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CHICAGO--(Business Wire)--
Zacks.com releases the latest Industry Outlook. Today, Zacks Equity Research
discusses the REITs Industry, including American Capital Agency Corp. (Nasdaq:
AGNC), Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE), Vornado Realty Trust
(NYSE: VNO) and Simon Property Group Inc. (NYSE: SPG).
A synopsis of today`s Industry Outlook is presented below. The full article can
be read at http://at.zacks.com/?id=2678.
The credit freeze will have a positive effect on commercial real estate down the
road; new office, apartment and retail construction has slowed considerably,
which will benefit owners in a couple of years. Many companies that we cover
have stopped all-new construction.
In this environment, we like well-capitalized companies that have adequate
liquidity and manageable near-term debt maturities. Currently, we are bullish on
American Capital Agency Corp. (Nasdaq: AGNC), a mortgage REIT that invests
exclusively in agency securities for which the principal and interest payments
are guaranteed by U.S. government agencies like Ginnie Mae, Fannie Mae (NYSE:
FNM) and Freddie Mac (NYSE: FRE). During the second quarter of 2009, American
Capital reported net spread of 3.66% with 39.8% return on equity (ROE), and is
one of the few companies to have increased the dividend.
Another stock worth mentioning is Vornado Realty Trust (NYSE: VNO), the largest
publicly traded office REIT in the New York region concentrating on Class A
office properties. The core properties of Vornado are still performing at a high
level, maintaining strong occupancies and increasing rents in most property
formats. We believe this puts the company well ahead of many competitors, and
warrants upside potential.
We would also like to mention Simon Property Group Inc. (NYSE: SPG), the largest
publicly traded retail real estate company in North America, with assets in
almost all retail distribution channels. The geographic and product diversity of
the company insulates it from market volatility to a great extent and provides a
steady source of income. Furthermore, Simon Property`s international presence
gives it a more sustainable long-term growth story than its domestically focused
peers.
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visiting http://at.zacks.com/?id=2679.
About Zacks
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year-to-date periods are the linked monthly total returns (price changes +
dividends) of equal weighted hypothetical portfolios, consisting of those stocks
with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction
costs. These are not the returns of actual portfolios. The hypothetical
portfolios were created at the beginning of each month from Jan 1988 forward
based on the values of the Zacks Rank available to Zacks' clients before the
beginning of each month.
The portfolios created monthly from 1988 through September 2006 exclude ADRS and
are comprised of stocks that have the indicated Zacks Rank and were covered by
at least two analysts at the time of the stocks inclusion in the portfolio.
Starting in October 2006 and going forward, the portfolios are comprised of all
stocks with the indicated Zacks Rank and do not exclude ADRs, which is more
reflective of the list of stocks that customers will find on the Zacks web
sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These
performance numbers have been audited from 1995 through 2003 by Autschuler
Melovan, a division of American Express Financial.
Zacks.com
Mark Vickery
312-265-9380
Visit: www.zacks.com
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