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Regency (REG) Updates 2016 Guidance and Issues 2017 View

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Regency Centers Corporation (REG - Free Report) , the Jacksonville, FL-based real estate investment trust (“REIT”) has updated 2016 guidance and introduced guidance for 2017. For full-year 2016, the company anticipates core funds from operations (FFO) per share to be in the range of $3.28–$3.30, up from the previous guidance of $3.25–$3.28. Also, the company expects the NAREIT FFO guidance to remain in the range of $2.72–$2.74, down from the earlier guidance range of $2.74–$2.77 per share. Same property net operating income (“SPNOI”) growth for 2016 on a pro rata basis is expected to remain around 3.5%, up from the previous guidance range of 3.0–3.4%.

For 2017, Regency Centers expects core FFO per share to remain in the range of $3.42–$3.48, whereas NAREIT FFO per diluted share is likely to be in the range of $3.40–$3.46. On a pro rata basis, SPNOI is expected to be in the range of 2.25–3%.

Also, the company provided updates on investment activities. During Dec 2016, Regency, together with an investment partner, acquired Plaza Venezia – a 200,000 square foot Publix-anchored shopping center in Orlando, FL – for $92.5 million. Further, the company completed two dispositions. It sold Shorewood Crossing, a 175,000 square foot shopping center located in Chicago, IL for $32.5 million. It also sold Pima Crossing, a 238,000 square foot wholly owned shopping center in Scottsdale, AZ for $46.2 million.
 
During December, Regency started the development of two projects with estimated net development costs totaling $101.8 million. Also, the company started redevelopment projects with expected total project costs of $9.4 million.

Shares of Regency underperformed the Zacks categorized REIT and Equity Trust - Retail industry, over the past one year. During the period, shares of the company grew 5.1%, whereas the industry gained 7.9%.



Regency currently carries a Zacks Rank #3 (Hold). Over the past 60 days, the company’s 2016 estimates remained unchanged at $3.27 per share.
 
Some better-ranked stocks in the same space include Cedar Realty Trust, Inc. , General Growth Properties, Inc and Retail Opportunity Investments Corp. (ROIC - Free Report) . All these stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Cedar Realty Trust’s 2016 estimates remained unchanged at 56 cents per share, over the past 60 days.

General Growth Properties’ 2016 estimates remained unchanged at $1.53 per share, over the past 60 days.

Retail Opportunity Investments’ 2016 estimates remained unchanged at $1.06 per share, over the past 60 days.

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