Host Hotels & Resorts, Inc.
) crafted a new 52-week high, touching $19.87 during the trading
session on Feb 26, 2014, as it gained momentum following strong
fourth-quarter 2013 results and a dividend hike announcement. The
closing price of this lodging real estate investment trust (REIT)
on Feb 26 was $19.67. The trading volume for the session was 5.15
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the improving market
fundamentals, portfolio revamping activity and expected long-term
earnings growth of 7.85%.
Host Hotels & Resorts disclosed fourth-quarter 2013 adjusted
funds from operations (FFO) per share of 33 cents, exceeding the
Zacks Consensus Estimate by 2 cents and the year-ago figure by 3
Quarterly results benefited from notable rise in total owned
hotels revenues and comparable hotel Revenue Per Available Room
(RevPAR). The company also declared a 7.7% sequential increase in
its quarterly dividend.
Given its solid portfolio of luxury and upper upscale hotels, the
company is poised to deliver better results in the quarters ahead
too. The West Coast market remains attractive with strong lodging
demand and lower supply.
Also, strategic portfolio restructuring activities bode well for
its long-term growth and the dividend hike boosts investors'
confidence. As a matter of fact, the company has recorded an
average earnings surprise of 7.87% in the past four quarters of
Other Stocks to Consider
Investors interested in the REIT industry may also consider
Cousins Properties Inc.
Liberty Property Trust
). All these stocks carry a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
are obtained after adding depreciation, amortization and other
non-cash expenses to net income.
COUSIN PROP INC (CUZ): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
LIBERTY PPTY TR (LRY): Free Stock Analysis
PUBLIC STORAGE (PSA): Free Stock Analysis
To read this article on Zacks.com click here.