Financial Data and Key Metrics Changes - Revenue from services increased to $1,161 million, up 15% from the prior corresponding period [16] - Underlying EBITDA rose to $125.8 million, a 17% increase [16] - Underlying net profit after tax increased by 37% to $53.4 million [16] - Net operating cash flow was $306.1 million, up 21% [16] - The company ended the year with a net cash position of $192.5 million, a 197% increase from the prior year [26] Business Line Data and Key Metrics Changes - Average occupancy in mature homes increased to 95.6%, up from 94.1% in the prior period [17] - Total average care minutes per resident per day increased from 210.5 minutes to 226.7 minutes [17][23] - Staff costs increased by $113 million or 15%, driven by additional direct care hours and wage increases [23] Market Data and Key Metrics Changes - 26.5% of Australians aged 85 and over accessed residential aged care during FY24 [6] - An estimated 9,300 net new beds are needed each year for the next 20 years to meet demand [6] - Only 6,546 net new beds were added across the four years to FY24, indicating a supply shortfall [6] Company Strategy and Development Direction - The company aims to reach a target of 10,000 residential aged care beds by FY28, up from approximately 7,600 beds [46] - The strategy includes disciplined acquisitions, greenfield and brownfield developments, and refurbishment of existing homes [40][46] - The company plans to open two to three greenfield developments per year [7][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the New Aged Care Act, which is expected to commence on 01/2025, and its implications for funding and care standards [12][14] - The company is well-positioned to meet the increasing demand for aged care services due to demographic trends and government support [7][56] - Management expressed confidence in the value of current service packages and the ability to adapt to changes in the regulatory environment [59] Other Important Information - The company completed the acquisition of four premium homes from Rockpool, adding 600 beds to its portfolio [3][38] - The average incoming room price increased by over 12% during the year, reflecting adjustments to the new maximum rates [31][62] - The company has a robust governance structure with a majority independent board and established liquidity management policies [14] Q&A Session Summary Question: Transition to health from extra services - Management expressed confidence in the value of current packages and plans to transition most services into bundles while ensuring the value exceeds the price [59][60] Question: Expectations for RAD prices - Management noted that the recent increase in RAD prices was a correction after a long period of stagnation, with expectations for mid to high single-digit growth in the coming year [61][64] Question: Occupancy expectations for FY26 - Management indicated that while they aim for occupancy above 95%, achieving 100% is not feasible due to operational constraints [68][69] Question: Staff expenses as a percentage of revenue - Management clarified that staff expenses are expected to increase slightly in FY26, influenced by government funding decisions [70][71] Question: CapEx expectations for FY26 - Management projected CapEx to be around $100 million for FY26, reflecting ongoing investments in greenfield developments and refurbishments [72] Question: Outlook for FY26 and RAD retention - Management indicated that while base business EBITDA margins may remain flat, RAD retention will be crucial for growth [74][77] Question: Resident profile and RAD penetration - Management expects the resident profile to remain stable, with potential increases in RAD-paying residents due to recent acquisitions [79]

Financial Data and Key Metrics Changes - Revenue from services increased to $1,161 million, up 15% from the prior corresponding period [17] - Underlying EBITDA rose to $125.8 million, a 17% increase [17] - Underlying net profit after tax reached $53.4 million, up 37% [17] - Net operating cash flow improved to $306.1 million, a 21% increase [17] - The company ended the year with a net cash position of $192.5 million, a 197% increase from the prior year [26] Business Line Data and Key Metrics Changes - Average occupancy in mature homes increased to 95.6%, up from 94.1% in the prior period [18] - Total average care minutes per resident per day increased from 210.5 minutes to 226.7 minutes [18] - Staff costs increased by $113 million or 15%, primarily due to additional direct care hours and wage increases [23] Market