6 REITs DA Davidson Is Watching

In a series of research notes released today, analysts at DA Davidson initiated coverage on several real estate investment trusts (REITs). Here’s a breakdown of what they had to say about each name.

Monmouth Real Estate Investment Corp MNR
Analysts are predicting about 10 percent earnings growth over the next two years. They see very little opportunity for internal earnings growth, and their 10 percent growth estimate assumes that the company will execute its acquisition strategy. DA Davidson set a Neutral rating on the REIT and a price target of $12.

Duke Realty Corp DRE
Analysts believe that Duke’s high valuation relative to REIT peers is deserved, but the high price tag does limit potential upside from current levels. In light of the REIT’s flat growth rate and high valuation, it’s hard for analysts to be excited about it at the moment. DA Davidson set a Neutral rating on the REIT and a price target of $23.

Chambers Street Properties CSG
Analysts love the REIT’s 11.2X multiple compared to the overall 17.3X multiple of the group. DA Davidson set a Buy rating on the REIT and a price target of $9.

Terreno Realty Corp TRNO
Analysts like the REIT’s acquisition plan for the next two years and believe that it could generate annual earnings growth of up to 20 percent during that span. DA Davidson set a Buy rating on the REIT and a price target of $27.

Stag Industrial Inc STAG
Analysts worry that Stag’s exposure to long-term leases at single-tenant buildings could put the REIT at a disadvantage when interest rates start to rise. DA Davidson set a Netral rating on the REIT and a price target of $25.

Rexford Industrial Realty Inc REXR
Analysts like that Rexford is trading at a discount to NAV and believe that it can grow earnings at a 10 percent annual rate over the next two years. DA Davidson set a Buy rating on the REIT and a price target of $20.