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Regency Centers (REG)
NASDAQ:REG
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Regency Centers (REG) AI Stock Analysis

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Regency Centers

(NASDAQ:REG)

Rating:76Outperform
Price Target:
$80.00
â–²(15.22%Upside)
Regency Centers benefits from strong financial performance and positive earnings call highlights. However, technical indicators suggest a neutral trend, and valuation metrics indicate potential overvaluation. The company's strategic positioning and growth prospects remain robust, supporting a favorable outlook.
Positive Factors
Financial Performance
1Q25 earnings beat with solid SSNOI growth and miniscule bad debt.
Portfolio Performance
The company's consistent portfolio performance and above-average growth expectations for FY2025 relative to peers position it well for growth and stability.
Tenant Roster Quality
A high-quality tenant roster supports better than expected results.
Negative Factors
Cap Rate Spread
The expected cap rate spread for FY2025 implies 50bps of dilution between buys and sells compared to a positive 100bps spread in FY2024.
Leasing Activity
Leasing volumes & spreads moderated a touch.

Regency Centers (REG) vs. SPDR S&P 500 ETF (SPY)

Regency Centers Business Overview & Revenue Model

Company DescriptionRegency Centers Corporation (REG) is a leading national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas. The company specializes in grocery-anchored retail centers, offering a diverse mix of essential and service-oriented retailers. With a focus on sustainable and community-centered developments, Regency Centers aims to create vibrant shopping environments that cater to the needs of surrounding neighborhoods.
How the Company Makes MoneyRegency Centers makes money primarily through the ownership and management of retail shopping centers. The company's core revenue streams include leasing retail space to tenants, which consist of grocery stores, service providers, and various retail businesses. Regency Centers generates income from base rents, percentage rents based on tenant sales, and recovery of operating expenses like property taxes and maintenance from tenants. Additionally, Regency Centers benefits from property development and redevelopment projects, which can enhance property values and rental income. The company's strategic partnerships with well-established retailers and focus on high-quality locations contribute significantly to its earnings.

Regency Centers Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -2.42%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted robust performance in same property NOI growth, foot traffic, and successful acquisitions, underscored by strong leasing and development execution. Despite external economic uncertainties and a conservative credit loss outlook, the reaffirmation of earnings guidance and credit rating upgrades reflect confidence in Regency Centers' strategic positioning.
Q1-2025 Updates
Positive Updates
Strong Same Property NOI Growth
Regency Centers reported a same property NOI growth of 4.3%, primarily driven by growth in base rent.
Foot Traffic Increase
Foot traffic increased by 7% year-over-year in April, indicating strong consumer engagement and activity at shopping centers.
Successful Acquisition
Acquisition of Brentwood Place in Brentwood, Tennessee, a high-quality asset with significant mark-to-market leasing opportunities, contributing to a high single-digit IRR.
Development and Redevelopment Execution
Successful execution of $500 million in development and redevelopment projects, with blended returns exceeding 9%.
A- Credit Rating Upgrade
Regency Centers received an A- credit rating upgrade from S&P, following an A3 rating by Moody's, the only A ratings in the shopping center REIT sector.
Reaffirmed 2025 Earnings Outlook
Reaffirmation of 2025 earnings outlook, with an implied growth in NAREIT FFO of nearly 6% and same property NOI growth of 3.6% at the midpoint of guidance.
Negative Updates
External Economic Uncertainty
Acknowledgement of elevated volatility and macro uncertainty in the economy, particularly concerning tariffs and potential consumer impact.
Modest Same Property NOI Growth in Q2
Expectation of a modestly elevated growth rate in Q2 NOI due to timing of percentage rent and other income, not affecting base rent growth.
Conservative Credit Loss Guidance
Maintained credit loss guidance of 75 to 100 basis points for 2025, indicating potential for uncollectible lease income and bankruptcy move-outs.
Company Guidance
During the first quarter 2025 earnings call, Regency Centers Corporation provided guidance indicating strong performance with positive same property NOI growth of 4.3%, largely driven by base rent increases and robust leasing activity. The company reaffirmed its 2025 earnings outlook, projecting a near 6% growth in NAREIT FFO and 3.6% growth in same property NOI at the midpoint of guidance ranges. Regency's balance sheet remains strong, with leverage within the target range of 5x to 5.5x and significant liquidity. The company closed a large acquisition in Brentwood, Tennessee, and anticipates closing another grocery-anchored shopping center in the Northeast through its joint venture platform. Despite macroeconomic uncertainties, Regency remains confident in its strategic advantages, emphasizing its focus on essential service-oriented retail, strong tenant health, and continued growth opportunities, including a robust $500 million development and redevelopment pipeline.

