Regency’s Q2 Beat Driven By Higher-Than-Expected NOI

Analysts at JP Morgan reiterate their "neutral" rating on Regency Centers REG. The target price for REG is set to $36. JP Morgan says, “Wednesday evening, Regency Centers reported recurring 2Q FFO that came in $0.06 ahead of our estimate and $0.07 ahead of Bloomberg Consensus. As discussed below, we see the beat as largely being driven by higher NOI than we modeled. From an operational perspective, core stats continued to trend better than expected at the outset of the year (occupancy flat to slightly up, cash rent spreads about flat) and REG upped its guidance for the second consecutive quarter on the heels of these trends. “While we think part of increase was due to management initially setting the bar low (justifiable given the tough late 08 and 09 results), operating metrics seem to be bottoming which is an incremental positive,” the analysts add. More Analyst Ratings here