Keefe, Bruyette, & Woods Reiterates Market Perform on Colonial Properties (CLP)

Keefe, Bruyette, & Woods is out with a research report this morning, where it reiterates its Market Perform rating on Colonial Properties Trust CLP; it has a $17.00 price target on the stock. The KBW analysts cited the company’s recent issuance of 6.3 million shares via ATM and its preferred redemption. The analysts adjusted estimates for 2010 and 2011 following the company’s actions from $1.01 and $1.03 to $1.00 and $1.08, respectively. They added that they generally don’t like to see equity issuances below NAV, but the discount was minimal and the uses of the proceeds are accretive relative to CLP's implied cost of equity, which is positive. Colonial Properties Trust is a REIT that owns interests in over 34,000 apartment units, 16.5 million sf of office space, and 8.9 million sf of retail space across the Sunbelt.