Regency Centers Financial Statement Overview

Summary
Regency Centers shows strong revenue growth and profitability, with a robust balance sheet and cash flow management. Moderate leveraging is noted, but overall financial health is solid.
Income Statement
88
Very Positive
Regency Centers has demonstrated solid revenue growth with a strong increase from the previous year, reflecting a healthy market position. The gross profit margin is robust, indicating efficient cost management. Additionally, the net profit margin is consistent, showcasing stable profitability. However, the EBIT margin shows slight fluctuations, suggesting potential variability in operating efficiency.
Balance Sheet
82
Very Positive
The company maintains a healthy equity ratio, underscoring strong financial stability and a solid capital base. The debt-to-equity ratio is moderate, reflecting manageable leverage. Return on equity is stable, indicating consistent returns to shareholders. Nonetheless, a closer watch on debt levels is advisable to prevent potential future risk.
Cash Flow
85
Very Positive
Cash flow generation is strong, with a healthy free cash flow growth rate, indicating efficient cash utilization. The operating cash flow to net income ratio is favorable, suggesting good earnings quality. The free cash flow to net income ratio supports sustainable cash distributions to shareholders. Overall, cash management appears robust with no significant liquidity concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.45B1.32B1.22B1.17B1.02B
Gross Profit626.14M927.70M878.08M839.48M703.10M
EBITDA993.58M780.53M954.43M814.98M646.71M
Net Income400.39M364.56M341.85M174.54M-138.72M
Balance Sheet
Total Assets12.39B12.43B10.86B10.79B10.94B
Cash, Cash Equivalents and Short-Term Investments56.28M84.97M68.78M95.03M378.45M
Total Debt5.02B4.80B3.94B3.93B4.14B
Total Liabilities5.49B5.23B4.68B4.68B4.88B
Stockholders Equity6.72B7.03B6.10B6.04B5.98B
Cash Flow
Free Cash Flow790.20M719.59M660.70M396.66M523.47M
Operating Cash Flow790.20M719.59M655.82M659.39M499.12M
Investing Cash Flow-326.64M-341.98M-206.11M-286.35M-25.64M
Financing Cash Flow-493.02M-355.04M-475.96M-656.46M-210.59M

Regency Centers Technical Analysis

Technical Analysis Sentiment
Negative
Last Price69.43
Price Trends
50DMA
70.98
Negative
100DMA
71.22
Negative
200DMA
71.11
Negative
Market Momentum
MACD
-0.50
Positive
RSI
44.16
Neutral
STOCH
22.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REG, the sentiment is Negative. The current price of 69.43 is below the 20-day moving average (MA) of 70.30, below the 50-day MA of 70.98, and below the 200-day MA of 71.11, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 22.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REG.

Regency Centers Risk Analysis

Regency Centers disclosed 42 risk factors in its most recent earnings report. Regency Centers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Regency Centers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KIKIM
79
Outperform
$14.32B27.685.19%4.72%12.55%45.10%
REREG
76
Outperform
$12.53B32.375.83%4.11%7.39%3.41%
NNNNN
76
Outperform
$8.06B19.959.35%5.41%5.40%-1.33%
BRBRX
73
Outperform
$7.73B24.1210.99%4.55%4.58%12.65%
KRKRG
69
Neutral
$4.98B367.860.81%4.77%4.37%-75.82%
FRFRT
69
Neutral
$8.08B26.709.85%4.73%6.07%24.23%
64
Neutral
$6.92B18.30-1.93%6.80%4.67%-25.44%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
REG
Regency Centers
69.43
5.70
8.94%
KIM
Kimco Realty
21.41
1.04
5.11%
NNN
National Retail Properties
43.15
-0.33
-0.76%
KRG
Kite Realty Group
22.35
-0.22
-0.97%
FRT
Federal Realty
94.34
-10.66
-10.15%
BRX
Brixmor Property
25.54
2.13
9.10%

Regency Centers Corporate Events

Business Operations and Strategy
Regency Centers Updates Investor Presentation for June 2025
Neutral
Jun 2, 2025

On June 2, 2025, Regency Centers Corporation released an updated investor presentation for use at various conferences and meetings. This presentation is available on the investor relations section of Regency’s website, indicating a proactive approach to engaging with investors and stakeholders.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Business Operations and Strategy
Regency Centers Updates Investor Presentation for Conferences
Neutral
Jun 2, 2025

On June 2, 2025, Regency Centers Corporation released an updated investor presentation for use at various conferences and meetings. This presentation is available on the investor relations section of their website, potentially impacting stakeholder engagement and providing insights into the company’s future strategies.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Business Operations and Strategy
Regency Centers Releases 2024 Corporate Responsibility Report
Positive
May 21, 2025

