Parkway Properties (NYSE:PKY) Recovery Will Be Long, Slow

With occupancy results falling at the end of 2010 for Parkway Properties (NYSE:PKY), FBR has lowered their price target on the company, while maintaining their rating.

FBR says, "We reiterate our rating and are lowering our price target from $20.00 following Parkway Properties' recently announced 2010 year-end occupancy results, and detail surrounding first quarter 2011 move-outs. Our investment thesis on shares of PKY remains focused on the substantial 15% discount we apply to our NAV estimate to arrive at our price target, which we believe is justified through our expectations for a longer and slower recovery in Parkway's markets relative to office REIT peers. The 13% potential return implied by our price target compares to our RMZ expectation of 6%, warranting an Outperform rating...We are revising our 2011, 2012, and 2013 FFO per share estimates to $2.44, $2.33, and $2.42 respectively."

FBR Capital maintains an "Outperform" rating on Parkway Properties (PKY), which closed Wednesday at $16.62, down $0.60, or 3.48 percent. FBR lowered their price target to $19.50 on Parkway.