02:40 PM EDT, 05/07/2024 (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 keep our target price at $56 on a forward P/FFO of 13.3x our 2024 FFO estimate, a discount to O's 10-year average multiple (18.0x) as higher interest rates put pressure on net-lease retail. We keep our 2024 FFO estimate at $4.23 and 2025's at $4.42. O posted Q1 2024 FFO of $1.05 vs. $1.03, a penny consensus beat. Same-store rental revenues rose 0.8% Y/Y, driven by Industrial (+2.9%), Gaming (+1.7%), Other (+1.4%), and Retail (+0.4%). While retail revenue growth slowed from Q4 (+2.7%), we believe there is room for acceleration through the year as the leasing environment remains strong. Portfolio occupancy also remained healthy at 98.6% vs. 99.0% Y/Y while the leasing recapture rate was at 104.3%. O continues to invest heavily, with $598M in Q1 acquisitions keeping it on target to reach its $2.0B 2024 acquisition guidance. The balance sheet also remains healthy with leverage at 5.6x and 6% variable rate debt. Tenants on the credit watch list (5.2% of annual rent) remain in line with historic averages.