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Should You Retain Duke Realty (DRE) in Your Portfolio Now?
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We updated our research report on Duke Realty Corp. on Mar 28.
The Indianapolis, IN-based Duke Realty is a real estate investment trust (REIT) in the U.S., engaged in the ownership and operation of industrial, medical office and other non-core assets in 21 key U.S. metropolitan areas.
In January, Duke Realty came up with better-than-expected fourth-quarter 2016 core funds from operations (FFO) per share. The company reported fourth-quarter 2016 core FFO per share of 31 cents, which came a penny above the Zacks Consensus Estimate and 2 cents ahead of the prior-year quarter tally.
Results reflected solid same-property net operating income (NOI) growth and in-service occupancy. Specifically, the quarter witnessed in-service occupancy reaching record level of 97.5%.
Duke Realty has been making great strides in expanding its industrial real estate business. The company’s strategically located portfolio of industrial assets is likely to assist in leveraging on the growing demand for premium logistic facilities amid limited supply. Moreover, considering the dispositions of suburban office property concluded in fourth-quarter 2016, the company has successfully exited this asset category.
The company also remains committed toward strengthening its balance sheet and has achieved improvement in its leverage metrics. With a flexible balance sheet position, the company is well positioned to capitalize on growth opportunities and address debt maturities in the future.
Nevertheless, near-term dilutive effects of continued divestiture and hike in the rate of interest pose concerns for Duke Realty.
Shares of Duke Realty outperformed the Zacks categorized REIT and Equity Trust – Other industry in the past one month. Over this time frame, Regency’s shares inched up 0.5%, while the industry incurred a loss of 2.7%. However, its estimates for funds from operations (FFO) per share for first quarter and full-year 2017 remained unchanged over the past 30 days at 29 cents and $1.24, respectively.
Currently, Duke Realty carries a Zacks Rank #3 (Hold).
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by nearly 0.6% to $1.73, over the past 60 days.
CoreCivic has a long-term growth rate of 6.0%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Should You Retain Duke Realty (DRE) in Your Portfolio Now?
We updated our research report on Duke Realty Corp. on Mar 28.
The Indianapolis, IN-based Duke Realty is a real estate investment trust (REIT) in the U.S., engaged in the ownership and operation of industrial, medical office and other non-core assets in 21 key U.S. metropolitan areas.
In January, Duke Realty came up with better-than-expected fourth-quarter 2016 core funds from operations (FFO) per share. The company reported fourth-quarter 2016 core FFO per share of 31 cents, which came a penny above the Zacks Consensus Estimate and 2 cents ahead of the prior-year quarter tally.
Results reflected solid same-property net operating income (NOI) growth and in-service occupancy. Specifically, the quarter witnessed in-service occupancy reaching record level of 97.5%.
Duke Realty has been making great strides in expanding its industrial real estate business. The company’s strategically located portfolio of industrial assets is likely to assist in leveraging on the growing demand for premium logistic facilities amid limited supply. Moreover, considering the dispositions of suburban office property concluded in fourth-quarter 2016, the company has successfully exited this asset category.
The company also remains committed toward strengthening its balance sheet and has achieved improvement in its leverage metrics. With a flexible balance sheet position, the company is well positioned to capitalize on growth opportunities and address debt maturities in the future.
Nevertheless, near-term dilutive effects of continued divestiture and hike in the rate of interest pose concerns for Duke Realty.
Shares of Duke Realty outperformed the Zacks categorized REIT and Equity Trust – Other industry in the past one month. Over this time frame, Regency’s shares inched up 0.5%, while the industry incurred a loss of 2.7%. However, its estimates for funds from operations (FFO) per share for first quarter and full-year 2017 remained unchanged over the past 30 days at 29 cents and $1.24, respectively.
Currently, Duke Realty carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the REIT space include CoreSite Realty Corporation (COR - Free Report) , Piedmont Office Realty Trust, Inc. (PDM - Free Report) and CoreCivic, Inc. . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by nearly 0.6% to $1.73, over the past 60 days.
CoreCivic has a long-term growth rate of 6.0%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>