BofA Analyst Doubles Down On Veris Residential Growth, Downgrades Sun Communities - Here's Why
BofA Analyst Doubles Down On Veris Residential Growth, Downgrades Sun Communities - Here's Why
The analyst says that VRE is excelling in its key initiatives: capital allocation, portfolio optimization, and balance sheet management.BofA Securities analyst Joshua Dennerlein revised ratings on residential REITs, Veris Residential, Inc. (NYSE:VRE) and Sun Communities, Inc. (NYSE:SUI).
美银证券分析师乔舒亚·丹纳林对居住信托进行了评级调整，分别是纽约市信托公司（NYSE：VRE）和Sun Communities公司（纽约交易所：SUI）。
VRE: The analyst upgraded the company to Buy from Neutral and raised the price target to $23 from $20.
VRE：分析师将该公司的评级从中立调升至买入，并将价格目标从20美元提高至23美元。
The analyst notes that the market is undervaluing VRE's internal growth potential and its ability to successfully execute optimization initiatives.
分析师指出市场低估了VRE内部增长潜力以及其成功执行优化举措的能力。
The analyst says that VRE is excelling in its key initiatives: capital allocation, portfolio optimization, and balance sheet management.
分析师表示，VRE在其关键举措方面表现出色：资本分配、投资组合优化和资产负债表管理。
The analyst sees the greatest upside from capital recycling to reduce leverage, a strategy that distinguishes VRE in the Residential REIT sector.
分析师认为资本循环将为减少杠杆提供最大上涨空间，这一策略使VRE在住宅信托板块中独具特色。
The analyst raised the 2025 FFO estimate to $0.65 (from $0.59) and 2026 FFO estimate to $0.71 (from $0.63). Dennerlein forecasts SS NOI growth of 5.9% in 2025, significantly higher than the Street's 2.36%.
分析师将2025年FFO预估提高至0.65美元（原0.59美元），将2026年FFO预估提高至0.71美元（原0.63美元）。丹纳林预测2025年SS净营业收入增长为5.9%，远远高于街头平均水平的2.36%。
Given VRE's apartment portfolio, the analyst projects SS revenue growth to outperform the peer average, projecting 4.7% compared to the apartment sector average of 3.0%.
鉴于VRE的公寓组合，分析师预计SS营收增长将优于同行平均水平，预计为4.7%，而公寓板块平均水平为3.0%。
Additionally, the analyst anticipates below-average SS expense growth of 1.8%, well below the apartment sector average of 4.0%, as VRE continues to optimize its operating platform.
此外，分析师预计SS费用增长将低于平均水平，为1.8%，远低于公寓板块的4.0%，因为VRE继续优化其运营平台。
SUI: Dennerlein downgraded the company to Underperform from Neutral and lowered the price target to $114 from $147.
SUI：Dennerlein将该公司的评级从中立下调至表现不佳，将目标价从147美元下调至114美元。
The analyst expects SUI to underperform until management changes are finalized, governance concerns are addressed, and a clear strategy is set by the new CEO.
分析师预计SUI将在管理层变动敲定、治理问题得到解决以及新CEO制定清晰战略之前表现不佳。
During the earnings call, SUI's CEO responded to a recent short report highlighting concerns over accounting and governance, notes the analyst.
在业绩会期间，SUI的CEO回应了最近一份开空报告，强调了对会计和治理方面的担忧，分析师指出。
The analyst says that, however, in the discussions with investors, the focus was primarily on governance, and they were 'disappointed' by management's avoidance of the issue.
分析师表示，然而，在与投资者的讨论中，重点主要集中在治理方面，他们对管理层回避这个问题感到“失望”。
Dennerlein believes that company culture plays a crucial role in long-term success and notes that management did not adequately address these concerns.
Dennerlein认为公司文化在长期成功中发挥着至关重要的作用，并指出管理层未能充分解决这些问题。
SUI provided preliminary rental rate growth projections for 2025 alongside its third-quarter results. Unfortunately, the initial guidance fell short of the expectations, adds the analyst.
SUI提供了2025年租金增长预测以及第三季度业绩。不幸的是，初步指引未达预期，分析师补充道。
The analyst reduced the 2025 FFO estimates to $6.93 (from $7.36) and 2026 FFO estimates to $7.19 (from $7.85), while raising the cap rate to 5.5% (from 5.2%).
分析师将2025年FFO预估降至6.93美元（从7.36美元），将2026年FFO预估降至7.19美元（从7.85美元），同时将上限率提高至5.5%（从5.2%）。
Price Action: SUI shares are down 2.59% at $123.83, while VRE shares are up 1.02% at $18.28 at the last check Tuesday.
股价表现：SUI股价下跌2.59%，报123.83美元，而VRE股价上涨1.02%，报18.28美元，截至上周二最后检查时。
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图片来自shutterstock
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