A significant proportion of U.S. real estate investment trusts reported higher funds from operations per share than consensus analyst estimates for the second quarter.
The S&P Global Market Intelligence analysis included U.S. equity REITs that trade on the Nasdaq, NYSE or NYSE American with market capitalization greater than $200 million and with three or more Market Intelligence FFO-per-share estimates for the three months ended June 30.
In total, 94 out of 130 analyzed REITs topped their consensus FFO-per-share estimates for the recent quarter, 18 REITs reported FFO per share in line with analyst estimates and an equal number of REITs fell short.
The two data center REITs beat their estimates for the quarter. Digital Realty Trust Inc. reported FFO of $1.72 per share for the second quarter, 4.2% above its consensus estimate of $1.65 per share, while Equinix Inc. reported FFO of $5.46 per share for the period, 8.1% above its consensus estimate of $5.05 per share.
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In the hotel sector, 14 of the 15 analyzed REITs beat expectations. Service Properties Trust reported FFO of 54 cents per share, up 45.9% from its consensus estimate of 37 cents per share. Similarly, Braemar Hotels & Resorts Inc.'s FFO stood at 37 cents per share, 32.1% above its consensus estimate of 28 cents per share.
The retail sector had 22 analyzed REITs that beat expectations out of 26. Net lease single-tenant REIT Getty Realty Corp. reported FFO of 83 cents per share for the second quarter, 72.9% above its consensus estimate of 48 cents per share. Net lease single-tenant REIT Alpine Income Property Trust Inc. and shopping center-focused Kite Realty Group Trust beat their consensus FFO-per-share estimates by 14.6% and 14.0%, respectively.
Healthcare REIT Diversified Healthcare Trust reported FFO at negative 4 cents per share against a consensus estimate of negative 1 cent per share. Multifamily REIT BRT Apartments Corp. and shopping center-focused Acadia Realty Trust were also among the other REITs to report FFO per share below analyst estimates.
