Regency Centers Corporation Posts Record-Breaking Performance in Q4 2024
The real estate investment trust (REIT) company, Regency Centers Corporation, has announced its strongest performance yet in the fourth quarter of 2024. In a conference call with investors and analysts on February 7th, the company revealed that it had achieved record-breaking same property NOI (Net Operating Income) and earnings growth.
Regency's President and Chief Executive Officer, Lisa Palmer, highlighted the exceptional performance of the company during the quarter, citing continued robust tenant demand and opportunities for value creation. The company reported strong base rent growth, with a significant number of leases executed by its leasing team. In fact, Regency set new record highs for same-property lease rate, ending the year at 96.7%, and shop occupancy lease rate, finishing the year at 94.
The company's operating fundamentals have benefited from a relative lack of new supply in the sector over the last 15 years. However, despite muted supply growth, Regency has been able to create meaningful value through development, with close to $500 million of projects currently underway and nearly half of these being new ground-up developments.
Regency's accretive investment activity totaled more than $0.5 billion in 2024, primarily driven by the funding of its growing development pipeline, combined with high-quality acquisitions and opportunistic share repurchases. The company maintained a strong balance sheet and liquidity position throughout this period, which will serve as a solid foundation for long-term success.
As reported by Alan Roth, Regency's East Region President and Chief Operating Officer, the company saw robust same-property NOI and base rent growth in 2024. This was driven by record leasing activity, strong rent spreads, and embedded rent steps, as well as the success of accelerating rent commencement dates.
Regency Centers Corporation continues to demonstrate its sector-leading position in the commercial real estate market, with a strong pipeline of projects and a commitment to driving value creation through development. As the company looks ahead to future growth, investors are likely to remain optimistic about the prospects for Regency's continued success.
