3 Stocks Pushing The Real Estate Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Real Estate industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.6%. Laggards within the Real Estate industry included Alto Palermo ( APSA), down 2.7%, Institutional Financial Markets ( IFMI), down 2.8%, Amrep ( AXR), down 2.2%, Supertel Hospitality ( SPPR), down 8.8% and American Realty Investors ( ARL), down 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Rouse Properties ( RSE) is one of the companies that pushed the Real Estate industry lower today. Rouse Properties was down $0.70 (4.1%) to $16.41 on light volume. Throughout the day, 212,977 shares of Rouse Properties exchanged hands as compared to its average daily volume of 321,900 shares. The stock ranged in price between $16.39-$17.18 after having opened the day at $17.18 as compared to the previous trading day's close of $17.11.

Rouse Properties, Inc. owns and manages regional malls in the United States. Its portfolio consists of 30 regional malls in 19 states totaling approximately 21 million square feet of retail and ancillary space. The company is based in New York, New York. Rouse Properties, Inc. Rouse Properties has a market cap of $998.9 million and is part of the financial sector. Shares are down 22.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Rouse Properties a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Rouse Properties as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RSE go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 81.7% when compared to the same quarter one year ago, falling from -$13.59 million to -$24.69 million.
  • The share price of ROUSE PROPERTIES INC has not done very well: it is down 18.15% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ROUSE PROPERTIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ROUSE PROPERTIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ROUSE PROPERTIES INC continued to lose money by earning -$0.92 versus -$1.29 in the prior year. This year, the market expects an improvement in earnings (-$0.07 versus -$0.92).
  • Net operating cash flow has significantly increased by 279.25% to $16.00 million when compared to the same quarter last year. In addition, ROUSE PROPERTIES INC has also vastly surpassed the industry average cash flow growth rate of 8.68%.

You can view the full analysis from the report here: Rouse Properties Ratings Report

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