Analysts Just Downgraded These 2 REITs

An analyst downgrade can cause a stock to drop sharply in investors' wake-up calls. As word spreads, the stock might retreat further as a result of a stock that appears overbought or has run high. Are these downgrades justified? Let's take a look at the facts and make your own decision. 30/2022: AvalonBay Communities had owned directly or indirectly 88.405 apartments in 293 communities throughout 12 states and Washington D.C. The 52-week range for AvalonBay Communities is $158.35 to $259.05 and the latest closing price was $168.79. AvalonBay Communities owned directly or indirectly 88,405 apartments in 293 communities across 12 states and Washington, D.C. 7 analyst Adam Kramer from Aperture Investors downgraded AvalonBay Communities to Overweight to Equal Weight, while lowering its price target from $225 - $187. The revenue increased 14.5% over the third quarter 2021. Analysts are concerned that the Federal Reserve will create a recession in 2023 due to the continued rise in interest rates. SLG is New York City's largest landlord and owner of office buildings. It holds an interest in 62 buildings covering 33.6 million square footage. However, the monthly yield was cut to 12.9% from $0.3108 and $0.2708, while the annual yield is still 9.1%. The dividend/FFO payout ratio stands at only 55%. Nicholas Yulico, Scotiabank, downgraded SL Green Realty's Sector Perform rating to Sector Underperform. He also lowered the price target to $43 from $43. Yulico stated that due to high leverage and potential downside earnings risk, future dividend cuts were likely. SL Green Realty lost another 8% within two days. SL Green Realty was also downgraded by Citigroup's Nicholas Joseph from Neutral to Sell and the price target dropped from $35 to $30. But there are some good news for SL Green Realty. One Madison Avenue celebrated its topping out, which is when the last beam is put on a building in construction. If SL Green Realty is successful in winning the bid, it could push the stock price higher. Benzinga's real estate research team has worked hard to identify the best opportunities in today's market. You can sign up for Benzinga’s Weekly REIT Report to get free access.