Of the 25 largest U.S. real estate investment trusts by market capitalization, 15 topped their consensus S&P Global Market Intelligence earnings estimates for the second quarter, while six met expectations and four fell short.
Timber REIT Weyerhaeuser Co. came in at the top of the group, surpassing its consensus second-quarter EPS estimate by 60%. While Weyerhaeuser's second-quarter results came in much higher than analyst expectations, EPS for the REIT was down 63.6% year over year, excluding the impact of certain after-tax special items.
Weyerhaeuser CEO Devin Stockfish noted on the REIT's recent earnings call that homebuilding activity was constrained in key areas across the country during the second quarter due to record-setting precipitation.
Communications-focused American Tower Corp. followed, exceeding its consensus per-share funds from operations estimate by 12 cents, or 6.9%. Manufactured home REIT Sun Communities Inc. rounded out the top three, beating its consensus FFO-per-share estimate by 4.4%.
W. P. Carey Inc. fell short of its FFO-per-share estimate by 5.3%, the largest miss of the group.
Lodging REIT Host Hotels & Resorts Inc. followed, reporting FFO per share of 53 cents, just short of its consensus estimate of 54 cents. Executives at the company attributed low hotel revenues in major markets such as New York and San Francisco to lower business travel amid the ongoing trade dispute between the U.S. and China.
Multifamily-focused AvalonBay Communities Inc. and data center REIT Equinix Inc. also reported FFO per share short of analyst expectations for the quarter by 1.7% and 1.2%, respectively.