Acadia Realty Trust Stock Upgraded (AKR)
NEW YORK (
)
(NYSE:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The revenue fell significantly faster than the industry average of 17.4%. Since the same quarter one year prior, revenues fell by 20.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Even though the current debt-to-equity ratio is 1.02, it is still below the industry average, suggesting that this level of debt is acceptable within the Real Estate Investment Trusts (REITs) industry.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income increased by 12.5% when compared to the same quarter one year prior, going from $7.01 million to $7.89 million.
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Acadia Realty Trust, a real estate investment trust (REIT), engages primarily in the ownership, acquisition, redevelopment, and management of retail properties in the United States. The company has a P/E ratio of 36.9, above the average real estate industry P/E ratio of 10.6 and above the S&P 500 P/E ratio of 17.7. Acadia has a market cap of $836.1 million and is part of the
sector and
industry. Shares are up 8.8% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet RatingsStaff
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