We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Regency Centers Corporation’s (REG - Free Report) second-quarter 2021 NAREIT funds from operations (FFO) per share of 99 cents handily surpassed the Zacks Consensus Estimate of 83 cents. The quarterly FFO per share also compares favorably with the prior-year period’s 61 cents.
Results reflect higher-than-anticipated revenue numbers. Healthy rent collection and leasing activity display improvement of tenants and retail landscape. The retail REIT has also issued an improved outlook.
Total revenues of $287.2 million exceeded the Zacks Consensus Estimate of $264.8 million. Moreover, revenues jumped 24.3% from the year-earlier quarter.
Lisa Palmer, president and chief executive officer noted,“Our results during the second quarter speak to the meaningful progress we continue to see toward fullrecovery from the effects of the pandemic, with an improved outlook supported by strong foot traffic and leasing activity across our portfolio.”
As of Aug 2, the company collected 96% of second-quarter pro-rata base rent, and executed deferral agreements on an additional 1%.
Inside the Headlines
During the second quarter, Regency Centers executed 1.9 million square feet of comparable new and renewal leases with blended rent spreads of 2.7%.
As of Jun 30, 2021, the company’s wholly-owned portfolio, along with its pro-rata shares of co-investment partnerships, was 92.5% leased. Its same-property portfolio was 92.9% leased, reflecting an expansion of 40 basis points (bps), sequentially.
In the same-property portfolio, anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 95.3%, highlighting an increase of 30 bps sequentially, while same property shop percent leased (includes spaces less than 10,000 square feet) was 88.8%, marking an expansion of 50 bps sequentially.
Same-property NOI, excluding termination fees, climbed 30.8% on a year-over-year basis.
Portfolio Activity
During the April-June period, the company closed the sales of Gateway 101, Northborough Crossing, and Lantana, at a gross price of $86 million at its share. In the same period, Regency completed redevelopment projects with total pro-rata costs of $21.7 million.
As of Jun 30, 2021, Regency’s in-process development and redevelopment projects had expected net project costs of $346 million and an estimated $173 million of remaining costs to complete these projects, each at the company’s share.
Liquidity Update
As of Jun 30, 2021, Regency Centers had cash, cash equivalents, and restricted cash of $286.6 million, down from $378.5 million at year-end 2020. The retail REIT had full capacity under its $1.2-billion revolving credit facility. As of that date, its pro-rata net debt-to-operating EBITDAre ratio was 5.3x compared with 6.0x as of Dec 31, 2020.
During the reported quarter, the company entered into forward sale agreements in connection with its ATM program to sell a total of 2.3 million shares of common stock, at an average gross price of $64.59 per share.
Outlook
Regency has revised the 2021 guidance and now projects the current-year NAREIT FFO per share in the range of $3.74-$3.82 compared with the prior guidance $3.33-$3.43. The range is ahead of the Zacks Consensus Estimate, which is currently pegged at $3.41.
Management also increased the same-property NOI (excluding termination fees) guided range to 13.5-15.5% from the 6-8.5% previously estimated.
Dividend Update
On Aug 4, Regency Centers’ board of directors announced a quarterly cash dividend of 59.5 cents per share on its common stock. The dividend will be paid out on Oct 5, to its shareholders of record as of Sep 15, 2021.
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2021 adjusted FFO per share of $2.92 handily exceeded the Zacks Consensus Estimate of $2.37. This performance was backed by better-than-expected top-line growth. The retail REIT behemoth also raised the 2021 FFO per share outlook based on its results in the year so far and expectations for the rest of 2021. It also announced a hike in its quarterly dividend.
Kimco Realty Corp.’s (KIM - Free Report) NAREIT FFO per share came in at 34 cents, topping the Zacks Consensus Estimate of 31 cents for the April-June period. This also compared favorably with the year-ago quarter tally of 24 cents. Results displayed better-than-anticipated revenue numbers. Moreover, the retail REIT raised the guidance for 2021 on improved outlook.
Realty Income Corporation’s (O - Free Report) second-quarter 2021 adjusted AFFO per share of 88 cents came in line with the Zacks Consensus Estimate. The reported figure also compares favorably with the prior-year quarter’s 86 cents. Results reflected better-than-expected improvement in revenues. The retail REIT also raised its 2021 adjusted FFO per share guidance and increased the 2021 acquisitions volume projections to $4.5 billion.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Regency Centers (REG) Tops Q2 FFO Estimates, Issues Upbeat View
Regency Centers Corporation’s (REG - Free Report) second-quarter 2021 NAREIT funds from operations (FFO) per share of 99 cents handily surpassed the Zacks Consensus Estimate of 83 cents. The quarterly FFO per share also compares favorably with the prior-year period’s 61 cents.
