3 Stocks Pushing The Real Estate Industry Lower

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The Real Estate industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.1%. Laggards within the Real Estate industry included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 4.3%, Vestin Realty Mortgage I ( VRTA), down 4.7%, Amrep ( AXR), down 1.9%, Vestin Realty Mortgage II ( VRTB), down 6.5% and Maui Land & Pineapple ( MLP), down 3.5%.

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

Kennedy-Wilson Holdings ( KW) is one of the companies that pushed the Real Estate industry lower today. Kennedy-Wilson Holdings was down $0.89 (3.4%) to $25.08 on heavy volume. Throughout the day, 469,960 shares of Kennedy-Wilson Holdings exchanged hands as compared to its average daily volume of 275,000 shares. The stock ranged in price between $25.07-$26.15 after having opened the day at $26.11 as compared to the previous trading day's close of $25.97.

Kennedy-Wilson Holdings, Inc. operates as a real estate investment and services company in the United States, the United Kingdom, Ireland, Spain, and Japan. The company operates in two segments, KW Investments and KW Services. Kennedy-Wilson Holdings has a market cap of $2.5 billion and is part of the financial sector. Shares are up 16.7% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Kennedy-Wilson Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Kennedy-Wilson Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on KW go as follows:

  • KW's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 151.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 9700.0% when compared to the same quarter one year prior, rising from -$0.40 million to $38.40 million.
  • The gross profit margin for KENNEDY-WILSON HOLDINGS INC is currently very high, coming in at 76.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 41.83% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 2650.06% to $102.00 million when compared to the same quarter last year. In addition, KENNEDY-WILSON HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -1.19%.
  • Powered by its strong earnings growth of 1366.66% and other important driving factors, this stock has surged by 39.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

You can view the full analysis from the report here: Kennedy-Wilson Holdings Ratings Report

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At the close, Maui Land & Pineapple ( MLP) was down $0.23 (3.5%) to $6.35 on light volume. Throughout the day, 6,743 shares of Maui Land & Pineapple exchanged hands as compared to its average daily volume of 11,300 shares. The stock ranged in price between $6.25-$6.59 after having opened the day at $6.50 as compared to the previous trading day's close of $6.58.

Maui Land & Pineapple Company, Inc., together with its subsidiaries, develops, sells, and manages residential, resort, commercial, and industrial real estate properties. The company operates through four segments: Real Estate, Leasing, Utilities, and Resort Amenities. Maui Land & Pineapple has a market cap of $123.0 million and is part of the financial sector. Shares are up 8.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Maui Land & Pineapple as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from TheStreet Ratings analysis on MLP 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 Management & Development industry. The net income has significantly decreased by 42.6% when compared to the same quarter one year ago, falling from $0.83 million to $0.48 million.
  • 49.77% is the gross profit margin for MAUI LAND & PINEAPPLE CO which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • Net operating cash flow has significantly increased by 252.23% to $1.98 million when compared to the same quarter last year. In addition, MAUI LAND & PINEAPPLE CO has also vastly surpassed the industry average cash flow growth rate of -1.19%.
  • MAUI LAND & PINEAPPLE CO reported significant earnings per share improvement 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 two years. During the past fiscal year, MAUI LAND & PINEAPPLE CO continued to lose money by earning -$0.14 versus -$0.27 in the prior year.
  • MLP's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 96.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

You can view the full analysis from the report here: Maui Land & Pineapple Ratings Report

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Amrep ( AXR) was another company that pushed the Real Estate industry lower today. Amrep was down $0.10 (1.9%) to $5.10 on average volume. Throughout the day, 10,684 shares of Amrep exchanged hands as compared to its average daily volume of 10,300 shares. The stock ranged in price between $5.02-$5.33 after having opened the day at $5.33 as compared to the previous trading day's close of $5.20.

AMREP Corporation, through its subsidiaries, is engaged in media services and real estate businesses in the United States. Amrep has a market cap of $43.5 million and is part of the financial sector. Shares are down 25.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Amrep as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on AXR go as follows:

  • The gross profit margin for AMREP CORP is currently extremely low, coming in at 9.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.32% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$7.19 million or 579.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AXR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.89%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 8.6% when compared to the same quarter one year prior, going from -$2.51 million to -$2.29 million.
  • 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 Commercial Services & Supplies industry and the overall market, AMREP CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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

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