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Regency Centers Q4 FFO Beats Estimates, Same Property NOI Rises

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Regency Centers Corporation (REG - Free Report) reported fourth-quarter 2024 NAREIT funds from operations (FFO) per share of $1.09, outpacing the Zacks Consensus Estimate of $1.07. The figure increased 6.9% from the prior-year quarter.

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Results reflect healthy leasing activity. It witnessed a year-over-year improvement in the same property net operating income (NOI) and base rents during the quarter. The company also issued its 2025 outlook.

Total revenues of $372.5 million increased 3.6% from the year-ago period. However, the figure missed the Zacks Consensus Estimate of $373.2 million.

Per Lisa Palmer, president and CEO of Regency, “We closed the year at record-high occupancy levels accompanied by strong rent growth, as well as our highest annual volume of development and redevelopment starts in nearly 20 years.”

For the full-year 2024, Regency Centers’ NAREIT FFO per share came in at $4.30, up from the year-ago tally of $4.15. The reported number was ahead of the Zacks Consensus Estimate of $4.28. Total revenues of $1.42 billion increased 9.9% from a year ago.

 

Regency Centers Corporation Price, Consensus and EPS Surprise

Regency Centers Corporation Price, Consensus and EPS Surprise

Regency Centers Corporation price-consensus-eps-surprise-chart | Regency Centers Corporation Quote

 

REG’s Q4 in Detail

In the fourth quarter, Regency Centers executed approximately 2.3 million square feet of comparable new and renewal leases at a blended cash rent spread of 10.8%.

As of Dec. 31, 2024, REG’s same property portfolio was 96.7% leased, reflecting an increase of 60 basis points (bps) sequentially and an expansion of 100 bps year over year.

The same property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 98.3%, increasing 100 bps year over year.

The same property shop percent leased (includes spaces less than 10,000 square feet) was 94.1%, increasing 50 bps year over year.

The same property NOI, excluding lease termination fees and the collection of receivables reserved during 2020 and 2021, increased 4.0% on a year-over-year basis to $235.3 million. The same property base rents contributed 3.3% to the same property NOI growth in the quarter.

As of Dec. 31, 2024, Regency Centers’ in-process development and redevelopment projects have estimated net project costs of around $497 million at the company’s share. So far, it has incurred 39% of the cost.

REG’s Portfolio Activity

In October 2024, Regency, with its institutional joint venture partner, acquired University Commons - Austin in Round Rock, TX, for around $14 million at the company’s share.

REG’s Balance Sheet

As of Dec. 31, 2024, this retail REIT had nearly $1.4 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt and preferred stock to operating EBITDAre was 5.2X.

REG’s 2025 Outlook

Regency Centers provided the initial 2025 guidance. The 2025 NAREIT FFO per share is expected in the range of $4.52-$4.58. The Zacks Consensus Estimate is presently pegged at $4.49, which is below the guided range.

The same property NOI growth (excluding termination fees) is expected to be between 3.2% and 4.0%.

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.

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs, such as Brixmor Property Group (BRX - Free Report) and Realty Income (O - Free Report) , which are slated to report on Feb. 10 and Feb. 24, respectively.

The Zacks Consensus Estimate for Brixmor’s fourth-quarter 2024 FFO per share stands at 54 cents, indicating a 5.9% rise year over year. BRX currently has a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Realty Income’s fourth-quarter 2024 FFO per share is pegged at $1.06, implying a 5% year-over-year increase. O currently carries 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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