Bank of America Merrill Lynch Initiates Coverage of Lexington Realty Trust

Bank of America Merrill Lynch published a research report on Lexington Realty Trust LXP. This report was an initial report that begins Bank of America Merrill Lynch's coverage of this company. According to the report, "The US office and industrial markets appear to have found their bottoms in terms of vacancy rates. Without a double dip both should improve from here, but slow job growth, a weak consumer and rising costs are slowing their recovery. Market rents should remain under pressure for some time. At the same time, LXP's platform, cost of capital and access to the public markets position the company well for acquisitions. LXP's current +5.1% yield represents a +170 bps premium to the average yield for REITs. We view the dividend as secure, and management has guided to ~10% growth per year." Bank of America Merrill Lynch rated Lexington Realty Trust a BUY with a $10.00 price target. Lexington Realty Trust closed yesterday at $8.99.