DCT reported that same-store net operating income, or income at properties owned at least one year, declined 6.7% on a cash basis year-over-year.
DCT, which was recently listed among the
10 Top Buy-Rated Real Estate Stocks for 2011
, was upgraded to neutral from underweight last month and its stock price was set at $5, by analysts at
At that time, JPMorgan analyst Anthony Paolone cited his view that DCT's stock price offered relatively "decent" value to investors for the upgrade. He added that the company's "economically leveraged properties such as industrial should see more of a benefit as the recovery continues to unfold."
Keefe, Bruyette & Woods's Sheila McGrath recently highlighted DCT as one of her top REIT picks, saying that "although the company will continue to be negatively impacted by weak economy, it has the balance sheet strength to navigate through this challenging market and emerge as a beneficiary with external growth opportunities over the next several years."
McGrath said DCT's occupancy rate remains below stability "which we believe should allow for more potential upside as markets recover." McGrath also said that "DCT's internal growth profile can surprise on the upside by driving occupancy and acquisition opportunities are starting to emerge."
Written by Miriam Marcus Reimer in New York.
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