REIT Earnings Season on Deck: What to Look For (VNQ)
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Analysts at Imperial Capital provided a first quarter earnings preview for the REIT sector, which could be broadly represented through ETF Vanguard REIT Index ETF (NYSE: VNQ). Earnings season for the REIT's begins in earnest in the week commenting 4/22/13 and will be largely completed by mid-May.
Imperial Capital's analyst David Harris believes the majority of REITs will meet/beat earnings expectations and expects investors will focus on management comments about the current and near to medium-term outlook.
Harris expects few companies will make substantial changes to the FY13 earnings guidance and said macro issues like modest employment/income growth and low interest rates will likely continue to be featured. On tenant demand, the firm expects this to focus on geography, with Nothern California and energy-focused Texas likely positive and cautionary tones on New York and Washington DC. Given the record pace of capital raises, investors will likely be seeking comments on further plans for capital, in particular for updates on At-The-Market (ATM) equity issuance activity, which the apartment companies in particular have enthusiastically embraced. Lastly, investors will be looking for performance on non-U.S. investments given the struggles in Europe and FX impact. This however remains only meaningful to a handful of U.S. REITs.
Some of the firm's top-rated REITs include Aimco (NYSE: AIV), Camden Property (NYSE: CPT), Essex (NYSE: ESS), Equity Lifestyle (NYSE: ELS) and Vornado (NYSE: VNO).
Imperial Capital's analyst David Harris believes the majority of REITs will meet/beat earnings expectations and expects investors will focus on management comments about the current and near to medium-term outlook.
Harris expects few companies will make substantial changes to the FY13 earnings guidance and said macro issues like modest employment/income growth and low interest rates will likely continue to be featured. On tenant demand, the firm expects this to focus on geography, with Nothern California and energy-focused Texas likely positive and cautionary tones on New York and Washington DC. Given the record pace of capital raises, investors will likely be seeking comments on further plans for capital, in particular for updates on At-The-Market (ATM) equity issuance activity, which the apartment companies in particular have enthusiastically embraced. Lastly, investors will be looking for performance on non-U.S. investments given the struggles in Europe and FX impact. This however remains only meaningful to a handful of U.S. REITs.
Some of the firm's top-rated REITs include Aimco (NYSE: AIV), Camden Property (NYSE: CPT), Essex (NYSE: ESS), Equity Lifestyle (NYSE: ELS) and Vornado (NYSE: VNO).
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