Regency Centers Corporation (REG) disclosed the redevelopment of a community center – Kings Park Shopping Center – based in Burke, VA. The move is aimed at expanding the center and enhancing customers’ shopping experience.
As per the refurbishment plan, Regency will expand the store of Giant at the shopping center from 28,161 square feet to 52,000 square feet. Hence, for that purpose Giant will shut down its existing store at the property on June 19. Along with this structural expansion, Regency has plans to revamp the façade and common areas of Kings Park shopping center. The company anticipates the re-opening of Giant store and refurbishment of the shopping center to complete by spring next year.
The Kings Park Shopping Center, positioned at 8970 Burke Lake Road, is a popular local spot for the Burke residents and commuters from the surrounding neighborhoods. The asset, which is now fully leased, boasts nationally recognized tenants cluster, including McDonald's Corp. (MCD) and CVS Caremark Corporation (CVS).
We expect this strategic expansive redevelopment of Kings Park Shopping Center to drive occupancy and boost traffic. Notably, Regency has been focusing on improving the quality of its properties in recent times to draw in shoppers.
Last month, the company disclosed the completion of the redevelopment of OR -based Greenway Town Center and addition of Whole Foods Market, Inc. (WFM) as the only grocer tenant there (read: Regency Revitalizes Oregon Center, Ushers WFM). These initiatives bode well for the long-term growth of this retail real estate investment trust (:REIT).
Regency has scheduled its second-quarter 2014 earnings announcement on Aug 6, after the closing bell. The Zacks Consensus Estimate for FFO per share for the same is presently pegged at 67 cents.
Currently, the company carries a Zacks Rank #3 (Hold).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.