What Awaits REITs In Q2 Earnings? ACC, AVB, ADC, BRX
Zacks Investment Research | Jul 21, 2016 09:49PM ET
Monday marks the beginning of one of the busiest weeks this earnings season for the real estate investment trust (REIT) industry. Companies like American Campus Communities, Inc. (NYSE:ACC) , Avalonbay Communities, Inc. (NYSE:AVB) , Agree Realty Corp. (NYSE:ADC) and Brixmor Property Group, Inc. (NYSE:BRX) are slated to report their earnings on that day.
No doubt, the sentiments have so far been positive with the top-notch REITs like Prologis, Inc. (NYSE:PLD) and SL Green Realty Corp. (NYSE:SLG) coming up with better-than-expected performances. In fact, Prologis came up with a positive surprise of 1.69% in Q2 backed by an escalated warehouse demand. Its occupancy and customer retention remained elevated while leasing volumes, rent change on rollover and same store NOI also increased. SL Green, too, followed the trend, posting a positive surprise of 7.23% in the latest reported quarter. The solid performance by the office REIT was aided by a rise in combined same-store NOI.
But this does not guarantee a robust performance by rest of the REITs as well as they cater to different asset classes. Therefore, despite broadly benefiting from the low-rate environment for their high debt-dependence nature, individual market dynamics of the underlying asset category play a pivotal role in defining their performance.
While CBRE Group’s (NYSE:CBG) study of retail, industrial and office-market fundamentals in Q2 have revealed stability and strength and the early end-of-quarter apartment numbers from Zacks Investment Research
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