Profit is the decisive factor in increasing the share price of a stock. But even good earnings often don’t boost a stock if a company’s future prospects are weaker than analysts expected. Prologis Inc. (NYSE:PLD) investors found this out recently when the company’s shares took a hit after it was announced that Prologis had revised down its full-year 2024 core FFO, while core funds from operations (FFO ) corresponded to the estimates. Prologis then lost almost 10% within a week.
Investors must also consider future forecasts as well as the previous quarter’s earnings when evaluating stocks for possible purchase or sale. With that in mind, take a look at three real estate investment trusts (REITs) that recently raised their full-year 2024 future guidance from previous levels.
Alexander & Baldwin Inc. (Hawaii) (NYSE:ALEX) is a Honolulu-based diversified REIT focused exclusively on commercial real estate in Hawaii. Alexander & Baldwin owns and operates 22 retail centers, 13 industrial facilities and four office properties totaling 3.9 million square feet. It also has 142 acres of ground lease assets. The occupancy rate as of March 31st was 94%. The company looks back on a 154-year history.
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On April 25, Alexander announced its operating results for the first quarter of 2024. FFO of $0.35 beat consensus of $0.26 and topped FFO of $0.29 in Q1 2023. Revenue of $61.2 million topped 49 estimates .25 million and first quarter 2023 revenue of $50.4 million.
More importantly, Alexander & Baldwin also raised its full-year 2024 adjusted funds from operations (AFFO) guidance from $0.80 to $0.90 to $0.89 to $1.00.
Piper Sandler analyst Alexander Goldfarb recently maintained a Neutral rating on Alexander & Baldwin with a $17 price target. Its last close was $15.83, but it opened about 3% higher the morning after its earnings and guidance conference call.
Healthpeak Properties Inc. (NYSE:DOC) is a diversified healthcare REIT based in El Segundo, California that owns and operates private pay facilities such as life science centers, medical practices and nursing homes. Although the company has properties throughout the United States, most of them are located in the San Francisco, San Diego and Boston areas. Healthpeak’s initial public offering (IPO) began in 1985 and the company was added to the S&P 500 in 2008. It owns 774 properties valued at over $20 billion.
On March 1, Healthpeak officially merged with Physicians Realty Trust in a stock-for-stock transaction. Physicians Realty Trust’s PEAK symbol has been changed to DOC.
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On April 1, Bank of America Securities analyst Joshua Dennerlein upgraded Healthpeak Properties to “Buy” from “Underperform” and increased the price target by 38.8% from $18 to $25.
On April 25, Healthpeak announced its operating results for the first quarter of 2024. FFO of $0.45 per share was a penny above the consensus estimate and a 7.14% increase over FFO of $0.42 per share in the first quarter of 2023. Revenue of $606.56 million -$0.45 per share beat the consensus estimate of $588.284 million and was a 15.39% increase from sales of $525.678 million in the first quarter of 2023.
Healthpeak also announced an increase in its full-year 2024 diluted AFFO guidance to $1.53-$1.57 from $1.50-$1.56.
Investors welcomed the news, with Healthpeak rising over 2% the morning after it released earnings and guidance.
Rexford Industrial Realty Inc. (NYSE:REXR) is a Los Angeles-based industrial REIT with 422 properties totaling 49 million square feet that it owns or manages, primarily in high-growth areas of Southern California. Rexford Industrial is a member of the S&P 400 and was founded in 2001. Rexford’s first quarter occupancy rate was 96.8%.
On April 16, Truist Securities analyst Anthony Hau maintained a Buy rating on Rexford Industrial Realty but lowered the price target to $53 from $57.
On April 17, Rexford Industrial Realty reported its first quarter 2024 operating results. FFO of $0.58 per share beat analysts’ consensus estimate of $0.57. Revenue of $210.99 million missed the consensus estimate of $211.56 million and represented a 13.95% increase from first-quarter 2023 revenue of $185.16 million.
Unlike its competitor Prologis, Rexford increased its core FFO for full-year 2024 from $2.27 to $2.30 per share to $2.31 to $2.34. Although Rexford’s share price didn’t benefit much initially, largely due to sympathy selling by industrial REITs along with Prologis, it has risen in recent days.
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This article, “3 REITs That Just Raised Their Full-Year 2024 Guidance” originally appeared on Benzinga.com
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