November and December had been two months of great share value acceleration for many of the actual property funding belief (REIT) sector. Many REITs rose 30% or extra after bottoming out on the finish of October.
However usually after such exercise, analysts start to sharpen their pencils and take a extra stringent take a look at a number of the points which have made massive value leaps. This yr is already off to a tough begin for a number of REITs that had share value appreciation at yr’s finish. A number of REITs had not too long ago introduced constructive information, however that did not maintain the analysts from chopping them down a ranking or two.
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Check out greater than a half dozen analysts who downgraded REITs to start the brand new yr on a cautious observe.
Stag Industrial Inc. (NYSE:STAG) is a Boston-based industrial REIT that owns and operates each single and multitenant properties in 41 states. Most of its 568 properties are warehouses and distribution buildings within the Midwest and on the East Coast.
In December, Stag introduced it had signed two lease renewals of 646,200 sq. ft in Chattanooga, Tennessee, and accomplished three new rooftop group photo voltaic tasks in New Jersey.
Regardless of these constructive occasions, on Jan. 5, Baird analyst David Rodgers downgraded Stag Industrial from Outperform to Impartial whereas elevating the value goal from $38 to $41.
Stag Industrial had a current insider sale. On Dec. 22, Chief Accounting Officer Jaclyn Paul offered 12,900 shares of firm inventory for $497,553.
Rexford Industrial Realty Inc. (NYSE:REXR) is a Los Angeles-based industrial REIT that owns or manages 371 properties with 45 million sq. ft in Southern California’s high-growth areas. Its market capitalization is $12.04 billion.
On Jan. 4, Rexford introduced the disposition of 1 industrial property for $11.3 million and the acquisition of two different industrial properties for an mixture of $69.5 million. The acquisitions had been funded from firm money, proceeds from ahead fairness settlements and a 1031 tax-deferred trade.
On Jan. 5, Baird analyst Rodgers downgraded Rexford Industrial from Outperform to Impartial, whereas elevating the value goal from $53 to $61.
Medical Properties Belief Inc. (NYSE:MPW) is a Birmingham, Alabama–based mostly healthcare REIT that owns and operates 441 basic acute care and different properties throughout the U.S. and in 9 different nations, with areas in Europe and even Australia. It has a portfolio valued at $19 billion, of which about 64% are basic acute care hospitals, and about two-thirds of its properties are in the US.
On Jan. 4, Medical Properties offered an replace on Steward Well being Care System, its largest tenant. Medical Properties mentioned it is accelerating its efforts to get better uncollected rents from the fourth quarter of 2023 and excellent mortgage obligations from Steward. Medical Properties agreed to fund a brand new $60 million bridge mortgage to Steward, secured by preexisting collateral plus a brand new second lien on Steward’s managed-care enterprise.
Steward is also exploring the attainable sale or retenanting of sure hospital operations together with the divestiture of noncore operations. On the finish of 2023, Steward nonetheless owed roughly $50 million to Medical Properties Belief.
On Jan. 5, KeyBanc Capital Markets Inc. analyst Austin Wurschmidt downgraded Medical Properties Belief from Obese to Sector Weight.
Wall Road was fairly disturbed by this announcement and between the information and the downgrade, traders drove Medical Properties shares down greater than 30% in early morning buying and selling.
Physicians Realty Belief (NYSE:DOC) owns and operates a various group of 291 healthcare properties throughout 32 states. Nearly all of these are physician-leased medical workplace buildings. As of the third quarter, 94.6% of its workplaces had been leased.
On Oct. 30, Physicians Realty Belief introduced it has agreed to merge with Healthpeak Properties Inc. (NYSE:PEAK) in an all-stock merger of equals valued at roughly $21 billion. The merger is predicted to shut within the first half of 2024.
Analysts are divided. On Jan. 5, KeyBanc analyst Todd Thomas downgraded Physicians Realty Belief from Obese to Sector Weight. However a couple of days earlier, Compass Level Analysis & Buying and selling analyst Merrill Ross maintained a Purchase on Physicians Realty Belief, whereas reducing the value goal from $19 to $18.
Mid-America Condo Communities Inc. (NYSE:MAA) is a self-administered residential REIT that makes a speciality of buying and leasing condo complexes. It owns just below 102,000 items in 300 communities throughout 16 states and Washington, D.C. Most of Mid-America Condo Communities’ properties are within the Southeast, Southwest and Mid-Atlantic states.
Mid-America Condo Communities is a member of the S&P 500 and has been a public firm for 28 years. The Atlanta and Dallas areas comprise over 22% of its same-store internet working revenue.
On Dec. 12, Mid-America elevated its quarterly dividend by 5%, from $1.40 per share to $1.47 per share. The dividend is payable on Jan. 31 to shareholders of document on Jan.12.
On Dec. 13, Mid-America promoted Bradley Hill to president and chief funding officer. Hill beforehand served as govt vp and chief funding officer of Mid-America Condo.
Regardless of this current information, on Jan. 2, Jefferies analyst Linda Tsai downgraded Mid-America Condo from Purchase to Maintain and lowered the value goal from $140 to $136.
AvalonBay Communities Inc. (NYSE:AVB) is a residential REIT that acquires, develops and manages multifamily communities. As of the third quarter of 2023, AvalonBay Communities owned roughly 89,240 flats straight or not directly in 296 communities throughout 12 states and Washington, D.C.
On Dec. 4, AvalonBay introduced a public providing of $400 million senior unsecured notes at a 5.3% price due Dec. 7, 2033.
Analysts have been powerful on AvalonBay throughout the first week of 2024. On Jan. 5, KeyBanc analyst Wurschmidt downgraded AvalonBay Communities from Obese to Sector Weight. On Jan. 2, Wolfe Analysis analyst Andrew Rosivach downgraded AvalonBay from Outperform to Peer Carry out.
Quick curiosity on Avalon Bay has additionally been growing in current weeks and it now has 2.34 million shares offered brief.
SITE Facilities Corp. (NYSE:SITC) is a Beachwood, Ohio-based retail REIT with 106 wholly-owned procuring facilities, 65% of that are anchored by grocery shops or high-quality discounters in prosperous areas of the U.S. Its third-quarter lease price was 94.4%.
In October, SITE Facilities spun off 61 comfort sector properties right into a separate REIT referred to as Curbline Properties. The spinoff is predicted to take one full yr, and Curbline is predicted to start out with a internet money place and no debt. SITE Heart will nonetheless personal 83 properties after the merger.
On Dec. 13, SITE Facilities declared a particular dividend of $0.16 per share, payable on Jan. 12 to shareholders of document on Dec. 27, with an ex-dividend date on Dec. 26. The particular dividend is from the sale of about 15% of SITE Facilities asset base.
Though this was all constructive information, on Jan. 5, Wolfe Analysis analyst Rosivach additionally downgraded SITE Facilities from Outperform to Peer Carry out. SITE Facilities gained over 28% in November and December. However that is 2024 and the sharp pencils are out.
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