UPDATE: Stifel Downgrades CommonWealth REIT to Sell on Expected Share Turbulence

In a report published Tuesday, Stifel analyst John Guinee downgraded the rating on

from Hold to Sell. In the report, Stifel noted, “We are downgrading CommonWealth REIT to Sell from Hold and we expect potentially turbulent share valuation until mid-May 2014 when the conversion is complete. We understand that the $379.5mm Series D conversion into common stock will be priced based on the closing common stock price during the May 5-9 2014 five-day period. The conversion should occur the following week with roughly 15-16mm additional shares -- a 12.7-13.5% increase to the 118.3mm shares now outstanding.” CommonWealth REIT closed on Monday at $25.60.