Results reflect higher-than-anticipated revenue numbers. Healthy rent collection and leasing activity display improvement of tenants and retail landscape. The retail REIT has also issued an improved outlook.
Total revenues of $287.2 million exceeded the Zacks Consensus Estimate of $264.8 million. Moreover, revenues jumped 24.3% from the year-earlier quarter.
Lisa Palmer, president and chief executive officer noted,“Our results during the second quarter speak to the meaningful progress we continue to see toward fullrecovery from the effects of the pandemic, with an improved outlook supported by strong foot traffic and leasing activity across our portfolio.”
As of Aug 2, the company collected 96% of second-quarter pro-rata base rent, and executed deferral agreements on an additional 1%.
Inside the Headlines
During the second quarter, Regency Centers executed 1.9 million square feet of comparable new and renewal leases with blended rent spreads of 2.7%.
As of Jun 30, 2021, the company’s wholly-owned portfolio, along with its pro-rata shares of co-investment partnerships, was 92.5% leased. Its same-property portfolio was 92.9% leased, reflecting an expansion of 40 basis points (bps), sequentially.
In the same-property portfolio, anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 95.3%, highlighting an increase of 30 bps sequentially, while same property shop percent leased (includes spaces less than 10,000 square feet) was 88.8%, marking an expansion of 50 bps sequentially.
Same-property NOI, excluding termination fees, climbed 30.8% on a year-over-year basis.
Portfolio Activity
During the April-June period, the company closed the sales of Gateway 101, Northborough Crossing, and Lantana, at a gross price of $86 million at its share. In the same period, Regency completed redevelopment projects with total pro-rata costs of $21.7 million.
As of Jun 30, 2021, Regency’s in-process development and redevelopment projects had expected net project costs of $346 million and an estimated $173 million of remaining costs to complete these projects, each at the company’s share.
Liquidity Update
As of Jun 30, 2021, Regency Centers had cash, cash equivalents, and restricted cash of $286.6 million, down from $378.5 million at year-end 2020. The retail REIT had full capacity under its $1.2-billion revolving credit facility. As of that date, its pro-rata net debt-to-operating EBITDAre ratio was 5.3x compared with 6.0x as of Dec 31, 2020.
During the reported quarter, the company entered into forward sale agreements in connection with its ATM program to sell a total of 2.3 million shares of common stock, at an average gross price of $64.59 per share.
Outlook
Regency has revised the 2021 guidance and now projects the current-year NAREIT FFO per share in the range of $3.74-$3.82 compared with the prior guidance $3.33-$3.43. The range is ahead of the Zacks Consensus Estimate, which is currently pegged at $3.41.
Management also increased the same-property NOI (excluding termination fees) guided range to 13.5-15.5% from the 6-8.5% previously estimated.
Dividend Update
On Aug 4, Regency Centers’ board of directors announced a quarterly cash dividend of 59.5 cents per share on its common stock. The dividend will be paid out on Oct 5, to its shareholders of record as of Sep 15, 2021.
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.
Performance of Other Retail REITs
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2021 adjusted FFO per share of $2.92 handily exceeded the Zacks Consensus Estimate of $2.37. This performance was backed by better-than-expected top-line growth. The retail REIT behemoth also raised the 2021 FFO per share outlook based on its results in the year so far and expectations for the rest of 2021. It also announced a hike in its quarterly dividend.
Kimco Realty Corp.’s (KIM - Free Report) NAREIT FFO per share came in at 34 cents, topping the Zacks Consensus Estimate of 31 cents for the April-June period. This also compared favorably with the year-ago quarter tally of 24 cents. Results displayed better-than-anticipated revenue numbers. Moreover, the retail REIT raised the guidance for 2021 on improved outlook.
Realty Income Corporation’s (O - Free Report) second-quarter 2021 adjusted AFFO per share of 88 cents came in line with the Zacks Consensus Estimate. The reported figure also compares favorably with the prior-year quarter’s 86 cents. Results reflected better-than-expected improvement in revenues. The retail REIT also raised its 2021 adjusted FFO per share guidance and increased the 2021 acquisitions volume projections to $4.5 billion.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.