Latest news with #NAREIT
Skift
11 hours ago
- Business
- Skift
Subdued Tone Among Hotel REITs at Nareit Conference
The DJIA was up 443 points while Nasdaq was up 232, the S&P 500 rose 61 points while the 10-year treasury yield was up .12 to 4.51%. Lodging stocks were higher. BHR was the mover of note, up 5%. The common opinion from those at the NAREIT conference was that the tone was more subdued than from the C-Corps, which was interesting considering uncertainty was the conclusion in describing the tone at NYU. The public hotel brands always seem more bullish, but the private companies, consultants, and other non-REIT executives were cautious. Truist said they think the subdued tone could be because of frustration with REIT stock prices, as insiders at the hotel REITs have been buyers of their stocks lately. It could also be the lackluster transaction market, interest rate volatility, and, once again, the general uncertainty. As far as business is concerned, none of them said business has taken a turn in the negative direction, but they also didn't say things are better than they look. Baird said their take is that the shorter booking window, calendar shift impacts, consumer pricing sensitivity, and general macro uncertainties are keeping management team outlooks and convictions held in check. They expect REITs to continue to be net sellers of assets and purchasers of their own stock. The Baird-STR Hotel Stock Index showed a rebound in hotel stocks in May, up 9.3% from April, the first month-to-month gain since January. Century Development Group announced that The Westin Flushing LaGuardia Airport officially opened its doors. The 13-story property was developed by Century Development Group and is in Queens, NY. The hotel features 148 king rooms, 79 double rooms, 14 queen rooms, and 5 suites. The expansive lobby includes a 16-foot ceiling, a lush biophilic living wall, while the property includes amenities like WestinWORKOUT Fitness Studio, Spa Features, over 6,000 square feet of meeting and event spaces, and the Blu Ember upscale New American restaurant. HHM Hotels announced the launch of the Courtyard by Marriott Philadelphia Downtown, which was recently renovated and rebranded. The property has a prime location near City Hall and the convention center, refreshed guestrooms, a renovated lobby bar and restaurant, plus flexible meeting and event spaces with city views. This is the only Courtyard in Center City. Opal Hospitality announced the opening of Hotel Railwayparc Montreal, Tapestry Collection by Hilton. The 73-room boutique hotel was developed by Sergakis Holdings. Key amenities include a lobby restaurant and bar, a hidden speakeasy bar, a fitness center, and flexible meeting rooms. IHG Hotels & Resorts is gearing up to open a variety of new hotels and resorts this summer in locations across the globe - from the US to Japan to Australia. New/upcoming hotels in the Americas include: voco Laguna Hills, now open in Laguna Beach, California; Real InterContinental Lima Miraflores, opening June 2025 in Peru; Atwell Suites Corpus Christi, opening July 2025 in Texas. In Europe, The Chania Hotel Crete, Vignette Collection is now open in Chania, Greece; The Holiday Inn Resort Szklarska Poreba Happy Valley is opening in September 2025 in Poland; opening H2 2025 is the voco Antalya Konyaali in Turkey; and the Crowne Plaza Dushanbe is opening H2 2025 in Tajikistan. IMEA openings include the Kimpton KAFD Riyadh, opening in June 2025 in Saudi Arabia; InterContinental The Red Sea Resort, opening in H2 2025 in Saudi Arabia; and Ciel Dubai Marina, Vignette Collection opening in H2 2025 in the UAE. The ANA Holiday Inn Tokyo Bay and the ANA Crowne Plaza Resort Uruma Hills are both now open in Japan. In Southeast Asia, voco Bandung Setiabudi is opening in July 2025 in Indonesia; InterContinental Halong Bay Resort is opening in Summer 2025 in Vietnam; and the Crowne Plaza Bangkok Rama 9 is opening in Q3 2025 in Thailand. Hotels opening in Australia include the Hotel Indigo Melbourne Little Collins & Holiday Inn Melbourne Bourke Street Mall opening Q3 2025, marking IHG's first Australian dual-branded hotel; and the Crowne Plaza Shell Cove Marina is opening in August 2025. The circular-shaped Holiday Inn on Hillsborough Street in Raleigh, North Carolina, is being rebranded into a Hotel Indigo. There is no timeline for the transformation. Tidal Real Estate Partners bought the hotel in 2021 and originally planned to tear it down and build a new 20-story tower with a Kimpton hotel and high-end apartments. Hyatt Hotels Corporation announced that all required regulatory approvals have been obtained for its cash tender offer to purchase all the outstanding ordinary shares of Playa Hotels & Resorts NV for $13.50 per share in cash. Hyatt said they expect to complete the tender offer following the expiration