UPDATE: Stifel Nicolaus Upgrades Lexington Realty Trust to Buy

Stifel Nicolaus is out with its report today on Lexington Realty Trust LXP, upgrading LXP from Hold to Buy. In a note to clients, Stifel Nicolaus writes, "We are upgrading Lexington Property Trust to Buy from Hold as we think 1) the recent sell-off of 8% in the last month, one of the highest of any office/industrial REIT we cover, is overdone, 2) LXP is in a position to increase the dividend 6-9% per annum in 2011-2013 and still have it well covered by FAD, 3) the dividend plus dividend growth valuation metric will outweigh the full real estate valuation metrics concerns, 4) LXP is now shifting from a defensive to an offensive stance, making investments in build-to-suit, sale-leaseback acquisitions, 5) LXP is likely to dispose of $275-$300mm of non-core, under-leased assets through 2012, including the now fully leased Transamerica Tower (our old headquarters at 100 Light Street), 6) the Inland JV buy/sell is likely to be exercised in 2012, resulting in $180mm of cash coming to LXP, 7) accretive investments are the likely use." Stifel Nicolaus maintains a $10 PT on LXP. Shares of LXP closed Wednesday at $8.72. of cash for all of these events.