Latest news with #rentalgrowth
Yahoo
6 hours ago
- Business
- Yahoo
Here's Why You Should Add Equity Residential Stock to Your Portfolio
Equity Residential EQR, which has a dominating presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, is expanding into Denver, Atlanta, Dallas/Ft. Worth and Austin, and positioning itself to benefit from a more diversified portfolio. The company is also banking on technology, scale and organizational capabilities to drive demand and limited resident turnover have helped sustain the occupancy level and driven rental rates higher, supporting same-store revenue growth in the first quarter of 2025. Moreover, per its investor update, physical occupancy remained strong and above the prior year in April and the U.S. apartment market remained impressively resilient in the second quarter of 2025, absorbing more than 227,000 units between April and June, a robust second-quarter figure. This bodes well for Equity Residential. Elevated absorption suggests that the renter appetite for professionally managed apartments is holding firm despite broader macro to RealPage data, annual absorption surpassed even the peak leasing surge of 2021 and early 2022, defying a backdrop of slowing job growth, weak business sentiment and broader economic uncertainty. While rent growth stayed muted, up just 0.19% in June, occupancy climbed steadily. At 95.6% in June, national occupancy rose 140 basis points year over shares of Equity Residential have declined 3.6% compared with the industry's fall of 3.2% in the past six months, the stock currently carries a Zacks Rank #2 (Buy). Given its solid fundamentals, this decline offers a good entry point. Image Source: Zacks Investment Research Factors That Make Equity Residential a Solid Pick Strategic Portfolio Positioning and Technology Initiatives: Equity Residential is targeting places where affluent renters prefer to live, work and play. In its strategy, the company is taking into consideration the hybrid working environment and the migration trends of affluent renters and opting for the acquisition and development of properties in suburban locations of its established markets and adding select new given the high cost of homeownership, especially relative to rents, the transition from renter to homeowner is difficult in these markets, making renting apartment units a viable option. The company expects its total same-store revenues to grow year over year between 2.25% and 3.25% in 2025. We estimate the same to grow by 2.8%.Equity Residential is also banking on technology and organizational capabilities to drive growth and improve the efficiency of its operating platform. Such efforts are likely to provide the company with a competitive edge over others and drive growth in net operating income (NOI) in the upcoming period. We estimate the same-store NOI to increase year over year by 2.2% for Sheet Strength: Equity Residential has a healthy balance sheet with ample liquidity and financial flexibility. As of March 31, 2025, the company had nearly $2.2 billion of liquidity. It has a well-laddered debt maturity schedule. It ended the first quarter of 2025 with a net debt to normalized EBITDAre of 4.21X. Unencumbered NOI as a percentage of the total NOI was 90.5% in the quarter. Further, an A-rated balance sheet renders the company access to the debt market at favorable rates. With manageable debt maturities, solid credit metrics, significant unencumbered assets and sufficient access to capital markets at favorable rates, Equity Residential seems well-positioned to meet its future obligations as well as ride the growth Payout: Solid dividend payouts remain the biggest attraction for REIT investors and Equity Residential remains committed to this purpose. Over the last decade, the residential REIT has delivered strong dividend growth while maintaining a manageable Dividend Payout Ratio. Based on the latest dividend, per its May 2025 Investor Day presentation, for the 2011-2025 period, the company's dividend witnessed a compound annual growth rate of 5.8%.Given the company's solid operating platform and balance sheet strength compared with industry counterparts, this dividend growth rate is expected to be sustainable over the long run. Other Stocks to Consider Some other top-ranked stocks from the residential REIT sector are Camden Property Trust CPT and American Homes 4 Rent AMH. Camden Property Trust and American Homes 4 Rent currently carry a Zacks Rank #2 each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for Camden Property Trust's current-year FFO per share has been raised marginally over the past two months to $ Zacks Consensus Estimate for American Homes 4 Rent's 2025 FFO per share has moved marginally northward over the past three months to $ Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equity Residential (EQR) : Free Stock Analysis Report Camden Property Trust (CPT) : Free Stock Analysis Report American Homes 4 Rent (AMH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Khaleej Times
