Regency Centers Corporation (REG), headquartered in Jacksonville, Florida, is a real estate investment trust (REIT) that owns, operates, and develops shopping centers situated in suburban areas with compelling demographics. Valued at $13.5 billion by market cap, its portfolio includes properties that are strategically merchandised to feature highly productive grocers, restaurants, service providers, and best-in-class retailers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and REG definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the REIT - retail industry. REG's strategic focus on prime locations, particularly shopping centers anchored by grocery stores in affluent and high-traffic areas and on well-maintained properties occupied by various local and global tenants, helps it to compete effectively in the industry.
Despite its notable strength, REG slipped 2.5% from its 52-week high of $76.53, achieved on Nov. 29. Over the past three months, REG stock rose 5.2%, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 7.6% losses during the same time frame.
In the longer term, shares of REG rose 21.5% over the past six months and climbed 11% over the past 52 weeks, outperforming XLRE’s six-month gains of 8.2% and 2.1% returns over the last year.
To confirm the bullish trend, REG has been trading above its 200-day moving average since early June, with slight fluctuations. The stock is trading above its 50-day moving average since mid-May, with some fluctuations.
REG’s outperformance can be credited to solid tenant demand for its grocery-anchored shopping centers, which has accelerated its organic growth and expanded investment opportunities.
On Oct. 28, REG shares closed up more than 1% after reporting its Q3 results. The company’s revenue of $360.3 million exceeded Wall Street forecasts of $355.2 million. Its FFO was $1.07, surpassing analyst estimates of $1.04. REG expects full-year FFO to be between $4.27 and $4.29.
REG’s rival, Simon Property Group, Inc. (SPG) shares have lagged behind the stock, with a 17.8% gain over the past six months. However, SPG has taken the lead over the stock, with a 21% uptick over the past 52 weeks.
Wall Street analysts are bullish on REG’s prospects. The stock has a consensus “Strong Buy” rating from the 17 analysts covering it, and the mean price target of $79.41 suggests a potential upside of 6.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
