Ratings on shares of Sovran Self Storage, Inc. (NYSE: SSS), Enerplus Resources Fund (NYSE: ERF), Techne Co. (NASDAQ: TECH), Terreno Realty Corporation (NASDAQ: TRNO) and Washington Real Estate Investment Trust (NYSE: WRE) were upgraded by analysts.
Canaccord Genuity upgraded Enerplus Resources Fund (ERF) from a “hold” rating to a “buy” rating.
Macquarie upgraded Sovran Self Storage, Inc. (SSS) from an “underperform” rating to a “neutral” rating.
Lazard Capital upgraded Techne Co. (TECH) from a “neutral” rating to a “buy” rating. They have a price target of $97.00 on the company.
Stifel Nicolaus upgraded Terreno Realty Corpo (TRNO) from a “hold” rating to a “buy” rating. They have a price target of $19.00 on the company.
Stifel Nicolaus upgraded Washington Real Estate Investment Trust (WRE) from a “hold” rating to a “buy” rating. They have a price target of $36.00 on the company.
Showing posts with label Sovran. Show all posts
Showing posts with label Sovran. Show all posts
Tuesday, May 17, 2011
Thursday, January 6, 2011
FBR on Reits UDR (NYSE:UDR), Associated Estates (NYSE:AEC), Equity Lifestyle (NYSE:ELS), Public Storage (NYSE:PSA), Sovran Self Storage (NYSE:SSS) if
UDR (NYSE:UDR), Associated Estates (NYSE:AEC), Equity Lifestyle (NYSE:ELS), Public Storage (NYSE:PSA) and Sovran Self Storage (NYSE:SSS) were analyzed by FBR as to the effect an increase in interest rates would have on the REITs.
FBR concluded, "In recent years, REIT earnings have been goosed by the low rate environment, as companies helped themselves to healthy servings of floating-rate debt. What happens to earnings if rates rise, without any extra growth, other than what is already cooked into 2011 estimates? We ran a simple screen on the short-lease universe (apartments, student and manufactured housing, and self storage). We excluded any debt that is swapped, but included any debt that is capped, and assumed no refi activity (the latter assumption being somewhat unlikely). For some companies there could be downside to current 2011 FFO estimates; for others there is minimal risk. Below, we highlight the most and least impacted REITs, based on a 100 basis point increase in underlying rates. See page
two for a full ranking."
The following companies could see the biggest percentage decline to our forecasted 2011 FFO per share estimates in the test scenario: UDR (Market Perform) and Associated Estates Realty Corp. (Outperform, –4.1%)
The following companies could see the smallest percentage decline to our forecasted 2011 FFO per share estimates in the test scenario: Equity Lifestyle Properties (Market Perform), Public Storage (Underperform, 0%), and Sovran Self Storage (Outperform).
FBR concluded, "In recent years, REIT earnings have been goosed by the low rate environment, as companies helped themselves to healthy servings of floating-rate debt. What happens to earnings if rates rise, without any extra growth, other than what is already cooked into 2011 estimates? We ran a simple screen on the short-lease universe (apartments, student and manufactured housing, and self storage). We excluded any debt that is swapped, but included any debt that is capped, and assumed no refi activity (the latter assumption being somewhat unlikely). For some companies there could be downside to current 2011 FFO estimates; for others there is minimal risk. Below, we highlight the most and least impacted REITs, based on a 100 basis point increase in underlying rates. See page
two for a full ranking."
The following companies could see the biggest percentage decline to our forecasted 2011 FFO per share estimates in the test scenario: UDR (Market Perform) and Associated Estates Realty Corp. (Outperform, –4.1%)
The following companies could see the smallest percentage decline to our forecasted 2011 FFO per share estimates in the test scenario: Equity Lifestyle Properties (Market Perform), Public Storage (Underperform, 0%), and Sovran Self Storage (Outperform).
Tuesday, December 14, 2010
Associated Estates (NYSE:AEC) Avalonbay (NYSE:AVB), Essex Property (NYSE:ESS), Home Properties (NYSE:HME), Sovran (NYSE:SSS), U-Store-It Trust (NYSE:YSI) Top FBR Picks in Sector
Commenting on commercial real estate, FBR Capital give its top picks and those they believe will lag going into 2011, their top picks include Associated Estates Realty (NYSE:AEC) Avalonbay Communities (NYSE:AVB), Essex Property Trust (NYSE:ESS), Home Properties (NYSE:HME), Sovran Self Storage (NYSE:SSS), and U-Store-It Trust (NYSE:YSI).
