Duke Realty Corporation (DRE) Downgraded To Sell
February 02, 2010 11:51 AM
Analysts at Stifel Nicolaus have downgraded the shares of Duke Realty Corporation (NYSE: DRE) to a Sell rating.
The company surprised Wall Street with its latest guidance figures, estimating earnings per share of 95 cents to $1.15, compared to Wall Street forecasts of $1.11.
Stifel Nicolaus analysts John W. Guinee and Erin T. Aslakson questioned how long it would be until occupancy rates rose and said that at this point, the shareholders have reached "ownership fatigue".
Duke Realty Corporation plans to sell over $2 billion in Midwest office assets in the next three to five years but the analysts questioned the company's ability to do so.
The analysts went on to say that although Duke Realty Corporation has a good balance sheet, its cost of capital is cause for concern.
