UPDATE: Stifel Nicolaus Downgrades CommonWealth REIT to Sell on Dividend Cut Warning

Stifel Nicolaus reduced its rating on CommonWealth REIT (NYSE:

) from Hold to Sell as the company forewarns a likely dividend cut. Stifel Nicolaus said, "CommonWealth forewarned of a likely dividend cut. This was two quarters ahead of our projection. The cut could be a wide range -- $0.50-$1.20/sh from $2.00/sh. … We expect the still declining fundamentals, leverage, conflicts of interest, and external management to overshadow attractive valuation metrics of: 1) 10.4%/7.7%/6.8% implied NOI/Cash Flow and CF less G&A cap rates, 2) below our NAV range of $23-$26/sh, based on a 9.0%-9.5% cap rate range." CommonWealth REIT closed at $$16.76 on Wednesday.