Maintaining fixed growth scenario: Regency Centers Corporation (NASDAQ: REG)

On 11 March 2020, Regency Centers Corporation (NASDAQ: REG) spotted trading -21.22% off 52-week high price. On the other end, the stock has been noted 0.91% away from the low price over the last 52-weeks. The stock changed -4.54% to recent value of $55.35. The stock transacted 2340283 shares during most recent day however it has an average volume of 1038.85K shares. The company has 171.24M of outstanding shares and 165.71M shares were floated in the market.

Regency Centers Corporation recently stated financial and operating results for the period ended December 31, 2019.

Fourth Quarter and Full Year 2019 Highlights

For the three months ended December 31, 2019, Net Income Attributable to Ordinary Stockholders (“Net Income”) of $0.24 per diluted share.

Fourth quarter NAREIT Funds From Operations (“NAREIT FFO”) of $1.00 per diluted share.

Year-to-date same property Net Operating Income (“NOI”), not including termination fees, increased 2.1%, as contrast to the same period in 2018.

As of December 31, 2019, the same property portfolio was 95.1% leased.

Fourth quarter total comparable leasing volume of 1.8M square feet of new and renewal leases, with total rent spreads of 11.3%.

On a trailing twelve months basis, rent spreads on comparable new and renewal leases were 13.1% and 7.4%, respectively, with total rent spreads of 8.5%.

During the fourth quarter, Regency sold three shopping centers for a combined sales price of $58.8M.

For the full year 2019, the Company started nearly $265M of developments and redevelopments and completed $230M at a projected stabilized yield of 7.2%.

During the quarter, Regency was included in Newsweek’s inaugural America’s Most Responsible Companies 2020 list. The Company was named as one of the Top 10 companies in the Real Estate and Housing sector.

On February 4, 2020, Regency’s Board of Directors (the “Board”) reported a quarterly cash dividend on the Company’s ordinary stock of $0.595 per share, representing an annualized increase of 1.7%.

Financial Results

Regency stated Net Income for the fourth quarter of $40.3M, or $0.24 per diluted share, contrast to Net Income of $78.9M, or $0.46 per diluted share, for the same period in 2018. For the twelve months ended December 31, 2019, Net Income was $239.4M, or $1.43 per diluted share, contrast to $249.1M, or $1.46 per diluted share, for the same period in 2018.  Net Income in the fourth quarter of 2019 included an impairment charge of $40.3M, or $0.24 per diluted share, recognized on the 101 7th Avenue asset, which is occupied by a single retail tenant, Barneys New York, that filed bankruptcy and is predictable to terminate its lease in February 2020. As a result, the Company reassessed the predictable hold period of the property as well as its highest and best use, resulting in a reduction of the carrying value to its estimated fair value.

The Company stated NAREIT FFO for the fourth quarter of $168.5M, or $1.00 per diluted share, contrast to $167.2M, or $0.98 per diluted share, for the same period in 2018. For the twelve months ended December 31, 2019, NAREIT FFO was $654.4M, or $3.89 per diluted share, contrast to $652.9M, or $3.83 per diluted share, for the same period in 2018.  For the twelve months ended December 31, 2019, results include a charge of $12.0M, or $0.07 per share, related to an early extinguishment of debt. For the twelve months ended December 31, 2018, results include a charge of $11.2M, or $0.07 per share, related to an early extinguishment of debt and income of $6.7M, or $0.04 per share, related to gains on land sales.

The Company stated Core Operating Earnings for the fourth quarter of $152.9M, or $0.91 per diluted share, contrast to $149.9M, or $0.88 per diluted share, for the same period in 2018. Core Operating Earnings per share growth was 3.4% for the fourth quarter and 4.3% year-to-date when adjusted for the adoption of Accounting Standard Codification 842, Leases. The Company views Core Operating Earnings, which excludes from NAREIT FFO certain non-recurring items as well as non-cash components of earnings derived from above and below market rent amortization, straight-line rents, and amortization of debt mark-to-market, as a better measure of business performance as it more closely reflects cash earnings and the Company’s ability to grow the dividend.

 Its earnings per share (EPS) expected to touch remained -2.60% for this year while earning per share for the next 5-years is expected to reach at 9.10%. REG has a gross margin of 73.00% and an operating margin of 26.80% while its profit margin remained 21.10% for the last 12 months.   According to the most recent quarter its current ratio was # ref that represents company’s ability to meet its current financial obligations. The price moved ahead of -9.81% from the mean of 20 days, -11.06% from mean of 50 days SMA and performed -15.35% from mean of 200 days price. Company’s performance for the week was -10.81%, -13.24% for month and YTD performance remained -12.27%.