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Duke Realty's (DRE) Rating Raised by S&P: Time to Buy?
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Ushering in good news for its shareholders, Duke Realty Corp. announced that the company’s corporate credit rating has been raised by Standard & Poor's (S&P) Financial Services to BBB+ from BBB, with a stable outlook.
Per the announcement, this move by the rating agency is backed by Duke Realty's sustained solid operating performance, improvement in balance sheet over the past year and encouraging portfolio repositioning efforts.
Notably, the rating upgrade enhances its creditworthiness in the market and is likely to boost investors’ confidence in the stock. In fact, such moves provide companies an opportunity to enjoy reduced costs on debts and better access to capital.
Going forward, Duke Realty’s strategically located high-quality properties, along with a leveraged local presence, are encouraging. Initiatives to increase exposure in industrial assets and presence of healthcare assets augur well for the company’s long-term growth.
Moreover, the company completed substantial disposition of office property during the third quarter. It remains on track to dispose additional suburban office assets in the fourth quarter, as well as in the next year, finally exiting this asset category.
However, operational risks related to large development pipeline, near-term dilutive impact of continued divestiture and any further rise in the interest rates remain plausible concerns.
Shares of Duke Realty have outperformed the Zacks categorized REIT – Equity Trust – Other industry year to date. In fact, Duke Realty’s shares have logged in a return of 26.6% over this time frame, while the industry managed to post a gain of 3.8%.
However, its funds from operations (FFO) per share estimates for the current quarter and full-year 2016 have remained unchanged at 30 cents and $1.20, respectively, over the past 30 days. Duke Realty currently has a Zacks Rank #3 (Hold).
DCT Industrial delivered an average positive surprise of 5.18% over the trailing four quarters.
Mack-Cali’s 2016 estimates ascended 1.4% over the past 30 days to $2.19.
Seritage’s estimates for 2016 inched up 0.9% over the past 60 days to $2.34.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Duke Realty's (DRE) Rating Raised by S&P: Time to Buy?
Ushering in good news for its shareholders, Duke Realty Corp. announced that the company’s corporate credit rating has been raised by Standard & Poor's (S&P) Financial Services to BBB+ from BBB, with a stable outlook.
Per the announcement, this move by the rating agency is backed by Duke Realty's sustained solid operating performance, improvement in balance sheet over the past year and encouraging portfolio repositioning efforts.
Notably, the rating upgrade enhances its creditworthiness in the market and is likely to boost investors’ confidence in the stock. In fact, such moves provide companies an opportunity to enjoy reduced costs on debts and better access to capital.
Going forward, Duke Realty’s strategically located high-quality properties, along with a leveraged local presence, are encouraging. Initiatives to increase exposure in industrial assets and presence of healthcare assets augur well for the company’s long-term growth.
Moreover, the company completed substantial disposition of office property during the third quarter. It remains on track to dispose additional suburban office assets in the fourth quarter, as well as in the next year, finally exiting this asset category.
However, operational risks related to large development pipeline, near-term dilutive impact of continued divestiture and any further rise in the interest rates remain plausible concerns.
Shares of Duke Realty have outperformed the Zacks categorized REIT – Equity Trust – Other industry year to date. In fact, Duke Realty’s shares have logged in a return of 26.6% over this time frame, while the industry managed to post a gain of 3.8%.
However, its funds from operations (FFO) per share estimates for the current quarter and full-year 2016 have remained unchanged at 30 cents and $1.20, respectively, over the past 30 days. Duke Realty currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry can consider stocks like DCT Industrial Trust Inc. , Mack-Cali Realty Corp. and Seritage Growth Properties (SRG - Free Report) . Each of these stocks has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DCT Industrial delivered an average positive surprise of 5.18% over the trailing four quarters.
Mack-Cali’s 2016 estimates ascended 1.4% over the past 30 days to $2.19.
Seritage’s estimates for 2016 inched up 0.9% over the past 60 days to $2.34.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>