U.S. REITs: Breakfast @ Barclays Capital: Darcy Stacom
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Price: $63.83 +4.06%
Rating Summary:
17 Buy, 17 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
17 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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U.S. REITs: Breakfast @ Barclays Capital: Darcy Stacom
Barclays analyst said, "Yesterday, we hosted Darcy Stacom of CB Richard Ellis at our first Breakfast @ Barclays Capital event of 2011. Ms. Stacom is a Vice Chairman and head of the Investment Properties group for CBG's New York office. In her 30 years in the real estate business, she has brokered over $50 billion in sales, financing, joint venture, leasehold and development transactions, winning numerous awards, including being named CBG's #1 Investment Professional globally twice in the past four years. Given her perspective, we believe Ms. Stacom is in an excellent position to provide an in-depth view of the New York office market from both a leasing and investment sales perspective. In this note, we provide a recap of her presentation."
"REIT Investment Implications. We believe that potential rent spikes in Midtown may not be fully priced into relevant REIT shares. Of the three office REITs we cover with Midtown exposure, we would highlight Boston Properties (NYSE: BXP), which we rate Overweight. Our discounted cash flow model values the shares at $106.25, and our 12-month price target is $101 (weights the DCF 70%, our NAV of $78.55 10% and our $94.55 sentiment/regression projection 20%). A strong Midtown recovery is also clearly a positive for SL Green (NYSE: SLG) (Equal Weight), Vornado (NYSE: VNO) (Overweight) and Brookfield (NYSE: BPO) (Equal Weight). Perhaps more out-of-consensus, we tend to agree with Darcy that the Downtown supply concerns may be somewhat overblown. This bodes well for BPO, which faces significant Downtown expirations in 2013. In addition to the potential demand drivers highlighted by Darcy, we think Bank of America/Merrill Lynch will likely consider keeping its space at World Financial Center, given full capacity at its Bryant Park asset and a high rent spread between Midtown and their current space. Finally, we believe CB Richard Ellis (NYSE: CBG) and Jones Lang LaSalle (NYSE: JLL) (both rated Overweight) are well-positioned to take advantage of the recovery in the leasing and investment sales markets, not just in New York, but globally."
Barclays analyst said, "Yesterday, we hosted Darcy Stacom of CB Richard Ellis at our first Breakfast @ Barclays Capital event of 2011. Ms. Stacom is a Vice Chairman and head of the Investment Properties group for CBG's New York office. In her 30 years in the real estate business, she has brokered over $50 billion in sales, financing, joint venture, leasehold and development transactions, winning numerous awards, including being named CBG's #1 Investment Professional globally twice in the past four years. Given her perspective, we believe Ms. Stacom is in an excellent position to provide an in-depth view of the New York office market from both a leasing and investment sales perspective. In this note, we provide a recap of her presentation."
"REIT Investment Implications. We believe that potential rent spikes in Midtown may not be fully priced into relevant REIT shares. Of the three office REITs we cover with Midtown exposure, we would highlight Boston Properties (NYSE: BXP), which we rate Overweight. Our discounted cash flow model values the shares at $106.25, and our 12-month price target is $101 (weights the DCF 70%, our NAV of $78.55 10% and our $94.55 sentiment/regression projection 20%). A strong Midtown recovery is also clearly a positive for SL Green (NYSE: SLG) (Equal Weight), Vornado (NYSE: VNO) (Overweight) and Brookfield (NYSE: BPO) (Equal Weight). Perhaps more out-of-consensus, we tend to agree with Darcy that the Downtown supply concerns may be somewhat overblown. This bodes well for BPO, which faces significant Downtown expirations in 2013. In addition to the potential demand drivers highlighted by Darcy, we think Bank of America/Merrill Lynch will likely consider keeping its space at World Financial Center, given full capacity at its Bryant Park asset and a high rent spread between Midtown and their current space. Finally, we believe CB Richard Ellis (NYSE: CBG) and Jones Lang LaSalle (NYSE: JLL) (both rated Overweight) are well-positioned to take advantage of the recovery in the leasing and investment sales markets, not just in New York, but globally."
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