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US retail real estate investment trust (REIT) Regency Centers has increased its full-year 2026 earnings guidance after reporting sustained leasing demand and rising rental rates across its grocery-anchored shopping centre portfolio. The company raised its forecast for National Association of Real Estate Investment Trusts (Nareit) funds from operations (FFO) and core operating earnings, reflecting resilient occupancy and rental growth despite broader economic uncertainty. Regency Centres, which owns 481 shopping centres leased to leading grocery chains and national retailers, reported second-quarter Nareit FFO of USD 1.21 per share, matching analysts' expectations. The updated outlook underscores the continued strength of necessity-based retail assets in the US commercial real estate market.
Regency Centers has raised its full-year 2026 earnings forecast following continued growth in leasing activity and rental rates across its portfolio of grocery-anchored shopping centres, reflecting sustained demand for necessity-based retail real estate in the United States.
The retail real estate investment trust (REIT) announced earlier this week that it now expects National Association of Real Estate Investment Trusts (Nareit) funds from operations (FFO) of between USD 4.84 and USD 4.88 per share for 2026, compared with its previous guidance of between USD 4.83 and USD 4.87 per share.
The company also increased its forecast for annual core operating earnings to a range of between USD 4.62 and USD 4.66 per share, up from its earlier projection of between USD 4.59 and USD 4.63 per share.
Regency Centers said the improved outlook was supported by rising rental rates, strong leasing demand and resilient occupancy levels across its shopping centre portfolio. Commercial real estate investment trusts focused on retail assets have continued to benefit from stable consumer spending, enabling landlords to maintain leasing momentum despite wider economic uncertainty.
The company's portfolio primarily comprises premium grocery-anchored shopping centres located in higher-income neighbourhoods, where consumer spending has remained comparatively resilient. Such centres typically attract consistent footfall due to the presence of essential retailers, supporting occupancy levels and rental growth over the long term.
As of 2025, Regency Centers owned 481 retail properties across the United States. Its tenant base includes major supermarket operators such as Kroger and Albertsons, alongside national retailers including TJX Companies, Kohl's and Target.
For the quarter ended 30 June 2026, the company reported Nareit FFO of USD 1.21 per share, in line with analysts' expectations compiled by LSEG. The results reinforced investor confidence in the performance of grocery-anchored retail assets, which have continued to outperform several other segments of the commercial property market.
The revised earnings guidance indicates that Regency Centers expects leasing demand to remain stable during the remainder of the year, supported by sustained retailer expansion and rental growth across its portfolio. The performance also highlights the resilience of essential retail properties, where long-term leases with grocery operators and established national retailers continue to provide stable income streams despite evolving economic conditions.
Source - Reuters
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