Well covered — grocery-anchored retail, rent spreads strong. A 4.08% yield on a $0.755 quarterly dividend, raised in December 2025 from $0.705, is covered on a Core Operating Earnings basis: Q2 Core Operating Earnings of $1.16 per share cover the $0.755 quarterly dividend, about a 65% payout. Same-property NOI rose 3.8% in Q2, same-property percent leased was 96.9%, and pro-rata net debt and preferred stock to TTM operating EBITDAre was 5.0×.
Key risk: Retail tenant churn — grocery anchors are defensive, but if small-shop demand cools or a major tenant fails, occupancy and rent spreads, not the balance sheet, give first.
Changes if: Core payout pushes well past ~65%, or same-property leased falls materially below 97%. The cushion, not the headline yield, is the tripwire.
- ✓FFO coverage check: Core Operating Earnings of $1.16 per share in Q2 2026 cover the $0.755 quarterly dividend — about 65% paid out. Regency reports Core Operating Earnings rather than AFFO; the payout basis is stated here.
- ✓Yield check: 4.08% indicated — $0.755/qtr × 4 at the $73.98 close on Oct. 23, 2026. Earned rent income, not a special or return of capital.
- ✓Balance-sheet check: Pro-rata net debt and preferred stock to TTM operating EBITDAre of 5.0× at June 30, 2026, at the low end of the company's 5.0×–5.5× target range, with same-property leased at 96.9%.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.