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Regency Centers (REG) to Post Q3 Earnings: A Beat in Store?
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Regency Centers Corp. (REG - Free Report) is slated to report third-quarter 2018 results on Oct 25, after the market closes. The company’s third-quarter funds from operations (FFO) per share will likely have remained unchanged sequentially. Also, its top-line results might display growth, on a year-over-year basis.
In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust (REIT) surpassed the Zacks Consensus Estimate for FFO per share by 1.09%. Results reflected growth in same-property net operating income (NOI), backed by higher base rent.
Further, the company has a decent surprise history. It beat the Zacks Consensus Estimate in three of the trailing four quarters and met in the other, with an average surprise of 1.91%. This is depicted in the graph below:
Regency Centers Corporation Price and EPS Surprise
The U.S. retail real estate industry has been reeling under pressure from store closures and retailer bankruptcies, and the recent data from Reis shows that the regional mall vacancy rate jumped to 9.1% in the third quarter, from 8.6% in the previous quarter and 8.3% a year ago.
Nonetheless, Regency has strategically focused on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity driven and enjoy dependable traffic. Amid these, we anticipate the company to have experienced decent leasing activity and top-line growth during the quarter under review.
In fact, the Zacks Consensus Estimate for third-quarter revenues is pegged at $267.5 million, indicating a year-over-year improvement of 2.05%.
On the investment front, in September, Regency acquired a grocery-anchored property — Ridgewood Shopping Center — in Raleigh. This further strengthens the company’s grocery-anchored portfolio of retail assets.
Nonetheless, the company has a significant development and redevelopment pipeline. Amid the rising construction cost scenario, we anticipate Regency to have experienced cost overruns and compressed margins in the Sep-end quarter. This, in turn, is expected to have lowered development returns on these projects.
Prior to the third-quarter earnings release, there is lack of any solid catalyst for raising optimism about the company’s business activities and prospects. As such, the Zacks Consensus Estimate for FFO per share remained unchanged at 95 cents, over the past month.
Earnings Whispers
Here is what our quantitative model predicts:
Regency has the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Regency is +0.21%.
Zacks Rank: The company currently carries a Zacks Rank #3.
A positive Earnings ESP is a meaningful and leading indicator of a likely beat in terms of FFO per share. This, when combined with a favorable Zacks rank, makes us reasonably confident of a positive surprise.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:
Welltower Inc. (WELL - Free Report) , slated to report Sep-end quarter results on Oct 30, has an Earnings ESP of +1.06% and a Zacks Rank of 3.
Public Storage (PSA - Free Report) , set to release quarterly figures on Oct 30, has an Earnings ESP of +0.27% and 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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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Regency Centers (REG) to Post Q3 Earnings: A Beat in Store?
Regency Centers Corp. (REG - Free Report) is slated to report third-quarter 2018 results on Oct 25, after the market closes. The company’s third-quarter funds from operations (FFO) per share will likely have remained unchanged sequentially. Also, its top-line results might display growth, on a year-over-year basis.
In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust (REIT) surpassed the Zacks Consensus Estimate for FFO per share by 1.09%. Results reflected growth in same-property net operating income (NOI), backed by higher base rent.
Further, the company has a decent surprise history. It beat the Zacks Consensus Estimate in three of the trailing four quarters and met in the other, with an average surprise of 1.91%. This is depicted in the graph below:
Regency Centers Corporation Price and EPS Surprise
Regency Centers Corporation Price and EPS Surprise | Regency Centers Corporation Quote
Factors at Play
The U.S. retail real estate industry has been reeling under pressure from store closures and retailer bankruptcies, and the recent data from Reis shows that the regional mall vacancy rate jumped to 9.1% in the third quarter, from 8.6% in the previous quarter and 8.3% a year ago.
Nonetheless, Regency has strategically focused on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity driven and enjoy dependable traffic. Amid these, we anticipate the company to have experienced decent leasing activity and top-line growth during the quarter under review.
In fact, the Zacks Consensus Estimate for third-quarter revenues is pegged at $267.5 million, indicating a year-over-year improvement of 2.05%.
On the investment front, in September, Regency acquired a grocery-anchored property — Ridgewood Shopping Center — in Raleigh. This further strengthens the company’s grocery-anchored portfolio of retail assets.
Nonetheless, the company has a significant development and redevelopment pipeline. Amid the rising construction cost scenario, we anticipate Regency to have experienced cost overruns and compressed margins in the Sep-end quarter. This, in turn, is expected to have lowered development returns on these projects.
Prior to the third-quarter earnings release, there is lack of any solid catalyst for raising optimism about the company’s business activities and prospects. As such, the Zacks Consensus Estimate for FFO per share remained unchanged at 95 cents, over the past month.
Earnings Whispers
Here is what our quantitative model predicts:
Regency has the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Regency is +0.21%.
Zacks Rank: The company currently carries a Zacks Rank #3.
A positive Earnings ESP is a meaningful and leading indicator of a likely beat in terms of FFO per share. This, when combined with a favorable Zacks rank, makes us reasonably confident of a positive surprise.
Stocks That Warrant a Look
Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:
Iron Mountain Incorporated (IRM - Free Report) , scheduled to release earnings on Oct 25, has an Earnings ESP of +0.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Welltower Inc. (WELL - Free Report) , slated to report Sep-end quarter results on Oct 30, has an Earnings ESP of +1.06% and a Zacks Rank of 3.
Public Storage (PSA - Free Report) , set to release quarterly figures on Oct 30, has an Earnings ESP of +0.27% and 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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>