FBR Capital Reiterates an 'Outperform' on Parkway Properties (PKY); Eola Capital Transaction is Positive

FBR Capital reiterate an 'Outperform' on Parkway Properties (NYSE: PKY).

FBR analyst says, "We reiterate our rating and are raising our price target from $19.50 following the announcement of the acquisition of an interest in select office assets and the property management platform of Eola Capital LLC. We view this transaction as a positive means of the company de-levering, growing its management fee income stream, as well as allocating capital within Fund II. The transaction will be accretive to FFO results going forward by an estimated $0.16 to $0.22 per year, which will be somewhat offset by the loss of revenue from the sale of 233 North Michigan, and has been included in our updated FFO per share estimates and NAV estimate. Most Importantly, these transactions will result in net debt/EBITDA being lowered to 6.0x from the current 6.7x."

For more ratings news on Parkway Properties click here and for the rating history of Parkway Properties click here.

Shares of Parkway Properties closed at $16.77 yesterday.

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