Regency Centers Posts 7% Dividend Hike While Shares Near 52-Week High

REGREG

Regency Centers’ shares are trading at the upper end of their 52-week range but have declined about 1% over the past year, with analysts considering the REIT fairly valued. The company reported a most recent 7% annual dividend increase, underpinned by its grocery-anchored open-air shopping center portfolio.

1. Tax Treatment of Common Stock Distributions

Regency Centers Corporation has broken down its 2025 quarterly distributions on common shares, totaling $2.87 per share for the year. Each of the first three payments—$0.705 on April 2, July 2 and October 2—consisted of $0.695793 in ordinary dividends, including $0.02373 eligible for the 20% Section 199A deduction, and $0.007142 in non-taxable return of capital. The December 15 record date payment of $0.755 (paid January 6, 2026) included $0.74514 in ordinary dividends, $0.025413 for Section 199A, and $0.007648 in return of capital. Capital gain distributions were immaterial, amounting to just $0.03748 for all four payments.

2. Preferred Series A and B Distribution Allocations

Holders of Series A cumulative redeemable preferred stock received four quarterly distributions of $0.390625 each, totaling $1.5625 per share in 2025. Of that, $1.542092 was treated as ordinary dividends and $0.052592 qualified for the Section 199A deduction, with return of capital at $0.015828 for the year. Series B paid $0.3672 each quarter, totaling $1.4688 per share, including $1.449616 in ordinary dividends, $0.04944 in Section 199A-eligible amounts and $0.01488 in return of capital. No capital gain distributions were reported for either series.

3. Investor Considerations and Next Steps

Regency Centers emphasizes that these allocations reflect its best interpretation of federal tax rules and will assist shareholders in preparing 2025 tax filings. Because the treatment of return of capital and Section 199A-eligible dividends can influence taxable income and basis adjustments, investors should compare this summary with their brokerage statements. The company warns that future distributions’ tax characteristics may change, and shareholders are encouraged to consult their own tax advisors for personalized guidance.

Sources

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