BPO, MAC And PSA, Pushing Real Estate Industry Downward

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 65 points (-0.4%) at 15,111 as of Friday, June 14, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Real Estate industry currently sits up 0.4% versus the S&P 500, which is down 0.25. On the negative front, top decliners within the industry include American Capital Agency ( AGNC), down 0.74, and Plum Creek Timber ( PCL), down 0.71. Top gainers within the industry include Strategic Hotels & Resorts ( BEE), up 7.5%, Brookfield Residential Properties ( BRP), up 5.0%, Chimera Investment Corporation ( CIM), up 3.2%, Howard Hughes ( HHC), up 2.9% and SL Green Realty Corporation ( SLG), up 1.9%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Brookfield Office Properties ( BPO) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Brookfield Office Properties is down $0.21 (-1.2%) to $16.96 on light volume Thus far, 320,703 shares of Brookfield Office Properties exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $16.96-$17.22 after having opened the day at $17.14 as compared to the previous trading day's close of $17.17.

Brookfield Properties Corporation is a publicly owned real estate investment firm. The firm engages in the ownership, development, and management of premier commercial properties. It also provides ancillary real estate service businesses, such as tenant service and amenities. Brookfield Office Properties has a market cap of $8.5 billion and is part of the financial sector. The company has a P/E ratio of 8.0, below the S&P 500 P/E ratio of 17.7. Shares are up 0.9% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Brookfield Office Properties a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Brookfield Office Properties as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Brookfield Office Properties Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Macerich Company ( MAC) is down $0.48 (-0.8%) to $62.32 on light volume Thus far, 510,412 shares of Macerich Company exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $62.25-$63.29 after having opened the day at $62.63 as compared to the previous trading day's close of $62.80.

The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. Macerich Company has a market cap of $8.4 billion and is part of the financial sector. The company has a P/E ratio of 32.8, above the S&P 500 P/E ratio of 17.7. Shares are up 7.7% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Macerich Company a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Macerich Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share. Get the full Macerich Company Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Public Storage ( PSA) is down $1.13 (-0.7%) to $151.22 on light volume Thus far, 228,414 shares of Public Storage exchanged hands as compared to its average daily volume of 616,400 shares. The stock has ranged in price between $151.04-$154.25 after having opened the day at $151.92 as compared to the previous trading day's close of $152.35.

Public Storage operates as a real estate investment trust (REIT). It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. Public Storage has a market cap of $25.4 billion and is part of the financial sector. The company has a P/E ratio of 35.9, above the S&P 500 P/E ratio of 17.7. Shares are up 5.1% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Public Storage a buy, 3 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Public Storage as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Public Storage Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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