Regency Centers Reports 4.7% Revenue Growth to $380.9 Million in Q1 2025

Regency Centers Corporation reported its financial results for the first quarter of 2025, revealing total revenues of $380.9 million, a 4.7% increase from $363.9 million in the same period last year. The growth was primarily driven by a $17.9 million increase in lease income, which rose to $371.1 million from $353.1 million. This increase was attributed to higher base rent, recoveries from tenants, and positive rental spreads on new and renewal leases. However, net income attributable to common shareholders slightly decreased to $106.2 million, or $0.59 per share, compared to $106.4 million, or $0.58 per share, in the prior year.

In terms of operational performance, Regency Centers reported a total property portfolio occupancy rate of 96.3% as of March 31, 2025, unchanged from the previous quarter but up from 95.0% a year earlier. The company executed 450 new and renewal leasing transactions during the quarter, representing 1.4 million square feet, with positive rent spreads of 8.1%. This was a slight decrease from 461 transactions and 2.0 million square feet in the same quarter of 2024, where rent spreads were 8.5%. The company’s Pro-rata same property net operating income (NOI) grew by 4.3%, reflecting improvements in occupancy rates and contractual rent increases.

Strategically, Regency Centers made significant investments in its portfolio, acquiring two operating properties for a total of $83.2 million and investing $101.4 million in development and redevelopment projects during the quarter. The company also reported a credit rating upgrade to A- from S&P Global Ratings in February 2025, enhancing its financial flexibility. As of March 31, 2025, Regency Centers had $1.22 billion available on its unsecured credit facility, which expires in March 2028.

The company’s total assets increased to $12.56 billion from $12.39 billion at the end of 2024, driven by growth in real estate investments and cash reserves. Total liabilities also rose to $5.68 billion, primarily due to increased notes payable and an unsecured credit facility. Regency Centers continues to maintain a conservative capital structure, with 89.4% of its wholly-owned real estate assets unencumbered, allowing for greater access to financing options.

Looking ahead, Regency Centers remains focused on its strategy of owning and managing high-quality neighborhood and community shopping centers. The company anticipates continued growth in rental income and occupancy rates, although it acknowledges potential risks from macroeconomic factors such as inflation and interest rate fluctuations. The management expressed confidence in its ability to navigate these challenges while pursuing its development and redevelopment initiatives to enhance shareholder value.