at 5 PM NYC time on June 9th. Shade Hotels by hotelier Michael Zislis is unveiling a new era for its Manhattan Beach and Redondo Beach locations. The full-scale refresh across both properties includes new guestroom designs, revamped restaurant menus, and rooftop programming. With the relaunch comes a new name for each hotel: Shade at the Beach (Manhattan Beach) and Shade at the Marina (Redondo Beach). Shade at the Beach is celebrating its 20th anniversary and features an indoor-outdoor restaurant, The Skydeck, complete with a new pool and cabanas, and refreshed meeting and event spaces. Shade at the Marina features a re-imagined Aquadeck rooftop and Sea Level Restaurant & Lounge. Appellation joined forces with Deepak Chopra to create a transformative wellness destination community: AMEYALLI Park City by Appellation, set to debut in 2026. Appellation will manage and operate AMEYALLI Park City by Appellation, comprised of an 80-key hotel, a restaurant and bar, along with a Wellbeing Center complete with an expansive spa, luxury pool, and additional restaurant. The surrounding wellness development will also feature the AMEYALLI Center of Excellence in partnership with Deepak Chopra, as well as three types of private luxury residences. Cushman & Wakefield Hotel Group announced it sold the 152-room full-service Best Western Gateway Grand in Gainesville, FL. The property was sold through a discreet & confidential marketing process. This was the first time the hotel was ever "on-market." The property was sold for $14.1 million and a 5.9% Cap Rate on 2024 figures. C&W said they have another 19 hotels under contract and expect 2025 to be a record-breaking year for hotel sales. Paramount Lodging Advisors announced the sale of the 114-room Aloft Marriott Sacramento Airport Natomas in Sacramento, California. PLA represented the seller in this transaction. European Highlights Zeal Hotels appointed James Ferdinando as sustainable development lead, as the group expands around the UK. Zeal Hotels will draw on Ferdinando's extensive experience in sustainable construction practices and sustainable development. He joins the group from RED Construction, which constructed the voco Zeal Exeter Science Park, where he was group head of sustainability. Hilton is set to open a McLaren Racing-themed suite at The Trafalgar St. James London Hotels, a part of its Curio Collection, to mark the Formula 1 British Grand Prix at Silverstone. The suite will be available for booking from July 8 through July 20, 2025. This initiative is part of a celebration for Hilton's 20-year partnership with McLaren Racing. Criterion Capital has acquired the London office building Mansell Court, with the intention of turning it into a 200-room Zedwell hotel. The project joins Criterion's pipeline of 22 hotels, which will add to its current sites at Greenwich, Piccadilly Circus, Tottenham Court Road, and Knightsbridge in London and Zedwell Manchester, which is expected to open in 2026. Ares Management Corp., with funds from Ares Real Estate, has acquired the entire UK hotel portfolio and operating platform from London-based Landsec for $501 million. The sale has been rumored for months, but Landsec confirmed the 21-hotel deal on Wednesday. Landsec said the net proceeds of the sale will initially be used to repay debt. Ares' partner on the Landsec hotel portfolio acquisition is London-based hotel-operating partner EQ Group. Tristan Capital Partners completed its acquisition of budget hotel brand EasyHotel, which it announced on May 1. The deal for 100% of the hotel firm's shares was completed via Tristan Capital's discretionary fund, European Property Investors Special Opportunities 6. The terms of the cash deal comprised the acquisition of approximately 189.5 million shares for an aggregate price of $224 million. KE Hotels secured planning permission for a major expansion and refurbishment of the Holiday Inn Luton Airport, which will include the addition of 89 new guest bedrooms and a series of external upgrades. The approved plans include a multi-story rear extension, which will increase the hotel's capacity significantly from 124 to 213 rooms. Scandic Hotels is expanding its presence in Sweden with a new property in the ski resort area of Salen. The hotel, currently under development, will feature 120 rooms and 16 apartments, along with conference facilities. The property is being developed in partnership with Lima Besparingsskog and is positioned to provide direct ski-in, ski-out access. Plans for the hotel also include a wellness area complete with a sauna, gym, and pool that extends from indoors to outdoors. A new ski lift will facilitate easy transport from the hotel to the ski slopes. The ground floor will feature large windows in the lobby, restaurant, and bar areas, and multiple fireplaces are planned to create a cozy ambiance.
