UPDATE: Stifel Nicolaus Upgrades Lexington Realty Trust to Buy on Dividend Growth Potential
Stifel Nicolaus raised its rating on Lexington Realty Trust (NYSE: LXP) from Hold to Buy and established a $10.75 price target.
On top of attractive dividend yields, Stifel Nicolaus noted, "Other positive attributes include: 1) continued efforts to transition into NNN peer group will prevail, 2) debt maturities can be refinanced at lower rates with little-to-no amortization which generates FFO growth, 3) our implied NOI/Cash Flow and CF less G&A cap rates are attractive at 8.5%/7.4%/6.8%, 4) LXP has one of the lowest 2013 FFO/FAD multiples at 9.8x/13.3x of any office/industrial REIT we cover, 5) LXP sites a tremendous amount of opportunity in the upcoming lease expiry in the now wholly owned NLS portfolio, as prior management neglected the portfolio, and 6) potential continued NAV value creation."
Lexington Realty Trust closed at $9.69 on Tuesday.
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