A month has gone by since the last earnings report for Duke Realty . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Duke Realty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Duke Realty Q4 FFO and Revenues Fall Short of Estimates
Duke Realty’s fourth-quarter 2021 core FFO per share of 44 cents lagged the Zacks Consensus Estimate of 45 cents. However, the figure increased 7.3% from the year-ago tally of 41 cents.
The quarterly results reflect a decline in revenues.
Revenues of $264.6 million declined marginally on a year-over-year basis. The figure also lagged the Zacks Consensus Estimate of $276.2 million.
Quarter in Detail
Duke Realty leased 8.9 million square feet of space during the December-end quarter. Tenant retention was 68.3% for the reported quarter and 87.7% after considering immediate backfills.
Additionally, the company registered same-property NOI growth of 5.2% on a cash basis, year over year.
Duke Realty reported overall cash and annualized net effective rent growth on new and renewal leases of 20.6% and 40.8%, respectively, during the fourth quarter.
As of Dec 31, 2021, Duke Realty’s total portfolio, including properties under development, was 95.1% leased, contracting 50 basis points (bps) from the previous quarter’s end-level and 90bps from the prior-year quarter’s reading.
The stabilized in-service portfolio was 98.7% leased as of Dec 31, 2021, up 40 basis points, sequentially, and 60 bps from the level at the prior-year quarter’s end.
Duke Realty exited fourth-quarter 2021 with $69.8 million of cash and cash equivalents, up from $6.3 million as of Dec 31, 2020.
Duke Realty issued 1.7 million shares during the quarter, reaping $95 million of net proceeds under its ATM program at an average price of $56.90 per share.
Portfolio Activity
During the fourth quarter, Duke Realty’s income producing real-estate acquisitions totaled $206 million, while building dispositions included one fully leased, 517,000-square-foot building in Columbus.
Duke Realty started nine new speculative development projects during the quarter, with expected costs of $466 million. As of Dec 31, 2021, its development pipeline was 48% leased.
2022 Guidance
Duke Realty issued 2022 core FFO per share guidance of $1.87-$1.93. At the mid-point, this projects a 9.8% increase from the year-ago figure.
The company anticipates to maintaining a strong balance-sheet position and long-term strategic objectives.
With a full year of increased rents from leases signed in 2021 and an expected continuation of rental rate growth on leases to be signed in 2022, management provided the same-property NOI growth estimate of 5.4-6.2%. on a cash basis.
Property acquisitions are expected to be $300-$500 million, with focus on the coastal tier-one markets.
Development starts for 2022 are projected at $1.2-$1.4 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Duke Realty has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Duke Realty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
Duke Realty (DRE) Down 5.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Duke Realty . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Duke Realty due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Duke Realty Q4 FFO and Revenues Fall Short of Estimates
Duke Realty’s fourth-quarter 2021 core FFO per share of 44 cents lagged the Zacks Consensus Estimate of 45 cents. However, the figure increased 7.3% from the year-ago tally of 41 cents.
The quarterly results reflect a decline in revenues.
Revenues of $264.6 million declined marginally on a year-over-year basis. The figure also lagged the Zacks Consensus Estimate of $276.2 million.
Quarter in Detail
Duke Realty leased 8.9 million square feet of space during the December-end quarter. Tenant retention was 68.3% for the reported quarter and 87.7% after considering immediate backfills.
Additionally, the company registered same-property NOI growth of 5.2% on a cash basis, year over year.
Duke Realty reported overall cash and annualized net effective rent growth on new and renewal leases of 20.6% and 40.8%, respectively, during the fourth quarter.
As of Dec 31, 2021, Duke Realty’s total portfolio, including properties under development, was 95.1% leased, contracting 50 basis points (bps) from the previous quarter’s end-level and 90bps from the prior-year quarter’s reading.
The stabilized in-service portfolio was 98.7% leased as of Dec 31, 2021, up 40 basis points, sequentially, and 60 bps from the level at the prior-year quarter’s end.
Duke Realty exited fourth-quarter 2021 with $69.8 million of cash and cash equivalents, up from $6.3 million as of Dec 31, 2020.
Duke Realty issued 1.7 million shares during the quarter, reaping $95 million of net proceeds under its ATM program at an average price of $56.90 per share.
Portfolio Activity
During the fourth quarter, Duke Realty’s income producing real-estate acquisitions totaled $206 million, while building dispositions included one fully leased, 517,000-square-foot building in Columbus.
Duke Realty started nine new speculative development projects during the quarter, with expected costs of $466 million. As of Dec 31, 2021, its development pipeline was 48% leased.
2022 Guidance
Duke Realty issued 2022 core FFO per share guidance of $1.87-$1.93. At the mid-point, this projects a 9.8% increase from the year-ago figure.
The company anticipates to maintaining a strong balance-sheet position and long-term strategic objectives.
With a full year of increased rents from leases signed in 2021 and an expected continuation of rental rate growth on leases to be signed in 2022, management provided the same-property NOI growth estimate of 5.4-6.2%. on a cash basis.
Property acquisitions are expected to be $300-$500 million, with focus on the coastal tier-one markets.
Development starts for 2022 are projected at $1.2-$1.4 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Duke Realty has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Duke Realty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.