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Analyst opinions weigh heavily on Wall Street. Investors often see stock prices rise if an analyst upgrades a stock or maintains a previous rating while increasing the price target.
Sometimes analysts look at a particular sector or sub-sector and then increase price targets on several stocks in that group. Other times, when one analyst raises a stock’s rating, another analyst quickly follows suit.
Four real estate investment trusts (REITs) just received new price targets from Scotiabank analyst. Three have diversified portfolios, while the fourth is a retail REIT. Look at:
W. P. Carey
WP Carey Inc. (NYSE:WPC) is a New York-based diversified net lease REIT whose single-tenant properties include industrial, warehouse, retail and self-storage units. It was founded in 1973 and recently celebrated its 50th anniversary in real estate investing.
WP Carey owns 1,282 net leased properties representing approximately 168 million square feet in 26 countries. Its portfolio includes 335 tenants with a weighted average lease term of 14.9 years and an excellent occupancy rate of 99.1.
On April 30, WP Carey reported its first quarter 2024 operating results, missing analysts’ estimates for FFO and revenue. FFO of $1.14 per share and revenue of $386.842 million were lower than the $1.16 per share and $397.594 million expected. FFO was also lower at $1.31 during the same period last year and revenue decreased from $427.350 million in Q1 2023.
WP Carey also confirmed its full-year 2024 AFFO per share of $4.65 to $4.75, with a midpoint of $4.70, slightly above estimates of $4.67.
Despite missing estimates for the second straight quarter, forward guidance has given investors hope and WP Carey shares have rebounded since the earnings announcement.
On May 16, Scotiabank analyst Nicholas Yulico kept WP Carey at Sector Perform and raised the price target by 9%, from $55 to $60. However, WP Carey recently closed at $59.56, so the price target is hardly a ringing endorsement.
Many investors also lost confidence in WP Carey after it announced in September a spinoff and sale of its office properties as well as a surprising dividend cut. Shares have fallen more than 26% since peaking at $81.54 in July 2022.
Sales
Sales Inc. (NYSE:VCR) is a Chicago-based diversified healthcare REIT with 1,368 properties, including senior living, life sciences, research and innovation properties, medical offices, health care facilities, outpatient care and skilled nursing facilities. Ventas has been in business for over 20 years and is a member of the S&P 500.
Ventas has been in the news recently. On May 1, Ventas announced its first quarter 2024 operating results. FFO of $0.78 per share exceeded the consensus estimate of $0.74 and first quarter 2023 FFO of $0.74 per share. Revenue of $1.19 billion beat forecasts of $1.16 billion. Revenue also improved from the first quarter of 2023, when it was $1.08 billion.
On May 15, Ventas announced a quarterly dividend of $0.45 per common share, consistent with its previous quarterly dividend, payable on July 18 to shareholders of record on July 1.
On May 16, Scotiabank analyst Nicholas Yulico maintained Ventas with a Sector Perform rating, increasing the price target from $47 to $51. Ventas saw a significant rise over the past month from $41.45 to $48.71 and could be surpassed. But analyst Yulico still believes there is still a lot to do over the next year.
VICI Properties
VICI Properties Inc. (NYSE:VICI) is a New York-based diversified experiential REIT focused on owning and operating gaming, hospitality and entertainment properties. Its triple net portfolio includes well-known Las Vegas hotels such as Caesars Palace, MGM Grand and Venetian Resort.
VICI Properties was established as a REIT in 2017 and was a spin-off from Caesars Entertainment Operating Company as part of a Chapter 11 reorganization. The IPO occurred on February 1, 2018. 93’s portfolio Vici Properties’ properties currently include 54 gaming facilities and 39 non-gaming facilities, with 60,300 hotel rooms and more than 500 restaurants, bars, nightclubs and sportsbooks.
On May 1, VICI Properties reported first-quarter earnings of $0.56 per share, matching the consensus estimate. Revenue of $951.50 million beat the consensus estimate of $936.67 million and topped Q1 2023 revenue of $877.65 million.
On May 16, Scotiabank analyst Nicholas Yulico maintained VICI Properties with a sector outperform rating and raised the price target from $32 to $34. This represents a potential increase of 12.28% from its recent closing price of $30.28. This is the second increase in analysts’ price target in the past week. Mizuho analyst Handel St. Juste maintained a Buy rating on May 10 and increased the price target from $31 to $32.
Simon Real Estate Group
Simon Real Estate Group Inc. (NYSE:GSP) Simon Property Group is an Indianapolis-based retail REIT that owns and leases more than 250 properties, consisting of shopping centers, restaurants, shopping centers and entertainment venues. It operates in the top 25 population markets in the United States. Simon Property Group was founded in 1960 and launched its IPO in 1993. Its occupancy rate of its high-end shopping centers and retail outlets in the United States at the end of the first quarter of 2024 was 95.5 %, compared to 95.8%. in the fourth quarter of 2023, but up from 94.4% in the first quarter of 2023.
On May 6, Simon Property Group reported strong operating results for the first quarter of 2024. FFO of $3.56 per share beat the consensus estimate of $2.82 and was nearly 30% higher. at FFO of $2.74 per share in the year-ago quarter. Revenue of $1.44 billion was 11.83% above estimates of $1.29 billion and represented a 6.78% increase over first-quarter 2023 revenue of $1.35 billion.
On May 16, Scotiabank analyst Nicholas Yulico maintained Simon Property with a Sector Perform rating and raised the price target from $142 to $152. Simon recently closed at $148.66, down from a high of $157.82 in late March.
2 high-yield alternatives
REITs are a great option for adding real estate to a portfolio and generating a reliable stream of passive income, but savvy investors should also consider alternative investments that offer diversification outside of the stock market and an attractive yield. Two such options are the Ascent Income Fund and EquityMultiple’s Basecamp Alpine Notes.
THE Ascent Income Fund aims for stable income from senior commercial real estate debt positions, offering an attractive return backed by real assets. With a historic distribution yield of 12.1%, payment priority and flexible liquidity options, the Ascent Income Fund is a fundamental investment vehicle for income-oriented investors. For a limited time, new investors with EquityMultiple can invest in the Ascent Income Fund with a reduced minimum of just $5,000.
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Base Camp Alpine Notes by EquityMultiple provides another powerful short-term cash management tool, offering a target APY of 9.00% over a 3-month term with a minimum investment of just $1,000. These notes offer high liquidity and attractive rates with compound interest, making them an ideal choice for investors looking to build their real estate portfolio.
Click here to learn more about what makes Basecamp Alpine Notes an attractive high-yield investment.
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