Regency Centers (NASDAQ:REG) executives struck an upbeat tone on the company’s fourth-quarter 2025 earnings call, pointing to strong leasing momentum, low bad debt, and an active investment year that included acquisitions and a growing development pipeline. Management said 2025 results reflected the strength of Regency’s grocery-anchored centers in “strong suburban trade areas,” supported by disciplined capital allocation and a development platform it views as a key differentiator in an industry where new supply has remained limited.
Operating results and leasing momentum
East Region President and Chief Operating Officer Alan Roth described 2025 as “one of the strongest operational years we’ve ever experienced,” highlighted by same-property NOI growth of 5.3%. Roth attributed performance to “substantial base rent contribution,” including occupancy commencement and redevelopment impact, and said Regency’s average percent commencement rate increased 150 basis points year-over-year.
Regency also pointed to strong anchor and grocery leasing activity, including Q4 leases signed with Whole Foods, Sprouts, and Trader Joe’s. Roth said the company continues to see engagement from other anchors, naming TJX, Nordstrom Rack, Ulta, Ross, Burlington, and Williams-Sonoma. He characterized anchor leasing as a meaningful opportunity to push occupancy above prior peaks, while emphasizing that Regency remains focused on tenant and merchandising quality.
On rent growth, management highlighted cash rent spreads of 12% in Q4, including record renewal spreads of 13%. Roth also cited GAAP rent spreads of 25% in the quarter as an all-time high, which he said underscored embedded mark-to-market and the benefit of contractual escalators. He noted that more than 95% of negotiated leasing activity in 2025 included annual rent steps, a point later reinforced with additional detail: 96% of new and renewal deals included steps; for shop deals, 85% included steps of 3% or higher and 30% included 4% or higher.
At year-end, Regency’s signed-not-open (SNO) pipeline stood at approximately $45 million of incremental base rent, with Roth saying the company made progress commencing tenants in Q4 while also backfilling the pipeline. He added that Regency is also seeing tenants inquire about space that is currently occupied, which he framed as evidence of constrained retail supply in the company’s markets.
Development, redevelopment, and acquisitions
West Region President and Chief Investment Officer Nick Wibbenmeyer said 2025 was “a tremendous year” for Regency’s investments platform. He reported the company deployed more than $825 million into investments, including more than $500 million of acquisitions and $300 million in development and redevelopment projects.
Regency started 24 development and redevelopment projects across 16 markets in 2025, with most capital allocated to ground-up development. Wibbenmeyer said ground-up development returns were north of 7% at “meaningful spreads to market cap rates.” In Q4 alone, he said the company started more than $90 million of ground-up projects, including Oak Valley Village in Southern California (anchored by Target and Sprouts) and Lone Tree Village in Denver (anchored by King Soopers).
On project deliveries, Wibbenmeyer said Regency completed 13 development and redevelopment projects in Q4 totaling more than $160 million, with 9% blended returns. He said those projects were more than 98% leased, with many delivered ahead of schedule and several anchors opening early. Regency’s in-process pipeline stood near $600 million, and management said it has visibility into nearly $1 billion of project starts over the next three years. On the 2026 spending outlook, CFO Mike Mas said the company’s $325 million development and redevelopment spend guidance is expected to be roughly two-thirds ground-up and one-third redevelopment, while Wibbenmeyer suggested approximately 75% of starts over the next few years could be ground-up.
When asked about potential increases in broader industry development activity, Wibbenmeyer said he expects development to grow “but coming off a very low number,” adding that while competition for opportunities is increasing, overall supply remains “a very, very small amount” relative to existing retail stock.
2026 guidance and balance sheet positioning
Mas said Regency delivered close to 8% NAREIT FFO per share growth and nearly 7% Core Operating Earnings per share growth for the full year, driven by operating fundamentals and external growth from acquisitions and development. For 2026, Regency guided to same-property NOI growth of 3.25% to 3.75%, which management expects to be driven by rent spreads and steps, redevelopment deliveries, and additional contribution from the commencement of the SNO pipeline.
Mas said Regency is planning for another year of uncollectible lease income below its historical average of 50 basis points of revenues. He also flagged timing items within the year: Q1 same-property NOI growth is expected to be above the full-year guidance range due to a higher expense recovery rate versus last year and variability in other income, while Q2 growth is expected to be below the range due to a difficult comparison tied to the company’s annual CAM reconciliation process.
On earnings, Mas said the company’s outlook includes an anticipated 100 to 150 basis point impact from debt refinancing activity (as previously discussed on the October call). Excluding that impact, he said the midpoint of guidance would be in the “mid-5% to 6%” area.
Mas also emphasized the company’s balance sheet flexibility, citing A3/A- credit ratings from Moody’s and S&P, leverage within a targeted 5.0x to 5.5x range, strong free cash flow with “no need to raise equity or sell properties” to fund the investment pipeline, and nearly full availability on the $1.5 billion credit facility.
Key Q&A themes: acquisitions, Amazon Fresh closures, and capital allocation
In Q&A, executives described a competitive acquisition environment for grocery-anchored centers. Wibbenmeyer said investor demand remains strong and cited a 5% to 6% cap rate range for opportunities, while reiterating that Regency does not rely on acquisitions in its base plan and will pursue deals only when they fit the company’s quality, growth, and accretion requirements. He said Regency had nothing under contract at the time of the call.
Management also addressed Amazon Fresh store closures, noting Regency has four Amazon Fresh locations and that all four have closed. CEO Lisa Palmer said she was encouraged that Amazon is “leaning in” on expanding Whole Foods. Roth said the company has received inbound interest for the spaces and noted there is “significant term remaining” on the leases with Amazon credit; Regency plans to be patient and evaluate outcomes, including possible conversions to Whole Foods or other grocers. He added that no Amazon termination fee assumptions are included in guidance.
On capital allocation, management reiterated that development and redevelopment are priorities, with acquisitions viewed as incremental rather than “either/or.” Mas said dispositions remain part of the company’s toolkit—used when assets are non-strategic, non-core, or inconsistent with portfolio growth expectations—but are not viewed as a primary funding source for the development program given Regency’s free cash flow.
Executives also discussed Crystal Park, an acquisition that Regency immediately put into its development pipeline. Management described the Long Island property as underutilized, anchored by a pre-leased Whole Foods with entitlements and plans in place to start construction promptly. Wibbenmeyer said Regency acquired it for $30 million and expects to invest about the same amount over the next couple of years, targeting stabilization returns “north of a 7% return,” similar to ground-up development.
In closing remarks, Palmer said the company’s grocery-anchored portfolio continues to benefit from limited new supply and strong tenant demand, and she thanked employees for what she characterized as another “outstanding year,” while expressing confidence the company is carrying momentum into 2026 and beyond.
About Regency Centers (NASDAQ:REG)
Regency Centers Corporation is a publicly traded real estate investment trust (REIT) specializing in the ownership, operation and development of grocery-anchored shopping centers. Focused on everyday needs retail, the company’s portfolio is strategically concentrated in high-growth, densely populated markets across the United States. By aligning its properties with essential retailers, Regency Centers delivers stable income streams and drives sustained value for shareholders.
Founded in 1963 and headquartered in Jacksonville, Florida, Regency Centers began as a single shopping center developer before evolving into one of the largest owners of grocery-center real estate.
