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Investing.com - Lucid Capital Markets initiated coverage on RPT Realty (NYSE:RPT) with a Buy rating and a $3.00 price target on Tuesday. The small-cap REIT, currently trading at $2.71 with a market capitalization of $123 million, has maintained dividend payments for 11 consecutive years, according to InvestingPro data.
The research firm expects RPT’s dividend to be fully covered by earnings available for distribution (EAD) by 2026, following a period since early 2022 when the dividend was not fully supported by earnings. The REIT currently offers an attractive 8.86% dividend yield, though InvestingPro analysis indicates a WEAK financial health score.
Lucid Capital Markets anticipates this improvement will come as the commercial mortgage REIT deploys capital into higher-yielding commercial real estate debt positioned further down the capital stack.
The $3.00 price target represents approximately 57% of Lucid’s 2026 estimated book value of $5.27, compared to peers with market capitalizations below $1 billion that trade at 57% of forward book value.
The target also represents 15 times the firm’s 2026 estimated earnings per share, versus the same peer group currently trading at 18 times earnings.
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