Regency Centers Reports Third Quarter 2022 Results

JACKSONVILLE, Fla., Nov. 03, 2022 (GLOBE NEWSWIRE) — Regency Centers Corporation (“Regency” or the “Company”) (Nasdaq: REG) in the present day reported monetary and working outcomes for the interval ended September 30, 2022 and offered up to date 2022 earnings steerage. For the three months ended September 30, 2022 and 2021, Net Income was $0.51 per diluted share and $0.69 per diluted share, respectively.

Third Quarter 2022 Highlights

• Reported Nareit FFO of $1.01 per diluted share and Core Operating Earnings of $0.94 per diluted share for the third quarter
• Raised 2022 Nareit FFO steerage to a variety of $4.00 to $4.03 per diluted share
• Raised 2022 Core Operating Earnings steerage to a variety of $3.75 to $3.78 per diluted share, representing a 7% year-over-year improve on the midpoint excluding prior 12 months collections
• Increased Same Property NOI excluding lease termination charges and prior 12 months collections by 2.6% throughout the third quarter over the identical interval a 12 months in the past
• Increased Same Property % leased by 20 foundation factors sequentially to 94.7%, and Same Property small store % leased by 40 foundation factors sequentially to 91.4%
• Executed quarterly quantity of two.3 million sq. ft of comparable new and renewal leases throughout the third quarter at a blended money lease unfold of +7.0%
• Net challenge prices for Regency’s in-process growth and redevelopment initiatives had been roughly $398 million as of September 30, 2022
• Achieved pro-rata web debt-to-operating EBITDAre of 5.0x as of September 30, 2022
• In September, Moody’s Investors Service affirmed its Baa1 senior unsecured debt ranking for Regency and revised its outlook from steady to constructive
• Subsequent to quarter finish, on October 12, 2022, accomplished the acquisition of East Meadow Plaza in East Meadow, NY at a gross buy worth of $30 million at Regency’s share
• Subsequent to quarter finish, on November 2, 2022, Regency’s Board of Directors (the “Board”) declared a quarterly money dividend on the Company’s frequent inventory of $0.65 per share, a rise of 4% from the prior quarterly dividend

“We are pleased to report another quarter of solid results, and remain encouraged by continued robust tenant demand and overall operating trends. While the macroeconomic backdrop is more challenging today, Regency is well-positioned given the demographic profile of our shopping centers, our value creation expertise, and the strength of our balance sheet to weather economic storms,” mentioned Lisa Palmer, President and Chief Executive Officer. “With solid contractual rent growth, mark-to-market upside in our leases, room to further grow occupancy, and execution on our self-funded development and redevelopment strategy, we are positioned to continue to drive solid and sustainable growth.”

Financial Results

Net Income

• For the three months ended September 30, 2022, Net Income Attributable to Common Stockholders (“Net Income”) was $87.6 million, or $0.51 per diluted share, in comparison with Net Income of $117.4 million, or $0.69 per diluted share, for a similar interval in 2021.

Nareit FFO

• For the three months ended September 30, 2022, Nareit Funds From Operations (“Nareit FFO”) was $174.2 million, or $1.01 per diluted share, in comparison with $192.6 million, or $1.12 per diluted share, for a similar interval in 2021.
  • Nareit FFO within the third quarter of 2022 was favorably impacted by the gathering of revenues reserved throughout 2020 and 2021 of $2.8 million at Regency’s share, or $0.02 per diluted share.
  • Nareit FFO within the third quarter of 2022 additionally benefitted from the reversal of straight-line lease reserves of $4.6 million at Regency’s share, or $0.03 per diluted share, triggered by the conversion of some money foundation tenants again to accrual foundation accounting.

Core Operating Earnings

• For the three months ended September 30, 2022, Core Operating Earnings was $161.6 million, or $0.94 per diluted share, in comparison with $163.9 million, or $0.96 per diluted share, for a similar interval in 2021.

