Regency Centers Corporation (REG), headquartered in Jacksonville, Florida, is a renowned owner, operator, and developer of shopping centers in suburban trade areas with compelling demographics. Valued at a market cap of $13 billion, Regency Centers operates as a leading publicly traded retail REIT with thriving properties merchandised with highly productive grocers, restaurants, service providers, etc. It is expected to announce its fiscal 2024 Q3 earnings after the market closes on Monday, October 28.
Ahead of the event, analysts expect Regency Centers to report funds from operations (FFO) of $1.04 per share, up 2% from $1.02 per share reported in the year-ago quarter. The company has consistently outperformed or matched Wall Street's FFO estimates for the past four quarters. In the most recent quarter, its FFO per share was $1.06, beating the consensus estimate by 3.9%.
Looking ahead to fiscal 2024, analysts expect Regency Centers to report an FFO per share of $4.24, up 2.2% from $4.15 in fiscal 2023. For fiscal 2025, its FFO per share is expected to grow 3.8% annually to $4.40 per share.
REG stock has surged 20% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 35.4% gains and the S&P 500 Real Estate Sector SPDR’s (XLRE) 27.3% returns over the same time frame.
Over the past year, Regency Centers' price performance has been pressured by rising interest rates, which drove up borrowing costs and strained the company's refinancing and financial flexibility. Market volatility has further fueled uncertainty in the debt capital markets, dampening investor sentiment and adding to the stock's challenges.
However, on Aug. 1, REG stock edged up 1.8% after reporting its Q2 earnings results, surpassing revenue and EPS expectations. It also raised full-year Nareit funds from operations guidance to a range of $4.21 and $4.25, up from the previous forecast of $4.15 to $4.21 range.
The consensus opinion on Regency Centers stock is highly bullish, with a “Strong Buy” rating overall. Out of the 17 analysts covering the stock, 11 recommend a “Strong Buy,” two advise a “Moderate Buy,” and four suggest a “Hold” rating. This configuration is less bullish than a month ago, with 13 “Strong Buy” ratings.
The average target price for REG is $76.06, indicating a potential upside of 7.6% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
