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Regency Centers (REG) Q4 FFO Beats Estimates, NOI Slips
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Regency Centers Corporation’s (REG - Free Report) fourth-quarter 2020 NAREIT funds from operations (FFO) per share of 76 cents surpassed the Zacks Consensus Estimate of 72 cents. However, the reported figure is lower than the prior-year quarter’s $1.00.
Results reflect a decline in same-property net operating income (NOI) due to a higher rate of uncollectible lease income in relation to the coronavirus pandemic.
Further, total revenues of $258.5 million lagged the Zacks Consensus Estimate of $261.3 million. Moreover, the top line fell 10.5% year on year.
Notably, roughly 97% of Regency Centers’ tenants were open, based on pro-rata Annual Base Rent (ABR) as of the end of January 2021. As of that date, the company had executed rent deferral agreements on more than 1,600 leases, with total deferred rent of $40.8 million. Further, as of Feb 8, 2021, the company collected 92% of fourth quarter pro-rata base rent, in addition to 1% subject to executed deferral agreements. The retail REIT also continues to make progress on the second- and third-quarter receivables.
For 2020, the company reported NAREI FFO per share of $2.95, down from the prior year’s $3.89. Total revenues of $1.02 billion slid 10.3% year on year.
Inside the Headlines
During the fourth quarter, Regency Centers executed 1.7 million square feet of comparable new and renewal leases with blended rent spreads of 0.6%.
As of Dec 31, 2020, the company’s wholly-owned portfolio, along with its pro-rata shares of co-investment partnerships, was 92.3% leased. Its same-property portfolio was 92.9% leased, reflecting a contraction of 60 basis points (bps) sequentially.
In its same-property portfolio, anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 95.4%, highlighting a contraction of 60 bps sequentially, while same property shop percent leased (includes spaces less than 10,000 square feet) was 88.5%, marking a decrease of 70 bps sequentially.
Same-property NOI excluding termination fees dropped 10.5% on a year-over-year basis. Results reflect a higher rate of uncollectible lease income pertaining to the pandemic.
Portfolio Activity
In the October-December quarter, the company accomplished one development and two redevelopment projects with combined pro-rata costs of $29.8 million. As of Dec 31, 2020, the company had 14 properties in development or redevelopment, with estimated net project costs of $319.3 million and an assessed $170 million of remaining costs to complete.
Moreover, during the quarter, the company sold five shopping centers for a total of $77.8 million at Regency’s share, as well as non-income producing land for a combined gross sales price of $8.1 million at its share.
Liquidity Update
As of Dec 31, 2020, Regency Centers had cash, cash equivalents, and restricted cash of $378.5 million, up from $115.6 million at year-end 2019. The retail REIT had full capacity under its $1.2-billion revolving credit facility. As of that date, its pro-rata net debt-to-operating EBITDAre ratio was 6.0x.
Additionally, following its repayment of the $265-million term loan due January 2022 using cash available in January 2021, the company has no unsecured debt maturities until 2024.
Moreover, Regency announced about its amended and restated unsecured revolving credit facility that closed on Feb 9, 2021. The move, while maintains the size of the facility at $1.25 billion, extends the maturity date to Mar 23, 2025. Also, there are options for Regency to extend the maturity for two additional six-month periods.
Outlook
Regency projects 2021 NAREIT FFO per share in the range of $2.96-$3.14. The Zacks Consensus Estimate for the same is currently pegged at $3.31.
The company expects same-property NOI change, excluding termination fees, in the range of -1.0% to +2.5%.
Dividend Update
On Feb 10, Regency Centers’ board of directors announced a quarterly cash dividend of 59.5 cents per share on its common stock. The dividend will be paid out on Apr 6, to its shareholders of record as of Mar 15, 2021.
Share Repurchase
On Feb 3, the company’s board of directors authorized the buyback by Regency of up to $250 million of its common stock. This authorization is slated to expire on Feb 3, 2023.
Regency Centers currently carries a Zacks Rank #4 (Sell).
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2020 FFO per share of $2.17 missed the Zacks Consensus Estimate of $2.19. The reported figure also came in 26.7% lower than the year-ago quarter’s $2.96. Results reflected the pandemic’s adverse impact on the company’s domestic and international operations, with an impact of 95 cents per share, chiefly on reduced revenues, partly mitigated by cost-reduction moves.
Kimco Realty Corp.’s (KIM - Free Report) NAREIT FFO per share came in at 31 cents, beating the Zacks Consensus Estimate of 30 cents for the December-end quarter. Results highlighted better-than-anticipated revenue numbers. Remarkably, the retail REIT generated revenues of $269.4 million, exceeding the consensus mark of $267.8 million. Nonetheless, the FFO per share came in lower than the year-ago quarter’s 36 cents. Also, revenues declined 9% year on year. Results underlined a fall in same-property NOI, mainly affected by a charge for potentially uncollectible accounts receivable.
Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2020 adjusted FFO per share of $1.14 surpassed the Zacks Consensus Estimate of $1.07. Results reflected better-than-anticipated revenues. Quarterly revenues of $219.5 million topped the consensus mark of $208.9 million. However, the reported FFO per share decreased from the $1.58 reported in the year-ago quarter. In addition, revenues fell 8.2% year on year in the fourth quarter. The pandemic’s adverse impact and the resultant collectability-related impacts prompted these year-over-year declines.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Regency Centers (REG) Q4 FFO Beats Estimates, NOI Slips
Regency Centers Corporation’s (REG - Free Report) fourth-quarter 2020 NAREIT funds from operations (FFO) per share of 76 cents surpassed the Zacks Consensus Estimate of 72 cents. However, the reported figure is lower than the prior-year quarter’s $1.00.
