REITs - Takeaways from NAREIT Day Two

研报英文原文证据摘录

REITs - Takeaways from NAREIT Day Two

Truist Securities

Office (CDP, HIW): CDP’s leasing activity appears strong and it is on pace to achieve the 82.5% midpoint of renewal rate guidance this

year. The company has been producing consistent earnings growth for the past several years and management is highly encouraged by

increases in defense spending, including large sums for the Golden Dome project (positively impacting the Huntsville portfolio), as well

as for cyber security and intelligence (positively impacting Fort Meade and other locations). The balance sheet appears well positioned,

as CDP’s strategy and portfolio support relatively tight credit spreads, and the next bond maturity is not until 2028.

Similar to commentary from other office REITs, HIW believes it is at a point where earnings growth should begin to accelerate, supported

by material leases signed but not yet commenced. It has a steadier growth track record than most office peers, did not cut its dividend

during the COVID downturn and the recent Nashville disposition should help move financial leverage back toward more typical historical

levels. We have remained relatively cautious on office REITs overall (PDM remains our only Buy among nine covered names), but the

stocks have begun to rebound a little earlier that we expected and we think HIW is one of the better values in the group.

Yesterday’s note included takeaways from our meetings with BDN, DEA and PDM, as well as BXP’s New York regional update.

Retail (BRX, CURB, FRT, KIM). No retail REIT (or any REIT) we met with suggested it is seeing any signs of a stressed consumer or

cautious retailer outlook, despite softer macroeconomic indicators such as consumer sentiment, elevated inflation, higher interest rates,

etc.