11:45 AM EDT, 05/03/2024 (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 lower our target by $4 to $59, using a forward P/FFO of 14.0x our 2024 FFO estimate, a premium to retail REIT peers (12.3x) due to REG's concentration within in-favor open-air grocery-anchored retail centers. We keep our 2024 FFO estimate at $4.19 and 2025's at $4.38. REG reported Q1 2024 FFO of $1.04 vs. $1.08, a penny consensus beat on revenues that rose 14% Y/Y. Same-property NOI, excluding lease terminations, rose 1.4% Y/Y as REG maintained strong pricing power. Same-store occupancy of 95.8% was up 90 bps Y/Y as blended cash rental rate growth remained healthy at 8.5% Y/Y. Occupancy growth was strongest in small shop (93.5% vs. 92.6% Y/Y), but anchors saw gains as well (97.2% vs. 96.9%). REG commenced developments/redevelopments with an expected cost of $80M while disposing of one property for $31M. Leverage remains up slightly Y/Y following 2023 acquisitions at 5.4x vs. 5.0x, but we believe the balance sheet remains strong with interest coverage of 5.1x and variable rate debt of 1% of total debt.