Duke Realty Corporation
) touched a new 52-week high of $18.67 on Aug 19. Closing the
session at $18.48, the stock returned 32.5% in a year's time. The
trading volume for the session was 1,762,930 shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the positive estimate
revisions witnessed over the past 60 days. Further, long-term
expected earnings per share growth rate for this real estate
investment trust (REIT) presently stands at 4.1%.
The recent spate of portfolio-expansion efforts and strong
second-quarter 2014 results primarily drove the stock price.
On Aug 18, Duke Realty announced a new industrial development
project on an 18.1 acre site at 1341 Enterprise Drive in I-55
submarket in Romeoville. Just a week prior to this, the real estate
investment trust (REIT) announced a joint venture with Browning
Investments for development of a new industrial building in
AllPoints Midwest. Improving fundamentals in the U.S. industrial
market is aiding Duke Realty in accomplishing its
On Jul 30, Duke Realty came out with second-quarter 2014 funds from
operations (FFO) of 30 cents per share, beating the Zacks Consensus
Estimate by a penny. Further, FFO came in 3 cents above the
prior-year quarter figure. Results were driven by a rise in
revenues and occupancy growth.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for 2014 has
inched up 0.9% to $1.17 per share. For 2015, the estimate moved up
0.8% to $1.24 per share over the same time frame.
Some better-ranked REIT stocks include Ashford Hospitality Trust,
), Government Properties Income Trust (
) and W. P. Carey Inc. (
). All these stocks carry a Zacks Rank #1 (Strong Buy).
Note: FFO, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization and
other non-cash expenses to net income.
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