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Regency Centers has increased its full-year forecast for funds from operations (FFO) following steady leasing demand for its grocery-anchored shopping centers. The real estate investment trust (REIT) expects its 2025 NAREIT FFO to range between USD 4.62 and USD 4.64 per share, slightly higher than its earlier projection of USD 4.59 to USD 4.63. The company also raised its annual core operating earnings guidance to USD 4.39-4.41 per share. For the third quarter ended September 30, Regency posted an FFO of USD 1.15 per share, matching market estimates.
Regency Centers raised its full-year forecast, supported by healthy tenant demand and stable occupancy levels across its grocery-anchored retail portfolio. The company said that leasing activity remained solid, aided by necessity-based retailers such as grocers and essential goods providers, which continue to draw consistent customer traffic even amid higher living costs. Advertisement
The firm's updated guidance now pegs 2025 NAREIT FFO between USD 4.62 and USD 4.64 per share, compared with its previous estimate of USD 4.59 to USD 4.63 per share. It also expects core operating earnings in the range of USD 4.39 to USD 4.41 per share, up from the earlier projection of USD 4.36 to USD 4.40. The upward revision reflects stronger leasing performance and a disciplined approach to rent growth.
In the third quarter ending September 30, Regency reported an FFO of USD 1.15 per share, aligning with analysts' expectations compiled by LSEG. The company noted that sustained retail-space demand allowed it to achieve steady rent increases without affecting occupancy. Management highlighted that the limited availability of quality retail space has created favourable conditions for landlords to negotiate higher rents.
Regency's portfolio is anchored by well-known grocery chains such as Kroger and Whole Foods, and it also includes national retailers like Target, Kohl's and Ulta Beauty. This mix of tenants that cater to essential and high-frequency purchases has provided the company with stability against broader economic uncertainty and shifting consumer behaviour.
The company's leadership said that its strong property base in established, high-income areas continues to attract consistent foot traffic and stable revenue. This, coupled with a focus on maintaining long-term relationships with reliable tenants, has helped Regency offset challenges such as inflation and policy shifts that have affected parts of the retail sector.
Industry analysts noted that the REIT's recent results underline the resilience of necessity-based retail properties, which tend to perform better during economic slowdowns. Leasing spreads, occupancy rates, and renewal volumes have remained healthy, supporting the firm's positive outlook for the remainder of the year.
Source Reuters
5th Jun, 2025
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