UPDATE: Stifel Nicolaus Downgrades CommonWealth REIT Following Portfolio Summary

In a report published Monday, Stifel Nicolaus analyst John Guinee downgraded CommonWealth REIT CWH from Hold to Sell.

In the report, Stifel Nicolaus noted, “As CommonWealth was kind enough to provide a portfolio summary in its 2Q13 Supplemental, we plotted the portfolio on a map of the United States, and are downgrading our rating from Hold to Sell. This widely scattered collection of assets lacks any rhyme or reason, and -- by our estimates -- is 8.5%-9.0% cap real estate. We maintain our NAV range is $21-$23/sh. Note that a 9% cap rate in 2012 averaged $24.21/sh, while a 9% cap rate at 2Q13 was $20.56/sh. We estimate CWH is currently trading at somewhat rich implied NOI, cash flow, and CF less G&A cap rates of 8.0%, 5.9%, and 4.8%, respectively.”

CommonWealth REIT closed on Friday at $26.26.