UPDATE: ISI Group Initiates Coverage on Brixmor Property Group with Neutral, Rating, $21 PT on Fair Valuation

In a report published Wednesday, ISI Group analyst Samit Parikh initiated coverage on Brixmor Property Group BRX with a Neutral rating and $21.00 price target. In the report, ISI Group noted, “We are initiating coverage of Brixmor (BRX) with a Neutral rating and $21 price target. Brixmor, which completed its IPO on October 30th, is the 2nd largest owner of shopping centers in the United States, with 522 wholly-owned assets (70% grocer anchored) and a national footprint. The company raised net proceeds of $891mn in their public offering at $20 per share (includes greenshoe). With no joint-ventures and assets that are only located in the United States, BRX is simply a national portfolio of grocery-anchored and neighborhood shopping centers. At ~92% leased as of 3Q13, BRX still has plenty of occupancy run-way while the other major shopping center REITs are all above 94% leased and approaching 95%. With 7.6x net-debt/EBITDA, BRX will be among the higher levered REITs in our shopping center coverage, and with no plans to dispose of assets in the near-term, deleveraging will come primarily from NOI growth. We estimate net-debt/EBITDA to fall to just over 7x by YE14.” Brixmor Property Group closed on Tuesday at $20.61.