RPT, REG, RPAI
As we tread into another busy week of the current reporting cycle, a lot of activity can be noticed in the real estate investment trust (REIT) space. In fact, there is a deluge of Q2 earnings releases this week, with National Retail Properties, Inc. (NNN - Free Report) , Ramco-Gershenson Properties Trust , Regency Centers Corporation (REG - Free Report) and Retail Properties of America, Inc. of the retail REIT category, reporting their numbers on Aug 2.
Industry top shots like Simon Property Group, Inc. (SPG - Free Report) and Kimco Realty Corporation (KIM - Free Report) already announced their results last week. Simon Property reported a positive surprise of 0.38% benefitting from growth in operating income as well as new developments and expansion. Kimco’s results were in line with the Zacks Consensus Estimate and its occupancy reached an eight-year high.
Armed with strong consumer spending, job gains and rising income levels, the U.S. economy registered a solid rebound and retails sales picked up in the second quarter. Further, with omni-channel retailing expansion, demand for space climbed in the brick-and-mortar centers.
Per the study of CBRE Group Inc. , the national retail availability rate has fallen to its lowest level since 2008 amid reviving retail sales. In second-quarter 2016, retail availability averaged 10.9%, reflecting a 10 basis points (bps) contraction sequentially and 30 bps from a year ago. Encouragingly, two-thirds of the U.S. markets experienced tighter retail availability.
However, not every retail REIT is equally poised to beat earnings this season. Hence, we relied on the Zacks methodology for predicting a beat this quarter, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology – Earnings ESP – shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Let’s take a look at what’s in store for these retail REITs which are slated to report on Aug 2.
National Retail Properties invests in single tenant net-leased retail properties throughout the United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s zero ESP makes surprise prediction difficult.
NATL RETAIL PPT Price and EPS Surprise
NATL RETAIL PPT Price and EPS Surprise | NATL RETAIL PPT Quote
Ramco-Gershenson Properties Trust is engaged in the business of owning and managing large, multi-anchor shopping centers, primarily in a number of the largest-metropolitan markets in the central United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). It is not poised for a beat this quarter as it lacks the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold). We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
RAMCO-GERSHENSN Price and EPS Surprise
RAMCO-GERSHENSN Price and EPS Surprise | RAMCO-GERSHENSN Quote
Regency Centers Corporation is engaged in ownership, operations and development of high-quality, grocery-anchored neighborhood and community shopping centers. The company has an Earnings ESP of -1.24% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, a negative ESP lowers the chances of a beat this quarter.
REGENCY CTRS CP Price and EPS Surprise
REGENCY CTRS CP Price and EPS Surprise | REGENCY CTRS CP Quote
Retail Properties of America is engaged in the ownership and operations of high quality, strategically-located shopping centers in the United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). Therefore, despite a favorable Zacks Rank, the stock’s zero ESP makes surprise prediction difficult.
RETAIL PROPERTS Price and EPS Surprise
RETAIL PROPERTS Price and EPS Surprise | RETAIL PROPERTS Quote
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