Published on 5 May 2023 on Zacks via 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.