Sector Watch: US Real Estate Companies, on a Low with a Yield

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The U.S. real estate services sector currently shows 18 companies out of 82 are on a 52-week low, according to the GuruFocus Value Screen for finding 52-Week Lows . The sector's low ratio is 0.22. Here is an update on four real estate companies highlighted for their yields.

Industry Sector: Real Estate Services

Highlight: American Realty Capital Properties Inc. ( ARCP )

Yield: 7.10%

The current ARCP share price is $12.76, or 29.3% off the 52-week high of $18.05.

Down 1% over 12 months, American Realty Capital Properties Inc. has a market cap of $2.36 billion, and trades with a P/B of 1.60.

American Realty Capital Properties Inc. owns and acquires single tenant freestanding commercial real estate that is net leased on a medium-term basis primarily to investment grade credit rated and other credit worthy tenants.

Guru Action: As of June 30, 2013, the top Guru owner is Richard Perry.. He made a new buy in the second quarter, picking up 4,524,887 shares at an average price of $15.94 per share for a loss of 19.9%. His current shares of 4,524,887 represent 2.45% of shares outstanding and 1.8% of his total managed assets.

Jim Simons and Steven Cohen reduced their positions by 27.82% and 39.62%, respectively, but both are still major shareholders. Simons has current shares of 1,177,600 shares or 0.64% of shares outstanding. Cohen has 1,275,999 shares or 0.69% of shares outstanding.

Insider buying is very active.

Track share pricing, revenue and net income:





Highlight: Campus Crest Communities Inc. ( CCG )

Yield: 6.40%

The current CCG share price is $10.09, or 29.7% off the 52-week high of $14.36.

Down 5% over 12 months, Campus Crest Communities Inc. has a market cap of $647.7 million, and trades with a P/E of 35.20.

Incorporated in 2010, Campus Crest Communities Inc. is a self-managed, self-administered and vertically-integrated REIT engaged in developing, building, owning and managing a diversified portfolio of high-quality, residence life student housing properties. As of 31 December 2012, the company owned interests in 39 operating student housing properties containing approximately 7,670 apartment units and 20,884 beds. Thirty-two of its properties are wholly-owned and seven properties are owned through joint ventures with Harrison Street Real Estate Capital.

Guru Action: As of June 30, 2013, the top Guru owner is Chris Davis after increasing his position by 91.25%. He bought 367,433 shares at an average price of $13.02 for a loss of 22.5%. Davis held for two quarters only, losing 20.2% on the holding in the first quarter of 2013 when he made a new buy of 402,686 shares at an average price of $12.65 per share.

Paul Tudor Jones sold out as of the second quarter, unloading 36,763 shares at an average price of $13.02, also for a loss of 22.5%. He held for six quarters of losses.

Track share pricing, revenue and net income:



Highlight: Hysan Development Co. Ltd. ( HYSNF )

Yield: 2.90%

The current HYSNF share price is $4.25, or 16% off the 52-week high of $5.06.

Down 14% over 12 months, Hysan Development Co. Ltd. has a market cap of $4.52 billion, and trades with a P/B of 0.60.

Hysan Development Co., Ltd. is engaged in property investment, management and development in Hong Kong, with properties in office, retail and residential.

Guru Action: No guru stakeholders or insider activity to report.

According to the GuruFocus checkup on the financials and performances of Hysan Development Co. Ltd., there are several warning signs. The company's asset growth is faster than its revenue growth, and the company has been issuing new debt. However, there are good signs that the company has shown predictable revenue and earnings growth, and the company's operating margin is expanding. The stock's dividend yield is close to a three-year high, and its P/B ratio of 0.60 is close to a one-year low of 0.55. Also, the Hysan Development Co. Ltd. stock P/S ratio of 12.10 is close to a three-year low of 12.82.

Tracking:



Highlight: NTS Realty Holdings LP ( NLP )

Yield: 4.70%

The current NLP share price is $4.30, or 42.5% off the 52-week high of $7.48.

Down 14% over 12 months, NTS Realty Holdings LP has a market cap of $47.7 million, and trades with a P/B of 3.00.

NTS Realty Holdings LP is a limited partnership, first organized in 2003. The company is in the business of developing, constructing, owning and operating multifamily properties, commercial and retail real estate. As of December 31, 2012, it owned 24 properties, in Kentucky, Florida, Indiana, Tennessee, Virginia and Georgia.

Guru Action: No guru stakeholders or insider activity to report.

According to the GuruFocus checkup on the financials and performances of NTS Realty Holdings LP, there are several warning signs. The company's Altman Z-score of 0.08 is in the distress zone, implying bankruptcy as a possibility in the next two years. The company has been issuing new debt over the last three years for around $26.2 million USD. The company's revenue growth has slowed over the last 12 months as well. The good signs are that the company's operating margin is expanding. The stock's dividend yield is close to a one-year high, and the NTS Realty Holdings LP stock P/S ratio of 0.80 is close to a one-year low of 0.83.

Tracking:



GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ARCP , CCG , HYSNF , NLP

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