Regency Centers Q2 FFO & Revenues Beat, Same-Property NOI Rises

Core Insights - Regency Centers Corporation (REG) reported a second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, exceeding the Zacks Consensus Estimate of $1.12, and reflecting a 9.4% increase from the prior-year quarter [1][9] - The company experienced strong leasing activity, with improvements in same-property net operating income (NOI) and base rents, leading to an increased 2025 NAREIT FFO per share outlook [1][10] Financial Performance - Total revenues reached $380.8 million, marking a 6.6% increase from the previous year and surpassing the Zacks Consensus Estimate of $377.4 million [2] - Same-property NOI, excluding lease termination fees, rose 7.4% year-over-year to $274.8 million, with base rent growth contributing 4.5% to this increase [4][9] Leasing Activity - In Q2 2025, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10% [3] - As of June 30, 2025, the same property portfolio was 96.5% leased, remaining flat sequentially but increasing by 100 basis points year-over-year [3] Portfolio Management - The company strategically deployed over $600 million into accretive investments year-to-date, including the acquisition of five high-quality shopping centers in Southern California [2] - In Q2 2025, REG acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, for approximately $5 million, and disposed of Van Houten Plaza in Passaic, NJ, for about $6 million [6] - Following the quarter end, REG acquired a portfolio of five shopping centers in Rancho Mission Viejo, CA, for $357 million and disposed of 101 7th Avenue in New York, NY, for $11 million [7] Balance Sheet - As of June 30, 2025, Regency Centers had nearly $1.5 billion of capacity under its revolving credit facility, with a pro-rata net debt and preferred stock to trailing 12 months operating EBITDAre ratio of 5.3X [8] 2025 Outlook - The company raised its 2025 NAREIT FFO per share guidance to a range of $4.59-$4.63, compared to the previous guidance of $4.52-$4.58, with the current Zacks Consensus Estimate at $4.54 [10]