Latest news with #MichaelGoldsmith
Yahoo
25-05-2025
- Automotive
- Yahoo
Four Corners Property Trust, Inc. (FCPT) Expands Portfolio with $16.9M Auto Property Deal
Four Corners Property Trust, Inc. (NYSE:FCPT) has announced the acquisition of four Christian Brothers Automotive sites for $16.9 million via a sale-leaseback transaction. The properties are located across Ohio, Florida, and Nebraska and positioned in high-visibility retail corridors with favourable demographic profiles. A REIT Retail company representative discussing the portfolio growth with a tenant. The California-based company, Four Corners Property Trust, Inc. (NYSE:FCPT) is a real estate investment trust (REIT), engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties. The company's newly acquired sites are backed by a long-term lease from Christian Brothers Automotive's corporate parent, which ensures predictable cash flows. The deal was closed at a capitalization rate in line with Four Corners Property Trust, Inc. (NYSE:FCPT)'s historical benchmarks, indicating a consistency in investment discipline amid tightening market conditions. Four Corners Property Trust, Inc. (NYSE:FCPT) does not issue formal acquisition guidance. However, the trust has previously indicated it remains committed to disciplined growth. The company's Q1 2025 earnings call has expressed concerns regarding the sustainability of high acquisition volumes because of elevated competition alongside strict quality filters. Even so, with a portfolio now exceeding 1,000 properties, Four Corners Property Trust, Inc. (NYSE:FCPT) continues to establish a strong footprint across high-demand U.S. retail sectors. From an equity standpoint, UBS analyst Michael Goldsmith reaffirmed a Buy rating for the company a few days before the acquisition, although lowering the price target to $30 from $33. While we acknowledge the potential of FCPT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FCPT and that has 100x upside potential, check out our report about the READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds Disclosure: None.
Yahoo
01-05-2025
- Business
- Yahoo
Extra Space Storage Inc (EXR) Q1 2025 Earnings Call Highlights: Strong Core FFO and Strategic ...
Core FFO: $2 per share, a 2% increase year-over-year. Same Store Occupancy: 93.4%, an improvement of 100 basis points from Q1 2024. Same Store Revenue Growth: 0.3% increase. Wholly Owned Acquisitions: $153.8 million, adding 12 stores. Joint Venture Dissolution: Realized an embedded promote of $1.7 million. Bridge Loan Program: $53.2 million in loans closed; $27.7 million in loans sold. Third-Party Managed Portfolio: Net addition of 100 properties, totaling 1,675 stores. Controllable Expenses: Reduced by 1.9% year-over-year. Uncontrollable Expenses: Increased by 8% due to property tax and weather-related expenses. Same Store NOI: Decrease of 1.2% compared to Q1 2024. Bond Offerings: $350 million at 5.17% (5-year) and $500 million at 5.4% (10-year). Weighted Average Interest Rate: 4.4%. Debt Profile: Almost 90% at fixed rates. Annual Acquisition Guidance: Increased to account for JV buyouts. Warning! GuruFocus has detected 8 Warning Signs with EXR. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Extra Space Storage Inc (NYSE:EXR) reported a solid first quarter with a core FFO of $2 per share, representing a 2% increase year-over-year. Same store occupancy remained high at 93.4%, showing resilience and effective management strategies. The company completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to its portfolio. The management plus platform showed remarkable growth, adding a net of 100 properties, reinforcing its position as a leading third-party management provider. Extra Space Storage Inc (NYSE:EXR) maintained a conservative leverage profile with almost 90% of its debt at fixed rates, insulating it from interest rate fluctuations. Uncontrollable expenses increased by 8% due to property tax pressure and weather-related expenses, leading to a same store NOI decrease of 1.2%. The company did not raise its guidance despite strong performance, indicating caution due to economic uncertainties. There is continued pressure from property taxes and other uncontrollable costs, which could impact future financial performance. The acquisition market remains muted with continued bid-ask spread issues, affecting potential growth opportunities. The company faces challenges from macroeconomic factors such as interest rate volatility and economic uncertainty, which could impact future performance. Q: Michael Goldsmith from UBS asked about the significant improvement in street rates during the first quarter and whether demand is picking up. He also inquired about conditions in April. A: Peter Stubbs, CFO, explained that street rates improved from negative 9% in Q3 last year to flat by the end of Q1 2025. He noted that while the improvement is encouraging, it's too early to predict trends for the rental season. Q: Samir Khanal from BofA Securities questioned why Extra Space Storage didn't raise guidance despite positive performance and asked about leasing strategies for the spring season. A: CEO Joseph Margolis stated there was no change in strategy. The company uses algorithms to price units daily, leveraging their data and current market conditions to maximize revenue. Q: Nicolas Yulico from Scotiabank inquired about acquisition yields for the quarter and current contracts. A: CEO Joseph Margolis detailed that initial yields ranged from 2.3% to 6.5%, stabilizing in the upper 6% to 7% range, depending on the stage of lease-up. Q: Ronald Kamden from Morgan Stanley asked about expense pressures, particularly property taxes, and any relief expected throughout the year. A: CFO Peter Stubbs noted that property taxes and insurance are areas of pressure. While property taxes were higher in Q1 due to prior accruals, they don't expect the same rate of increase annually. Q: Eric Wolfe from Citi Group questioned the sources of demand given the soft moving environment and strong Google search data. A: CEO Joseph Margolis explained that while moving-related demand has declined, the "lack of space" customer segment has grown, now comprising 35% of their customer base, which has a longer average stay. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
