Mizuho Initiates Coverage On Four REITs


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


In a report released Monday, Mizuho analysts reported on the growth and future outlook of US Real Estate Investment Trusts (REITs) focused on multi-family households.

Analysts see a resurgence in multi-family operating results, citing that most of the companies reported a slight beat in earnings in 3Q14 . Due to the better than expected earnings in FY14, 2015 guidance has become more predictable.

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In addition, 2Q14 national multifamily vacancy rate of 4.1 percent remains well below the 5.4 percent average. With vacancy rates lowering, REITs are positioned well to capitalize on the growing demand for housing. Mizuho Analysts see significant growth in apartment housing.for FY15.

Analysts at Mizuho initiated coverage on four Real Estate Investment Trusts (REITs):

  • Camden Property (NYSE: CPT) - Buy, $83 price target - Anderson views CPT as strong capital allocators with a balanced approach. CPT taps into many investing opportunities, with no one aspect being an overwhelming factor. CPT owns a multifamily portfolio totaling nearly 60,000 units stretching from DC to Southern California. CPT produced same store NOI (net operating income) growth of 5.7 percent year-to-date.
  • Mid-America Apts. (NYSE: MAA) - Buy, $80 price target:

Analysts at Mizuho, feel the stock trades at a 25% discount on an AFFO (adjusted funds from operations) multiple basis. After the decrease in stock price following negative guidance, analysts at the firm anticipate a quick recovery.

  • Home Properties (NYSE: HME) - Neutral, $67 price target:

Unique strategy provides incremental growth from redeveloping. The types of assets HME owns tend to have lower turnover rate relative to it peers, in theory making it a lower risk operating model.

  • UDR Inc. (NYSE: UDR) - Neutral, $31 price target:

Produced solid results, but may be susceptible to sideways movement in result of deceleration in revenue growth during third quarter 2014 and fourth quarter 2014.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: UpgradesAnalyst RatingsFinancialsmizuhoResidential REIT'sRichard Anderson