Regency Centers to Post Q4 Earnings: What's in Store for the Stock?

Regency Centers Corp. REG is slated to report fourth-quarter and full-year 2025 results on Feb. 5, after the closing bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.

In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust’s (REIT) NAREIT FFO per share of $1.15 was in line with the Zacks Consensus Estimate. Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter.

Over the trailing four quarters, the company’s FFO per share exceeded the Zacks Consensus Estimate on three occasions and met in the other, with the average beat being 1.58%. This is depicted in the graph below:

Regency Centers Corporation Price and EPS Surprise

Regency Centers Corporation price-eps-surprise | Regency Centers Corporation Quote

In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its fourth-quarter 2025 performance.

US Retail Real Estate Market in Q4

The final quarter reflected a sector that had largely stabilized after years of uneven recovery, supported by steady consumer demand, diminished uncertainty from tariffs and disciplined supply growth. Holiday sales were resilient. Cushman & Wakefield’s CWK fourth-quarter 2025 retail real estate market report reinforces this improving tone as landlords entered year-end with firmer fundamentals. 

Cushman’s fourth-quarter 2025 data points to strengthening retail demand, with net absorption turning positive across all major U.S. regions. National retail vacancy came in at 5.7%, reflecting relatively tight conditions compared with historical norms. New supply remained limited, helping stabilize occupancy across shopping centers.

Leasing momentum improved toward year-end, driven by grocery chains, discount retailers and experiential tenants absorbing secondary space. Cushman reported approximately 3.4 million square feet of net absorption in the fourth quarter, the strongest quarterly improvement since the fourth quarter of 2023. Asking rents continued to trend higher on a year-over-year basis to $$25.29 psf, supported by stable tenant sales and foot traffic.

Factors at Play for Regency

Regency has a high-quality, open-air shopping center portfolio, with more than 85% grocery-anchored neighborhood and community centers. These centers are necessity-driven by nature and attract dependable traffic. Regency’s premium shopping centers are situated in affluent suburban areas and near the urban trade areas where consumers have high spending power, enabling the company to attract top grocers and retailers. The company has a good tenant mix, with several industry-leading grocers. These factors are likely to have helped it generate stable rental revenues during the fourth quarter.

Supported by a strong balance sheet, the company is likely to have sustained its development and redevelopment efforts during the quarter. Its expansion activities and portfolio revamp over the prior years are likely to have aided its top-line growth in the to-be-reported quarter.

The Zacks Consensus Estimate for REG’s fourth-quarter revenues is pegged at $398.94 million, which indicates an increase of 7.09% from the year-ago quarter’s reported figure.

The company’s activities during the to-be-reported quarter were adequate to garner analysts’ confidence. The consensus mark for quarterly FFO per share has increased by a cent to $1.17 in the past month. The figure implies growth of 7.34% from the prior-year quarter’s reported number.

For 2025, Regency Centers projected NAREIT FFO per share in the range of $4.62-$4.64.

For the full year, the Zacks Consensus Estimate for FFO per share is pegged at $4.63 on revenues of $1.56 billion. This calls for a 7.67% year-over-year increase in real estate FFO per share, while revenues are projected to rise 7.28%.

What Our Quantitative Model Predicts for Regency

Our proven model predicts a surprise in terms of FFO per share for Regency this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Regency currently carries a Zacks Rank of 2 and has an Earnings ESP of +1.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are two other stocks from the retail REIT sector — Federal Realty Investment Trust FRT and Realty Income O — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.

Federal Realty, scheduled to report quarterly numbers on Feb. 12, has an Earnings ESP of +0.90% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Realty Income, slated to release quarterly numbers on Feb. 24, has an Earnings ESP of +0.99% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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