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Regency Centers Corp. (REG)
:REG
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Regency Centers
(NASDAQ:REG)71Outperform
Positive Factors
Financial Performance
Regency Centers reported 4Q24 FFO/sh of $1.09, which was $0.03 above the estimate and $0.02 above consensus, showing continued strength in its portfolio.
Leasing and Occupancy
The company's same store leased percentage increased to 96.7%, the highest point since tracking began in FY2009.
Negative Factors
Investment Yield
The expected cap rate spread for FY2025 implies 50bps of dilution between buys and sells compared to a positive 100bps spread in FY2024.
Regency Centers (REG) vs. S&P 500 (SPY)
Market Cap
$13.93B
Dividend Yield3.49%
Average Volume (3M)1.01M
Price to Earnings (P/E)36.1
Beta (1Y)0.66
Revenue Growth10.15%
EPS Growth3.36%
CountryUS
Employees500
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)2.11
Shares Outstanding181,365,230
10 Day Avg. Volume1,077,315
30 Day Avg. Volume1,006,012
Financial Highlights & Ratios
PEG Ratio10.77
Price to Book (P/B)N/A
Price to Sales (P/S)9.70
Price to Cash Flow (P/CF)18.40
P/FCF Ratio52.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$80.55Price Target Upside5.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Regency Centers Business Overview & Revenue Model
Company DescriptionRegency Centers Corporation is a prominent player in the real estate industry, focused primarily on owning, operating, and developing high-quality, grocery-anchored neighborhood and community shopping centers. The company operates across the United States, leveraging its extensive portfolio to provide essential retail services. Regency Centers is committed to creating thriving communities by offering a diverse mix of retail tenants that cater to everyday needs.
How the Company Makes MoneyRegency Centers generates revenue primarily through leasing retail spaces within its shopping centers to a variety of tenants, including grocery stores, restaurants, and service providers. The company earns rental income, which is typically structured as base rent from long-term lease agreements, often with additional income from percentage rents linked to tenants' sales. Regency Centers also benefits from ancillary income streams such as common area maintenance charges and property management fees. Strategic partnerships with established retailers and a focus on locations with strong demographic profiles contribute significantly to its earnings, ensuring a steady flow of rental income and occupancy rates.
Regency Centers Financial Statement Overview
Summary
Regency Centers exhibits strong profitability and cash flow metrics with moderate revenue growth. Despite inconsistent net profit margins and variable return on equity, the company's operational efficiency and cash flow management provide a robust foundation.Income Statement
Regency Centers has shown moderate revenue growth and strong profitability metrics over the years. The gross profit margin is solid, indicating effective cost management. However, the net profit margin has been inconsistent due to fluctuations in net income, impacting overall profitability. The EBIT and EBITDA margins are healthy, showcasing operational efficiency.70
Positive
Balance Sheet
The balance sheet reflects a stable equity position with a declining debt-to-equity ratio, which is a positive sign of financial health. The equity ratio is strong, indicating a good proportion of equity financing. However, the return on equity has shown variability, suggesting fluctuating profitability relative to equity.65
Positive
Cash Flow
The company exhibits strong cash flow generation with consistent operating cash flows supporting free cash flow. The free cash flow growth rate is robust, demonstrating strong cash management. The operating cash flow to net income ratio is high, indicating effective conversion of earnings into cash.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 420.28M | 1.32B | 1.22B | 1.17B | 1.02B | Gross Profit |
| 368.30M | 927.70M | 878.08M | 839.48M | 703.10M | EBIT |
| 351.99M | 516.42M | 527.71M | 494.32M | 300.81M | EBITDA |
| 448.23M | 780.53M | 954.43M | 814.98M | 646.71M | Net Income Common Stockholders |
| 136.66M | 364.56M | 341.85M | 174.54M | -138.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.69M | 84.97M | 68.78M | 95.03M | 378.45M | Total Assets |
| 12.39B | 12.43B | 10.86B | 10.79B | 10.94B | Total Debt |
| 62.65M | 4.80B | 3.94B | 3.93B | 4.14B | Net Debt |
| 45.96M | 4.71B | 3.87B | 3.84B | 3.77B | Total Liabilities |
| 5.49B | 5.23B | 4.68B | 4.68B | 4.88B | Stockholders Equity |
| 283.55M | 7.03B | 6.10B | 6.04B | 5.98B |
| Cash Flow | Free Cash Flow | |||
| 790.20M | 719.59M | 660.70M | 396.66M | 523.47M | Operating Cash Flow |
| 790.20M | 719.59M | 655.82M | 659.39M | 499.12M | Investing Cash Flow |
| -326.64M | -341.98M | -206.11M | -286.35M | -25.64M | Financing Cash Flow |
| -493.02M | -355.04M | -475.96M | -656.46M | -210.59M |
Regency Centers Technical Analysis
Positive
76.35
Price Trends
72.98
Positive
72.79
Positive
69.14
Positive
Market Momentum
1.05
Negative
61.23
Neutral
86.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REG, the sentiment is Positive. The current price of 76.35 is above the 20-day moving average (MA) of 74.29, above the 50-day MA of 72.98, and above the 200-day MA of 69.14, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 86.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REG.