FBR gave its reasoning, saying, "Commercial real estate looks to start 2011 in a curious place: pricing is robust in both private and public markets, investor appetite for yield continues unabated, and the cost to do business is at historic lows; just below the surface, however, fundamental recovery is ephemeral, at best - tainting outward market exuberance with an undercurrent of worry. As we start the year, we maintain positive views of most segments within our coverage universe. We believe that once again the single biggest risk lies within the credit markets, as an unsustainably low rate environment props prices, earnings, and hopes. That said, we continue to underwrite a low rate environment in the near term, given the stubbornness of the current economic malaise and reactionary monetary policy. We expect investors will continue to look a blind eye at this risk given the hunger for yield, which is especially beneficial to the finance and mortgage names."
"In this context, our top picks are generally focused on earnings growth, attractive (safe, in our view) yield, and pockets of fundamental recovery. We expect most of the group to remain in an expansionary period. Cap rate compression is likely to continue at the “B/C” asset quality level, while the “A” quality assets more or less stabilize. Along these lines, signs of further market bifurcation are likely in some sectors. We expect fundamental improvement to continue overall, with outright inflection in the short lease arena (lodging, storage, apartments), while longer lease recovery lags (office, industrial, retail)."
"Apartment and self storage. We maintain a positive view of the trajectory of multifamily and self storage fundamentals; however, we do remain cautious on the basis of valuations, given pricing today that is being propped by government-sponsored financing and aggressive core revenue performance expectations. We expect the short-lease REITs to remain in an expansionary period so long as access to low-cost capital remains, while operations continue to improve steadily. Overall, we expect aggregate returns for the multifamily stocks to be in line with the RMZ (+11% for the year). Our top picks within the sector include Associated Estates Realty,Avalonbay Communities, Essex Property Trust, Home Properties, Sovran Self Storage, and U-Store-It Trust; we expect Camden Property Trust (NYSE:CPT), Equity Residential (NYSE:EQR), Mid-America Apartment Communities (NYSE:MAA), and Public Storage (NYSE:PSA) to lag."
Associated Estates closed Monday at $15.22, down $0.15, or 0.98 percent. Avalonbay closed at $112.17, down $0.95, or 0.84 percent. Essex Property ended the day at $113.20, up $0.47, or 0.42 percent. Home Properties was at $54.77, up $0.07, or 0.13 percent.
U-Store-It Trust closed at $9, up $0.21, or 2.39 percent.
FBR gave its reasoning, saying, "Commercial real estate looks to start 2011 in a curious place: pricing is robust in both private and public markets, investor appetite for yield continues unabated, and the cost to do business is at historic lows; just below the surface, however, fundamental recovery is ephemeral, at best - tainting outward market exuberance with an undercurrent of worry. As we start the year, we maintain positive views of most segments within our coverage universe. We believe that once again the single biggest risk lies within the credit markets, as an unsustainably low rate environment props prices, earnings, and hopes. That said, we continue to underwrite a low rate environment in the near term, given the stubbornness of the current economic malaise and reactionary monetary policy. We expect investors will continue to look a blind eye at this risk given the hunger for yield, which is especially beneficial to the finance and mortgage names."
"In this context, our top picks are generally focused on earnings growth, attractive (safe, in our view) yield, and pockets of fundamental recovery. We expect most of the group to remain in an expansionary period. Cap rate compression is likely to continue at the “B/C” asset quality level, while the “A” quality assets more or less stabilize. Along these lines, signs of further market bifurcation are likely in some sectors. We expect fundamental improvement to continue overall, with outright inflection in the short lease arena (lodging, storage, apartments), while longer lease recovery lags (office, industrial, retail)."
