REIT Replay: Falling back

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Related Companies Glimcher Realty Trust (GRT) Home Properties Inc. (HME) LTC Properties Inc. (LTC) National Retail Properties (NNN) Public Storage (PSA) Saul Centers Inc. (BFS) Starwood Hotels & Resorts (HOT) U-Store-It Trust (YSI)

Related Articles 11/6/2009 Chesapeake Lodging expects IPO price per share at $20 11/6/2009 National Retail Properties reports Q3 results 11/5/2009 Starwood prices debt issuance 11/5/2009 Public Storage reports higher Q3 FFO 11/5/2009 Blackstone Group, Glimcher to form joint venture 11/5/2009 Home Properties reports Q3 results 11/5/2009 LTC Properties reports Q3 results 11/5/2009 U-Store-It reports Q3 results 11/5/2009 Saul Centers sees Q3 FFO per share decline 7.4% 11/5/2009 Starwood to issue senior notes, use proceeds for tender offer 11/3/2009 Report: Glimcher to sell mall stakes to Blackstone 9/29/2009 Chesapeake Lodging files prospectus for IPO 8/6/2009 Home Properties Q2 FFO per share declines 5.4%

Related Research Reports HME: Finishing 3Q09 Earnings Season Strong with a Beat and a Raise KeyBanc Capital  11/5/2009 Core Results Ahead Despite Further Moderation; Higher Opening Expected RBC Capital Mkts  11/6/2009

Related Offerings 11/5/2009 $250M Senior Debt

REITs tumbled, while the broader markets inched up Friday, Nov. 6.

In real estate news

Chesapeake Lodging Trust disclosed in an amended Form S-11 filed Nov. 6 that it is offering 12.5 million shares of its common stock pursuant to its IPO and expects the price of its common shares to be $20.00 per share, giving the IPO a proposed maximum aggregate offering price of $250.0 million.

The company also granted the underwriters a 30-day option to purchase up to an additional 1,875,000 common shares at the public offering price, less the underwriting discount, to cover any overallotments. The company intends to apply to list its common shares on the NYSE under the symbol CHSP.

Blackstone Group LP and Glimcher Realty Trust announced after market close Nov. 5 a partnership for the acquisition and management of two regional malls, confirming earlier reports.

The assets for the joint venture will consist of two existing Glimcher mall properties: Lloyd Center in Portland, Ore., and WestShore Plaza in Tampa, Fla. The gross value for the combined transaction is approximately $320 million, including assumption of the approximately $218 million in mortgage loans in place on the properties.

The transaction is expected to generate net proceeds of approximately $60 million to Glimcher after considering debt assumption and typical closing costs. The proceeds will be used to reduce amounts outstanding under Glimcher's credit facility.

The joint venture will acquire the entities that own the two properties. An affiliate of Blackstone will acquire 60% of the joint venture, and Glimcher will retain the remaining 40% interest.

Shares of Glimcher surged 11.20% to close at $2.88 on Nov. 6.

Starwood Hotels & Resorts Worldwide Inc. said after market close Nov. 5 that it priced its underwritten public offering of $250 million of 7.150% senior notes due 2019.

The notes were offered to the public at a price of 97.559% of principal amount. Starwood expects to use the net proceeds to purchase up to $200 million aggregate principal amount of its outstanding 7.875% senior notes due 2012 and up to $100 million aggregate principal amount of its outstanding 6.250% senior notes due 2013 pursuant to its cash tender offer.

Starwood shares slid 0.51%, closing at $31.09 on Nov. 6.

In earnings news, Public Storage reported after market close Nov. 5 FFO allocable to common shares for the third quarter of $1.44 per share, compared to $1.08 per share in the year-ago period. FFO per common share prior to certain adjustments was $1.30 in the third quarter, down 5.1% from $1.37 a year ago.

In a Nov. 6 research note, RBC Capital Markets analyst Mike Salinsky said the company managed to beat both his estimate and the consensus despite operational results reflective of the challenging operating environment.

NOI came in better than anticipated as both revenue and expenses topped the analysts' forecasts, the team said.

Public Storage shares fell 0.93% to close at $75.98.

Also after the Nov. 5 market close, Home Properties Inc. reported third-quarter FFO of 81 cents per share, compared to 84 cents per share in the year-ago period. Third-quarter AFFO was 65 cents per share, compared to 68 cents per share a year earlier.

Additionally, the company raised its full-year FFO-per-share guidance to between $3.18 and $3.24 from a prior range of $3.10 to $3.22, based on higher third-quarter results compared to the previous range. It also reaffirmed its fourth-quarter guidance of between 73 cents and 79 cents per share.

In a Nov. 5 research note, KeyBanc Capital Markets analysts Karin Ford, Jordan Sadler and Austin Wurschmidt applauded the third-quarter results, which beat their estimates, as well as the guidance raise.

"Core growth trends for Home in the quarter were solid, with revenue and NOI declines the lowest among Home's apartment REIT peers and exceeding our forecast," the analysts said.

Home shares closed 1.56% higher at $41.00 on Nov. 6.

National Retail Properties Inc. on Nov. 6 reported third-quarter FFO available to common stockholders of 39 cents per share, compared to 48 cents per share in the prior-year period. The company also provided 2010 full-year FFO guidance of $1.51 to $1.58 per share.

Shares of National Retail lost 2.53%, closing at $19.25 on Nov. 6.

Among other companies reporting after market close Nov. 5, LTC Properties Inc. added 3.13% to close at $25.03, U-Store-It Trust was flat at $6.23, and Saul Centers Inc. slipped 0.84% to end the day at $29.48.

Market movement

The MSCI US REIT Index (RMZ) lost 1.64% to close at 542.75, and the SNL US REIT Equity Index gave up 1.65%, closing at 143.17.

The Dow Jones Industrial Average closed 0.17% higher at 10,023.42, and the S&P 500 climbed 0.25% to 1,069.30.

The SNL U.S. Homebuilders Index rose 0.64% to close at 246.06.

The SNL U.S. Gaming Index slipped 0.40%, ending the day at 155.98.

The yield on the 10-year Treasury decreased 0.025 percentage point to 3.50%.

In macro news

The U.S. unemployment rate rose to 10.2% in October from 9.8%, while nonfarm payroll employment declined by 190,000, the U.S. Bureau of Labor Statistics reported Nov. 6. The rate is the highest since April 1983.

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