Q4 2023 has brought mixed results for Real Estate Investment Trusts (REITs), with several companies reporting their earnings recently. Among them, Veris Residential (NYSE: VRE) recorded disappointing earnings, falling short of analysts’ expectations. According to data released on Monday, Veris reported earnings per share (EPS) at $-0.13, with revenues totaling $68.08 million. This contrasts with analyst predictions which anticipated EPS at $-0.11, based on expected revenues of $67.36 million.
Similarly, Apartment Invest (NYSE: AIV) disclosed its fourth-quarter earnings, reporting EPS of $-0.08 with revenues reaching $54.2 million. Analysts had predicted EPS of $-0.12 based on anticipated revenues of $53.11 million. Following the earnings disclosure, shares of Apartment Invest rose slightly, by 0.22%, to close at $8.95.
On the other hand, Welltower executed solid performance during this earnings season, reporting EPS of $0.19, though this fell short of the estimated $0.41, with actual revenues at $2.25 billion, against forecasts of $2.12 billion. This divergence highlights varying levels of market performance among the REITs.
Equinix also reported earnings for Q4, which fell below expectations. The company’s fourth-quarter EPS was $-0.14, and it generated $2.26 billion in revenue. This missed analyst projections, which had suggested EPS of about $2.75 on revenues estimated at $2.28 billion.
Conversely, FARO (NASDAQ: FARO) surprised the market positively with earnings exceeding expectations. FARO reported EPS of $0.50 and revenues of $93.54 million, surpassing analysts' forecasts of $0.31 EPS on revenues of $91.55 million. Following this announcement, FARO shares jumped by 5.87%, ascending to $28.66.
This earnings season reflects the mixed results across the REIT sector, indicating varying impacts from economic conditions. Companies such as Veris Residential and Apartment Invest faced challenges meeting expectations, signifying potential headwinds for these firms moving forward.
Despite the challenges, the sector shows resilience with others, like FARO, outperforming analyst expectations and demonstrating growth. Investors will likely remain cautious, observing how external economic factors will influence future earnings reports.
For continuous updates on these earnings reports and more from the financial markets, refer to the investing calendar available through Investing.com.