UPDATE: MLV & Co Initiates Coverage on Government Properties Income Trust on Good Investment Opportunity

In a report published Tuesday, MLV & Co analyst Jonathan Petersen initiated coverage on Government Properties Income Trust (NYSE: GOV) with a Hold rating and $24.00 price target.

In the report, MLV & Co noted, “We view GOV as a good fit for dividend-seeking investors, as the 6.9% dividend yield is the highest among Office REITs; however, GOV pays out nearly all of its AFFO in dividends, and we don't expect significant AFFO growth over the next few years, which would justify a dividend increase; leverage is low, at debt-to-total market cap of 31% and debt-to-EBITDA of 4.6x; and GOV currently trades at a 7% premium to NAV, and we believe a premium is not warranted.”

Government Properties Income Trust closed on Monday at $24.77.