It has been about a month since the last earnings report for Regency Centers (REG). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Regency Centers due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Regency Centers Q2 FFO & Revenues Beat, Same-Property NOI Rises
Regency Centers reported second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.
Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter. The company increased its 2025 NAREIT FFO per share outlook.
Total revenues of $380.8 million increased 6.6% from the year-ago period. The figure surpassed the Zacks Consensus Estimate of $377.4 million.
Behind the Headlines
In the second quarter, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10%.
As of June 30, 2025, REG’s same property portfolio was 96.5% leased, flat sequentially and expanded 100 bps year over year. The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 98%, increasing 90 bps year over year. The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.9%, increasing 100 bps year over year.
The same-property NOI, excluding lease termination fees, increased 7.4% on a year-over-year basis to $274.8 million. The same-property base rent growth contributed 4.5% to the same-property NOI growth in the quarter.
As of June 30, 2025, Regency Centers’ in-process development and redevelopment projects have estimated net project costs of $518 million at the company’s share. So far, it has incurred 58% of the cost.
Portfolio Activity
In the second quarter of 2025, Regency Centers acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, through the company's Oregon joint venture for approximately $5 million. In the quarter, the company disposed of Van Houten Plaza in Passaic, NJ, for around $6 million.
Following the quarter end, Regency Centers acquired a portfolio of five shopping centers in the Rancho Mission Viejo master-planned community in Orange County, CA, for $357 million. The company also disposed of 101 7th Avenue in New York, NY, for $11 million.
Balance Sheet
As of June 30, 2025, this retail REIT had nearly $1.5 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt and preferred stock to trailing 12 months (TTM) operating EBITDAre were 5.3X.
2025 Outlook
Regency Centers has increased its 2025 NAREIT FFO per share guidance in the range of $4.59-$4.63, compared to the prior guidance $4.52-$4.58.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Regency Centers has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Regency Centers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Regency Centers Corporation (REG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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