Bank Of America Reiterates Buy On CLP

Bank of America is reiterating its Buy rating on Colonial Properties Trust CLP following recent meetings with the company's management. In the report, Bank of America writes, “We reiterate our Buy rating on CLP after meeting with management at NAREIT. CLP's multi-family portfolio is achieving renewal rates of +6.5% on average and new rates of +2.5-3.0%. We estimate this puts CLP at the upper end of its SS NOI guidance of 4.0%-6.0% for 2011. While CLP management has said they anticipate positive SS NOI in all of their markets this year, we think growth can surpass prior projections. CLP continues to trade at a discount to its multi-family Sunbelt REIT peers, and we believe this gap is unwarranted. We maintain CLP as a top REIT pick.” Bank of America maintains its $25 price target on the stock. CLP closed at $20.35 yesterday.