Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  DCT Industrial Trust Inc    DCT

DCT INDUSTRIAL TRUST INC (DCT)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Investors Step Back Into Struggling REITs -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
1
05/16/2018 | 08:48am CEST

By Esther Fung

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (May 16, 2018).

U.S. REITs have been underperformers for the past two years -- but as merger activity increases, some investors are giving them a look.

The FTSE Nareit All Equity REITs index produced a total return of 3.71% in March, compared with a 2.5% decline for the S&P 500 index over the same period. In April, the REIT index's total return of 0.52% outperformed the S&P 500's 0.4%.

Still, despite the recent uptick, the REIT index had a total return of negative 6.2% in the first four months of the year, versus the S&P 500's 0.4% decline.

"The tide is turning very slowly. It's not going to be a sea change," said Jonathan Woloshin, head of Americas equities and real estate at UBS Global Wealth Management's Chief Investment Office.

Commercial real-estate values have been appreciating for eight years, but expectations of a moderate slowdown rather than a hard landing are drawing some investors back, albeit cautiously, analysts said.

Within the different REIT sectors, some have continued to experience stable demand and healthy debt levels against the backdrop of a still-humming economy and job growth.

Going into 2018 there had been a view of decelerating real-estate fundamentals, but the first-quarter earnings came in line or slightly better than expectations, said Thomas Bohjalian, executive vice president at global portfolio manager Cohen & Steers Inc. Among malls and shopping-center REITs, "the bottom didn't fall out as quickly as some investors believed would occur," Mr. Bohjalian said, adding that Cohen & Steers has recently increased its position in some shopping-center REITs.

It is painful to see stock prices going down, but valuations are attractive, said Marc Halle, managing director at PGIM Real Estate, the real-estate investment unit of Prudential Financial Inc. and head of the Global Real Estate Securities business. "REITs are a good indicator of the direction of private market values. But they tend to overdo it on the way up and on the way down."

In particular, investors have taken a shine to the industrial and multifamily sectors, which are enjoying strong demand and tight supply.

In a recent report, Fitch Ratings pointed out that multifamily REITs with access to financing from government-sponsored enterprises Fannie Mae and Freddie Mac would put them on steadier footing than other REITs if the availability of mortgage capital is disrupted.

Another thing working in favor of REITs is a recent increase in merger-and-acquisition activity, which is fueling hopes, especially among impatient investors, of bigger gains via takeouts.

Private-equity giant Blackstone Group LP is buying industrial and office real-estate investment trust Gramercy Property Trust for $4.42 billion in cash, while Prologis Inc. made an $8.4 billion stock-for-stock offer for DCT Industrial Trust Inc., including debt. Both offered roughly a 15% premium.

Lodging REIT Pebblebrook Hotel Trust sweetened its stock-for-stock bid for LaSalle Hotel Properties twice and its final offer in late April implied a 31% premium to LaSalle's closing share price on March 27. LaSalle said it was reviewing the proposal.

"Takeout odds are REIT investors' favorite topics. It's the REIT version of TMZ," said Cedrik Lachance, Green Street Advisor's director of REIT research, referring to the celebrity gossip site. Investors often talk about personalities and mull over the age and career paths of CEOs and board members to speculate if these individuals are partial to a deal, he added.

To be sure, there is some skepticism about how much upside could be gained from any deal activity among retail REITs, especially after a revised offer price from Brookfield Property Group for GGP Inc. was deemed underwhelming among REIT investors. PGIM Real Estate said it reduced its holdings of mall REITs as their share prices gained ground on shareholder activism in the fourth quarter.

Green Street said it had a more tangible approach to address takeout odds based on prevailing share values. Of the 83 REITs it covers, nearly 40% had takeout odds of 10% or greater in the first quarter, up from about 20% of REITs in the previous quarter. Green Street also assigns an estimated takeout price to each REIT on the list, which might not be at a premium to their net asset values.

The top of the list includes a large portion of mall and strip-center REITs such as Taubman Centers Inc., Macerich Co., DDR Corp, Kimco Realty Corp, and Brixmor Property Group Inc. Green Street noted that the companies have been persistently trading at a discount to net asset value for the past two years, making them ripe for acquisition.

Write to Esther Fung at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
BLACKSTONE GROUP LP -0.25% 31.79 Delayed Quote.-2.28%
DJ INDUSTRIAL 0.21% 24886.81 Delayed Quote.1.19%
GRAMERCY PROPERTY TRUST 0.22% 27.53 Delayed Quote.3.04%
NASDAQ 100 0.87% 6953.6307 Delayed Quote.7.35%
NASDAQ COMP. 0.64% 7425.9554 Delayed Quote.6.53%
PROLOGIS INC 1.57% 64.77 Delayed Quote.-1.07%
S&P 500 0.32% 2733.29 Real-time Quote.1.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
1
Latest news on DCT INDUSTRIAL TRUST INC
05/18Monteverde & Associates PC Announces An Investigation Of DCT Industrial Trust..
PR
05/16Investors Step Back Into Struggling REITs -- WSJ
DJ
05/15DCT INDUSTRIAL INVESTOR ALERT BY THE : Kahn Swick & Foti, LLC Investigates Adequ..
BU
05/15Long-Suffering REITs Might Be Turning a Corner At Last
DJ
05/14THE LAW OFFICES OF VINCENT WONG : Reminds Investors of an Investigation into DCT..
BU
05/11DCT INDUSTRIAL TRUST : RM LAW Announces Investigation of DCT Industrial Trust In..
PR
05/08THE LAW OFFICES OF VINCENT WONG : Notifies Investors of an Investigation into DC..
BU
05/07Blackstone Buys Gramercy Property Trust for $4.42 Billion -- Update
DJ
05/04DCT INDUSTRIAL TRUST : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITI..
AQ
05/03DCT® FEATURED ON BISNOW : Why Prologis Acquired DCT For $8B
PU
More news
News from SeekingAlpha
05/23The Next Buyout Target - 8.5% Yield And 30% Upside 
05/18REIT And Homebuilders Sink As Treasury Yields Climb 
05/15INDUSTRIAL REITS : The Strong Get Stronger 
05/14Game Plan For The Week - Cramer's Mad Money (5/11/18) 
05/05Real Estate Rally Continues After Impressive Earnings 
Financials ($)
Sales 2018 444 M
EBIT 2018 142 M
Net income 2018 87,2 M
Debt 2018 1 667 M
Yield 2018 2,23%
P/E ratio 2018 65,56
P/E ratio 2019 69,76
EV / Sales 2018 18,0x
EV / Sales 2019 17,5x
Capitalization 6 350 M
Chart DCT INDUSTRIAL TRUST INC
Duration : Period :
DCT Industrial Trust Inc Technical Analysis Chart | DCT | US2331532042 | 4-Traders
Technical analysis trends DCT INDUSTRIAL TRUST INC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 14
Average target price 64,3 $
Spread / Average Target -1,5%
EPS Revisions
Managers
NameTitle
Philip L. Hawkins President, Chief Executive Officer & Director
Thomas F. August Chairman
Matthew T. Murphy Chief Financial Officer & Treasurer
Thomas G. Wattles Chairman-Emeritus
Tripp H. Hardin Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
DCT INDUSTRIAL TRUST INC11.16%6 350
PROLOGIS INC-1.07%34 005
GOODMAN GROUP7.84%12 337
DUKE REALTY1.25%9 847
GRAMERCY PROPERTY TRUST3.04%4 417
FIRST INDUSTRIAL REALTY TRUST, INC.0.32%3 966