Regency Centers Corporation (NASDAQ:REG) Q2 2024 Earnings Conference Call August 2, 2024 11:00 AM ET Company Participants Christy McElroy - SVP, Capital Markets Lisa Palmer - President and CEO Alan Roth - East Region President and COO Nick Wibbenmeyer - West Region President and CIO Mike Mas - CFO Conference Call Participants Michael Goldsmith - UBS Jeff Spector - Bank of America Merrill Lynch Juan Sanabria - BMO Capital Markets Viktor Fediv - Scotiabank Craig Mailman - Citigroup Samir Khanal - Evercore IS ...

Regency Centers Corporation (REG) reported second-quarter 2024 NAREIT funds from operations (FFO) per share of $1.06, outpacing the Zacks Consensus Estimate of $1.02. The figure increased 2.9% from the prioryear quarter. Results reflect healthy leasing activity and a year-over-year improvement in the base rent. However, high interest expenses during the quarter acted as a dampener. The company also raised its 2024 outlook. Total revenues of $357.3 million increased 13.7% from the year-ago period. However, t ...

Group 1: Financial Performance - Regency Centers reported quarterly funds from operations (FFO) of $1.06 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $1.03 per share a year ago, representing an FFO surprise of 3.92% [1] - The company posted revenues of $357.25 million for the quarter ended June 2024, which missed the Zacks Consensus Estimate by 1.19%, compared to year-ago revenues of $314.25 million [2] - Over the last four quarters, Regency Centers has surpassed consensus FFO estimates three times, but has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Regency Centers shares have increased about 0.5% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - The current consensus FFO estimate for the coming quarter is $1.04 on revenues of $367.01 million, and for the current fiscal year, it is $4.19 on revenues of $1.47 billion [7] Group 3: Industry Context - The REIT and Equity Trust - Retail industry, to which Regency Centers belongs, is currently in the top 16% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, suggesting that investors can track these revisions for better investment decisions [5][6]

Core Insights - Regency Centers Corporation reported a net income attributable to common shareholders of $99.3 million, or $0.54 per diluted share for Q2 2024, compared to $86.8 million, or $0.51 per diluted share in Q2 2023, indicating a year-over-year increase in profitability [4][5][6] - The company raised its 2024 Nareit FFO guidance to a range of $4.21 to $4.25 per diluted share, and Core Operating Earnings guidance to a range of $4.06 to $4.10 per diluted share, reflecting a positive outlook for the year [2][13] - Regency's Same Property NOI increased by 3.3% year-over-year, excluding lease termination fees and the collection of receivables reserved during 2020 and 2021 [2][6][23] Financial Performance - Nareit FFO for Q2 2024 was $196.4 million, or $1.06 per diluted share, up from $176.8 million, or $1.03 per diluted share in Q2 2023 [5][19] - Core Operating Earnings for Q2 2024 were $189.3 million, or $1.02 per diluted share, compared to $164.7 million, or $0.96 per diluted share in the same period last year [5][19] - The company executed approximately 2.2 million square feet of comparable new and renewal leases at blended rent spreads of +9.2% on a cash basis and +18.2% on a straight-lined basis [2][7] Portfolio and Leasing Activity - As of June 30, 2024, Regency's Same Property portfolio was 95.8% leased, an increase of 80 basis points year-over-year [6][7] - The Same Property shop percent leased was 93.5%, also reflecting an increase of 80 basis points compared to the previous year [6][7] - The company started approximately $40 million of new development and redevelopment projects in Q2 2024, bringing the year-to-date total to $120 million [2][9] Capital Allocation and Shareholder Returns - Regency repurchased approximately 3.3 million shares of its stock for $200 million at an average price of $60.48 per share during the quarter [2][10] - The Board declared a quarterly cash dividend of $0.67 per share on July 31, 2024, payable on October 3, 2024 [3][12] - The company has a new share repurchase program authorized for up to $250 million, effective until July 30, 2026 [10] Corporate Responsibility and Credit Rating - S&P Global upgraded Regency's outlook to 'Positive' and affirmed its BBB+ credit rating in May 2024 [2][11] - The company issued its annual Corporate Responsibility report in May, highlighting its commitment to environmental, social, and governance initiatives [8]

JACKSONVILLE, Fla., July 31, 2024 (GLOBE NEWSWIRE) -- Regency Centers Corporation ("Regency") announced today that its Board of Directors (the "Board") has appointed Gary E. Anderson as its newest member, effective as of August 1, 2024. Mr. Anderson recently retired from Prologis, Inc. ("Prologis"), a real estate investment trust that is a global leader in real estate logistics facility development and operation. With the addition of Mr. Anderson as an independent director, Regency will expand the size of i ...

Over the trailing four quarters, the company's FFO per share exceeded the Zacks Consensus Estimate on three occasions and met in the remaining quarter, with the average beat being 1.71%. This is depicted in the graph below: On a year-over-year basis, the national retail vacancy rate remained unchanged at 5.3% in the second quarter. The vacancy rate was steady for the third consecutive quarter and was among the lowest rates since 2007. In the last reported quarter, this Jacksonville, FL-based retail real est ...

M. Suhail/iStock Editorial via Getty Images This article was co-produced with Leo Nelissen. StockCharts The Return of Strip Malls Wells Fargo data confirms this, as retail real estate stands out with a subdued average vacancy rate close to 4%. Not only is this below its long-term average, but it also ignores the vacancy rise in other real estate segments. Even better, although some drug stores, big-box retailers, and restaurants are closing, demand is strong enough to pressure vacancy rates. Another benefit ...

Since 2014, the company has increased its dividend each year at a compound annual growth rate of 3.8%, while maintaining a conservative adjusted FFO, or AFFO, dividend payout ratio, which stood at 77.06% at the end of 2023. REG - IR REG pays a 4.32% dividend yield and is trading at a P/AFFO of 17.92x, compared to its average AFFO multiple of 22.04x. The company has been developing, acquiring, and operating shopping centers since the 1960s and has rewarded its shareholders with a steady source of cash flow f ...

Replay Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-admin ...

Allkindza Shares of Regency Centers (NASDAQ:REG) have been an underperformer over the past year as elevated interest rates have weighed on real estate stocks. I last covered REG in January, rating shares a "buy," but performance has been disappointing with the stock losing 7% while the market has rallied by 11%. Interestingly, the current FFO analyst estimate of $4.18 is slightly above my $4.15 forecast, meaning underperformance has been driven by multiple compression rather than poor operating results. Thi ...