Duke Realty Focuses on Industrial Assets: Time to Hold?

WPC SOHO APLE

We updated our research report on Duke Realty Corporation on Jul 1, 2016. This Indianapolis, IN-based real estate investment trust (“REIT”) is engaged in owning, managing and developing industrial and healthcare properties across the nation.

In recent times, Duke Realty is focusing on enhancing its industrial assets and limiting its exposure to suburban office assets. Also, the company boasts a robust development platform to take advantage of the growth opportunities. Further, the improving industrial market fundamentals are anticipated to aid the company in becoming a stronger entity.

Further, Duke Realty’s strong local operating team and strategically positioned high-quality properties help it post a robust performance. Further, given the efficient operating platform, the company is anticipated to sustain improved performance, going forward.

Though the company is boosting its portfolio mix through continued divestitures, the near-term dilutive effect of such moves is unavoidable. Also, Duke Realty’s large development pipeline – although encouraging for its future growth – increases operational risks.

Over the past seven days, Zacks Consensus earnings estimate has remained unchanged at $1.18 and 1.25 per share for 2016 and 2017, respectively.

The stock presently carries a Zacks Rank #2 (Buy).

Investors interested in the REIT industry can consider stocks like Apple Hospitality REIT, Inc. (APLE - Free Report) , Sotherly Hotels Inc. (SOHO - Free Report) and W. P. Carey Inc. (WPC - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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