2 days ago
- Business
- Khaleej Times
Dubai commercial property vacancy rate hits all-time low as businesses flock in
Dubai's commercial real estate is booming as vacancy rates are at an all-time low of 8.6 per cent, driven by the inflow of foreign players and the launch of new companies, said Sapna Jagtiani, director and lead analyst, Middle East at S&P Global Ratings. The high demand for commercial space is driving up rentals as well across the emirate, especially for prime/grade-A offices, she added. Sapna noted that this strong growth for commercial property is backed by regulations for businesses, a dynamic economic environment, and the low tax that the city offers to businesses. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'Dubai and Abu Dhabi are seeing resilient demand and small rental growth for retail real estate. Prime super regional malls continue to dominate the market, which has led to mall owners expanding their offerings,' she added. Industry insiders said that popular malls in Dubai have a waiting list for new clients due to the low vacancy rate. Sapna pointed out that shoppers in the Gulf Cooperation Council (GCC) are looking for unique concepts, new brands, and experiences. 'Urbanisation trends, especially in Riyadh and Jeddah, are driving demand for modern retail formats and omnichannel strategies. Mall owners who fail to stay on trend are likely to face rental pressure and higher vacancies. Luxury spending in the region remains high, driving growth for prime malls. Consumer spending in general, however, remains cautious given economic uncertainty, relatively high interest rates, and inflationary pressure,' she said in the latest notes on the local and regional economic landscape. Moderate correction Sapna projected that the Dubai residential property market could see a moderate price correction in 12-18 months. 'Dubai could see residential prices fall due to a potentially significant increase in new supply, but the degree of the correction will likely be moderate compared with previous downturns.' In May 2025, it projected not more than a 15 per cent correction in prices. She added that presales in Dubai are breaking records. "Demand for residential real estate remains high despite the escalation of Israel-Iran tensions and tariff disruptions. Favourable visa reforms and quality of life continue to attract high-net-worth buyers such that sales volume for luxury units priced above Dh10 million ($2.72 million) has increased by around 60 per cent year-over-year in the first half of 2025,' she added. Being a safe haven, historically, the UAE and Dubai have benefitted from regional and global geopolitical conflicts, which sparked population growth and investment inflows.
Yahoo
3 days ago
- Business
- Yahoo
Prologis: Strong Despite Tariff Concerns
Key Points Prologis reported strong FFO growth for the second quarter of 2025. Cash rent change on new and renewal leases was almost 35%. The company raised its full-year guidance for FFO, acquisitions, and development. 10 stocks we like better than Prologis › Here's our initial take on Prologis' (NYSE: PLD) fiscal 2025 second-quarter financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Rental revenue $1.853 billion $2.037 billion 4.6% Beat Core FFO per share $1.34 $1.46 9% Beat Occupancy 96.3% 94.8% -150 bps n/a Cash rent change 51.4% 34.8% N/A n/a A Solid Quarter in a Challenging Environment Prologis certainly isn't the most tariff-prone business in the world, but with a global network of logistics properties, there have been fears that demand for its rental properties could suffer. But Prologis' second-quarter results were quite strong, and gave investors some relief. For starters, Prologis reported core funds from operations (FFO), a great metric of real estate "earnings," that was 9% greater than the same period last year. Rental revenue came in at $2.04 billion, which was ahead of estimates. Beyond the headline numbers, Prologis' occupancy remained strong at 94.8%, and as we've seen in recent years, cash rent change on new and renewal leases averaged a stellar 34.8%. In