Barclays on U.S. REITs: U.S. REIT Monitor - First Quarter 2011
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Price: $47.31 -0.23%
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. REITs: U.S. REIT Monitor - First Quarter 2011
Barclays analyst says, "REITs Posted Solid Gains in 1Q11 - REITs outperformed the broader markets during 1Q11, finishing up 7.5% vs. the S&P 500 which rose 5.9%; for most of the quarter REITs were essentially in line. We think that outperformance, primarily near quarter-end, was because REITs generally have little international exposure, and were therefore somewhat insulated from the impact of the Japan earthquake and unrest in the Middle East. This also appeared to hold true for other U.S. small and mid-cap companies, as the Russell 2000 gained 7.5% during the quarter."
"Investment Thesis - We remain Neutral on the REITs, based on valuation, and
expect the group to be range bound in the near term. On one hand we expect
organic growth and an increase in transaction activity; on the other hand, we believe the good news is already priced in. Therefore, we continue to view it as a stock-picking exercise rather than a sector-picking one. However, we are
constructive on the group longer-term as we believe REITs will garner greater
market share."
"Investment Picks - We remain positive on the brokers (CB Richard Ellis (NYSE: CBG), Jones Lang LaSalle (NYSE: JLL)) based on our expectations for a cyclical recovery in transaction volumes, as well as secular trends toward greater global and institutional ownership of commercial real estate. We also like the datacenters (Digital Realty Trust (NYSE: DLR), DuPont Fabros Technology (NYSE: DFT)) because they offer attractive relative valuation and better-than-average growth prospects. All four are rated Overweight."
Barclays analyst says, "REITs Posted Solid Gains in 1Q11 - REITs outperformed the broader markets during 1Q11, finishing up 7.5% vs. the S&P 500 which rose 5.9%; for most of the quarter REITs were essentially in line. We think that outperformance, primarily near quarter-end, was because REITs generally have little international exposure, and were therefore somewhat insulated from the impact of the Japan earthquake and unrest in the Middle East. This also appeared to hold true for other U.S. small and mid-cap companies, as the Russell 2000 gained 7.5% during the quarter."
"Investment Thesis - We remain Neutral on the REITs, based on valuation, and
expect the group to be range bound in the near term. On one hand we expect
organic growth and an increase in transaction activity; on the other hand, we believe the good news is already priced in. Therefore, we continue to view it as a stock-picking exercise rather than a sector-picking one. However, we are
constructive on the group longer-term as we believe REITs will garner greater
market share."
"Investment Picks - We remain positive on the brokers (CB Richard Ellis (NYSE: CBG), Jones Lang LaSalle (NYSE: JLL)) based on our expectations for a cyclical recovery in transaction volumes, as well as secular trends toward greater global and institutional ownership of commercial real estate. We also like the datacenters (Digital Realty Trust (NYSE: DLR), DuPont Fabros Technology (NYSE: DFT)) because they offer attractive relative valuation and better-than-average growth prospects. All four are rated Overweight."
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