Portfolio Performance

Same Property NOI

• Third quarter 2022 Same Property Net Operating Income (“NOI”), excluding lease termination charges, decreased by 0.4% in comparison with the identical interval in 2021.
• Third quarter 2022 Same Property Net Operating Income (“NOI”), excluding lease termination charges and prior 12 months collections, elevated by 2.6% in comparison with the identical interval in 2021.
• Third quarter 2022 Same Property base lease elevated by 3.9% in comparison with the identical interval in 2021.

Leased Occupancy

• As of September 30, 2022, Regency’s wholly-owned portfolio plus its pro-rata share of co-investment partnerships, was 94.6% leased.
• As of September 30, 2022, Regency’s Same Property portfolio was 94.7% leased, a rise of 20 foundation factors sequentially and a rise of 90 foundation factors in comparison with September 30, 2021.
  • Same Property anchor % leased, which incorporates areas better than or equal to 10,000 sq. ft, was 96.7%, a rise of 10 foundation factors sequentially.
  • Same Property store % leased, which incorporates areas lower than 10,000 sq. ft, was 91.4%, a rise of 40 foundation factors sequentially.
• As of September 30, 2022, Regency’s Same Property portfolio was 92.3% commenced, a rise of 20 foundation factors sequentially and a rise of 80 foundation factors in comparison with September 30, 2021.

Leasing Activity

• During the three months ended September 30, 2022, Regency executed roughly 2.3 million sq. ft of comparable new and renewal leases at a blended money lease unfold of +7.0%.
• For the trailing twelve months, the Company executed roughly 7.1 million sq. ft of comparable new and renewal leases at a blended money lease unfold of +8.8%.

Capital Allocation and Balance Sheet

Developments and Redevelopments

• As of September 30, 2022, Regency’s in-process growth and redevelopment initiatives had estimated web challenge prices of roughly $398 million on the Company’s share, 55% of which has been incurred thus far.
• Subsequent to quarter finish, the Company commenced building at Town and Country Center in Los Angeles, CA. The challenge contains the redevelopment of a former Kmart constructing into new retail house and roughly 300 luxurious mid-rise residences.

Property Transactions

• Subsequent to quarter finish, on October 12, 2022, the Company accomplished the acquisition of East Meadow Plaza in East Meadow, NY at a product sales worth of $30 million.

Balance Sheet

• As of September 30, 2022, Regency had full capability out there underneath its $1.2 billion revolving credit score facility.
• As of September 30, 2022, Regency’s pro-rata web debt-to-operating EBITDAre ratio was 5.0x.
• On September 13, 2022, Moody’s Investors Service affirmed its Baa1 senior unsecured debt ranking on Regency and revised its outlook to constructive from steady.

Dividend

• On November 2, 2022, Regency’s Board declared a quarterly money dividend on the Company’s frequent inventory of $0.65 per share, representing a rise of 4% from the prior quarterly dividend.
• The dividend is payable on January 4, 2023, to shareholders of file as of December 16, 2022.

2022 Guidance

Regency Centers has up to date 2022 steerage, as summarized within the desk under. Please seek advice from the Company’s Earnings Presentation for extra element, in addition to within the third quarter 2022 supplemental package deal. All supplies are posted on the Company’s web site at buyers.regencycenters.com.

Conference Call Information

To focus on Regency’s third quarter outcomes and supply additional business updates, administration will host a convention name on Friday, November 4th, 2022, at 10:00 a.m. ET. Dial-in and webcast info is under.

Replay: Webcast Archive – Investor Relations web page underneath Events & Webcasts

About Regency Centers Corporation (Nasdaq: REG)

Regency Centers is a preeminent nationwide proprietor, operator, and developer of procuring facilities situated in suburban commerce areas with compelling demographics. Our portfolio contains thriving properties merchandised with extremely productive grocers, eating places, service suppliers, and best-in-class retailers that connect with their neighborhoods, communities, and clients. Operating as a completely built-in actual property firm, Regency Centers is a certified actual property funding belief (REIT) that’s self-administered, self-managed, and an S&P 500 Index member. For extra info, please go to RegencyCenters.com.

