Regency Centers Corporation (REG) has been able to achieve full occupancy for its Balboa Mesa Shopping Center in San Diego. During the refurbishment phase, the company, through its merchandising efforts, have been able to drive much demand for this property and signed in 13 tenants.
This has been achieved with help from brokers from CBRE Group Inc. (CBG). Among the tenants, Vitamin Shoppe, Inc. (VSI), Chicken Charlie’s FryBQ, The Habit Burger Grill and Pieology are included.
Occupying over 210,000 square feet of space, the Balboa Mesa Shopping Center enjoys high traffic in the region. Moreover, with around 130,000 people present in a 3-mile radius, the property is expectant of a strong footfall. We believe this property would be a steady source of rental income for the company in the years ahead.
Notably, keeping its winning streak alive, Regency reported a positive earnings surprise in second-quarter 2014. Higher revenue growth and improved core portfolio fundamentals aided the results. The company is primarily focused on building a premium portfolio of grocery-anchored shopping centers that are usually necessity-driven and Internet-resistant in nature.
This real estate investment trust (REIT) is scheduled to announce third-quarter 2014 results on Nov 3. The Zacks Consensus Estimate for Funds from operations (FFO) is currently pegged at 69 cents.
Regency currently carries a Zacks Rank #2 (Buy). Investors interested in retail REITs may also consider another stock, General Growth Properties, Inc. (GGP) which holds the same Zacks Rank as Regency.
Note: Funds from operations (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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