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REIT Scorecard: What Do The Numbers Say?

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If you’re looking to hedge your portfolio across various assets, real estate is one space that you can bank on. Despite the mortgage troubles most people fret over, exposure to real estate can promise solid returns over time. Some investors also rely on REITs instead of directly entering the property market.

Related: Here’s Why You Should Add Commercial Real Estate To Your Portfolio (And Why It’s Easier Than You Think)

This report from TheStreet had outlined the best REIT stocks for 2018. Let’s take a look at how they’ve fared this year.

Store Capital Corp

The first REIT in the list is Store Capital Corp, climbing  over 13% this year and is currently trading at $28.78. This stock has risen almost 16% over the last 12 months. This REIT has a market cap of $5.92 billion and an enterprise value of $8.14 billion.

Store Capital has managed to beat average analyst earnings estimates in three of the last four quarters that would have driven the REIT’s stock higher. Revenue for Store Capital is estimated to grow at 19.3% year-over-year to $510.4 million in 2018 and 13.6% to $579.81 million in 2019. Better yet, earnings are expected to rise 4.40% in 2018 and be flat in 2019.

PS Business Park

Shares of PS Business Parks has risen just over 6% this year and is currently trading at $130.77. However, the PSB stock has been flat over the last 12 months. This REIT has a market cap of $3.57 billion and an enterprise value of $4.70 billion. PSB has managed to beat average analyst earnings estimates in three quarters prior to Q2 2018 where the company announced earnings 23% below analyst estimates. Revenue for PSB is estimated to grow at 2.6% year-over-year to $412.5 million in 2018 and 2.2% year-over-year to $421.5 million in 2019. Earnings are however expected to fall 46.4% in 2018 and rise 13.8% in 2019.

Liberty Property Trust 

Shares of Liberty Property Trust has risen 3.3% this year and is currently trading at $44. However, the LPT stock has risen close to 7% over the last 12 months. This REIT has a market cap of $6.7 billion and an enterprise value of $9.1 billion. Similar to PSB, Liberty Property Trust has managed to beat average analyst earnings estimates in three quarters prior to Q2 2018 where the company announced earnings 64% below analyst estimates. Revenue for LPT is estimated to fall by 31.9% year-over-year to $490.42 million in 2018 and then rise 22.6% year-over-year to $601.45 million in 2019. Earnings are however expected to rise 2.1% in 2018 and fall 27.7% in 2019.

W P Carey 

Shares of W P Carey has declined close to 2% this year and is currently trading at $65.54. The WPC stock has fallen 2.3% over the last 12 months as well. This REIT has a huge market cap – nearly $7 billion and a massive enterprise value of $11.7 billion. WPC has managed to beat average analyst earnings estimates in each of the last four quarters. However, the company is struggling to expand its bottom line despite robust growth in sales next year. Revenue for WPC is estimated to fall 12.2% year-over-year to $771.35 million in 2018 and then rise 26.2% to $973.77 million in 2019. Earnings are however expected to rise 1.2% in 2018 and fall 5.1% in 2019.

One Liberty Properties

Shares of One Liberty Properties has risen approximately 13% this year and is currently trading at $29.26. The OLP stock has risen 23.5% over the last 12 months as well. This REIT has a market cap and an enterprise value of $553 million. OLP is one of the smallest REIT’s in terms of sales with regards to The Street’s REIT list. The firm has managed to beat average analyst earnings estimates in two of the last four quarters.

Armada Hoffler Properties

Shares of Armada Hoffler Properties has risen 5% and is currently trading at $15.85. The stock has risen 21.5% in the last 12 months. AHH beat analyst earnings estimate by 22% in Q1 2018 and 112% in Q3 2017. Similar to other REIT’s in this list AHH will experience revenue growth over the next two years but this will not translate into earnings growth. AHH’s revenue is estimated to rise 7.2% to $116.5 million in 2018 and 15.5% to $134.57 million in 2019. Comparatively, the company’s earnings are expected to be flat this year and decline 24% in 2019.

Washington REIT

Shares of Washington REIT has risen 3% and is currently trading at $31.37. The stock has declined 4% in the last 12 months. WRE has reported earnings below analyst estimates in two of the last four quarters which may have contributed to its share price decline in the past year. WRE’s revenue is estimated to rise 4.8% to $340.8 million in 2018 and 1.8% to $347 million in 2019.

Lexington Realty Trust

Shares of Lexington Realty Trust has declined over 2% and is currently trading at $9.05. The stock has declined 7% in the last 12 months. LXP has also struggled to meet analyst earnings estimates in three of the last four quarters. It reported earnings per share 116.7% below estimates in Q2 2018, 216% below estimates in Q1 2018 and 57% below estimates in Q3 2017. LXP’s revenue is estimated to rise 3.3% to $404.53 million in 2018 and then fall 5.5% to $382.3 million in 2019. Comparatively, the company’s earnings are expected to fall by 77.4% this year and rise significantly by 157% in 2019.

