Regency Ushers ULTA & 18|8 to 4S Commons Town Center - Analyst Blog

To provide its shoppers with a better salon experience, Regency Centers Corporation REG is adding ULTA Salon, Cosmetics & Fragrance, Inc. ULTA and 18|8 as tenants at 4S Commons Town Center in San Diego, CA. ULTA Salon is expected to open this fall, while 18|8 – the renowned men's salon – will open in July.

4S Commons Town Center stands among the affluent community centers of San Diego. Situated near Black Mountain Ranch – a thriving local residential community – the shopping center serves the daily and specialty needs of the neighborhoods. The center, which draws over 27,000 visitors per week, boasts several top retailers and restaurateurs such as Panera Bread Company PNRA and Bed Bath & Beyond Inc. BBBY.

Notably, San Diego is one of the fastest growing and expansive regions in the San Diego County. Alongside, Regency primarily focuses on building a premium portfolio of grocery-anchored neighborhood and community shopping centers, which are usually necessity driven and bring in a dependable traffic. The addition of ULTA Salon and 18|8 are hence a strategic fit and would enhance the value and boost footfall at the property.

As a matter of fact, Regency has been focusing on improving the quality of its properties in recent times to draw in shoppers. Earlier this week, Regency disclosed the redevelopment of a community center – Kings Park Shopping Center – based in Burke, VA to expand the center and enhance customers' shopping experience (read: Regency Refurbishes VA Asset to Boost Footfall). Such initiatives bode well for the long-term growth of this retail real estate investment trust (REIT).

Regency has scheduled its second-quarter 2014 earnings announcement on Aug 6, after the closing bell. The Zacks Consensus Estimate for FFO per share for the same is currently pegged at 67 cents.

Regency presently carries a Zacks Rank #3 (Hold).

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.