North America Real Estate - Industry News
| REIT Replay: The earnings saga continues |  |
November 03, 2009 5:47 PM ET
By John Yellig
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REITs closed on a high note Tuesday, Nov. 3, while the broader markets ended the day mixed. In real estate news The earnings onslaught continued unabated. Vornado Realty Trust on Nov. 3 reported third-quarter FFO attributable to common shareholders plus assumed conversions of $1.25 per share, compared to 97 cents per share in the prior-year period. Adjusting for certain items that affect comparability, FFO was $1.18 per share, compared to $1.17 per share in the year-ago period. Shares of Vornado rose 2.52% to close at $61.76 on Nov. 3. HCP Inc. on Nov. 3 reported third-quarter FFO applicable to common shares of 11 cents per share, compared to 70 cents per share in the prior-year period. FFO applicable to common shares, before giving effect to impairments and a litigation provision, was 52 cents per share, compared to FFO applicable to common shares, before giving effect to impairments and merger-related charges, of 72 cents per share in the year-ago period. Additionally, HCP said it expects FFO applicable to common shares for the 2009 full year to range between $1.65 and $1.71 per share, compared to previous guidance issued Aug. 5 that called for FFO per common share in a range of $2.08 to $2.14. The company expects FFO applicable to common shares, before giving effect to impairments and the litigation provision, to range between $2.10 and $2.16 per share, the same as called for in its previous guidance. HCP shares slipped 0.97%, ending at $29.68 on Nov. 3. Brookdale Senior Living Inc. reported after market close Nov. 2 a net loss of 18 cents per share, compared to a loss of 36 cents per share in the year-ago period. In a Nov. 3 research note, Morgan Keegan & Co. analysts Robert Mains and Chad Vanacore said the key driver behind the in-line results was increased occupancy, particularly in the company's assisted- and independent-living segments. "The strong increase in assisted living occupancy supports our view that the assisted living sector is rebounding from a bottom hit in the first half of the year," the analysts said. "The improvement in independent living occupancy is a pleasant surprise, as we view this business as more economically sensitive and less need-driven than assisted living." Brookdale shares surged 8.09% to close at $18.58. St. Joe Co. on Nov. 3 reported a third-quarter net loss of 16 cents per share, compared to a net loss of 21 cents per share in the year-ago period. Shares of St. Joe lost 0.41%, closing at $24.02. Senior Housing Properties Trust on Nov. 3 reported third-quarter FFO of $49.4 million, or 41 cents per share, compared to $47.0 million, or 41 cents per share, in the prior-year period. Shares of Senior Housing Properties edged up 0.36% on Nov. 3 to close at $19.35. Among other companies reporting earnings Nov. 2 or Nov. 3, Gaylord Entertainment Co. jumped 7.95% to close at $16.03, Post Properties Inc. lost 0.24% to close at $16.46, Extra Space Storage Inc. gained 6.60%, ending at $10.18, Maguire Properties Inc. ballooned 17.44% to $2.02, and BRE Properties Inc. added 4.19%, closing at $29.07. In other company news, PLD International Finance LLC, a wholly owned indirect subsidiary of ProLogis, said Nov. 3 that it commenced a cash tender offer for any and all of its outstanding 4.375% notes due April 2011 and guaranteed by ProLogis. The company said there is about €252.4 million aggregate principal amount of the notes outstanding. The amount payable for each €50,000 in principal amount of notes validly tendered and accepted by PLD International will be €50,500, plus accrued and unpaid interest on the notes from the last interest payment date to but excluding the date of payment of the purchase price on those notes that are accepted for purchase by the issuer pursuant to the offer. Shares of ProLogis rose 2.26% to close at $11.76 on Nov. 3. American Realty Investors Inc., Income Opportunity Realty Investors Inc. and Transcontinental Realty Investors Inc. said in separate Forms 8-K filed Nov. 2 that they appointed Gene Bertcher to the additional position of CFO of the companies, effective immediately. Bertcher is an executive vice president and chief accounting officer of the companies. American Realty shares slipped 0.62% to close at $9.55, while Transcontinental shares rose 6.60% to close at $10.98. Market movement The MSCI US REIT Index (RMZ) rose 1.55% to close at 553.59, and the SNL US REIT Equity Index gained 1.50%, ending at 145.76. The Dow Jones Industrial Average slid 0.18% to close at 9,771.91, and the S&P 500 closed up 0.24% at 1,045.41. The SNL U.S. Homebuilders Index added 2.36%, closing at 237.56. The SNL U.S. Gaming Index surged 5.20% to close at 151.18. The yield on the 10-year Treasury increased 0.051 percentage point to close at 3.47%. In macro news The International Council of Shopping Centers-Goldman Sachs chain store sales index for the week ended Oct. 31 rose 0.1% from the prior week, the ICSC said Nov. 3. On a year-over-year basis, the index rose 1.9% for the week. Meanwhile, the Johnson Redbook Retail Sales Index rose 0.9% year over year for the week ended Oct. 31, Reuters reported Nov. 3. Seasonally adjusted U.S. chain store sales rose 1.9% in October, compared to September, Reuters said. The U.S. Census Bureau reported Nov. 3 that new orders for manufactured goods rose 0.9% in September to $356.1 billion. Orders rose in five of the last six months, according to the Census Bureau. Now featured on SNLi The New York Minute: Italian group eyeing Woolworth Building: A group with a roughly 51% stake in the Flatiron Building is in discussions to acquire a stake in another Manhattan icon. UPDATE: Senior Housing Properties CEO talks acquisitions: The company is focused on medical office building and senior-housing assets. UPDATE: HCP CEO foresees spike in health care deal volume in 2010: The executive said during the company's earnings call that he expects the volume of deal activity to balloon next year as credit markets thaw and health care reform is enacted. | 
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