Shopping Center REITs Headed Down (11/12)
Nov 12, 2008 1:25 PM
Equity One Inc., a Miami Beach, Fla.-based REIT, missed consensus estimates by $0.43 per share posting FFO of $0.13 per share. It was due to a non-cash impairment charge of $32.7 million. The REIT’s same-store NOI remained flat, while occupancy at its 17.1-million-square-foot portfolio declined 110 basis points to 92.3 percent, the lowest level in more than four years. Given the challenging environment, Equity One also lowered its FFO guidance for the year, to between $1.34 per share and $1.37 per share, from $1.36 per share to $1.40 per share. On the positive side, Equity One’s management has made efforts to strengthen its balance sheet, said Rich Moore, an analyst with RBC Capital Markets. More than 80 percent of its debt does not mature before 2011.
Developers Diversified Realty missed estimates by $0.11 per share. It reported FFO per share of $0.83, an increase of 3.8 percent over last year. The Beachwood, Ohio-based REIT, which operates a 163-million-square-foot portfolio, reported a same-store NOI increase of 1.8 percent, but its occupancy declined 130 basis points, to 94.5 percent. Developers Diversified reduced its guidance for 2008 to between $3.22 per share and $3.28 per share from $3.95 per share to $4.05 per share.
Houston-based Weingarten Realty missed consensus estimates by $0.02 per share. The firm’s FFO declined 6.3 percent in the third quarter from last year, down to $0.74 per share. Same-store NOI at its 42-million-square-foot portfolio dropped 0.6 percent. As a result, Weingarten lowered its 2008 guidance to between $3.00 per share and $3.10 per share. Previously it offered guidance of $3.21 per share to $3.27 per share.
Both Cedar Shopping Centers and Inland Real Estate Corp. missed consensus estimates by $0.01 per share. Port Washington, N.Y.-based Cedar reported flat FFO growth in the third quarter at $0.31 per share compared to last year and its same-store NOI decreased 1.4 percent during the quarter. Inland reported an FFO increase of 2.9 percent, to $0.36 per share. The Oakbrook, Ill.-based REIT’s same-store NOI was flat compared to the same period a year ago, but its 71-million-square-foot portfolio’s occupancy increased 100 basis points, to 94.1 percent. The company issued a lower FFO guidance for 2008, in the range of $1.43 and $1.45 per share.
Kimco Realty Corp., a New Hyde Park, N.Y.-based REIT with 120 million square feet, met third quarter expectations, with FFO of $0.68 per share, representing growth of 19.3 percent over last year. Kimco’s NOI rose 2.6 percent but its portfolio’s occupancy declined 90 basis points, to 95.2 percent. Due to the continuing problems in the credit markets, Kimco lowered its FFO guidance for 2008, to between $2.20 per share and $2.45 per share from $2.70 per share to $2.78 per share.
--Elaine MisonzhnikAcceptable Use Policy blog comments powered by Disqus
