Jacksonville, Florida-based Regency Centers Corporation (REG) is a prominent real estate investment trust. It owns, manages, and develops grocery-anchored shopping centers in affluent suburban areas across the U.S. With a market cap of $13.4 billion, Regency’s portfolio includes over 400 properties and community-focused spaces offering shopping, dining, and entertainment options.
Companies worth $10 billion or more are generally described as "large-cap stocks," Regency fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the Retail REIT industry.
Regency touched its 52-week high of $75.26 on Sep. 12 and is now trading 5.8% below that peak. Despite surging 15.5% over the past three months, REG has lagged behind the Real Estate Select Sector SPDR Fund’s (XLRE) 17.1% gains during the same time frame.
Over the longer term, REG gained 5.9% in 2024 and 19.7% over the past 52 weeks, underperforming XLRE’s 10.4% gains on a YTD basis and 30.5% returns over the past year.
To confirm the bullish trend, REG has been trading above its 50-day moving average since mid-May and above its 200-day moving average since mid-June with slight fluctuations.
Shares of Regency Centers rose 2.5% after the release of its Q2 earnings on Aug. 1. The company reported an annual topline growth of 13.7%, reaching $357.3 million. Its net income attributable to common shareholders surged by 14.4% to $99.3 million. Additionally, it also reported a 10.9% year-over-year growth in cash from operation during the first half of 2024, reaching $371.2 million, exhibiting its excellent cash-generating capabilities.
Furthermore, Regency reported funds from operations (FFO) per share of $1.06, exceeding Wall Street’s expectations by 3.9%, bolstering investor confidence.
Regency’s competitor, Federal Realty Investment Trust (FRT), gained 25.7% over the past year and 10.3% in 2024, outperforming REG.
Among the 17 analysts covering the REG stock, the consensus rating is a “Strong Buy.” The mean price target of 75.76 suggests a potential upside of 6.8% from current price levels.
On the date of publication, Aditya Sarawgi 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.
