Yahoo Finance Regency Centers (REG) Q1 FFO & Revenues Top, '23 View Raised
Regency Centers Corporation’s REG first-quarter 2023 NAREIT funds from operations (FFO) per share of $1.08 surpassed the Zacks Consensus Estimate and our estimate of $1.02. Moreover, the figure improved 4.9% from the prior-year quarter’s $1.03.
Total revenues of $317.9 million increased 4.8% from the year-ago period’s $303.4 million. The figure also outpaced the Zacks Consensus Estimate and our estimate of $316.4 million.
Results reflect a better-than-anticipated top line, aided by healthy leasing activity and a year-over-year improvement in the base rent. The company also raised its 2023 outlook.
Behind the Headlines
In the first quarter, Regency Centers executed approximately 1.1 million square feet of comparable new and renewal leases at a blended cash rent spread of 5.5%.
As of Mar 31, 2023, REG’s wholly owned portfolio and its pro-rata share of co-investment partnerships were 94.9% leased. Its same-property portfolio was 95.1% leased, reflecting an expansion of 80 basis points (bps) year over year.
The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 96.9%, marking an increase of 20 bps from the prior-year period. The same-property shop percent leased (includes spaces less than 10,000 square feet) was 92.1%, which rose 20 bps sequentially and 170 bps year over year.
The same-property net operating income (NOI), excluding lease termination fees, increased 2.5% on a year-over-year basis to $229.7 million. An increase in same-property base rents contributed 4.3% to same-property NOI growth in the quarter.
As of Mar 31, 2023, Regency Centers’ in-process development and redevelopment projects estimated net project costs of around $303 million at the company’s share. So far, it has incurred 56% of the cost.
Balance Sheet
The company ended the first quarter of 2023 with cash, cash equivalents and restricted cash of $68.1 million, down from $68.8 million as of Dec 31, 2022.
As of Mar 31, 2023, this retail REIT had roughly $1.2 billion under its revolving credit facility. As of the same date, its pro-rata net debt-to-operating EBITDAre was 4.9X on a trailing 12-month basis.
During the reported quarter, Regency Centers repurchased around 350,000 shares at an average price of $57.22 per share for $20 million.
Dividend Update
On May 2, Regency Centers’ board of directors declared a quarterly cash dividend payment on its common stock of 65 cents. The dividend will be paid out on Jul 6, to its shareholders of record as of Jun 14, 2023.
2023 Outlook Raised
The company raised its 2023 guidance.
The current-year NAREIT FFO per share is now expected in the range of $4.07-$4.15, up from the prior-guided range of $4.03-$4.11. The Zacks Consensus Estimate is presently pegged at $4.08, within the guided range.
The same-property NOI (excluding termination fees) is expected between 0.5% and 1.5%, revised upward from the previous estimation of 0-1.0%.
Regency Centers currently carries a Zacks Rank #3 (Hold). 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
Performance of Other REITs
Simon Property Group, Inc.’s SPG first-quarter 2023 FFO per share of $2.74 missed the Zacks Consensus Estimate of $2.80. The figure, however, compared favorably with the year-ago quarter’s $2.70.
Results reflect better-than-anticipated revenues on healthy leasing activity and a rise in base rent per square foot and occupancy levels. However, higher operating expenses were a woe. This retail behemoth also raised its 2023 FFO per share outlook and dividend.
Realty Income Corporation’s O first-quarter 2023 adjusted FFO per share of 98 cents missed the Zacks Consensus Estimate of $1.02 per share. The reported figure was in line with the prior-year quarter’s number.
O’s results reflect better-than-expected revenues in the quarter. The company benefited from expansionary effects and a healthy pipeline of opportunities globally.
Kimco Realty Corp.’s KIM first-quarter 2023 FFO per share came in at 39 cents, in line with the Zacks Consensus Estimate. The figure was on par with the year-ago quarter’s tally and our estimate.
KIM’s results reflect better-than-anticipated revenues, aided by rental rate growth and a rise in occupancy. It revised its 2023 FFO per share outlook.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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