Regency Centers sees strong annual profit on higher rental prices, leasing demand
Aug 3 (Reuters) - Regency Centers Corp on Thursday lifted the bottom end of its forecast for annual profit and funds from operations, signaling higher rental prices and steady leasing demand for its grocery-anchored shopping centers.
The commercial real estate investment trust (REIT) has been raising prices of its rental properties to shield itself from rising development as well as interest rates and protect its margins.
However, this has not impacted demand for its spaces especially from grocers, off-price retailers, home decor, sporting goods and medical uses stores who have seen steady income for their essential offerings amid high inflation.
Last week, rival Kimco Realty Corp beat Wall Street expectations for second-quarter revenue, benefiting from higher rental rates and resilient demand for space in its grocery-anchored shopping centers.
Regency Centers raised the low end of its 2023 profit per share forecast to $2.05 from $2.01, while maintaining the top end at $2.09.
The company now expects annual Nareit funds from operations (FFO) between $4.11 and $4.15, compare with previous forecast of $4.07 to $4.15.
It also lifted its core earnings per share forecast to between $3.89 and $3.93, from $3.87 to $3.93.
Regency Centers second-quarter revenue rose 4% to $314.3 million in the quarter ended June 30, compared to analysts' average estimate of $309.1 million, according to Refinitiv data.
The company posted Nareit FFO of $1.03 per share, compared to estimates of $1.01. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel)