Reconciliation of Net Income Attributable to Common Stockholders to Nareit FFO and Core Operating Earnings – Actual (in 1000’s)

Same Property NOI is a key non-GAAP measure utilized by administration in evaluating the working efficiency of Regency’s properties. The Company supplies a reconciliation of Net Income Attributable to Common Stockholders to pro-rata Same Property NOI.

Reconciliation of Net Income Attributable to Common Stockholders to Pro-Rata Same Property NOI – Actual (in 1000’s)

Reported outcomes are preliminary and never ultimate till the submitting of the Company’s Form 10-Q with the SEC and, due to this fact, stay topic to adjustment.

The Company has printed forward-looking statements and extra monetary info in its third quarter 2022 supplemental package deal that will assist buyers estimate earnings. A duplicate of the Company’s third quarter 2022 supplemental package deal will probably be out there on the Company’s web site at buyers.regencycenters.com or by written request to: Investor Relations, Regency Centers Corporation, One Independent Drive, Suite 114, Jacksonville, Florida, 32202. The supplemental package deal accommodates extra detailed monetary and property outcomes together with monetary statements, an impressive debt abstract, acquisition and growth exercise, investments in partnerships, info pertaining to securities issued apart from frequent inventory, property particulars, a major tenant lease report and a lease expiration desk along with earnings and valuation steerage assumptions. The info offered within the supplemental package deal is unaudited and contains non-GAAP measures, and there might be no assurance that the knowledge is not going to differ from the ultimate info within the Company’s Form 10-Q for the interval ended September 30, 2022. Regency might, however assumes no obligation to, replace info within the supplemental package deal every now and then.

Non-GAAP Disclosure

We imagine these non-GAAP measures present helpful info to our Board of Directors, administration and buyers concerning sure traits referring to our monetary situation and outcomes of operations. Our administration makes use of these non-GAAP measures to match our efficiency to that of prior intervals for pattern analyses, functions of figuring out administration incentive compensation and budgeting, forecasting and planning functions.

We don’t take into account non-GAAP measures an alternative choice to monetary measures decided in accordance with GAAP, slightly they complement GAAP measures by offering further info we imagine to be helpful to our shareholders. The principal limitation of those non-GAAP monetary measures is they might exclude important expense and revenue objects which are required by GAAP to be acknowledged in our consolidated monetary statements. In addition, they replicate the train of administration’s judgment about which expense and revenue objects are excluded or included in figuring out these non-GAAP monetary measures. In order to compensate for these limitations, reconciliations of the non-GAAP monetary measures we use to their most straight comparable GAAP measures are offered. Non-GAAP monetary measures shouldn’t be relied upon in evaluating the monetary situation, outcomes of operations or future prospects of the Company.

Nareit FFO is a generally used measure of REIT efficiency, which the National Association of Real Estate Investment Trusts (“Nareit”) defines as web revenue, computed in accordance with GAAP, excluding features on sale and impairments of actual property, web of tax, plus depreciation and amortization, and after changes for unconsolidated partnerships and joint ventures. Regency computes Nareit FFO for all intervals offered in accordance with Nareit’s definition. Since Nareit FFO excludes depreciation and amortization and features on gross sales and impairments of actual property, it supplies a efficiency measure that, in comparison 12 months over 12 months, displays the impression on operations from traits in % leased, rental charges, working prices, acquisition and growth actions, and financing prices. This supplies a perspective of the Company’s monetary efficiency not instantly obvious from web revenue decided in accordance with GAAP. Thus, Nareit FFO is a supplemental non-GAAP monetary measure of the Company’s working efficiency, which doesn’t symbolize money generated from working actions in accordance with GAAP; and, due to this fact, shouldn’t be thought-about a substitute measure of money flows from operations. The Company supplies a reconciliation of Net Income Attributable to Common Stockholders to Nareit FFO.

