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Regency Centers to Post Q2 Earnings: What's in Store for the Stock?
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Key Takeaways
Regency is expected to post year-over-year growth in Q2 revenues and FFO per share.
The company's suburban, grocery-anchored portfolio likely supported rental income stability.
Higher e-commerce adoption and interest expenses may offset some of Regency's Q2 performance.
Regency Centers Corp. (REG - Free Report) is slated to report second-quarter 2025 results on July 29, after the closing bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust (REIT) reported NAREIT FFO per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. Results reflected healthy leasing activity and a year-over-year improvement in the same property's net operating income and base rent.
Over the trailing four quarters, the company’s FFO per share exceeded the Zacks Consensus Estimate on all occasions, with the average beat being 2.39%. This is depicted in the graph below:
Regency Centers Corporation Price and EPS Surprise
In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2025 performance.
U.S. Retail Real Estate Market in Q2 2025
Per a Cushman & Wakefield (CWK - Free Report) report, there has been a slight pullback in net absorption for the U.S. shopping center market, resulting in a negative shift in the second quarter. The national vacancy rate increased year over year, but remained low from 2017 to 2019. Asking rents for the U.S. shopping center market grew from the year-ago quarter.
The second quarter witnessed negative net absorption in the U.S. shopping center market, totaling 6.5 million square feet (msf), compared to negative 7.1 msf in the first quarter. Although this is a marginal improvement from the first quarter, it represents absorption being recorded as negative for the first time for two consecutive quarters in the post-pandemic era. The decrease was due to negative net absorption observed in all four regions of the country. According to Cushman & Wakefield Research, 56 of the 81 markets tracked experienced absorption declines.
The lack of new construction is also contributing to the scarcity, as only 4.6 msf of new shopping center space was delivered from the beginning of the year through July 14, 2025. As of the second quarter of 2025, there are only 10.9 msf under construction with an inventory of 4.30 billion square feet.
Although the national vacancy rate increased 50 basis points to 5.8% year over year, the vacancy rate remains low from the 6.4% level for the period 2017-2019.
The reversal in net demand is leading to easing pressure on asking rents. The asking rents for U.S. shopping centers increased 2.3% year over year to $24.99 per square foot in the second quarter.
Factors at Play for Regency
Regency’s premium portfolio is situated in affluent suburban areas and near urban trade areas of the United States. With more people continuing to move to the suburbs due to post-pandemic migration and the hybrid work setup, Regency’s suburban shopping center portfolio is expected to have benefited.
Regency has a high-quality open-air shopping center portfolio, with more than 80% grocery-anchored neighborhood and community centers, which are necessity-driven by nature. The company has a good tenant mix, with several industry-leading grocers. These factors are likely to have helped it generate stable rental revenues during the second quarter.
The Zacks Consensus Estimate for REG’s second-quarter revenues is pegged at $377.4 million, which indicates an increase of 5.7% from the year-ago quarter’s reported figure.
However, higher e-commerce adoption and elevated interest expenses are expected to cast a pall on its quarterly performance to some extent.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at $1.14 in the past two months. Yet, the figure implies growth of nearly 5.7% from the prior-year quarter’s reported number.
What Our Quantitative Model Predicts for Regency
Our proven model does not conclusively predict a surprise in terms of FFO per share for Regency this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Regency currently has an Earnings ESP of -0.30% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the retail REIT sector — Simon Property Group (SPG - Free Report) and The Macerich Company (MAC - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
MAC, slated to release quarterly numbers on Aug. 11, has an Earnings ESP of +0.67% and carries a Zacks Rank of 3 at present.
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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Regency Centers to Post Q2 Earnings: What's in Store for the Stock?
Key Takeaways
Regency Centers Corp. (REG - Free Report) is slated to report second-quarter 2025 results on July 29, after the closing bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust (REIT) reported NAREIT FFO per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. Results reflected healthy leasing activity and a year-over-year improvement in the same property's net operating income and base rent.
Over the trailing four quarters, the company’s FFO per share exceeded the Zacks Consensus Estimate on all occasions, with the average beat being 2.39%. This is depicted in the graph below:
Regency Centers Corporation Price and EPS Surprise
Regency Centers Corporation price-eps-surprise | Regency Centers Corporation Quote
In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2025 performance.
U.S. Retail Real Estate Market in Q2 2025
Per a Cushman & Wakefield (CWK - Free Report) report, there has been a slight pullback in net absorption for the U.S. shopping center market, resulting in a negative shift in the second quarter. The national vacancy rate increased year over year, but remained low from 2017 to 2019. Asking rents for the U.S. shopping center market grew from the year-ago quarter.
The second quarter witnessed negative net absorption in the U.S. shopping center market, totaling 6.5 million square feet (msf), compared to negative 7.1 msf in the first quarter. Although this is a marginal improvement from the first quarter, it represents absorption being recorded as negative for the first time for two consecutive quarters in the post-pandemic era. The decrease was due to negative net absorption observed in all four regions of the country. According to Cushman & Wakefield Research, 56 of the 81 markets tracked experienced absorption declines.
The lack of new construction is also contributing to the scarcity, as only 4.6 msf of new shopping center space was delivered from the beginning of the year through July 14, 2025. As of the second quarter of 2025, there are only 10.9 msf under construction with an inventory of 4.30 billion square feet.
Although the national vacancy rate increased 50 basis points to 5.8% year over year, the vacancy rate remains low from the 6.4% level for the period 2017-2019.
The reversal in net demand is leading to easing pressure on asking rents. The asking rents for U.S. shopping centers increased 2.3% year over year to $24.99 per square foot in the second quarter.
Factors at Play for Regency
Regency’s premium portfolio is situated in affluent suburban areas and near urban trade areas of the United States. With more people continuing to move to the suburbs due to post-pandemic migration and the hybrid work setup, Regency’s suburban shopping center portfolio is expected to have benefited.
Regency has a high-quality open-air shopping center portfolio, with more than 80% grocery-anchored neighborhood and community centers, which are necessity-driven by nature. The company has a good tenant mix, with several industry-leading grocers. These factors are likely to have helped it generate stable rental revenues during the second quarter.
The Zacks Consensus Estimate for REG’s second-quarter revenues is pegged at $377.4 million, which indicates an increase of 5.7% from the year-ago quarter’s reported figure.
However, higher e-commerce adoption and elevated interest expenses are expected to cast a pall on its quarterly performance to some extent.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at $1.14 in the past two months. Yet, the figure implies growth of nearly 5.7% from the prior-year quarter’s reported number.
What Our Quantitative Model Predicts for Regency
Our proven model does not conclusively predict a surprise in terms of FFO per share for Regency this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Regency currently has an Earnings ESP of -0.30% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the retail REIT sector — Simon Property Group (SPG - Free Report) and The Macerich Company (MAC - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
SPG, scheduled to report quarterly numbers on Aug. 4, has an Earnings ESP of +0.16% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MAC, slated to release quarterly numbers on Aug. 11, has an Earnings ESP of +0.67% and carries a Zacks Rank of 3 at present.
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.