Regency Centers (REG) Outperforms Q1 FFO Estimates, Revises 2024 Financial Outlook

• Regency Centers Corporation (REG) reports first-quarter 2024 NAREIT funds from operations (FFO) per share of $1.08, surpassing the Zacks Consensus Estimate of $1.04.
• Total revenues of $363.9 million increased 14.4% from the year-ago period, yet fell short of the Zacks Consensus Estimate of $370 million.
• The company’s Same Property portfolio was 95.8% leased as of March 31, 2024, reflecting an expansion of 20 basis points sequentially and 90 basis points year over year.

Regency Centers Corporation outperforms estimates in Q1 2024, with a 14.4% increase in total revenues compared to the previous year. The company’s leasing activity remains robust, with its Same Property portfolio 95.8% leased.

Healthy Leasing Activity

In the first quarter, Regency Centers executed approximately 1.8 million square feet of comparable new and renewal leases at a blended cash rent spread of 8.5%. The Same Property net operating income (NOI), excluding lease termination fees, increased 1.4% on a year-over-year basis to $235.1 million. Same Property base rents contributed 2.7% to same-property NOI growth in the quarter.

Financial Position

Regency Centers ended Q1 2024 with cash, cash equivalents and restricted cash of $230.1 million, up from $91.4 million as of Dec 31, 2023. The company had nearly $1.50 billion of capacity under its revolving credit facility. Its pro-rata net debt-to-operating EBITDAre was 5.4X on a trailing 12-month basis.

Dividend and Outlook

On May 1, Regency Centers’ board of directors declared a quarterly cash dividend payment on its common stock of 67 cents. The dividend will be paid out on Jul 3, 2024, to its shareholders of record as of Jun 12, 2024. The company also raised its 2024 NAREIT FFO per share guidance to the range of $4.15-$4.21 from the prior-guided range of $4.14-$4.20.

Conclusion

Regency Centers Corporation’s Q1 2024 results reflect a strong leasing activity and a year-over-year improvement in the base rent. Despite high interest expenses, the company’s financial position remains robust, with an increased cash position and significant capacity under its revolving credit facility. With a raised 2024 NAREIT FFO per share guidance, the outlook for Regency Centers Corporation remains positive.