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Regency Centers Secures A- Credit Rating With Stable Outlook From S&P

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Regency Centers (REG - Free Report) recently announced that S&P Global Ratings (“S&P”) raised its credit ratings to ‘A-’ with a stable outlook.

In its public announcement, S&P stated “Regency Centers has continued demonstrating solid operating performance and financial metric strength, with support from its high quality, grocery-anchored portfolio and healthy retail fundamentals.”

Regency Centers' rating is a testament to its long-term track record of cash flow growth and balance sheet strength, which have enabled the company’s stakeholders to create value and provide stability through cycles.

REG: In a Nutshell

Regency Centers is well-poised to gain from its strategically located portfolio of premium shopping centers concentrated in affluent suburban areas and near urban trade areas. Its focus on grocery-anchored shopping centers ensures dependable traffic. The company is witnessing solid demand for its centers amid a healthy retail real estate environment, driving leasing activity, occupancy levels and rent growth.

The S&P rating marks its solid creditworthiness and will render it favorable access to the debt market. With a healthy financial footing, REG is well-positioned to capitalize on long-term growth opportunities.

Q4 2024 Results

This month, Regency Centers reported better-than-expected fourth-quarter 2024 results. It reported NAREIT funds from operations (FFO) per share of $1.09, surpassing the Zacks Consensus Estimate of $1.07. The figure grew 6.9% from the year-ago quarter’s tally. Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same property net operating income and base rents.

REG’s Zacks Rank

Shares of this Zacks Rank #2 (Buy) company have gained 6.9% in the past six months compared with the industry’s growth of 3%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Other Stocks to Consider

Some other top-ranked stocks from the retail REIT sector are Essential Properties Realty Trust (EPRT - 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 Essential Properties Realty’s 2025 FFO per share of $1.89 indicates a 8.6% increase year over year.

The Zacks Consensus Estimate for Tanger’s 2025 FFO per share is pegged at $2.25, which suggests 5.6% year-over-year growth.

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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