Credit Suisse Initiates Coverage On 34 REITs, Names Top Picks

Credit Suisse initiated coverage on 34 U.S. REITs Tuesday across the Mall, Shopping Center, Office, Hotels, Industrial and Apartment sectors.

Analysts led by Ian Weissman forecasted “10 percent total returns over the next 12 months (including a 3.0 percent dividend yield), led by Malls (+14 percent), Industrial (12 percent), and Hotels (+10 percent). We see plenty of Alpha for investors with forecasted returns as high as +19 percent (FCE/A) to a low of +1 precent (OFC).”

Weissman was  bullish on REIT fundamentals for 2015 and noted that “strong US macro (notably jobs) should help to drive above average internal growth of 3.7 percent, while robust development pipelines across most property types should help to drive annualized FFO growth of 9 percent through 2016.”

Below are the firm’s top picks along with price targets.

Forest City Enterprises Inc. FCE $25 price target

Simon Property Group Inc. SPG $205 price target

Boston Properties, Inc. BXP $147 price target

Taubman Centers, Inc. TCO $87 price target

Pebblebrook Hotel Trust PEB $47 price target

Sunstone Hotel Investors Inc. SHO $17 price target

LaSalle Hotel Properties LHO $43 price target

RLJ Lodging Trust RLJ $35 price target

Prologis Inc. PLD $46 price target
 
Hudson Pacific Properties Inc. HPP $31 price target

Kimco Realty Corp KIM $27 price target