Market Overview

UPDATE: MLV & Co Initiates Coverage on First Potomac Realty Trust on Multiple Positive Factors

Share:
Related FPO
4 REITs That Could See M&A Activity Soon
Small-Cap Office REIT First Potomac Downgraded - A Potential M&A Silver Lining?
First Potomac Realty Trust's (FPO) CEO, Douglas Donatelli on Q2 2015 Results - Earnings Call Transcript (Seeking Alpha)

In a report published Tuesday, MLV & Co analyst Jonathan Petersen initiated coverage on First Potomac Realty Trust (NYSE: FPO) with a Buy rating and $16.00 price target.

In the report, MLV & Co noted, “We expect FPO to continue to report positive net absorption in 2014 as the D.C. market recovers — occupancy increased 320 bps in 2013 to 88.1%; government spending is expected to grow again in 2014 and be above long-term averages in 2015, which should help the D.C. market to recover; we expect FPO's efforts to reduce leverage will allow the company to trade at a higher valuation level than it has in the past — over the past year, FPO has increase its fixed charge coverage to 2.0x, from 1.4x, and has reduced debt-to-enterprise value to 44%, from 53%; due to the full-year impact of 2013 dispositions, we expect 2014 FFO to decline by 3.1% but rebound to 8.2% growth in 2015; and FPO currently trades at a 14% discount to NAV — we expect that discount to be reduced as FPO's leverage declines and the D.C. market recovers.”

First Potomac Realty Trust closed on Monday at $12.67.

Latest Ratings for FPO

DateFirmActionFromTo
May 2015BMO CapitalDowngradesOutperformMarket Perform
Dec 2014DA DavidsonInitiates Coverage onNeutral
Apr 2014Evercore PartnersMaintainsEqual-weight

View More Analyst Ratings for FPO
View the Latest Analyst Ratings

Posted-In: Jonathan Petersen MLV & CoAnalyst Color Initiation Analyst Ratings

 

Related Articles (FPO)

Get Benzinga's Newsletters