Core Operating Earnings is an extra efficiency measure that excludes from Nareit FFO: (i) transaction associated revenue or bills; (ii) features or losses from the early extinguishment of debt; (iii) sure non-cash parts of earnings derived from above and under market lease amortization, straight-line rents, and amortization of mark-to-market of debt changes; and (iv) different quantities as they happen. The Company supplies a reconciliation of Net Income to Nareit FFO to Core Operating Earnings.

Forward-Looking Statements

Certain statements on this doc concerning anticipated monetary, business, authorized or different outcomes together with business and market situations, outlook and different comparable statements referring to Regency’s future occasions, developments, or monetary or operational efficiency or outcomes similar to our 2022 Guidance, are “forward-looking statements” made pursuant to the secure harbor provisions of the Private Securities Litigation Reform Act of 1995 and different federal securities legal guidelines. These forward-looking statements are recognized by way of phrases similar to “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “anticipate,” “guidance,” and different comparable language. However, the absence of those or comparable phrases or expressions doesn’t imply an announcement will not be forward-looking. While we imagine these forward-looking statements are cheap when made, forward-looking statements aren’t ensures of future efficiency or occasions and undue reliance shouldn’t be positioned on these statements. Although we imagine the expectations mirrored in any forward-looking statements are based mostly on cheap assumptions, we can provide no assurance these expectations will probably be attained, and it’s attainable precise outcomes might differ materially from these indicated by these forward-looking statements as a consequence of a wide range of dangers and uncertainties. Our operations are topic to quite a few dangers and uncertainties together with, however not restricted to, these danger components described in our SEC filings. When contemplating an funding in our securities, you must rigorously learn and take into account these dangers, along with all different info in our Annual Reports on Form 10-Okay, Quarterly Reports on Form 10-Q and our different filings and submissions to the SEC. If any of the occasions described within the danger components truly happen, our business, monetary situation or working outcomes, in addition to the market worth of our securities, may very well be materially adversely affected. Forward-looking statements are solely as of the date they’re made, and Regency undertakes no responsibility to replace its forward-looking statements besides as required by legislation. These dangers and occasions embrace, with out limitation:

Risk Factors Relating to Current Economic Conditions

Rising rates of interest, as we’ve seen in 2022, might adversely have an effect on the price of and our capacity to borrow, the valuation of our actual property, and our inventory worth. Current financial situations and challenges might adversely impression our tenants and, due to this fact, our capacity to lease house and the extent of lease we could possibly cost.

Risk Factors Related to Pandemics or different Health Crises

Pandemics or different well being crises, such because the COVID-19 pandemic, might adversely have an effect on our tenants’ monetary situation, the profitability of our properties, and our entry to the capital markets and will have a cloth antagonistic impact on our business, outcomes of operations, money flows and monetary situation.

Risk Factors Related to Operating Retail-Based Shopping Centers

Economic and market situations might adversely have an effect on the retail trade and consequently scale back our revenues and money stream, and improve our working bills. Shifts in retail traits, gross sales, and supply strategies between brick and mortar shops, e-commerce, residence supply, and curbside pick-up might adversely impression our revenues and money flows. Changing financial and retail market situations in geographic areas the place our properties are concentrated might scale back our revenues and money stream. In addition, labor challenges and provide delays and shortages as a consequence of a wide range of macroeconomic components, together with inflationary pressures, may have an effect on the retail trade. Our success is dependent upon the continued presence and success of our “anchor” tenants. A major proportion of our revenues are derived from smaller “shop space” tenants and our web revenue could also be adversely impacted if our smaller store tenants aren’t profitable. We could also be unable to gather balances due from tenants in chapter. Many of our prices and bills related to working our properties might stay fixed or improve, even when our lease revenue decreases. Compliance with the Americans with Disabilities Act and fireplace, security and different laws might have a detrimental impact on us.

