Regency Centers Reports Second Quarter 2025 Results
JACKSONVILLE, Fla., July 29, 2025 (GLOBE NEWSWIRE) -- Regency Centers Corporation ("Regency Centers," "Regency" or the "Company") (NASDAQ:REG) today reported financial and operating results for the quarterly period ended June 30, 2025, and provided updated 2025 earnings guidance. For the three months ended June 30, 2025 and 2024, Net Income Attributable to Common Shareholders was $0.56 per diluted share, and $0.54 per diluted share, respectively.
Second Quarter 2025 Highlights
Reported Nareit FFO of $1.16 per diluted share and Core Operating Earnings of $1.10 per diluted share
Increased Same Property NOI year-over-year, excluding lease termination fees, by 7.4% for the quarter and 5.8% year-to-date
Raised 2025 Nareit FFO guidance to a range of $4.59 to $4.63 per diluted share and 2025 Core Operating Earnings guidance to a range of $4.36 to $4.40 per diluted share
The midpoint of increased 2025 Nareit FFO guidance represents more than 7% year-over-year growth
Raised 2025 guidance for Same Property NOI, excluding lease termination fees, to a range of 4.5% to 5.0% year-over-year growth
Same Property percent leased ended the quarter at 96.5%, an increase of 100 basis points year-over-year, and Same Property percent commenced ended the quarter at 93.9%, up 190 basis points year-over-year
Same Property anchor percent leased ended the quarter at 98.0%, an increase of 90 basis points year-over-year, and Same Property shop percent leased ended the quarter at 93.9%, up 100 basis points year-over-year
Executed 1.9 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of +10.0% on a cash basis and +19.3% on a straight-lined basis
As of June 30, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $518 million at a blended estimated yield of 9%
Issued $400 million of senior unsecured notes due 2032, with a coupon of 5.0%
Pro-rata net debt and preferred stock to TTM operating EBITDAre at June 30, 2025 was 5.3x
Issued our annual Corporate Responsibility report, highlighting achievements and progress within our corporate responsibility program and initiatives
Subsequent to quarter end, acquired a portfolio of five shopping centers located within the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million
"We are proud to deliver another quarter of outstanding results, and we are raising our growth outlook for the balance of the year," said Lisa Palmer, President and Chief Executive Officer. "All operating metrics remain robust, highlighted by strong leasing activity, and we have strategically deployed more than $600 million of capital into accretive investments year-to-date, including our recent portfolio acquisition of five high quality shopping centers in Southern California."
Financial Results
Net Income Attributable to Common Shareholders
For the three months ended June 30, 2025, Net Income Attributable to Common Shareholders was $102.6 million, or $0.56 per diluted share, compared to Net Income Attributable to Common Shareholders of $99.3 million, or $0.54 per diluted share, for the same period in 2024.
Nareit FFO
For the three months ended June 30, 2025, Nareit FFO was $212.1 million, or $1.16 per diluted share, compared to $196.4 million, or $1.06 per diluted share, for the same period in 2024.
Core Operating Earnings
For the three months ended June 30, 2025, Core Operating Earnings was $202.2 million, or $1.10 per diluted share, compared to $189.3 million, or $1.02 per diluted share, for the same period in 2024.
Portfolio Performance
Same Property NOI
Second quarter 2025 Same Property Net Operating Income ("NOI"), excluding lease termination fees, increased by 7.4% compared to the same period in 2024.
Same Property base rent growth contributed 4.5% to Same Property NOI growth in the second quarter.
Occupancy
As of June 30, 2025, Regency's Same Property portfolio was 96.5% leased, flat sequentially, and an increase of 100 basis points compared to June 30, 2024.
Same Property anchor percent leased, which includes spaces greater than or equal to 10,000 square feet, was 98.0%, an increase of 90 basis points compared to June 30, 2024.
Same Property shop percent leased, which includes spaces less than 10,000 square feet, was 93.9%, an increase of 100 basis points compared to June 30, 2024.
As of June 30, 2025, Regency's Same Property portfolio was 93.9% commenced, an increase of 40 basis points sequentially and an increase of 190 basis points compared to June 30, 2024.
Leasing Activity
During the three months ended June 30, 2025, Regency executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of +10.0% and a blended straight-lined rent spread of +19.3%.
During the twelve months ended June 30, 2025, the Company executed approximately 7.4 million square feet of comparable new and renewal leases at a blended cash rent spread of +9.7% and a blended straight-lined rent spread of +19.7%.
Corporate Responsibility
On May 21, 2025, Regency issued its annual Corporate Responsibility Report, demonstrating the Company's continued commitment to and leadership in corporate responsibility, to further our business strategy and performance. The report can be found on the Corporate Responsibility section of the Company's website.
Capital Allocation and Balance Sheet
Developments and Redevelopments
For the three months ended June 30, 2025, the Company started redevelopment projects with estimated net project costs of approximately $42 million, at the Company's share.
For the three months ended June 30, 2025, the Company completed development and redevelopment projects with estimated net project costs of approximately $21 million, at the Company's share.
As of June 30, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $518 million at the Company's share, 58% of which has been incurred to date.
Property Transactions
On May 12, 2025, the Company acquired Armonk Square in Armonk, NY, a 48,000 square feet neighborhood center anchored by regional grocer DeCicco & Sons.
The property was acquired through the Company's Oregon joint venture, for approximately $5 million, at Regency's share.
Subsequent to quarter end, on July 23, 2025, the Company acquired a portfolio of five shopping centers in the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million.