Yahoo
18-04-2025
- Business
- Yahoo
First Industrial Realty Trust Inc (FR) Q1 2025 Earnings Call Highlights: Strong Leasing and ...
Funds From Operations (FFO): $0.68 per fully diluted share, up from $0.60 per share in 1Q 2024. Cash Same-Store NOI Growth: 10.1% for the quarter, excluding termination fees. In-Service Occupancy: 95.3% at quarter end, down 90 basis points from year-end. Leasing Activity: 1.3 million square feet of leases commenced, including 400,000 new, 800,000 renewals, and 100,000 for developments and acquisitions. Cash Rental Rate Growth: 30% to 40% expected for the full year, 35% to 45% excluding fixed rate renewal. Development Projects: New construction of a 176,000 square-foot facility in Dallas and a 226,000 square-foot facility in Philadelphia. Acquisitions: Two fully leased developments in Phoenix, totaling 796,000 square feet, with a cash yield of 6.4%. Credit Facility: Renewed and upsized senior unsecured revolving credit facility by $100 million to $850 million. Term Loan: Renewed $200 million unsecured term loan with maturity extended to March 2030. Guidance: NAREIT FFO for the year remains $2.87 to $2.97 per share. G&A Expense Guidance: $40.5 million to $41.5 million for the full year 2025. Warning! GuruFocus has detected 5 Warning Sign with FR. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Industrial Realty Trust Inc (NYSE:FR) reported a strong start to 2025 with successful leasing objectives and attractive new investments. The company renewed its line of credit and a $200 million term loan, extending debt maturities and enhancing financial stability. In-service occupancy was 95.3% at the end of the first quarter, aligning with expectations and demonstrating strong portfolio performance. The company achieved a 30% cash rental rate increase for new and renewal leasing, excluding a large fixed-rate renewal. First Industrial Realty Trust Inc (NYSE:FR) plans to break ground on new developments in Dallas and Philadelphia, targeting high-demand submarkets with projected cash yields of approximately 8%. The evolving landscape surrounding tariffs poses uncertainty, potentially impacting business activity and leasing decisions. Vacancy rates in some submarkets, such as Denver, have been higher than desired, indicating potential challenges in those areas. The company faces potential risks from geopolitical and economic uncertainties, which could affect tenant demand and investment decisions. There is a concern about the impact of tariffs on tenant demand, particularly for international trade-related tenants. The company has a significant amount of speculative development, which could pose risks if leasing activity slows down. Q: How does the ongoing tariff negotiation impact your tenancy, particularly with Chinese 3PLs? A: Johannson Yap, Executive Vice President and Chief Investment Officer, stated that their exposure to Chinese 3PLs is minimal, with only about 450,000 square feet leased to them. They have historically avoided deals with Asian 3PLs due to credit concerns. Q: Can you clarify the timing and visibility of the 1.5 million square feet of development leasing expected in the fourth quarter? A: Scott Musil, CFO, confirmed that the majority of the 1.5 million square feet is expected in the fourth quarter. Peter Schultz, Executive Vice President, added that while some deals are progressing slower due to tariff concerns, there is more interest now than in previous months. Q: Are there any markets showing notable changes in operating fundamentals? A: Peter Baccile, CEO, mentioned that there have been no significant changes in their target markets. They continue to favor South Florida, Nashville, and certain submarkets in Dallas and Houston. Denver is improving, but no major shifts have been observed. Q: How are you approaching new development starts given the current market conditions and potential tariff impacts? A: Peter Baccile explained that they remain opportunistic and cautious, focusing on unmet demand in specific markets like Texas, Florida, and Pennsylvania. They aim for good risk-adjusted returns while considering the evolving tariff situation. Q: What is the impact of potential delays in development leasing on your financial guidance? A: Scott Musil noted that if the 1.5 million square feet of development leasing does not occur as planned, it would impact FFO by about $0.02 per share. However, they remain confident in hitting the lower end of their guidance range even if leasing conditions remain challenging. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
First Industrial Realty Trust Inc (FR) Q1 2025 Earnings Call Highlights: Strong Leasing and ...
