UPDATE: Bank of America Downgrades Associated Estates Realty Corporation to Underperform on Valuation

Bank of America reduced its rating on Associated Estates Realty Corporation (NYSE:

) from Neutral to Underperform while reiterating its $16 price target. Bank of America commented, "Over the last 90 days, AEC has returned +10.9% compared to +3.4% for apartment REITs and +3.7% for all REITs. While AEC's 2013E FFO multiple of 12.2x looks attractive when compared to the apartment average of 18.7x, we expect 6% FFO growth compared to double-digit for most apartment REIT peers and note that the -35% multiple discount is in line with its 5-year average. In addition, AEC's 2013 FFO multiple is above its 5-year and 10-year averages of 11.3x and 11.5x, respectively." Associated Estates Realty Corporation closed at $16.44 on Thursday.