UPDATE: Urstadt Biddle Properties (UBA) PT Raised to $23 at B.Riley

B.Riley analyst Craig Kucera raised the price target on Urstadt Biddle Properties (NYSE: UBA) to $23.00 (from $22.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating on Urstadt Biddle Properties, Inc. (UBA) and are raising our price target from $22 to $23 given an increase to our 2022E FFO and NAV estimates. UBA's lease-up of vacancy incurred due to the pandemic improved in 4Q21 by 90bps sequentially while leasing spreads on renewals improved >9%. In addition, UBA's rent collections remained at 94%, while no additional tenants were converted to cash basis accounting. As such, we are raising our 2022E FFO from $1.53 to $1.57, while establishing a 2023E FFO of $1.66. Per-share results are now ahead of pre-pandemic levels, which we anticipate to persist as the impact of the pandemic on the greater NYC metro area diminishes, while UBA's portfolio still has ~3% of potential leasing upside to optimized operating levels. Given an increase in our 2022E NOI estimate, our NAV is rising from $24.78 to $25.54. Our $23 price target represents 90% of NAV (based on 2022E NOI at a 6.25% cap rate) and is 15x 2022E FFO vs. a peer group of shopping center REITs trading at 97%/17x."

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