UPDATE: Bank of America Initiates Kite Realty Group at Buy on Valuation

Bank of America initiated coverage on Kite Realty Group

with a Buy rating and a $6 price objective. Bank of America commented, "The majority of KRG's assets are multi-anchor centers located in Indiana and Florida with the remainder primarily located in the eastern half of the U.S. We view KRG's tenant quality as solid outside of its exposure to office supply retailers and Best Buy. The company's portfolio demographics rank the in the bottom quartile of the shopping center REITs. Within REITs* we are equal weight the shopping center sector and prefer higher quality portfolios with multi-anchor centers, high densities, and less small shop exposure. A 4.5% dividend yield and 12.2% upside to our PO suggests a 16.7% total return, which, in our view warrants a Buy rating." Kite Realty Group closed at $5.35 on Friday.