Duke Realty Corporation
) reached a new 52-week high, touching $17.70 towards the end of
the trading session on May 28, as it gained momentum following
decent first-quarter results. The closing price of $17.61 of this
real estate investment trust (REIT) reflected a strong year-to-date
return of 19.4%. The trading volume for the session was over 1.7
Despite its strong price appreciation, this Zacks Rank #2 (Buy),
stock has plenty of upside left, given the improving operating
environment, expected second-quarter 2014 earnings growth of 7.04%,
exposure to recession-resistant healthcare sector and long-term
growth of 4.41%.
Decent first-quarter 2014 results - including a rise in revenues
and same-property net operating income - as well as strong
portfolio repositioning activity were the key growth drivers for
In particular, this real estate investment trust (REIT) is
making concerted efforts to lower its suburban office assets, as
the fundamentals of this market remain weak, and is along side
enhancing its bulk industrial properties. This portfolio
repositioning is expected to improve internal growth metrics,
enabling the company to emerge stronger after full recovery of the
real estate market.
On Apr 30, Duke Realty reported first-quarter 2014 core funds
from operations (FFO) per share of 28 cents, in line with the Zacks
Consensus Estimate. The results compared favorably with the
prior-year quarter figure of 26 cents. The performance was aided by
a rise in revenues, which registered 14.0% year-over-year growth
and beat the Zacks Consensus Estimate of $222.0 million.
Over the last 30 days, the Zacks Consensus Estimate for
full-year 2014 FFO per share remained stable at $1.15.
Nevertheless, for 2015, it ascended by a penny to $1.22 per
Other Stocks to Consider
Some other REITs that reached 52-week highs on May 28 include
The St. Joe Company
CBRE Group, Inc.
Chatham Lodging Trust
Note: Funds from operations, a widely accepted and reported
measure of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
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