Results reflect a decline in same-property net operating income (NOI) due to a higher rate of uncollectible lease income in relation to the coronavirus pandemic.
Further, total revenues of $258.5 million lagged the Zacks Consensus Estimate of $261.3 million. Moreover, the top line fell 10.5% year on year.
Notably, roughly 97% of Regency Centers’ tenants were open, based on pro-rata Annual Base Rent (ABR) as of the end of January 2021. As of that date, the company had executed rent deferral agreements on more than 1,600 leases, with total deferred rent of $40.8 million. Further, as of Feb 8, 2021, the company collected 92% of fourth quarter pro-rata base rent, in addition to 1% subject to executed deferral agreements. The retail REIT also continues to make progress on the second- and third-quarter receivables.
For 2020, the company reported NAREI FFO per share of $2.95, down from the prior year’s $3.89. Total revenues of $1.02 billion slid 10.3% year on year.
Inside the Headlines
During the fourth quarter, Regency Centers executed 1.7 million square feet of comparable new and renewal leases with blended rent spreads of 0.6%.
As of Dec 31, 2020, the company’s wholly-owned portfolio, along with its pro-rata shares of co-investment partnerships, was 92.3% leased. Its same-property portfolio was 92.9% leased, reflecting a contraction of 60 basis points (bps) sequentially.
In its same-property portfolio, anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 95.4%, highlighting a contraction of 60 bps sequentially, while same property shop percent leased (includes spaces less than 10,000 square feet) was 88.5%, marking a decrease of 70 bps sequentially.
Same-property NOI excluding termination fees dropped 10.5% on a year-over-year basis. Results reflect a higher rate of uncollectible lease income pertaining to the pandemic.
Portfolio Activity
In the October-December quarter, the company accomplished one development and two redevelopment projects with combined pro-rata costs of $29.8 million. As of Dec 31, 2020, the company had 14 properties in development or redevelopment, with estimated net project costs of $319.3 million and an assessed $170 million of remaining costs to complete.
Moreover, during the quarter, the company sold five shopping centers for a total of $77.8 million at Regency’s share, as well as non-income producing land for a combined gross sales price of $8.1 million at its share.
Liquidity Update
As of Dec 31, 2020, Regency Centers had cash, cash equivalents, and restricted cash of $378.5 million, up from $115.6 million at year-end 2019. The retail REIT had full capacity under its $1.2-billion revolving credit facility. As of that date, its pro-rata net debt-to-operating EBITDAre ratio was 6.0x.
Additionally, following its repayment of the $265-million term loan due January 2022 using cash available in January 2021, the company has no unsecured debt maturities until 2024.
Moreover, Regency announced about its amended and restated unsecured revolving credit facility that closed on Feb 9, 2021. The move, while maintains the size of the facility at $1.25 billion, extends the maturity date to Mar 23, 2025. Also, there are options for Regency to extend the maturity for two additional six-month periods.
Outlook
Regency projects 2021 NAREIT FFO per share in the range of $2.96-$3.14. The Zacks Consensus Estimate for the same is currently pegged at $3.31.
The company expects same-property NOI change, excluding termination fees, in the range of -1.0% to +2.5%.
Dividend Update
On Feb 10, Regency Centers’ board of directors announced a quarterly cash dividend of 59.5 cents per share on its common stock. The dividend will be paid out on Apr 6, to its shareholders of record as of Mar 15, 2021.
Share Repurchase
On Feb 3, the company’s board of directors authorized the buyback by Regency of up to $250 million of its common stock. This authorization is slated to expire on Feb 3, 2023.
Regency Centers currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Regency Centers Corporation Price, Consensus and EPS Surprise
Regency Centers Corporation price-consensus-eps-surprise-chart | Regency Centers Corporation Quote
Performance of Other Retail REITs
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2020 FFO per share of $2.17 missed the Zacks Consensus Estimate of $2.19. The reported figure also came in 26.7% lower than the year-ago quarter’s $2.96. Results reflected the pandemic’s adverse impact on the company’s domestic and international operations, with an impact of 95 cents per share, chiefly on reduced revenues, partly mitigated by cost-reduction moves.
Kimco Realty Corp.’s (KIM - Free Report) NAREIT FFO per share came in at 31 cents, beating the Zacks Consensus Estimate of 30 cents for the December-end quarter. Results highlighted better-than-anticipated revenue numbers. Remarkably, the retail REIT generated revenues of $269.4 million, exceeding the consensus mark of $267.8 million. Nonetheless, the FFO per share came in lower than the year-ago quarter’s 36 cents. Also, revenues declined 9% year on year. Results underlined a fall in same-property NOI, mainly affected by a charge for potentially uncollectible accounts receivable.
Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2020 adjusted FFO per share of $1.14 surpassed the Zacks Consensus Estimate of $1.07. Results reflected better-than-anticipated revenues. Quarterly revenues of $219.5 million topped the consensus mark of $208.9 million. However, the reported FFO per share decreased from the $1.58 reported in the year-ago quarter. In addition, revenues fell 8.2% year on year in the fourth quarter. The pandemic’s adverse impact and the resultant collectability-related impacts prompted these year-over-year declines.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>