| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 6.9x | 17.3x | Top tier | |
Growth | 64 | 8.3% | 7.1% | Around median | |
Quality | 43 | 8.5% | 4.5% | Around median | |
Safety | 51 | 3.6x | 2.6x | Around median | |
Capital Return | 71 | 11.13% | 0.06% | Top tier | |
Momentum | 36 | -9.4% | -1.6% | Bottom tier | |
Sentiment | 2 | 1 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Regency Centers Corporation is a real estate investment trust that owns, operates, and develops open-air shopping centers focused on grocery-anchored neighborhood and community centers. Income generation depends on rents, periodic rent increases, property expense recoveries, and converting signed leases into occupied, rent-paying spaces, along with approximately $35 million in additional annual income from solar energy, electric vehicle charging, fees, and marketing events. The tenant mix is concentrated in essential goods, services, convenience, and value retailers, while medical and fitness businesses represent approximately 12% of annual base rent.
In Q2 fiscal 2026 ended 2026-06-30, revenue reached $414.8 million, up 8.9% year over year from $380.8 million in Q2 fiscal 2025, while net income was $115.8 million and diluted earnings per share were $0.61. Gross margin was 18.5% and operating margin was 36.7%, compared with 75.2% and 73.8%, respectively, a year earlier, while operating cash flow reached $281.3 million. At the portfolio level, the same-property leased rate was approximately 97%, rent-paying occupancy was 94.5%, and same-property net operating income grew 3.8%.
During the last 12 months through 2026-06-30, the company generated revenue of $1.6 billion, net income of $556.2 million, operating cash flow of $856.6 million, and free cash flow of $210.9 million. In Q2 fiscal 2026, it held $191.6 million in cash and investments against total debt of $5.5 billion, and diluted shares totaled 183.4 million compared with 182.0 million a year earlier. These figures reflect revenue growth and strong cash generation, alongside a sharp decline in calculated margins and a balance sheet that relies heavily on debt.
Q2 FY2026
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-06-30
When: 2026-10-29
Revenue growth at the 8.9% threshold
Gross margin at the 18.5% threshold
Operating margin at the 36.7% threshold
When: fiscal 2026
Core operating earnings per share growth above the 5% threshold
The no-growth value is $7.38 at a discount rate of 8.9%; this method measures the value of current after-tax operating earnings if they remain constant forever, and the models used the 10-year U.S. Treasury yield of 5.18% as of 2026-09-24. No numerical value is available for the analyst target or the discounted cash flow model, but the analyst consensus is “Buy,” while the valuation pillar in the EL7 score ranks the company 3 out of 37 within the industry with a score of 95 out of 100. Analyst targets inherently tend toward optimism because they price in expected growth, while the discounted cash flow model tends to be conservative because it values the cash the company generates; the no-growth value isolates what remains if growth stops. Therefore, the $7.38 value remains a strict reference for a scenario of flat operating earnings, and the degree of agreement or disagreement among the methods cannot be measured numerically in the absence of calculated values for the other methods.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
Growth in Q2 fiscal 2026 ended 2026-06-30 came from strong leasing, higher rent-paying occupancy, and improved expense recoveries, while same-property net operating income grew 3.8%. The same-property leased rate reached approximately 97%, tenant retention was 84%, and cash rent spreads exceeded 10%. Accordingly, management expects total net operating income growth in the mid-6% range and core operating earnings per share growth of more than 5% for fiscal 2026.
Projects in progress total $680 million, are 80% leased, and target a blended yield of 9%. Management expects development and redevelopment starts to approach $400 million in fiscal 2026, after starting more than $140 million of projects year to date. Among the most prominent is the $55 million Berkman at Durbin Park, anchored by Whole Foods and TJ Maxx.
Operating cash flow reached $856.6 million during the last 12 months through 2026-06-30, equal to 154% of net income of $556.2 million. Free cash flow reached $210.9 million during the same period, while Q2 fiscal 2026 recorded operating cash flow of $281.3 million. In contrast, debt reached $5.5 billion and cash and investments totaled $191.6 million at quarter-end, so the strength of cash conversion should be evaluated alongside the size of the obligations.
A major electric vehicle charging station operator decided not to open 11 locations, but it will continue operating approximately 15 locations and paying rent through the end of fiscal 2026. Regency received a termination fee equal to four years of rent and began negotiations to re-lease 8 of the 11 locations, limiting the impact but not eliminating re-leasing risk. In the grocery sector, management said the overlap of Kroger centers within its portfolio is immaterial and limited to approximately three centers in Columbus, and that it does not own Albertsons centers in the portfolio.
Gross margin was 18.5% in Q2 fiscal 2026 ended 2026-06-30, compared with 75.2% in the corresponding quarter of fiscal 2025, a decline of 56.7 percentage points. Operating margin was also 36.7% compared with 73.8% a year earlier, a decrease of 37.1 percentage points. This occurred despite revenue growth of 8.9% to $414.8 million, so the sustainability of revenue growth will depend on the company's ability to stabilize operating profitability in subsequent reports.
Investors should monitor whether revenue growth maintains the 8.9% level recorded in Q2 fiscal 2026 and whether operating margin improves from 36.7%. Progress on the $680 million project pipeline and its 80% leased rate will also be important in assessing the future contribution from development. The announcement will also test the fiscal 2026 outlook for total net operating income growth in the mid-6% range and core operating earnings per share growth of more than 5%.