Dj Regency Centers Corp. Stock Underperforms Friday When Compared To Competitors

With healthy retail demand and subdued construction activity continuing to drive the recovery in the retail real estate industry, Regency Centers Corp. REG seems well-poised to benefit from its portfolio of premium open-air shopping centers. Also, its focus on building a high-quality portfolio of grocery-anchored shopping centers and encouraging development pipeline bode well.

Late in October, Regency reported third-quarter 2024 NAREIT funds from operations (FFO) per share of $1.07, outpacing the Zacks Consensus Estimate of $1.04. The figure increased 4.9% from the prior-year quarter. Results reflected healthy leasing activity and a year-over-year improvement in the same property's net operating income (NOI) and base rents. The company raised its 2024 outlook.

Analysts, too, seem bullish on this Jacksonville, FL-based Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for this retail real estate investment trust’s (REIT) 2024 funds from operations (FFO) per share indicates a favorable outlook as it has moved marginally upward over the past month to $4.26.

Shares of REG have risen 4.3% in the past three months, outperforming the industry's growth of 3.1%. Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.

Headquartered in Jacksonville, Florida, Regency Centers Corporation is a leading player in the real estate industry. With a market cap of $13.4 billion, Regency Centers specializes in owning, operating, and developing high-quality open-air shopping centers.

REG stock has underperformed the broader market over the past year. The stock has gained 20.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, REG stock is up 10.8%, compared to SPX’s 24.1% returns on a YTD basis.

Narrowing the focus, REG has also lagged behind the Real Estate Select Sector SPDR Fund . The exchange-traded fund has gained about 21.1% over the past year.

Regency Centers has underperformed the broader market, reflecting challenges from market volatility and shifting investor sentiment. Despite this, the company's strong portfolio of high-quality, grocery-anchored retail centers and its strategic focus position it for long-term growth and resilience in the retail real estate sector.

Following its Q3 earnings release on Oct. 28, shares of Regency Centers rose 1%. The company reported a 10.1% year-over-year increase in net income attributable to common shareholders, reaching $98.1 million. Additionally, Regency reported Q3 funds from operations (FFO) per share of $1.07, surpassing analysts' consensus estimate of $1.04 by 2.9%. It also raised its 2024 Nareit FFO guidance to $4.27 to $4.29 per share and its core operating earnings guidance to $4.12 to $4.14 per share.

For the current fiscal year, ending in December, analysts expect Regency Centers’ EPS to grow 3.1% to $4.28 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.

Among the 17 analysts covering REG stock, the consensus is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”

This configuration is less bullish than three months before, with 13 analysts advising a “Strong Buy.”

On Nov. 18, Wells Fargo analyst Dori Kesten maintained a “Buy” rating on Regency Centers.

The mean price target of $77.88 represents a 4.9% premium to REG’s current price levels. The Street-high price target of $84 suggests an upside potential of 13.1%.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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