UPDATE: Citigroup Downgrades Regency Centers Corp. to Neutral, Lowers PT

In a report published Monday, Citigroup downgraded its rating on Regency Centers Corp.

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.