On May 21, 2025, Regency Centers Corporation released its 2024 Corporate Responsibility Report and TCFD-aligned Climate Risk Report, underscoring its commitment to corporate responsibility and climate-related transparency. The reports highlight Regency’s achievements, including a record-high employee engagement score, recognition in the Bloomberg Gender-Equality Index, and significant progress in reducing greenhouse gas emissions. These efforts reflect Regency’s strategy for sustainable growth and long-term value creation, positively impacting its stakeholders and communities.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Regency Centers Releases 2024 Corporate Responsibility Report
Positive
May 21, 2025

On May 21, 2025, Regency Centers Corporation released its 2024 Corporate Responsibility Report and TCFD-aligned Climate Risk Report, emphasizing its commitment to corporate responsibility and transparency in addressing climate-related risks. The reports highlight Regency’s achievements, including a record-high employee engagement score, recognition in the Bloomberg Gender-Equality Index, and significant progress in reducing greenhouse gas emissions. These efforts align with Regency’s strategy for sustainable growth and community impact, reinforcing its long-term value creation for shareholders.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Private Placements and Financing
Regency Centers Closes $400M Senior Notes Offering
Neutral
May 13, 2025

On May 8, 2025, Regency Centers Corporation announced the pricing of a $400 million public offering of senior unsecured notes due in 2032, with a coupon rate of 5.00%. The offering closed on May 13, 2025, and the net proceeds, estimated at $393.7 million, will be used to reduce the company’s line of credit, repay existing debt, and for general corporate purposes, potentially impacting Regency’s financial flexibility and debt management strategy.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Regency Centers Closes $400M Senior Notes Offering
Positive
May 13, 2025

On May 8, 2025, Regency Centers Corporation announced the pricing of a $400 million public offering of senior unsecured notes due 2032, with a 5.00% interest rate. The offering, which closed on May 13, 2025, is expected to generate approximately $393.7 million in net proceeds, which Regency intends to use for reducing its line of credit, repaying existing notes due in November 2025, and for general corporate purposes. This strategic financial move aims to strengthen Regency’s financial position and support its ongoing operations and debt management strategy.

The most recent analyst rating on (REG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Regency Centers stock, see the REG Stock Forecast page.

Shareholder MeetingsDividends
Regency Centers Declares Quarterly Dividends Post-Shareholder Meeting
Positive
May 7, 2025

On May 7, 2025, Regency Centers Corporation held its annual shareholder meeting, where all eleven board nominees were elected, executive compensation for fiscal year 2024 was approved, and KPMG LLP’s appointment as the independent accounting firm was ratified. Additionally, on May 6, 2025, the Board declared quarterly cash dividends on common stock and Series A and B preferred stocks, payable in July 2025, reflecting the company’s ongoing commitment to returning value to shareholders.

Shareholder MeetingsDividends
Regency Centers Declares Quarterly Dividends for July 2025
Positive
May 7, 2025

On May 7, 2025, Regency Centers Corporation held its annual shareholders’ meeting where all eleven director nominees were elected, and shareholders approved the executive compensation for fiscal year 2024. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for 2025 was ratified. On May 6, 2025, the company declared quarterly cash dividends on its common stock and Series A and B preferred stocks, with payments scheduled for July 2025, reflecting Regency’s ongoing commitment to returning value to its shareholders.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Regency Centers Acquires Brentwood Place for $119M
Positive
Apr 29, 2025

Regency Centers reported its first quarter 2025 financial results, highlighting a net income of $0.58 per diluted share, consistent with the previous year. The company achieved a 4.3% increase in Same Property Net Operating Income and executed 1.4 million square feet of new and renewal leases with significant rent spreads. Regency also acquired Brentwood Place in Nashville for $119 million and saw its credit rating upgraded to ‘A-‘ by S&P Global Ratings. The company reaffirmed its 2025 earnings guidance, indicating stable growth and strong operational fundamentals.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Regency Centers Reports Q1 2025 Financial Results
Positive
Apr 29, 2025

On April 29, 2025, Regency Centers reported its financial and operational results for the first quarter of 2025, highlighting a stable net income per diluted share of $0.58, consistent with the previous year. The company achieved a Nareit FFO of $1.15 per diluted share and Core Operating Earnings of $1.09 per diluted share, with a 4.3% increase in Same Property NOI year-over-year. Regency also acquired Brentwood Place in Nashville for $119 million and saw its credit rating upgraded to ‘A-‘ by S&P Global Ratings. The company remains optimistic about its growth prospects, supported by robust leasing activity and strategic acquisitions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025