2009
08.09
08.09
Q2/09 DIPU was $0.56, up a strong 7.7% from $0.52 a year ago and ahead
of our $0.54 estimate as a declining average interest rate, higher leverage,
and lower energy costs more than offset occupancy declines in late Q2.
Same-property NOI eased 1.2%, largely due to unplanned expenses.
We continue to see NPR as a conservative, defensive and attractive investment.
We expect continued unit price appreciation and attractive yield, only more
in line with the broader REIT sector, for which we have an Overweight
sector weighting. Q2 D/GBV assets was 57.8%, up from 55.9% a year ago,
while weighted average interest cost dropped from 5.22% to 4.95%.
NPR trades at 10.2x 2009E DIPU, and yields a fully covered 6.9%.
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