The portfolio consists of Bridgepark Plaza, Mercantile West, Mercantile East, Terrace Shops, and Sendero Marketplace, comprising close to 630,000 square feet in the aggregate and anchored by leading grocers Trader Joe's, Gelson's Market, Albertsons, and Stater Bros.
Regency funded the purchase price with a combination of 2,773,087 operating partnership units issued at $72 per unit, the assumption of $150 million of secured mortgage debt at a weighted average interest rate of 4.2%, and $7 million in cash used to pay off a single secured loan.
On June 27, 2025, the Company disposed of Van Houten Plaza in Passaic, NJ for approximately $6 million.
Subsequent to quarter end, on July 1, 2025, the Company disposed of 101 7th Avenue in New York, NY for $11 million.
Balance Sheet
On May 8, 2025, the Company's operating partnership, Regency Centers, L.P. issued a public offering of $400 million of senior unsecured notes due 2032 (the "Notes") under its existing shelf registration filed with the Securities and Exchange Commission. The Notes will mature on July 15, 2032, and were issued at 99.279% of par value with a coupon of 5.0%. Regency's use of the net proceeds of the offering include reducing the outstanding balance on its line of credit, the repayment of Regency Centers L.P.'s $250 million of notes due November 1, 2025 upon their maturity, and for general corporate purposes.
As of June 30, 2025, Regency had approximately $1.5 billion of capacity under its revolving credit facility.
As of June 30, 2025, Regency's pro-rata net debt and preferred stock to TTM operating EBITDAre was 5.3x
2025 Guidance
Regency Centers is hereby providing updated 2025 guidance, as summarized in the table below. Please refer to the Company's second quarter 2025 "Earnings Presentation" and "Quarterly Supplemental Disclosure" for additional detail. All materials are posted on the Company's website at investors.regencycenters.com.
Full Year 2025 Guidance (in thousands, except per share data)
YTD Actual
Current 2025 Guidance
Prior 2025 Guidance
Net Income Attributable to Common Shareholders per diluted share
$1.15
$2.28 - $2.32
$2.25 - $2.31
Nareit Funds From Operations ("Nareit FFO") per diluted share
$2.31
$4.59 - $4.63
$4.52 - $4.58
Core Operating Earnings per diluted share(1)
$2.20
$4.36 - $4.40
$4.30 - $4.36
Same property NOI growth without termination fees
5.8%
+4.5% to +5.0%
+3.2% to +4.0%
Non-cash revenues(2)
$24,019
+/-$49,000
+/- $46,000
G&A expense, net(3)
$47,484
$93,000-$96,000
$93,000-$96,000
Interest expense, net and Preferred stock dividends(4)
$115,533
$235,000-$237,000
$232,000-$235,000
Management, transaction and other fees
$13,529
+/-$27,000
+/-$27,000
Development and Redevelopment spend
$140,321
+/-$300,000
+/-$250,000
Acquisitions
$138,282
+/-$500,000
+/-$140,000
Cap rate (weighted average)
5.5%
+/- 6.0%
+/- 5.5%
Dispositions
$5,550
+/-$75,000
+/-$75,000
Cap rate (weighted average)(5)
6.2%
+/- 5.5%
+/- 6.0%
Share/unit issuances(6)
$0
$300,000
$100,000
Note: Figures above represent 100% of Regency's consolidated entities and its pro-rata share of unconsolidated real estate partnerships, with the exception of items that are net of noncontrolling interests including per share data, "Development and Redevelopment spend," "Acquisitions," and "Dispositions".
(1)
Core Operating Earnings excludes from Nareit FFO: (i) transaction related income or expenses; (ii) gains or losses from the early extinguishment of debt; (iii) certain non-cash components of earnings derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization; and (iv) other amounts as they occur.
(2)
Includes above and below market rent amortization and straight-line rents, and excludes debt and derivative mark to market amortization.
(3)
Represents 'General & administrative, net' before gains or losses on deferred compensation plan, as reported on supplemental pages 6 and 7 and calculated on a pro rata basis.
(4)
Includes debt and derivative mark to market amortization, and is net of interest income.
(5)
Disposition guidance cap rate of +/- 5.5% excludes the $11M sale of 101 7th Avenue on 7/1/2025, which was vacant at the time of closing.
(6)
Share/unit issuances guidance of $300M reflects (i) $100M of unsettled common equity raised on a forward basis through the Company's ATM in 4Q24, and (ii) $200M from the Company's issuance of operating partnership units for the funding of the 5-asset portfolio acquisition in Orange County, CA in 3Q25.
Conference Call Information
To discuss Regency's second quarter results and provide further business updates, management will host a conference call on Wednesday, July 30th at 11:00 a.m. ET. Dial-in and webcast information is below.
Second Quarter 2025 Earnings Conference Call
Date:
Wednesday, July 30, 2025
Time:
11:00 a.m. ET
Dial#:
877-407-0789 or 201-689-8562
Webcast:
Second Quarter 2025 Webcast Link
Replay: Webcast Archive, Investor Relations page under Events & Webcasts
About Regency Centers Corporation (NASDAQ:REG)
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.
Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO, Core Operating Earnings, and Adjusted Funds from Operations, Actual (in thousands, except per share amounts)
For the Periods Ended June 30, 2025 and 2024
Three Months Ended
Year to Date
2025
2024
2025
2024
Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO:
Net Income Attributable to Common Shareholders
$
102,608
99,255
$
208,782
205,616
