REITs’ Q3 Earnings Queued for Nov 9: HPT, DRH, GNL & TIER

The hectic reporting cycle is coming to an end. Some companies from the real estate investment trust (REIT) industry are yet to release their results. On Nov 9, Hospitality Properties Trust HPT, DiamondRock Hospitality Company DRH, Global Net Lease, Inc. GNL and TIER REIT, Inc TIER are slated to release their third-quarter 2016 results.

So far, the performance of the broader REIT sector has been mixed. During the quarter, the companies in the REIT space benefitted from the prevalence of a low rate of interest. Also, the individual market dynamics played a crucial role in their results.

While REITs like Simon Property Group Inc. SPG and Prologis, Inc. PLD reported better-than-expected numbers, Boston Properties Inc. BXP failed to surpass expectations in the quarter.

Since, neither all REITs cater to the same asset class nor are they equally poised to surpass analyst’s expectations, we relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Per our proprietary methodology, Earnings ESP shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.

Newton, MA-based Hospitality Properties Trust is engaged in owning and leasing hotels to unaffiliated hotel operators. We cannot conclusively predict a positive earnings surprise this quarter as the company has an Earnings ESP of -2.89% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DiamondRock Hospitality Company is a Bethesda, MD-based hotel-REIT which owns, acquires and invests in upper upscale and upscale hotel properties. The company has an Earnings ESP of -4.00% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.

DIAMONDROCK HOS Price and EPS Surprise

New York-based Global Net Lease is focused on sale-leaseback properties. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Despite a favorable Zacks Rank, the 0.00% ESP makes surprise prediction difficult.

Dallas, TX-based Tier REIT focuses on commercial office real estate. We cannot conclusively predict an earnings beat this quarter as the company has an Earnings ESP of 0.00% and a Zacks Rank #3.

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