Barclays on U.S. REITs: 2Q11 Earnings Preview/Valuation Update
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Price: $140.44 +0.05%
Rating Summary:
13 Buy, 14 Hold, 2 Sell
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
13 Buy, 14 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays on U.S. REITs: 2Q11 Earnings Preview/Valuation Update
"What to Watch For: REITs in our coverage universe begin reporting 2Q11 results next Tuesday (7/26) with Simon Property (NYSE: SPG), Kimco (NYSE: KIM), and Jones Lang LaSalle (NYSE: JLL); earnings season lasts through early August. On average, we expect reported 2Q FFOps for our coverage universe to increase 8.1% YOY but operating FFO (which excludes non-recurring items) to increase 7.0%. For FY 2011 and 2012, we expect FFOps for our coverage universe to increase 19.1% and 12.4%, respectively; on an operating basis, we project 8.0% and 12.9% increases."
"Key Issue: REIT stocks appear to us to be fully priced. We expect solid quarterly results and improving fundamental trends, but wonder if it will be enough to support current levels. In light of continued macroeconomic concerns, management body language may be cautious."
"Sector Focus: Going into 2Q11 earnings, we expect to see growing differentiation between sectors seeing continued improvement, such as apartments and industrial, versus those which are still lagging, such as suburban office and shopping centers."
Other stocks noted include Alexandria Real Estate Equities (NYSE: ARE) (OW-rated) Price target raised from $84 to $88.
Apartment Investment & Management Co. (NYSE: AIV) (UW-rated) PT raised from $23 to $25.
Boston Properties Inc. (NYSE: BXP) (OW-rated) PT raised from $111 to $119.
Brookfield Properties Corp. (NYSE: BPO) (EW-rated) PT raised from $19 to $22.
Camden Property Trust (NYSE: CPT) (OW-rated) PT increased from $65 to $71.
Jones Lang LaSalle (NYSE: JLL) (OW-rated) PT increased from $112 to $120.
SL Green Realty Corp. (NYSE: SLG) (EW-rated) PT increased from $75 to $83.
Vornado Realty Trust (NYSE: VNO) (OW-rated) PT increased from $94 to $99.
"What to Watch For: REITs in our coverage universe begin reporting 2Q11 results next Tuesday (7/26) with Simon Property (NYSE: SPG), Kimco (NYSE: KIM), and Jones Lang LaSalle (NYSE: JLL); earnings season lasts through early August. On average, we expect reported 2Q FFOps for our coverage universe to increase 8.1% YOY but operating FFO (which excludes non-recurring items) to increase 7.0%. For FY 2011 and 2012, we expect FFOps for our coverage universe to increase 19.1% and 12.4%, respectively; on an operating basis, we project 8.0% and 12.9% increases."
"Key Issue: REIT stocks appear to us to be fully priced. We expect solid quarterly results and improving fundamental trends, but wonder if it will be enough to support current levels. In light of continued macroeconomic concerns, management body language may be cautious."
"Sector Focus: Going into 2Q11 earnings, we expect to see growing differentiation between sectors seeing continued improvement, such as apartments and industrial, versus those which are still lagging, such as suburban office and shopping centers."
Other stocks noted include Alexandria Real Estate Equities (NYSE: ARE) (OW-rated) Price target raised from $84 to $88.
Apartment Investment & Management Co. (NYSE: AIV) (UW-rated) PT raised from $23 to $25.
Boston Properties Inc. (NYSE: BXP) (OW-rated) PT raised from $111 to $119.
Brookfield Properties Corp. (NYSE: BPO) (EW-rated) PT raised from $19 to $22.
Camden Property Trust (NYSE: CPT) (OW-rated) PT increased from $65 to $71.
Jones Lang LaSalle (NYSE: JLL) (OW-rated) PT increased from $112 to $120.
SL Green Realty Corp. (NYSE: SLG) (EW-rated) PT increased from $75 to $83.
Vornado Realty Trust (NYSE: VNO) (OW-rated) PT increased from $94 to $99.
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