KeyBanc Capital Markets Initiates Coverage Of CBL & Associates Properties (CBL)

KeyBanc Capital Markets analysts Todd M. Thomas and Jordan Sadler initiated coverage of CBL & Associates Properties, Inc (NYSE: CBL) with a Hold rating.

The analysts said that shares of the regional mall REIT are attractively valued despite a year-to-date increase of 45%.

They said that although capital markets seem to have loosened for mall assets, CBL & Associates Properties will need to be watched closely because of its leveraged balance sheet and near-term debt maturities.

The KeyBanc Capital Markets analysts wrote, "Following the recent rally in CBL shares, the stock looks less attractive than it did just weeks ago, in our view; however, at a 22% discount to the mall sector on a 2010 P/AFFO basis and at an 8.4% implied cap rate, the stock could have some additional room to run should headlines remain positive for the sector and mall asset pricing. Nevertheless, given a full absolute valuation, we suspect that a modest pullback is warranted in the near term, and we would look for a better entry point to establish a new position."