Regency Provides Guidance for 2015, Revises 2014 Outlook - Analyst Blog

Regency Centers Corporation (REG), the Jacksonville, FL-based retail Real Estate Investment Trust (“REIT”) has updated 2014 earnings guidance. The retailer has also provided initial full-year earnings guidance for 2015.

The company has raised the 2014 core funds from operations (“FFO”) per share guidance to $2.81–$2.83 from the earlier projection of $2.80–$2.83. Similarly, it has increased the 2014 FFO per share guidance to $2.88–$2.91 from $2.80–$2.83. Regency has also updated the 2014 same property net operating income (“SPNOI”) growth, excluding termination fees, to 3.9%–4.1% from 3.5%–3.8%.

Notably, Regency acquired shares of AmREIT, Inc. for a total investment of $14.3 million. However, on Oct 31, 2014, AmREIT made the announcement of entering into a definitive agreement, by which it will be acquired by Edens Investment Trust.

Subsequently, Regency liquidated its equity position in AmREIT, which led to a net gain of around $6.0 million. This net gain has been reflected in 2014 FFO guidance. However, as the deal is one-time in nature, the gain has not been reflected in 2014 core FFO guidance.

Regency expects the 2015 core FFO per share and FFO per share in the range of $2.91–$2.97 and $2.89–$ 2.95, respectively. Further, it anticipates 2015 SPNOI growth, excluding termination fees, in a range of 3%–4%.

Currently, Regency carries a Zacks Rank #2 (Buy). Investors interested in retail-REITs may also consider other top-ranked stocks like American Assets Trust, Inc. (AAT), The Macerich Co. (MAC) and CBL & Associates Properties Inc. (CBL). All these stocks hold the same Zacks Rank as Regency.

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