BMO Capital Markets analysts John Kim and Juan Sanabria upgraded Equity Residential's rating to "market perform" from "underperform," with a target price of $64.00. The analysts expect the leasing season in the second and third quarters to remain intact, which should bode well for continued strong leasing figures.
BMO Capital Markets analysts Ari Klein and John Kim reiterated Digital Realty Trust Inc.'s "market perform" rating, with a target price of $100.00. The analysts said the Chapter 11 bankruptcy filing of Cyxtera Technologies Inc., the datacenter real estate investment trust's 12th-largest tenant, poses a potential risk to Digital Realty's core funds from operations growth recovery.
Jefferies' David Katz and Rita Chen reiterated Park Hotels & Resorts Inc.'s "hold" rating, with a price target of $14.00, following the lodging REIT's move to surrender the Hilton San Francisco Union Square and Parc 55 San Francisco hotels to their commercial mortgage-backed securities lender. Katz and Chen believe that Park Hotels did the appropriate alternative, given the challenges specific to the San Francisco market and to the properties' capacity to generate returns.
BMO Capital Markets analyst Ari Klein reiterated Park Hotels' "market perform" rating, with a target price of $14.00. The analyst said the removal of the hotels from Park Hotels' portfolio brings the REIT's exposure to the San Francisco market to 3%, which reduces leverage, improves underlying performance metrics, and is accretive to FFO.