Top Picks: 4 REITs Poised For Earnings Success According To Analysts

When analysts assign positive ratings to stocks and raise price targets shortly before earnings are released, these are affirmations that the analysts expect the stocks to perform well in the future. After all, it would be far easier for them to wait for earnings to be released before publishing these decisions. Why would analysts stick their necks out right before earnings unless they felt sure of their convictions?

Four REITs with upcoming earnings this week have recently received analyst ratings of Neutral or better and price target increases. Take a look:

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Gaming and Leisure Properties

Gaming and Leisure Properties Inc. GLPI is a specialty REIT in Wyomissing, PA, that owns and triple-net leases 29.3 million square feet within 65 gaming properties across 20 states. It also has 15,100 hotel rooms and owns or leases 6,355 acres of land. 

Gaming and Leisure Properties has recently been on the acquisition hunt. On July 12, Gaming and Leisure Properties announced a binding term sheet with Bally's Corporation in a $1.585 billion deal to buy Bally's Kansas City, MO casino, the Shreveport, LA Casino and the land below Bally's Permanent Chicago Casino.

Furthermore, Gaming and Leisure Properties secured adjustments to improve the purchase price and cap rate to a previously announced contingent purchase option on Bally's Lincoln Casino Resort and the right to call the asset as of Oct. 1, 2026.

On July 16, Gaming and Leisure Properties received price target raises from two analysts. Scotiabank analyst Greg McGinniss maintained Gaming and Leisure Properties with a Sector Perform rating and raised the price target from $46 to $50. UBS analyst Robin Farley went further, maintaining Gaming and Leisure Properties at Buy and raising the price target from $56 to $61.

One day earlier, RBC Capital analyst Brad Heffern maintained Gaming and Leisure Properties at Outperform and raised the price target from $47 to $52. 

After the closing bell, gaming and Leisure Properties will announce its Q2 earnings on July 25, 2024. 

Essential Properties Realty

Essential Properties Realty Trust Inc. EPRT is a Princeton, NJ-based diversified REIT that owns and manages single-tenant properties with net leases for service-oriented and experience-based businesses. Essential Properties was founded in 2016. It has a portfolio of 1,937 properties across 48 states. 99.9% of its properties are presently leased, with a weighted average lease term (WALT) of 14.1 years. 

On June 3, Essential Properties announced a 1.8% increase in its quarterly dividend from $0.285 to $0.29 per share. Over the past five years, Essential has raised its dividend eight times by 38% with no cuts or suspensions. The annualized dividend of $1.16 per share now yields 3.76%. A comfortable payout ratio of 61.3% allows Essential Properties to continue increasing the dividend regularly. 

On July 18, UBS analyst Michael Goldsmith maintained Essential Properties Realty with a Buy rating and raised the price target from $30 to $35. On June 28, Goldman Sachs analyst Caitlin Burrows initiated coverage on Essential Properties Realty Trust with a Buy rating and announced a $33 price target.

Essential Properties Realty Trust will announce its Q2 earnings on July 24 after the closing bell.

Eastgroup Properties 

Eastgroup Properties Inc. EGP is a Ridgeland, MS-based industrial REIT that operates primarily in the Southeastern states and the west coast of the U.S. 89% of its portfolio is business distribution buildings. Its total portfolio, including properties currently under development, is approximately 60 million square feet. Eastgroup was founded in 1969 and is a member of the S&P Mid-Cap 400 and Russell 1000 indexes. As of March 31, 98.0% of its properties are under lease. 

Eastgroup has an excellent record of dividend growth, having paid dividends for 31 consecutive years with 27 years of increases and zero reductions.

On July 22, Wedbush analyst Richard Anderson upgraded Eastgroup Properties from Neutral to Outperform, raising the price target by 28.3% from $162 to $208.

Eastgroup will announce its Q2 earnings on July 23 after the closing bell.

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Agree Realty

Agree Realty Corporation ADC is a triple-net-lease REIT based in Bloomfield Hills, MI, that focuses on retail properties. Its portfolio includes 2,161 owned and operated retail properties totaling 44.9 million square feet across 49 states. A majority of its tenants are investment grade, including well-known names like Walmart Inc. WMT, Best Buy Co. Inc. BBY, Dollar General Corp. DG, and Kroger Co. KR. 

On July 11, Agree Realty declared a monthly cash dividend of $0.25 per common share, in line with its previous payment. The annualized dividend of $3.00 per share presently yields 4.5%. Since becoming a monthly dividend payer in January 2021, Agree Realty has increased its dividend four times by 19.0%.

On July 18, UBS analyst Michael Goldsmith maintained Agree Realty at Neutral and raised the price target by 11.66% from $60 to $67.

Agree Realty will announce its Q2 earnings on July 23, 2024, after the closing bell.   

While these four REITs all show positive trends, investors are cautioned that analysts' forecasts are only correct about 50% of the time, and purchasing a stock right before an earnings release entails some risk and potential reward.

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