Regency Centers Corporation
) disclosed the opening of two new grocery stores of
Whole Foods Market, Inc.
) at two properties - Shops on Main and Hinsdale Lake Commons -
in the Chicagoland area.
In particular, Regency signed a lease deal with Whole Foods
Market, which replaced the previous tenant - Dominick's - at the
two community shopping centers. Shops on Main, which is presently
under-construction and slated to open in spring of this year, is
located in Indiana near Chicago.
The property boasts several outlets of renowned retailers
Ross Stores Inc.
Gordmans Stores, Inc.
). Hinsdale Lake Commons situated in Willowbrook, Illinois also
houses some well known retailers like Hallmark and Phillies Pizza
Bar & Grill. Whole Foods Market will occupy 40,000 square
foot and 69,540 square foot of space, respectively, at these two
Notably, Regency boasts a cluster of industry leading grocers
that are comparatively less affected in a challenging economy and
drive traffic into its centers. Consequently, the company enjoys
a stable source of rental revenue. Furthermore, this deal with
WFM boosts its tenant roaster at these 2 centers and enhances the
company's capabilities to grow its top line.
Continuing with its winning streak, Regency reported a
positive earnings surprise of 3.1% in fourth-quarter 2013. 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%.
This retail real estate investment trust (REIT) currently
carries a Zacks Rank #3 (Hold).
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.
GORDMANS STORES (GMAN): Free Stock Analysis
REGENCY CTRS CP (REG): Free Stock Analysis
ROSS STORES (ROST): Free Stock Analysis
WHOLE FOODS MKT (WFM): Free Stock Analysis
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