Latest news with #FFO
Yahoo
14 hours ago
- Business
- Yahoo
Welltower Stock Gains 24.1% in Six Months: Will it Continue to Rise?
Shares of Welltower WELL have gained 24.1% in the past six months, outperforming the industry's upside of 5.7%. Welltower boasts a well-diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. Given an aging population and an expected rise in senior citizens' healthcare expenditure, the company's senior housing operating (SHO) segment is well-poised to benefit from this positive trend. The outpatient medical (OM) portfolio is expected to benefit from favorable outpatient visit trends in the near term. Analysts seem positive on this healthcare REIT, currently carrying a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been revised three cents northward to $5.02 over the past month. Image Source: Zacks Investment Research Let us decipher the possible factors behind the surge in the stock price. The senior citizens' population is expected to rise in the years ahead. As a result, the national healthcare expenditure by senior citizens, who constitute a major customer base of healthcare services and incur higher healthcare expenditures than the average population, is likely to increase in the upcoming period. Muted new supply has also been a tailwind for this industry. Capitalizing on these positive aspects, WELL's SHO portfolio is well-prepared for compelling multiyear revenue growth. For 2025, management anticipates the same-store SHO net operating income to grow within 16.5-21.5%. Historically, there has been a favorable outpatient visit trend compared with inpatient admissions. Banking on this, the company is optimizing its OM portfolio, growing relationships with health system partners and deploying capital in strategic acquisitions. Given the favorable secular trends and growing need for value-based care, the company's efforts to strengthen its OM footprint will boost long-term growth. Welltower has been actively banking on its growth opportunities through acquisitions. In March 2025, Welltower announced that it is under contract to acquire the Amica Senior Lifestyles portfolio from Ontario Teachers' Pension Plan for C$4.6 billion. The deal, subject to customary regulatory approvals, is expected to close in late 2025 or early 2026. The company has also been disposing of assets simultaneously. In the first quarter of 2025, Welltower completed pro rata property dispositions of $381 million and loan repayments of $123 million. Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. As of March 31, 2025, it had $8.6 billion of available liquidity, including $3.6 billion of cash & restricted cash and full capacity under its $5 billion line of credit. As of March 31, 2025, the net debt to adjusted EBITDA was 3.33X, improving from 4.03X year over year. Moreover, Welltower's debt maturities are well-laddered, with a weighted average maturity of 5.8 years, thereby enhancing its financial flexibility. With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term. A competitive landscape in the senior housing market and tenant concentration in its triple-net portfolio are likely to weigh on Welltower. Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI's 2025 FFO per share has moved one cent northward to $2.34 over the past two months. The Zacks Consensus Estimate for MPW's 2025 FFO per share has moved one cent northward to 57 cents over the past month. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report Welltower Inc. (WELL) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Zawya
2 days ago
- Business
- Zawya
South Africa: From local to international, Vukile's impressive 2025 earnings leap
Vukile Property Fund has emerged from a transformative year with more than 60% of its income now derived offshore, a result of bold expansion into Portugal and strategic capital rotation in Spain — moves that have cemented its presence in two of Europe's most resilient consumer economies. Backed by operational excellence and a clear capital strategy, the group delivered strong financials for the year ended 31 March 2025. Laurence Rapp, chief executive officer of Vukile Property Fund, said he was pleased with the results in what he described as "a transformative year, distinguished by accretive strategic growth and capital rotation". "This outstanding performance validates Vukile's strategy, expands its earnings base and positions the business for compounding future growth,' he said. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations (FFO) per share and increased its dividend per share (DPS) by 6%. This mainly due to its superior dealmaking, ongoing operational excellence, and decisive and disciplined capital deployment. Furthermore, it announced upgraded FY26 guidance, forecasting growth of at least 8% in both FFO per share and DPS. It's total property assets now exceed R50bn, reflecting an ambitious yet tightly focused investment strategy. Iberian expansion accelerates During the year, Vukile grasped a golden window of opportunity that expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe's most resilient consumer economies. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore. Vukile entered Portugal during the year through its 99.6% held Spanish subsidiary Castellana Properties. The fully-funded multi-asset entry capitalises on Portugal's strong economic growth and fragmented retail property sector that is ripe for consolidation, mirroring opportunities seized in Spain. Continuing its creative dealmaking, in Spain Vukile exited its investment in Lar España with a capital profit of €82m, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8% thereby enhancing sustainable earnings. Retail portfolio resilience Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal. 'In South Africa, Vukile's robust operating platform yet again delivered outstanding results,' notes Rapp. Valued at R16.7bn, Vukile's defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remain exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%. Growth, efficiency, sustainability The total portfolio recorded trading density growth of 5.2% - with its township and rural portfolio outperforming at 6.7% - driven by Vukile's shopper-first approach, which continues to boost footfall and sales. The portfolio's cost-to-income ratio was 15.3% - its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains. Vukile's solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. Over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio's energy needs. Vukile has identified a further 10.6MWp of solar projects for FY26 and is finalising the agreements for two wheeling projects totalling 2MWp. Adding value to its South African portfolio through acquisitions and developments, Vukile's R113m redevelopment of Mall of Mthatha (formerly BT Ngebs), in which Vukile acquired a 