BofA Analyst Doubles Down On Veris Residential Growth, Downgrades Sun Communities - Here's Why
BofA Analyst Doubles Down On Veris Residential Growth, Downgrades Sun Communities - Here's Why
The analyst says that VRE is excelling in its key initiatives: capital allocation, portfolio optimization, and balance sheet management.BofA Securities analyst Joshua Dennerlein revised ratings on residential REITs, Veris Residential, Inc. (NYSE:VRE) and Sun Communities, Inc. (NYSE:SUI).
美銀證券分析師喬舒亞·丹納林對居住信託進行了評級調整，分別是紐約市信託公司（NYSE：VRE）和Sun Communities公司（紐約交易所：SUI）。
VRE: The analyst upgraded the company to Buy from Neutral and raised the price target to $23 from $20.
VRE：分析師將該公司的評級從中立調升至買入，並將價格目標從20美元提高至23美元。
The analyst notes that the market is undervaluing VRE's internal growth potential and its ability to successfully execute optimization initiatives.
分析師指出市場低估了VRE內部增長潛力以及其成功執行優化舉措的能力。
The analyst says that VRE is excelling in its key initiatives: capital allocation, portfolio optimization, and balance sheet management.
分析師表示，VRE在其關鍵舉措方面表現出色：資本分配、投資組合優化和資產負債表管理。
The analyst sees the greatest upside from capital recycling to reduce leverage, a strategy that distinguishes VRE in the Residential REIT sector.
分析師認爲資本循環將爲減少槓桿提供最大上漲空間，這一策略使VRE在住宅信託板塊中獨具特色。
The analyst raised the 2025 FFO estimate to $0.65 (from $0.59) and 2026 FFO estimate to $0.71 (from $0.63). Dennerlein forecasts SS NOI growth of 5.9% in 2025, significantly higher than the Street's 2.36%.
分析師將2025年FFO預估提高至0.65美元（原0.59美元），將2026年FFO預估提高至0.71美元（原0.63美元）。丹納林預測2025年SS淨營業收入增長爲5.9%，遠遠高於街頭平均水平的2.36%。
Given VRE's apartment portfolio, the analyst projects SS revenue growth to outperform the peer average, projecting 4.7% compared to the apartment sector average of 3.0%.
鑑於VRE的公寓組合，分析師預計SS營收增長將優於同行平均水平，預計爲4.7%，而公寓板塊平均水平爲3.0%。
Additionally, the analyst anticipates below-average SS expense growth of 1.8%, well below the apartment sector average of 4.0%, as VRE continues to optimize its operating platform.
此外，分析師預計SS費用增長將低於平均水平，爲1.8%，遠低於公寓板塊的4.0%，因爲VRE繼續優化其運營平台。
SUI: Dennerlein downgraded the company to Underperform from Neutral and lowered the price target to $114 from $147.
SUI：Dennerlein將該公司的評級從中立下調至表現不佳，將目標價從147美元下調至114美元。
The analyst expects SUI to underperform until management changes are finalized, governance concerns are addressed, and a clear strategy is set by the new CEO.
分析師預計SUI將在管理層變動敲定、治理問題得到解決以及新CEO制定清晰戰略之前表現不佳。
During the earnings call, SUI's CEO responded to a recent short report highlighting concerns over accounting and governance, notes the analyst.
在業績會期間，SUI的CEO回應了最近一份開空報告，強調了對會計和治理方面的擔憂，分析師指出。
The analyst says that, however, in the discussions with investors, the focus was primarily on governance, and they were 'disappointed' by management's avoidance of the issue.
分析師表示，然而，在與投資者的討論中，重點主要集中在治理方面，他們對管理層迴避這個問題感到「失望」。
Dennerlein believes that company culture plays a crucial role in long-term success and notes that management did not adequately address these concerns.
Dennerlein認爲公司文化在長期成功中發揮着至關重要的作用，並指出管理層未能充分解決這些問題。
SUI provided preliminary rental rate growth projections for 2025 alongside its third-quarter results. Unfortunately, the initial guidance fell short of the expectations, adds the analyst.
SUI提供了2025年租金增長預測以及第三季度業績。不幸的是，初步指引未達預期，分析師補充道。
The analyst reduced the 2025 FFO estimates to $6.93 (from $7.36) and 2026 FFO estimates to $7.19 (from $7.85), while raising the cap rate to 5.5% (from 5.2%).
分析師將2025年FFO預估降至6.93美元（從7.36美元），將2026年FFO預估降至7.19美元（從7.85美元），同時將上限率提高至5.5%（從5.2%）。
Price Action: SUI shares are down 2.59% at $123.83, while VRE shares are up 1.02% at $18.28 at the last check Tuesday.
股價表現：SUI股價下跌2.59%，報123.83美元，而VRE股價上漲1.02%，報18.28美元，截至上週二最後檢查時。
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圖片來自shutterstock
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