- Analyst Steve Sakwa says Brandywine Realty (BDN +2.4%) is set to return to consistent earnings growth now that it's mostly finished with its portfolio repositioning. He upgrades to Buy from Hold.
- Looking at broader themes for next year, Sakwa suggests overweighting residential, office, mall, and manufactured-housing REITs, and underweighting health-care, triple-net, and student-housing names.
- Top picks in apartments are AvalonBay (AVB +0.3%), Essex (ESS +1%), and UDR (UDR +0.9%); in malls General Growth (GGP +0.6%); in office Mack-Cali (CLI +0.9%), Vornado (VNO +1.1%), Alexandria (ARE +0.9%), and Brandywine; in industrial Prologis (PLD +0.6%); in storage CubeSmart (CUBE +0.2%), Life Storage (LSI +0.7%); in manufactured housing Sun Communities (SUI +0.7%).