DA Davidson Upgrades Investors Real Estate Trust (IRET) to Buy as Occupancy Increases
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Price: $21.29 --0%
Rating Summary:
3 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson upgraded shares of Investors Real Estate Trust (NASDAQ: IRET) to a Buy rating from its previous rating of Neutral. The firm is reaffirming its price target of $8.00.
The company released its Q2 results with FFO coming in slightly below expectations. The firm notes while the multi-family residential segment continues to rebound, the commercial office segment remained weak. Lost rent due to flooding damage in Minot, ND also contributed to lower funds.
Revenue of $60.7 million for the quarter represents a 3 percent increase year over year and is largely due to an increase in occupancy.
An analyst at DA Davidson comments, "Although we continue to await a material improvement in overall commercial lease rates, management noted that it is starting to see limited leasing activity by new business startups as well as small non-public businesses, something that has been absent in the commercial leasing market for the past four years. Management continues to highlight its opportunities to capitalize on strong economic growth in western North Dakota
stemming from the Bakken oil boom."
To reflect improving occupancy rates, the firm increased its FY12 and FY13 FFO estimates from $0.61 and $0.64 to $0.62 and $0.65.
For an analyst ratings summary and ratings history on Investors Real Estate Trust click here. For more ratings news on Investors Real Estate Trust click here.
Shares of Investors Real Estate Trust closed at $6.98 yesterday.
The company released its Q2 results with FFO coming in slightly below expectations. The firm notes while the multi-family residential segment continues to rebound, the commercial office segment remained weak. Lost rent due to flooding damage in Minot, ND also contributed to lower funds.
Revenue of $60.7 million for the quarter represents a 3 percent increase year over year and is largely due to an increase in occupancy.
An analyst at DA Davidson comments, "Although we continue to await a material improvement in overall commercial lease rates, management noted that it is starting to see limited leasing activity by new business startups as well as small non-public businesses, something that has been absent in the commercial leasing market for the past four years. Management continues to highlight its opportunities to capitalize on strong economic growth in western North Dakota
stemming from the Bakken oil boom."
To reflect improving occupancy rates, the firm increased its FY12 and FY13 FFO estimates from $0.61 and $0.64 to $0.62 and $0.65.
For an analyst ratings summary and ratings history on Investors Real Estate Trust click here. For more ratings news on Investors Real Estate Trust click here.
Shares of Investors Real Estate Trust closed at $6.98 yesterday.
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