We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Key Reasons to Add Regency Centers Stock to Your Portfolio Now
Read MoreHide Full Article
Key Takeaways
REG's portfolio is more than 85% grocery-anchored centers, with leading grocers driving steady traffic.
REG posted 5.3% same-property NOI growth in 2025, with occupancy reaching 96.5% leased.
REG is expanding through acquisitions and development, backed by a nearly $600M pipeline.
Regency Centers Corp.’s (REG - Free Report) focus on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity-driven, along with the presence of leading grocers in its tenant roster, lends stability. Significant expansions and an encouraging development pipeline bode well for long-term growth. A healthy balance sheet provides financial flexibility for portfolio expansion.
While shares of Regency have risen 12.2% in the past three months, underperforming the industry’s growth of 13.5%, analysts seem bullish on this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for REG’s 2026 funds from operations (FFO) per share has moved marginally northward over the past month to $4.83, suggesting a 4.1% increase year over year.
Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.
Image Source: Zacks Investment Research
Factors That Make Regency Centers Stock a Solid Pick
Grocery Anchored Tenant Base: Regency has a high-quality open-air shopping center portfolio, with more than 85% grocery-anchored neighborhood and community centers. This focus on building a premium portfolio of grocery-anchored shopping centers is a strategic fit because such centers are usually necessity-driven and attract dependable traffic. In the uncertain times, the grocery component has benefited retail REITs, and Regency has numerous industry-leading grocers such as Publix, Kroger, Albertsons Companies, TJX Companies, Inc. and Amazon/Whole Foods as tenants. Six of Regency’s top 10 tenants are high-performing grocers.
Healthy Operating Fundamentals & Rent Growth: Regency ended 2025 with one of its strongest operational years. Same-property NOI growth reached 4.7% for the fourth quarter and 5.3% for the full year, supported by higher occupancy and strong rent spreads. Fourth-quarter cash rent spreads hit 12%, with renewal spreads at a record 13%. GAAP spreads were even higher. This kind of leasing power reflects real demand for Regency’s grocery-anchored centers. Occupancy trends are equally impressive. Same-property portfolio occupancy reached 96.5% leased at year-end. Management noted strong tenant demand across both anchor and shop space. Healthy tenant sales, rising foot traffic and historically low bad debt further support the operating backdrop.
Strategic Expansion Efforts: Regency is making efforts to improve its portfolio with acquisitions and developments in key markets. Following the year-end, Regency acquired Crystal Brook Corner, a redevelopment project on Long Island in New York, for $30 million. In 2025, Regency deployed more than $825 million into investments, including more than $300 million in development and redevelopment projects. According to management, ground-up development returns are north of 7% at meaningful spreads to market cap rates. The in-process pipeline stands near $600 million, with strong visibility to additional starts over the next three years. In a sector where new supply has been limited for years, Regency’s ability to build new grocery-anchored centers is a competitive edge.
Balance Sheet Strength: Regency is focused on strengthening its balance sheet. This retail REIT had $1.4 billion of capacity under its revolving credit facility as of Dec. 31, 2025. As of the same date, its pro-rata net debt and preferred stock-to-operating EBITDAre were 5.1, while the fixed charge coverage ratio was 4.6. The company has a well-laddered debt maturity schedule. Regency also enjoys a large pool of unencumbered assets. As of Dec. 31, 2025, 87.3% of its wholly owned real estate assets were unencumbered. The investment-grade credit ratings of ‘A3’ from Moody’s and ‘A-’ with a stable outlook from S&P Global Ratings render it access to the debt market at favorable costs.
Solid Dividend Payment: Solid dividend payouts are the biggest attraction for REIT investors, and Regency is committed to boosting shareholder wealth. In October 2025, Regency declared a quarterly cash dividend payment on its common stock of 75.5 cents, an increase of 7.1% from the prior quarter's dividend. In the last five years, the company has hiked its dividend five times. Given the company’s solid operating platform, scope for growth and decent financial position compared to that of the industry, this dividend rate is expected to be sustainable over the long run. Check Regency Centers’ dividend history here.
The Zacks Consensus Estimate for Simon Property Group’s 2026 FFO per share is pegged at $13.10. This implies year-over-year growth of 2.91%. Simon Property Group has a Momentum Score of B.
