Regency Centers Earnings: Reaches Occupancy High Point as Overall Growth in Line With Expectations

Regency Centers reported fourth-quarter results that were in line with our expectations, leading us to reaffirm our $80 fair value estimate for the no-moat company. Same-store occupancy improved 60 basis points sequentially to 96.7%, the highest figure the company has reported in over a decade. Re-leasing spreads remain solid at 10.8%, in line with our 10.7% estimate for the quarter. Same-store revenue increased 2.8% while same-store operating expenses only rose 0.6%, leading to same-store net operating income growth of 3.8%. However, excluding the effect of termination fees and redevelopment properties same-store NOI growth was 3.0% in the fourth quarter, in line with our 2.9% estimate. Regency reported core funds from operations of $1.04 per share in the fourth quarter, matching our estimate.