UDR downgraded to Neutral at BofA on Sunbelt exposure

As previously reported, BofA downgraded UDR to Neutral from Buy with a price target of $33, down from $42. Rent price growth for new leases turned negative in Q3 for companies with significant Sunbelt exposure, noted the analyst, who is downgrading three REITs that have significant exposure to that region. The firm believes rental price growth will become a compounding issue for the industry as peak deliveries of new supply are still several months away and interest rates are on the rise, the analyst added.