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REITs to Watch for Q2 Earnings on Aug 11: CSAL, CCP, CHCT
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Though the current reporting cycle is drawing to a close, results are still pouring in from the real estate investment trust (REIT) industry. In fact, on Thursday, Aug 11, Communications Sales & Leasing, Inc. , Care Capital Properties, Inc. and Community Healthcare Trust Incorporated (CHCT - Free Report) are slated to release their quarterly figures.
Per the Earnings Preview report, for the Finance Sector, of which REITs are part, total Q2 earnings are projected to be down 5.3% on 0.4% lower revenues. This will follow the 6.9% decrease in the sector’s earnings in the previous quarter.
However, the REIT industry has witnessed a mixed earnings season thus far. Though the industry benefited from a sustained low-rate environment in the second quarter, the economic environment and individual market dynamics equally played a crucial role in their performances.
While REITs like Prologis, Inc. (PLD - Free Report) , SL Green Realty Corp. (SLG - Free Report) and Boston Properties Inc. (BXP - Free Report) reported better-than-expected numbers, Public Storage (PSA - Free Report) , Vornado Realty Trust (VNO - Free Report) and Equity Residential (EQR - Free Report) failed to surpass expectations in the quarter.
Since, neither do all REITs cater to the same asset class, nor are they equally poised to surpass analyst’s expectations, we relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chance 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.
Conversely, we caution against stocks with a Zacks Rank #4 or #5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Let’s now check how the above-mentioned companies are expected to perform, when they report their second-quarter results on Aug 11, 2016.
Communications Sales & Leasing is involved in the acquisition and construction of mission critical communications infrastructure and provides wireless infrastructure solutions for the communications industry. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. Though Communications Sales & Leasing enjoys a favorable Zacks rank, its chances of a beat is lowered for a 0.00% ESP.
Care Capital Properties is a healthcare REIT with a diversified portfolio of skilled nursing facilities and other healthcare assets operated by private regional and local care providers. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Despite a favorable rank, surprise prediction becomes difficult due to its 0.00% ESP.
Community Healthcare Trust is engaged in the acquisition and ownership of properties which are leased to hospitals, doctors, healthcare systems or other healthcare service providers. The company has an Earnings ESP of 0.00% and a Zacks Rank #4. Surprise prediction here too becomes inconclusive, with the company not having the right combination of ESP and rank.
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REITs to Watch for Q2 Earnings on Aug 11: CSAL, CCP, CHCT
Though the current reporting cycle is drawing to a close, results are still pouring in from the real estate investment trust (REIT) industry. In fact, on Thursday, Aug 11, Communications Sales & Leasing, Inc. , Care Capital Properties, Inc. and Community Healthcare Trust Incorporated (CHCT - Free Report) are slated to release their quarterly figures.
Per the Earnings Preview report, for the Finance Sector, of which REITs are part, total Q2 earnings are projected to be down 5.3% on 0.4% lower revenues. This will follow the 6.9% decrease in the sector’s earnings in the previous quarter.
However, the REIT industry has witnessed a mixed earnings season thus far. Though the industry benefited from a sustained low-rate environment in the second quarter, the economic environment and individual market dynamics equally played a crucial role in their performances.
While REITs like Prologis, Inc. (PLD - Free Report) , SL Green Realty Corp. (SLG - Free Report) and Boston Properties Inc. (BXP - Free Report) reported better-than-expected numbers, Public Storage (PSA - Free Report) , Vornado Realty Trust (VNO - Free Report) and Equity Residential (EQR - Free Report) failed to surpass expectations in the quarter.
Since, neither do all REITs cater to the same asset class, nor are they equally poised to surpass analyst’s expectations, we relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chance 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.
Conversely, we caution against stocks with a Zacks Rank #4 or #5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Let’s now check how the above-mentioned companies are expected to perform, when they report their second-quarter results on Aug 11, 2016.
Communications Sales & Leasing is involved in the acquisition and construction of mission critical communications infrastructure and provides wireless infrastructure solutions for the communications industry. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. Though Communications Sales & Leasing enjoys a favorable Zacks rank, its chances of a beat is lowered for a 0.00% ESP.
COMMUNICTNS S&L Price and EPS Surprise
COMMUNICTNS S&L Price and EPS Surprise | COMMUNICTNS S&L Quote
Care Capital Properties is a healthcare REIT with a diversified portfolio of skilled nursing facilities and other healthcare assets operated by private regional and local care providers. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Despite a favorable rank, surprise prediction becomes difficult due to its 0.00% ESP.
CARE CAP PROPRT Price and EPS Surprise
CARE CAP PROPRT Price and EPS Surprise | CARE CAP PROPRT Quote
Community Healthcare Trust is engaged in the acquisition and ownership of properties which are leased to hospitals, doctors, healthcare systems or other healthcare service providers. The company has an Earnings ESP of 0.00% and a Zacks Rank #4. Surprise prediction here too becomes inconclusive, with the company not having the right combination of ESP and rank.
COMM HLTHCR TR Price and EPS Surprise
COMM HLTHCR TR Price and EPS Surprise | COMM HLTHCR TR Quote
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