KBW Maintains Outperform on BRE Properties (BRE)

KBW is out with its report today on BRE Properties BRE, maintaining Outperform. In a note to clients, KBW writes, "BRE issued 9.2M shares (assuming full greenshoe) at $48.00/sh, grossing $442M. Initial use of proceeds includes preferred redemption, asset purchase & line paydown and is earnings and NAV neutral. Longer-term, proceeds will fund external growth, primarily development. Given low initial yields, pipeline projects are currently value-destructive, but strong W'Coast growth outlook should drive l/t value creation. Lowering ‘11 est for redemption charge, partly offset by interest savings." KBW maintains a $56 PT on BRE. Shares of BRE closed Friday at $48.10, down 4.32% from Thursday's close.