Wells Fargo Upgrades First Potomac Realty Trust (FPO) to Market Perform; Raises Valuation Range & Estimates

November 2, 2009 8:12 AM EST

Wells Fargo upgrades First Potomac Realty Trust (NYSE: FPO) to Market Perform.

Wells analyst says, "Upgrading rating to Market Perform given improving core metrics (re-leasing spreads, SS NOI growth, leasing costs) and a more compelling relative valuation. We expect FPO's concentration in the DC market and modest lease size footprint to drive better relative core portfolio
performance vs. its mixed Office/Industrial peers during 2010. Offsetting this, FPO runs at higher leverage than peers, which could require an equity issuance if acquisitions materialize, but improvement in access to capital limits the downside, in our view. Our valuation range has increased from $7-8/sh to $10-12, and we've increased our '09/'10 FFO/sh estimates to $1.64/$1.38 from $1.60/$1.31; FAD is $0.98/sh in '09 $1.08 in for '10...Our 2011 and 2012 FFO est's are $1.30/sh in each year, FAD at $0.92/sh for '11 and $0.98/sh for '12."

To see more analyst ratings on FPO Click Here.

First Potomac Realty Trust, a real estate investment trust (REIT), engages in the ownership, development, redevelopment, and operation of industrial properties and business parks in the Washington, D.C. metropolitan area, and other markets in Maryland and Virginia.

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• Life, Style and Real Estate

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?