Regency Centers Risk Analysis
Regency Centers disclosed 42 risk factors in its most recent earnings report. Regency Centers reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regency Centers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.55B | 25.10 | 11.37% | 3.95% | 3.41% | 10.54% | |
72 Outperform | $711.58M | 19.51 | 5.03% | 3.62% | 4.22% | -44.56% | |
72 Outperform | $8.89B | 30.11 | 9.31% | 4.15% | 6.21% | 22.32% | |
71 Outperform | $13.93B | 36.14 | 48.20% | 3.49% | 10.15% | 3.36% | |
63 Neutral | $14.62B | 38.94 | 3.86% | 4.40% | 14.51% | -45.53% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
REG
Regency Centers
76.35
17.40
29.52%
KIM
Kimco Realty
21.51
2.83
15.15%
WSR
Whitestone REIT
14.05
2.42
20.81%
FRT
Federal Realty
103.02
5.30
5.42%
BRX
Brixmor Property
27.28
5.55
25.54%
Regency Centers Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 4.66% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust performance in 2024, with significant achievements in leasing, development, and rent growth. Challenges include managing credit risks and increased interest expenses in the upcoming year. However, the positive momentum in operational performance and strategic investments suggests a strong outlook for 2025.Highlights
Strong Same Property NOI and Base Rent Growth
The company achieved a same property NOI growth of 3.6% for the full year 2024 and 4% for Q4, driven by robust base rent growth and a strong leasing pipeline.
Record Leasing Activity
Regency executed nearly 2,000 leases in 2024, covering more than 9.4 million square feet, a record volume for the company. The same property leased rate ended the year at 96.7%.
Dividend Increase
Regency increased its dividend by 5% in Q4 2024, reflecting strong operational performance and financial health.
Development and Redevelopment Achievements
Regency started $260 million in development and redevelopment projects in 2024, with yields exceeding 10%. Nearly $500 million of projects are in process with a return of more than 9%.
Accretive Capital Allocation
The company invested over $500 million in accretive activities in 2024, including high-quality acquisitions and opportunistic share repurchases.
Lowlights
Credit Loss Forecast
The company anticipates a credit loss forecast for 2025 in line with historical averages, reflecting tenant bankruptcies in recent months.
Interest Expense Increase
The forecast for 2025 includes headwinds from increased interest expenses, partially due to a bond refinancing in 2024.
Company Guidance
During the Regency Centers Corporation's Fourth Quarter 2024 Earnings Conference Call, the company provided comprehensive guidance and highlighted key metrics reflecting their robust performance and strategic execution. They reported strong same-property Net Operating Income (NOI) growth and base rent growth, driven by record leasing activity with nearly 2,000 leases covering over 9.4 million square feet and achieving a same-property leased rate of 96.7%. The company also highlighted a 5% increase in dividends and $500 million in accretive investment activity for 2024, including $250 million in development and redevelopment projects. Regency projected a NAREIT FFO range of $4.52 to $4.58 per share for 2025, reflecting nearly 6% year-over-year growth at the midpoint. They expect same-property NOI to grow between 3.2% and 4%, supported by continued strong leasing spreads, with new leasing spreads at approximately 11% in Q4 2024. The company emphasized their strong balance sheet with leverage within the target range of 5 to 5.5 times debt to EBITDA and more than $1.4 billion available on their unsecured line of credit, positioning them well for future growth opportunities.Regency Centers Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Regency Centers Reports Strong 2024 Financial Results
Positive
Feb 6, 2025
Regency Centers reported its financial results for the fourth quarter and full year 2024, highlighting a strong performance characterized by record-high occupancy levels and robust rent growth. The company achieved a net income of $2.11 per diluted share for the full year 2024, up from $2.04 in 2023, and executed 8.1 million square feet of new and renewal leases at favorable rent spreads. Regency also started development projects worth $258 million and ended the year with a net debt to operating EBITDAre ratio of 5.2x, positioning it well for future growth. The company declared a quarterly dividend of $0.705 per share and provided initial 2025 earnings guidance, reflecting confidence in sustained earnings growth.
Business Operations and StrategyFinancial Disclosures
Regency Centers Reports 2024 Financial Results and Growth
Positive
Feb 6, 2025
On February 6, 2025, Regency Centers reported its financial results for the fourth quarter and full year 2024, highlighting a net income of $2.11 per diluted share for the year, a slight increase from the previous year. The company achieved record-high occupancy levels of 96.7% in its same property portfolio and executed 8.1 million square feet of new and renewal leases at notable rent spreads. Regency also initiated significant development projects and raised $100 million through its ATM program, reinforcing its strategic growth plans and solid balance sheet.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.