UBS maintains a 'Neutral' on Regency Centers (REG); Encouraged by Positive Sentiment, But See Modest Growth in 2012-13

UBS maintains a 'Neutral' on Regency Centers (NYSE: REG) price target raised from $39 to $42.

UBS analyst says, "On the conference call, REG provided some positive data points on small shop leasing – moveouts are the lowest since 2006, the leased rate was up 110bps q/q, and +300ksf of positive absorption is expected in 2012. Additionally, overall pricing power appears to be improving at the margin. As a result, we’ve raised our occupancy and rent growth forecasts modestly in 2012, bringing our FFOPS estimate to $2.45 from $2.41."

"We Don’t See Much Room for Valuation Expansion from Here: We see the stock as fairly valued at the current level, trading at a 6.7% implied cap rate, a 4% discount to forward NAV and a 5% premium to DCF. The stock also trades at 20x 2012E AFFO, a 3% discount to strips – warranted in our view given below-peer-average earnings growth over the next two years."

For an analyst ratings summary and ratings history on Regency Centers click here. For more ratings news on Regency Centers click here.

Shares of Regency Centers closed at $42.18 yesterday.

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