Barclays initiates coverage on Regency Centers stock with Equalweight rating

Investing.com - Barclays (LON:BARC) has initiated coverage on Regency Centers (NASDAQ:REG), a $12.95 billion market cap retail REIT, with an Equalweight rating and a price target of $77.00. According to InvestingPro data, the company maintains a solid GOOD financial health score and offers a 3.97% dividend yield.

The research firm describes Regency Centers as a "blue-chip name within Retail" that has demonstrated an "outstanding long-term track record of shareholder returns relative to peers." This assessment is supported by the company’s impressive 32-year streak of maintaining dividend payments, with 11 consecutive years of dividend increases, as revealed by InvestingPro analysis.

Barclays notes that Regency Centers currently trades at a premium of approximately 3x on a P/Forward FFO basis compared to other companies in the sector, which the firm believes is deserved.

The $77 price target incorporates a 10% premium to Barclays’ baseline F-NAV (forward net asset value) estimate for the retail real estate investment trust.

Despite the positive assessment of the company’s quality and performance, Barclays concludes that the stock appears "fairly valued at current levels," justifying the Equalweight rating.

In other recent news, Regency Centers Corporation reported a robust first quarter for 2025, significantly exceeding earnings projections. The company achieved an earnings per share (EPS) of 1.09, doubling the anticipated 0.5458, and reported revenue of $381.79 million, surpassing forecasts by $6.49 million. Regency Centers also announced the pricing of a $400 million public offering of senior unsecured notes due in 2032, with a 5.00% coupon rate. The proceeds are intended to reduce the company’s line of credit and pay off existing notes. Additionally, S&P upgraded Regency Centers’ credit rating to A-, following a similar upgrade by Moody’s last year. This positions Regency as the only A-rated company in the shopping center REIT sector. The company reaffirmed its 2025 earnings outlook, projecting a nearly 6% growth in NAREIT FFO. Wells Fargo (NYSE:WFC) Securities, BofA Securities, and J.P. Morgan Securities are among the banks managing the notes offering.

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