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.
REG's Q1 FFO Misses Estimates, Revenues Top on Leasing Momentum
Read MoreHide Full Article
Key Takeaways
REG's Q1 2026 FFO was $1.20 per share, a 0.8% miss, while revenues beat estimates at $412.5M.
REG signed about 1.5M sq ft of leases; blended rent spreads were 12.1% cash and 24.3% straight-line.
REG reaffirmed 2026 FFO guidance of $4.83-$4.87 and had $1.5B of revolver capacity at quarter-end.
Regency Centers Corporation (REG - Free Report) reported first-quarter 2026 NAREIT funds from operations (FFO) per share of $1.20, missing the Zacks Consensus Estimate of $1.21 by 0.8%. However, the metric increased 4.3% from the year-ago quarter.
Total revenues came in at $412.5 million, up 8.3% year over year and ahead of the Zacks Consensus Estimate of $400.9 million by 2.9%. Results were aided by continued leasing traction, as reflected in same-property net operating income (NOI) growth of 4.4% year over year.
REG Shows Solid Same-Property Operating Trends
Same-property portfolio fundamentals remained steady in the quarter, with the percent leased ending at 96.6%. Same-property percent commenced finished at 94.3%, up 90 basis points year over year, reflecting continued progress in converting signed leases into rent-paying occupancy.
On the NOI side, management highlighted that same-property base rent growth contributed 3.6% to same-property NOI growth in the first quarter. Other moving pieces included a modest drag from uncollectible lease income and incremental support from percentage rent and other property income, underscoring the portfolio’s ability to generate growth even with normal credit-related noise.
Regency Centers Sustains Healthy Leasing Volume
Leasing activity continued to be a notable operating support. During the quarter, the company executed roughly 1.5 million square feet of comparable new and renewal leases, with blended rent spreads of 12.1% on a cash basis and 24.3% on a straight-line basis.
The lease signings were broad-based across the portfolio and aligned with Regency’s positioning in grocery-anchored, necessity-oriented shopping centers. Management pointed to robust tenant demand, which continues to underpin occupancy, rent roll resilience and embedded growth within the existing footprint.
REG Advances Its Investment and Development Platform
Regency also leaned on its investment platform during the period. The company started $73 million of redevelopment projects in the first quarter and completed $42 million of ground-up development and redevelopment projects, reflecting continued execution across its pipeline.
As of March 31, 2026, in-process development and redevelopment projects totaled an estimated $635 million of net project costs at the company’s share, with 46% of those costs already incurred. First-quarter activity included the start of the Crystal Brook Corner redevelopment in Long Island, NY, and the completion of Oakley Shops at Laurel Fields, a Safeway-anchored ground-up project in California’s Bay Area.
Balance sheet positioning remained a key strategic support. As of March 31, 2026, Regency had approximately $1.5 billion of available capacity under its revolving credit facility, providing liquidity for investment activity and general corporate flexibility.
Leverage metrics also remained in a conservative range. Pro-rata net debt and preferred stock to trailing 12-month operating EBITDAre stood at 5.2X at quarter end, consistent with a capital structure designed to preserve access to low-cost funding through cycles.
For full-year 2026, Regency reaffirmed its outlook for NAREIT FFO per diluted share in the range of $4.83-$4.87. The Zacks Consensus Estimate is presently pegged at $4.85, which is within the guided range. On property-level performance, same-property NOI growth guidance was reiterated at +3.25% to +3.75%.
We now look forward to the earnings releases of other retail REITs, such as Federal Realty Investment Trust (FRT - Free Report) and Simon Property Group (SPG - Free Report) , which are slated to report on May 1 and 11, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share is pegged at $1.82, implying a 7.06% year-over-year increase. FRT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Simon Property Group’s first-quarter 2026 FFO per share is pinned at $2.98, indicating a 1.02% rise year over year. SPG currently has a Zacks Rank #2.
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
REG's Q1 FFO Misses Estimates, Revenues Top on Leasing Momentum
Key Takeaways
Regency Centers Corporation (REG - Free Report) reported first-quarter 2026 NAREIT funds from operations (FFO) per share of $1.20, missing the Zacks Consensus Estimate of $1.21 by 0.8%. However, the metric increased 4.3% from the year-ago quarter.
Total revenues came in at $412.5 million, up 8.3% year over year and ahead of the Zacks Consensus Estimate of $400.9 million by 2.9%. Results were aided by continued leasing traction, as reflected in same-property net operating income (NOI) growth of 4.4% year over year.
REG Shows Solid Same-Property Operating Trends
Same-property portfolio fundamentals remained steady in the quarter, with the percent leased ending at 96.6%. Same-property percent commenced finished at 94.3%, up 90 basis points year over year, reflecting continued progress in converting signed leases into rent-paying occupancy.
On the NOI side, management highlighted that same-property base rent growth contributed 3.6% to same-property NOI growth in the first quarter. Other moving pieces included a modest drag from uncollectible lease income and incremental support from percentage rent and other property income, underscoring the portfolio’s ability to generate growth even with normal credit-related noise.
Regency Centers Sustains Healthy Leasing Volume
Leasing activity continued to be a notable operating support. During the quarter, the company executed roughly 1.5 million square feet of comparable new and renewal leases, with blended rent spreads of 12.1% on a cash basis and 24.3% on a straight-line basis.
The lease signings were broad-based across the portfolio and aligned with Regency’s positioning in grocery-anchored, necessity-oriented shopping centers. Management pointed to robust tenant demand, which continues to underpin occupancy, rent roll resilience and embedded growth within the existing footprint.
REG Advances Its Investment and Development Platform
Regency also leaned on its investment platform during the period. The company started $73 million of redevelopment projects in the first quarter and completed $42 million of ground-up development and redevelopment projects, reflecting continued execution across its pipeline.
As of March 31, 2026, in-process development and redevelopment projects totaled an estimated $635 million of net project costs at the company’s share, with 46% of those costs already incurred. First-quarter activity included the start of the Crystal Brook Corner redevelopment in Long Island, NY, and the completion of Oakley Shops at Laurel Fields, a Safeway-anchored ground-up project in California’s Bay Area.
Regency Centers Highlights Balance Sheet Flexibility
Balance sheet positioning remained a key strategic support. As of March 31, 2026, Regency had approximately $1.5 billion of available capacity under its revolving credit facility, providing liquidity for investment activity and general corporate flexibility.
Leverage metrics also remained in a conservative range. Pro-rata net debt and preferred stock to trailing 12-month operating EBITDAre stood at 5.2X at quarter end, consistent with a capital structure designed to preserve access to low-cost funding through cycles.
Regency Centers Reaffirms Key 2026 Operating Targets
For full-year 2026, Regency reaffirmed its outlook for NAREIT FFO per diluted share in the range of $4.83-$4.87. The Zacks Consensus Estimate is presently pegged at $4.85, which is within the guided range. On property-level performance, same-property NOI growth guidance was reiterated at +3.25% to +3.75%.
REG’s Zacks Rank
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
Upcoming Earnings Releases
We now look forward to the earnings releases of other retail REITs, such as Federal Realty Investment Trust (FRT - Free Report) and Simon Property Group (SPG - Free Report) , which are slated to report on May 1 and 11, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share is pegged at $1.82, implying a 7.06% year-over-year increase. FRT currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Simon Property Group’s first-quarter 2026 FFO per share is pinned at $2.98, indicating a 1.02% rise year over year. SPG currently has a Zacks Rank #2.
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.