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Yahoo
4 days ago
- Business
- Yahoo
FIBRA Macquarie (DBMBF) Q2 2025 Earnings Call Highlights: Record Performance Amid Macroeconomic ...
Consolidated Revenues: Record per certificate results in underlying US dollar terms. NOI (Net Operating Income): Record results driven by robust lease GLA performance. AFFO (Adjusted Funds From Operations): $30 million, an 8.6% increase year over year. Distribution Yield: Attractive dollarized cash yield of 8% with a mid 80% payout ratio. Leasing Activity: 1.3 million square feet executed, rental rates grew by 6.8% to $6.45 per square meter. Renewal Spreads: Achieved 28% on commercially negotiated leases. Industrial Occupancy: 94.8%, up 10 basis points sequentially. Retail Portfolio NOI Growth: 4.5% for the quarter. Retail Occupancy: 93.4%, up more than 130 basis points year over year. Real Estate Net LTV: Below 33% as of June 30. Liquidity: $420 million US. Debt Repayment: $50 million US during 2Q '25. FY25 AFFO Guidance: $115 to $119 million US. Cash Distributions Guidance: MXN2.45 per certificate for FY25. FX Assumption Update: Revised to MXN18.5 per US dollar from 20.5%. Warning! GuruFocus has detected 8 Warning Signs with DBMBF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points FIBRA Macquarie (DBMBF) reported record per certificate results in key metrics such as consolidated revenues, NOI, AFFO, and NAV for the second quarter of 2025. The industrial portfolio maintained a high occupancy rate of 94.8% and achieved a 6.8% increase in rental rates, reaching $6.45 per square meter. The company successfully executed 1.3 million square feet of leasing activity with notable renewal spreads of 28% on commercially negotiated leases. FIBRA Macquarie's retail portfolio showed steady improvements with a 4.5% NOI growth and occupancy reaching a post-pandemic high of 93.4%. The company maintains a strong balance sheet with a real estate net LTV below 33% and robust liquidity of $420 million US, allowing for strategic growth and development opportunities. Negative Points Macroeconomic uncertainties, including tariff negotiations and geopolitical factors, are contributing to slower decision-making and impacting new leasing activities. The company faces challenges in larger Class A buildings due to tenants' hesitance in making significant CapEx decisions amid the current macro backdrop. There is a general softness in near-shoring markets such as Monterrey, Juarez, and Reynosa, which remain relatively weak. FIBRA Macquarie's development program faces potential risks related to increased land prices and infrastructure costs, which could impact yield on cost levels. The company is trading at a significant discount to its asset value, raising questions about potential buybacks and capital allocation priorities. Q & A Highlights Q: What is the current gap between your interest rents and the market trends for your industrial portfolio? A: Simon Hanna, CEO, stated that they achieved record spreads of 28% in the second quarter. They are on track to meet their goal of double-digit spreads for the year, with only 5% of scheduled expirations remaining. They expect to maintain solid double-digit spreads with the remaining leases. Q: Can you provide insights into the retail activity and its resilience to tariff noise affecting the industrial portfolio? A: Simon Hanna, CEO, mentioned that retail, which contributes about 15% of their overall NOI, had a strong quarter. They see more tailwinds than headwinds for the second half of the year, with expectations of resilient performance in key metrics like occupancy and rental rates. The recent peso appreciation has also been beneficial. Q: Could you comment on the commercialization for the FRISA JV in Tijuana? A: Simon Hanna, CEO, expressed excitement about the project, which is still in preparatory stages. The location is favorable for both manufacturing and logistics due to its proximity to labor and transport connections. Tijuana shows relative activity compared to other near-shoring markets, and they feel confident about going vertical there earlier. Q: Are there any risks to the yield on cost levels between 9% and 11% for your CapEx program? A: Andrew McDonald-Hughes, CFO, stated they remain confident in maintaining those levels despite increases in land prices and infrastructure costs. They expect the lower end of the range in active markets like Tijuana and Mexico City, with other markets trending towards the midpoint. Q: Are there any refinancing activities planned to extend maturities or optimize your debt structure? A: Andrew McDonald-Hughes, CFO, confirmed they are actively planning to extend maturities and optimize their debt structure, maintaining leverage guidance between 30% and 35% LTV. They see positive indications from debt markets and are confident in delivering solid results. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
FIBRA Macquarie (DBMBF) Q2 2025 Earnings Call Highlights: Record Performance Amid Macroeconomic ...
