Regency Centers prices $325 million notes offering By Investing.com

JACKSONVILLE – Regency Centers Corporation (NASDAQ:), a national owner and operator of shopping centers, has priced a public offering of senior unsecured notes valued at $325 million, due January 15, 2035. The notes, part of the company’s existing shelf registration with the U.S. Securities and Exchange Commission, were issued at 99.813% of par value with a 5.100% coupon rate. Interest is payable semiannually, starting January 15, 2025.

The company plans to use the net proceeds to reduce the outstanding balance on its line of credit and for general corporate purposes, including the repayment of existing debt. The offering’s settlement, contingent on customary closing conditions, is expected on August 15, 2024.

A consortium of financial institutions, including J.P. Morgan Securities LLC, BofA Securities, Inc., and several others, are managing the book-running. The offering is backed by a prospectus and related prospectus supplement, which investors are advised to read for more comprehensive information about the offering and the company.

Regency Centers, known for its portfolio of shopping centers anchored by grocers and retailers, operates as a real estate investment trust and is a member of the S&P 500 Index. The company’s forward-looking statements indicate potential future financial or operational performance but also acknowledge the risks and uncertainties inherent in such projections.

In other recent news, Regency Centers Corporation displayed strong Q2 performance in 2024, characterized by increased sales, traffic trends, and record shop lease rates. The retail real estate investment trust raised its full-year guidance due to robust leasing activity and results, with plans to initiate over $1 billion in development and redevelopment projects over the next five years.

BMO Capital Markets maintained an Outperform rating with an $80.00 price target for the company, citing consistent leasing demand, a substantial pipeline of signed-but-not-occupied leases, and growing contributions from redevelopment projects as key growth drivers. The company’s solid financial standing, demonstrated by recent stock buybacks and $1.5 billion of capacity on its revolver, is seen as a key factor in its ability to sustain growth.

InvestingPro Insights

Regency Centers Corporation (NASDAQ:REG), with its strategic issuance of senior unsecured notes, is also showcasing financial stability and shareholder value through its back-end fundamentals. The company boasts a sturdy market capitalization of $12.69 billion, reflecting its significant presence in the shopping center industry. In terms of profitability, Regency Centers stands out with a gross profit margin of 70.88% over the last twelve months as of Q2 2024, which underscores its efficient operational management and ability to maintain high margins.

Investors may find Regency Centers’ commitment to shareholder returns particularly attractive. An InvestingPro Tip highlights that the company has not only maintained dividend payments for an impressive 31 consecutive years but has also raised its dividend for 10 consecutive years. This consistent dividend growth, at a rate of 3.08% over the last twelve months as of Q2 2024, coupled with a substantial dividend yield of 3.81%, positions Regency Centers as a potentially valuable pick for income-focused investors.

Moreover, the company’s stock is trading near its 52-week high, at 97.84% of this peak value, indicating strong market confidence. This aligns with another InvestingPro Tip pointing out the company’s robust return over the last three months, with a price total return of 19.52%. Such performance may suggest a positive outlook for the company’s market valuation in the near term.

For those interested in a deeper dive into Regency Centers’ financial health and future prospects, InvestingPro offers additional tips and insights. There are 8 more InvestingPro Tips available, providing a comprehensive analysis that can further inform investment decisions. Explore these valuable insights by visiting https://www.investing.com/pro/REG.

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