"Apartment and self storage. We maintain a positive view of the trajectory of multifamily and self storage fundamentals; however, we do remain cautious on the basis of valuations, given pricing today that is being propped by government-sponsored financing and aggressive core revenue performance expectations. We expect the short-lease REITs to remain in an expansionary period so long as access to low-cost capital remains, while operations continue to improve steadily. Overall, we expect aggregate returns for the multifamily stocks to be in line with the RMZ (+11% for the year). Our top picks within the sector include Associated Estates Realty,Avalonbay Communities, Essex Property Trust, Home Properties, Sovran Self Storage, and U-Store-It Trust; we expect Camden Property Trust (NYSE:CPT), Equity Residential (NYSE:EQR), Mid-America Apartment Communities (NYSE:MAA), and Public Storage (NYSE:PSA) to lag."
Associated Estates closed Monday at $15.22, down $0.15, or 0.98 percent. Avalonbay closed at $112.17, down $0.95, or 0.84 percent. Essex Property ended the day at $113.20, up $0.47, or 0.42 percent. Home Properties was at $54.77, up $0.07, or 0.13 percent.
U-Store-It Trust closed at $9, up $0.21, or 2.39 percent.
Thursday, December 2, 2010
Sovran (NYSE:SSS).U-Store-It (NYSE:YSI), FBR's Top Choices in Self Storage REITs
Sovran Self Storage (NYSE:SSS) and U-Store-It Trust (NYSE:YSI) are the top picks of FBR Capital in the Real Estate/Self Storage REITs sector.
FBR said, "Management representatives from Sovran Self Storage (NYSE:SSS)(Outperform-rated) and U-Store-It Trust (NYSE:YSI)(Outperform) presented at the 2010 FBR Capital Markets Fall Investor Conference, held yesterday in New York City. While the message was not that different from the one we heard at NAREIT just two weeks ago, it seemed that the themes appeared somewhat more crystallized. We touch on a few in the text that follows. We continue to like the storage sector given (1) cash flow resilience, (2) recovery upside (aka, short lease cash flow elasticity), (3) simple fixed cost structures, (4) better earnings quality, (5) exemplary scales of economy, and finally (6) attractive relative pricing. We estimate that the group trades with an unweighted implied cap rate of 7.2%, versus 6.7% for REITs overall. On the basis of AFFO multiples, the group trades at 16.4x, versus 17.9x for REITs overall. Our collective return expectation for the group is 21.0%, versus 11.9% for REITs overall (based on our current RMZ target of 818, established on November 12, 2010)."
"Our top picks in the self storage space are SSS and YSI; we maintain Extra Space Storage (NYSE:EXR) at Market Perform and Public Storage (NYSE:PSA) at Underperform."
Sovran closed Wednesday at $36.41, gaining $0.38, or 1.05 percent. U-Store-It ended the session at $8.38, up $0.11, or 1.33 percent. Extra Space closed at $16.36, rising by $0.34, or 2.12 percent. Public Storage was at $98.21, soaring $1.61, or 1.67 percent.
FBR said, "Management representatives from Sovran Self Storage (NYSE:SSS)(Outperform-rated) and U-Store-It Trust (NYSE:YSI)(Outperform) presented at the 2010 FBR Capital Markets Fall Investor Conference, held yesterday in New York City. While the message was not that different from the one we heard at NAREIT just two weeks ago, it seemed that the themes appeared somewhat more crystallized. We touch on a few in the text that follows. We continue to like the storage sector given (1) cash flow resilience, (2) recovery upside (aka, short lease cash flow elasticity), (3) simple fixed cost structures, (4) better earnings quality, (5) exemplary scales of economy, and finally (6) attractive relative pricing. We estimate that the group trades with an unweighted implied cap rate of 7.2%, versus 6.7% for REITs overall. On the basis of AFFO multiples, the group trades at 16.4x, versus 17.9x for REITs overall. Our collective return expectation for the group is 21.0%, versus 11.9% for REITs overall (based on our current RMZ target of 818, established on November 12, 2010)."
"Our top picks in the self storage space are SSS and YSI; we maintain Extra Space Storage (NYSE:EXR) at Market Perform and Public Storage (NYSE:PSA) at Underperform."
Sovran closed Wednesday at $36.41, gaining $0.38, or 1.05 percent. U-Store-It ended the session at $8.38, up $0.11, or 1.33 percent. Extra Space closed at $16.36, rising by $0.34, or 2.12 percent. Public Storage was at $98.21, soaring $1.61, or 1.67 percent.
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