Regency Centers Q2 FFO Misses Estimate, Raises 2025 Guidance

Regency Centers reported Q2 FFO of $1.10, missing the estimate by $0.02. The company saw a 7.4% increase in Same Property NOI year-over-year and raised its 2025 Nareit FFO guidance to $4.59 to $4.63 per share.

Regency Centers (NASDAQ: REG) reported its Q2 Funds From Operations (FFO) of $1.10, falling short of the estimate by $0.02. Despite the miss, the company demonstrated resilience with a 7.4% year-over-year increase in Same Property Net Operating Income (NOI), excluding lease termination fees [1].

Regency Centers also announced an upward revision to its 2025 Nareit FFO guidance, setting a range of $4.59 to $4.63 per diluted share. This represents a more than 7% year-over-year growth compared to the previous midpoint guidance [1]. Additionally, the company raised its 2025 Core Operating Earnings guidance to a range of $4.36 to $4.40 per diluted share [1].

The company's Same Property NOI, excluding lease termination fees, is expected to grow by 4.5% to 5.0% year-over-year in 2025. Regency Centers ended the quarter with a Same Property percent leased at 96.5%, up 100 basis points year-over-year, and a Same Property percent commenced at 93.9%, an increase of 190 basis points year-over-year [1].

Regency Centers executed 1.9 million square feet of comparable new and renewal leases during the quarter, achieving blended rent spreads of +10.0% on a cash basis and +19.3% on a straight-lined basis [1]. The company's in-process development and redevelopment projects had estimated net project costs of $518 million at a blended estimated yield of 9% as of June 30, 2025 [1].

Regency Centers issued $400 million of senior unsecured notes due 2032, with a coupon of 5.0%. The pro-rata net debt and preferred stock to TTM operating EBITDA at June 30, 2025, stood at 5.3x [1]. The company also published its annual Corporate Responsibility report, highlighting achievements and progress within its corporate responsibility program and initiatives [1].

Subsequent to the quarter end, Regency Centers acquired a portfolio of five shopping centers located within the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million [1].

References:
[1] https://seekingalpha.com/news/4473796-regency-centers-ffo-of-1_10-misses-by-0_02