5 Reasons to Add Regency Centers Stock to Your Portfolio Now

Regency Centers Corp. REG seems well-poised to gain from its strategically located premium portfolio of grocery-anchored shopping centers. Significant buyouts and an encouraging development pipeline bode well for long-term growth. A healthy balance sheet provides financial flexibility for portfolio expansion.Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for REG’s 2025 funds from operations (FFO) per share has moved marginally northward over the past months to $4.59.Over the past three months, shares of this retail real estate investment trust (REIT) company have gained 0.9% compared with the industry's rise of just 0.1%. Given its solid fundamentals and positive estimate revisions, the stock is likely to keep performing well in the quarters ahead.Image Source: Zacks Investment ResearchFactors That Make Regency Centers a Solid PickHealthy Operating Fundamentals & Rent Growth: Regency’s premium shopping centers are situated in affluent suburban areas and near the urban trade areas where consumers have high spending power, enabling the company to attract top grocers and retailers. Furthermore, the best-in-class operators are opening new locations in its high-quality centers. Anchor tenants comprised 42.3% (based on pro-rata ABR) of its portfolio as of June 30, 2025. Regency’s embedded rent escalators have been a key driving factor behind its rent growth. In the second quarter of 2025, same-property base rent growth contributed 4.5% to same-property net operating income (NOI) growth.Grocery Anchored Tenant Base: Regency has a high-quality open-air shopping center portfolio, with more than 85% grocery-anchored neighborhood and community centers. This focus on building a premium portfolio of grocery-anchored shopping centers is a strategic fit because such centers are usually necessity-driven and attract dependable traffic. In uncertain times, the grocery component has benefited retail REITs, and Regency has numerous industry-leading grocers such as Publix, Kroger, Albertsons Companies, TJX Companies, Inc. and Amazon/Whole Foods as tenants. Six of Regency’s top 10 tenants are high-performing grocers. The focus on necessity, service, convenience and value retailers serving the essential needs of the communities provides Regency with a strategic advantage.Strategic Expansion Efforts: Regency is making efforts to improve its portfolio with acquisitions and developments in key markets. In July 2025, Regency Centers announced the buyout of a portfolio of five shopping centers located within the Rancho Mission Viejo master planned community in Orange County, CA, for $357 million. In the second quarter of 2025, Regency Centers acquired Armonk Square, a 48,000-square-foot neighborhood center in Armonk, NY, through the company's Oregon joint venture for approximately $5 million, at Regency's share. As of June 30, 2025, REG’s in-process development and redevelopment projects have estimated net project costs of around $518 million at the company’s share.Balance Sheet Strength: Regency is focused on strengthening its balance sheet. This retail REIT had $1.5 billion of capacity under its revolving credit facility as of June 30, 2025. The company enjoys low leverage with limited near-term maturities. Regency also has a large pool of unencumbered assets. Moreover, the investment-grade credit ratings of ‘A3’ from Moody’s and ‘A-’ with a stable outlook from S&P Global Ratings render it access to the debt market at favorable costs.Solid Dividend Payment: Solid dividend payouts are the biggest attraction for REIT investors, and Regency is committed to boosting shareholder wealth. The company has increased its dividend four times in the past five years, and its payout has grown 3.96% over the same period. Given the company’s solid operating platform, scope for growth and decent financial position compared to the industry, this dividend rate is expected to be sustainable over the long run. Check Regency Centers’ dividend history here.Other Stocks to ConsiderSome other top-ranked stocks from the retail REIT sector are Brixmor Property Group Inc. BRX and Phillips Edison & Company, Inc. PECO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Brixmor Property Group’s 2025 FFO per share has been raised marginally over the past month to $2.24.The consensus estimate for Phillips Edison & Company’s 2025 FFO per share has been revised upward marginally to $2.58 over the past two months.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.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>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 Brixmor Property Group Inc. (BRX): Free Stock Analysis Report Phillips Edison & Company, Inc. (PECO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks