Earnings season is back
REIT earnings season is a bit later than that of the rest of the market so we have yet to get into the thick of it, but some companies have reported giving a glimpse of the fundamental outlook for 2CHYP.
Within our portfolio, Brandywine released earnings and while I would like to talk up our holdings, the results were rather tepid. There was nothing in the report that was particularly concerning; rent rolls were positive and the developments are leasing up, it was just a bit weaker than I had anticipated. As more office REITs report we will get increased clarity, but I got the sense that the weakness came from office macro factors rather than BDN specifically.
Industrial is the opposite story with Prologis reporting wildly bullish results. PLD’s conference call sent the entire sector up significantly and we think the market was correct in this move. Demand for logistics properties came in stronger than expected which reignites our interest in STAG. Although the multiple is higher than we typically invest in, it is cheap for an industrial REIT so it remains the least expensive means to gain exposure to the fundamentals of the sector.
Next week will bring more earnings reports and we will try our best to keep you informed and 2CHYP will be traded in accordance with the fresh fundamental news.
Commentary may contain forward looking statements which are by definition uncertain. We retain no obligation to update or correct forward looking statements should the available information change. Actual results may differ materially from our forecasts or estimations.