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Regency Centers Corporation REG reported first-quarter 2025 NAREIT funds from operations (FFO) per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. The figure increased 6.5% from the prior-year quarter.
Results reflect healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income (NOI) and base rents during the quarter.
Total revenues of $380.9 million increased 4.7% from the year-ago period. The figure surpassed the Zacks Consensus Estimate of $374.9 million.
Per Lisa Palmer, president and CEO of Regency, “We continue to experience robust operating fundamentals at our shopping centers, amplified by the commencement of our leasing pipeline and accretion from our investments platform.”
REG’s Q1 in Detail
In the first quarter, Regency Centers executed approximately 1.4 million square feet of comparable new and renewal leases at a blended cash rent spread of 8.1%.
As of March 31, 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 98.3%, increasing 130 bps year over year.
The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.7%, increasing 70 bps year over year.
The same-property NOI, excluding lease termination fees, increased 4.3% on a year-over-year basis to $271.5 million. The same-property base rents contributed 4% to the same-property NOI growth in the quarter.
As of March 31, 2025, Regency Centers’ in-process development and redevelopment projects have estimated net project costs of around $499 million at the company’s share. So far, it has incurred 51% of the cost.
REG’s Portfolio Activity
In the first quarter of 2025, Regency acquired Brentwood Place in Nashville, TN, for around $119 million at its share. The company also purchased an outparcel adjacent to its Orange Meadows shopping center in Orange, CT, for around $4 million at its share.
REG also bought out its partner's interest in Putnam Plaza in Carmel, NY, for around $10 million and now owns 100% of the asset.
REG’s Balance Sheet
As of March 31, 2025, this retail REIT had nearly $1.2 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt and preferred stock to operating EBITDAre was 5.3X.
In February 2025, REG received a rating upgrade to "A-", with a stable outlook from S&P Global Ratings (“S&P”).
REG’s 2025 Outlook
Regency Centers has maintained the initial 2025 guidance. The 2025 NAREIT FFO per share is expected in the range of $4.52-$4.58. The Zacks Consensus Estimate is presently pegged at $4.54, which is within the guided range.