UPDATE: Wunderlich Securities Reiterates On Urstadt Biddle Properties On Accretive Equity Offering

In a report published Monday, Wunderlich Securities analyst Craig Kucera reiterated a Hold rating on Urstadt Biddle Properties UBA, and raised the price target from $20.00 to $21.00. In the report, Wunderlich Securities noted, “We are raising our price target on Urstadt Biddle Properties (UBA) from $20 to $21 and our FY15 FFO and AFFO estimates by $0.02 and $0.03, respectively, following the issuance of 2.5mm shares of common stock priced at $21.30 and netting approximately $52.1mm. UBA will likely use these proceeds to acquire a recently announced $124.6mm portfolio of four properties located within the greater NYC MSA, and we estimate the transaction to be $0.02 accretive to FFO (assuming a 6.25% cap rate). UBA maintains a conservatively levered balance sheet and trades at a ~3x 2015 FFO multiple premium to similarly sized peers (16.6x vs. 13.6x). Our $21 price target values UBA at 98% of our $21.43 NAV estimate (6.5% cap rate), above similarly sized (<$1B market cap) shopping center REIT peers trading at 95%.” Urstadt Biddle Properties closed on Friday at $21.63.