Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Regency Centers (REG) Amends And Restates Credit Facility

Published 03/27/2018, 12:10 AM
Updated 07/09/2023, 06:31 AM

Regency Centers Corporation (NYSE:REG) amended and restated $1.25-billion unsecured revolving credit facility. The move is encouraging down the line for the company’s operational efficiency as it enhances the financial flexibility of the Retail REIT.

Specifically, the move helped in increasing the size of the facility to $1.25 billion from $1 billion. Also, the maturity date gets extended to Mar 23, 2022. Plus, the facility enjoys options for extension of maturity for two additional six-month periods.

In addition, the interest rate on the borrowings would be at an annual rate of LIBOR plus 87.5 basis points, conditioned upon the company’s credit ratings, compared with a rate of 92.5 basis points under its earlier facility. Moreover, there is an annual facility fee of 15 basis points, which is subject to the company’s credit ratings, applicable to the total $1.25-billion facility.

Further, Regency enjoys a large pool of unencumbered assets and shares a good relationship with lenders. In fact, as of Dec 31, 2017, 85.7% of its wholly-owned real estate assets were unencumbered. With a high percentage of such assets, the company can enjoy accessibility to secured and unsecured debt markets and maintain availability on the line. The company’s debt maturity profile is well laddered with limited near-term maturities.

However, the market is witnessing a shift in retail shopping from brick-and-mortar stores to internet sales. Particularly, the recent effort of online retailers to go deeper into the grocery business has emerged as a concern for this REIT that focuses on building a premium portfolio of grocery-anchored shopping centers.

This is because the shift in retail shopping to internet sales is adversely affecting the retail tenants’ sales, leading to retailers reconsidering their footprint and opting for store closures, thereby resulting in lesser demand for retail real estate space. Moreover, retailers unable to cope with competition are filing for bankruptcies. In fact, move outs, store closures and bankruptcies of retailers are likely to affect the company’s performance in the near term. Rate hike is another concern.

Currently, Regency has a Zacks Rank #4 (Sell). The stock has declined 18% compared with the industry’s descend of 13.6% over the past three months.



Stocks Worth a Look

A few better-ranked stocks from the REIT industry are Arbor Realty Trust (NYSE:ABR) , Extra Space Storage Inc. (NYSE:EXR) and Sotherly Hotels Inc. (NASDAQ:SOHO) , all three carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arbor Realty Trust’s Zacks Consensus Estimate for 2018 FFO per share has been revised 2.3% upward to 90 cents over the past month. Its share price has risen 7.9% in six months’ time.

Extra Space Storage’s FFO per share estimates for the current year inched up 1.6% to $4.57 in a month’s time. Its shares have gained 6.7% over the past six months.

Sotherly Hotels’ FFO per share estimates for 2018 have been revised approximately 1.9% upward to $1.05 over the past month. The stock has climbed 10% during the past six months.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



Arbor Realty Trust (ABR): Free Stock Analysis Report

Regency Centers Corporation (REG): Free Stock Analysis Report

Sotherly Hotels Inc. (SOHO): Free Stock Analysis Report

Extra Space Storage Inc (EXR): Free Stock Analysis Report

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.