Regency Center Named Bear of the Day

Zacks Equity Research, Chicago, made Regency Centers its Bear of the Day for Jan. 8, 2010. It dropped its long-term recommendation for the real estate investment trust's common stock down to underperform "as we anticipate it to perform well below the broader market. The prolonged recession has led to increased tenant bankruptcies, which in turn have led to a decline in occupancy and an increase in vacancy rates. In addition, consumer discretionary spending continues to be under severe stress with a reduction in disposable income." On the positive side, Zacks noted that Regency is one of the largest owners of retail strip properties among REITS with its properties in high income, high-barrier markets that are tenanted by leading national and regional retailers. "If the company can tide over the storm, it can expect a reversal of fortunes in the future. For now, we have a six-month target price of $30 per share," Zacks said.