For Immediate Release
Chicago, IL – Jan 16, 2018 – Today, Zacks Equity Research discusses the Industry: REITs, Part 2, including Ashford Hospitality Prime, Inc. (AHP), LTC Properties Inc. (LTC), Rexford Industrial Realty, Inc. (REXR) and Outfront Media Inc. (OUT).
Industry: REITs, Part 2
Demand for healthcare real estate is expected to increase considerably on favorable demographics. This is because the senior citizen population is growing at a faster rate than other adults calling for a greater healthcare needs. Along with an aging population and cost containment, less expensive delivery settings and new technologies, demand for medical office buildings as well as urgent-care facilities is growing.
Moreover, university-based life science real estate has grabbed attention and health care REITs are making decent investments in this segment. Such investments help to capitalize on growing health-care-driven research and development, supported by top-tier research universities.
Notably, increasing longevity of the aging U.S. population, along with biopharma drug development growth opportunities, have promoted institutional life science and medical-market fundamentals. Further, long-lease terms and top-rated, institutional quality tenants assure steady growth in cash flows for health care landlords.
Besides, the market for seniors’ housing and healthcare real estate is large and fragmented, offering huge scope of consolidation. This provides solid opportunity to the healthcare REITs.
Stocks to Add to Your Portfolio
Specific REITs that we prefer include Ashford Hospitality Prime, Inc., LTC Properties Inc., Rexford Industrial Realty, Inc. and Outfront Media Inc.
Dallas, TX-based Ashford Hospitality Prime is a REIT focused on investing in high RevPAR full-service hotels and resorts located predominantly in domestic and international gateway markets. It has a Zacks Rank #2 (Buy). Moreover, Ashford Hospitality Prime has exceeded the Zacks Consensus Estimate in two out of trailing four quarters, with an average beat of around 3%.
LTC Properties, based in Westlake Village, CA, is a healthcare REIT that focuses on investments in seniors housing and health care properties mainly through sale-leaseback transactions, mortgage financing and structured finance solutions including mezzanine lending. It has a Zacks Rank of 2. Also, the stock has seen the Zacks Consensus Estimate for 2017 being revised upward over the past 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Los Angeles, CA-based Rexford Industrial Realty is focused on acquisition, ownership and operation of industrial properties situated in Southern California infill markets. Rexford has a Zacks Rank of 2. It has a long-term growth rate of 7.7%.
Headquartered in New York, Outfront Media is a leading provider of out-of-home advertising space in key markets throughout the United States and Canada. It has a Zacks Rank of 2 and has exceeded the Zacks Consensus Estimate in two of the trailing four quarters with an average beat of 2.9%.
Check out our latest REIT Industry Outlook here for more on the current state of affairs in this market from an earnings perspective.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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LTC Properties, Inc. (LTC) : Free Stock Analysis Report
OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
Ashford Hospitality Prime, Inc. (AHP) : Free Stock Analysis Report
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