JACKSONVILLE, FL—Based on a recent meeting in Europe with executives from retail REIT Regency Centers Corp., analysts with RBC Capital Markets LLC say the company is well positioned to drive substantial cash flow and Funds from Operations share growth over the next five years.

RBC in its analysis says that it believes Regency shares to be “very attractive vs. those of the company's peer group over the next 12 months.”

Some of the key factors behind its outperform rating include the fact that the sale of non-core assets is essentially complete. “This pivot away from the dilutive sale of slow growth assets positions the company for strong and stable cash flow over the coming years,” RBC analysts state in their report.

They add that Regency Centers' management is looking for sustained same store NOI growth rate of more than 3% on the remaining portfolio, which is above the shopping center average. RBC Capital Markets also says that Regency will remain a leader on the development front in starts and deliveries over the next several years.

In addition, RBC Capital Markets praises Regency on its green-oriented initiatives. “An early focus on sustainability could position the company for ultimate green mandates. Regency appears well prepared as sustainability measures likely become required by tenants, consumers and even regulatory agencies,” RBC analysts say in the report.

Instant Insights /

Analyst Rates Regency REIT as 'Outperform'

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