Risk Factors Related to Real Estate Investments

Our actual property belongings might decline in worth and be topic to impairment losses which can scale back our web revenue. We face dangers related to growth, redevelopment and growth of properties. We face dangers related to the event of mixed-use business properties. We face dangers related to the acquisition of properties. We could also be unable to promote properties when desired due to market situations. Changes in tax legal guidelines may impression our acquisition or disposition of actual property.

Risk Factors Related to the Environment Affecting Our Properties

Climate change might adversely impression our properties straight, and will result in further compliance obligations and prices in addition to further taxes and costs. Geographic focus of our properties makes our business extra weak to pure disasters, extreme climate situations and local weather change. Costs of environmental remediation might impression our monetary efficiency and scale back our money stream.

Risk Factors Related to Corporate Matters

An elevated concentrate on metrics and reporting referring to environmental, social, and governance (“ESG”) components might impose further prices and expose us to new dangers. An uninsured loss or a loss that exceeds the insurance protection on our properties might topic us to lack of capital and income on these properties. Failure to draw and retain key personnel might adversely have an effect on our business and operations. The unauthorized entry, use, theft or destruction of tenant or worker private, monetary or different knowledge or of Regency’s proprietary or confidential info saved in our info methods or by third events on our behalf may impression our fame and model and expose us to potential legal responsibility and lack of revenues.

Risk Factors Related to Our Partnerships and Joint Ventures

We don’t have voting management over all the properties owned in our co-investment partnerships and joint ventures, so we’re unable to make sure that our aims will probably be pursued. The termination of our partnerships might adversely have an effect on our money stream, working outcomes, and our capacity to make distributions to inventory and unit holders.

Risk Factors Related to Funding Strategies and Capital Structure

Our capacity to promote properties and fund acquisitions and developments could also be adversely impacted by larger market capitalization charges and decrease NOI at our properties which can dilute earnings. We rely on exterior sources of capital, which is probably not out there sooner or later on favorable phrases or in any respect. Our debt financing might adversely have an effect on our business and monetary situation. Covenants in our debt agreements might limit our working actions and adversely have an effect on our monetary situation. Increases in rates of interest would trigger our borrowing prices to rise and negatively impression our outcomes of operations. Hedging exercise might expose us to dangers, together with the dangers {that a} counterparty is not going to carry out and that the hedge is not going to yield the financial advantages we anticipate, which can adversely have an effect on us. The rates of interest on our Unsecured Credit services in addition to on our variable price mortgages and rate of interest swaps would possibly change based mostly on modifications to the strategy by which LIBOR or its substitute price is decided.

Risk Factors Related to the Market Price for Our Securities

Changes in financial and market situations might adversely have an effect on the market worth of our securities. There is not any assurance that we’ll proceed to pay dividends at historic charges.

Risk Factors Relating to the Company’s Qualification as a REIT

If the Company fails to qualify as a REIT for federal revenue tax functions, it will be topic to federal revenue tax at common company charges. Dividends paid by REITs usually don’t qualify for lowered tax charges. Certain overseas stockholders could also be topic to U.S. federal revenue tax on achieve acknowledged on a disposition of our frequent inventory if we don’t qualify as a “domestically controlled” REIT. Legislative or different actions affecting REITs might have a detrimental impact on us. Complying with REIT necessities might restrict our capacity to hedge successfully and will trigger us to incur tax liabilities.

Risk Factors Related to the Company’s Common Stock

Restrictions on the possession of the Company’s capital inventory to protect its REIT standing might delay or forestall a change in management. The issuance of the Company’s capital inventory might delay or forestall a change in management. Ownership within the Company could also be diluted sooner or later.

Christy McElroy
904 598 7616
[email protected]