Regency Centers Debt
| REG Stock | USD 74.24 0.22 0.30% |
Regency Centers holds a debt-to-equity ratio of 0.636. At this time, Regency Centers' Short Term Debt is most likely to increase significantly in the upcoming years. The Regency Centers' current Debt To Equity is estimated to increase to 1.06, while Short and Long Term Debt is projected to decrease to roughly 130 M. . Regency Centers' financial risk is the risk to Regency Centers stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Regency Centers' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Regency Centers' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Regency Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Regency Centers' stakeholders.
Regency Centers Quarterly Net Debt |
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For most companies, including Regency Centers, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Regency Centers, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Regency Centers' management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 2.0596 | Book Value 36.14 | Operating Margin 0.3689 | Profit Margin 0.271 | Return On Assets 0.0274 |
Given that Regency Centers' debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Regency Centers is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Regency Centers to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Regency Centers is said to be less leveraged. If creditors hold a majority of Regency Centers' assets, the Company is said to be highly leveraged.
At this time, Regency Centers' Non Current Liabilities Other is most likely to increase significantly in the upcoming years. Regency |
Regency Centers Bond Ratings
Regency Centers financial ratings play a critical role in determining how much Regency Centers have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Regency Centers' borrowing costs.| Piotroski F Score | 8 | Strong | View |
| Beneish M Score | (0.67) | Possible Manipulator | View |
Regency Centers Debt to Cash Allocation
Many companies such as Regency Centers, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Regency Centers has 4.8 B in debt with debt to equity (D/E) ratio of 0.64, which is OK given its current industry classification. Regency Centers has a current ratio of 0.93, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Regency to invest in growth at high rates of return. Regency Centers Total Assets Over Time
Regency Centers Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Regency Centers uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Regency Centers Debt Ratio | 51.0 |
Regency Centers Corporate Bonds Issued
Most Regency bonds can be classified according to their maturity, which is the date when Regency Centers has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Regency Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Regency Centers Use of Financial Leverage
Regency Centers' financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Regency Centers' total debt position, including all outstanding debt obligations, and compares it with Regency Centers' equity. Financial leverage can amplify the potential profits to Regency Centers' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Regency Centers is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 4.8 B | 5 B | |
| Net Debt | 4.7 B | 4.9 B | |
| Long Term Debt | 4 B | 2.5 B | |
| Short Term Debt | 396 M | 754.4 M | |
| Short and Long Term Debt | 136.8 M | 130 M | |
| Long Term Debt Total | 4.3 B | 3.6 B | |
| Net Debt To EBITDA | 6.04 | 3.82 | |
| Debt To Equity | 0.59 | 1.06 | |
| Interest Debt Per Share | 24.48 | 19.19 | |
| Debt To Assets | 0.33 | 0.51 | |
| Long Term Debt To Capitalization | 0.35 | 0.51 | |
| Total Debt To Capitalization | 0.37 | 0.52 | |
| Debt Equity Ratio | 0.59 | 1.06 | |
| Debt Ratio | 0.33 | 0.51 | |
| Cash Flow To Debt Ratio | 0.17 | 0.10 |
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When determining whether Regency Centers is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Regency Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Regency Centers Stock. Highlighted below are key reports to facilitate an investment decision about Regency Centers Stock:Check out the analysis of Regency Centers Fundamentals Over Time. For more detail on how to invest in Regency Stock please use our How to Invest in Regency Centers guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Retail REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Regency Centers. If investors know Regency will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Regency Centers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.08 | Dividend Share 2.68 | Earnings Share 2.12 | Revenue Per Share 8.113 | Quarterly Revenue Growth 0.089 |
The market value of Regency Centers is measured differently than its book value, which is the value of Regency that is recorded on the company's balance sheet. Investors also form their own opinion of Regency Centers' value that differs from its market value or its book value, called intrinsic value, which is Regency Centers' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Regency Centers' market value can be influenced by many factors that don't directly affect Regency Centers' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Regency Centers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Regency Centers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Regency Centers' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.