Stock Highlights: Regency Centers Corporation’s (NASDAQ:REG)

On 27 August 2k19, Regency Centers Corporation’s (NASDAQ:REG) stock showed the loss of -1.23% in recent trading period with closing price of $62.83. The shares of REG at the moment are trading at a volume of 1.01 million, which compares with its normal daily standard volume of 0.9 million shares. The stock has been behind -10.58% by $70.26 ever since it reached its 52-week low of 13.21%.

Regency Centers Corporation recently stated financial and operating results for the period ended June 30, 2k19.

Second Quarter 2k19 Highlights

  • For the three months ended June 30, 2k19, Net Income Attributable to Ordinary Stockholders (“Net Income”) of $0.31 per diluted share.
  • Second quarter NAREIT Funds From Operations (“NAREIT FFO”) of $0.95 per diluted share, which includes a $0.02 per share charge from one-time non-cash expenses.
  • Year-to-date same property Net Operating Income (“NOI”), not including termination fees, increased 2.1%, as contrast to the same period in 2k18, driven by Base Rent growth of 2.5%.
  • As of June 30, 2k19, the same property portfolio was 95.1% leased.
  • On a trailing twelve months basis, rent spreads on comparable new and renewal leases were 19.8% and 6.9%, respectively, with total rent spreads of 8.9%.
  • For the three months ended June 30, 2k19, total leasing volume of about 1.9M square feet of new and renewal leases, at blended rent spreads of 7.0%.
  • As of June 30, 2k19, a total of 23 properties were in development or redevelopment representing a total investment of about $474M.
  • Subsequent to the quarter, Regency purchased The Pruneyard in Silicon Valley for a purchase price of about $212.5M.
  • During the second quarter, Regency issued its yearly Corporate Accountability Report, highlighting the Company’s accomplishments in key areas of environmental, social, and governance initiatives. The Company was also recently included in the S&P 500 ESG index and received a rating upgrade to A from MSCI.
  • On August 1, 2k19, Regency reported the transition of Martin E. “Hap” Stein, Jr. from Chairman and Chief Executive Officer to Executive Chairman, to be succeeded by Lisa Palmer as President and Chief Executive Officer effective January 1, 2020.  As part of the Company’s succession plan, Ms. Palmer will vacate her role as Chief Financial Officer, retaining her position as President, effective August 12, 2k19, with Mike Mas assuming the position of Executive Vice President, Chief Financial Officer, at that time.
  • On July 31, 2k19, Regency’s Board reported a quarterly cash dividend on the Company’s ordinary stock of $0.585 per share.

Financial Results

Regency stated Net Income for the second quarter of $51.7M, or $0.31 per diluted share contrast to the Net Income Attributable to Ordinary Stockholders of $47.8M, or $0.28 per diluted share, for the same period in 2k18. The Company stated NAREIT FFO for the second quarter of $160.0M, or $0.95 per diluted share, contrast to $157.3M, or $0.93 per diluted share, for the same period in 2k18. For the three months ended June 30, 2k19, the Company’s results included a negative impact of $3.0M, or $0.02 per diluted share, from one-time non-cash expenses related to straight-line rent reserves for tenants where it is no longer probable that those tenants will remain in occupancy for the duration of their current lease.

The Company stated Core Operating Earnings for the second quarter of $152.4M, or $0.91 per diluted share, contrast to $150.5M, or $0.89 per diluted share, for the same period in 2k18. Core operating earnings per share growth was 4.6% for the second quarter, when adjusted for the adoption of Accounting Standard Codification 842, Leases. The Company views Core Operating Earnings, which excludes certain non-recurring items as well as non-cash components of earnings derived from above and below market rent amortization, straight-line rents, and amortization of debt mark-to-market, as a better measure of business performance as it more closely reflects cash earnings and the Company’s ability to grow the dividend.

Portfolio Performance

Regency’s portfolio is differentiated in its overall outstanding quality, breadth and scale. The strength of the Company’s merchandising mix, combined with place making elements and connection to its communities further differentiate Regency’s high quality portfolio. Regency’s national platform with 22 local market offices offers critical planned advantages and positions the Company to achieve its planned objective to average 3% same property NOI growth over the long term.

Second quarter same property NOI, not including termination fees, increased 1.4% contrast to the same period in 2k18, which was primarily influenced by the Sears bankruptcy and timing of reconciliations. Year-to-date same property NOI, not including termination fees, increased 2.1%, as contrast to the same period in 2k18, driven by Base Rent growth of 2.5%.

Looking at the REG Technical analysis information over the past 50 days shows that its average stood at dropped -5.72%. This figure is worse than the company’s 20-day average which currently stands at up -3.48% from 200 Days Simple Moving Average.

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