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REITs' Q4 Earnings to Watch on Feb 2: AIV, ESS, KIM & DCT
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There has been a flurry of releases in the real estate investment trust (“REIT”) sector this week. A couple of important companies from this sector which have already reported their results last week are Prologis, Inc. (PLD - Free Report) and SL Green Realty Corp. (SLG - Free Report) . While SL Green’s performance missed expectations, Prologis reported in-line results.
Some REITs, belonging to different sub-categories, which are slated to report results on Feb 2 are Apartment Investment and Management Company (AIV - Free Report) , Essex Property Trust, Inc. (ESS - Free Report) , Kimco Realty Corporation (KIM - Free Report) and DCT Industrial Trust Inc. .
The fourth-quarter 2016 witnessed many major developments in the REIT sector. During the first half of the quarter, high chances of a rate hike and political uncertainty sent the bond yields soaring. Eventually, in mid-December, the U.S. Federal Reserve raised the key interest rates by 25 basis points to the range of 0.50–0.75%, the second hike since Dec 2015.
However, interest rates are still very low. According to the National Association of Real Estate Investment Trusts, despite the rise in rate, the REITs are likely to show improved performance with robust equity issuance and low debt ratios.
Also, a tightening monetary policy indicates economic strength, augmenting the likelihood of an increase in rent and occupancy levels. This, in turn, leads to a healthy net operating income expansion. All these factors benefit REITs and may neutralize the impact of a high rate of interest.
In fact, per a study by the commercial real estate services firm CBRE Group Inc. , the U.S. economy is gradually gaining strength. In Dec 2016, wages increased 2.9% year over year, the highest in seven years. This growth trend is expected to continue in 2017.
Let’s have a look at what’s in store for the three REITs set to release their fourth-quarter results tomorrow:
For doing this, we rely 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 chances of a beat this quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per 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.
Denver, CO-based Apartment Investment and Management Company – commonly known as Aimco is expected to report its results after market close. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Our model does not conclusively predict that the company will record a positive surprise (read more: What's in the Cards for Aimco this Earnings Season?).
Apartment Investment and Management Company Price and EPS Surprise
Essex Property Trust is a San Mateo, CA-based residential REIT which has an Earnings ESP of -0.36% and a Zacks Rank #3. Our proven model does not conclusively show that the company is likely to post a positive surprise this quarter (read more: Essex Property Q4 Earnings: What's in the Cards?).
New Hyde Park, NY-based Kimco is expected to report its results after market close. The company has an Earnings ESP of -2.63% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise (read more: Kimco Realty to Report Q4 Earnings: What's in Store?).
Denver, CO-based DCT Industrial Trust expected to report its results after market close. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. Our model does not conclusively predict that the company will record a positive surprise.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.Be among the very first to see it>>
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REITs' Q4 Earnings to Watch on Feb 2: AIV, ESS, KIM & DCT
There has been a flurry of releases in the real estate investment trust (“REIT”) sector this week. A couple of important companies from this sector which have already reported their results last week are Prologis, Inc. (PLD - Free Report) and SL Green Realty Corp. (SLG - Free Report) . While SL Green’s performance missed expectations, Prologis reported in-line results.
Some REITs, belonging to different sub-categories, which are slated to report results on Feb 2 are Apartment Investment and Management Company (AIV - Free Report) , Essex Property Trust, Inc. (ESS - Free Report) , Kimco Realty Corporation (KIM - Free Report) and DCT Industrial Trust Inc. .
The fourth-quarter 2016 witnessed many major developments in the REIT sector. During the first half of the quarter, high chances of a rate hike and political uncertainty sent the bond yields soaring. Eventually, in mid-December, the U.S. Federal Reserve raised the key interest rates by 25 basis points to the range of 0.50–0.75%, the second hike since Dec 2015.
However, interest rates are still very low. According to the National Association of Real Estate Investment Trusts, despite the rise in rate, the REITs are likely to show improved performance with robust equity issuance and low debt ratios.
Also, a tightening monetary policy indicates economic strength, augmenting the likelihood of an increase in rent and occupancy levels. This, in turn, leads to a healthy net operating income expansion. All these factors benefit REITs and may neutralize the impact of a high rate of interest.
In fact, per a study by the commercial real estate services firm CBRE Group Inc. , the U.S. economy is gradually gaining strength. In Dec 2016, wages increased 2.9% year over year, the highest in seven years. This growth trend is expected to continue in 2017.
Let’s have a look at what’s in store for the three REITs set to release their fourth-quarter results tomorrow:
For doing this, we rely 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 chances of a beat this quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Per 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.
Denver, CO-based Apartment Investment and Management Company – commonly known as Aimco is expected to report its results after market close. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Our model does not conclusively predict that the company will record a positive surprise (read more: What's in the Cards for Aimco this Earnings Season?).
Apartment Investment and Management Company Price and EPS Surprise
Apartment Investment and Management Company Price and EPS Surprise | Apartment Investment and Management Company Quote
Essex Property Trust is a San Mateo, CA-based residential REIT which has an Earnings ESP of -0.36% and a Zacks Rank #3. Our proven model does not conclusively show that the company is likely to post a positive surprise this quarter (read more: Essex Property Q4 Earnings: What's in the Cards?).
Essex Property Trust, Inc. Price and EPS Surprise
Essex Property Trust, Inc. Price and EPS Surprise | Essex Property Trust, Inc. Quote
New Hyde Park, NY-based Kimco is expected to report its results after market close. The company has an Earnings ESP of -2.63% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise (read more: Kimco Realty to Report Q4 Earnings: What's in Store?).
Kimco Realty Corporation Price and EPS Surprise
Kimco Realty Corporation Price and EPS Surprise | Kimco Realty Corporation Quote
Denver, CO-based DCT Industrial Trust expected to report its results after market close. The company has an Earnings ESP of 0.00% and a Zacks Rank #2. Our model does not conclusively predict that the company will record a positive surprise.
DCT Industrial Trust Inc Price and EPS Surprise
DCT Industrial Trust Inc Price and EPS Surprise | DCT Industrial Trust Inc Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.Be among the very first to see it>>