4 REITs Hit By Analyst Downgrades This Week
Portfolio Pulse from Ethan Roberts
Four REITs, Hudson Pacific Properties Inc. (HPP), Healthcare Realty Trust Inc. (HR), Digital Realty Trust Inc. (DLR), and WP Carey Inc. (WPC), have been downgraded by analysts following disappointing fourth-quarter operating results and/or 2024 forward guidance. These downgrades have led to significant share price losses for each REIT. The article also highlights opportunities in private market real estate investments as an alternative to publicly traded REITs.
February 22, 2024 | 10:30 pm
News sentiment analysis
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NEGATIVE IMPACT
Digital Realty Trust Inc. experienced an 8% stock price drop after missing FFO estimates and receiving a downgrade from Scotiabank, despite beating revenue estimates for Q4.
Although DLR beat revenue estimates, the miss in FFO estimates and subsequent downgrade by Scotiabank have led to a negative perception among investors, causing a short-term decline in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Hudson Pacific Properties Inc. reported lower-than-expected Q4 FFO and revenue, leading to a downgrade by Wedbush Securities and a share price drop from $8.17 to $7.25.
The downgrade by Wedbush Securities and the significant miss in both FFO and revenue for Q4 directly impact investor confidence and stock valuation, leading to a negative short-term price direction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Healthcare Realty Trust Inc. saw its shares fall from $15.59 to $14.36 after reporting in-line FFO but missing revenue estimates and providing weaker 2024 FFO guidance, leading to a downgrade by Wedbush.
The downgrade and the miss in revenue estimates, coupled with disappointing 2024 FFO guidance, have negatively impacted investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
WP Carey Inc. saw its share price fall significantly after missing AFFO and revenue estimates, leading to a downgrade by Raymond James. The stock has struggled since announcing a dividend cut in September.
The miss in AFFO and revenue estimates, combined with the negative sentiment from a previous dividend cut, have led to a downgrade by Raymond James and a significant short-term stock price decline.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 100