DCT Industrial Trust's (NYSE:DCT) Inland MFG Exposure Causes Lagging Recovery

The heavy exposure of DCT Industrial Trust Inc. (NYSE:DCT) to inland manufacturing will cause their portfolio to be among the last to experience a recovery, says FBR Capital.

FBR says, "Our investment thesis on DCT Industrial focuses on our expectation that the company's substantial exposure to inland manufacturing markets will set the company's portfolio to be among the last to see a fundamental recovery. However, DCT Industrial has been an active acquirer in recent weeks, and it has also begun to show some signs of leasing strength. Nevertheless, we still do not believe DCT Industrial's markets are past their fundamentals' inflection point where rents begin their upward trajectory, enough to warrant a higher premium to NAV yet. The -4.2% potential return to our price target compares to our RMZ expectation of 8.2%, warranting an Underperform rating."

FBR Capital maintains their "Underperform" rating on DCT Industrial Trust, which closed Thursday at $5.43, down $0.05, or 0.91 percent. FBR has a price target of $5.25 on them.