3 REITs That Just Raised 2024 Full-Year Guidance

Earnings are crucial for the share price of a stock to appreciate. But often, even good earnings fail to lift a stock if a company's forward guidance is weaker than analysts expect. Prologis Inc. PLD investors recently found this out as its shares were hit hard following the announcement that while core funds from operations (FFO) matched estimates, Prologis had revised full-year 2024 core FFO lower. Prologis subsequently lost almost 10% within a week.

Investors must also look at forward guidance plus the previous quarter's earnings when assessing stocks for possible purchase or sale. With that in mind, take a look at three real estate investment trusts (REITs) that recently raised full-year 2024 forward guidance from previous levels.

Alexander & Baldwin Inc. (Hawaii) ALEX is a Honolulu-based diversified REIT exclusively focused on Hawaii commercial real estate. Alexander & Baldwin owns and operates 22 retail centers, 13 industrial assets and four office properties with 3.9 million square feet. It also has 142 acres of ground-lease assets. Its leased occupancy as of March 31 was 94%. The company has a 154-year history of operation.

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On April 25, Alexander reported its first-quarter 2024 operating results. FFO of $0.35 beat the consensus of $0.26 and topped FFO of $0.29 in the first quarter of 2023. Revenue of $61.2 million beat the estimates of $49.25 million and first-quarter 2023 revenue of $50.4 million.

More significantly, Alexander & Baldwin also raised its full-year 2024 adjusted funds from operations (AFFO) guidance from $0.80-$0.90 to $0.89-$1.00.

Piper Sandler analyst Alexander Goldfarb recently maintained a Neutral rating on Alexander & Baldwin, with a $17 price target. Its recent closing price was $15.83, but it opened about 3% higher the morning following the earnings and guidance call.

Healthpeak Properties Inc. DOC is an El Segundo, California-based diversified healthcare REIT that owns and operates private-pay facilities such as life science centers, medical offices and continuing care retirement communities. Although it has properties across the U.S., most are in the San Francisco, San Diego and Boston areas. Healthpeak's initial public offering (IPO) launched in 1985, and the company was added to the S&P 500 in 2008. It owns 774 properties worth over $20 billion.

On March 1, Healthpeak officially merged with Physicians Realty Trust in an all-stock-for-stock transaction. Physicians Realty Trust's PEAK symbol was changed to DOC.

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On April 1, Bank of America Securities analyst Joshua Dennerlein upgraded Healthpeak Properties from Underperform to Buy and raised the price target 38.8% from $18 to $25.

On April 25, Healthpeak reported its first-quarter 2024 operating results. FFO of $0.45 per share was a penny above the consensus estimate and a 7.14% increase over FFO of $0.42 per share in the first quarter of 2023. Revenue of $606.56 million topped the consensus estimate of $588.284 million and was a 15.39% increase over revenue of $525.678 million in the first quarter of 2023.

Healthpeak also announced an increase to its full-year 2024 diluted AFFO guidance from $1.50-$1.56 to $1.53-$1.57.

Investors cheered the news and Healthpeak rose over 2% the morning following its earnings and guidance release.

Rexford Industrial Realty Inc. REXR is a Los Angeles-based industrial REIT with 422 properties totaling 49 million square feet that it owns or manages, primarily in Southern California's high-growth areas. Rexford Industrial is a member of the S&P 400 and was founded in 2001. Rexford's first-quarter occupancy rate was 96.8%.

On April 16, Truist Securities analyst Anthony Hau maintained a Buy rating on Rexford Industrial Realty but lowered the price target from $57 to $53.

On April 17, Rexford Industrial Realty reported its first-quarter 2024 operating results. FFO of $0.58 per share beat the analyst consensus estimate of $0.57. Revenue of $210.99 million missed the consensus estimate of $211.56 million and was a 13.95% improvement over $185.16 million in revenue during the first quarter of 2023.

Unlike its peer Prologis, Rexford raised its full-year 2024 core FFO of $2.27-$2.30 per share to $2.31-$2.34. Although Rexford did not initially benefit much in share price, largely because of the sympathy selling of industrial REITs along with Prologis, it has been climbing higher over the past few days. 

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