S&P Global Market Intelligence presents a wrap-up of earnings conference calls from Feb. 7.
Regency notes uptick in transaction market
Shopping center-focused real estate investment trust Regency Centers Corp. noted an uptick in the transaction market.
"Our team is actively underwriting opportunities around the country," Chief Investment Officer Nicholas Wibbenmeyer said during the company's Feb. 7 fourth-quarter 2024 earnings call.
Wibbenmeyer said the company is under contract to buy a property in Nashville, Tennessee, where it plans to grow its presence.
"We expect demand for high-quality space in the markets and trade areas where we operate to continue to support attractive returns, driving meaningful accretion and growth on a risk-adjusted basis," the executive said.
Read the call transcript.
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EastGroup expects industrial developments to pick up in H2
EastGroup Properties Inc. is expecting demand for industrial real estate to tighten later in 2025 based on current activity.
"It will be a good time to step on the gas again for a while on developments," President, CEO and director Marshall Loeb said during the company's Feb. 7 call with analysts to discuss fourth-quarter 2024 earnings results.
"Longer term, the continued decline in the supply pipeline is promising. The construction pipeline is at its lowest level since early 2016. Assuming reasonably steady demand, the market should tighten in 2025, allowing us to continue pushing rents and create development opportunities," Loeb said.
Read the call transcript.
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Camden to reduce concentration in Houston, Washington, DC, metro area
Multifamily REIT Camden Property Trust said it will reduce exposure to two of its largest markets — the Washington, DC, metro area and Houston — as it seeks "greater market balance."
"We will seek greater market balance by reducing our exposure to our two largest markets ... through a combination of select dispositions and growth in our other existing markets," President and CFO Alexander Jessett said during the company's fourth-quarter 2024 earnings call on Feb. 7.
The company does not want any market to make up more than 10%, or less than 4%, of its net operating income by the end of 2027.
Jessett also said the company will exit older, more capital-intensive assets and redeploy the proceeds into newer, faster-growing communities.
"Depending upon the location and age of the disposed communities, there may be 0 to 100 basis points negative [funds from operations] yield differential for these matching transactions, while we expect [adjusted funds from operations] yields to be relatively flat. The end result will be a more geographically diverse, newer and faster-growing portfolio," Jessett said.
Read the call transcript.
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Read the previous earnings calls wrap-up.
