U.S. Real Estate Stocks are Making Good Progress

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Apr 30, 2015

The U.S. real estate stocks are making good progress these days. Stocks of certain companies have grown at an unprecedented rate while the growth rate of some has remained relatively lower. The market and financial performance of some companies operating in the U.S. real estate market is discussed in this article.

Alexandria Real Estate Equities Inc. (ARE, Financial): Closely associated with the life sciences industry, Alexandria Real Estate Equities deals in the ownership, redevelopment and acquisition of properties. Among its properties are buildings containing laboratories for any scientific development and research, and other scientific improvements. The major customers of ARE are universities and not for profit organizations. It is a part of the U.S. financial sector. The company offers its stock for sale at the New York Stock Exchange. The current price of its stock is $94.38. Its revenues have over the past three years continually increased. Its quarterly revenue growth (year on year) is 12.10%. During the current fiscal year, its stock price is expected to increase to more than $100. The company presents a great opportunity to earn capital and revenue gains.

Avalonbay Communities Inc. (AVB, Financial): One of the most prominent companies in the Real Estate Investment Trust (REIT) Residential industry, Avalonbay Communities Inc. is involved in the ownership and development of multifamily communities in the United States. The company is financially pretty sound and has continually been expanding and growing. The financial and stock market performance of the company in the past three financial years has been great and the future prospects are equally promising. The 52-week range of the company’s stock price is $135 to $181.69. Its current stock price is $171.73, which is expected to increase to $182.05 soon. The company is a good pick with a highly non-volatile stock. It has a Beta value of 0.07.

Forest City Enterprises Inc. (FCE-A, Financial): Operating in the financial sector, Forest City Enterprises is a part of the property management industry of the U.S. The company owns, acquires and develops regional malls as well as retaining centers. The financial performance of the company in the past three years has been static. It has retained its sales revenues and since has tried taking on a growing trend. The current stock price of the company is $24.19. Its stock prices have in the past 52 weeks fluctuated between $24.03 and $24.32. The company’s stock is highly volatile with a Beta value of 2.52. Systematic risks associated with investing in the company’s stock are high. This stock will not create great investment opportunity.

Ramco-Gershenson Properties Trust (RPT, Financial): Headquartered in Farmington Hills, Michigan, Ramco-Gershenson Properties Trust was founded in 1988. The company is involved in the ownership and development of community shopping centers and retail properties. The stock price of the share is $18.22 and its 52 weeks range is $18.10 to $18.32. Its prices have more or less remained stable no significant fluctuations were observed over the period. The stock price is expected to increase to $20 by the end of the current year. The company has experienced gradual growth and expected to grow further at a rate of more than 30%. In the future, doubts as regards the company ability to earn a steady return on equity are expected to be dispelled.

The U.S. real estate stock have and in the future expected to show great progress. The U.S. real estate markets are gaining popularity amongst investors once again. The future holds great growth and expansion opportunities for the market. The market is expected to regain its past glory and significantly contribute to the growth and development of the U.S. economy.