Empire State Realty

Shares of Empire State Realty has declined almost 16% and is currently trading at $17.29. The stock has declined 15% in the last 12 months. ESRT has failed to meet analyst earnings estimates in the last three consecutive quarters. ESRT’s revenue is estimated to rise 5.1% to $483.9 million in 2018 and then increase 1.8% to $492.9 million in 2019. Comparatively, the company’s earnings are expected to fall by 33% this year and rise by 20% in 2019.

American Assets Trust

Shares of American Assets Trust has risen almost 4% and is currently trading at $39.05. The stock has declined 2% in the last 12 months. Though AAT has managed to beat earnings estimates in the last four quarters, the stock price of this REIT has generated negative returns over the last year or so. AAT’s revenue is estimated to rise 5.3% to $331.8 million in 2018 and then increase 1.7% to $337.5 million in 2019.

Real Estate Investing

Here’s Why You Need To Use A Mortgage Broker When Buying Your Home

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Would you like to build or buy a home today?

There are many factors that you should consider. You will note that earlier on, most people used to visit banks in order to get loans that could enable them build or buy a house of their dreams. This used to work well for some people.

However, others used to have a difficult time securing loans. This is because some banks used to charge higher interest rates. This normally discouraged these people. This is the reason why you should consider using a mortgage broker.

What are the advantages of working with this broker? These include:

1. Enable you to Save Money

Would you like to save more money when you are buying a home? You should consider using the services of a mortgage broker. You will realize that this broker can help you compare several home loans from dozens of lenders.

You will not be dealing with one lender only. The good news is that you will be dealing with different lenders. This can help you get a good deal in terms of interest rates and fees.

This can play a major role in helping you save more money.

2. Saves Time

The process of getting a home loan can be very tasking. You have to visit different lenders so that you can compare their interest rates. Sometimes, you might not have all this time. You might end up choosing a lender who charges you more interest.

If you want to save more time, you should consider using the services of this professional. The good news is that this professional will do most of the work for you.

This will include the following activities; liaising with conveyances, real-estate agents, lenders and even settlement agencies.

3. More Peace of Mind

Securing a good mortgage loan can be very hectic. Most people normally struggle to secure these loans successfully. This can make you not to enjoy some peace of mind.

However, the good news is that this professional can help you secure a good loan successfully. You can trust that he will go for the best option out there. This can help you have some peace of mind as you will be doing other activities either at home or at the workplace.

You will realize that this professional will stay in contact with you to check if you have the right mortgage from the right lender.

4. Little Chances of Refusal

There are people who normally apply for a mortgage loan and are denied this loan. This could be due to their credit score, among other factors. This can be detrimental. You are likely to get frustrated.

Some lenders are very strict. However, there are some who are lenient. This is because different lenders normally have different credit policies and restrictions regarding who they will lend to. This is the reason why you should choose this broker to help you out.

This broker will considerably reduce the chances of refusal because he has vast knowledge on lender policies. He will help you settle for a good deal. Thus, an increase the chances of you building or buying your dream home.

5. Professional Advice

You can trust that this professional will help you understand all the mortgage-related information. He or she will help you understand the numerous types of mortgage available out there.

You will note that each of the mortgage types normally has its own parameter and technicalities. This can actually be very confusing to the common man. This mortgage broker will help you sort out all this information and also explain the different types of deals available in the market.

The good news is that this expert will help you narrow down the information to finally choose the mortgage that suits your needs. Sometimes, it is difficult to understand all the legalities that are related to mortgages.

However, this professional will give you professional advice in this field. This can help you avoid certain pitfalls since you will be fully aware of everything that you must know.

6. More Convenient

We all like convenience. The good news is that the professional will work hand-in-hand with home loans and lenders every day of the week. You can trust that this professional will assure you that the entire process will go smoothly and successfully.

7. He Represents you

The good news is that the mortgage broker normally represents you. You can trust that he will work on your behalf and not on behalf of a particular bank.

He will work with different lenders to ensure that you get the best deal out there.

8. You do not have to Pay this Broker Directly

You will realize that you do not have to pay this broker directly for their services. In most cases, they are normally paid by the financial institutions that arranged your mortgage. This makes it ideal to work with this broker.

The mortgage broker normally works for you. He is independent and can help you navigate the often confusing world of mortgages. He or she will work on getting the best deal for you.

This is because dealing directly with the companies can be hard. Some of them might not have the best interest in mind. This is the reason why you should consider using the services of a mortgage broker.

In addition, he or she will help you save more time in the long run. You can carry on with your usual activities either at home or at work as the broker works for you.

You will even manage to save more money. Consider hiring the services of this broker, and you will not regret. The services of this broker are truly incredible.

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Real Estate Investing

5 Strategies To Close Your First Real Estate Deal

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