Market Overview

Mizuho Initiates Coverage On Four REITs


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 third quarter 2014 . Due to the better than expected earnings in FY14, 2015 guidance has become more predictable.

In addition, second quarter 2014 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.

Latest Ratings for CPT

Nov 2019Initiates Coverage OnBuy
Nov 2019MaintainsNeutral
Nov 2019DowngradesBuyNeutral

View More Analyst Ratings for CPT
View the Latest Analyst Ratings

Posted-In: mizuho Richard AndersonAnalyst Color REIT Initiation Analyst Ratings


Related Articles (CPT + HME)

View Comments and Join the Discussion!

Latest Ratings

DEBank of AmericaDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Analysts At BTIG Confident In Endologix Following Meeting With Top Executives

Burger King Offers Whopper Pay Day To Investors Monday