UPDATE: MLV & Co Initiates Coverage on Brandywine Realty Trust with Buy Rating, $17 PT on Good Market Position

In a report published Tuesday, MLV & Co analyst Jonathan Petersen initiated coverage on

with a Buy rating and $17.00 price target. In the report, MLV & Co noted, “We like BDN's efforts over the past few years to focus its portfolio on the submarkets where the company has a strong portfolio and good market fundamentals — these markets are: Philadelphia CBD, Crescent submarkets (Radnor, Conshohocken, Plymouth Meeting, etc.), and Northern Virginia; BDN's development pipeline of 2014 deliveries is $35M with a projected yield of 11.2%, which will easily be accretive to FFO and NAV upon delivery and highlight BDN's measured approach to development; we expect BDN to reduce leverage over time, which should help close the valuation discount; and BDN trades at a 15% discount to NAV and a 2014 FFO multiple of 10.0x, which is the lowest in the Office REIT sector.” Brandywine Realty Trust closed on Monday at $14.29.