Highwoods Hits New 52-Week High - Analyst Blog
15 March 2013 - 12:30AM
Zacks
Shares of Highwoods
Properties Inc. (HIW) reached a new
52-week high touching $39.08 almost at the end of the trading
session on Wednesday, Mar 13, 2013, as it gained momentum after
reporting a decent fourth quarter 2012 results. The closing price
of this real estate investment trust (REIT) on Mar 13, 2013, was
$39.01, representing a solid year-to-date return of 16.3%. The
average trading volume over the last 3 months was 0.9 million
shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left given its strong estimate revisions over
the last 30 days.
Growth Drivers
Highwoods Properties reported mixed fourth quarter 2012 results
with core FFO standing in line and revenues beating the Zacks
Consensus Estimate. The successful implementation of its strategic
plan, which led to concentration of company’s properties in the
high-growth Sun Belt markets, was the major growth driver.
Particularly, completion of EQT Plaza acquisition in Pittsburgh –
one of its core operating markets – strengthened Highwoods
Properties’ footprints and expanded its market share to 40%.
On Feb 12, Highwoods Properties reported fourth quarter 2012 core
FFO (funds from operations) of 68 cents per share, in line with the
Zacks Consensus Estimate and lagged the year-ago quarter’s figure
by a couple of cents. However, for full year 2012, core FFO per
share increased 5.8% year over year to $2.73 and was also well
ahead of the Zacks Consensus Estimate of $2.71. Though the company
benefited from decent leasing and portfolio restructuring activity,
a pressure on rent acted as a headwind.
Notably, Highwoods Properties has now delivered positive earnings
surprises in 4 straight quarters with an average beat of 2.24%.
Estimate Revisions Show Potency
Over the last 30 days, 4 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate to $2.75 per share. On
the other hand, 1 estimate for 2014 has also moved higher, raising
the Zacks Consensus Estimate to $2.84 per share.
Recently, a number of REITs reached 52-week high tip. This includes
CBRE Group (CBG), which reached
52-week high of $25.45 on Mar 12, 2013. Also, on Mar 8,
Duke Realty Corporation (DRE) and
DDR Corp. (DDR) reached 52-week
highs of $16.65 and $17.74, respectively.
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.
CBRE GROUP INC (CBG): Free Stock Analysis Report
DDR CORP (DDR): Free Stock Analysis Report
DUKE REALTY CP (DRE): Free Stock Analysis Report
HIGHWOODS PPTYS (HIW): Free Stock Analysis Report
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