UPDATE: Citigroup Downgrades Regency Centers Corp. to Neutral, Lowers PT
In a report published Monday, Citigroup downgraded its rating on Regency Centers Corp. (NYSE: REG) from Buy to Neutral, and lowered its price target from $54.50 to $50.00.
Citigroup noted, “Continued improvement in REG's fundamentals and portfolio quality from asset recycling are starting to be reflected in shares, up 27% year to date. We continue to believe that the management team can progressively add value through aggressive leasing, re/development and asset recycling, however we do anticipate some dilution from pending asset sales in “non-targeted” markets. With shares trading at a 6.4% implied cap rate and close to our NAV, we downgrade shares to Neutral from Buy and reduce our target price from $54.50 to $50. To arrive at our target price, we apply a ~20x multiple to our 2013 FFO estimate, a premium to peers given high-quality asset base, good management, a solid balance sheet and a platform that has delivered growth through development and JVs in the past. We retain an overweight in our REIT model portfolio.”
Regency Centers Corp. closed on Friday at $46.41.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.