Regency Centers Corporation (NASDAQ: REG) is one of the leading retail real estate investment trusts (REIT) in the United States. The company's portfolio mainly consists of grocery-anchored community and neighborhood centers ensuring dependable traffic.
Last month, Regency Centers reported second-quarter 2024 NAREIT funds from operations (FFO) per share of $1.06, which outpaced the Zacks Consensus Estimate of $1.02. Results reflected healthy leasing activity and a year-over-year improvement in the base rent. The company also raised its 2024 outlook.
Analysts seem bullish about this Zacks Rank #2 (Buy) company, with the Zacks Consensus Estimate for its 2024 FFO per share being raised marginally over the past month to $4.22.
Over the past six months, shares of this retail REIT have risen 18% compared with the industry's 10.5% growth.
Image Source: Zacks Investment Research
Factors That Make Regency Centers a Solid Pick
Healthy Leasing Activity and Improving Base Rent: Regency Centers' premium shopping centers are situated in affluent suburban areas and near the urban trade areas where consumers have high spending power, enabling it to attract top grocers and retailers. The company's focus on necessity, service, convenience and value retailers serving the essential needs of the communities provides it with a strategic advantage.
Notably, anchor tenants (tenants renting spaces greater than or equal to 10,000 square feet) comprised 42.5% (based on pro-rata ABR) of its portfolio as ...
