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Retail REITs' Q3 Earnings to Watch on Nov 3: NNN, EPR & More

Zacks Equity Research
Updated

Now we are in the third week of the third-quarter 2016 earnings releases of the real estate investment trust (“REIT”) sector. Last week saw a deluge of earnings results and this week is no exception. All categories of the REITs have reported their results.
 
Some retail REITs which are slated to report their third-quarter 2016 numbers on Nov 3 are National Retail Properties, Inc. NNN, EPR Properties EPR, STORE Capital Corporation STOR and Cedar Realty Trust, Inc. CDR.

Big companies in the retail REIT industry like Simon Property Group, Inc. SPG and Kimco Realty Corporation KIM have already announced their results. Simon Property reported a positive surprise of 0.75% benefitting from growth in operating income and transformative redevelopments. Kimco’s third-quarter adjusted funds from operations (“FFO”) per share came in at 38 cents. The Zacks Consensus Estimate was pegged at 17 cents.

According to a study by the CBRE Group Inc. CBG, during the third quarter, average availability of retail space was 10.4%, down 20 basis points (bps) sequentially and down 50 bps year over year. In fact, per the study, over two thirds of the total 62 markets that were studied witnessed sequential fall in the availability of retail space in the third quarter. However, demand for retail space in the country continues to grow as new construction remains relatively muted and retailers are combining their online and bricks-and-mortar operations. This indicates a continuation of a gradual, five-year recovery in the U.S. retail-property market.

Now let’s take a look at what’s in store for these retail REITs which are slated to report tomorrow.

For doing this, we rely on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.

National Retail Properties invests in single tenant net-leased retail properties throughout the United States. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s 0.00% ESP makes surprise prediction difficult.

NATL RETAIL PPT Price and EPS Surprise

 

NATL RETAIL PPT Price and EPS Surprise | NATL RETAIL PPT Quote

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Kansas City, MO-based EPR Properties invests primarily in Entertainment, Recreation and Education. The company has an Earnings ESP of -2.46% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.

EPR PROPERTIES Price and EPS Surprise

 

EPR PROPERTIES Price and EPS Surprise | EPR PROPERTIES Quote

STORE Capital is a Scottsdale, AZ-based REIT which is engaged in the acquisition, investment and management of single-tenant properties. Our model does not conclusively predict that the company will record a positive surprise. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

STORE CAPITAL Price and EPS Surprise

 

STORE CAPITAL Price and EPS Surprise | STORE CAPITAL Quote

Port Washington, NY-based Cedar Realty Trust is mainly engaged in owning, operating, developing and redeveloping bread and butter supermarket-anchored shopping centers. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s 0.00% ESP makes surprise prediction difficult.

CEDAR SHOPN CTR Price and EPS Surprise

 

CEDAR SHOPN CTR Price and EPS Surprise | CEDAR SHOPN CTR Quote

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CBRE GROUP INC (CBG): Free Stock Analysis Report
 
SIMON PROPERTY (SPG): Free Stock Analysis Report
 
KIMCO REALTY CO (KIM): Free Stock Analysis Report
 
CEDAR SHOPN CTR (CDR): Free Stock Analysis Report
 
NATL RETAIL PPT (NNN): Free Stock Analysis Report
 
EPR PROPERTIES (EPR): Free Stock Analysis Report
 
STORE CAPITAL (STOR): Free Stock Analysis Report
 
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Zacks Investment Research