The Zacks Consensus Estimate for Kimco’s 2026 FFO per share is pinned at $1.81. This calls for year-over-year growth of 2.84%. Kimco currently has a Value Score of C.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Key Reasons to Add Regency Centers Stock to Your Portfolio Now
Key Takeaways
Regency Centers Corp.’s (REG - Free Report) focus on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity-driven, along with the presence of leading grocers in its tenant roster, lends stability. Significant expansions and an encouraging development pipeline bode well for long-term growth. A healthy balance sheet provides financial flexibility for portfolio expansion.
While shares of Regency have risen 12.2% in the past three months, underperforming the industry’s growth of 13.5%, analysts seem bullish on this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for REG’s 2026 funds from operations (FFO) per share has moved marginally northward over the past month to $4.83, suggesting a 4.1% increase year over year.
Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.
Image Source: Zacks Investment Research
Factors That Make Regency Centers Stock a Solid Pick
Grocery Anchored Tenant Base: Regency has a high-quality open-air shopping center portfolio, with more than 85% grocery-anchored neighborhood and community centers. This focus on building a premium portfolio of grocery-anchored shopping centers is a strategic fit because such centers are usually necessity-driven and attract dependable traffic. In the uncertain times, the grocery component has benefited retail REITs, and Regency has numerous industry-leading grocers such as Publix, Kroger, Albertsons Companies, TJX Companies, Inc. and Amazon/Whole Foods as tenants. Six of Regency’s top 10 tenants are high-performing grocers.
Healthy Operating Fundamentals & Rent Growth: Regency ended 2025 with one of its strongest operational years. Same-property NOI growth reached 4.7% for the fourth quarter and 5.3% for the full year, supported by higher occupancy and strong rent spreads. Fourth-quarter cash rent spreads hit 12%, with renewal spreads at a record 13%. GAAP spreads were even higher. This kind of leasing power reflects real demand for Regency’s grocery-anchored centers. Occupancy trends are equally impressive. Same-property portfolio occupancy reached 96.5% leased at year-end. Management noted strong tenant demand across both anchor and shop space. Healthy tenant sales, rising foot traffic and historically low bad debt further support the operating backdrop.
Strategic Expansion Efforts: Regency is making efforts to improve its portfolio with acquisitions and developments in key markets. Following the year-end, Regency acquired Crystal Brook Corner, a redevelopment project on Long Island in New York, for $30 million. In 2025, Regency deployed more than $825 million into investments, including more than $300 million in development and redevelopment projects. According to management, ground-up development returns are north of 7% at meaningful spreads to market cap rates. The in-process pipeline stands near $600 million, with strong visibility to additional starts over the next three years. In a sector where new supply has been limited for years, Regency’s ability to build new grocery-anchored centers is a competitive edge.
Balance Sheet Strength: Regency is focused on strengthening its balance sheet. This retail REIT had $1.4 billion of capacity under its revolving credit facility as of Dec. 31, 2025. As of the same date, its pro-rata net debt and preferred stock-to-operating EBITDAre were 5.1, while the fixed charge coverage ratio was 4.6. The company has a well-laddered debt maturity schedule. Regency also enjoys a large pool of unencumbered assets. As of Dec. 31, 2025, 87.3% of its wholly owned real estate assets were unencumbered. The investment-grade credit ratings of ‘A3’ from Moody’s and ‘A-’ with a stable outlook from S&P Global Ratings render it access to the debt market at favorable costs.
Solid Dividend Payment: Solid dividend payouts are the biggest attraction for REIT investors, and Regency is committed to boosting shareholder wealth. In October 2025, Regency declared a quarterly cash dividend payment on its common stock of 75.5 cents, an increase of 7.1% from the prior quarter's dividend. In the last five years, the company has hiked its dividend five times. Given the company’s solid operating platform, scope for growth and decent financial position compared to that of the industry, this dividend rate is expected to be sustainable over the long run. Check Regency Centers’ dividend history here.
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Simon Property Group (SPG - Free Report) and Kimco Realty Corporation (KIM - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Simon Property Group’s 2026 FFO per share is pegged at $13.10. This implies year-over-year growth of 2.91%. Simon Property Group has a Momentum Score of B.
The Zacks Consensus Estimate for Kimco’s 2026 FFO per share is pinned at $1.81. This calls for year-over-year growth of 2.84%. Kimco currently has a Value Score of C.
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.