Regency Centers raises annual FFO forecast on strong leasing demand
Oct 28 (Reuters) -Regency Centers REG.O raised its annual funds from operations(FFO) forecast after beating third-quarter estimates for the same on Monday, helped by strong leasing demand at its grocery-anchored shopping centers.
Real Estate Investment Trusts (REIT), including Regency Centers, have been benefiting from resilient tenant demand from retailers such as Target TGT.N and Kroger KR.N, who have seen increased sales, as consumers continue to purchase daily essentials like groceries.
KeyBanc analysts recently observed that REIT portfolios are outperforming the broader industry, with market share gains and stronger rent growth for both new and renewal leases.
Regency Centers expects annual National Association of Real Estate Investment Trusts (Nareit) FFO per share to be between $4.27 and $4.29, compared with its prior FFO forecast range of $4.21 to $4.25 per share.
For the quarter, the company reported FFO of $1.07 per share, compared to analysts' average estimate of $1.04 per share, according to data compiled by LSEG.
Visits to superstores increased by 2% year-over-year from July to September, while grocery store visits rose by 1.6% during the same period, according to Placer.ai data.
Regency Centers' portfolio includes over 400 properties, which are leased by grocers such as Kroger KR.N and Amazon's AMZN.O Whole Foods, along with retailers like TJX TJX.N, Kohl'sKSS.N, Ulta Beauty ULTA.O and Target TGT.N, among others.
The company also forecast its annual core operating earnings per diluted share to a range between $4.12 and $4.14, compared with its previous forecast range of $4.06 to $4.10 per share.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Mohammed Safi Shamsi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
