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The Zacks Analyst Blog Highlights: JLL, Prologis, DCT Industrial Trust and Duke Realty
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For Immediate Release
Chicago, IL – September 29, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JLL Inc. (NYSE:(JLL - Free Report) – Free Report), Prologis Inc. (NYSE:(PLD - Free Report) – Free Report), DCT Industrial Trust Inc. (NYSE: – Free Report) and Duke Realty Corporation (NYSE: – Free Report).
Forget Rate Moves, Industrial REITs Are Poised to Excel
Use of leverage for real estate investment trust (REIT) business makes returns from this industry susceptible to interest-rate movements. This is because rise in interest rate affects the present value of future cash flows.
However, when fundamentals of the underlying asset category, to which the REITs cater to, remain strong, there is scope for increasing future cash flows from the assets. This is how REITs emerge as winners even with rate hikes.
For instance, the industrial asset category has grabbed attention on the back of robust demand, recovering economy and job market, strengthening e-commerce market, and healthy manufacturing environment.
Particularly, amid economic expansion, e-commerce development and heightened urbanization, companies are shifting strategy toward services like same-day delivery and other options, fueling demand for warehouse distribution facilities.
Amid this, the industrial investment momentum has gathered steam and superseded the overall commercial real estate market, with investors enhancing the industrial holdings, per a report from real estate services company, JLL Inc. (NYSE:(JLL - Free Report) – Free Report). In fact, investment sales aggregated $23.8 billion in the first half of this year. This marked more than 20% increase year over year.
Also, industrial rents have touched an all-time high of $5.35 per square foot in the second quarter of 2017 amid the national historic low level of vacancy. While more new supply is coming to the market, there is dearth of quality vacant space in the market to absorb, per the report.
Leasing activity for new construction is particularly led by e-commerce, logistics and distribution companies. According to a report from Prologis Inc. (NYSE:(PLD - Free Report) – Free Report), for a given level of revenues, online retailers require three times the distribution center space compared with traditional retailers. This is opening up opportunities for industrial REITs like Prologis, DCT Industrial Trust Inc. (NYSE: – Free Report) and Duke Realty Corporation (NYSE: – Free Report).
Against such a favorable backdrop, industrial REITs delivered returns of 19.3% through August 2017, handily outpacing the broader market. Considering the improving economy and healthy fundamentals of the industrial sector, this trend is likely to continue.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: JLL, Prologis, DCT Industrial Trust and Duke Realty
For Immediate Release
Chicago, IL – September 29, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JLL Inc. (NYSE:(JLL - Free Report) – Free Report), Prologis Inc. (NYSE:(PLD - Free Report) – Free Report), DCT Industrial Trust Inc. (NYSE: – Free Report) and Duke Realty Corporation (NYSE: – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Forget Rate Moves, Industrial REITs Are Poised to Excel
Use of leverage for real estate investment trust (REIT) business makes returns from this industry susceptible to interest-rate movements. This is because rise in interest rate affects the present value of future cash flows.
However, when fundamentals of the underlying asset category, to which the REITs cater to, remain strong, there is scope for increasing future cash flows from the assets. This is how REITs emerge as winners even with rate hikes.
For instance, the industrial asset category has grabbed attention on the back of robust demand, recovering economy and job market, strengthening e-commerce market, and healthy manufacturing environment.
Particularly, amid economic expansion, e-commerce development and heightened urbanization, companies are shifting strategy toward services like same-day delivery and other options, fueling demand for warehouse distribution facilities.
Amid this, the industrial investment momentum has gathered steam and superseded the overall commercial real estate market, with investors enhancing the industrial holdings, per a report from real estate services company, JLL Inc. (NYSE:(JLL - Free Report) – Free Report). In fact, investment sales aggregated $23.8 billion in the first half of this year. This marked more than 20% increase year over year.
Also, industrial rents have touched an all-time high of $5.35 per square foot in the second quarter of 2017 amid the national historic low level of vacancy. While more new supply is coming to the market, there is dearth of quality vacant space in the market to absorb, per the report.
Leasing activity for new construction is particularly led by e-commerce, logistics and distribution companies. According to a report from Prologis Inc. (NYSE:(PLD - Free Report) – Free Report), for a given level of revenues, online retailers require three times the distribution center space compared with traditional retailers. This is opening up opportunities for industrial REITs like Prologis, DCT Industrial Trust Inc. (NYSE: – Free Report) and Duke Realty Corporation (NYSE: – Free Report).
Against such a favorable backdrop, industrial REITs delivered returns of 19.3% through August 2017, handily outpacing the broader market. Considering the improving economy and healthy fundamentals of the industrial sector, this trend is likely to continue.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.