Jim Lykins is a Vice President and Research Analyst at D.A. Davidson & Co. and joined the company in November 2015 to expand coverage of the real estate sector, focusing on retail. Previously, he was the Acquisitions Manager at Whitestone REIT, a publicly traded retail REIT based in Houston. Prior to that, he spent 14 years at Hilliard Lyons, including 12 years in equity research covering utilities and two years in investment banking focusing on REITs. Mr. Lykins was named Thomson Reuters’ “Top Stock Picker” in Equity Real Estate Investment Trusts in 2017.
In this exclusive interview with the Wall Street Transcript, Jim Lykins pulls out his top picks in the sector and details the basis for his investment recommendations.
“Another one of my favorite names is Preferred Apartment Communities (NYSE:APTS), but they have a very significant retail portfolio as well, and that’s performing well for them too. One of the REITs that I cover — and I only cover one diversified REIT; I kind of lump them into my retail category just because the bulk of their revenues come from the retail side — is Armada Hoffler (NYSE:AHH). That’s a name that we like a lot where you can play the retail. They are involved in retail, multifamily and also office, but that’s another company where the retail portfolio is performing extremely well.
TWST: What would you add in terms of other multifamily REITs?”
Mr. Lykins identifies some gems in retail REITs:
“One thing that was noticeable is on the retail side; there certainly continues to be a lot of frustration with all of the management teams that I cover. And as far as retail goes, I’m covering the shopping center REITs and, specifically, the grocery-anchored shopping centers. So when I talk about retail, I’m not including the malls; that’s a completely different animal. And I get it. I understand their frustration. A lot of these guys are performing well fundamentally. We’re seeing great occupancy numbers from many in the group. We’re seeing them pushing rents.”
To see the top picks from Jim Lykins in REITs, read the entire interview at the Wall Street Transcript.