other words, when someone renews their lease with Prologis, they're paying nearly 35% more than they were under the old agreement. The short explanation is that demand (and rental rates) for industrial properties soared during the pandemic, and many of Prologis' existing leases were from prior to that time. As these leases mature, rental rates are being brought in line with the market. Prologis ended the first quarter with $7.1 billion in liquidity and a stellar balance sheet, so it is ready to act as opportunities arise. Finally, Prologis slightly increased its full-year guidance. Excluding net promote income (which isn't consistent), the company increased its full-year core FFO forecast by more than $0.04 at the midpoint of the range. Forecasts for development starts and acquisitions were also raised. Immediate Market Reaction Not surprisingly, the immediate reaction to Prologis' second-quarter numbers was a positive one. As of 8:15 a.m. EDT, about 15 minutes after the earnings release, shares were up by about 2%. It's worth noting that this reaction was before management's earnings call, so it's possible that whatever is discussed could move the stock in one direction or the other. What to Watch Prologis' management has been saying that industrial real estate is nearing an inflection point for a few quarters, and frankly, it doesn't look like we are there quite yet. But if interest rates start to cool off later this year, it could certainly be a strong catalyst. CEO Hamid Moghadam said that customers, especially Prologis' larger customers, are "increasingly ready to act," so this will be worth watching going forward. Helpful Resources Full earnings report Investor relations page Additional coverage: 3 Reasons to Buy Prologis Stock Should you buy stock in Prologis right now? Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Matt Frankel has positions in Prologis. The Motley Fool has positions in and recommends Prologis. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. Prologis: Strong Despite Tariff Concerns was originally published by The Motley Fool 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
Globe and Mail
5 days ago
- Business
- Globe and Mail
A top pick in the hottest REIT sector
Daily roundup of research and analysis from The Globe and Mail's market strategist Scott Barlow Scotiabank analyst Himanshu Gupta went in-depth on the hottest REIT sector: senior housing, 'In the last three weeks, we reached out to 20+ retirement homes owned by CSH [Chartwell Retirement Residences] and SIA [Sienna Senior Living Inc], and posed as someone requiring a suite for their elderly grandmother! … Based on our conversations with marketing teams of various homes, we gathered 4 to 5% renewal rental spreads in 2025 (mostly similar to last year & in some cases slightly better), and very limited/targeted incentives on offer … Market rent growth is key to keep the Seniors Housing story going: We looked at previous cycle peaks of Industrial REITs, U.S. Sunbelt multi-family and CDN self storage - the three darlings during/post COVID. We observed that unit prices/AFFO [adjusted funds from operations] multiples peaked, in and around the same time when market rent growth peaked ... Based on supply-demand backdrop in Seniors Housing, we believe, market rent growth story is likely to sustain for the next few years, and as such Seniors Housing remains our most preferred sector ... CSH (CSH-UN-T) remains our top pick.' *** A nuclear power-focused podcast from BofA Securities emphasized thorium and a more enriched form of uranium, 'While adding capacity to existing plants isn't a major challenge, adding new US plants is more difficult. Jess Gehin from the Idaho National Lab and BofA Global Research's US Utility analyst Ross Fowler join to discuss what may lie ahead. Jess covers how the recent Executive Orders could accelerate the deployment of nuclear and how they've already stimulated activity. Jess also discusses HALEU [High-Assay Low-Enriched Uranium], a more enriched variety of uranium used in some of the small modular nuclear reactors as well as Thorium, a reactor fuel that was studied in the 1960s and which has seen a resurgence of interest. While Thorium could eventually provide the US a domestically sourced nuclear fuel that enables longer term growth in nuclear generation, Jess believes uranium will be the fuel that continues to dominate for the foreseeable future.' 