KeyBanc Downgrades Corporate Office Properties Trust (OFC) to Sector Weight

KeyBanc downgraded Corporate Office Properties Trust (NYSE: OFC) from Overweight to Sector Weight.

Analyst Jordan Sadler said, "Following a disappointing 2015 that was driven by capital allocation concerns due to the ramped investment in Baltimore, OFC has been the best performing office REIT YTD and one of the best performing REITs overall, outperforming both groups by 286 bps and 217 bps, respectively ... following the 38.6% YTD total return (vs. 16.9% for the MSCI US REIT Index), it could be harder for the stock to outperform during the balance of the year; with the stock trading close to our $30 price target, valuation appears less compelling at a 7.0% implied cap rate and 2.1% premium to NAV (vs. 5.4% cap rate and a 4.0% discount for its office peers). Accordingly, we are downgrading OFC to SECTOR WEIGHT from OVERWEIGHT."

For an analyst ratings summary and ratings history on Corporate Office Properties Trust click here. For more ratings news on Corporate Office Properties Trust click here.

Shares of Corporate Office Properties Trust closed at $29.66 yesterday.

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