Jacksonville, Florida-based Regency Centers Corporation (REG) is a preeminent owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. With a market cap of $12.3 billion, Regency Centers operates as a leading publicly traded retail REIT with thriving properties merchandised with highly productive grocers, restaurants, service providers, and more. It is expected to announce its Q2 earnings after the market closes on Thursday, August 1.
Ahead of the event, analysts expect Regency Centers to report funds from operations (FFO) of $1.02 per share, marginally down from $1.03 per share reported in the year-ago quarter. The company has consistently surpassed or met Wall Street’s FFO estimate in each of the past four quarters. Its FFO per share for the last reported quarter came in at $1.08, mirroring the year-ago quarter figure. However, it exceeded the consensus estimates by 3.9%.
Looking ahead to fiscal 2024, analysts expect Regency Centers to report an FFO per share of $4.19, up 1% from $4.15 in fiscal 2023. In Fiscal 2025, its FFO per share is expected to grow 4.3% annually to $4.37 per share.
REG stock is up 4% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 23.6% gains and the S&P 500 Real Estate Sector SPDR’s (XLRE) 6.3% returns over the same time frame.
Regency Centers faces several headwinds despite its strong performance. Challenges include the impact of higher interest rates affecting refinancing costs, potential disruptions in the debt capital markets amid current volatility, and the ongoing need to manage and navigate through lease commencements and redevelopments. These factors pose risks to maintaining growth momentum and could influence near-term financial strategies and operations.
Despite reporting impressive growth, shares of Regency Centers dipped 1.7% in the subsequent trading session following the release of its Q1 earnings results on May 2. The company reported double-digit growth in both revenues and net income.
Regency Centers stock enjoys widespread bullish sentiment, with a “Strong Buy” rating overall. Out of the 18 analysts covering the stock, 14 recommend a “Strong Buy,” two advise a “Moderate Buy,” and two suggest a “Hold” rating. Over the past month, a new “Strong Buy” recommendation has been added.
The average target price for Regency Centers stock is $69.88, indicating a potential upside of 5.3% from current price levels.
On the date of publication, Sristi Jayaswal 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.
