Goldman Sachs Reiterates Sell Rating on Weingarten Realty Investors (WRI)

Goldman Sachs is out with a research report this morning, where it reiterates its Sell rating on Weingarten Realty Investors WRI; it has a $22.00 price target on the stock. The GS analysts cited the company's recent investor day, noting that the highlight of the presentation was the company's plan to reduce exposure to non-core assets over the next year, with projected asset sales of $600 million (12% of WRI's overall assets) by year-end 2012. In addition, the company reiterated previously issued assumptions for 2011 FFO per share, in a range of $1.72 to $1.82 (excluding $0.13 - $0.15 of impairments), on flat to +1% SS NOI. As for valuation, the analysts remarked, “Our price target of $22 is in line with our net asset value estimate (using a cap rate of 7.75%). We also rate shopping center REITs KIM and REG at Sell; in contrast, we prefer FRT and DDR, given higher portfolio quality and relative valuation, respectively.”