REG

It has been about a month since the last earnings report for Regency Centers (REG). Shares have lost about 6.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Regency Centers due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Regency Centers Corporation before we dive into how investors and analysts have reacted as of late. Regency Centers reported second-quarter 2026 NAREIT FFO per share of $1.21, beating the Zacks Consensus Estimate of $1.20 by 0.8%. The metric increased 4.3% from the year-ago quarter. Total revenues of $413.5 million rose 8.6% year over year and topped the consensus mark of $405 million by 2.1%. The results reflected solid leasing demand, with same-property NOI advancing 3.8%. Same-property base rent growth contributed 3.7% to same-property NOI growth in the reported quarter. Total NOI increased 6.8% year over year to $300.1 million, while same-property NOI reached $288.3 million. The expense recovery ratio improved to 89.7% from 88.1% year over year. However, the NOI margin eased to 69.6% from 70.2%, as property operating expenses and real estate taxes increased from the prior-year period. The same-property portfolio was 96.9% leased at quarter-end, up 40 basis points (bps) year over year and 30 bps sequentially. Regency’s same-property portfolio was 94.5% commenced, rising 50 bps year over year. The 240-basis-point gap between leased and commenced occupancy remains above Regency’s historical average of roughly 180 bps, providing visibility into additional rent commencement. Same-property anchor space, which includes spaces greater than or equal to 10,000 square feet, was 98.4% leased, an increase of 20 bps sequentially. Same-property shop space, which includes spaces less than 10,000 square feet, was 94.4% leased, up 30 bps sequentially. The signed-not-occupied (SNO) pipeline represented approximately $41 million of annual base rent. About 69% of the associated leases are expected to commence by the end of 2026, with 91% of the pipeline located within the same-property pool. During the second quarter, Regency executed around 2.1 million square feet of comparable new and renewal leases. Blended rent spreads were 10.4% on a cash basis and 19.5% on a straight-line basis. For the 12 months ended June 30, 2026, the company completed about 7.1 million square feet of comparable new and renewal leasing. Cash rent spreads were 11.8%, while straight-lined spreads were 22.7%, reflecting continued pricing strength across the operating portfolio. The sustained leasing volume supported occupancy and rent growth. It also reinforced management’s view that tenant demand remains robust across Regency’s grocery-anchored shopping centers. Regency started $68 million of ground-up development and redevelopment projects during the second quarter. These starts included The Berkeley at Durbin Park, a $55 million Whole Foods and TJ Maxx-anchored ground-up development project in Jacksonville, FL. The company also completed roughly $20 million of redevelopment projects. The in-process development and redevelopment projects pipeline totaled $680 million at Regency’s share, with 49% of the estimated costs incurred and a blended estimated yield of approximately 9%. Regency acquired Shops at Highland Walk in Denver, CO, for around $37 million, or $7 million at its share. The 95,000-square-foot shopping center is anchored by King Soopers. As of June 30, 2026, Regency had about $1.5 billion of available capacity under its revolving credit facility. Pro-rata net debt and preferred stock to trailing 12-month operating EBITDAre improved to 5.0X from 5.2X at the end of the prior quarter. The company’s fixed-charge coverage ratio was 4.2X. Outstanding debt totaled $5.44 billion, while cash, cash equivalents and restricted cash stood at $191.6 million at quarter-end. Regency raised its full-year 2026 NAREIT FFO guidance to $4.84-$4.88 per share from $4.83-$4.87. The midpoint increased 1 cent to 4.86, reflecting updated expectations for non-cash revenues, including below-market rent amortization and straight-line rent reserve adjustments. Same-property NOI growth guidance was raised to 3.7-4.1% from 3.25-3.75%. Management cited higher tenant recoveries and better average commenced occupancy as the key factors behind the improved outlook. Since the earnings release, investors have witnessed a downward trend in estimates revision. Currently, Regency Centers has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Regency Centers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regency Centers Corporation (REG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET President and Chief Executive Officer - Lisa Palmer Chief Financial Officer - Michael J. Mas East Region President and Chief Operating Officer - Alan Todd Roth West Region President and Chief Investment Officer - Nicholas Andrew Wibbenmeyer Investor Relations - Kathryn McKie Operator: Greetings, and welcome to the Regency Centers Corporation Second Quarter 26 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Christy McElroy. Please go ahead. Kathryn McKie: Good morning, and welcome to Regency Centers' Second Quarter 26 Earnings Conference Call. Joining me today are Lisa Palmer, President and Chief Executive Officer Michael J. Mas, Chief Financial Officer; Alan Todd Roth, East Region President and Chief Operating Officer and Nicholas Andrew Wibbenmeyer, West Region President and Chief Investment Officer. As a reminder, today's discussion may contain forward looking statements about the company's views of future business and financial performance including forward earnings guidance and future market conditions. These are based on the current beliefs and expectations of management are subject to various risks and uncertainties. It is possible that actual results may differ materially from those suggested by these forward-looking we may make. Factors and risks that could cause actual results to differ materially from these statements may be included in our presentation today and are described in more detail in our filings with the SEC, specifically in our most recent Form 10-K and 10-Q filings. In our discussion today, we will also reference certain non GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials which are posted on our Investor Relations website. Please note that we have also posted a presentation on our website with additional information including disclosures related to forward earnings guidance. Our caution on forward looking statements also applies to these presentation materials. As a reminder, given the number of participants we have on the call today, we respectfully ask that you limit your questions to 1. Please rejoin the queue if you have additional follow-up questions. Lisa? Lisa Palmer: Thank you, Christy. Good morning, everyone, and thank you for joining us. Our team delivered another excellent quarter. Extending the positive momentum we have built over the past several years. We generated strong NOI and earnings growth, driven by sustained operating fundamentals and a disciplined capital allocation strategy. These results reflect the quality of our portfolio, the strength of our platform, and most importantly, the remarkable execution of our team. Across our portfolio, leasing demand trends remain robust. Supported by the strength of our tenant base and their continued expansion plans. Our grocery anchored neighborhood and community centers continue to benefit from a durable tenant mix. Of necessity, service, convenience, and value retailers while the resilience of our consumer base is supported by the compelling demographic profile of the suburban trade areas we serve. We believe this positions us well to perform consistently through shorter term periods of macro uncertainty as well as longer term across all economic cycles. We also continue to execute on our capital allocation strategy, with momentum across our entire investments platform, including development, redevelopment and acquisitions. Our national ground up development program is 1 of Regency's most important differentiators. In an environment of continued low new supply, and a scarcity of high quality available space, our ability to source, execute, and deliver successful projects across our target markets is not only a driver of meaningful NOI growth, it also creates value in ways that no 1 else in our sector is replicating. Rather than relying solely on acquiring centers at market prices to drive external growth. We are building premier shopping centers at yields that represent substantial spreads to market cap rates. This platform and our ability to consistently drive value above our cost to build allows us to generate earnings accretion while also growing NAV. Mike will go into more detail, but our favorable year to date performance and enhanced visibility into the second half of the year gives us the confidence to raise our full year forecasts for same property and total NOI growth. And we now expect core operating earnings per share growth to exceed 5%. Before I close, I would also like to briefly mention our recently released corporate responsibility report, which highlights meaningful progress across our priorities. Corporate responsibility has long been a foundational strategy for our company, Its principles are deeply ingrained in our culture, and day to day operations. And the initiatives continue to generate real cost savings and ancillary revenue growth. In summary, I am energized by our business today and the opportunities ahead. Our high quality portfolio located in the strongest suburban trade areas, our leading national development platform, our fortress balance sheet, and most importantly, again, the best team in the business all set us apart. I am confident in our ability to deliver durable, sustainable growth and long term value for our shareholders. Alan? Alan Todd Roth: Thank you, Lisa, and good morning, everyone. We delivered another outstanding operating quarter driving overall leased and shop occupancy to new highs, while maintaining robust rent growth, reflective of the fundamental strength across our portfolio. These positive results collectively contributed to same property NOI growth of 3.8% in the quarter, with base rent growth serving as the primary driver. Our same property leased rate is now nearly 97%, as we are pushing both anchor and shop leasing higher supported by continued strong tenant demand and a retention rate of 84%. This is a direct reflection of the favorable leasing environment, coupled with limited availability of high quality space. Commenced occupancy was also up 20 basis points in the quarter as we continue to successfully convert our SNO pipeline into rent paying tenants. Our pipeline of newly executed leases provides us with visibility of further upside in commence occupancy which will remain an important component of future same property NOI growth. Leasing is active and broad based, across nearly every category and region in which we operate. Grocers, health and wellness concepts, restaurants, personal services and value oriented retailers continue to expand. At the same time, quality space is in short supply, both within our portfolio and throughout our markets, providing our teams significant leverage in lease negotiations and they are doing an excellent job capturing that opportunity. We This is translating into strong rent growth. With cash rent spreads above 10% in the quarter and GAAP spreads of nearly 20%. We also continue to successfully embed annual rent escalators into nearly all of our newly executed leases, 1 of the primary drivers of sustainable base rent growth well into the future. This fundamental backdrop is also supporting our ability to boost expense recoveries. We are seeing our recovery rate benefit significantly from higher commenced as well as improved lease terms. We saw the power of this in the second quarter as we completed our expense reconciliations for the prior year with market conditions and the quality of our leases driving success. Building on some of Lisa's comments, our centers benefit from both trade up and trade down behavior sitting at the intersection of convenience, offering value, and everyday essentials. Tenant sales growth is widespread throughout the portfolio, foot traffic is showing steady increases and accounts receivables remain below historical averages confirming a very healthy tenant base. Our team remains focused on capitalizing on strong tenant demand and favorable supply dynamics. Creating opportunities to drive NOI higher while further strengthening the merchandising quality in our portfolio. That combination of strong fundamentals and disciplined execution gives us confidence our ability to continue driving NOI growth. With that, I will hand it over to Nick. Nicholas Andrew Wibbenmeyer: Thank you, Alan. Good morning, everyone. During the second quarter, we continued to build on the success of our investments platform, further extending our external growth trajectory. We made meaningful progress across development, redevelopment, and acquisition activity in addition to identifying future opportunities. Our new project pipelines remain particularly strong, providing a clear path to future growth. As a result, we have raised our eye level on new development and redevelopment projects, and now expect starts in 2026 to approach $400 million This truly is a unique story to Regency, We have a visible external growth pipeline that results in real value creation on top of earnings accretion. It also allows us to approach acquisitions as opportunistic and strategic rather than as a required deployment of capital. This is especially valuable in environments like today, transaction markets that are extremely competitive and continue to compress cap rates. Year to date, we have started more than $140 million of new projects, 1 of the highlights of which was the start of the Berkman at Durbin Park during the second quarter. This $55 million ground up project will be anchored by Whole Foods and TJ Maxx, located within a vibrant master plan community in a strong suburb of Jacksonville. We are also making great progress executing on our $680 million in process pipeline, for which we continue to expect blended returns of 9%. Leasing momentum for these projects has been outstanding, with in process development 80% leased. Beyond accelerated leasing, our team continues to partner with anchors to efficiently get stores open ahead of schedule and accelerate rent commencements. Includes the recent early openings of Trader Joe's at The Golden Hills in Central California, and Kroger at Westchester Plaza in Cincinnati. These are just a few great examples of the success and positive trends across our pipeline. In closing, our ability to increasingly source new and exciting projects is a testament to the flywheel effect I have referred to in the past. We are excited about the opportunities in front of us as our recent successes, retailer relationships, development expertise, and access to capital allow us to continue to be confident in our ability to drive sustainable and attractive external growth creating significant value for our shareholders. Mike? Michael J. Mas: Thank you, Nick, and good morning, everyone. As you have heard from the team, Regency delivered impressive financial results in the second quarter, supported by execution across our operating and investment platforms. We now have enhanced visibility into the second half of the year And as you heard from Nick, we continue to grow our investment opportunity set and in process development pipeline. All of this speaks to the power and durability of Regency's growth algorithm. We combine the strong, stable organic performance of our high quality portfolio. With accelerating contribution from accretive capital allocation. Focused on successful development and redevelopment projects and operating property acquisitions. As a result, we are raising our full year outlook. We have increased same property NOI growth by 40 basis points at the midpoint, primarily due to higher commenced occupancy expectations supported by greater clarity around tenant activity in the second half, in addition to higher expense recoveries. Following the completion of our annual reconciliation process. Our revised outlook now reflects total NOI growth in the mid-6% area as well as core operating earnings per share growth exceeding 5%. I also want to highlight a few atypical items within NAREIT FFO. Which are largely offsetting each other within our guidance ranges. These include a singular lease termination fee that will contribute to a higher level of term fees in the third quarter as well as a reduction to our non cash revenue outlook largely related to lower below market rent amortization and higher straight line rent reserves. Our A rated balance sheet remains a competitive advantage. With leverage comfortably within our target range of 5 to 5.5x along with strong and growing free cash flow. And nearly full availability on our $1.5 billion revolving credit facility. This flexible financial and liquidity position provides us with a attractive access to low cost capital and supports our ability to fully fund our investment pipelines and pursue additional growth opportunities. Stepping back, everything that drives value for Regency is working in concert. Strong leasing fundamentals. Consistent embedded rent growth, and unmatched development led external growth strategy, a healthy balance sheet, disciplined value creating capital allocation position us for durable, and attractive growth ahead. With that, welcome your questions. Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press 1 on Please limit yourself to 1 question, and you can rejoin the queue for additional questions. You may press 2 if you would like to remove your question from the queue. And our first question will come from Michael Goldsmith with UBS. Michael Goldsmith: Good morning. Thanks a lot for taking my question. Can you provide a little bit more clarity on the term fees? It looks like you are now expecting a larger 1 in the back half. So can you provide some more details around that? How is that impacting your revised outlook? And then is that included or excluded from your same property NOI guidance? Thanks. Alan Todd Roth: Hey, Michael. Good morning. it is Alan Todd Roth. I will let Mike answer the guidance side of it. Let me just start with 1 of our major EV operators decided that they were not going to open 11 of our locations as part of a package deal. Greg operator, financially sound. They are going to continue to operate about 15 units. Within our portfolio. And importantly, we are collecting rent through the end of this year We got a termination fee of 4 years of rent from that. And we are already engaged on 8 of those 11 locations for a backfill. So it was overall an exceptional transaction in terms of what is impacting the numbers. Guidance, I will let Sure. Michael J. Mas: Hey, Michael. it is a good opportunity to highlight the excellent disclosure on the reconciliation. If you look at page 6 of our slides, where you can see lease termination fees is not part of Regency same-prop NOI metric. So that healthy 1.5¢ guide raise in the same property NOI line is excluding the positive deal that Alan just described? So the $0.015 is incorporated into our core operating earnings raise and FFO raise for the quarter. But what I would like to highlight is that the raise in same property growth of 40-basis points at the midpoint, raising both the low and high end, is really the material driver to our enhanced outlook. Greg leasing activity, enhanced visibility into average commence occupancy going north from this point forward, And we had a great recovery season in the second quarter. And we think that expense recovery ratio will hold for the balance of the year. Thanks, Michael. Alan Todd Roth: Thank you very much. Thanks, Michael. Operator: Our next question will come from Jamie Feldman with Wells Fargo. Jamie Feldman: Greg. Thanks for taking the question. So you walk through a wide range of capital options to fund new investment. You are comfortably in your target range for leverage. Can you just talk about how you do think about the different sources of capital, including OP units? As we have seen some of your peers start to use a little bit more And as especially as you find larger deals, or if you want to find larger deals, how you would think about the mix of capital sources. Thank you. Michael J. Mas: I have got you, Jamie. So everything here starts with free cash flow. And we are very consistent with how we think about sources and uses. Free cash flow is in the area of $180 million this year. We will leverage that neutral to our balance sheet. I appreciate you noting where we are. We are at the lower end of our targeted range. 5 to 5.5x. So we have some capacity there. And that levered free cash flow is the fundamental source for our driving our development business. So we can go confidently into that business and make commitments and deliver upon those commitments. We do have excess levered free cash flow that we can deploy into acquisitions. And to the extent we find bigger transactions beyond that or to the extent we grow our development platform, we will consider other sources of capital. We are very fortunate to have access to all types. That could be JV capital, which we have deployed and you can see in our results. That can be that can be more debt capital. Again, I said we are at the low end of our leverage range, and that could be equity. And we have raised equity in the past, and we will we will raise equity wisely going forward. Rest assured, what you will see us acquire will be accretive to consistent growth, accretive to a consistent quality, and most importantly, accretive to whatever source of capital we deploy at that point in time. Thank you, Jamie. Operator: Thank you. Our next question will come from Andrew Reel, with Bank of America. Andrew: Good morning. Thanks for taking my question. I guess just to go back to the FFO reconciliation, you moved a small number of leases to cash basis in the first half. Just any color on what type of tenants those were and maybe if you are anticipating any more cash basis conversions in the back half? Thanks. Michael J. Mas: Sure. Thanks, Andrew. Yes. So the noncash line item we did revise down this quarter and there is really a couple of things going on there. As you mentioned, we this is a normal part of the business. Tenants will move from accrual accounting to cash accounting. As we know, what happens when that occurs is whatever straight line rent you have accrued to that point in time gets reversed. And that is what is occurring in this quarter. To highlight that, there is 1 lease in particular. That had an outsized impact on that outcome this quarter, and that is what we are that is really what is kind of driving our revised outlook for the year. By the way, just as an aside, that lease that did convert to cash is current on their cash payments. So we are not losing any cash flow. In our core operating earnings guidance. The second element that is going on in the noncash line item is accelerated below market rent. So pardon me for getting technical. But the good news of retaining more tenants that were on our watch list, that we had provision for them departing or moving out is not occurring. What that also means is below-market rent that you would have accelerated in the income is also not occurring. So that is revised out of our non cash outlook this quarter. What does that really mean when you zoom out? Cash earnings are growing at Regency. We are retaining more tenants. Average commence occupancy continues to increase. That is also translating and amplifying through recovery income. And that is what is driving our core operating earnings guide increase of $0.03 at the midpoint. All of those indications are very positive for outlook. The non cash items are NFFO. And unfortunately, they have moved in the wrong direction on us. But those, again, are not impacting our that free cash flow number I mentioned earlier. Thank you, Andrew. Thanks. Operator: Moving next to Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Hey. Staying on the on the presentation, the 94.5 sort of commence occupancy. I think we have talked about sort of further upside from here. Can you just tell us terms of how high you think occupancy can go, specifically in line occupancy and how you guys are sort of incentivizing the team to sort of keep driving that hire? Thanks. Alan Todd Roth: Ronald, good morning. it is Alan. Appreciate the question. I have had the luxury of saying records are meant to be broken for many quarters. So I have stopped saying that and really not guiding to any how far that runway can go. Our teams are focused on great operators on quality, merchandising, and they are going to continue to keep that pedal down. When I look back at the last quarter of deals that were completed, there is a number of just great users out there that the power of the platform has come into fruition. Sourdough and Company, we signed 4 deals with them, in Oregon, Colorado, Georgia, sort of around the country where our teams are banding together on a great use there. Everbowl, a couple of deals in North Carolina and California That great concept that I would say is new, maybe it is not that new, is pop up bagels. Again, deals with them. And then if you transition into, like, the fitness sector, you have got SolidCore who is been a strong staple for us. And Pilates addiction owned by the Sequel brand, there is just some great retailers that the teams are executing on multiple deals around the country. Leveraging the platform. So they are going to continue to press forward on great users without any expectation of where ultimately it can go. From a commenced occupancy, to answer that question, we are at roughly 240-basis point SNO spread today. And if you just look back at that historic sort of stabilized number, it is 180 basis points. Ish. So that gives a little bit of context in terms of where we think that can go in terms of future runway, which we certainly have. Thanks, Ronald. Thank you. Operator: And Greg McGinnis with Scotiabank has our next question. Greg McGinniss: Hey. Thank you. Was hoping that you could give us some, maybe a little bit of color, on the acquisition environment the availability of shopping centers that kind of fit your underwriting criteria, cap rate trends, And then your use of, JVs, to acquire those, is there dry cap capitals in dry capital in these structures or mandates to spend where we could see you continue to invest there? Nicholas Andrew Wibbenmeyer: Greg, this is Nick. Good morning. We will start first with just what we are seeing in the market. The market is very active and the transaction world and we continue to see especially private capital allocate towards grocery anchor shopping centers for the same reason we are attracted to them. And so as I said in my opening remarks, that is continuing to quarter over quarter compress cap rates. And so I believe when we talked about this last quarter, I was talking, you know, mid-fives plus or minus, and we are now seeing some things trade starting with a 4. And so very aggressive capital from a core acquisition standpoint. The blessing that, we have given our business plan, as Mike already talked about, is first and foremost, we are focused on growing our development and redevelopment. Platform given the yields you can see that we are accomplishing there. And feel really confident in, our visibility to continue and the in process ones and continuing to grow that pipeline. But then as Mike also said, we do have excess capital. As you alluded to, 1 part of that is our JV capital. And so very proud of our long term partnership with state of Oregon. They have re upped, so to speak, that capital commitment. And so there is quite a bit of availability still within that partnership. And we still have capacity on our balance sheet, as Mike talked to. And so you can see this quarter, we are still active in the transaction market, but we are going to be picky. We are gonna make sure that they check all the boxes Mike spoke about earlier, which is we can fund them accretively, whether that is on balance sheet or with our partnerships. And make sure that we like the quality of the asset from quality of the trade area, quality of the tenants, and importantly, the quality of the future growth. And so when we see those opportunities and, again, very active in that world. We are just, very particular to only bounce on those to check that box. And we are doing that very effectively. Thanks, Craig. Greg McGinniss: And could you just touch on the difference in kind of the acquisition cap rate-- Sorry. Operator: Re queue for a second question. Thank you. Okay. And moving on to Todd Michael Thomas with KeyBanc Capital Markets. Todd Michael Thomas: Hi. Thanks. I wanted to ask about the Kroger, Albertsons merger. I was wondering first, can you just discuss whether there is any geographic overlap across the banners there and if any, you potential formats, I guess, could be at risk longer term. And then second, that combination there would create a new top tenant for the company, with almost 150 basis points more rent exposure than Publix. Just any considerations around that larger concentration and whether that creates any asset management sort of needs or opportunities. Lisa Palmer: Hey, Todd. it is Lisa. I think that you might be confusing Giant of Ahold with Albertsons. The merger is actually Kroger with Albertsons. Yeah. And I will let Alan touch on that. Alan Todd Roth: Yeah. Todd, Albertsons is Boise based and that is the announcement with Kroger, of which we do not own any Albertsons in our portfolio. And when you think about the 500 assets, the only overlap for us from a market perspective would be Columbus, Ohio. And again, so it is super de minimis. I think there is maybe 3 Kroger centers, you know, that have sort of some trade area overlap there. But you are not the first. there is a lot of people that see Giant and the Giant that is in Maryland, which is Ahold, as you mentioned, versus the Albertsons out of Boise. So, again, I do not think it is it is not much of a material thing for Regency. Thanks, Todd. Operator: We will go next to Michael Griffin with Evercore ISI. Michael Griffin: Greg. Thanks. Maybe sticking on that vein of grocers. 1 of your larger tenants had some cautious commentary in their recent earnings report around consumer sentiment and I think it is maybe the lower end consumers getting squeezed Maybe that is not applicable within your footprint in Regency's portfolio, but do you have a sense has either grocer health or the outlook changed at all or occupancy cost stable? And, you know, if you could just give us any insights there, that would be helpful. Lisa Palmer: Of course, Michael. Thanks. This is Lisa, obviously. Appreciate the question. I know you have heard me say this before. I have been in the business a really long time, and the grocery business has always been extremely competitive. Through decades of my experience. And it continues to be so and even more so today. And the best physical locations with the better operators are going to continue to be critical to the entire grocery sector. And you see that through all of their expansion plans, which both Alan and Nick talked about. We are seeing it in our development pipeline. With those expansion plans. I will remind you that there was even more concern pre COVID and then coming through COVID a renewed appreciation for that physical location. And the grocers understand that they need to invest in every aspect of the business from an omni channel. Standpoint, and we are seeing that happen. We so from our perspective, specifically, we have not seen anything in our portfolio or in our close relationships and conversations with our grocers, that would give us any pause or change our view of grocery whatsoever. We are in active dialogue, and while it is a really, really competitive environment, we believe that operating with owning the best real estate, operating with the best grocer banners in those markets, is a winning long term strategy. Thanks, Michael. Operator: Our next question will come from Floris Van Dijkum with Ladenburg Thalmann. Floris Van Dijkum: Hey, thanks. Congrats. Solid quarter. Again. Maybe if you could talk you mentioned your fixed rent bumps. That you are getting. I would imagine all your shop tenants have, you know, 3% or greater. Maybe talk a little bit about what you are seeing on the anchor side How successful are you in getting annual rent bumps for your anchor tenants? And are even grocers now willing to contemplate those leases? Obviously, those do not come up very often. But maybe if you can talk a little bit about your what is happening also on the on the anchor front in terms of pushing in pushing those escalators through to your tenants? Alan Todd Roth: Good morning, Floris. Appreciate the So you are right. More than 80% of our new shop leases do have 3% or more. And importantly, because we are leaning into the or more component for the quarter. Things have also certainly improved to your point on the anchor side. Is it having success on the annual escalators that we would all like to? No, I do not think the anchor side has transitioned as much as the certainly as the shop world has. However, what we are experiencing is larger rent spreads than we were seeing before. And then there is many anchor tenants that may have had 10-year even up to 20 year term flat rents. And in today's environment, you are getting those escalators in maybe 5-year increments. So there is certainly improvement We are leaning in where we can appropriately lean in but also being mindful of we want the best operator that is going to be right for our asset, right for the community, and right for further merchandising. Thanks, Floris. Operator: Moving on to Craig Mailman with Citigroup. Craig Mailman: Hey. Good morning, everyone. Lisa, I know you spent a lot of time discussing the differentiator that the development platform, has been for Regency and you guys are upping the starts this year to $400 million. I am just kind of curious. What the potential sustainability or acceleration is even from here, to put capital to work and continue to drive the value? And just kinda curious also, with cap rates falling to below 5% in some instances, How does that change your replacement cost rent math for you guys or your risk appetite there And does that free up more projects that may have been a little bit harder to pencil now that the exit value may be even better. Lisa Palmer: Hi, Craig. Appreciate the question. I will just reiterate something that you even mentioned that I have said before, and I will just and I will say it again. We see I have we have the best national development platform in the business. And I know you have heard Nick say and other and other members of our team. it is not an easy business. The reason for our success is the experience that we have on the of the team. The relationships that we have, with locally as well as nationally, and simply just the ability to execute. And we have confidence that we are able to sustain if not grow, the levels at which we have been starting projects and delivering prod and delivering will come in the future from the past several years. And the there is no question we continue to hear others have a difficult time making a pencil, but it is all of those things, cost of capital, relationships, experience that are enabling us to be successful. And I have 100% confidence that is gonna continue into the foreseeable future. Thanks, Craig. Operator: Our next question comes from Mike Mueller with JPMorgan. Michael Mueller: Yes. Just out of curiosity on the Berkeley development here in our backyard. Is that something you have been pursuing for a while and maybe could not get a plan before, or is that just more of a recent opportunity? Nicholas Andrew Wibbenmeyer: Yeah, Mike. Appreciate the question. We have been working on that project now for several years. So that is why, as Lisa alluded to, these projects are not easy. They are complicated. They do not just sort of fall out of the sky like sometimes some acquisitions do. These are you know, blood, sweat, and tears over an extended period of time. But similar to the story we have talked about in the past, it is a it is a great master plan community. it is the entrance into this master plan community. Been working with that owner for several years to come up with a site plan works for us and works for them. And, obviously, bringing another Whole Foods to Jacksonville have bringing a T.J. Maxx to St. Johns County. We are just really excited about it. So but again, it is a several-year process. And I say that to just reinforce what Lisa just said on the last question, which is just why we are bullish about our ability to continue to deliver. We have a pipeline of projects we are currently working on. That is very healthy. And we are not going to bat a thousand, but we feel really good about similar to this 1. Ultimately, bringing those things online in terms of starting them and then more importantly, delivering them as we have done. Time and time again. And so, really excited about that project and excited about the ones to come in the near future. Thank you for asking the question. Lisa Palmer: It gives me an opportunity to come over top and just reiterate because that is a that project is a great example of each 1 of the things I said. 1, fantastic team that locally is working on that project. 2, It would not have happened without the relationships that we have in this market. And 3, it would not have happened without the relationship with Whole Foods. And it is going to be an incredibly it is gonna be a great center and 1 that we will own for a very long time. Thanks, Mike. Operator: Moving next to Juan Carlos Sanabria with BMO Capital Markets. Juan Carlos Sanabria: Hi, good morning. Thanks for the time. Just curious on the acquisition front, if you guys have studied or thinking about expanding the breadth of opportunities to maybe include non anchored strips or maybe larger lifestyle or power centers, just given the compression in grocery anchor? I suspect I know the answer, but curious on the thoughts and the rationale just given the strength of the asset management team to take advantage of opportunities in those other subcategories. Nicholas Andrew Wibbenmeyer: Yeah. Appreciate the question, Juan. You can appreciate, yes, we are constantly looking at all opportunities across the spectrum of retail real estate, but we continue as Mike said earlier and I have said earlier, to really be, particular. We like our format. We like grocery anchored neighborhood shopping centers. We like best in class community shopping centers for the durability, for the merchandising, and for what we believe is the long term ability to grow rents in those shopping centers. And so that is our primary focus, as you have seen time and time again. But we are looking at whether it be adding on to our existing centers that you saw us do here with a little strip center. And so we have bought those. We continue to look at those. And when they match our strategy and we can fund them accretively, we will, move on those. As it relates to power centers, as we have talked about, the box business is a different business. And so I do not think you are gonna see us unless it is something very, very unusual moving into, the power center business. Thank you, Juan. Operator: As a final reminder, that is star 1 if you would like to ask a go next to Paulina Rojas-Schmidt with Green Street. Paulina Rojas-Schmidt: Good morning. This is a follow-up on JV. Some of your, JV deals made me wonder how you think about the tradeoffs of growing your JV partnership more aggressively benefiting from the fee income to boost yields. Versus the complexity in general around partial ownership. And I ask because we have seen other players in our space and also in other real estate industries scale this arm in an environment where in general, acquisition yields are hard to find. Lisa Palmer: I will start, and Mike can color up if I miss anything. Paulina, what as we have often said, think about JVs, we think about employing them for 3 reasons. Access to capital, access to opportunity, access to expertise. So that probably will that comes when it is a different use, perhaps. The other 2, we do not we are not in a position, say where we need access to capital. Never say never. We do appreciate the partners that we have. And, we will continue to invest in those partners maintain those relationships If there ever is a need for access to capital, access to opportunity. And as we have been acquiring with Oregon, it does help us be execute on these acquisitions on an accretive basis for the reasons that you mentioned. And Oregon is a 20 plus year partner We do still have capacity, and we will still continue to invest that capital that we have with them. To the extent of scaling further, that is something that we would always evaluate. And, again, if it checks 1 of those boxes, if it gives us access to opportunity, and that opportunity is gonna check all the boxes that Nick and Mike mentioned. Is it accretive to earnings? Is it accretive to future growth rate and agree and accretive to or equal to the quality of what we already own? that is how we think about it. Thanks, Paulina. Operator: Moving on to Michael R. Herman with BTG Pactual. Michael R. Herman: Thanks. Good morning. Lisa, you mentioned the corporate responsibility report and obviously, Regency has seen significant growth in kind of renewable energy out of the portfolio in recent years. Maybe with the national conversation and local level pretty active around power generation and electricity bills, I am just curious what the go-forward opportunity is to expand the solar program at Regency and how you think about that, not just from a corporate responsibility, but from an investment perspective. Whether it is on the expense side of Regency or services you can provide to the tenants in the communities. Maybe just some color there on where that could go in the coming years. Thank you. Lisa Palmer: I think I will probably let I will let Alan hit those tactics, but I will just reiterate that it corporate responsibility is, again, ingrained in our culture. If you look at our values on our website, we live those. Connecting to our communities, being responsible, striving for excellence, all fits our priorities as we think about corporate responsibility in which renewable energy and solar is part of that. The opportunity for that, though, I am going to let Alan Yeah. Alan Todd Roth: Mike, I would just expand upon obviously, the corporate responsibility being certainly step 1. A lot of our developments were incorporating that into right out of the ground, whether some municipalities requiring it or others that are not. And then also thinking about it from an ancillary income perspective and not just solar, but there is a various amount of things that we are thinking about. it is not a small part of our business. I mean, it is nearly $35 million a year of ancillary income, and it is growing. And it is beyond just the solar. it is the EV revenues. it is fees. it is temp deals. it is different various marketing events. And so I think it is checking a lot of boxes and something that we remain keenly focused on. Michael J. Mas: And I will just add, we do continue to invest in our solar program. You see that in the growth that is within our corporate responsibility report. We are adding new projects this year. We are underwriting new projects for future years. We are having the most success in states like Connecticut and Massachusetts and California. So we continue to grow that program. Thanks, Mike. Operator: And we have a follow-up question from Floris Van Dijkum Ladenburg Thalmann. Floris Van Dijkum: Hey, thanks for taking my added question. More on the capital allocation front and development is really, what your unique sauce in some ways I would say, about Regency. And I think, Lisa, you mentioned that a couple times on the on the call. As well. Maybe talk about you do not have a you do not seem to have a big land pipeline. How do you tie up land? Because you know, when you do development, land presumably is 1 of the biggest swing factors in whether project pencils or not. Can you maybe talk about your strategy regarding getting access to land, and how do you how do you look at that as you build your future pipeline going forward? Lisa Palmer: Floris, I am going to let Nick answer the question, but I just love that you opened the door for me to just say it 1 more time. That it really is a differentiator because we are allocating and investing our free cash flow in shopping centers that you would otherwise need to buy at market cap rates, and we are developing them and at returns that are substantial spread to that. So it is it really provides us with that visibility to future growth as we deliver these. So appreciate you recognizing it and giving me another opportunity to say it. Nicholas Andrew Wibbenmeyer: Yeah. And I will I will just add to that, Flora, specifically to your question. I appreciate you focused on that. Because if you do look at our land held, it is actually shrunk over the last couple of years as we have grown our development program. that is really because we brought some land in that we had legacy land into production, and we have not had to speculatively buy land to grow the program. And so, specifically, we are being very, very efficient in our ability to, more times than not, not close until the project from our perspective is very effectively derisked And so that means entitlements in hand. That means preleasing with our anchor, especially and even shops in many cases, hard bids in hand, and so that we feel really, really good not only about our going-in yield, as Lisa alluded, and you can see our ground-ups are 7%+, but, also delivering them at yields. So it is 1 thing to plan them at those yields. it is another thing to bring them online, which we are doing very effectively. And so to your point, we have to work with the seller and control the real estate through contracts. And so that is how we continue to work with master plan developers and other sellers We explain it in the process, and they share in some of that risk, so to speak. To maximize their land value and put it into production. So I am really proud of the team. And, again, it goes back to what Lisa reiterated, just those relationships. The success we have in the market, the relationships we have with the grocer, when we sit down with the seller, we are transparent. We tell them what is ahead of us collectively, and our track record speaks for itself. Thanks, Floris. Analyst: Thanks. Operator: And we have another follow-up question from Jamie Feldman with Wells Fargo. Jamie Feldman: Greg. Thank you. Along those lines, just thinking about some of the other construction costs, can you just give us the state of affairs of construction costs are doing across your markets for the major pieces of your projects. And then if you do not mind, medical and fitness, has been growing in the portfolio. What are your thoughts on how large that could get? In terms of total ABR? And the credit quality of those types of tenants? Thank you, Jamie. Nicholas Andrew Wibbenmeyer: We are sneaking 2 questions. I will take the first and then I will have Alan take the second. So the first in terms of cost, as you have alluded to, look, it is volatile. there is no question. Fuel prices today are very volatile. At the time we have been on this call, I have not checked, but for all I know, they have gone up or down 10%. But the really good news about our team, and as I just talked about in the previous question, our derisking of these projects is look. We have been doing this for a very long time. Forget about even decades. Just look over the last 5 or 6 years, and we have dealt with major supply chain issues, as we were building shopping centers coming out of COVID. Then came the tariff impact and the potential impact of that on our projects, and now here we are dealing with fuel price volatility. And so it is not a fun part of the construction business, but it is just the reality of the construction The volatility is always part of it. And so our teams do a excellent job of, again, bidding the majority of these costs before we even start to try to derisk it, but then carrying appropriate contingencies, and cost escalation to deal with the unknowns. Always happen. We do not know what they are. that is why they are unknowns, but we have appropriately underwritten contingencies, which is why you have seen the vast majority of our projects come in on time and on budget. We are not gonna bet a thousand. So every now and then, there is a little bit of an impact. But if you look at a blended basis, we are winning more than we are losing in terms of our underwriting and why we continue to feel confident to as much as it is not fun dealing with volatility that even through volatility, we can perform at the numbers we are showing you all. Alan Todd Roth: Jamie, on your medical and fitness question, we are at about 12% of ABR and that is up 200 basis points over the last roughly 5 years. So we certainly are leaning in more. I would tell you the medical tenants certainly tend to be stickier. And it is something that has become a bigger part of the open air shopping center arena from a fitness standpoint, look, healthy living is a very real mindset in today's environment. And so, we feel really comfortable and really confident in having fitness as something that consumers and our communities want. And it is just really about aligning with the right operators. So again, I do not have a specific target but it is something that we are clearly leaning a bit more into. Thanks, Jamie. Operator: And our next question will come from Tayo Okusanya with Deutsche Bank. Tayo Atosanya: Yes. Good morning, everyone. Lisa, while I recognize that the focus from an external growth perspective is on the development side. Curious how you are thinking on the acquisition front. I know it is been a while since you have done a large deal. Curious how you are thinking about further consolidation amongst the public names in this space. If the strategy there is really more to be selective finding onesies and twosies where they fit your bill. Lisa Palmer: Appreciate the question, Tayo. We are we are always active, and I will remind you that, last year, we it was not a merger, but we did acquire a large portfolio in Southern California, which was funded very accretively. So we are constantly evaluating the entire market. And whether and it is just that we approach it the same way, and we have always said that whether it is a single asset, a portfolio of assets like we acquired last year, or whether we are looking at a company. And we have the balance sheet to act and we have the team, to capitalize on those opportunities. When they are presented, we will be aggressive, and we will act offensively. Thanks. And this now concludes our question-and-answer session. Operator: I would like to turn the floor back over to Lisa Palmer for closing comments. Lisa Palmer: Thank you all for your time today. And happy Thursday. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. Before you buy stock in Regency Centers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Regency Centers wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Regency Centers (REG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Regency Centers has delivered a 50.1% share price gain over the past five years, and current valuation checks now suggest the stock trades at a discount to its estimated intrinsic value using a Discounted Cash Flow (DCF) approach. Over five years, Regency Centers has returned 50.1%, which puts the recent share price around US$80 in the context of steady longer term gains rather than a short term spike. Recent earnings and cash flow expectations, supported by ongoing development and redevelopment activity, can help the valuation case. However, any slowdown in rental demand or higher capital needs may pressure the intrinsic value estimate. Regency Centers screens as undervalued on both its intrinsic value estimate and earnings multiples, while scoring 3 out of 6 on broader valuation checks. This points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether the current market price already reflects this combination of long term returns and discounted valuation or if there is still a reasonable margin between price and intrinsic value. Find out why Regency Centers' 15.8% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model here uses Regency Centers’ adjusted funds from operations to estimate what its future cash generation may be worth today. On this basis, the company’s latest twelve month free cash flow is about $706.6 million, with analysts and internal estimates pointing to growing cash flows over the coming decade. When those projected cash flows are discounted back, the model points to an intrinsic value of around $107 per share. Set against a recent share price near $80, that implies Regency Centers trades at roughly a 25.0% discount to this DCF estimate, so the stock screens as undervalued. Because the company recently raised its 2026 guidance for funds from operations and same property NOI growth, the current market price still appears to sit below what these projected cash flows support. On this DCF view, Regency Centers stock appears undervalued relative to its estimated intrinsic value around $107 per share. Our Discounted Cash Flow (DCF) analysis suggests Regency Centers is undervalued by 25.0%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Regency Centers. The P/E ratio is often a useful way to assess Regency Centers because earnings are a key focus for retail REIT investors. At a current P/E of about 27.0x, Regency Centers trades very close to the Retail REITs industry average of 26.7x and slightly above the peer group average of 25.1x. That suggests the market is pricing the stock broadly in line with similar companies on reported earnings. However, the tailored fair P/E ratio from the model is higher at about 31.4x. This is the multiple that would typically align with Regency Centers’ profile when factoring in its earnings quality, size and risk characteristics. The current P/E is below this fair level, which indicates some room between what investors are currently paying and what the model suggests might be justified based on earnings. On the P/E test, Regency Centers stock appears undervalued relative to the earnings multiple the model views as fair. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Regency Centers help you connect the valuation picture above with the specific future that would need to play out for the stock to be worth materially more or materially less than today’s price. They sit on the company’s Community page. Where a single ratio or DCF output gives you one figure, these narratives spell out the growth, margin and earnings path that figure relies on so you can watch how reality compares over time. Use Narratives to put your own numbers-based view on Regency Centers' raised guidance and recent investment activity, and track how that thesis holds up as new results arrive. Add your voice to the Simply Wall St community and set out what you think the current valuation really implies for the company from here. Do you think there's more to the story for Regency Centers? Head over to our Community to see what others are saying! For Regency Centers, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple view point to an undervalued stock, even though the broader valuation checks are mixed rather than outright strong. The key question is whether rental demand and cash generation can support the cash flow path implied by that intrinsic value estimate. If those cash flows hold up and funding needs stay manageable, the current discount could look attractive. If rental conditions soften or capital requirements rise, the gap between price and estimated value may prove justified rather than an opportunity. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include REG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Same Property NOI Growth: 3.8% in the second quarter, driven primarily by base rent growth. Same Property Lease Rate: Nearly 97%. Tenant Retention Rate: 84%. Cash Rent Spreads: Above 10% in the quarter. GAAP Rent Spreads: Nearly 20%. Commenced Occupancy: Up 20 basis points in the quarter. Full Year Same Property NOI Growth Outlook: Raised by 40 basis points at the midpoint. Full Year Total NOI Growth Outlook: Mid-6% area. Full Year Core Operating Earnings Per Share Growth Outlook: Exceeding 5%. In-Process Development Pipeline: $680 million, with blended returns expected at 9%. In-Process Development Lease Rate: Nearly 80% leased. 2026 New Development and Redevelopment Starts: Expected to approach $400 million. Year-to-Date New Project Starts: More than $140 million. Leverage: Comfortably within target range of 5 to 5.5 times. Revolving Credit Facility: $1.5 billion, with nearly full availability. Warning! GuruFocus has detected 7 Warning Signs with REG. Is REG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong leasing demand and robust rent growth, with cash rent spreads above 10% and GAAP spreads of nearly 20%. Record-high leased and shop occupancy, supported by a high retention rate of 84% and a favorable supply-demand dynamic. Unique national development platform driving external growth, with a $680 million in-process pipeline delivering blended returns of 9%. Raised full-year guidance for same property NOI growth and core operating earnings per share growth exceeding 5%. Fortress balance sheet with low leverage (5-5.5x target), strong free cash flow, and nearly full availability on a $1.5 billion credit facility. Extremely competitive acquisition market with cap rates compressing, making it challenging to find accretive deals. Noncash revenue outlook reduced due to lower below-market rent amortization and higher straight-line rent reserves. A singular lease termination fee from an EV operator not opening 11 locations, impacting NAREIT FFO despite positive cash terms. Volatile construction costs, including fuel price fluctuations, posing risks to development project budgets. Potential consumer sentiment weakness among lower-end consumers, though not yet impacting Regency's portfolio. Here are the key highlights from the Regency Centers Corp (NASDAQ:REG) Q2 2026 earnings call, presented as summarized Q&A pairs. Q: Can you provide more clarity on the large lease termination fee in the back half of the year and how it impacts your revised outlook?A: Alan Roth (East Region President and COO) explained that a major EV operator decided not to open 11 locations in their portfolio. The company collected rent through the end of the year and received a termination fee equivalent to four years of rent. They are already engaged on 8 of the 11 locations for backfill. CFO Mike Mas clarified that this termination fee is excluded from the Same Property NOI metric, meaning the $0.015 guide raise in same-property NOI is purely from operational strength. Q: How high do you think occupancy can go, specifically in-line occupancy, and how are you incentivizing the team to drive it higher?A: Alan Roth (East Region President and COO) stated that records are meant to be broken, and the team is focused on quality merchandising without a specific target. He noted the current SNO (signed not yet occupied) spread is roughly 240 basis points, compared to a stabilized number of around 180 basis points, indicating significant future runway for commenced occupancy growth. Q: What is the state of the acquisition environment, cap rate trends, and your use of JVs to acquire assets?A: Nick Wibbenmeyer (West Region President and CIO) reported that the market is very active, with private capital compressing cap rates further, now seeing some trades starting with a "4". Given this, Regency is prioritizing its development and redevelopment platform for higher yields. They remain active in acquisitions but are very picky, using their JV partnership with the State of Oregon (which has re-up capital) and balance sheet capacity to fund deals that are accretive and high-quality. Q: Can you discuss the potential impact of the Kroger and Giant Eagle merger on your portfolio?A: Alan Roth (East Region President and COO) clarified that the merger is between Kroger and Giant Eagle (Pittsburgh-based), not Ahold. Regency owns no Giant Eagle properties, and the only market overlap is Columbus, Ohio, where there are roughly three Kroger centers with some trade area overlap. The impact is considered de minimis. Q: With some grocers expressing caution about consumer sentiment, has the outlook for grocer health or occupancy costs changed within your portfolio?A: Lisa Palmer (CEO) stated that the grocery business has always been extremely competitive, and the best physical locations with the best operators remain critical. She emphasized that Regency has not seen any change in their portfolio or in conversations with grocers that would give them pause. They believe owning the best real estate with the best grocer banners is a winning long-term strategy. Q: How successful are you in getting annual rent bumps for anchor tenants, and are grocers now willing to contemplate those leases?A: Alan Roth (East Region President and COO) noted that while the anchor side hasn't transitioned as much as the shop side, there is improvement. They are seeing larger rent spreads and are getting escalators in five-year increments, whereas before they might have seen 10-20 year flat rents. They are leaning in where appropriate while being mindful of securing the best operator for the asset. Q: With development starts approaching $400 million, what is the potential sustainability or acceleration of this platform, especially as cap rates compress?A: Lisa Palmer (CEO) reiterated that Regency has the best national development platform, and the team's experience, relationships, and ability to execute give them confidence to sustain or grow the current level of starts. Nick Wibbenmeyer (CIO) added that the Berkeley at Durbin Park project was a multi-year process, highlighting the complexity and the healthy pipeline of future projects they are working on. Q: How do you think about the trade-offs of growing your JV partnership more aggressively versus the complexities of partial ownership?A: Lisa Palmer (CEO) explained that Regency uses JVs for three reasons: access to capital, access to opportunity, and access to expertise. They are not in a position where they need access to capital, but they value their long-term partnership with Oregon. They will continue to invest that capital and would evaluate scaling further if it provides access to an opportunity that is accretive to earnings, future growth, and portfolio quality. Q: What is the go-forward opportunity to expand the solar program, both from a corporate responsibility and an investment perspective?A: Alan Roth (East Region President and COO) stated that corporate responsibility is step one, and they are incorporating solar into new developments. He highlighted that ancillary income, including solar, EV revenues, and fees, is nearly $35 million a year and growing. Christy McElroy (SVP of Capital Markets) added that they continue to invest in new solar projects, with the most success in states like Connecticut, Massachusetts, and California. Q: How do you tie up land for development without a large land pipeline, and what is your strategy for getting access to it?A: Nick Wibbenmeyer (West Region President and CIO) explained that their land held has shrunk because they are being very efficient. They typically do not close on land until the project is effectively derisked, meaning entitlements are in hand and pre-leasing is secured. They control real estate through contracts with master plan developers and sellers, leveraging their track record and relationships to share risk and maximize land value. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by sustained operating fundamentals and a disciplined capital allocation strategy, specifically targeting grocery-anchored suburban trade areas. Management attributes strong NOI growth to a durable tenant mix of necessity, service, and convenience retailers that remain resilient across economic cycles. The national ground-up development program is cited as a primary differentiator, allowing the company to build premier centers at yields representing substantial spreads to market cap rates. Leasing demand remains robust due to limited new supply and a scarcity of high-quality available space, providing management significant leverage in rent negotiations. Operational success is further supported by a healthy tenant base with accounts receivables remaining below historical averages and steady increases in foot traffic. The company's strategy focuses on the intersection of convenience and value, benefiting from both consumer 'trade up' and 'trade down' behaviors. Full-year forecasts for same-property and total NOI growth were raised based on enhanced visibility into second-half tenant activity and higher commenced occupancy expectations. Management expects core operating earnings per share growth to exceed 5% for the full year. The company has increased its target for new development and redevelopment starts in 2026 to approach $400 million. Guidance assumes the continued successful conversion of the SNO (Signed Not Open) pipeline into rent-paying tenants, which remains a key driver for future NOI upside. The investment strategy remains opportunistic regarding acquisitions, prioritizing development yields over market-priced asset purchases in a competitive transaction environment. A singular lease termination fee from an EV operator will contribute to higher term fees in Q3; the company received 4 years of rent as a fee while retaining the ability to backfill 8 of 11 locations. Non-cash revenue outlook was revised downward due to lower below-market rent amortization and higher straight-line rent reserves, though management noted this does not impact cash flow. The company maintains an A-rated balance sheet with leverage at the lower end of its 5 to 5.5x target range, providing significant liquidity for the investment pipeline. Management highlighted that while construction costs remain volatile due to fuel and supply chain factors, projects are derisked through pre-leasing and hard-bid contracts before commencement. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the termination fee is excluded from same-property NOI metrics but included in core operating earnings and FFO raises. The company is already engaged on backfilling 8 of the 11 locations and will collect rent through the end of the year in addition to the termination fee. Cap rates for high-quality grocery-anchored centers have compressed significantly, with some core assets trading in the 4% range. Regency is being 'picky' with acquisitions, treating them as opportunistic rather than required, given the superior yields available through their own development platform. Management expressed 100% confidence in sustaining or growing these levels, citing deep local relationships and a track record of executing complex entitlements. The strategy involves controlling land through contracts and only closing once projects are derisked with anchor tenants and hard construction bids. Medical and fitness now represent approximately 12% of Annual Base Rent (ABR), an increase of 200 basis points over the last 5 years. Medical tenants are viewed as particularly 'sticky,' while fitness aligns with the modern consumer's 'healthy living' mindset.

Interested in Regency Centers Corporation? Here are five stocks we like better. Strong operating performance: Same-property NOI rose 3.8%, leased occupancy approached 97%, retention reached 84%, and cash rent spreads exceeded 10%. Regency raised its outlook for same-property NOI and expects full-year core operating EPS growth above 5%. Development pipeline expanded: The in-process development pipeline totaled $680 million, was nearly 80% leased and expected to generate blended returns of about 9%. Regency now expects 2026 development and redevelopment starts to approach $400 million. Financial flexibility remains solid: The A-rated balance sheet had leverage at the low end of its 5.0–5.5x target range, with projected 2025 free cash flow of $180 million to $190 million and nearly full availability on its $1.5 billion credit facility. Management remains selective on acquisitions amid intense competition and low cap rates. Amylyx Stock: Why the Full Pipeline Story Matters Regency Centers (NASDAQ:REG) reported second-quarter operating momentum marked by higher occupancy, rent growth and an expanded development pipeline, prompting the grocery-anchored shopping center owner to raise elements of its full-year outlook. Chief Executive Officer Lisa Palmer said the company generated strong net operating income, or NOI, and earnings growth during the quarter, supported by leasing demand, its tenant mix and capital allocation across development, redevelopment and acquisitions. She said Regency now expects core operating earnings per share growth to exceed 5% for the full year. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Ozempic, Mounjaro, Wegovy, or Zepbound? This ETF Holds Them All East Region President and Chief Operating Officer Alan Roth said same-property NOI increased 3.8% in the second quarter, primarily driven by base-rent growth. The company’s same-property leased rate approached 97%, while commenced occupancy rose 20 basis points during the quarter. Roth said Regency’s retention rate was 84%, while cash rent spreads exceeded 10% and GAAP rent spreads were nearly 20%. The company continued to include annual rent escalators in nearly all newly signed leases, which Roth described as an important source of future base-rent growth. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Pfizer Adds to Its Big Bet on Weight Loss Drugs Leasing demand remained broad across grocery, health and wellness, restaurants, personal services and value-oriented retail, according to Roth. He said limited availability of quality retail space has strengthened Regency’s negotiating position with tenants. “Tenant sales growth is widespread throughout the portfolio, foot traffic is showing steady increases, and accounts receivables remain below historical averages,” Roth said, describing the tenant base as healthy. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company’s spread between leased and commenced occupancy, or its signed-not-open pipeline, stood at roughly 240 basis points. Roth said historical stabilized levels have been closer to 180 basis points, indicating additional runway for occupancy gains as signed tenants begin paying rent. Regency raised its expectations for 2026 development and redevelopment starts and now expects them to approach $400 million. Year to date, the company has begun more than $140 million of new projects. One second-quarter project was The Berkeley at Durbin Park, a $55 million ground-up development in a Jacksonville, Florida, suburb. The project is expected to be anchored by Whole Foods and TJ Maxx. Chief Investment Officer Nick Wibbenmeyer said Regency’s $680 million in-process development pipeline is nearly 80% leased and is expected to generate blended returns of 9%. He also cited early openings at Trader Joe’s at Golden Hills in Central California and Kroger at Westchester Plaza in Cincinnati. Management emphasized that the development platform allows Regency to build shopping centers at returns that exceed market acquisition cap rates, rather than relying exclusively on asset purchases for external growth. Palmer said the company has confidence it can sustain or grow its development activity based on its local and national relationships, execution experience and access to capital. Wibbenmeyer said Regency has reduced its land held for future development in recent years while expanding its development program. He said the company generally seeks to control sites through contracts and delay closing until projects have been substantially de-risked through entitlements, anchor preleasing and construction bids. Chief Financial Officer Mike Mas said Regency increased the midpoint of its same-property NOI growth outlook by 40 basis points, driven by higher expectations for commenced occupancy and stronger expense recoveries following annual reconciliations. The revised outlook calls for total NOI growth in the mid-6% range and core operating earnings-per-share growth above 5%. Mas said lease termination fees are excluded from Regency’s same-property NOI metric. A major electric-vehicle operator decided not to open 11 locations that had been part of a package deal, Roth said. Regency will collect rent through year-end and received a termination fee equal to four years of rent, while it is already pursuing replacement tenants for eight of the 11 spaces. The company also reduced its outlook for non-cash revenue, reflecting lower below-market rent amortization and higher straight-line rent reserves. Mas said one lease conversion to cash accounting had an outsized impact, although the tenant remains current on cash payments. He said the changes do not reduce Regency’s cash-flow outlook. Regency’s balance sheet remains A-rated, with leverage at the lower end of its 5 times to 5.5 times target range, according to Mas. The company projected free cash flow of roughly $180 million to $190 million this year and said it had nearly full availability under its $1.5 billion revolving credit facility. Management said the acquisition market remains active and competitive, particularly for grocery-anchored shopping centers. Wibbenmeyer said cap rates that had been in the mid-5% range are now, in some cases, beginning with a 4, reflecting aggressive private-capital demand. Regency said it will remain selective on acquisitions, prioritizing trade-area quality, tenant quality, future growth potential and accretive financing. The company has capacity to use balance-sheet capital, debt, equity and joint ventures when appropriate. Palmer said joint ventures are evaluated based on whether they provide access to capital, opportunities or expertise. Regency continues to have capacity with its long-term Oregon partnership, she said. On grocery retail, Palmer said Regency has not seen developments in its portfolio or discussions with grocer tenants that would alter its long-term view of the sector. Management also clarified that Kroger’s announced transaction with Giant Eagle has minimal implications for Regency because the company does not own Giant Eagle locations and has only limited potential market overlap in Columbus, Ohio. Regency Centers Corporation is a publicly traded real estate investment trust (REIT) specializing in the ownership, operation and development of grocery-anchored shopping centers. Focused on everyday needs retail, the company's portfolio is strategically concentrated in high-growth, densely populated markets across the United States. By aligning its properties with essential retailers, Regency Centers delivers stable income streams and drives sustained value for shareholders. Founded in 1963 and headquartered in Jacksonville, Florida, Regency Centers began as a single shopping center developer before evolving into one of the largest owners of grocery-center real estate. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Regency Centers Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

JACKSONVILLE, Fla., July 29, 2026 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency Centers,” “Regency” or the “Company”) (Nasdaq: REG) today reported financial and operating results for the period ended June 30, 2026, and provided updated 2026 earnings guidance. For the three months ended June 30, 2026 and 2025, Net Income Attributable to Common Shareholders was $0.61 and $0.56, respectively, per diluted share. Second Quarter 2026 Highlights Reported Nareit Funds From Operations ("FFO") of $1.21 per diluted share and Core Operating Earnings of $1.16 per diluted share Increased quarterly Same Property Net Operating Income ("NOI") year-over-year by 3.8% Raised full year 2026 Nareit FFO guidance to a range of $4.84 to $4.88 per diluted share and 2026 Core Operating Earnings guidance to a range of $4.62 to $4.66 per diluted share The midpoint of 2026 Core Operating Earnings guidance now represents year-over-year growth exceeding 5% Raised full year 2026 guidance for Same Property NOI growth to a range of 3.7% to 4.1% year-over-year Same Property percent leased ended the quarter at 96.9%, up 40 basis points year-over-year, and Same Property percent commenced ended the quarter at 94.5%, up 50 basis points year-over-year Executed 2.1 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of 10.4% on a cash basis and 19.5% on a straight-lined basis Started $68 million of ground-up development and redevelopment projects As of June 30, 2026, Regency's in-process development and redevelopment projects had estimated net project costs of $680 million at a blended estimated yield of approximately 9% Acquired one shopping center and two outparcels for a total of approximately $48 million, or $19 million at Regency's share Pro-rata net debt and preferred stock to TTM operating EBITDAre at June 30, 2026 was 5.0x Issued the Company's annual Corporate Responsibility report, highlighting achievements and progress within our corporate responsibility program Subsequent to quarter end, acquired two shopping centers for $101 million, or $42 million at Regency's share “Our team delivered another excellent quarter, highlighted by strong earnings and NOI growth, robust tenant demand, and continued momentum across our investments platform,” said Lisa Palmer, President and Chief Executive Officer. “These results reflect the strength of our strategy, anchored by our high-quality portfolio, leading national development program, fortress balance sheet and exceptional team. Together, these position us to drive attractive, sustainable growth and long-term value for our shareholders.” Financial Results Net Income Attributable to Common Shareholders For the three months ended June 30, 2026, Net Income Attributable to Common Shareholders was $112.4 million, or $0.61 per diluted share, compared to Net Income Attributable to Common Shareholders of $102.6 million, or $0.56 per diluted share, for the same period in 2025. Nareit FFO For the three months ended June 30, 2026, Nareit FFO was $226.3 million, or $1.21 per diluted share, compared to $212.1 million, or $1.16 per diluted share, for the same period in 2025. Core Operating Earnings For the three months ended June 30, 2026, Core Operating Earnings was $217.7 million, or $1.16 per diluted share, compared to $202.2 million, or $1.10 per diluted share, for the same period in 2025. Portfolio Performance NOI Second quarter 2026 Same Property NOI increased by 3.8% compared to the same period in 2025. Second quarter 2026 NOI increased by 6.8% compared to the same period in 2025. Occupancy As of June 30, 2026, Regency’s Same Property portfolio was 96.9% leased, an increase of 30 basis points sequentially and an increase of 40 basis points compared to June 30, 2025. As of June 30, 2026, Regency’s Same Property portfolio was 94.5% commenced, an increase of 20 basis points sequentially and an increase of 50 basis points compared to June 30, 2025. Leasing Activity During the three months ended June 30, 2026, Regency executed approximately 2.1 million square feet of comparable new and renewal leases at a blended cash rent spread of +10.4% and a blended straight-lined rent spread of +19.5%. During the twelve months ended June 30, 2026, Regency executed approximately 7.1 million square feet of comparable new and renewal leases at a blended cash rent spread of +11.8% and a blended straight-lined rent spread of +22.7%. Corporate Responsibility On May 28, 2026, Regency issued its annual Corporate Responsibility Report, demonstrating the Company’s continued leadership in and commitment to corporate responsibility as a key component of our business strategy and performance. The report can be found in the Corporate Responsibility section of the Company's website. Capital Allocation and Balance Sheet Developments and Redevelopments For the three months ended June 30, 2026, the Company started ground-up development and redevelopment projects with estimated net project costs of approximately $68 million, at the Company's share. For the three months ended June 30, 2026, the Company completed approximately $20 million of redevelopment projects. As of June 30, 2026, Regency’s in-process development and redevelopment projects had estimated net project costs of $680 million at the Company’s share, 49% of which had been incurred. Property Transactions On June 11, 2026, the Company acquired Shops at Highland Walk in Denver, CO, a 95,000 square foot shopping center anchored by King Soopers. Subsequent to quarter end, on July 8, 2026, the Company acquired Franklin Crossing in Franklin Lakes, NJ, an 88,000 square foot shopping center anchored by Stop & Shop, for $27 million. Subsequent to quarter end, on July 14, 2026, the Company acquired Cornerstone at Westford in Westford, MA, a 236,000 square foot shopping center anchored by Market Basket. Balance Sheet As of June 30, 2026, Regency had approximately $1.5 billion of available capacity under its revolving credit facility. As of June 30, 2026, Regency’s pro-rata net debt and preferred stock to TTM operating EBITDAre was 5.0x. 2026 Guidance Regency Centers is providing updated 2026 Guidance, as summarized in the table below. Please refer to the Company’s second quarter 2026 "Earnings Presentation" and "Quarterly Supplemental Disclosure" for additional detail. All materials are posted on the Company’s website at investors.regencycenters.com. 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. Conference Call Information To discuss Regency’s second quarter results and provide further business updates, management will host a conference call on Thursday, July 30 at 11:00 a.m. ET. Dial-in and webcast information is below. Second Quarter 2026 Earnings Conference Call 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) (1)  Includes Regency's consolidated entities and its share of unconsolidated real estate partnerships, net of share attributable to noncontrolling interests. (2)  Includes the impact of uncollectible straight-line rent of $912 and $744 for the three months ended June 30, 2026 and 2025, respectively, and $3,092 and $1,120 for the six months ended June 30, 2026 and 2025, respectively.Reconciliation of Net Income Attributable to Common Shareholders to Pro-Rata Same Property NOI - Actual (in thousands) (1)  Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interests. (2)  Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, such as, but not limited to, straight-line rental income, above and below market rent amortization, depreciation and amortization, interest expense, and real estate gains and impairments. (3)  Includes revenues and expenses attributable to Non-Same Property, Property in Development, termination fees, corporate activities, and noncontrolling interests. Same Property NOI is a key non-GAAP pro-rata measure used by management in evaluating the operating performance of Regency’s properties. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Same Property NOI. Reported results are preliminary and not final until the filing of the Company’s Form 10-Q with the SEC and, therefore, remain subject to adjustment. The Company has published additional financial information in its second quarter 2026 supplemental package that may help investors estimate earnings. A copy of the Company’s second quarter 2026 supplemental package will be available on the Company's website at investors.regencycenters.com or by written request to: Investor Relations, Regency Centers Corporation, One Independent Drive, Suite 114, Jacksonville, Florida, 32202. The supplemental package contains more detailed financial and property results including financial statements, an outstanding debt summary, acquisition and development activity, investments in partnerships, information pertaining to securities issued other than common stock, property details, a significant tenant rent report and a lease expiration table in addition to earnings and valuation guidance assumptions. The information provided in the supplemental package is unaudited and includes non-GAAP measures, and there can be no assurance that the information will not vary from the final information in the Company’s Form 10-Q for the period ended June 30, 2026. Regency may, but assumes no obligation to, update information in the supplemental package from time to time. Non-GAAP Financial Measures We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We do not consider non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP, rather they supplement GAAP measures by providing additional information we believe to be useful to our shareholders. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures we use to their most directly comparable GAAP measures are provided. Non-GAAP financial measures should not be relied upon in evaluating the financial condition, results of operations or future prospects of the Company. Nareit FFO is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts (“Nareit”) defines as net income, computed in accordance with GAAP, excluding gains on sales and impairments of real estate, net of tax, plus depreciation and amortization related to real estate, and after adjustments for unconsolidated real estate partnerships and joint ventures. Regency computes Nareit FFO for all periods presented in accordance with Nareit's definition. Since Nareit FFO excludes depreciation and amortization and gains on sales and impairments of real estate, it provides a performance measure that, when compared year over year, reflects the impact on operations from trends in percent leased, rental rates, operating costs, acquisition and development activities, and financing costs. This provides a perspective of the Company’s financial performance not immediately apparent from net income determined in accordance with GAAP. Thus, Nareit FFO is a supplemental non-GAAP financial measure of the Company's operating performance, which does not represent cash generated from operating activities in accordance with GAAP; and, therefore, should not be considered a substitute measure of cash flows from operations. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO. Core Operating Earnings is an additional non-GAAP performance measure that adjusts Nareit Funds from Operations (“Nareit FFO”) to exclude certain non-cash and other items that impact the comparability of the Company's period-over-period performance. Core Operating Earnings excludes from Nareit FFO: (i) certain income or expenses related to non-comparable events and transactions; (ii) gains or losses from the early extinguishment of debt; (iii) certain non-cash items derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization; and (iv) other non-cash or non-comparable amounts as they occur. Adjusted Funds From Operations (“AFFO”) is an additional performance measure used by Regency that reflects cash available to fund the Company’s business needs and distribution to shareholders. AFFO is calculated by adjusting Core Operating Earnings ("COE") for (i) capital expenditures necessary to maintain and lease the Company’s portfolio of properties, (ii) debt cost and derivative adjustments and (iii) stock-based compensation. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO, to Core Operating Earnings, and to Adjusted Funds from Operations. Net Operating Income (NOI) is the sum of base rent, percentage rent, termination fee income, tenant recoveries, other lease income, and other property income, less operating and maintenance expenses, real estate taxes, ground rent, termination expense, and uncollectible lease income. NOI excludes straight-line rental income and expense, above and below market rent and ground rent amortization, tenant lease inducement amortization, and other fees. Management believes that NOI is a useful measure for investors because it provides insight into the core operations and performance of our properties, independent of the capital structure, financing activities, and non-operating factors. By focusing on property-level performance, NOI allows investors to compare the performance of our real estate assets across periods and with those of other REIT peers in the industry, facilitating a clearer understanding of trends in occupancy, rental income, and operating expense management. In addition to its relevance for investors, management uses NOI as a key performance metric in making operational and strategic decisions. NOI is used to evaluate income generated from shopping centers (i.e., return on assets) and to guide decisions on capital investments. These decisions may include acquisitions, redevelopments, and investments in capital improvements. Pro-rata information: includes 100% of the Company’s consolidated properties plus its economic share (based on the ownership interest) in the unconsolidated real estate investment partnerships. The Company provides Pro-rata financial information because Regency believes it assists investors and analysts in estimating the economic interest in the consolidated and unconsolidated real estate investment partnerships, when read in conjunction with the Company’s reported results under GAAP. The Company believes presenting its Pro-rata share of assets, liabilities, operating results, and other metrics, along with certain other non-GAAP financial measures, makes comparisons of its operating results to those of other REITs more meaningful. The Pro-rata information provided is not, nor is it intended to be, presented in accordance with GAAP. The Pro-rata supplemental details of assets and liabilities and supplemental details of operations reflect the Company’s proportionate economic ownership of the assets, liabilities, and operating results of the properties in our portfolio. The Pro-rata information is prepared on a basis consistent with the comparable consolidated amounts and is intended to more accurately reflect the Company’s proportionate economic interest in the assets, liabilities, and operating results of properties in its portfolio. The Company does not control the unconsolidated real estate partnerships, and the Pro-rata presentations of the assets and liabilities, and revenues and expenses do not represent our legal claim to such items. The partners are entitled to profit or loss allocations and distributions of cash flows according to the operating agreements, which generally provide for such allocations according to their invested capital. The Company’s share of invested capital establishes the ownership interests Regency uses to prepare its Pro-rata share. The presentation of Pro-rata information has limitations which include, but are not limited to, the following: The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and Other companies in our industry may calculate their Pro-rata interest differently, limiting the comparability of Pro-rata information. Because of these limitations, the Pro-rata financial information should not be considered independently or as a substitute for the financial statements as reported under GAAP. The Company compensates for these limitations by relying primarily on our GAAP financial statements, using the Pro-rata information as a supplement. Same Property NOI is a key non-GAAP financial measure commonly used by real estate investment trusts (REITs) to evaluate operating performance. It is calculated on a Pro-rata ownership basis for properties owned and operated for the entirety of both the current and prior comparable reporting periods. Same Property NOI includes revenues and operating expenses associated with these properties but excludes items that are not indicative of ongoing operating performance. These include, without limitation, termination fees, as well as corporate-level expenses, financing costs, and other non-operating items. Management believes this measure provides investors with a useful and consistent comparison of the Company’s operating performance and trends. Management uses Same Property NOI as a supplemental measure to assess property-level performance and to compare the performance of its stabilized property portfolio across reporting periods. This measure allows investors to evaluate trends in revenue and expense growth for properties that have been consistently operated during the periods. Forward-Looking Statements Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Regency’s future events, developments, or financial or operational performance or results such as our current 2026 guidance, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws.  These forward-looking statements are identified by the use of words such as “may,” “will,” “could,” “should,” “would,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “project,” “plan,” “anticipate,” “guidance,” and other similar language.  However, the absence of these or similar words or expressions does not mean a statement is not forward-looking.  While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained, and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Our operations are subject to a number of risks and uncertainties including, but not limited to, those risk factors described in our Securities and Exchange Commission (“SEC”) filings, our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) under Item 1A, as supplemented by the discussion in Item 1A of Part II of our subsequent Quarterly Reports on Form 10-Q.  When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings and submissions to the SEC. If any of the events described in the risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected. Forward-looking statements are only as of the date they are made, and Regency undertakes no duty to update its forward-looking statements, whether as a result of new information, future events or developments or otherwise, except as to the extent required by law. These risks and events include, without limitation: Risk Factors Related to the Current Economic and Geopolitical Environments Macroeconomic, political, and geopolitical conditions and governmental policies may adversely impact consumer confidence and spending and the businesses of our tenants and could, in turn, adversely impact our business. Changes in interest rates may adversely impact our cost to borrow, real estate valuation, stock price, and ability to raise capital through issuance of debt and equity. Unfavorable developments that may affect the banking and financial services industry could adversely affect our business, liquidity and financial condition, and overall results of operations. Risk Factors Related to Pandemics or other Public Health Crises Pandemics or other public health crises may adversely affect our tenants' financial condition, the profitability of our properties, and our access to the capital markets and could have a material adverse effect on our business, results of operations, cash flows and financial condition. Risk Factors Related to Operating Retail-Based Shopping Centers Shifts in retail trends, sales, and delivery methods between brick and mortar stores, e-commerce, home delivery, and curbside pick-up, as well as autonomous delivery systems, may adversely impact our revenues, results of operations, and cash flows. Changing economic and retail market conditions in geographic areas where our properties are concentrated may reduce our revenues and cash flow. Our success depends on the continued presence and success of our "anchor" tenants. A percentage of our revenues are derived from "local" tenants and our net income may be adversely impacted if these tenants are not successful, or if the demand for the types or mix of tenants significantly change. We may be unable to collect balances due from tenants in bankruptcy. Many of our costs and expenses associated with operating our properties may remain constant or increase, even if our lease income decreases. Compliance with the Americans with Disabilities Act and other building, fire, and safety regulations may have an adverse effect on us. Risk Factors Related to Real Estate Investments Our real estate assets may decline in value and be subject to impairment losses which may reduce our net income. We face risks associated with development, redevelopment, and expansion of properties. We face risks associated with the development of mixed-use commercial properties. We face risks associated with the acquisition of properties. We may be unable to sell properties when desired because of market conditions. Changes in tax laws could impact our acquisition or disposition of real estate. Risk Factors Related to the Environment Affecting Our Properties Climate change may adversely impact our properties, some of which may be more vulnerable due to their geographic location, and may lead to additional compliance obligations and costs. Costs of environmental remediation may adversely impact our financial performance and reduce our cash flow. Risk Factors Related to Corporate Matters An increased and differing focus on metrics and reporting related to environmental, social and governance ("ESG") factors by investors, lenders and other stakeholders may impose additional costs and expose us to new risks. An uninsured loss or a loss that exceeds the insurance coverage on our properties may subject us to loss of capital and revenue on those properties. Failure to attract and retain key personnel may adversely affect our business and operations. Risk Factors Related to Our Partnerships and Joint Ventures We do not have voting control over all of the properties owned in our real estate partnerships and joint ventures, so we are unable to ensure that our objectives will be pursued. The termination of our partnerships may adversely affect our cash flow, operating results, and our ability to make distributions to stock and unit holders. Risk Factors Related to Funding Strategies and Capital Structure Our ability to sell properties and fund acquisitions and developments may be adversely impacted by higher market capitalization rates and lower NOI at our properties which may adversely affect results of operations and financial condition. We depend on external sources of capital, which may not be available in the future on favorable terms or at all. Our debt financing may adversely affect our business and financial condition. Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition. Increases in interest rates would cause our borrowing costs to rise and negatively impact our results of operations. Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us. Risk Factors Related to Information Management and Technology The unauthorized access, use, theft or destruction of tenant or employee personal, financial or other data, or of Regency's proprietary or confidential information stored in our information systems or by third parties on our behalf, could impact operations, and expose us to potential liabilities and material adverse financial impact. Any actual or perceived failure to comply with new or existing laws, regulations and other requirements relating to the privacy, security and processing of personal information could adversely affect our business, results of operations, or financial condition. The use of technology based on artificial intelligence presents risks relating to confidentiality, creation of inaccurate and flawed outputs and emerging regulatory risk, any or all of which may adversely affect our business and results of operations. Risk Factors Related to Taxes and the Parent Company’s Qualification as a REIT If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates. Dividends paid by REITs generally do not qualify for reduced tax rates. Legislative or other actions affecting REITs may have a negative effect on us or our investors. Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities. Partnership tax audit rules could have a material adverse effect. Risk Factors Related to the Company’s Stock Restrictions on the ownership of the Parent Company’s capital stock to preserve its REIT status may delay or prevent a change in control. The issuance of the Parent Company's capital stock may delay or prevent a change in control. Ownership in the Parent Company may be diluted in the future. The Parent Company’s amended and restated bylaws provide that the courts located in the State of Florida will be the sole and exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.  There is no assurance that we will continue to pay dividends at current or historical rates. Kathryn McKie904 598 [email protected] This press release was published by a CLEAR® Verified individual.

Regency Centers Corp. REG is slated to report second-quarter 2026 results on July 29, after the closing bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share. In the last reported quarter, this Jacksonville, FL-based retail real estate investment trust’s (REIT) NAREIT FFO per share of $1.20 missed the Zacks Consensus Estimate of $1.21. Results reflected a year-over-year improvement in same-property NOI driven by strong leasing. Over the trailing four quarters, the company’s FFO per share exceeded the Zacks Consensus Estimate on two occasions and met on the other two, with the average beat being 0.69%. This is depicted in the graph below: Regency Centers Corporation price-eps-surprise | Regency Centers Corporation Quote In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance. The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed. Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory. Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Even so, rents in the South advanced 3.3% year over year, the strongest growth among all regions. Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4% excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories. Considering the above scenario, Regency Centers’ second-quarter 2026 performance is likely to have benefited from its grocery-anchored portfolio, resilient foot traffic and strong tenant demand. First-quarter foot traffic rose 2.3% and accelerated to 3% in April, while bad debt remained near record lows. Demand from grocers, restaurants, health and wellness concepts, and off-price retailers is likely to have supported occupancy, rents and leasing spreads. Regency’s more than $600 million development and redevelopment pipeline, carrying blended returns above 9%, may have boosted total NOI growth. The company maintained full-year same-property NOI growth guidance of 3.25%-3.75% and total NOI growth above 6%, backed by project deliveries, prior acquisitions and a strong balance sheet. However, management expected second-quarter same-property NOI growth to fall below the full-year range because of a tougher expense comparison. The Zacks Consensus Estimate for REG’s second-quarter revenues is pegged at $404.99 million, indicating a 6.3% increase from the year-ago quarter. The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The consensus mark for quarterly FFO per share has remained unchanged at $1.20 over the past three months. The figure implies growth of 3.45% from the prior-year quarter’s reported number. Our proven model predicts a surprise in terms of FFO per share for Regency this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here. Regency currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two other stocks from the retail REIT sector — Kimco Realty KIM and Simon Property Group SPG — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter. Kimco Realty, slated to release quarterly numbers on Aug. 4, has an Earnings ESP of +0.63% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regency Centers Corporation (REG) : Free Stock Analysis Report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Kimco Realty Corporation (KIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research