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New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
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REITs Are Not Bonds
While noting that potential interest rate headwinds and adverse capital market trends could pose a bearish threat to the forecast; Citi also pointed out that six out of past eight instances when the 10-Yr Treasury increased by 100 bps or more, REIT shares actually responded with positive results.This underscores how REITs can perform well in rising rate environment, (unlike static return bonds), by realizing FFO growth through operations, refinancing, and accretive acquisitions.Citi Look Back At First 6 Months - 2015
The chart below highlights the economic events most closely tied to REIT performance from January 1 through the end of June 2015.- Overweight: Class-A malls, urban office, apartments, lodging, student housing and industrial.
- Market Weight: Diversified, lab office, shopping centers.
- Underweight: Manufactured homes, storage, data centers, healthcare, net lease and specialty. Citi - 3 Top Picks Upgraded To BuyOn July 1, Citi Research also released a research note upgrading six REITs from Neutral to Buy, for a total of 16 Buy-rated REITs under coverage. Based upon highest expected total return for the next 12 months, here are the top three Citi REIT upgrades:
- Kimco Realty (NYSE: KIM) $9.6 billion cap, 4.14 percent yield, (shopping center).
- Acadia Realty Trust (NYSE: AKR) $2.1 billion cap, 3.15 percent yield, (shopping center, street retail).
- EastGroup Properties (NYSE: EGP) $1.9 billion cap, 4 percent yield, (industrial/flex space).
- The Kimco target price of $27 represents a ~20 percent upside from its July 1, close of $22.50 per share.
- Citi noted that KIM had been trading at an 11 percent discount to its NAV estimate; and views the December investor day and passing of the baton to new CEO Connor Flynn as potential catalysts for the shares.
- The Acadia target price of $34 represents a ~15.75 percent upside from its July 1, close of $29.37 per share.
- Citi views AKR trading 5 percent below NAV to be a rare opportunity to buy AKR shares which normally trade at an 11 percent NAV premium.
- Citi noted Acadia's strong balance sheet, its ~50 percent urban and street retail portfolio, current development pipeline and projected managed fund promotes as rationale.
- The EastGroup target price of $65 represents a ~15.3 percent upside from its July 1, close of $56.37 per share.
- Citi noted that EastGroup has been beaten up over large, (~20 percent), Houston portfolio exposure and CEO transition; and is currently trading at a 10 percent discount to NAV.
- EastGroup's strong balance sheet, potential $500 million development pipeline, and Sunbelt portfolio of assets all support Citi's higher-than-consensus Buy rating.
Tale Of The Tape - Past 5 Years
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.