Regency Raises 2026 Outlook After NOI Growth Pick-Up

The Tip Desk · November 6, 2026 · 3 min read

Same Property NOI rose 5.1% in the third quarter, and the company lifted full-year Core Operating Earnings guidance to $4.65 to $4.67 a share.

Regency Centers Corporation (REG), a national owner and developer of suburban shopping centers, reported that Same Property net operating income rose 5.1% in the three months ended September 30, 2026, faster than the 3.8% increase in the second quarter, and raised its full-year 2026 earnings outlook.

The company also lifted 2026 Core Operating Earnings guidance to a range of $4.65 to $4.67 a share from $4.62 to $4.66, and Nareit funds from operations guidance to $4.86 to $4.88 a share from $4.84 to $4.88. The midpoint of the new Core Operating Earnings range represents 5.7% year-over-year growth. Same Property NOI growth guidance was raised to 4.25% or more from a 3.7% to 4.1% range.

Nareit FFO was $1.23 a diluted share, or $230.8 million, compared with $1.15 a share, or $213.5 million, a year earlier. Core Operating Earnings were $1.18 a share, or $220.6 million, versus $1.09 a share, or $202.6 million, a year earlier.

Net income attributable to common shareholders was $75.1 million, or $0.41 a diluted share, down from $106.0 million, or $0.58 a share, a year earlier. The quarter included $65.1 million of impairment provisions, or $0.35 a share, and $23.8 million of gains on sale of real estate, or $0.13 a share.

Same Property base rent growth contributed 4.0% to third-quarter Same Property NOI growth. Total NOI rose 7.6%. Same Property NOI without redevelopments increased 3.5%. The expense recovery ratio was 87.5%, and the NOI margin was 69.8%.

As of September 30, the Same Property portfolio was 97.0% leased, up 10 basis points sequentially and 60 basis points from a year earlier, and 95.1% commenced. Anchor spaces of 10,000 square feet or more were 98.5% leased; shop spaces under 10,000 square feet were 94.6% leased.

The company executed about 1.7 million square feet of comparable new and renewal leases in the quarter at a blended cash rent spread of 11.9% and a straight-lined spread of 21.8%. Over the twelve months ended September 30, it executed about 7.0 million square feet at cash and straight-lined spreads of 11.5% and 22.4%.

Ground-up development and redevelopment starts were about $101 million at the company’s share, bringing year-to-date starts to approximately $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. One ground-up project of about $96 million was completed. In-process development and redevelopment costs were $682 million at a blended estimated yield of about 9%, with 46% incurred. After quarter-end, the company started Poppy Ranch at Morgan Hill, a $42 million Sprouts-anchored development.

As previously disclosed, Regency acquired Franklin Crossing in Franklin Lakes, N.J., for $27 million, and Cornerstone at Westford in suburban Boston through a joint venture for $74 million, or about $15 million at Regency’s share. After quarter-end, it acquired Hanover Village in Richmond, Va., for about $14 million.

Pro-rata net debt and preferred stock to trailing-twelve-month operating EBITDAre was 4.9x at September 30, down from 5.0x at June 30. Available capacity under the revolving credit facility was about $1.4 billion.

On November 3, the board declared a quarterly common dividend of $0.800 a share, a 6% increase, payable January 5, 2027. President and Chief Executive Officer Lisa Palmer said the company raised its full-year outlook and increased the dividend on the strength of portfolio quality and operating fundamentals.