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What to Expect From BRT Apartments (BRT) This Earnings Season?
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BRT Apartments Corp. (BRT - Free Report) is slated to report third-quarter 2022 earnings on Nov 7 after market close. The company’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this residential real estate investment trust’s (REIT) adjusted FFO per share missed the Zacks Consensus Estimate by 5.13%.
Over the last four quarters, BRT Apartments surpassed the Zacks Consensus Estimate on three occasions and missed the same on the other, the average beat being 9.29%. The graph below depicts the surprise history of the company:
Let’s see how things have shaped up before this announcement.
Factors to Consider
For the U.S. apartment market, demand remained healthy initially in the third quarter, though normal seasonality returned in September.
BRT Apartments is the owner and operator of Class B and better multi-family assets, mainly in well-situated Sun Belt locations. The company is expected to have benefited from healthy market fundamentals.
Particularly, in the third quarter, BRT Apartments’ properties in growth markets are likely to have benefited from population growth and job in-migration. Also, a shortage in quality housing is aiding the demand for rental units in its markets.
Further, BRT Apartments is likely to have progressed in its efforts to grow and improve its portfolio through targeted dispositions and the acquisition of its partners’ remaining interests in several joint ventures.
During the said period, BRT announced that the unconsolidated joint venture in which it holds an 80% equity stake accomplished the sale of a 204-unit multifamily property — Waters’ Edge — in Columbia, SC, for $32.4 million. The company estimated to recognize an $11.4 million gain on this.
The Zacks Consensus Estimate of $21.9 million for third-quarter revenues suggests a significant increase from $7.7 million reported in the year-ago period.
Before the third-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 42 cents in the past month. However, the figure suggests year-over-year growth of 35.5%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for BRT Apartments this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Notable Residential REITs
Equity Residential’s (EQR - Free Report) third-quarter 2022 normalized FFO per share of 92 cents outpaced the Zacks Consensus Estimate of 91 cents. Rental income of $695.1 million also exceeded the consensus mark of $694.1 million. On a year-over-year basis, the FFO per share grew 19.5% from 77 cents, while the rental income increased 11.5%.
Equity Residential’s results reflected healthy demand during the primary leasing season. This residential REIT benefited from the favorable real estate tax and payroll expenses. However, EQR narrowed its full-year guidance for normalized FFO per share.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported a third-quarter 2022 core FFO per share of $2.19, surpassing the Zacks Consensus Estimate of $2.09. The reported number improved by 23% year over year.
Mid-America Apartment Communities’ quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. MAA increased its outlook for core FFO growth for the year.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What to Expect From BRT Apartments (BRT) This Earnings Season?
BRT Apartments Corp. (BRT - Free Report) is slated to report third-quarter 2022 earnings on Nov 7 after market close. The company’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this residential real estate investment trust’s (REIT) adjusted FFO per share missed the Zacks Consensus Estimate by 5.13%.
Over the last four quarters, BRT Apartments surpassed the Zacks Consensus Estimate on three occasions and missed the same on the other, the average beat being 9.29%. The graph below depicts the surprise history of the company:
BRT Apartments Corp. Price and EPS Surprise
BRT Apartments Corp. price-eps-surprise | BRT Apartments Corp. Quote
Let’s see how things have shaped up before this announcement.
Factors to Consider
For the U.S. apartment market, demand remained healthy initially in the third quarter, though normal seasonality returned in September.
BRT Apartments is the owner and operator of Class B and better multi-family assets,
mainly in well-situated Sun Belt locations. The company is expected to have benefited from healthy market fundamentals.
Particularly, in the third quarter, BRT Apartments’ properties in growth markets are likely to have benefited from population growth and job in-migration. Also, a shortage in quality housing is aiding the demand for rental units in its markets.
Further, BRT Apartments is likely to have progressed in its efforts to grow and improve its portfolio through targeted dispositions and the acquisition of its partners’ remaining interests in several joint ventures.
During the said period, BRT announced that the unconsolidated joint venture in which it holds an 80% equity stake accomplished the sale of a 204-unit multifamily property — Waters’ Edge — in Columbia, SC, for $32.4 million. The company estimated to recognize an $11.4 million gain on this.
The Zacks Consensus Estimate of $21.9 million for third-quarter revenues suggests a significant increase from $7.7 million reported in the year-ago period.
Before the third-quarter earnings release, the company’s activities were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 42 cents in the past month. However, the figure suggests year-over-year growth of 35.5%.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for BRT Apartments this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
BRT Apartments currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Performance of Notable Residential REITs
Equity Residential’s (EQR - Free Report) third-quarter 2022 normalized FFO per share of 92 cents outpaced the Zacks Consensus Estimate of 91 cents. Rental income of $695.1 million also exceeded the consensus mark of $694.1 million. On a year-over-year basis, the FFO per share grew 19.5% from 77 cents, while the rental income increased 11.5%.
Equity Residential’s results reflected healthy demand during the primary leasing season. This residential REIT benefited from the favorable real estate tax and payroll expenses. However, EQR narrowed its full-year guidance for normalized FFO per share.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported a third-quarter 2022 core FFO per share of $2.19, surpassing the Zacks Consensus Estimate of $2.09. The reported number improved by 23% year over year.
Mid-America Apartment Communities’ quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. MAA increased its outlook for core FFO growth for the year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.