Headquartered in Jacksonville, Florida, Regency Centers Corporation (REG) is a leading player in the real estate industry. With a market cap of $13.4 billion, Regency Centers specializes in owning, operating, and developing high-quality open-air shopping centers.
REG stock has underperformed the broader market over the past year. The stock has gained 20.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, REG stock is up 10.8%, compared to SPX’s 24.1% returns on a YTD basis.
Narrowing the focus, REG has also lagged behind the Real Estate Select Sector SPDR Fund (XLRE). The exchange-traded fund has gained about 21.1% over the past year.
Regency Centers has underperformed the broader market, reflecting challenges from market volatility and shifting investor sentiment. Despite this, the company's strong portfolio of high-quality, grocery-anchored retail centers and its strategic focus position it for long-term growth and resilience in the retail real estate sector.
Following its Q3 earnings release on Oct. 28, shares of Regency Centers rose 1%. The company reported a 10.1% year-over-year increase in net income attributable to common shareholders, reaching $98.1 million. Additionally, Regency reported Q3 funds from operations (FFO) per share of $1.07, surpassing analysts' consensus estimate of $1.04 by 2.9%. It also raised its 2024 Nareit FFO guidance to $4.27 to $4.29 per share and its core operating earnings guidance to $4.12 to $4.14 per share.
For the current fiscal year, ending in December, analysts expect Regency Centers’ EPS to grow 3.1% to $4.28 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 17 analysts covering REG stock, the consensus is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is less bullish than three months before, with 13 analysts advising a “Strong Buy.”
On Nov. 18, Wells Fargo (WFC) analyst Dori Kesten maintained a “Buy” rating on Regency Centers.
The mean price target of $77.88 represents a 4.9% premium to REG’s current price levels. The Street-high price target of $84 suggests an upside potential of 13.1%.
