Market Overview

Oppenheimer Defends REITs Despite Scary Selloff

Benzinga's Top Downgrades
Mid-Afternoon Market Update: Dow Surges Over 200 Points; Geron Shares Tumble
Related APTS
Jim Cramer Shares His Thoughts On Johnson & Johnson, Nike And More
Earnings Outlook For Preferred Apartment

In a new report, Oppenheimer analyst Steve Manaker discusses the recent REIT sell-off and whether or not it is a buying opportunity for investors. REIT investors have grown increasingly concerned about the impact that cheap oil, China, forex headwinds and widening credit spreads will have on the U.S. real estate market.

“At this point, some levered buyers are having a harder time accessing capital, but overall demand for assets still seems strong,” Manaker explains.

Related Link: How Has The Market Selloff Changed The Fundamentals Of Tech Giants

He predicts that growth will be the key differentiator among REITs in a slow growth and low interest rate environment.

For now, Oppenheimer prefers REITS with exposure to non-coastal regions, industrial plays and small-cap names. Manaker mentioned the following REITs as top picks:

  • Highwoods Properties Inc (NYSE: HIW)
  • Mid-American Apartment Communities Inc (NYSE: MAA)
  • Realty Income Corp (NYSE: O)
  • National Retail Properties, Inc. (NYSE: NNN)
  • Taubman Centers, Inc. (NYSE: TCO)
  • General Growth Properties Inc (NYSE: GGP)
  • Healthcare Trust Of America Inc (NYSE: HTA)
  • Prologis Inc (NYSE: PLD)
  • Duke Realty Corp (NYSE: DRE)
  • American Farmland Co (NYSE: AFCO)
  • Preferred Apartment Communities Inc. (NYSE: APTS)
  • Bluerock Residential Growth REIT Inc (NYSE: BRG)
  • Community Healthcare Trust Inc (NYSE: CHCT)
  • City Office REIT Inc (NYSE: CIO)
  • Gladstone Land Corp (NASDAQ: LAND)

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for AFCO

Sep 2016Deutsche BankDowngradesBuyHold
Sep 2016Janney CapitalDowngradesBuyNeutral
May 2016RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for AFCO
View the Latest Analyst Ratings

Posted-In: Oppenheimer Steve ManakerAnalyst Color REIT Small Cap Analysis Analyst Ratings Trading Ideas Real Estate


Related Articles (APTS + AFCO)

View Comments and Join the Discussion!

Hess Shares Higher Following Goldman Upgrade, Addition To 'Conviction Buy' List

Kirkpatrick: Tesla Motors Inc's Real 'Challenge' May Be Raising Capital