BMO downgrades Rexford Industrial; Evercore upgrades Extra Space Storage

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Evercore ISI analysts Steve Sakwa, Samir Khanal, James Kammert, Flora Tong, Jay Poskitt and Sanket Agrawal downgraded American Homes 4 Rent and National Storage Affiliates Trust to "in line" from "outperform."

American Homes significantly outpaced the RMZ index in 2023, the analysts said, adding that the company has been able to capture solid growth with healthy occupancy rate at over 97%. Price target was revised to $36 from $37.

The analysts noted National Storage's mid-quarter update was weaker compared to its peers and its occupancy dropped larger than expected. Price target was lowered to $42 from $49.

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BMO Capital Markets analysts John Kim and Eric Borden downgraded Rexford Industrial Realty Inc. to "market perform" from "outperform" and lowered their price target to $56 from $69. Rexford's premium valuation could be impacted with industrial fundamentals weakening in Southern California, the analysts said.

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Evercore upgraded Extra Space Storage Inc. to "in line" from "underperform" on the back of the company's underperformance year to date and improving valuation.

Reiterations

Evercore maintained the "in line" ratings for Essex Property Trust Inc., Camden Property Trust and Invitation Homes Inc., and the "outperform" rating of Sun Communities Inc.

Essex's target price was lowered by $1 to $239, while Camden's target price remained at $123. Sun Communities' target price fell to $152 from $154 and the target price for Invitation Homes was raised to $37 from $34.

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Evercore analysts Steve Sakwa, Sanket Agrawal and Samir Khanal removed their tactical "outperform" rating and reiterated their "in line" rating for Kimco Realty Corp. with a 12-month price target of $22, following the company's outperformance compared to the RMZ index.

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Jefferies analysts Peter Abramowitz and Jonathan Petersen maintained SL Green Realty Corp.'s "hold" rating and price target of $23. The company's leasing update reflects that "the market is steady but not improving enough to show signs of a meaningful inflection," the analysts said.