Regency Centers' stock has underperformed due to elevated interest rates, but its operating results have been strong. The company operates open-air locations anchored by grocery stores, which helps drive foot traffic and protect against e-commerce pressure. Regency has a well-diversified tenant base, strong leasing rates, and a path for meaningful growth in the next two years.
Regency (REG) is set to gain from its ownership of premium shopping centers and a solid balance sheet. Yet, the efforts of online retailers to delve deeper into the grocery business pose concerns.