National Securities Starts Trade Street Residential (TSRE) at Neutral

National Securities initiated coverage on Trade Street Residential (NASDAQ: TSRE) with a Neutral rating and a price target of $7.00.

Analyst John R. Benda said, "Since completing its IPO nary a year ago, TSRE’s path has been much different than that of Independence Realty Trust’s (IRT–BUY, $10.03). Since its IPO, TSRE has had significant executive level management turnover, has only recently in 2Q14 posted its first quarter of positive funds from operations (“FFO”), and is not covering its dividend or interest payments through FFO. We feel FFO dividend coverage will occur in early 2015 for TSRE, an issue that could continue to weigh on the shares. Since its IPO in May 2013, TSRE priced a secondary 36.7% below its IPO price just 8 months later, an alarming fact for initial investors despite 40.7% portfolio growth. Essentially, we believe TSRE has the portfolio size to be profitable but has stumbled along the way and has much work to do to turn its effort around. Our $7.00 price target implies an annual total return, including the current 5.5% dividend yield, of 6.3% at TSRE’s current stock price of $6.95."

For an analyst ratings summary and ratings history on Trade Street Residential click here. For more ratings news on Trade Street Residential click here.

Shares of Trade Street Residential closed at $6.95 yesterday.

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