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REITs' Q4 Earnings Lined Up for Feb 18: VTR, VICI & More

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A number of REITs, including Ventas Inc. (VTR - Free Report) , VICI Properties (VICI - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) , Gaming and Leisure Properties, Inc. (GLPI - Free Report) and Americold Realty Trust (COLD - Free Report) , are slated to report fourth-quarter numbers on Feb 18.

Per the Zacks industry classification, the REIT industry is part of the broader Finance sector. For the Finance sector, fourth-quarter earnings are now projected to be up 16.8%, year over year, on 1.1% revenue growth, per the latest Earnings Trends. The projections reflect remarkable improvements following the declines of 11.7% in the third quarter, 45.3% in the second quarter, and 32.4% in the first.

Importantly, REITs invest in all types of properties, from residential, industrial, offices, malls to hospitals, hotels and data centers and several others. Moreover, the pandemic-induced economic disruption and its impact have widely varied across different property types.

Social-distancing or rather physical-distancing measures to curb the spread of coronavirus have emerged as one of the most important factors governing economic activities around the globe. This has, in fact, resulted in a deviation between different sectors of the economy with one side, involving low face-to-face contact, showing resilience and even gaining, and the other side, with higher risks for infections, significantly bearing the brunt. Similarly, with REITs offering the real estate structure for most economic activities, be it real or virtual, there are pockets of strengths and weaknesses too.

Let’s see what’s in the offing for the five above-mentioned REITs, which are scheduled to announce quarterly results tomorrow.

Ventas, Inc. will release fourth-quarter figures before the bell. Our proven model does not conclusively predict a positive surprise in terms of funds from operations (FFO) per share for the healthcare REIT this season.

The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a FFO beat. But that’s not the case here as Ventas currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of -1.29%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Over the preceding four quarters, Ventas outpaced estimates on all occasions, the average beat being 5.56%.

For Ventas, we note that 63.7% of its investments are in seniors housing communities (as of the third-quarter end) and hence, given the significant exposure, the company’s quarterly performance is expected to have been affected by occupancy pressure and rent growth deceleration. A fall in income, along with high COVID-related expenses, might have hindered Ventas’ total NOI growth during the quarter under review. (Read more: Can Ventas Maintain Its Beat Streak in Q4 Earnings?)

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $930.7 million, suggesting a 6.6% decrease from the prior-year period. Also, there is a lack of any solid catalyst to instill optimism regarding the company’s prospects prior to the fourth-quarter earnings release. The Zacks Consensus Estimate for the FFO per share has been unchanged at 73 cents over the past month. It also indicates a 21.5% year-over-year decline.

Ventas, Inc. Price and EPS Surprise

Ventas, Inc. Price and EPS Surprise

Ventas, Inc. price-eps-surprise | Ventas, Inc. Quote

VICI Properties is set to report fourth-quarter figures after the bell. Our proven model does not conclusively predict a positive surprise in terms of FFO per share for the experiential REIT this time around, as VICI Properties currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

In the last four quarters, the REIT, which is into the ownership of one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace, has surpassed the Zacks Consensus Estimate on three occasions and met in the other. It delivered an average surprise of 1.99% during this period.

The Zacks Consensus Estimate for the October-December quarter revenues is pegged at $361.7 million, calling for a 52.3% jump, year on year. VICI Properties’ FFO per share estimate of 47 cents indicates a 27% increase from the prior-year period.

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote

Host Hotels & Resorts is scheduled to announce quarterly numbers after the market closes. Over the preceding four quarters, the company exceeded estimates on two occasions, missed in one and met in another, the average beat being 8.83%.

The Zacks Consensus Estimate for Host Hotels’ fourth-quarter revenues is presently pinned at $236.4 million, suggesting an 82.3% year-over-year slump. The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at a negative 20 cents over the past month. It also calls for a 148.8% year-over-year decline.

Resumption of operations at the company’s hotels during the third quarter is likely to have enabled this hotel REIT to witness gradual improvement in fourth-quarter occupancy and revenue per available room (RevPAR) and benefit from a recovery in leisure demand. In fact, strategic positioning of its properties is anticipated to have backed a recovery in leisure demand in specific drive-to markets during the December-end quarter. However, as COVID-19 cases surged in the back half of the period under discussion, restrictions on public gatherings, and stay-at-home mandates were imposed across certain states. This might have dented travel demand and hotel operations. (Read more: Host Hotels to Report Q4 Earnings: What's in Store?)

You can see the complete list of today’s Zacks #1 Rank stocks here.

Gaming and Leisure Properties will announce results after market close. Our proven model does not conclusively predict a positive surprise in terms of FFO per share for the REIT this season, as it currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Over the past four quarters, the company’s FFO per share topped the Zacks Consensus Estimate on three occasions and met in the other, the average beat being 2.37%.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $302.95 million, indicating a year-over-year improvement of 4.8%. However, the FFO per share estimate of 85 cents suggests a year-over-year decrease of 2.3%.

Americold Realty Trust is set to report quarterly numbers after the closing bell. Our proven model does not conclusively predict a positive surprise in terms of FFO per share for this REIT in the quarter to be reported, as it presently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.

Over the past four quarters, Americold, which is focused on the operation and development of temperature-controlled warehouses, beat the Zacks Consensus Estimate on two occasions for as many misses, the average beat being 1.49%.

The Zacks Consensus Estimate for quarterly revenues is currently pinned at $516.4 million, suggesting a 6.3% rise from the prior-year quarter. Also, the consensus mark of 34 cents for the quarterly FFO per share calls for an increase of 13.3%, year on year.

Americold Realty Trust Price and EPS Surprise

Americold Realty Trust Price and EPS Surprise

Americold Realty Trust price-eps-surprise | Americold Realty Trust Quote

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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