Funds From Operations (FFO): $0.68 per fully diluted share, up from $0.60 per share in 1Q 2024. Cash Same-Store NOI Growth: 10.1% for the quarter, excluding termination fees. In-Service Occupancy: 95.3% at quarter end, down 90 basis points from year-end. Leasing Activity: 1.3 million square feet of leases commenced, including 400,000 new, 800,000 renewals, and 100,000 for developments and acquisitions. Cash Rental Rate Growth: 30% to 40% expected for the full year, 35% to 45% excluding fixed rate renewal. Development Projects: New construction of a 176,000 square-foot facility in Dallas and a 226,000 square-foot facility in Philadelphia. Acquisitions: Two fully leased developments in Phoenix, totaling 796,000 square feet, with a cash yield of 6.4%. Credit Facility: Renewed and upsized senior unsecured revolving credit facility by $100 million to $850 million. Term Loan: Renewed $200 million unsecured term loan with maturity extended to March 2030. Guidance: NAREIT FFO for the year remains $2.87 to $2.97 per share. G&A Expense Guidance: $40.5 million to $41.5 million for the full year 2025. Warning! GuruFocus has detected 5 Warning Sign with FR. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Industrial Realty Trust Inc (NYSE:FR) reported a strong start to 2025 with successful leasing objectives and attractive new investments. The company renewed its line of credit and a $200 million term loan, extending debt maturities and enhancing financial stability. In-service occupancy was 95.3% at the end of the first quarter, aligning with expectations and demonstrating strong portfolio performance. The company achieved a 30% cash rental rate increase for new and renewal leasing, excluding a large fixed-rate renewal. First Industrial Realty Trust Inc (NYSE:FR) plans to break ground on new developments in Dallas and Philadelphia, targeting high-demand submarkets with projected cash yields of approximately 8%. The evolving landscape surrounding tariffs poses uncertainty, potentially impacting business activity and leasing decisions. Vacancy rates in some submarkets, such as Denver, have been higher than desired, indicating potential challenges in those areas. The company faces potential risks from geopolitical and economic uncertainties, which could affect tenant demand and investment decisions. There is a concern about the impact of tariffs on tenant demand, particularly for international trade-related tenants. The company has a significant amount of speculative development, which could pose risks if leasing activity slows down. Q: How does the ongoing tariff negotiation impact your tenancy, particularly with Chinese 3PLs? A: Johannson Yap, Executive Vice President and Chief Investment Officer, stated that their exposure to Chinese 3PLs is minimal, with only about 450,000 square feet leased to them. They have historically avoided deals with Asian 3PLs due to credit concerns. Q: Can you clarify the timing and visibility of the 1.5 million square feet of development leasing expected in the fourth quarter? A: Scott Musil, CFO, confirmed that the majority of the 1.5 million square feet is expected in the fourth quarter. Peter Schultz, Executive Vice President, added that while some deals are progressing slower due to tariff concerns, there is more interest now than in previous months. Q: Are there any markets showing notable changes in operating fundamentals? A: Peter Baccile, CEO, mentioned that there have been no significant changes in their target markets. They continue to favor South Florida, Nashville, and certain submarkets in Dallas and Houston. Denver is improving, but no major shifts have been observed. Q: How are you approaching new development starts given the current market conditions and potential tariff impacts? A: Peter Baccile explained that they remain opportunistic and cautious, focusing on unmet demand in specific markets like Texas, Florida, and Pennsylvania. They aim for good risk-adjusted returns while considering the evolving tariff situation. Q: What is the impact of potential delays in development leasing on your financial guidance? A: Scott Musil noted that if the 1.5 million square feet of development leasing does not occur as planned, it would impact FFO by about $0.02 per share. However, they remain confident in hitting the lower end of their guidance range even if leasing conditions remain challenging. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
Phillips Edison & Co Inc (PECO) Q4 2024 Earnings Call Highlights: Strong Growth Amidst ...
