UPDATE: Stifel Nicolaus Downgrades Lexington Realty Trust to Hold on Preferred Equity Challenge
Stifel Nicolaus reduced its rating on Lexington Realty Trust (NYSE: LXP) from Buy to Hold and suspended its previous $10 price target per share.
Stifel Nicolaus noted, "The primary news on the call was that the Net Lease Strategic (NLS - Inland America) preferred equity investment may not be paid off in 2H12 at roughly $210-$220mm, but that $400-$470mm of assets may revert back to Lexington in December 2012; 11%-13% asset growth. We think of this announcement as similar to exiting a dive too early and making an unwanted splash; hence, our downgrade to Hold. We still like most things about LXP, but recommend waiting until the judge's scores are posted."
Lexington Realty Trust closed at $9.02 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.