Regency Centers (REG) Nareit REITweek: 2025 Investor Conference summary

Industry trends and strategy

• Grocery retail remains highly competitive and low-margin, with success tied to strong operators and investment in both in-store and online experiences.

• Physical store presence is critical for profitability, as in-store shopping is more cost-effective than delivery.

• Nearly all major U.S. grocers are expanding, driving demand for quality retail space.

• Foot traffic and rent-paying occupancy have increased, reflecting strong consumer engagement.

• Merchandising and placemaking are prioritized to create inviting shopping environments.

Growth drivers and financial outlook

• Targeting 3% annual same-property growth, with additional gains from leverage and development, aiming for 5% total growth.

• Occupancy is rising, with a 300 basis point spread between leased and commenced occupancy, indicating further upside.

• $250 million or more in development starts annually since 2023, with continued momentum expected into 2025 and 2026.

• Earnings growth is expected to drive parallel dividend growth, which has been maintained and increased post-pandemic.

• Dividend was not cut during the pandemic and has grown for two years since.

Tenant health and risk management

• Tenant base is considered the strongest in decades, with a watch list typically in the 150-200 basis point range.

• Post-COVID, weaker retailers have exited, leaving a resilient tenant mix.

• Rent-paying occupancy increased in Q1, outperforming peers due to limited exposure to bankrupt tenants.

• Asset and tenant selection are highly intentional, supporting occupancy durability.

• Drugstore sector exposure has halved over time, with strong backfill prospects for vacated spaces.