REITS - Downgrades on Valuation:
* SLG: To Hold from Buy, PT $50. 13% gain in Dec. rallied
stock above our $50 PT. However, NYC office fundamentals appear to
be bottoming and should improve during 2010.
* MAC: To Hold from Buy, PT $35. Simon-GGP deal helped MAC
outperform in Dec. rallying 20% during the month. Given the stock
is trading $.95 above our PT, we see limited upside or downside.
* CPT: To Sell from Hold. Stock gained 13% in the past 2 ½
weeks and outperformed the apartment REIT sector by 600bp and REIT
index by 1,000bp.
* DLR: Raising '10 FFO by $.10 to $3.35/share and PT
increases $1 from $54 to $55. DLR entered into an agreement to
purchase three data centers (550,000sf) for $375mn, which
translates into a 10.7% cap rate. DLR also announced a $400mn ATM
equity offering program.
So I went and looked at the component list for the $DJUSRE
and I didn't fine any of those you listed in the top
10. That index was indeed down for the day. I guess the
down grades set the tone for all the REITS in the index...
cheers.
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Couple Large REITs downgraded today over at ISI Research
SRS Up?
Posted by jdaswani on 4th of Jan 2010 at 04:11 pm
Out of ISI this morning.
REITS - Downgrades on Valuation:
* SLG: To Hold from Buy, PT $50. 13% gain in Dec. rallied stock above our $50 PT. However, NYC office fundamentals appear to be bottoming and should improve during 2010.
* MAC: To Hold from Buy, PT $35. Simon-GGP deal helped MAC outperform in Dec. rallying 20% during the month. Given the stock is trading $.95 above our PT, we see limited upside or downside.
* CPT: To Sell from Hold. Stock gained 13% in the past 2 ½ weeks and outperformed the apartment REIT sector by 600bp and REIT index by 1,000bp.
* DLR: Raising '10 FFO by $.10 to $3.35/share and PT increases $1 from $54 to $55. DLR entered into an agreement to purchase three data centers (550,000sf) for $375mn, which translates into a 10.7% cap rate. DLR also announced a $400mn ATM equity offering program.
Thanks for the info
Posted by hillsyde on 4th of Jan 2010 at 04:47 pm
So I went and looked at the component list for the $DJUSRE and I didn't fine any of those you listed in the top 10. That index was indeed down for the day. I guess the down grades set the tone for all the REITS in the index... cheers.