Regency Centers raises 2026 FFO forecast, lifts dividend 6%

Regency Centers (REG) raised its 2026 Nareit FFO forecast to $4.86 to $4.88 per diluted share, from $4.84 to $4.88, and increased its quarterly dividend 6% to 80 cents per share. Third-quarter total revenue was $419.06 million, in line with the $420.82 million consensus.

Shares fell 1.3% at 9:52 a.m. ET, from a $76.28 close.

Here's how the company did:

• Nareit FFO: $230.8 million, or $1.23 per diluted share, vs. $213.5 million, or $1.15 per diluted share, a year earlier
• Core Operating Earnings: $220.6 million, or $1.18 per diluted share, vs. $202.6 million, or $1.09 per diluted share, a year earlier
• Net income attributable to common shareholders: $75.1 million, or 41 cents per diluted share, vs. $106.0 million, or 58 cents, a year earlier
• Total revenue: $419.06 million vs. $387.57 million a year earlier

Net income included provisions for impairment of $65.1 million, or 35 cents per diluted share, and gains on sale of real estate of $23.8 million, or 13 cents per diluted share.

Same Property net operating income rose 5.1%, with base rent growth contributing 4.0 percentage points. Same Property occupancy reached 97.0%, up 60 basis points.

Revenue has risen in each of the last three quarters, from $387.6 million in the third quarter of 2025 to $413.5 million in the second quarter of 2026.

2026 guidance

The company now expects Nareit FFO of $4.86 to $4.88 per diluted share for 2026. In July it forecast $4.84 to $4.88.

Core Operating Earnings guidance rose to $4.65 to $4.67 per diluted share, from $4.62 to $4.66.

Same Property NOI growth guidance was raised to 4.25% or more, from 3.7% to 4.1%.

Net income guidance per diluted share was cut to $2.31 to $2.33, from $2.48 to $2.52.

President and Chief Executive Officer Lisa Palmer said the company's "performance and confidence in the durability of our business have enabled us to once again raise our full-year outlook and increase our common stock dividend."

Leasing and development

Regency executed 1.7 million square feet of comparable new and renewal leases in the quarter. Blended rent spreads were 11.9% on a cash basis and 21.8% on a straight-lined basis.

Over the 12 months ended Sept. 30, the company executed 7.0 million square feet of comparable leases at a blended cash rent spread of 11.5%.

The company started $101 million of ground-up development and redevelopment projects in the quarter, with year-to-date starts of about $241 million. Third-quarter starts included Redlands Marketplace, a $46 million Whole Foods-anchored project in Los Angeles, and The Shops at Fall Hill, a $24 million specialty grocer-anchored project in Fredericksburg, Va.

In-process projects have estimated net project costs of $682 million at the company's share, a blended estimated yield of about 9%, and 46% of costs incurred by Sept. 30.

Dividend and balance sheet

On Nov. 3, the board declared the 80-cent quarterly dividend per common share, payable Jan. 5, 2027, to shareholders of record as of Dec. 14, 2026.

Net debt and preferred stock to trailing operating EBITDA was 4.9x at Sept. 30. About $1.4 billion was available under the revolving credit facility.