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Regency Starts Safeway-Anchored Oakley Shops' Development

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Regency Centers (REG - Free Report) recently announced the opening of Oakley Shops at Laurel Fields, a new ground-up development anchored by Safeway in Oakley, CA.

Oakley Shops represents Regency's first development in the Northern California submarket and will encompass around 79,000 square feet of retail space. This development will be located at the signalized intersection of Laurel Road and O’Hara Avenue, aiming to fill the gap of insufficient high-quality retail and grocery options in the surrounding area.

Safeway is set to occupy around 56,000 square feet at Oakley Shops, with an additional 23,000 square feet dedicated to quality retail, restaurant and essential services. Several prospective merchants are presently engaged in different stages of lease negotiations and discussions, with further announcements expected in the near future.

Regency is well-poised to benefit from its strategically located portfolio of premium shopping centers, concentrated in affluent suburban areas and near urban trade areas where consumers have high spending power. Over the years, the company has made several developments in the key markets of the United States to bolster growth.

In the second quarter, REG started approximately $40 million of new development and redevelopment projects, bringing total project starts to $120 million since the beginning of the year through Aug. 1, 2024. As of June 30, 2024, Regency Centers’ in-process development and redevelopment projects had estimated net project costs of $578 million. Given the company’s prudent financial management, it is well-poised to capitalize on such opportunities.

Conclusion

Given the prime location of the property and its popularity, it is likely to draw in substantial consumer footfall and drive sales, making the move strategic for Regency.

Over the past three months, shares of this Zacks Rank #2 (Buy) company have gained 20.2% compared with the industry’s growth of 14.4%.

 

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Other Stocks to Consider

Some other top-ranked stocks from the retail REIT sector are Simon Property Trust (SPG - Free Report) and Tanger. Inc. (SKT - 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’s 2024 FFO per share stands at $12.85, indicating an increase of 2.7% from the year-ago reported figure.

The Zacks Consensus Estimate for Tanger’s 2024 FFO per share is pinned at $2.09, suggesting year-over-year growth of 6.6%.

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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