Consolidated Revenues: Record per certificate results in underlying US dollar terms. NOI (Net Operating Income): Record results driven by robust lease GLA performance. AFFO (Adjusted Funds From Operations): $30 million, an 8.6% increase year over year. Distribution Yield: Attractive dollarized cash yield of 8% with a mid 80% payout ratio. Leasing Activity: 1.3 million square feet executed, rental rates grew by 6.8% to $6.45 per square meter. Renewal Spreads: Achieved 28% on commercially negotiated leases. Industrial Occupancy: 94.8%, up 10 basis points sequentially. Retail Portfolio NOI Growth: 4.5% for the quarter. Retail Occupancy: 93.4%, up more than 130 basis points year over year. Real Estate Net LTV: Below 33% as of June 30. Liquidity: $420 million US. Debt Repayment: $50 million US during 2Q '25. FY25 AFFO Guidance: $115 to $119 million US. Cash Distributions Guidance: MXN2.45 per certificate for FY25. FX Assumption Update: Revised to MXN18.5 per US dollar from 20.5%. Warning! GuruFocus has detected 8 Warning Signs with DBMBF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points FIBRA Macquarie (DBMBF) reported record per certificate results in key metrics such as consolidated revenues, NOI, AFFO, and NAV for the second quarter of 2025. The industrial portfolio maintained a high occupancy rate of 94.8% and achieved a 6.8% increase in rental rates, reaching $6.45 per square meter. The company successfully executed 1.3 million square feet of leasing activity with notable renewal spreads of 28% on commercially negotiated leases. FIBRA Macquarie's retail portfolio showed steady improvements with a 4.5% NOI growth and occupancy reaching a post-pandemic high of 93.4%. The company maintains a strong balance sheet with a real estate net LTV below 33% and robust liquidity of $420 million US, allowing for strategic growth and development opportunities. Negative Points Macroeconomic uncertainties, including tariff negotiations and geopolitical factors, are contributing to slower decision-making and impacting new leasing activities. The company faces challenges in larger Class A buildings due to tenants' hesitance in making significant CapEx decisions amid the current macro backdrop. There is a general softness in near-shoring markets such as Monterrey, Juarez, and Reynosa, which remain relatively weak. FIBRA Macquarie's development program faces potential risks related to increased land prices and infrastructure costs, which could impact yield on cost levels. The company is trading at a significant discount to its asset value, raising questions about potential buybacks and capital allocation priorities. Q & A Highlights Q: What is the current gap between your interest rents and the market trends for your industrial portfolio? A: Simon Hanna, CEO, stated that they achieved record spreads of 28% in the second quarter. They are on track to meet their goal of double-digit spreads for the year, with only 5% of scheduled expirations remaining. They expect to maintain solid double-digit spreads with the remaining leases. Q: Can you provide insights into the retail activity and its resilience to tariff noise affecting the industrial portfolio? A: Simon Hanna, CEO, mentioned that retail, which contributes about 15% of their overall NOI, had a strong quarter. They see more tailwinds than headwinds for the second half of the year, with expectations of resilient performance in key metrics like occupancy and rental rates. The recent peso appreciation has also been beneficial. Q: Could you comment on the commercialization for the FRISA JV in Tijuana? A: Simon Hanna, CEO, expressed excitement about the project, which is still in preparatory stages. The location is favorable for both manufacturing and logistics due to its proximity to labor and transport connections. Tijuana shows relative activity compared to other near-shoring markets, and they feel confident about going vertical there earlier. Q: Are there any risks to the yield on cost levels between 9% and 11% for your CapEx program? A: Andrew McDonald-Hughes, CFO, stated they remain confident in maintaining those levels despite increases in land prices and infrastructure costs. They expect the lower end of the range in active markets like Tijuana and Mexico City, with other markets trending towards the midpoint. Q: Are there any refinancing activities planned to extend maturities or optimize your debt structure? A: Andrew McDonald-Hughes, CFO, confirmed they are actively planning to extend maturities and optimize their debt structure, maintaining leverage guidance between 30% and 35% LTV. They see positive indications from debt markets and are confident in delivering solid results. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Rexford Industrial Realty Inc (REXR) Q2 2025 Earnings Call Highlights: Strong Leasing Activity ...
