Regency Centers Corporation REG reported second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, outpacing the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.
Results reflect healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income (NOI) and base rents during the quarter. The company increased its 2025 NAREIT FFO per share outlook.
Total revenues of $380.8 million increased 6.6% from the year-ago period. The figure surpassed the Zacks Consensus Estimate of $377.4 million.
Per Lisa Palmer, president and CEO of Regency, “All operating metrics remain robust, highlighted by strong leasing activity, and we have strategically deployed more than $600 million of capital into accretive investments year-to-date, including our recent portfolio acquisition of five high-quality shopping centers in Southern California.”
REG’s Q2 in Detail
In the second quarter, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10%.
As of June 30, 2025, REG’s same property portfolio was 96.5% leased, flat sequentially and expanded 100 bps year over year.
The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 98%, increasing 90 bps year over year.
The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.9%, increasing 100 bps year over year.
The same-property NOI, excluding lease termination fees, increased 7.4% on a year-over-year basis to $274.8 million. The same-property base rent growth contributed 4.5% to the same-property NOI growth in the quarter.
As of June 30, 2025, Regency Centers’ in-process development and redevelopment projects have estimated net project costs of $518 million at the company’s share. So far, it has incurred 58% of the cost.
REG’s Portfolio Activity
In the second quarter of 2025, Regency Centers acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, through the company's Oregon joint venture for approximately $5 million. In the quarter, the company disposed of Van Houten Plaza in Passaic, NJ, for approximately $6 million.
Following the quarter end, REG acquired a portfolio of five shopping centers in the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million. Following the quarter end, the company disposed of 101 7th Avenue in New York, NY for $11 million.
REG’s Balance Sheet
As of June 30, 2025, this retail REIT had nearly $1.5 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt and preferred stock to trailing 12 months (TTM) operating EBITDAre were 5.3X.
REG’s 2025 Outlook
Regency Centers has increased its 2025 NAREIT FFO per share guidance in the range of $4.59-$4.63, compared to the prior guidance $4.52-$4.58. The Zacks Consensus Estimate is presently pegged at $4.54, which is below the guided range.
Regency Centers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Regency Centers Corporation Price, Consensus and EPS Surprise
Regency Centers Corporation price-consensus-eps-surprise-chart | Regency Centers Corporation Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other retail REITs, such as Simon Property Group SPG and Federal Realty Investment Trust FRT, which are slated to report on Aug. 4 and Aug. 6, respectively.
The Zacks Consensus Estimate for Simon’s second-quarter 2025 FFO per share stands at $3.04, indicating a 4.8% rise year over year. SPG currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Federal Realty Investment Trust’s second-quarter 2025 FFO per share is pegged at $1.73, implying a 2.4% year-over-year increase. FRT currently carries a Zacks Rank #3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
Federal Realty Investment Trust (FRT) : Free Stock Analysis Report
Regency Centers Corporation (REG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
