Aviv REIT Inc Stock Upgraded (AVIV)

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.

NEW YORK ( TheStreet) -- Aviv REIT (NYSE: AVIV) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 23.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $28.60 million or 12.32% when compared to the same quarter last year. In addition, AVIV REIT INC has also vastly surpassed the industry average cash flow growth rate of -39.25%.
  • When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AVIV REIT INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for AVIV REIT INC is rather high; currently it is at 50.79%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AVIV's net profit margin of 15.65% is significantly lower than the industry average.
  • 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 31.8% when compared to the same quarter one year ago, falling from $9.92 million to $6.76 million.

No company description available. Aviv REIT has a market cap of $1.29 billion and is part of the financial sector and real estate industry. Shares are up 14% year to date as of the close of trading on Thursday.

You can view the full Aviv REIT Ratings Report or get investment ideas from our investment research center.

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

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