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Regency Centers Q2 FFO & Revenues Beat, Same-Property NOI Rises

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Key Takeaways

  • REG's Q2 NAREIT FFO per share rose 9.4% to $1.16 Y/Y, beating the Zacks Consensus Estimate.
  • Same-property NOI grew 7.4%, fueled by base rent growth and strong leasing.
  • 2025 NAREIT FFO per share guidance raised to $4.59-$4.63, above prior outlook $4.52-$4.58.

Regency Centers Corporation (REG - Free Report) reported second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% 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. The company increased its 2025 NAREIT FFO per share outlook.

Total revenues of $380.8 million increased 6.6% from the year-ago period. The figure surpassed the Zacks Consensus Estimate of $377.4 million.

Per Lisa Palmer, president and CEO of Regency, “All operating metrics remain robust, highlighted by strong leasing activity, and we have strategically deployed more than $600 million of capital into accretive investments year-to-date, including our recent portfolio acquisition of five high-quality shopping centers in Southern California.”

REG’s Q2 in Detail

In the second quarter, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10%.

As of June 30, 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%, increasing 90 bps year over year.

The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.9%, increasing 100 bps year over year.

The same-property NOI, excluding lease termination fees, increased 7.4% on a year-over-year basis to $274.8 million. The same-property base rent growth contributed 4.5% to the same-property NOI growth in the quarter.

As of June 30, 2025, Regency Centers’ in-process development and redevelopment projects have estimated net project costs of $518 million at the company’s share. So far, it has incurred 58% of the cost.

REG’s Portfolio Activity

In the second quarter of 2025, Regency Centers acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, through the company's Oregon joint venture for approximately $5 million. In the quarter, the company disposed of Van Houten Plaza in Passaic, NJ, for approximately $6 million.

Following the quarter end, REG acquired a portfolio of five shopping centers in the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million. Following the quarter end, the company disposed of 101 7th Avenue in New York, NY for $11 million.

REG’s Balance Sheet

As of June 30, 2025, this retail REIT had nearly $1.5 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt and preferred stock to trailing 12 months (TTM) operating EBITDAre were 5.3X.

REG’s 2025 Outlook

Regency Centers has increased its 2025 NAREIT FFO per share guidance in the range of $4.59-$4.63, compared to the prior guidance $4.52-$4.58. The Zacks Consensus Estimate is presently pegged at $4.54, which is below 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 Simon Property Group (SPG - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , which are slated to report on Aug. 4 and Aug. 6, respectively.

The Zacks Consensus Estimate for Simon’s second-quarter 2025 FFO per share stands at $3.04, indicating a 4.8% rise year over year. SPG currently has a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Federal Realty Investment Trust’s second-quarter 2025 FFO per share is pegged at $1.73, implying a 2.4% 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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