Earnings Season Preview: Key Movers in REIT Sector

Attention investors! This earnings season, focus on stocks likely to beat expectations. Welltower, Equinix, Equity Residential, and W. P. Carey show promising signs as REITs thrive amid challenging interest rates.

Date: 26-04-2025

AI Rating: 8

Overview of Earnings Influences - The earnings season is pivotal for investors, especially those focusing on real estate investment trusts (REITs), where a positive earnings surprise can drive stock prices up significantly. Specifically, stocks like Welltower (WELL), Equinix (EQIX), Equity Residential (EQR), and W. P. Carey (WPC) are set to report earnings soon, and their anticipated performance may influence the broader REIT sector.

Earnings Per Share (EPS) and Revenue Growth - Welltower, with a Zacks Rank of 2 and an Earnings ESP of +1.69%, is pegged for a first-quarter normalized funds from operations (FFO) per share of $1.15, a 13.9% increase year-over-year. The expected revenue of $2.37 billion indicates a robust 27.6% growth compared to last year. This consistent outperformance in previous quarters showcases investor confidence and could lead to stock price appreciation following the earnings release.

Equinix carries a Zacks Rank of 3 and holds an Earnings ESP of +1.41%, with consensus estimates for quarterly revenues at $2.22 billion, which is a 4.18% increase from the prior year. Apart from demonstrating resilience amid market changes, Equinix’s strategic focus on high-demand data center infrastructures should ensure stable growth.

Equity Residential also displays a healthy outlook with an Earnings ESP of +0.75%. The Zacks Consensus Estimate suggests a 4.93% increase in quarterly revenues to $766.82 million compared to last year, backed by strong demand in urban and suburban markets.

Lastly, W. P. Carey holds an Earnings ESP of +0.56% and expects a revenue growth of 7.29%, supporting a favorable positioning in the market, given its diversified portfolio and strong lease agreements.

Conclusion - The current interest rate environment poses challenges, yet these REITs are positioned well. With signs of strong earnings forecasts and expected revenue growth, they have the potential to draw investor interest, driving stock prices higher post-earnings announcements.

Stocks: WELL EQIX EQR WPC