BRE Properties (NYSE:BRE) was downgraded by stock analysts at UBS AG from a “buy” rating to a “neutral” rating in a report issued on Friday, TheFlyOnTheWall.com reports. They currently have a $55.00 price objective on the stock, up from their previous price objective of $53.00. UBS AG’s price objective points to a potential upside of 4.52% from the company’s current price.
The analysts wrote, “We see a low probability (10%) of BRE being sold to the Land & Buildings (‘L&B’) consortium as BRE seems focused on executing its current business plan. This is true in light of (A) ESS’ failed efforts to acquire BRE in late 2012; (B) 2Q results that showed operational improvements (ie San Diego rent growth); and (C) lack of transparency on the members/funding of the L&B consortium. Our $57 NAV for BRE comprises current portfolio ($49 per share) plus the development pipeline ($8). BRE trades at a 7% discount to our NAV, compared with the 3% discount for the Multifamily REIT peers. As a going concern, we believe BRE should trade below NAV based on 1) high G&A as % of NOI, 2) below-par track record of management creating value, 3) risks inherent to its development pipeline.”
Separately, analysts at Zacks reiterated a “neutral” rating on shares of BRE Properties in a research note to investors on Tuesday, July 16th. They now have a $54.00 price target on the stock.
Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. BRE Properties currently has a consensus rating of “Hold” and a consensus target price of $52.33.
BRE Properties (NYSE:BRE) traded down 0.99% on Friday, hitting $52.10. BRE Properties has a 1-year low of $45.76 and a 1-year high of $55.76. The stock’s 50-day moving average is currently $50.47. The company has a market cap of $4.015 billion and a price-to-earnings ratio of 27.22.
BRE Properties (NYSE:BRE) last announced its earnings results on Tuesday, July 30th. The company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.03. The company had revenue of $101.90 million for the quarter, compared to the consensus estimate of $100.48 million. During the same quarter in the previous year, the company posted $0.59 earnings per share. The company’s revenue for the quarter was up 6.9% on a year-over-year basis. On average, analysts predict that BRE Properties will post $2.44 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 30th. Shareholders of record on Friday, September 13th will be given a dividend of $0.40 per share. This represents a $1.58 dividend on an annualized basis and a yield of 3.00%. The ex-dividend date of this dividend is Wednesday, September 11th.
BRE Properties, Inc (NYSE:BRE) is a self-administered equity real estate investment trust (REIT) focused on the development, acquisition and management of multifamily apartment communities primarily located in the metropolitan markets within the State of California, and the Seattle, Washington region.