Regency Centers Corp (NASDAQ: REG)

Sector: Real Estate Industry: REIT - Retail CIK: 0000910606
Market Cap 14.06 Bn
P/B 2.04
P/E 27.37
P/S 9.05
ROIC (Qtr) 4.89
Div Yield % 3.72
Rev 1y % (Qtr) 8.50
Total Debt (Qtr) 4.98 Bn
Debt/Equity (Qtr) 0.72
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About

Regency Centers Corporation, often referred to as Regency Centers, operates as a real estate investment trust (REIT) in the United States, specializing in the ownership, operation, and development of grocery-anchored shopping centers, community shopping centers, and neighborhood shopping centers. With a portfolio of 482 properties, Regency Centers boasts a significant presence in the industry, encompassing 56.8 million square feet of gross leasable area. As a fully integrated company, Regency Centers focuses on leasing space to necessity, service,...

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Investment thesis

Bull case

  • Operating cash flow of 827.69M provides exceptional 61.35x coverage of minority interest expenses 13.49M, showing strong core operations.
  • Operating cash flow of 827.69M provides strong 36.41x coverage of stock compensation 22.73M, indicating sustainable incentive practices.
  • Strong tangible asset base of 12.75B provides 2.56x coverage of total debt 4.98B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 517.57M exceeds capital expenditure of 310.12M by 1.67x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 827.69M provides 8.33x coverage of SG&A expenses 99.41M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 827.69M barely covers its investment activities of (421.14M), with a coverage ratio of -1.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 827.69M provides thin coverage of dividend payments of (511.56M) with a -1.62 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 120.66M provide limited coverage of acquisition spending of (115.93M), which is -1.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 727.01M show weak coverage of depreciation charges of 405.04M, with a 1.79 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 405.04M relative to operating cash flow of 827.69M, which is 0.49x suggests significant maintenance capital requirements affecting free cash flow.

Consolidated Entities Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the REIT - Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPG Simon Property Group Inc. 62.65 Bn 27.30 11.19 26.32 Bn
2 O Realty Income Corp 15.99 Bn 61.56 15.32 28.37 Bn
3 KIM Kimco Realty Corp 14.22 Bn 20.86 8.63 8.35 Bn
4 REG Regency Centers Corp 14.06 Bn 27.37 9.05 4.98 Bn
5 PECO Phillips Edison & Company, Inc. 11.82 Bn 3,838.00 46.61 2.38 Bn
6 FRT Federal Realty Investment Trust 8.00 Bn 23.50 8.55 5.03 Bn
7 EPRT Essential Properties Realty Trust, Inc. 6.41 Bn 25.34 11.42 2.51 Bn
8 ADC Agree Realty Corp 5.53 Bn 44.48 15.36 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.46 1.13
EV to Cash from Ops. EV/CFO 22.98 22.52
EV to Debt EV to Debt 3.82 2.49
EV to EBIT EV/EBIT 26.16 42.49
EV to EBITDA EV/EBITDA 19.25 19.89
EV to Free Cash Flow [EV/FCF] EV/FCF 36.74 27.13
EV to Market Cap EV to Market Cap 1.35 461,431.31
EV to Revenue EV/Rev 12.24 13.31
Price to Book Value [P/B] P/B 2.04 3.17
Price to Earnings [P/E] P/E 27.37 177.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.98 0.69
Dividend Payout Ratio % Div Payout % (Qtr) 101.80 169.12
Dividend per Basic Share Div per Share (Qtr) 2.87 2.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 101.41 -68.66
Interest Coverage Int. cover (Qtr) 3.64 2.52
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -32.10 -12.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 94.98 68.41
Dividend Growth (1y) % Div 1y % (Qtr) 5.71 13.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 25.24 224.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.76 0.11
EBIT Growth (1y) % EBIT 1y % (Qtr) 25.24 222.92
EBT Growth (1y) % EBT 1y % (Qtr) 31.74 290.94
EPS Growth (1y) % EPS 1y % (Qtr) 33.02 273.30
FCF Growth (1y) % FCF 1y % (Qtr) -6.82 -81.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.40 6.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.12
Cash Payout Ratio Cash Payout (Qtr) 0.46 0.14
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 -2.59
Interest Cover Ratio Int Coverage (Qtr) 3.64 2.52
Times Interest Earned Times Interest Earned (Qtr) 3.64 2.52
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 72.90 78.58
EBIT Margin % EBIT Margin % (Qtr) 46.80 45.34
EBT Margin % EBT Margin % (Qtr) 33.95 25.50
Gross Margin % Gross Margin % (Qtr) 70.60 73.99
Net Profit Margin % Net Margin % (Qtr) 33.10 23.85