Regency Centers Outperforms Market Expectations: A Look at Recent Financials
Regency Centers Corporation (REG), boasting a market cap of $13.5 billion, focuses on owning and managing grocery-anchored shopping centers. Based in Jacksonville, Florida, this REIT targets high-quality retail properties in affluent and densely populated areas throughout the United States.
Over the past year, Regency Centers has slightly outperformed the overall market. The company’s shares rose by 22.6%, compared to a 20.5% increase in the S&P 500 Index ($SPX). However, since the start of 2025, REG’s stock has increased only a bit, lagging behind the SPX, which saw a 2.9% rise year-to-date.
When examining REG’s performance against the Real Estate Select Sector SPDR Fund (XLRE), a clearer picture emerges. While REG has outperformed the ETF over the past year with a gain of 22.6% versus the ETF’s 9.4%, on a year-to-date basis, the XLRE has surpassed REG with a 3% gain. This pattern highlights varying dynamics within the real estate sector.
On February 6, Regency Centers released its Q4 2024 earnings report, prompting a 1.5% increase in share price during the following trading session. The company achieved a record leased rate of 96.7% and reported a Nareit FFO of $1.09 per share. Same-property Net Operating Income (NOI) grew by 4.0% during the quarter, reinforced by strong leasing activity that involved 8.1 million square feet executed in 2024, including a 9.5% increase in rent spreads.
In addition to outstanding operational performance, Regency has expanded its portfolio through acquisitions such as University Commons in Austin. The company also announced over $35 million in new development projects. Commitment to shareholders remains firm, illustrated by a quarterly dividend declaration of $0.705 per share.
Looking ahead, analysts project a 5.1% increase in REG’s earnings per share (EPS) this fiscal year, expecting it to reach $4.52 on a diluted basis. Historically, the company has exceeded earnings expectations, beating the consensus estimates in each of the last four quarters.
Among the 17 analysts monitoring REG’s performance, the consensus rating stands at “Strong Buy,” comprising 11 “Strong Buy” recommendations, two “Moderate Buys,” and four “Holds.”
This analyst sentiment has remained consistently favorable in recent months.
On January 29, Wells Fargo & Company (WFC) analyst Dori Kesten reaffirmed an “Overweight” rating on Regency Centers while adjusting the price target from $81 to $80.
The average price target of $79.65 indicates a 7% upside from REG’s current trading price. The highest price target from analysts is $84, suggesting a notable upside potential of 12.9%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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