Regency Centers

REG

Market cap $13B

REG thrives on grocery-anchored strength, acquisitions and dividends but faces e-commerce threats, high debt and market concentration.

Investors with an interest in REIT and Equity Trust - Retail stocks have likely encountered both Phillips Edison & Company, Inc. (PECO) and Regency Centers (REG). But which of these two stocks is more attractive to value investors?

If you're looking to diversify your stock portfolio away from AI, Bank of America has some suggestions.

Regency Centers is a leading REIT with $12.7B in assets, strong investment-grade credit ratings, and a diversified retail property portfolio. REG's preferred shares, particularly REGCP, offer a compelling yield of 6.61% to worst, outperforming peers in the REIT sector with similar credit ratings. Applying Moody's methodology, REG maintains an A3 credit rating, while its preferred shares are assigned a Baa2 rating, reflecting robust financial health.

Dividend stocks are a favorite among investors for good reason. They provide a steady stream of passive income and offer a promising avenue for total return.

AI-driven tech stocks dominate 2025 returns, leaving dividend and high-yield ETFs lagging due to limited AI exposure. REITs face mixed fortunes: ARE and DOC struggle with life science oversupply, while IVT, AMT, ADC, and VICI offer attractive dividend growth and value. My current buy list focuses on undervalued REITs and ETFs with strong dividend growth.

Regency Centers Corporation is a leading REIT with stable performance, a strong tenant mix, and peer-leading AFFO growth, recently raising its dividend by 7%. REG's growth pipeline and increased guidance for same-property NOI growth support a solid outlook, though current valuation appears fair relative to peers. Interest rate cuts are a key near-term catalyst for REG, potentially reducing debt costs and boosting tenant demand, but economic and political risks remain.

Regency Centers is a fundamentally safe, well-diversified retail REIT with strong credit ratings and a solid dividend yield near 4%. REG's grocery-anchored portfolio, low leverage, and consistent dividend growth support its reputation for capital preservation and steady income. Valuation is the main concern: REG trades at a premium, and current prices do not offer the 15% annualized upside target, making it less attractive now.

Regency Centers Corporation ( REG ) Q3 2025 Earnings Call October 29, 2025 11:00 AM EDT Company Participants Christy McElroy - Senior Vice President of Capital Markets Lisa Palmer - President, CEO & Director Alan Roth - COO & President of East Region Nicholas Wibbenmeyer - Chief Investment Officer & President of West Region Michael Mas - Executive VP & CFO Conference Call Participants Viktor Fediv - Scotiabank Global Banking and Markets, Research Division Michael Goldsmith - UBS Investment Bank, Research Division Cooper Clark - Wells Fargo Securities, LLC, Research Division Samir Khanal - BofA Securities, Research Division Ronald Kamdem - Morgan Stanley, Research Division Todd Thomas - KeyBanc Capital Markets Inc., Research Division Craig Mailman - Citigroup Inc., Research Division Juan Sanabria - BMO Capital Markets Equity Research Michael Griffin - Evercore ISI Institutional Equities, Research Division Ravi Vaidya - Mizuho Securities USA LLC, Research Division Wesley Golladay - Robert W. Baird & Co. Incorporated, Research Division Linda Yu Tsai - Jefferies LLC, Research Division Michael Mueller - JPMorgan Chase & Co, Research Division Floris Gerbrand Van Dijkum - Ladenburg Thalmann & Co. Inc., Research Division Paulina Rojas-Schmidt Presentation Operator Greetings, and welcome to Regency Centers Corporation Third Quarter 2025 Earnings Conference Call.

REG posts steady Q3 results, with FFO matching estimates and revenues beating estimates, backed by strong leasing and same-property NOI growth.