FBR Capital on Real Estate: Multifamily/Self Storage REITs: Updating Short-Lease Applied Premiums/(Discounts)
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Price: $107.59 -0.31%
Rating Summary:
16 Buy, 17 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
16 Buy, 17 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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FBR Capital on Real Estate: Multifamily/Self Storage REITs: Updating Short-Lease Applied Premiums/(Discounts); Adjusting Targets
FBR analyst says, "We are adjusting the price targets for all multifamily and self storage stocks under coverage due to an update of our net asset value (NAV) applied premiums/(discounts) model. The changes are predicated upon updated forward full-year growth rates for all REITs (2011–2013) and a slight change in the weighting of our model input variables. There are a few issues to keep in mind, including (1) these values should/do not change with frequency due to the slow-moving nature of core growth rates, (2) the new values correlate with some of the findings in our recently published MSA Monitor update, and (3) short-lease stocks continue to command strong earnings-growthrelated premiums in the context of our 840 RMZ target (established February 23, 2011)."
Increasing Premiums. Based on our analysis, the following companies now warrant modestly higher applied premiums: Camden Properties Trust (NYSE: CPT)(Underperform), Colonial Properties Trust (NYSE: CLP)(Market Perform), Mid-America Apartment Communities (NYSE: MAA)(Market Perform), Extra Space Storage (NYSE: EXR)(Market Perform), U-Store-It-Trust (NYSE: YSI)(Outperform), and Sovran Self Storage (NYSE: SSS)(Outperform). Overall, multifamily REIT applied premiums rose 10 bps, to 20.0% from 19.9%. Overall, self storage REIT applied premiums rose 260 bps, to 17.4% from 14.8%."
"Decreasing Premiums. Based on our analysis, the following companies now warrant modestly lower applied premiums: AvalonBay Communities (NYSE: AVB)(Outperform), Equity Residential (NYSE: EQR)(Underperform), Essex Property Trust (NYSE: ESS)(Outperform) (Lowers PT to $134), UDR, Inc. (NYSE: UDR)(Market Perform), Home Properties (NYSE: HME)(Outperform), Associated Estates Realty Corp. (NYSE AEC)(Outperform), Equity Lifestyle Properties (NYSE: ELS)(Outperform), and Public Storage (NYSE: PSA)(Underperform)."
FBR analyst says, "We are adjusting the price targets for all multifamily and self storage stocks under coverage due to an update of our net asset value (NAV) applied premiums/(discounts) model. The changes are predicated upon updated forward full-year growth rates for all REITs (2011–2013) and a slight change in the weighting of our model input variables. There are a few issues to keep in mind, including (1) these values should/do not change with frequency due to the slow-moving nature of core growth rates, (2) the new values correlate with some of the findings in our recently published MSA Monitor update, and (3) short-lease stocks continue to command strong earnings-growthrelated premiums in the context of our 840 RMZ target (established February 23, 2011)."
Increasing Premiums. Based on our analysis, the following companies now warrant modestly higher applied premiums: Camden Properties Trust (NYSE: CPT)(Underperform), Colonial Properties Trust (NYSE: CLP)(Market Perform), Mid-America Apartment Communities (NYSE: MAA)(Market Perform), Extra Space Storage (NYSE: EXR)(Market Perform), U-Store-It-Trust (NYSE: YSI)(Outperform), and Sovran Self Storage (NYSE: SSS)(Outperform). Overall, multifamily REIT applied premiums rose 10 bps, to 20.0% from 19.9%. Overall, self storage REIT applied premiums rose 260 bps, to 17.4% from 14.8%."
"Decreasing Premiums. Based on our analysis, the following companies now warrant modestly lower applied premiums: AvalonBay Communities (NYSE: AVB)(Outperform), Equity Residential (NYSE: EQR)(Underperform), Essex Property Trust (NYSE: ESS)(Outperform) (Lowers PT to $134), UDR, Inc. (NYSE: UDR)(Market Perform), Home Properties (NYSE: HME)(Outperform), Associated Estates Realty Corp. (NYSE AEC)(Outperform), Equity Lifestyle Properties (NYSE: ELS)(Outperform), and Public Storage (NYSE: PSA)(Underperform)."
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