Real Estate Stocks On The Radar: ASPS, LESA, DHC, ROIC, HPP

The rising interest rates and the specter of an actual recession have both made the real estate sector a bit soft in recent times. However, there may still be companies in the sector that could be worth looking into. This feature is going to provide you with a closer look into five real estate companies that could be worth tracking.

Altisource Portfolio Solutions SA (NASDAQ:ASPS) – The company operates one of the biggest marketplaces for mortgage and real estate industries. On July 27 Altisource Portfolio Solutions SA was in focus after it announced its financial results for the second fiscal quarter of the year. The company announced that it ended the second quarter with cash and cash equivalents to the tune of $35 million. Additionally, it was also revealed that it had a revolving credit facility worth $15 million.

The company ended the quarter with net debt of $194.7 million. The EBITDA earnings in the quarter came in at $3.5 million and the EBITDA earnings for the first six months of the year was $2 million. The figures reflected improvements of 47% and 81% when compared to the corresponding periods in the previous year.

The adjusted EBITDA  loss in the second quarter was $2.3 million, which worked out to an improvement of 19% from the figure in the prior year period. In July this year, Altisource Portfolio Solutions instituted a cost reduction initiative across the company, which once completed, cut down on annual cash operating expenses by $13.5 million a year.

Landsea Homes Corporation (NASDAQ:LSEA) – The home builder Landsea Homes Corporation announced its financial results for the second fiscal quarter that ended on June 30, 2023. The company generated a net income of $4.9 million, which worked out to $0.12 per diluted share.

The revenues stood at $293.2 million for the quarter to go along with pre-tax income of $7.5 million. The company also revealed that it delivered a total of 539 homes in the second quarter. Additionally, new home orders went up 5% to 565 and the order value of the same was $455.8 million.

John Ho, the Chief Executive Officer of Landsea Homes Corporation noted that the company had made robust progress during the second quarter and generated healthy profits. He added that the company had continued to boost its order number while successfully working on the long-term strategy of market expansion.

Diversified Healthcare Trust (NASDAQ:DHC) – On August 1 Diversified Healthcare Trust was in the news cycle after it announced its financial results for the quarter that ended on June 30, 2023. The company announced that it had suffered a net loss of $52.7 million, which worked out to $0.22 a share.

The normalized FFO for the period was $12.5 million, which worked out to $0.05 a share. The SHOP occupancy had gone up by as much as 390 basis points, to hit 76.9% and the average monthly rates went up by as much as 8.2% year on year. That led to a boost in revenues by 13.9%. The company also announced at the time that it would also host a conference call to discuss the financial results on August 2, 2023, which would begin at 10 in the morning Eastern Time.

Diversified Healthcare Trust also revealed that a live video webcast of the same would also be made available and eventually archived on the website for further viewing.

Retail Opportunity Investments Corp (NASDAQ:ROIC) – Last week, Retail Opportunity Investments Corp was in focus after it announced its financial results for the three-month and six-month period that ended on June 30, 2023. In the three-month period, the GAAP net income generated by the company attributable to shareholders stood at $9.9 million, which worked out to $0.08 per diluted share.

In the prior year period, the figure had been $11.5 million or $0.09 per diluted share. In the six-month period, the GAAP net income was $18.1 million, which translated to $0.14 per diluted share. In the prior year six month period, the figure had been $23.1 million or $0.19 per diluted share. The net operating income in the second quarter was $53.2 million, which reflected a 3.2% rise from the $51.5 million posted in the prior year period.

Hudson Pacific Properties Inc (NYSE:HPP) – The company is best known for providing full-service real estate solutions to media and tech clients. On August 1 Hudson Pacific Properties Inc announced its financial results for the second fiscal quarter of 2023. The revenues declined to $245.2 million from $251.4 million in the prior year period.

The decline had been brought about by vacancies at two properties and the sale of another. The net attributable loss to the shareholders was $36.2 million or $0.26 per diluted share. In the prior year period, the company had recorded $7.4 million in net loss, which worked out to $0.05 per diluted share.