Regency Centers Stock Outlook: Is Wall Street Bullish or Bearish?
Valued at a market cap of $13.1 billion, Regency Centers Corporation (REG) is a real estate company that owns, operates, and develops shopping centers in suburban areas. The Jacksonville, Florida-based company’s portfolio features properties anchored by grocers, restaurants, service providers, and retailers.
Shares of this retail REIT have outpaced the broader market over the past 52 weeks. REG has rallied 20.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. However, on a YTD basis, the stock is down 2.3%, lagging behind SPX’s marginal rise.
Zooming in further, REG has also outperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 6.7% return over the past 52 weeks. However, it has underperformed the ETF’s slight uptick on a YTD basis.
On Apr. 29, REG delivered its Q1 results. Shares of the company closed up marginally in the following trading session as its FFO of $1.15 per share topped the consensus estimates by a penny and improved by 6.5% from the year-ago quarter. Adding to the uptick, REG’s core operating earnings advanced 4.8% year-over-year to $1.09 per share, while its same property NOI climbed 4.5% annually, reaching $273.8 million. Additionally, its same property portfolio was 96.5% leased, up 100 basis points from the same quarter last year.
Looking ahead to fiscal 2025, the company expects FFO in the range of $4.52 to $4.58 per share, and projects same-property NOI growth, excluding termination fees, to be between 3.2% and 4%.
For the current fiscal year, ending in December, analysts expect REG’s FFO to grow 5.6% year over year to $4.54 per share. The company’s FFO surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 11 “Strong Buy,” two “Moderate Buy,” and four “Hold” ratings.
The configuration has remained consistent over the past three months.
On May 12, The Bank of Nova Scotia (BNS) maintained a “Sector Perform” rating on REG and lowered its price target to $75, which indicates a 3.9% potential upside from the current levels.
The mean price target of $79 represents a 9.4% premium from REG’s current price levels, while the Street-high price target of $84 suggests an upside potential of 16.3%.
On the date of publication, Neharika Jain 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.