Time New York: Thu 19 Oct 12:22 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Duke Realty’s Properties Record Solid Demand in Cincinnati

Zacks

Duke Realty Corporation’s DRE properties in Cincinnati have been experiencing solid demand for space. This has helped the company sign more than 1.1 million square feet of leases in third-quarter 2017, bringing the tally for the year to 2.5 million.

Demand for space has been emanating from both new and existing tenants. The company has signed new leases with several new customers, while existing tenants have opted for renewals and expansions as they found the quality and location of buildings appropriate.

New leases signed in the third quarter include the 211,444-square-foot lease with an energy management and automation specialist in Union Centre Industrial 5855, as well as a 206,400-square-foot lease with an independent aerospace maintenance, repair and overhaul provider in Mosteller 11400.

Moreover, a renewal and expansion lease has been signed with Aero Fulfillment for 361,875-square-foot space in Union Centre Industrial 6019. Also, a renewal lease was signed with Valvoline for 321,464-square-foot of space in World Park Union Centre 9451.

Notably, the industrial asset category has grabbed attention on the back of robust demand, recovering economy and job market, strengthening e-commerce market, and healthy manufacturing environment.

Additionally, Duke Realty remains well poised to capitalize on the healthy fundamentals in the industrial real estates. In fact, the company enjoys ownership and operation of around 9.8 million square feet of industrial properties in the Cincinnati metro area, which helps it leverage on the healthy trend. Furthermore, Duke Realty owns and operates about 138 million rentable square feet of bulk industrial properties in 21 major U.S. logistics markets, across the nation.

Further, the company has nearly completed the previously announced sale of its medical office business in the second quarter. This strategic move helps simplify the company’s business model and turn into a leading domestic pure play industrial real estate investment trust (REIT). However, rate hike and dilutive impact of asset sales increase its woes.

Duke Realty currently has a Zacks Rank #3 (Hold). Also, year to date, shares of the company have climbed 9.3%, outperforming 3.4% growth recorded by the industry.



Stocks to Consider

Better-ranked stocks in the REIT space include DCT Industrial Trust Inc. DCT, Prologis Inc. PLD and CoreSite Realty Corporation COR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While DCT Industrial and Prologis have expected long-term growth rates of 4.1% and 4.6%, respectively, the expected long-term growth rate for CoreSite Realty is currently pegged at 16%.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 – Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 – Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.