Core FFO per Share Growth: Nearly 4% in 2024, potentially 6% if adjusted for interest rates. Acquisitions: Closed nearly $100 million in Q4; targeting $350 million to $450 million in 2025. Comparable New Rent Spreads: 30.2% in Q4. Comparable Renewal Rent Spreads: 20.8% in Q4. Portfolio Occupancy: 98% leased at the end of Q4. NAREIT FFO: $83.8 million or $0.61 per diluted share in Q4, 8.9% YoY growth. Core FFO: $85.8 million or $0.62 per diluted share in Q4, 6.9% YoY growth. Same-Center NOI Growth: 6.5% in Q4. Liquidity: Approximately $948 million as of December 31, 2024. Net Debt to Adjusted EBITDAR: 5 times. 2025 Guidance for NAREIT FFO: $2.47 to $2.54 per share, 5.7% increase over 2024 at midpoint. 2025 Guidance for Core FFO: $2.52 to $2.59 per share, 5.1% increase over 2024 at midpoint. 2025 Same-Center NOI Growth Guidance: 3% to 3.5%. Warning! GuruFocus has detected 8 Warning Signs with PECO. Release Date: February 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Phillips Edison & Co Inc (NASDAQ:PECO) delivered solid core FFO per share growth of nearly 4% in 2024, despite significant interest expense headwinds. Retailer demand across PECO's portfolio remains strong, evidenced by high occupancy rates and strong rent spreads. PECO exceeded the high end of its original guidance for acquisitions in 2024, closing nearly $100 million in acquisitions in the fourth quarter. The company has a high-quality portfolio capable of delivering strong cash flow growth, with approximately 70% of ABR coming from necessity-based goods and services. PECO's low leverage provides financial capacity to meet growth targets, with diverse sources of capital including additional debt issuance, dispositions, and equity. Significant interest expense headwinds impacted core FFO per share growth, which would have been higher without these expenses. Several retailers, including Party City and Big Lots, filed for bankruptcy, although PECO has low exposure to these retailers. The transaction market is competitive, with more buyers putting pressure on pricing, which could impact acquisition opportunities. PECO's strategy of taking back weaker stores to improve merchandising may temporarily put downward pressure on occupancy and retention rates. The company faces potential headwinds from tariffs and higher labor costs, which could impact retailer operations and consumer spending. Q: How does the current tenant demand and acquisition pipeline compare to last year? A: Jeffrey Edison, CEO, stated that they feel better about the current year compared to last year due to a larger pipeline of projects under contract and controlled. They had a strong fourth quarter with nearly $100 million in acquisitions, and they have higher goals for acquisitions this year. The market continues to show a strong pipeline of products, although there is more competition, which is putting pressure on pricing. Q: How is PECO balancing high occupancy with tenant retention? A: Jeffrey Edison, CEO, explained that PECO is taking a more aggressive approach to merchandising by taking back weaker stores when leases are up, which may temporarily affect occupancy and retention. However, this strategy is expected to improve long-term growth by enhancing the merchandising mix and property value. Q: What role do dispositions play in funding acquisitions, and how does PECO balance capital recycling with new equity or debt? A: Jeffrey Edison, CEO, mentioned that the market will determine the best source of capital, whether through debt, equity, or dispositions. They have already announced one disposition this year and will continue to use this strategy selectively when they can achieve better returns on acquisitions than on sales. Q: Can you provide more details on the joint venture partnerships and their role in acquisitions? A: Jeffrey Edison, CEO, noted that joint ventures represent about 10% of their acquisition target for the year. These partnerships, such as those with Cohen & Steers and Northwestern Mutual, allow PECO to pursue unique opportunities that may not fit their balance sheet but still offer solid investment potential. Q: How is PECO addressing potential tenant credit concerns and bad debt? A: John Caulfield, CFO, stated that PECO's bad debt experience in 2024 was around 75 basis points, and they have set a wider guidance range for 2025 to account for potential variability. They feel confident in the strength of their tenants and have low exposure to known bankruptcies like Party City and Big Lots. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
