DEI - Baird upgrades Kilroy Alexandria cuts Cousins Highwoods Douglas Emmett

Baird analyst David Rodgers upgrades Kilroy Realty ([[KRC]] -1.9%) and Alexandria Real Estate Equities ([[ARE]] +1.1%) to Outperform as he expects the primary office segment to outperform secondary by 800+ basis points.Tags KRC as top pick."The limited upside to two- and five-year replacement cost averages and fundamental challenges suggest favoring balance sheet strength, larger credit tenants, limited rollover exposure and deeper value," Rodgers writes.Downgrade: Cousins Properties ([[CUZ]] -3.4%), Highwoods Properties ([[HIW]] -2.4%), and Douglas Emmett ([[DEI]] -2.3%) to Neutral.Overall, Rodgers moves the office REIT sector to Market Weight: "The bounce-back in office REITs during 2H20 leaves reduced upside, and discounts to replacement cost suggest only ~10%upside," he writes.See how office REITs rank in terms of Quant ratings on SA's stock screener.

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Baird upgrades Kilroy, Alexandria, cuts Cousins, Highwoods, Douglas Emmett