Citi Maintains Hold on Associated Estates Realty Corp. (AEC)

Citi is out with its report on Associated Estates Realty Corp. AEC, maintaining Hold and a $15 PT. In a note to clients, Citi writes, "Lower than expected operating expenses drove AEC's 2c beat in 4Q, but corporate G&A spiked up a bit in 4Q and remains high relative to revenue (part of the G&A increase was expected, but ~$700k, or 2c, wasn't). Acquisition guidance of $50-$100m would seem to suggest that another equity raise is on the way (see below), although none is factored into guidance. Overall, it was a solid report by AEC against reasonable investor expectations, but we still wouldn't expect the equity overhang on AEC's shares to reverse anytime soon." Shares of AEC closed Monday at $15.32, up 0.07% from Friday's close.