Credit Suisse analyst Tayo Okusanya has downgraded shares of RPT Realty ( NYSE: RPT ) to Neutral from Outperform Tuesday on the basis of a weakening earnings growth outlook amid a slew of near-term headwinds.
Those negative factors include "occupancy, growing concerns about leverage, interest rate exposure and a weaker acquisition outlook," Okusanya wrote in a note to clients.
Nevertheless, the retail REIT experienced stronger-than-expected Q2 earnings as the company continues to scale its portfolio. "Considering our 2022 expected capital recycling activities, almost 50% of our ABR will be in the top-growing markets in the Boston and suburb regions in the country," CEO and president Brian Harper said during his company's Q2 earnings call .
The Neutral rating converges with the Quant's Hold rating but diverges from the average Wall Street analysts' Buy rating.
At the same time, Okusanya reiterated his Outperform ratings on Brixmor Property ( NYSE: BRX ) and Kimco Realty ( NYSE: KIM ), as both retail REITs have robust internal growth profiles as well as solid liquidity profiles, he wrote.
The Quant system , meanwhile, screened Getty Realty ( GTY ) as the top-rated retail REIT among peers, followed by IvenTrust Properties ( IVT ) and Kimco Realty ( KIM ).
In September, SA contributor The Investment Doctor assessed the favorable risk-reward profile for RPT Realty preferred shares .
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Credit Suisse downgrades RPT Realty due to weaker earnings growth outlook