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Wednesday, North American real estate edition

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Wednesday, North American real estate edition

Reiterations

* Canaccord Genuity analyst Paul Morgan reiterated his "buy"rating on Simon Property Group Inc.,noting the company's "solid" first-quarterresults. His price target on the company's stock is $235.

Morgan said in a note that Simon's first-quarter results wereled by same-store NOI growth of 5.1%, which he called an "impressive rebound"from the 3.4% gain it logged for the metric during the 2015 fourth quarter.

The analyst added that he believes NOI growth into the next yearwill be fueled by Simon's near-term redevelopment deliveries worth more than $2billion at its key properties, which will more than compensate for the continuedsales headwinds facing certain of its tourist-focused centers.


* A group of Jefferies analysts reiterated their "hold"rating on Starwood Hotels & ResortsWorldwide Inc. ahead of the May 3 release of the company's first-quarterresults. Their price target on the stock is $70.

The analysts said they believe Starwood's first-quarter resultswill be at the high end of its guidance, while sustaining its RevPAR growth projectionsfor the full year in the range of 2% to 4%. They added that they think their RevPARestimate of 3% for the company is "realistic," and they expect more updateson the company's proposed mergerwith Marriott International Inc.


* Citing the company's strong first-quarter results, MKM Partners analyst Christopher Agnewreiterated his rating on Wyndham WorldwideCorp. at "buy."

The rating is based mainly on the company's "robust"timeshare metrics during the first quarter as demonstrated by 10% growth in itsgross vacation ownership interest sales and an 11% year-over-year increase in freecash flow, he said. Based on a 9.5x multiple of the analyst's adjusted EBITDA estimatefor the full-year 2016, his price target on the company's stock is $88.


* Mizuho Securities USA Inc. analyst Richard Anderson reiteratedhis "neutral" rating on HealthcareTrust of America Inc. based on valuation. He maintained his price targeton the company's stock at $28.

Anderson said in a note that the company's first-quarter FFOresults appear to be "in line" with "incremental upside" fromits recent acquisitionsand that the company has consistently generated same-store NOI growth of at least3% for 14 consecutive quarters.

The analyst added that the company is "more active"in acquiring medical office buildings than its immediate peer, The companyhas also injected cost savings "on a fairly regular basis," while HealthcareRealty Trust has sustained same-store expense growth in the range of 2% to 3%, Andersonsaid. He views the distinction between the companies as a good thing, given thatit provides investors with "high quality" options in the MOB segment.


* A Ladenburg Thalmann duo reiterated their "sell"rating and $15 stock price target on LaSalleHotel Properties.

Daniel Donlan and John Massocca attributed the reiteration toLaSalle Hotel's lack of visibility and weakening portfolio fundamentals. The analystssaid the company's RevPAR is likely to trend lower in 2017, given expectations fornew supply to spike in most of the core REIT markets, the growing use of Airbnband other short-term rental sites and a potential "down year" in San Francisco,the company's biggest market, as a result of the Moscone Center's yearlong renovation.

While its debt maturity schedule and balance sheet might offerLaSalle Hotel plenty of cushion to weather any continued weakness, "the downsiderisks far outweigh the risks to upside given the current macro backdrop," thepair said.


* Compass Point Research & Trading LLC analyst Steve Shawreiterated his rating on BluerockResidential Growth REIT Inc. at "buy," while boosting hisprice target on the company's stock to $15.50 from $15.

The action comes on the heels of the company's public of 2.3 million shares of8.250% series A cumulative redeemable preferred stock, which roughly $55.3 million. Shaw said heexpects the transaction, which is accretive to his AFFO and NAV projections, toaddress the REIT's capital needs through the late third quarter, and assumes thatthe company will cover the quarterly dividend of 29 cents per share for the fourthquarter on an actual AFFO basis.

The analyst said the offering "serves as another step inthe company's growth to a size where it can accretively internalize its managementstructure."