Alexandria Real Estate Equities Inc ARE and Cousins Properties Inc CUZ were upgraded from Neutral to Buy, while Corporate Office Properties Trust OFC was downgraded from Buy to Neutral. Feldman increased his price target for Alexandria Real Estate Equities from $133 to $141 and maintained the price target for Cousins Properties at $10. Feldman decreased the price target of Office Properties Trust from $39 to $33. (See Feldman's track record here.)
The analyst said he expects Alexandria Real Estate Equities to outperform in 2018, as it still trades at the second best PEG and PEGY ratios in the office sector and has a 5-percent discount to Feldman's NAV. Feldman said he's most comfortable with this upgrade, because he already estimates above-average growth for the company in 2019. The key risk for Alexandria Real Estate Equities is the CEO transition, the analyst said.
Feldman expects Cousins Properties' high quality sunbelt portfolio to benefit from outsized population and job growth in its markets. With 4.3 times net debt/EBITDA, the company has one of the strongest balance sheets among REITs, the analyst said. Cousins Properties is planning to sell its Miami and Orlando assets by the first quarter of 2018, with no plans to redeploy the capital, said Feldman. If it uses the capital for an acquisition, the analyst's 2018 FFO/share estimate is going to increase above consensus.
The previous Buy rating for Office Properties Trust was based on growing demand for the company's high security office space, due to pro-defense spending in the U.S., rising global military tensions and the use of cyberwarfare against the U.S. and corporations, Feldman said. He still expects that this scenario will play out, but estimates the earnings impact will take at least another year.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.