Regency Centers to Post Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Regency Centers Corp. is expected to report year-over-year growth in revenues and funds from operations (FFO) per share for the second quarter of 2025 [1][10] Company Performance - In the last reported quarter, Regency reported NAREIT FFO per share of $1.15, exceeding the Zacks Consensus Estimate of $1.14, driven by healthy leasing activity and improvements in net operating income and base rent [2] - The Zacks Consensus Estimate for Regency's second-quarter revenues is $377.4 million, indicating a 5.7% increase from the previous year's figure [9] - The FFO per share estimate has remained unchanged at $1.14, suggesting a growth of nearly 5.7% from the prior-year quarter [10] Industry Environment - The U.S. retail real estate market experienced negative net absorption of 6.5 million square feet in Q2 2025, marking the first time negative absorption has occurred for two consecutive quarters in the post-pandemic era [4] - The national vacancy rate increased by 50 basis points to 5.8% year over year, although it remains low compared to the 6.4% level from 2017 to 2019 [5] - Asking rents for U.S. shopping centers increased by 2.3% year over year to $24.99 per square foot in Q2 2025 [6] Factors Influencing Regency - Regency's portfolio is primarily located in affluent suburban areas, benefiting from post-pandemic migration trends and a hybrid work setup [7] - The company has a high-quality portfolio with over 80% of its centers being grocery-anchored, which supports rental income stability [8] - Increased e-commerce adoption and higher interest expenses may negatively impact Regency's quarterly performance [9]