2114 GMT - Greg Chubb will start as Region CEO on March 9, prompting Jefferies to consider what his plans might look like. "The incoming CEO may reset expectations on strategy, earnings and development pipeline timing," analyst Andrew Dodds says. "We expect funds management expansion to be a key pillar, alongside faster capital recycling to lift portfolio quality." Jefferies highlights two opportunities to grow funds from operations/unit above current guidance. Region could refinance existing bank debt and its U.S. private placements. It could also buy back more stock. Jefferies notes Region's cost of equity of 6.9% right now is 240bps above the forecast FY 2026 weighted average cost of debt of 4.5%. "Therefore, the spread implies any incremental dollar of capital deployed into the buyback is accretive to earnings," says Jefferies. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 10, 2026 16:14 ET (21:14 GMT)
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