DCT Industrial Slips After In-Line Quarter

DENVER ( TheStreet) -- Shares of DCT Industrial Trust ( DCT) dipped Wednesday after the real estate investment trust reported an in-line fourth quarter but maintained a 2011 outlook with a fair amount of downside to Wall Street's consensus view.

The company posted fourth-quarter funds from operations of 10 cents per share late Tuesday, in line with the average analysts' estimate. Funds from operations, or FFO, is a performance figure generally used by REITs to define cash flow from operations.


For 2011, however, the REIT reiterated an outlook for FFO ranging from 33 to 38 cents per share. The company also forecast a loss of 7 to 14 cents per share for the year.

The current average 2011 estimates of analysts polled by Thomson Reuters are for FFO of 37 cents a share and a net loss of 12 cents a share.

The stock was down 11 cents, or 2%, to $5.43 in afternoon trades. Volume of 3.2 million eclipsed the issue's three-month trailing daily average of 2.7 million. Based on Tuesday's regular session close, DCT shares were up 19% in the past year; although they'd pulled back somewhat since hitting a 52-week high of $5.89 on Jan. 27.

The REIT's total consolidated occupancy increased to 87.4% as of Dec. 31, up from 82.7% in the year prior.

DCT maintained its quarterly dividend of 7 cents per share.

DCT, an operator of bulk distribution and light industrial properties, said it completed $79.1 million of acquisitions totally 921,000 square feet of space in the recent quarter, with an additional 884,000 square feet totaling $46.7 million closed in the first month of 2011.

DCT reported that same-store net operating income, or income at properties owned at least one year, declined 6.7% on a cash basis year-over-year.

DCT, which was recently listed among the 10 Top Buy-Rated Real Estate Stocks for 2011 , was upgraded to neutral from underweight last month and its stock price was set at $5, by analysts at JPMorgan Chase.

At that time, JPMorgan analyst Anthony Paolone cited his view that DCT's stock price offered relatively "decent" value to investors for the upgrade. He added that the company's "economically leveraged properties such as industrial should see more of a benefit as the recovery continues to unfold."

Keefe, Bruyette & Woods's Sheila McGrath recently highlighted DCT as one of her top REIT picks, saying that "although the company will continue to be negatively impacted by weak economy, it has the balance sheet strength to navigate through this challenging market and emerge as a beneficiary with external growth opportunities over the next several years."

McGrath said DCT's occupancy rate remains below stability "which we believe should allow for more potential upside as markets recover." McGrath also said that "DCT's internal growth profile can surprise on the upside by driving occupancy and acquisition opportunities are starting to emerge."

-- Written by Miriam Marcus Reimer in New York.

>To contact the writer of this article, click here: Miriam Reimer.

>To follow the writer on Twitter, go to http://twitter.com/miriamsmarket.

>To submit a news tip, send an email to: tips@thestreet.com.

READERS ALSO LIKE:



Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

If you liked this article you might like

Takeover Talk Boosts the Bulls: Cramer's 'Mad Money' Recap (Monday 11/13/17)

Takeover Talk Boosts the Bulls: Cramer's 'Mad Money' Recap (Monday 11/13/17)

DCT Industrial Trust: Cramer's Top Takeaways

DCT Industrial Trust: Cramer's Top Takeaways

Amazon Stock Has Been 'Left on The Table' by Trump Rally: More Squawk From Jim Cramer

Amazon Stock Has Been 'Left on The Table' by Trump Rally: More Squawk From Jim Cramer

Jim Cramer's 'Mad Money' Recap: Oil Rally, China Issues Are Becoming Risk Factors

Jim Cramer's 'Mad Money' Recap: Oil Rally, China Issues Are Becoming Risk Factors

Trade These 4 Breakout Stocks

Trade These 4 Breakout Stocks