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Regency Centers Corporation (REG - Free Report) reported fourth-quarter 2023 NAREIT funds from operations (FFO) per share of $1.02, in line with the Zacks Consensus Estimate. However, the figure decreased 2.9% from the prior-year quarter’s $1.05.
Total revenues of $359.6 million increased 14.3% from the year-ago period. The figure outpaced the Zacks Consensus Estimate of $350.6 million.
Results reflect a better-than-anticipated top line, aided by healthy leasing activity and a year-over-year improvement in the base rent. The company also issued its 2024 outlook.
For the full-year 2023, Regency Centers’ NAREIT FFO per share came in at $4.15, up from the year-ago tally of $4.10, in line with the Zacks Consensus Estimate. Total revenues of $1.32 billion were increased 8% from a year ago.
Behind the Headlines
In the fourth quarter, Regency Centers executed approximately 2.1 million square feet of comparable new and renewal leases at a blended cash rent spread of 11.7%.
As of Dec 31, 2023, REG’s same-property portfolio was 95.7% leased, reflecting an expansion of 30 basis points (bps) sequentially and 60 bps year over year.
The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 97.1%, which increased 40 bps sequentially and 10 bps year over year.
The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.4%, which rose 20 bps sequentially and 150 bps year over year.
The same-property net operating income (NOI), excluding lease termination fees, increased 0.7% on a year-over-year basis to $225.6 million. Same-property base rents contributed 3.2% to same-property NOI growth in the quarter.
As of Dec 31, 2023, Regency Centers’ in-process development and redevelopment projects estimated net project costs of around $468 million at the company’s share. So far, it has incurred 45% of the cost.
Balance Sheet
The company ended the fourth quarter of 2023 with cash, cash equivalents and restricted cash of $91.4 million, up from $68.8 million as of Dec 31, 2022.
As of Dec 31, 2023, this retail REIT had nearly $1.1 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt-to-operating EBITDAre was 5.4X on a trailing 12-month basis.
Dividend Update
On Feb 7, Regency Centers’ board of directors declared a quarterly cash dividend payment on its common stock of 67 cents. The dividend will be paid out on Apr 3, 2024, to its shareholders of record as of Mar 13, 2024.
2024 Outlook
Regency Centers provided the initial 2024 guidance. The 2024 NAREIT FFO per share is expected in the range of $4.14-$4.20. The Zacks Consensus Estimate is presently pegged at $4.19, within the guided range.
The same-property NOI (excluding termination fees or collection of 2020/2021 reserves) is expected to be between 2% and 2.5%.
Kimco Realty Corp. (KIM - Free Report) reported fourth-quarter 2023 FFO per share of 39 cents, in line with the Zacks Consensus Estimate. The figure was only a cent higher than the year-ago quarter’s tally.
Though KIM reported growth in revenues, a rise in interest expenses acted as a dampener. This retail REIT provided an initial outlook for 2024 FFO per share, which is below the consensus mark.
Simon Property Group, Inc.'s (SPG - Free Report) fourth-quarter 2023 FFO per share of $3.69 surpassed the Zacks Consensus Estimate of $3.34. Also, the figure increased 8.5% year over year.
SPG’s results reflect better-than-anticipated revenues on lower property operating expenses and a rise in the base rent per square foot and occupancy levels. However, higher interest expenses partly offset the upsides. This retail behemoth’s 2024 FFO per share outlook was lower than expected.
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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Regency Centers (REG) Q4 FFO Meets Estimates, Revenues Rise Y/Y
Regency Centers Corporation (REG - Free Report) reported fourth-quarter 2023 NAREIT funds from operations (FFO) per share of $1.02, in line with the Zacks Consensus Estimate. However, the figure decreased 2.9% from the prior-year quarter’s $1.05.
Total revenues of $359.6 million increased 14.3% from the year-ago period. The figure outpaced the Zacks Consensus Estimate of $350.6 million.
Results reflect a better-than-anticipated top line, aided by healthy leasing activity and a year-over-year improvement in the base rent. The company also issued its 2024 outlook.
For the full-year 2023, Regency Centers’ NAREIT FFO per share came in at $4.15, up from the year-ago tally of $4.10, in line with the Zacks Consensus Estimate. Total revenues of $1.32 billion were increased 8% from a year ago.
Behind the Headlines
In the fourth quarter, Regency Centers executed approximately 2.1 million square feet of comparable new and renewal leases at a blended cash rent spread of 11.7%.
As of Dec 31, 2023, REG’s same-property portfolio was 95.7% leased, reflecting an expansion of 30 basis points (bps) sequentially and 60 bps year over year.
The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 97.1%, which increased 40 bps sequentially and 10 bps year over year.
The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.4%, which rose 20 bps sequentially and 150 bps year over year.
The same-property net operating income (NOI), excluding lease termination fees, increased 0.7% on a year-over-year basis to $225.6 million. Same-property base rents contributed 3.2% to same-property NOI growth in the quarter.
As of Dec 31, 2023, Regency Centers’ in-process development and redevelopment projects estimated net project costs of around $468 million at the company’s share. So far, it has incurred 45% of the cost.
Balance Sheet
The company ended the fourth quarter of 2023 with cash, cash equivalents and restricted cash of $91.4 million, up from $68.8 million as of Dec 31, 2022.
As of Dec 31, 2023, this retail REIT had nearly $1.1 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt-to-operating EBITDAre was 5.4X on a trailing 12-month basis.
Dividend Update
On Feb 7, Regency Centers’ board of directors declared a quarterly cash dividend payment on its common stock of 67 cents. The dividend will be paid out on Apr 3, 2024, to its shareholders of record as of Mar 13, 2024.
2024 Outlook
Regency Centers provided the initial 2024 guidance. The 2024 NAREIT FFO per share is expected in the range of $4.14-$4.20. The Zacks Consensus Estimate is presently pegged at $4.19, within the guided range.
The same-property NOI (excluding termination fees or collection of 2020/2021 reserves) is expected to be between 2% and 2.5%.
Regency Centers currently carries a Zacks Rank #3 (Hold). 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
Kimco Realty Corp. (KIM - Free Report) reported fourth-quarter 2023 FFO per share of 39 cents, in line with the Zacks Consensus Estimate. The figure was only a cent higher than the year-ago quarter’s tally.
Though KIM reported growth in revenues, a rise in interest expenses acted as a dampener. This retail REIT provided an initial outlook for 2024 FFO per share, which is below the consensus mark.
Simon Property Group, Inc.'s (SPG - Free Report) fourth-quarter 2023 FFO per share of $3.69 surpassed the Zacks Consensus Estimate of $3.34. Also, the figure increased 8.5% year over year.
SPG’s results reflect better-than-anticipated revenues on lower property operating expenses and a rise in the base rent per square foot and occupancy levels. However, higher interest expenses partly offset the upsides. This retail behemoth’s 2024 FFO per share outlook was lower than expected.
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.