We have issued an updated research report on Regency Centers Corporation REG on Dec 28, 2015.
The Jacksonville, FL-based retail real estate investment trust (“REIT”) primarily aims to build a premium portfolio of grocery-anchored shopping centers. Such centers are usually necessity-driven and Internet-resistant in nature, thus driving dependable traffic.
Further, due to presence of industry-leading grocers such as Kroger, Safeway and Publix as tenants, Regency garners steady rental revenues and is comparatively less affected by a challenging economy. The company usually enters into long-term leases with its tenants that protect it from short-term market swings.
Notably, last October, Regency had announced encouraging third-quarter 2015 results. The company’s third-quarter 2015 core funds from operations (“FFO”) of 76 cents per share beat the Zacks Consensus Estimate by 2 cents. Further, the results compared favorably with the year-ago quarter tally of 71 cents. Better-than-expected results were attributable to strong growth in same property net operating income (“SPNOI”).
Over the past 2 months, the current-year estimates for the stock have risen to $3.00 per share from $2.98. Also, for 2016, estimates inched up to $3.20 per share from $3.18. This upward revision in estimates has helped Regency earn a Zacks Rank #2 (Buy), which further underscores the company’s solid position.
Other Stocks to Consider
Investors interested in the retail REIT industry may consider other stocks like EPR Properties EPR, National Retail Properties, Inc. NNN and Ramco-Gershenson Properties Trust RPT. All these stocks carry the same Zacks Rank as Regency.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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