Regency Centers Corp. said it expects to write off $7 million to $9 million in costs for the fourth quarter of 2020 because of decisions not to pursue certain projects.
The Jacksonville-based shopping center developer said that includes about $5.3 million for a project in San Francisco.
Regency also said it sold five shopping centers in the fourth quarter for a gross price of $77.8 million.
Regency operated 414 properties across the country at the end of the third quarter.
“An extensive and thoughtful review of our investment pipeline has helped us make the most appropriate decisions with regard to each of our projects through the lens of the current environment, as we pivot toward a post-COVID world,” CEO Lisa Palmer said in a news release.
Regency is scheduled to report fourth-quarter results Feb. 11.
Compass Point analyst Floris van Dijkum upgraded his rating on Regency from “neutral” to “buy” ahead of the earnings report.
He also raised his price target on the stock from $50 to $54, with the stock trading at $46.93 at the time of his Jan. 25 report.
“We believe that Regency's strong balance sheet and high quality grocery anchored portfolio deserve a premium valuation to peers,” van Dijkum said in his research note.