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Research Alert: CFRA Raises Opinion On Shares Of Regency Centers Corporation To Hold From Sell

05/10/2021 08:12

12:10 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price by $25 to $70, equal to 20.9x our 2021 FFO estimate, raised by $0.31 to $3.35; but we maintain 2022's at $3.41. REG reported Q1 FFO per share of $0.90 vs. $0.98, $0.14 above consensus on revenue that was down 3% Y/Y but 6% above expectations. REG's same property portfolio was 92.5% leased, down 40 bps from the previous quarter driven by both anchors and shops. Same property net operating income declined 1.6% Y/Y for Q1, much improved from the 10.5% Y/Y decline last quarter. REG collected 93% of Q1 base rents, with entertainment and fitness tenants still weighing on results. Foot traffic has recovered to approximately 90% of the pre-pandemic 2019 levels. We raise our opinion as REG is faring better than we expected with higher traffic, perhaps owing to its more insulated tenant base with more necessity shopping, such as groceries, as well as a surge in restaurant and other spending due to some pent-up demand and stimulus money.