UPDATE: KeyBanc Downgrades EastGroup Properties to Hold on Core Growth Slowdown

KeyBanc downgraded EastGroup Properties EGP from Buy to Hold. KeyBanc said, "We are downgrading EGP to HOLD from BUY to reflect slowing internal core growth relative to other industrial peers. We expect that cash SSNOI will be flat during 1H13 given diminishing returns from incremental occupancy gains as the portfolio is nearly stabilized at 94.3%, along with persistent negative cash rent spreads. While we expect that EGP can create additional value through the development pipeline, the combination of slowing internal growth and a fair valuation at a 6% implied cap rate keeps us from a more constructive recommendation at this point." EastGroup Properties closed at $54.43 on Wednesday.