BofA Securities analyst Jeffrey Spector recalibrated the investment landscape for a handful of retail REITs after the Retail Executive Summit with 8 seasoned REITs.
Venturing into the financial labyrinth, Spector upgraded Acadia Realty Trust AKR to Buy from Neutral, elevating the price target to $20 from $18.
The strategy hinges on the robust internal growth vision, immediate opportunities for expansion, and the promise of surpassing FY24 guidance on the road to recovery.
With a geographic reach extending to lagging markets like Chicago and a reduction in street lease capital expenditure, Acadia is poised for an economic Renaissance.
Spector’s crystal ball predicts an FFO per share of $1.30 in 2024 and a shinier $1.35 in 2025.
Shifting gears, Spector also bestowed the golden touch upon Tanger Inc. SKT, nudging the rating up to Neutral from Underperform, anchoring the price target at a lofty $31 from $24.
The bullish sentiment mirrors the company’s fortress-like platform, fortified balance sheet, and the radiant glow of enhanced earnings predictability.
Foretelling the FFO per share to dance at $2.06 in 2024 and potentially pirouette to $2.14 in 2025 leaves investors anxiously waiting for the show to begin.
However, not all voyages lead to El Dorado. Spector swung his sword and downgraded Kimco Realty Corporation KIM to Neutral from Buy, slicing the price target to $20 from $24.
This act reflects the dwindling accretion on Kimco’s balance sheet following the acquisition of RPT Realty for a staggering $2 billion.
The tale unfolds with Kimco sealing the deal on the acquisition of RPT in the crisp cold of January 2024.
Spector envisions the FFO per share hovering at a modest $1.56 in 2024 and potentially catching a gust to $1.65 in 2025.
Adding a tinge of reality to the reverie, Spector also cast a lowering spell on Retail Opportunity Investments Corp. ROIC, downgrading it to Underperform from Neutral, bringing the price target down to $12 from $14.5.
This downward spiral stems from the higher jeopardy posed by the company’s dilutive acquisitions compared to its more robust peers, leaving a smaller runway for thriving growth initiatives.
The future foretells an FFO per share at $1.04 in 2024, with a hint of optimism nudging it to $1.06 in 2025.
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