KeyBanc Upgrades BioMed Realty (BMR) to Hold, Overhang Could Be Lifted

KeyBanc upgraded BioMed Realty (NYSE: BMR) from Underweight to Hold.

The firm comments, "The stock has lagged by 940 bps year-to-date despite significant momentum on the leasing front; BMR has already signed 1.2msf of leases since the end of 3Q11, which compares to the 1.2msf five-quarter target. The underperformance has seemingly been a function of an equity overhang following the nearly $700 million of debt financed investments year-to-date and incremental capital commitment. While we expect an equity issuance is needed in the near term to reduce leverage below 5x debt/EBITDA (vs. 7x today), we suspect that a deal could be a positive catalyst for BMR's stock as the overhang is lifted."

For an analyst ratings summary and ratings history on BioMed Realty click here. For more ratings news on BioMed Realty click here.

Shares of BioMed Realty closed at $19.25 yesterday.

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