Morgan Stanley Upgrades Regency Centers (REG) to Overweight, New Top Pick, 'highest quality portfolios in the open air center space'

Morgan Stanley analyst Ronald Kamdem upgraded Regency Centers (NASDAQ: REG) from Equalweight to Overweight with a price target of $75.00 (from $62.00).

The analyst comments "REG has one of the highest quality portfolios in the open air center space as measured by rent per SF of $24.25 and occupancy of 94.6%. While expected organic growth of +2.9% is relatively in-line with peers, what is most underappreciated by the market is the external growth opportunity that is supported by what we view as the best balance sheet in the sector. Indeed, we attended REG's market showcase in its home city Jacksonville in early December and we walked away with higher conviction in management's ability to execute on 2.5-3.0% long term SS-NOI organic growth, and after reinvesting free cash flow on a leverage-neutral basis, an ability to grow FFO 4-4.5% annually."

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 $65.54 yesterday.

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