50% stake in May 2024, has delivered strong early performance, with the vacancy rate dropping from 16% when acquired to just 2%. The highly accretive project is set for completion in September 2025. The comprehensive R141m Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security. Vukile's well-established investment in Spain, together with its new investment in Portugal has clearly cemented Castellana's position as a market leader, capitalising on the advantages of the region's status as a European growth powerhouse. The Economist ranked Spain as Europe's top-performing economy in 2024, with GDP growth of 3.2% and forecasts of 2.3% in 2025. The country's economic growth is fuelled by strong household spending. Disposable income rose by 8.7%, supported by higher salaries, employment and savings levels. Additionally, tourism hit a record €126bn with 94 million visitors. Portugal's economy outperformed expectations with 1.9% growth in 2024, driven mainly by household consumption, with record-high employment levels, real wages increasing and high disposable income. Private consumption rose 3.2% in 2024. Growth is forecast at 2.3% in 2025. Like Spain, Portugal is benefiting from easing inflation, projected to fall to 2.3% in 2025. Castellana's R32.9bn, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%. It achieved high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years. Excellent trading metrics featured across the portfolio, with footfall up 2.4% and sales increasing by 4.3%. 'Castellana's on-the-ground presence and expertise has added substantial value to the Iberian portfolio. This year has been one of rapid growth in the region, and our priority is to crystalise potential in our newly acquired assets and deepen value within our existing footprint.' says Rapp. Strength, stability, strategy Vukile's balance sheet remains exceptionally strong, with a stable LTV of 40.95% and an increased ICR of 2.9-times. The REIT enters FY26 with a well-hedged balance sheet and minimal debt maturities of less than 2% of group debt in FY26, as well as a very healthy liquidity position, with cash and undrawn facilities of R4.6bn. Vukile has an AA(ZA) corporate rating reaffirmed by GCR with a positive outlook. Fitch has awarded Castellana an international investment-grade credit rating of BBB- also with a positive outlook. Over the year, Vukile increased its green and sustainability-link debt by 69% from R1.3bn to R2.2bn, aligning its funding strategy with its continued commitment to ESG goals. Rapp concludes, 'Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management. "It is well placed to deliver sustainable real growth by maintaining operational excellence, advancing value-added projects within existing portfolios and pursuing further opportunities in our core markets. We are committed to our proven scalable consumer-led model to create value for all our stakeholders.' All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
02-06-2025
- Business
- Yahoo
Globe Trade Centre SA (FRA:G91) Q1 2025 Earnings Call Highlights: Revenue Growth and Strategic ...
Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Globe Trade Centre SA (FRA:G91) reported a 9% increase in combined revenues for the CE and German residential portfolio. The company improved its occupancy rate by 2 percentage points in the first quarter. Significant disposals added approximately 88 million to the company's cash position, demonstrating the high quality of its asset base. The portfolio is well-diversified across sectors and geographies, with 51% in offices, 30% in retail, and 19% in residential properties. The company has strong relationships with banks, which aids in refinancing efforts and managing upcoming maturities. FFO1 declined to around 12 million due to increased interest costs from new funding. The company faced increased finance costs due to additional senior facilities in Bulgaria and Germany. There was a loss from the revaluation of assets due to capitalized expenditures on completed properties. The weighted average interest rate increased to 3.63%, impacting financing costs. Administrative expenses increased, partly due to the integration of the German portfolio and additional employees. Warning! GuruFocus has detected 8 Warning Signs with FRA:G91. Q: Could you elaborate on the short-term blocked deposits and what drove their increase in the first quarter? A: The increase was due to a voluntary dedication of 45 million for deleveraging the company. We will decide how to utilize these funds, potentially for repaying bank loans or other facilities. - Unidentified_2 Q: Is the 45 million dedicated for deleveraging restricted to specific uses, such as bond repayment? A: The funds could potentially be used for bond repayment or senior facilities. We have not concluded on this yet, but it will help manage credit metrics. - Unidentified_2 Q: Can you provide details on the 37-38 million CapEx spent on investment property in Q1? A: The spending was on developments, fit-outs, and building maintenance. Approximately 20 million was spent on developments, including renovations, with the remainder on fit-outs and improvements. Most of it was financed through cash. - Unidentified_2 Q: What are the expected major cash outflows in the coming quarters? A: Significant cash outflows include interest costs and 42 million for an option to buy 10% of the German portfolio. We aim to finance these from external sources. - Unidentified_1 Q: Could you clarify the impact of the German portfolio on financials, particularly the increase in interest costs and admin expenses? A: The German portfolio's initial lower occupancy contributed to lower gross margin, but improvements are underway. Admin costs increased due to additional employees in Germany. Other finance expenses were largely one-off items. - Unidentified_2 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Northview Residential REIT insiders buy as funds from operations grows
This week, Northview Residential REIT ( traded into positive territory for the year as investor sentiment towards the REIT group improved. In Q1, Northview's non-GAAP funds from operations (FFO) improved 26.7 per cent to almost $16.6-million. The FFO payout ratio per basic unit fell to 59.4 per cent from 75.2 per cent in Q1 2024. The most recent insider public market purchases took place between May 13-26 when independent trustee Harry Rosenbaum bought 4,000 Class A Units in the public market at an average price of $15.38. Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. For more background on insider reporting in Canada, visit the FAQ section at Securities referenced in this profile may have already appeared in recent reports distributed to INK subscribers. INK staff may also hold a position in profiled securities. Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.
