Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Zacks
The Zacks Analyst Blog Highlights CBRE, Kimco, American Homes 4 Rent and Vornado
Zacks Equity Research
8 min read

In This Article:

For Immediate Release

Chicago, IL – February 6, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CBRE Group CBRE, Kimco Realty Corp. KIM, American Homes 4 Rent AMH and Vornado Realty Trust VNO.

Here are highlights from Wednesday’s Analyst Blog:

3 REITs Likely to Turn Out Winners This Earnings Season

The fourth-quarter reporting cycle is underway, and investors can be lured by the profits of companies that have already released their quarterly figures. However, rather than adding the stock later to your portfolio, accumulating the ones poised to beat estimates can generate higher gains. This is because an earnings beat usually serves as a catalyst, raising investors’ confidence in the stock and resulting in price appreciation.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

This is likely to be reflected in the earnings releases of Kimco Realty Corp., American Homes 4 Rent and Vornado Realty Trust.

With the Federal Reserve officials keeping the rate steady this time following the FOMC meeting and indicating a more cautious outlook moving forward, investors have been jittery about their investments in the rate-sensitive REITs. This is because REITs are usually preferred in a falling-rate environment because of their debt-dependence nature. Also, REITs are often viewed as bond substitutes due to their consistent and high dividend payouts. So, a rate cut drives investors’ sentiment toward these stocks, while a rising rate environment makes investors worried.

However, despite the rate environment not appearing favorable in the near term, focusing on REITs will be a smart move because with the industry offering the real estate structure for several economic activities, be it real or virtual, there are pockets of strength, even in any challenging environment. Let’s check the industry fundamentals to find sectors showing strengths.

Industry Fundamentals

For example, for REITs dealing with residential real estate, we note that, per RealPage data, the U.S. apartment demand surged to its highest level in almost three years in the fourth quarter of 2024, comfortably surpassing the record-high new supply seen that year. Between October and December 2024, the U.S. apartment market absorbed 230,819 market-rate units, while 155,408 new units were delivered during the same period. Annual supply hit 588,883 units, while demand led to 666,699 units. As demand exceeded supply, U.S. apartment occupancy saw a notable annual increase, reaching 94.8% in December. The annual occupancy change was 0.7%.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories