Regency Centers Corporation REG reported fourth-quarter 2023 NAREIT funds from operations (FFO) per share of $1.02, in line with the Zacks Consensus Estimate. However, the figure decreased 2.9% from the prior-year quarter’s $1.05.

Total revenues of $359.6 million increased 14.3% from the year-ago period. The figure outpaced the Zacks Consensus Estimate of $350.6 million.

Results reflect a better-than-anticipated top line, aided by healthy leasing activity and a year-over-year improvement in the base rent. The company also issued its 2024 outlook.

For the full-year 2023, Regency Centers’ NAREIT FFO per share came in at $4.15, up from the year-ago tally of $4.10, in line with the Zacks Consensus Estimate. Total revenues of $1.32 billion were increased 8% from a year ago.

Behind the Headlines

In the fourth quarter, Regency Centers executed approximately 2.1 million square feet of comparable new and renewal leases at a blended cash rent spread of 11.7%.

As of Dec 31, 2023, REG’s same-property portfolio was 95.7% leased, reflecting an expansion of 30 basis points (bps) sequentially and 60 bps year over year.

The same-property anchor percent leased (includes spaces greater than or equal to 10,000 square feet) was 97.1%, which increased 40 bps sequentially and 10 bps year over year.

The same-property shop percent leased (includes spaces less than 10,000 square feet) was 93.4%, which rose 20 bps sequentially and 150 bps year over year.

The same-property net operating income (NOI), excluding lease termination fees, increased 0.7% on a year-over-year basis to $225.6 million. Same-property base rents contributed 3.2% to same-property NOI growth in the quarter.

As of Dec 31, 2023, Regency Centers’ in-process development and redevelopment projects estimated net project costs of around $468 million at the company’s share. So far, it has incurred 45% of the cost.

Balance Sheet

The company ended the fourth quarter of 2023 with cash, cash equivalents and restricted cash of $91.4 million, up from $68.8 million as of Dec 31, 2022.

As of Dec 31, 2023, this retail REIT had nearly $1.1 billion of capacity under its revolving credit facility. As of the same date, its pro-rata net debt-to-operating EBITDAre was 5.4X on a trailing 12-month basis.

Dividend Update

On Feb 7, Regency Centers’ board of directors declared a quarterly cash dividend payment on its common stock of 67 cents. The dividend will be paid out on Apr 3, 2024, to its shareholders of record as of Mar 13, 2024.

2024 Outlook

Regency Centers provided the initial 2024 guidance. The 2024 NAREIT FFO per share is expected in the range of $4.14-$4.20. The Zacks Consensus Estimate is presently pegged at $4.19, within the guided range.