Our analysis is based on comparing Regency Centers Corp. with the following peers – Pennsylvania Real Estate Investment Trust, Pebblebrook Hotel Trust, Cousins Properties Incorporated and New York REIT, Inc. (PEI-US, PEB-US, CUZ-US and NYRT-US).
Regency Centers Corp.’s dividend yield is 3.89 percent and its dividend payout is 322.28 percent. This compares to a peer average dividend yield of 4.15 percent and a payout level of 117.83 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 33 out of a possible score of 100, points to unsustainability as well.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), REG-US paid a medium quality dividend, which represents a yield of 3.09% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 2 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), REG-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.61x), investing cash flow (coverage of -3.36x), issuance cash flow (coverage of 2.68x) and twelve-month prior cash (coverage of 0.16x), for a total dividend coverage of 1.11x.
REG-US’s issuance cash flow includes outflows from net share buybacks (coverage of -1.21x). Thus, the total coverage including share buybacks is 2.32x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||3.88||3.95||2.89||2.75||2.8||3.89|
|Dividend Payout (%)||-569.93||240.35||156.73||197.05||209.84||322.28|
A complete list of metrics and analysis is available on the company page.
Regency Centers Corp. operates as a real estate investment trust, which engages in the ownership, management, leasing, acquisition, and development of retail shopping centers. Its portfolio includes thriving properties merchandised with productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. The company was founded by Martin Edward Stein Sr. and Joan Wellhouse Newton in 1963 and is headquartered in Jacksonville, FL.
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