Leases Executed: 1.7 million square feet, including lease up of four repositioning and redevelopment projects. Leasing Spreads: Net effective leasing spreads at 21%, cash leasing spreads at 8%. Embedded Rent Steps: Averaged 3.7%, up 10 basis points from last quarter. Same Property Occupancy: 96.1%, an increase of 40 basis points sequentially. Net Absorption: Positive 220,000 square feet. Market Rent Decline: 3.5% sequentially, 12.8% year over year. Repositioning and Redevelopment Lease Up: 520,000 square feet executed, total year-to-date over 900,000 square feet. Annualized NOI from Repositioning: Over $16 million, with a 7.4% unlevered stabilized yield. Dispositions: $82 million in the quarter, year-to-date $134 million at a low 4% cap rate. Core FFO: $0.59 per share, $0.01 increase over the prior quarter. Full Year 2025 Core FFO Outlook: $2.37 to $2.41 per share. Incremental Cash NOI Opportunity: $195 million, representing growth of 28%. Liquidity: Over $1.8 billion, including $560 million of cash. Net Debt to EBITDA: 4 times. Warning! GuruFocus has detected 5 Warning Signs with REXR. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Rexford Industrial Realty Inc (NYSE:REXR) executed 1.7 million square feet of leases, including lease-up of four repositioning and redevelopment projects. The company achieved a same property occupancy rate of 96.1%, an increase of 40 basis points sequentially. Rexford Industrial Realty Inc (NYSE:REXR) reported de minimis levels of bad debt at only 6 basis points of revenue, indicating strong tenant health. The company has a substantial embedded growth opportunity within its portfolio, totaling $195 million of incremental cash NOI, representing growth of 28%. Rexford Industrial Realty Inc (NYSE:REXR) has over $1.8 billion of liquidity, including $560 million of cash, and a low leverage balance sheet with net debt to EBITDA of 4 times. Negative Points Market rents across Rexford's portfolio declined approximately 3.5% sequentially and 12.8% year over year. Macroeconomic and tariff uncertainty are impacting tenant decision-making, putting pressure on overall demand, rent levels, and lease-up time frames. The company has no acquisitions under contract or accepted offer currently, despite actively pursuing potential opportunities. Rexford Industrial Realty Inc (NYSE:REXR) expects some deceleration in occupancy in the second half of the year due to planned move-outs within the same property portfolio. The company experienced delays in rent commencements on repositioning and redevelopment projects, impacting financial projections. Q & A Highlights Q: Can you discuss the potential future repositioning and redevelopment starts and the variability in the timeline for these projects? A: Michael Fitzmaurice, CFO, explained that the pipeline is somewhat fluid and can change quarter to quarter. The biggest driver currently is the Hertz asset, which will have a significant impact when its lease expires in March 2026. Laura Clark, COO, added that the Hertz asset is an irreplaceable location adjacent to LAX, and they are ready to start development to deliver a 400,000 square foot building there. Q: How do you view the 3% cash mark to market going forward, and what impact could it have on cash same-store growth? A: Laura Clark, COO, noted that the cash mark to market is currently at 3%, and its future trend will depend on market rent growth. Only about 15% of the portfolio rolls annually, so future leasing spreads will depend on the mix of units and properties rolling. Rexford's growth is not dependent on mark to market, as there is significant embedded growth within the portfolio from repositioning and redevelopment projects. Q: Are you seeing opportunities to invest at higher cap rates, and is share buyback a consideration given the current cost of capital? A: Laura Clark, COO, stated that their capital allocation principles remain unchanged, focusing on cash flow accretion and net asset value. They continue to evaluate acquisition opportunities that meet stringent criteria and are looking to recycle disposition proceeds at higher yields. Share buybacks were not specifically