NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 40.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- WINTHROP REALTY TRUST has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WINTHROP REALTY TRUST turned its bottom line around by earning $0.82 versus -$5.40 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $0.82).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 161.1% when compared to the same quarter one year prior, rising from $3.75 million to $9.79 million.
Operates as a real estate investment trust, headquartered in Boston. As of Dec. 31, 2005, in addition to cash reserves and government securities, the trust primarily owned an office building, commonly referred to as Circle Tower, located in Indianapolis, IN and 16 triple-net lease properties. The company has a P/E ratio of 14, equal to the average real estate industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Winthrop has a market cap of $370.4 million and is part of the
industry. Shares are up 9.9% year to date as of the close of trading on Tuesday.
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