Regency Buys Shops at Mira Vista in Austin - Analyst Blog

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Regency Centers Corporation ( REG ) disclosed the buyout of a neighborhood shopping center - Shops at Mira Vista - in Austin, Texas. The move is in line with the company's strategy to boost its portfolio through the inclusion of Class A assets situated in high-barrier markets across the country.

Spanning 68,340 square feet, Shops at Mira Vista is situated at the southwest corner of Bee Cave Road and Edgegrove Drive. The shopping center is in proximity to Austin Central Business District and the prosperous Rollingwood and Westlake Hills neighborhoods. The property benefits from a daytime population of over 180,000 and is 98% leased to renowned retailers and restaurateurs such as Panera Bread Company ( PNRA ), Trader Joe's and Nothing Bundt Cakes.

This acquisition would help Regency to capitalize on booming economic market of Austin. The company already enjoys a presence there and Shops at Mira Vista is this real estate investment Trust's (REIT) fifth property in that area. This bodes well for the company's long-term growth given its strategic location and tenant roster.

Last month, Regency reported fourth-quarter 2013 results. Continuing with its winning streak, the company reported a positive earnings surprise of 3.1%. The company's fourth-quarter core funds from operations (core FFO) per share of 66 cents exceeded the Zacks Consensus Estimate by 2 cents and the year-ago quarter figure by 3 cents. Higher revenue growth and improved core portfolio fundamentals aided the results. Encouraged by its performance, Regency also raised its quarterly dividend by 1.6%.

The company currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in REIT- Equity Trust-Retail industry include Simon Property Group Inc. ( SPG ) and General Growth Properties, Inc. ( GGP ). Both the stocks carry a Zacks Rank #2 (Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.



GENL GRWTH PPTY (GGP): Free Stock Analysis Report

PANERA BREAD CO (PNRA): Free Stock Analysis Report

REGENCY CTRS CP (REG): Free Stock Analysis Report

SIMON PROPERTY (SPG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: GGP , PNRA , REG , SPG

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