REITonAIM Comments 12/16/2014 06:04 PM REITonAIM announces a new report on American Realty Capital Properties ARCP $8 Ranking: SELL 12/16/2014 ARCP $8 American Realty Capital Properties ARCP shocking decision on management departures calls into question previous reassurance provided to investors ARCP resignation of David Kay, CEO of ARCP only since October 2014, appears to heighten probability of more extensive restatement than previously disclosed ARCP former CEO David Kay viewed by investors as talented outsider brought in to add management acumen to portfolio of net leased properties quickly constructed through many large transactions by previous CEO Nicholas Schorsch ARCP resignation of COO Lisa Beeson leaves ARCP with little top level management to oversee portfolio ARCP replacement of CEO David Kay by lead independent director William Stanley as interim CEO appears to place more weight on outcome of recommendations by newly hired consultant Morgan Stanley ARCP retained Morgan Stanley "to provide advice around capital structure, business strategy and capital allocation" ARCP investors now may consider sale of ARCP portfolio to highest bidder as most probable outcome ARCP most disclose current financial results by January 5, 2014 to avoid violation of recent lender waiver ARCP if liquidation path to resolution is chosen by board of directors, current monthly dividends would be interrupted ARCP a Retail REIT with a portfolio of single tenant net leased properties ARCP we DOWNGRADE rank to 4 SELL ARCP market cap $7.2 billion click here REITonAIM announces a new report on Mack-Cali Realty CLI $18 Ranking: SELL 12/16/2014 CLI $18 Mack-Cali Realty CLI traded DOWN ($0.31) per share to close DOWN (2%) day CLI stock traded DOWN (16%) year to date for 2014, underperforming Office REITs, trading UP +18% for 2014 CLI availability of new supply in downtown NYC office market impacting demand for office space in Jersey City Harborside locations CLI now projects same property NOI to decrease DOWN (8.6%) on cash basis for 2015, reflecting recent tenant losses CLI hopes 2015 may be "inflection point", ending 5 year FFO decline CLI divesting low return office properties, while investing in residential properties in target markets CLI reduced dividends DOWN (33%) during 2013 and DOWN (50%) during 2014 CLI provides current annual dividend yield of 3.3% CLI an Office REIT with a portfolio of office properties concentrated in NY and NJ CLI we rank 4 SELL CLI market cap $1.8 billion click here REITonAIM announces a new report on Equity Commonwealth EQC $24 Ranking: SELL 12/16/2014 EQC $24 Equity Commonwealth EQC traded DOWN ($0.48) per share to close DOWN (2%) day EQC stock traded UP +4% year to date for 2014, underperforming Office REITs, trading UP +18% for 2014 EQC stock has not made progress since change of control through unfriendly proxy vote, demonstrating that investors would be better served by a takeover than by continuing to own a REIT in the midst of restructuring EQC faces challenge from loss of income from divestitures and from sale of investment in Select Income REIT SIR EQC operating under new management, CBRE Group, appointed by Equity Group International following unfriendly change of control through proxy battle during summer 2014 EQC has not paid cash dividends on common stock since recent change in corporate control, with permanent reduction of dividends expected due to portfolio restructuring EQC an Office REIT with a diverse portfolio of office and commercial properties EQC we rank 4 SELL EQC market cap $3.2 billion click here REITonAIM announces a new report on Hospitality Properties Trust HPT $30 Ranking: BUY 12/16/2014 HPT $30 Hospitality Properties Trust HPT Hotel REITs with portfolios of highway hotels appear particularly well positioned to benefit from Holiday travel during 2014 HPT availability of gasoline below $2.30 per gallon on east coast promotes holiday driving HPT projection by AAA indicates as many as 99 million Americans to travel more than 50 miles for Holiday vists, UP +4% from 2013 HPT weekend calendar also favorable, as both Christmas and New Years Day fall on Thursdays, tempting travelers to "take a long weekend" HPT Hotel REITs normally trade inversely to oil prices, as lower price of gasoline enables more spending on extra room nights and ancillary charges, increasing occupancy and profitability for hotels HPT lower price of gasoline may adjust margin for key tenant TravelCenters of America TA, but has no impact on rents paid to HPT HPT FFO for 3Q 2014 increased UP +13% due to higher room rates and improved occupancy HPT continues under external management by RMR (Reit Management & Research LLC), a real estate management company that formerly managed Equity Commonwealth EQC (previously CommonWealth REIT CWH) and still manages Government Properties Income Trust GOV, Select Income REIT SIR, TravelCenters of America TA and Senior Housing Properties Trust SNH HPT current annual dividend yield 6.4% HPT a Hotel REIT with a portfolio concentrated in highway hotels and travel centers HPT we rank 2 BUY HPT market cap $4.6 billion click here REITonAIM announces a new