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Regency Centers Q1 FFO & Revenues Beat, Same-Property NOI Rises

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Regency Centers Corporation (REG - Free Report) 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.

Regency Centers currently carries a Zacks Rank #2 (Buy). 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 and EPS Surprise

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

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs, such as Kimco Realty (KIM - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , which are slated to report on May 1 and May 8, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Kimco Realty’s first-quarter 2025 FFO per share stands at 42 cents, indicating a 7.7% rise year over year. KIM currently has a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2025 FFO per share is pegged at $1.69, implying a 3.1% year-over-year increase. FRT currently carries a Zacks Rank #3.

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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