As real estate investment trusts (REITs) display resilience following the Federal Reserve’s indication of potential rate cuts in 2024, JP Morgan analysts have taken swift action by upgrading six REITs spanning various subsectors. This positive start to the week sees all six REITs transitioning from a Neutral to an Overweight rating, reflecting optimism about their performance in the coming months.
EPR Properties (NYSE: EPR): Kansas City-based EPR Properties, a diversified experiential REIT, owns and manages a portfolio of 359 properties, including movie theaters, amusement parks, and fitness centers. Despite a recent dividend reduction, the stock offers an attractive 11.5% yield. Analyst Anthony Paolone upgraded EPR Properties from Neutral to Overweight, setting a price target of $51.
Broadstone Net Lease Inc. (NYSE: BNL): Rochester-based Broadstone Net Lease, a diversified REIT with a net-lease strategy, boasts a portfolio of 800 properties across 44 states and Canadian provinces. CEO John Moragne took charge in January 2023. Analyst Paolone upgraded Broadstone Net Lease from Neutral to Overweight, establishing a price target of $19.
Cousins Properties Inc. (NYSE: CUZ): Atlanta-based Cousins Properties, an office REIT, focuses on Class A office towers in high-growth Sun Belt markets. The company commands rents 24% higher than the Class A average in its core markets. Paolone upgraded Cousins Properties from Neutral to Overweight, increasing the price target to $27 from $26.
Tanger Inc. (NYSE: SKT): Formerly Tanger Outlet Centers, Greensboro-based Tanger Inc. is a retail REIT with 39 shopping centers and outlet malls. Recent acquisitions and a robust occupancy rate of 98% contribute to its appeal. Analyst Michael Mueller upgraded Tanger Inc. from Neutral to Overweight, with a revised price target of $29.
Welltower Inc. (NYSE: WELL): Toledo-based Welltower is a healthcare REIT with a portfolio of 2,017 properties, focusing on housing for seniors and medical properties. Analyst Mueller upgraded Welltower from Neutral to Overweight, setting a new price target of $99, up from $92.
Prologis Inc. (NYSE: PLD): San Francisco-based Prologis, an industrial REIT, manages approximately 1.2 billion square feet in industrial logistics properties globally. Despite a recent insider sale, the company exhibits strong appreciation among REIT stocks. Analyst Mueller upgraded Prologis from Neutral to Overweight, adjusting the price target to $148 from $123.
Investors are advised to exercise due diligence and not solely rely on analyst ratings for their investment decisions, as analysts’ predictions are correct about 50% of the time.