report on Kimco Realty KIM $25 Ranking: BUY 12/16/2014 KIM $25 Kimco Realty KIM to invest $925 million to buy out joint venture partner in portfolio of 39 retail properties KIM to acquiire remaining 67% joint venture interest from Blackstone Real Estate Partners VII for $925 million, adding to returns from 97% occupied portfolio of grocery anchored shopping centers and power centers KIM acquisition of joint venture interest to add to FFO starting 1Q 2015 KIM increased guidance for FFO for 2014 to indicate growth UP +5%-+6% KIM recently increased dividend by 7%, bringing current annual dividend yield to 3.8% KIM a Retail REIT with a diverse portfolio of retail properties, including neighborhood and community shopping centers and big box retail, as well as grocery anchored shopping centers KIM we rank 1 BUY KIM market cap $10.4 billion KIM an S&P 500 Index REIT click here REITonAIM announces a new report on Potlatch PCH $41 Ranking: BUY 12/16/2014 PCH $41 Potlatch PCH news of moderation in homebuilder confidence provides little guidance for stocks of Specialty Timber REITs PCH report from NAHB (National Association of Home Builders) found builder confidence DOWN (1%) to 57% for December 2014, moderating gain of UP +4% previously reported for November 2014 PCH comments from NAHB Chief Economist David Crowe indicate index of homebuilder confidence viewed as "stabilized in the mid to high 50% range for the past 6 months", consistent with recovery at "a steady gradual pace" PCH Specialty Timber REITs rely on new home construction to drive demand for lumber and structural building products PCH management encouraged by higher export demand for southern pine sawlogs and pulpwood, driven by higher export demand for pellets for "green energy" consumption at UK utilities PCH pending $384 million timberlands acquisition to be immediately accretive to FAD (funds available for distribution) PCH provides current dividend yield of 3.7% PCH a Specialty Timber REIT with a portfolio of timberlands and sawlog mills PCH we rank 2 BUY PCH market cap $1.7 billion click here REITonAIM announces a new report on Sun Communities SUI $60 Ranking: BUY 12/16/2014 SUI $60 Sun Communities SUI traded UP $1.14 per share to close UP +2% day SUI stock traded UP +40% year to date for 2014, outperforming Residential REITs, trading UP +31% for 2014 SUI Residential Manufactured Home REITs enjoying similar rally to Residential Apartment REITs, as positive employment trends support occupancy and rental rates SUI pending $1.32 billion acquisition of American Land Lease properties from Green Courte Partners LLC expected to close by January 2015, renewing portfolio growth SUI guidance for 2014 FFO reflects recent divestitures, now projecting growth UP +4%-+6% SUI provides current annual dividend yield of 4.3% SUI a Residential Manufactured Home REIT with a portfolio of manufactured home communities SUI we rank 2 BUY SUI market cap $2.6 billion click here REITonAIM announces a new report on Washington REIT WRE $27 Ranking: HOLD 12/16/2014 WRE $27 Washington REIT WRE traded UP $0.47 per share to close UP +2% day WRE stock traded UP +16% year to date for 2014, underperforming Office REITs, trading UP +18% for 2014 WRE relief over conclusion of federal budget process supports rebound in stock of WRE WRE exposure to metropolitan DC area represents entire portfolio of office buildings, residential properties and retail centers WRE expected to announce new CFO hire during 4Q 2014 WRE latest guidance for FFO for 2014 indicates decline DOWN (9%)-(11%) due to divestiture of medical office portfolio during 4Q 2013 WRE stock price supported by current annual dividend yield of 4.4% WRE an Office REIT with a diverse portfolio of office, retail, and residential properties concentrated in the metropolitan DC area WRE we rank 3 HOLD WRE market cap $1.8 billion click here REITonAIM announces a new report on Weyerhaeuser WY $36 Ranking: BUY 12/16/2014 WY $36 Weyerhaeuser WY Specialty Timber REITs may lose momentum of stock price performance on news of lower building permits for new homes and seasonal decline for new home starts WY report from US Census Bureau and HUD (US Department of Housing and Urban Development) showed single family home construction starts DOWN (5.4%) from revised number for previous month to annual pace of 677,000 units for November 2014, showing decline DOWN (4.6%) from previous year WY total building permits (including apartments) also decreased, showing decline DOWN (5.2%) to annual pace of 1.035 million for November 2014 from revised number for previous month, now showing decline DOWN (0.2%) from previous year WY recent management comments at Investor Day last week noted lack of momentum for new home starts, despite upbeat homebuilder confidence WY priority for cash is to deliver higher shareholder returns through dividends and share repurchase WY recently increased dividend by 32%, now providing current annual dividend yield of 3.3% WY a Specialty Timber REIT with a portfolio of timberlands. as well as wood and cellulose fiber manufacturing plants WY we rank 2 BUY WY market cap $18.7 billion WY an S&P 500 Index REIT click here