UPDATE: Stifel Nicolaus Downgrades Liberty Property Trust to Hold

Stifel Nicolaus reduced its rating on Liberty Property Trust LRY from Buy to Hold and removed its previous $39 price target. Stifel Nicolaus noted, "We are downgrading from Buy to Hold as we are concerned that 2013 will exhibit: 1) a lack of rental rate growth, particularly in the office portfolio (LRY estimates (4.5%)-(9.5%) GAAP/cash Same-store rental rate declines at the midpoint), 2) high re-tenanting costs at 18-20% average annual leasing at a $4-5/SF, 3) overall concern that market conditions are such that the ability to appreciably grow FFO/FAD/dividend is not on the horizon. Management expects a $15-20mm dividend shortfall in 2013. We agree." Liberty Property Trust closed at $34.75 on Tuesday.