On Jan 9, 2014, we issued an updated research report on Host Hotels & Resorts, Inc. (HST). The Bethesda, MD-based REIT-Equity Trust-Others is continuing with its focus on the premium assets across vibrant markets. These assets have the potential for appreciable capital appreciation, thereby aiding the company in enhancing its portfolio mix.
Specifically, Host Hotels’ has a strong portfolio in the west coast region, which is posting solid RevPAR growth. San Francisco, Seattle and Los Angeles markets on the West Coast recorded double-digit RevPAR growth in third-quarter 2014. Higher average rental rates driven by an increase in group business is aiding this uptick.
In addition, Host Hotels’ capital-recycling program helps improve its portfolio quality across vibrant markets. Also, the decent balance sheet lends the company the necessary financial flexibility to target high-yielding acquisitions and capital projects.
Host Hotels also came up with encouraging results in the third quarter. The company reported third-quarter 2014 adjusted funds from operations (“FFO”) per share of 34 cents, beating the Zacks Consensus Estimate by 2 cents and the year-ago quarter figure by 9 cents. The earnings beat was attributable to a rise in comparable RevPAR and occupancy.
Over the past 60 days, the Zacks Consensus Estimates for 2014 remained unchanged at $1.48 per share, where as the Zacks Consensus Estimates for 2015 edged up 0.6%.
Host Hotels currently carries a Zacks Rank #2 (Buy). Investors interested in REITs may consider stocks like Arbor Realty Trust Inc. (ABR), Ashford Hospitality Trust, Inc. (AHT) and Extra Space Storage Inc. (EXR). All these stocks sport a Zacks Rank #1 (Strong Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation, amortization and other non-cash expenses to net income.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment