Jacksonville, Florida-based Regency Centers Corporation (REG) is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Valued at $12.9 billion by market cap, REG is one of the largest operators of shopping centers with grocery stores as anchor tenants, consisting of highly productive grocers, restaurants, service providers, and best-in-class retailers.
Shares of this leading retail REIT have underperformed the broader market considerably over the past year. REG has gained 15% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.3%. In 2024 alone, REG’s stock rose 5.2%, compared to the SPX’s 17.6% rise on a YTD basis.
Narrowing the focus, REG has also lagged behind the Invesco S&P 500 Equal Weight Real Estate ETF (RSPR). The exchange-traded fund has gained about 17.6% over the past year. Moreover, the ETF’s 7.3% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Aug. 1, REG shares closed up more than 1% after reporting its Q2 earnings results. Its FFO of $1.06 surpassed Wall Street expectations of $1.02. The company’s net income per share stood at $0.54, up 5.9% year over year. REG raised full-year Nareit funds from operations guidance and expects it to be between $4.21 and $4.25, from the previous forecast of $4.15 to $4.21.
For the current fiscal year, ending in December, analysts expect REG’s EPS to grow 1.9% to $4.23 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 18 analysts covering REG stock, the consensus is a “Strong Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buys,” and two “Holds.”
This configuration is slightly more bullish than two months before, with 13 analysts advising a “Strong Buy.”
On Aug. 5, Robert W. Baird analyst Wes Golladay maintained a “Buy” rating on REG with a price target of $71.
The mean price target of $71.65 represents a 1.6% premium to REG’s current price levels. The Street-high price target of $80 suggests an upside potential of 13.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
