Regency Focuses on Building Premium Portfolio: Time to Hold?

We updated our research report on Regency Centers Corporation REG on Aug 19, 2016. This Jacksonville, FL-based retail real estate investment trust (“REIT”) is engaged in the management, leasing, acquisition, development and brokerage of real estate properties consisting mainly of shopping centers and suburban office buildings.

Mainly the company aims at building a premium portfolio of grocery-anchored shopping centers. Generally, these shopping centers are Internet resistant and driven by necessity. Due to these features, these centers bring in dependable traffic.

On Aug 2, Regency reported second-quarter 2016 core funds from operations (“FFO”) of 82 cents per share, which surpassed the Zacks Consensus Estimate of 81 cents. Further, the results compared favorably with 75 cents reported in the year-ago quarter. Better-than-expected results were attributable to growth in same property net operating income.

However, the company’s growing development and redevelopment pipeline, though encouraging, exposes it to different types of risks. Further, stiff competition from other retail REITs and real estate developers and any rise in the rate of interest are concerns before Regency.

Over the past seven days, the current quarter estimate remained unchanged at 81 cents per share.

REGENCY CTRS CP Price
 

REGENCY CTRS CP Price | REGENCY CTRS CP Quote

The stock presently carries a Zacks Rank #3 (Hold).

Investors interested in the retail REIT sector can consider stocks like Acadia Realty Trust AKR, EPR Properties EPR and Pennsylvania Real Estate Investment Trust PEI. All these stocks hold a Zacks Rank #2 (Buy).

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