S&P Global Market Intelligence presents a wrap-up of earnings conference calls April 26 and 27.
Weyerhaeuser expects strong demand for high-quality timberlands
Timberland real estate investment trust Weyerhaeuser Co. expects strong demand for timberlands in 2024, particularly for the higher quality packages.
Weyerhauser President and CEO Devin Stockfish said 2024 will be a typical year for timberland acquisitions, with total transactions ranging from $2 billion to $2.5 billion.
"You're still seeing a strong interest in the asset class, particularly for moderate to high-quality timberland packages. We've seen little bit of less aggression on lower-quality packages. We've seen a few no sale transactions here of late. But nevertheless, I think for quality packages, you're still seeing a lot of interest and pricing has been very strong," Stockfish said.
Read the call transcript and Dow Jones Newswires coverage.
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AvalonBay says demand for apartments stronger than expected
"Demand for our portfolio is benefiting from more job growth than originally forecasted," AvalonBay Communities Inc. President, CEO and Director Benjamin Schall said. The company also continues to benefit from the differential in the cost of owning a home versus renting.
"This is true across most of the country but particularly pronounced in our markets, given the level of home prices, resulting in it being more than $2,000 per month more expensive to own versus rent a home. And this differential translates into record low numbers of residents leaving us to buy a home," Schall said.
Read the call transcript.
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Healthpeak sees Q2 lab leasing to be one of strongest in years
Healthcare REIT Healthpeak Properties Inc. expects the second quarter to be one of its best in terms of lab leasing in recent years, as improved IPO and venture capital funding drive demand for life sciences space.
Healthpeak has nearly 2 million square feet of leasing pipeline, with 455,000 square feet of space under letters of intent.
"We're seeing a massive reduction in new construction starts that should extend for multiple years, creating a far more favorable leasing environment for landlords," Healthpeak President and CEO Scott Brinker said.
Read the call transcript and Dow Jones Newswires coverage.
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Cousins sees slightly lower occupancy in Q2
Office REIT Cousins Properties Inc. expects slightly lower occupancy in the second quarter due to the space giveback of WeWork and the move-out of Nascar at 550 Southeast Charlotte. Cousins has four WeWork locations totaling 169,000 square feet in Atlanta and Charlotte, NC.
"With our favorable 2024 lease expiration profile and over 500,000 square feet of signed new and expansion leases set to commence during the balance of this year, we expect occupancy to remain relatively flat in the second half of the year," Richard Hickson said.
Read the call transcript and Dow Jones Newswires coverage.
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Empire State Realty office leasing outperforms market
During the first quarter, the leased rate of the Empire State Realty Trust Inc.'s office portfolio in Manhattan, NY, increased by 60 basis points sequentially and 200 basis points year over year to 92.7%.
The REIT recorded its ninth consecutive quarter of positive commercial leased rate absorption, ending the first quarter with its total commercial portfolio 91.1% leased.
"Our office leasing has outperformed the market because, one, we maintained balance sheet discipline during the financing and acquisition booms, did not lever up and did not pay top of market prices," Chairman and CEO Anthony Malkin said.
"We have the lowest leverage of any New York City REIT and a strong liquidity position with no significant debt maturity until 2026 December," Malkin added.
Read the call transcript.
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Getty sees 2024 as challenging year for acquisitions
Getty Realty Corp. expects 2024 to be a challenging year for acquisitions of net lease properties.
Many operators in Getty's target sectors prioritize operations and/or are being more selective when it comes to growth, President, CEO and Director Christopher Constant said. Pricing transactions also remain a challenge as bid-ask spreads persist.
"The combination of the investments made in 2023 and our year-to-date activity plus the successful capital markets activity that prefunded these investments positions us to deliver continued earnings growth in 2024, even as we remain patient in a still uncertain interest rate environment," Constant said.
Read the call transcript and Dow Jones Newswires coverage.
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Phillips Edison sees strongest anchor demand in over 2 decades
"Activity for anchor leases currently out for signature is extremely positive, and we are currently experiencing the strongest anchor demand we've seen in over 20 years," Phillips Edison & Co. Inc. President Robert Myers said.
The REIT executed five anchor leases during the first quarter and its anchor occupancy remained high at 98.4%, Myers added.
"In the first quarter, we received six anchor boxes back. We currently have just 15 vacant anchor spaces in our portfolio. Importantly, we are able to drive significantly higher rents on these units," Myers said.
Read the call transcript and Dow Jones Newswires coverage.
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Read the previous earnings calls wrap-up.
