Published on 3 Nov 2023 on Zacks via Yahoo Finance
Regency Centers (REG) Q3 FFO Beats Estimates, '23 View Raised
Regency Centers Corporation’s REG third-quarter 2023 NAREIT funds from operations (FFO) per share of $1.02 surpassed both the Zacks Consensus Estimate and the prior-year quarter’s figure of $1.01.Total revenues of $330.6 million increased 8.8% from the year-ago period. However, the figure narrowly missed the Zacks Consensus Estimate of $331.7 million.Results reflect healthy leasing activity and a year-over-year improvement in the base rent. The company also raised its dividend and 2023 outlook.
Behind the Headlines
In the third quarter, Regency Centers executed approximately 1.8 million square feet of comparable new and renewal leases at a blended cash rent spread of 9.3%.As of Sep 30, 2023, REG’s wholly owned portfolio and pro-rata share of co-investment partnerships were 94.6% leased. Its same-property portfolio was 95.4% leased, reflecting an expansion of 20 basis points (bps) sequentially and 70 bps year over year.The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 96.7%, which increased 10 bps sequentially but declined 10 bps year over year.The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.2%, which rose 50 bps sequentially and 180 bps year over year.The same-property net operating income (NOI), excluding lease termination fees, increased 2.1% on a year-over-year basis to $223.7 million. Same-property base rents contributed 3.2% to same-property NOI growth in the quarter.As of Sep 30, 2023, Regency Centers’ in-process development and redevelopment projects estimated net project costs of around $440 million at the company’s share. So far, it has incurred 46% of the cost.During the quarter, REG accomplished its previously announced acquisition of Urstadt Biddle in an all-stock transaction, including the assumption of debt and the issuance of preferred stock.Moreover, in September, it acquired a 20% stake in Old Town Square, a Jewel-Osco-anchored shopping center in Chicago, IL, for $5.5 million at Regency’s share.