'Dig it - nuclear renaissance looks to the '60s for inspiration' – BofA Securities *** Bloomberg's Edward Harrison sees trouble brewing under the surface of the U.S. economy, 'Ponzi financing has increased dramatically. Investors are chasing the next … Translation: investors have become increasingly comfortable buying shares of companies that can't fund themselves out of their own cash flow. Why is that, you might ask? I believe a lot of it has to do with the proven Silicon Valley model. It's Apple. It's Microsoft. It's Amazon… people are willing to overlook Ponzi financing of smaller public companies, regardless of sector, as they wait for profits to gush out when the companies reach scale. By the numbers, * 74.8% - Percent of small firms with negative sources of cash … If that constant uncertainty and whipsawing of prices finally brings the US economy to a standstill, there's a non- zero risk — I'd call it substantial — that investors' willingness to fund firms with operating budgets that exceed cash flow would diminish swiftly and substantially … What does that mean for big firms and the economy? My view is that it's akin to what we saw when the Internet bubble popped. Many a small internet companies and upstart telecom businesses went bust' 'The Financial Fragility Risks Are Not in the S&P 500' – Bloomberg *** Bluesky post of the day: Diversion: ' Midlife Mood Shift? Study Says Anger Drops After 50' – SciTechDaily
News.com.au
12-06-2025
- Business
- News.com.au
Revealed: 20 suburbs where rents will keep rising
Rents are set to continue rising in at least 20 regions across the country over the next 12 months, with rental stock still a third below pre-pandemic levels and experts predicting a long road to recovery. A new report provided exclusively to News Corp by property investment advisory, InvestorKit, reveals the markets under the most pressure based on vacancy rates, supply levels, rental yields, affordability, and long-term demand. While rental growth has moderated compared to previous years, regions in Western Australia, South Australia and Queensland continue to lead the country. InvestorKit has identified Unley in Adelaide as a standout suburb for future rental growth, with its median house price of $1.4m making renting significantly cheaper than buying, even with anticipated rate cuts. It also highlights Mundaring in Perth, which has seen rents surge 69 per cent over the past four years, combined with persistently low vacancy rates and limited new supply. In Brisbane, Loganlea, The Gap, and Wynnum-Manly are tipped to see continued rental growth due to their relative affordability compared to house prices and a lack of new housing supply in these areas. MORE: Sold in 12 minutes: Fund manager's $17.5m penthouse pay day InvestorKit CEO Arjun Paliwal said despite interest rates falling, housing supply was still well below demand, which would keep upward pressure on rents in 2025 and beyond. 'Australia's rental crisis has now entered its fourth year and while there has been some relief, for example, national 'for rent' listings and vacancy rates have improved slightly, both metrics remain significantly below their pre-Covid levels,' Mr Paliwal said. 'This is not a temporary issue. It is a chronic condition driven by long-standing structural problems: a sustained lack of private rental supply, limited diversity in rental options, insufficient social housing, and an ongoing shortfall in new housing supply that cannot be quickly resolved.' The latest vacancy rate data from SQM Research reveals the national vacancy rate held steady at 1.2 per cent in May, down from 1.3 per cent in April. Nationally, combined rents average $649 a week, ranging from a high of $854/week in Sydney, to $543/week in Hobart. SQM Research managing director Louis Christopher said it was likely the nation would see 'ongoing elevated rents for a long period of time', until the tenancy demand/supply ratio was more balanced. 'That's not likely to happen until such time as we experience a slow down in population rate and a meaningful increase in new dwelling completions,' Mr Christopher said. REGIONS WHERE RENTS ARE SET TO CONTINUE TO RISE 1. Unley, Adelaide 2. Mundaring, Perth 3. Loganlea, Greater Brisbane 4. The Gap - Enoggera, Brisbane 5. Wynnum - Manly, Brisbane 6. Wyong, Greater Sydney 7. Hobsons Bay, Greater Melbourne 8. Hobart - North East, Greater Hobart 9. Bathurst, NSW 10. Dubbo, NSW 11. Inverell - Tenterfield, NSW 12. Tamworth - Gunnedah, NSW 13. Goulburn - Mulwaree, NSW 14. Albury - Wodonga, NSW/Victoria 15. Bendigo, Victoria, 16. Devonport, Tasmania 17. Rockhampton, QLD 18. Toowoomba, QLD 19. Geraldton, Western Australia 20. Albany, Western Australia
