Regency Centers Corporation
) reached a 52-week high of $57.14 during the trading session on
Friday, Aug 15, after gaining momentum on solid second-quarter 2014
results. The closing price of $56.93 of this retail real estate
investment trust (REIT) represents a robust year-to-date return of
over 26%. The average trading volume for the session was nearly 0.9
Despite hitting its 52-week high, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the company's healthy
operating portfolio performance and expected long-term growth of
Regency came up with another encouraging quarterly performance,
with a positive earnings surprise of around 6.0% in second-quarter
2014. Aided by higher revenue growth, the company's core funds from
operations (core FFO) per share of 71 cents exceeded both the Zacks
Consensus Estimate and the year-ago quarter figure by 4 cents.
Encouragingly, the company raised its core FFO per share outlook
for 2014 and boosted investors' confidence.
Also, Regency's unsolicited offer to buy AmREIT Inc. (
) for $22 per share, made in early July 2014, is noteworthy. This
acquisition, upon materialization, would help Regency's Texas
shopping center portfolio to significantly increase in size and
will pave the way for significant opportunities to fuel its same
property net operating income.
Notably, 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.
Estimates Revision Show Potency
Over the last 30 days, the Zacks Consensus Estimate for 2014 FFO
per share climbed up by 6 cents to $2.78. Also, for 2015, it jumped
by 4 cents to $2.90.
Other Stocks to Consider
Apart from Regency, other REITs that reached 52-week highs on
Aug 15 include Jones Lang LaSalle Incorporated (
) and Cousins Properties Incorporated (
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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