Regency Centers (REG)
Real Estate · $14.1B market cap · SEC CIK 0000910606
ahead of 91% of the S&P 500 · #4 of 30 in Real Estate
Next reports on Feb 3, 2027, after the close, with analysts expecting $0.62 in earnings per share.
52-week range $66.86 to $83.66. 9% below its 52-week high and 14% above its low.
The case for REG
- 34% of revenue drops through to net profit.
- Revenue growing 8.2% year over year.
- Earnings per share up 36.9%.
- Pays a 4.4% dividend while you wait.
- Gross margin of 70% absorbs cost shocks.
The case against
- Pricey for its growth: 25.3× earnings, where 8%+ a year of growth would justify about 20×.
- Long-term debt of $4.7B would take 6 years of operating cash flow to repay.
- Priced at 8.7× sales with revenue growing only 8.2%.
- Current liabilities exceed current assets (ratio 0.71).
- Dividend takes 98% of earnings, leaving little cushion.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 64 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 78 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 73 |
| Momentumhow the price has behaved lately | 55 |
| Stabilityhow violently it moves, what it owes and what it pays you | 78 |
- Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
- Each factor except momentum is half fixed thresholds, half rank among the 30 Real Estate companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +8.2% |
|---|---|
| Over 5 years | +8.9% a year |
| FY2025 revenue | $1.6B (+7%) |
Free cash flow
Is it generating real cash? Can't tell: no capital spending in its filings
| FY2025 operating cash flow | $828M |
|---|---|
| Of profit, before capital spending | 157% |
Its filings do not give capital spending, so free cash flow cannot be worked out. Operating cash flow, which is before that spending, is shown instead, and the score judges it against a stricter bar.
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 70% |
|---|---|
| Operating margin | 37% |
| Net margin, FY24 → FY25 → now | 27.5% → 34.0% → 34.4% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $121M |
|---|---|
| Long-term debt | $4.7B |
| Net debt | $4.6B |
| Years to repay | 5.7 yrs |
Valuation
Is the stock price reasonable? Mixed: pricey on earnings, fair on cash flow
| P/E | 25.3× |
|---|---|
| Fair P/E for its growth | 20× |
| Price / operating cash flow | 17.0× |
| Forward P/E | 29.6× |
| EV / EBITDA | 18.4× |
At 25.3× earnings it trades above the 20× that 8%+ a year of growth would justify. At 17.0× operating cash flow it trades below that same mark; for a REIT that counts for more than earnings, since depreciation makes its P/E look worse than the business is.
The financials, five years deep
Pulled from Regency Centers's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $1.6B | $1.5B | $1.3B | $1.2B | $1.2B |
| Change on the year | +7% | +10% | +8% | +5% | — |
| Profit margins | |||||
| Operating margin | 72.3% | 72.0% | 71.9% | 73.3% | — |
| Net margin | 34.0% | 27.5% | 27.6% | 39.4% | 31.0% |
| Debt vs. cash | |||||
| Cash | $121M | $61.9M | $91.4M | $68.8M | $95.0M |
| Long-term debt | $4.7B | $4.4B | $4.2B | $3.7B | $3.7B |
| Net cash (debt) | −$4.6B | −$4.3B | −$4.1B | −$3.7B | −$3.6B |
Risk factors REG lists in its 10-K
- If any of the events described in the risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected