Regency Centers Corporation
) reached a 52-week high of $55.94 during the trading session on
Friday, Jun 20, 2014, thanks to increased investors' expectation
following the company's efforts to boost shopping experience at its
properties, solid first-quarter results and abatement of fears of
interest rate hike, at least for the short term, following the
The closing price of $55.85 of this retail real estate investment
trust (REIT) represents a robust year-to-date return of over 23%.
The average trading volume for the session was nearly 0.7 million
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left, given the improving retail market
fundamentals and the company's efforts to leverage on it, healthy
operating portfolio performance, favorable interest rate
environment and expected long-term growth of 5.6%.
Regency is making concerted efforts to improve the quality of its
properties to draw in shoppers. As part of these efforts, the
company recently added ULTA Salon, Cosmetics & Fragrance, Inc.
(ULTA) and 18|8 as tenants at 4S Commons Town Center in San Diego,
CA, in order to provide its shoppers with a better salon
Moreover, in recent times, the company disclosed the redevelopment
of a community center - Kings Park Shopping Center - based in
Burke, VA to expand the center and enhance customers' shopping
Regency Refurbishes VA Asset to Boost Footfall
). We expect such measures to aid Regency in increasing the
footfall at its properties.
Continuing with its winning streak, Regency reported a positive
earnings surprise of 6.15% in first-quarter 2014. The company's
first-quarter core funds from operations (core FFO) per share of 69
cents exceeded the Zacks Consensus Estimate by 4 cents and the
year-ago quarter figure by 5 cents. Higher revenue growth aided the
company's results and this retail REIT raised its outlook for 2014.
Regency, which has surprised in the last four quarters as well,
primarily focuses on building a premium portfolio of
grocery-anchored shopping centers. Such centers are usually
necessity driven and drive a dependable traffic. Additionally, the
outlook boosts investors' confidence in the stock.
Estimates Revision Show Potency
Over the last 30 days, 5 estimates moved north for 2014 while 3
estimates climbed up for 2015. However, there were no southward
revisions in estimates for 2014 while only one estimate moved down
for 2015. Currently, the Zacks Consensus Estimate for 2014 FFO per
share stands at 2.72 while that for 2015 is 2.86, reflecting a
3.32% and a 5.25% increase, respectively.
Other Stocks to Consider
Apart from Regency, other REITs that reached 52-week highs on Jun
LaSalle Hotel Properties
Weingarten Realty Investors
Equity LifeStyle Properties, Inc.
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
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