addressed, but the focus remains on repositioning and redevelopment for attractive returns. Q: Can you elaborate on the delays in rent commencements for repositioning and redevelopment projects? A: Laura Clark, COO, mentioned that they feel good about the progress, having leased about 900,000 square feet, with 1.5 million square feet remaining. Rent commencement assumptions are late in the year, with a slight delay of about one month on average due to market dynamics. They have activity on 80% of the remaining space and are comfortable with their projections. Q: How has tenant behavior changed in terms of lease terms and renewal activity? A: Laura Clark, COO, noted that lease terms have remained steady at four to five years on average. Renewal activity has been strong, with tenants approaching earlier for renewals. Early renewals have doubled compared to the previous year, indicating tenants' need to secure space and their long-term strategic planning. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Rexford Industrial Realty Inc (REXR) Q2 2025 Earnings Call Highlights: Strong Leasing Activity ...
Leases Executed: 1.7 million square feet, including lease up of four repositioning and redevelopment projects. Leasing Spreads: Net effective leasing spreads at 21%, cash leasing spreads at 8%. Embedded Rent Steps: Averaged 3.7%, up 10 basis points from last quarter. Same Property Occupancy: 96.1%, an increase of 40 basis points sequentially. Net Absorption: Positive 220,000 square feet. Market Rent Decline: 3.5% sequentially, 12.8% year over year. Repositioning and Redevelopment Lease Up: 520,000 square feet executed, total year-to-date over 900,000 square feet. Annualized NOI from Repositioning: Over $16 million, with a 7.4% unlevered stabilized yield. Dispositions: $82 million in the quarter, year-to-date $134 million at a low 4% cap rate. Core FFO: $0.59 per share, $0.01 increase over the prior quarter. Full Year 2025 Core FFO Outlook: $2.37 to $2.41 per share. Incremental Cash NOI Opportunity: $195 million, representing growth of 28%. Liquidity: Over $1.8 billion, including $560 million of cash. Net Debt to EBITDA: 4 times. Warning! GuruFocus has detected 5 Warning Signs with REXR. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Rexford Industrial Realty Inc (NYSE:REXR) executed 1.7 million square feet of leases, including lease-up of four repositioning and redevelopment projects. The company achieved a same property occupancy rate of 96.1%, an increase of 40 basis points sequentially. Rexford Industrial Realty Inc (NYSE:REXR) reported de minimis levels of bad debt at only 6 basis points of revenue, indicating strong tenant health. The company has a substantial embedded growth opportunity within its portfolio, totaling $195 million of incremental cash NOI, representing growth of 28%. Rexford Industrial Realty Inc (NYSE:REXR) has over $1.8 billion of liquidity, including $560 million of cash, and a low leverage balance sheet with net debt to EBITDA of 4 times. Negative Points Market rents across Rexford's portfolio declined approximately 3.5% sequentially and 12.8% year over year. Macroeconomic and tariff uncertainty are impacting tenant decision-making, putting pressure on overall demand, rent levels, and lease-up time frames. The company has no acquisitions under contract or accepted offer currently, despite actively pursuing potential opportunities. Rexford Industrial Realty Inc (NYSE:REXR) expects some deceleration in occupancy in the second half of the year due to planned move-outs within the same property portfolio. The company experienced delays in rent commencements on repositioning and redevelopment projects, impacting financial projections. Q & A Highlights Q: Can you discuss the potential future repositioning and redevelopment starts and the variability in the timeline for these projects? A: Michael Fitzmaurice, CFO, explained that the pipeline is somewhat fluid and can change quarter to quarter. The biggest driver currently is the Hertz asset, which will have a significant impact when its lease expires in March 2026. Laura Clark, COO, added that the Hertz asset is an irreplaceable