Yahoo
17-05-2025
- Business
- Yahoo
Federal Realty Beats Q1 FFO & Revenue Estimates, Raises 2025 View
Federal Realty Investment Trust's FRT first-quarter 2025 funds from operations (FFO) per share of $1.70 surpassed the Zacks Consensus Estimate by a cent. This also marked a rise of 3.7% from the year-ago quarter's tally of $1.64. Reflecting positive sentiments, shares were up more than 1% in pre-market reflect healthy leasing activity and occupancy levels at its properties. Following better-than-expected first results, Federal Realty has raised its 2025 FFO outlook revenues of $309.2 million exceeded the consensus mark of $306.9 million and improved 6.1% from the year-ago quarter's tally. Federal Realty generated 2.8% comparable property operating income (POI), excluding lease termination fees and prior-period rents collected. Per Donald C. Wood, chief executive officer, "We started the year with strong operating results and are encouraged to see continuing elevated foot traffic across our properties.' In terms of leasing, during the reported quarter, Federal Realty signed 91 leases for 429,865 square feet of retail space. On a comparable space basis, the company signed 87 leases for 368,759 square feet of space at an average rent of $40.63 per square foot. This denotes cash-basis rollover growth of 6% and 17% on a straight-line basis. On the operational front, the comparable portfolio occupancy rate was up 180 basis points (bps) year over year to 93.6% as of March 31, 2025. The portfolio was 95.9% leased as of the same date, reflecting an increase of 160 bps year over year. It was ahead of our estimate of 95.7%. Moreover, Federal Realty's residential properties were 94.9% leased as of the same robust leasing activity for small shops resulted in a quarter-ending lease rate of 93.5%, marking an increase of 210 bps year over year. The anchor tenant leased rate was 96.8%, up 100 bps year over Realty extended its $600 million unsecured term loan maturity date to March 2028, plus two one-year extension options, and increased the potential size to $750 million. It ended the quarter with nearly $1.5 billion of total liquidity. It exited the first quarter of 2025 with cash and cash equivalents of $109.2 million, down from $123.4 million recorded at the end of 2024. Federal Realty closed on the prior announced $123.5 million acquisition of Del Monte Shopping Center in Monterey, CA, on Feb. 25, 2025. For 2025, Federal Realty expects its FFO per share in the range of $7.11-$7.23, up from $7.10-$7.22 guided earlier. This represents about 6% growth at the increased midpoint of $7.17. The Zacks Consensus Estimate of $7.16 also lies within this retail REIT's full-year guidance is backed by assumptions for comparable properties growth of 3%-4%, incremental redevelopment/expansion POI of $3-$5 million, disposed properties 2024 POI of $5 million and lease termination fees of $4-$5 million. The company anticipates occupancy to remain stable in the second quarter, with growth resuming in the second half of the year, reaching the mid-94% range on a comparable basis by the end of 2025. Concurrent with the first-quarter earnings release, Federal Realty announced a regular quarterly cash dividend of $1.10 per share, indicating an annual rate of $4.40 per share. The dividend will be paid out on July 15 to shareholders of record as of July 1, Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Federal Realty Investment Trust price-consensus-eps-surprise-chart | Federal Realty Investment Trust Quote We now look forward to the earnings release of other retail REITs — Simon Property Group SPG and The Macerich Company MAC — which are slated to report on May Zacks Consensus Estimate for Simon Property's first-quarter 2025 FFO per share has been revised a cent upward over the past month to $2.91 on revenues of $1.48 billion. SPG currently has a Zacks Rank #3. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The Zacks Consensus Estimate for Macerich's first-quarter 2025 FFO per share stands at 31 cents, indicating no increase year over year, on revenues of $218.9 million. MAC currently has a Zacks Rank #3. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Macerich Company (The) (MAC) : Free Stock Analysis Report Federal Realty Investment Trust (FRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
