UPDATE: Goldman Sachs Resumes BRE Properties at Sell on Lagging Earnings

Goldman Sachs resumed its coverage on BRE Properties BRE with a Sell rating and a $45 price target. Goldman Sachs noted, "We anticipate BRE will have earnings growth that will lag the sector due to a combination of: (1) dilution from the sales of secondary assets, (2) low yields on legacy developments where land was originally purchased prior to the 2008-2009 downturn, (3) the annualized dilution from the term out of floating rate debt in the second half of 2012, and (4) minimal refinance savings. BRE trades at 23.6X 2012E AFFO, a 7% discount to the apartment sector average, but at 17.4X 2017E AFFO, a 6% premium to the sector and the highest multiple in the group." BRE Properties closed at $49.67 on Monday.