location adjacent to LAX, and they are ready to start development to deliver a 400,000 square foot building there. Q: How do you view the 3% cash mark to market going forward, and what impact could it have on cash same-store growth? A: Laura Clark, COO, noted that the cash mark to market is currently at 3%, and its future trend will depend on market rent growth. Only about 15% of the portfolio rolls annually, so future leasing spreads will depend on the mix of units and properties rolling. Rexford's growth is not dependent on mark to market, as there is significant embedded growth within the portfolio from repositioning and redevelopment projects. Q: Are you seeing opportunities to invest at higher cap rates, and is share buyback a consideration given the current cost of capital? A: Laura Clark, COO, stated that their capital allocation principles remain unchanged, focusing on cash flow accretion and net asset value. They continue to evaluate acquisition opportunities that meet stringent criteria and are looking to recycle disposition proceeds at higher yields. Share buybacks were not specifically addressed, but the focus remains on repositioning and redevelopment for attractive returns. Q: Can you elaborate on the delays in rent commencements for repositioning and redevelopment projects? A: Laura Clark, COO, mentioned that they feel good about the progress, having leased about 900,000 square feet, with 1.5 million square feet remaining. Rent commencement assumptions are late in the year, with a slight delay of about one month on average due to market dynamics. They have activity on 80% of the remaining space and are comfortable with their projections. Q: How has tenant behavior changed in terms of lease terms and renewal activity? A: Laura Clark, COO, noted that lease terms have remained steady at four to five years on average. Renewal activity has been strong, with tenants approaching earlier for renewals. Early renewals have doubled compared to the previous year, indicating tenants' need to secure space and their long-term strategic planning. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
16-07-2025
- Business
- Yahoo
JPMorgan Upgrades Ventas (VTR) to 'Overweight' with $72 Price Target
Ventas, Inc. (NYSE:VTR) is one of Goldman Sachs' top REIT stock picks. On June 23, JPMorgan upgraded Ventas' stock rating from 'Neutral' to 'Overweight'. The firm also increased the price target on Ventas shares from $70 to $72. The upgrade reflects a more positive outlook compared to the previous neutral stance. A senior couple walking hand-in-hand in a senior housing facility. One of the factors JPMorgan cited was Ventas' 'strong internal and external growth trends.' The firm particularly pointed to the company's double-digit same-store net operating income (NOI) growth in its senior housing operating portfolio (SHOP), Ventas' largest portfolio segment. JPMorgan noted that Ventas has maintained a consistent flow of acquisition opportunities, supporting external growth. The investment firm also cited good visibility for above-average normalized funds from operations (NFFO) per share growth over the next few years. Compared to Ventas's closest peer, JPMorgan noted that Ventas offers more value on an implied capitalization rate basis, though potentially with somewhat less growth potential. The firm observed that the expected external growth recovery in the overall REIT sector has not broadly materialized, making Ventas's external growth dynamics stand out. Ventas, Inc. (NYSE:VTR) is a healthcare-focused REIT with a portfolio of approximately 1,400 properties across the U.S., Canada, and the U.K., including senior housing communities, medical office buildings, and life science centers. Its growth is anchored in the senior housing operating portfolio (SHOP), which delivered double-digit NOI gains in early 2025, supported by rising occupancy and data-driven asset management. While we acknowledge the potential of VTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Goldman Sachs Healthcare Stocks: Top 10 Stock Picks and 11 Best Green Energy Penny Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
