Morgan Keegan Reiterates Outperform on Lexington Realty Trust (LXP)

Morgan Keegan is out with a research report this morning, where it reiterates its Outperform rating on Lexington Realty Trust LXP; it has a $9.00 price target on the stock. The MK analysts cited the company's recent announcement of a new 10-year, 141k SF lease with Transamerica at 100 Light Street, its Baltimore office tower, increasing the percentage leased to about 72%. The analysts believe that incremental leasing from this point should be easier with anchor tenants in place; they also noted that management could consider a sale of the property at this point. Morgan Keegan also noted the 5.5% dividend yield, which they believe is “attractive and secure,” requiring only 50% of estimated 2011 AFFO.