"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Tuesday, November 2, 2010

Vornado and REIT-dom Continue to Defy Gravity

Vornado and REIT-dom Continue to Defy Gravity
 and You Can Put a Screw to Fundamentals
No Better Time to Buy REITS,
Nothing Will EVER Take Us Down

Vornado Realty Trust (VNO) reported earnings today
and Golly Sarge, they beat the street....by ONE PENNY!

Vornado Realty Trust stock price closed today (11/2/10) at $89.28 per share reflecting a $29.04 (48.2%) launch from 11/2/09. Year to date the stock is up 7.7%.

This stock price launch, surely reflects monstrous revenue and earnings growth year over year.

Well, not exactly.
Funds from Operations (FFO)
$249 million, or $1.22 per share (up 3.3%) versus $1.18 Q3 2009

$707 million (up 5%) versus $671.2 million Q3 2009

Income after paying preferred dividends
$95.2 million, ($0.52 a share), versus $126.3 million, or $0.70 a share, Q3 2009

The consensus earnings estimate for FY 2010 is $5.28 per share (versus $4.46 FY 2009). The Wall Street experts predict an annual earnings increase of 18.4% on a stock that has launched 48.2% in the prior 12 months. The pundits earnings estimate for FY 2011 is $5.36 or a minuscule 1.5% earnings increase over their FY 2010 guesstimate.

REITS Love Bernanke's money printing press and zero interest rate policy. Are REITS the next dot-com blow up? Might commercial real estate be getting just a bit ahead of itself?

No grandpa, just like technology in 2000,
nothing bad could possible happen...

No comments:

Post a Comment