UPDATE: Keefe, Bruyette & Woods Lowers PT On Resource Capital On 2015 Dividend Guidance

In a report published Tuesday, Keefe, Bruyette & Woods analyst Jade J. Rahmani reiterated a Market Perform rating on Resource Capital Corp. (NYSE: RSO), but lowered the price target from $5.50 to $5.00.

In the report, Keefe, Bruyette & Woods noted, “RSO provided dividend guidance for 2015 and reiterated its 2015 AFFO guidance. RSO expects AFFO of $0.70-$0.80 per share (unchanged), as compared with our $0.72 AFFO estimate. For the dividend, RSO expects to distribute 90% of AFFO, implying $0.64-$0.72 ($0.16-$0.18 per quarter) from the current $0.80 ($0.20/quarter). While we raise our 2015 dividend estimate to $0.65 from our prior $0.40 (based on estimated core earnings), we maintain our core earnings estimate of $0.42 and our Market Perform rating. Our PT moves to $5.00 (from $5.50).”

Resource Capital closed on Monday at $5.07.