Data and Key Metrics Changes - 26.5% of Australians aged 85 and over accessed residential aged care during FY24 [6] - An estimated 9,300 net new beds are needed each year for the next 20 years to meet demand [6] - Only 6,546 net new beds were added across the four years to FY24, well below the required growth [6] Company Strategy and Development Direction - The company aims to reach a target of 10,000 residential aged care beds by FY28, up from approximately 7,600 beds [46] - The strategy includes disciplined acquisitions, greenfield and brownfield developments, and refurbishment of existing homes [41] - The company plans to open two to three greenfield developments per year over the medium term [7] Management Comments on Operating Environment and Future Outlook - The management highlighted the importance of the New Aged Care Act, expected to commence on 01/2025, which aims to improve funding and care standards [13] - The company is well-positioned to meet the increasing demand for aged care services due to demographic trends and government support [57] - Management expressed confidence in the value of current service packages and the ability to transition to new funding models [60] Other Important Information - The company completed the acquisition of four premium homes from Rockpool, adding 600 beds to its portfolio [3] - The average incoming room price increased by over 12% during the year, reflecting adjustments to the new maximum rates [31] - The company has a robust governance structure with a majority independent board and established liquidity management policies [15] Q&A Session Summary Question: Transition to health from extra services - Management expressed confidence in the value of current packages and plans to transition most services into bundles while ensuring the value exceeds the price [60] Question: Expectations for RAD prices - Management noted that the recent increase in RAD prices was a correction due to the lifting of the soft cap and indicated potential for further increases, estimating mid to high single-digit growth in the next year [62][66] Question: Occupancy expectations for FY26 - Management indicated that while they aim for occupancy above 95%, achieving 100% is not feasible due to operational constraints [69] Question: Staff expenses as a percentage of revenue - Management expects staff expenses to increase slightly in FY26, influenced by government funding decisions [71] Question: CapEx expectations for FY26 - Management projected CapEx around $100 million for FY26, reflecting ongoing investments in greenfield developments and refurbishments [72] Question: Resident profile and RAD penetration - Management anticipates stability in the resident profile, with the Rockpool acquisition expected to increase the number of RAD-paying residents [80]

Financial Performance - Revenue from services increased by 145% to $11613 million[42] - Underlying EBITDA increased by 174% to $1258 million[42] - Underlying NPAT increased by 373% to $534 million[42] - Statutory NPAT increased significantly by 3286% to $490 million[42] - Net operating cash flow increased by 213% to $3061 million[42] - Net cash position improved substantially by 1966% to $1925 million[42] Operational Highlights - Mature homes average occupancy increased from 941% to 956%[40, 42] - Average overall star rating improved from 362 to 378[42] - Average care minutes per resident per day increased from 2105 minutes to 2267 minutes[42] Market and Strategy - The company is targeting 10000 beds through acquisitions and developments[103] - The company acquired or is in the process of acquiring approximately 1500 high-quality beds[102, 105] - The company is targeting margin expansion in the future[102, 105]

Overview of Regency Centers - Regency Centers (NASDAQ:REG) is a large-cap shopping center REIT with over 57 million square feet of retail space across the USA [4] - The company has historically traded at a premium to the sector, but recent strong performance has attracted attention [1][2] Recent Performance - Regency reported a notable 7.4% same-store NOI growth and 9.4% FFO/share growth in the second quarter [7] - Occupancy rates have surpassed 96%, indicating strong property-level performance [8] - The company has successfully increased rental rates as occupancy rose, contributing to same-store NOI growth [10] Leasing Success - Regency achieved 19.3% GAAP leasing spreads and 10% cash leasing spreads, with new leases at 27.7% GAAP and renewals at 17.2% GAAP [21] - The company has $38 million in Signed-Not-Occupied (SNO) leases, representing about $0.21 per share in potential upside [31] - Compared to peers, Regency's leasing translates more effectively into growth metrics, with a significant difference in renewal lease terms [30][24] Valuation and Market Position - Regency is trading at 18.9X forward AFFO and 95% of net asset value, suggesting it may be undervalued given its operational excellence [18] - Despite the growth, the stock price has only increased by 15% over the past decade, indicating a disconnect between fundamentals and market valuation [15][17] - The company’s operational excellence justifies some premium, but it still faces competition from peers with similar growth potential [20] Industry Context - The shopping center sector has seen strong leasing activity, but overall same-store NOI growth has been muted across the industry [2] - Many peers are still dealing with the effects of long-term leases signed during less favorable market conditions, which hampers their growth [28][29] - The retail environment has improved since 2018, but the timing of lease expirations and renewals will impact future growth for many shopping center REITs [27][42]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents unaudited consolidated financial statements for Regency Centers Corporation and L.P. for Q2 2025, detailing balance sheets, operations, and cash flows Consolidated Balance Sheet Highlights (Regency Centers Corporation) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $12,730,474 | $12,391,961 | | Total Liabilities | $5,873,534 | $5,491,654 | | Total Equity | $6,856,940 | $6,900,307 | - Total assets increased by **$338.5 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in net real estate investments and cash[16](index=16&type=chunk) - Total liabilities increased by **$381.9 million**, mainly due to an increase in notes payable, net[16](index=16&type=chunk) Consolidated Statements of Operations Highlights (Regency Centers Corporation) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $380,848 | $357,250 | $761,760 | $721,102 | | Total Operating Expenses | $235,218 | $233,241 | $470,099 | $467,182 | | Net Income | $108,349 | $104,929 | $220,202 | $217,587 | | Net Income Attributable to Common Shareholders | $102,608 | $99,255 | $208,782 | $205,616 | | Diluted EPS | $0.56 | $0.54 | $1.15 | $1.12 | - Total revenues increased by **$23.6 million** (**6.6%**) for the three months ended June 30, 2025, and by **$40.7 million** (**5.6%**) for the six months ended June 30, 2025, compared to the prior year periods[18](index=18&type=chunk) - Net income attributable to common shareholders increased by **$3.35 million** (**3.4%**) for the three months and **$3.17 million** (**1.5%**) for the six months ended June 30, 2025, year-over-year[18](index=18&type=chunk) Consolidated Statements of Comprehensive Income Highlights (Regency Centers Corporation) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $108,349 | $104,929 | $220,202 | $217,587 | | Other Comprehensive (Loss) Income | $(2,216) | $683 | $(6,415) | $6,790 | | Comprehensive Income Attributable to the Company | $103,948 | $103,338 | $209,594 | $218,885 | - Other comprehensive income shifted from a gain of **$683 thousand** in Q2 2024 to a loss of **$2.2 million** in Q2 2025, primarily due to changes in the fair value of derivative instruments[21](index=21&type=chunk) Consolidated Statements of Equity Highlights (Regency Centers Corporation) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Shareholders' Equity | $6,677,872 | $6,724,146 | | Total Equity | $6,856,940 | $6,900,307 | - Total shareholders' equity decreased by **$46.3 million** from December 31, 2024, to June 30, 2025, mainly due to distributions in excess of net income and accumulated other comprehensive loss[16](index=16&type=chunk)[27](index=27&type=chunk) - Common stock shares issued and outstanding increased from **181,361,454** at December 31, 2024, to **181,550,531** at June 30, 2025[16](index=16&type=chunk) Consolidated Statements of Cash Flows Highlights (Regency Centers Corporation) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $405,079 | $371,214 | | Net Cash Used in Investing Activities | $(372,693) | $(114,143) | | Net Cash Provided by (Used in) Financing Activities | $60,549 | $(268,502) | | Net Increase (Decrease) in Cash | $92,935 | $(11,431) | | Cash at End of Period | $154,819 | $79,923 | - Net cash provided by operating activities increased by **$33.9 million**, primarily due to timing of receipts and payments and increased distributions from real estate partnerships[184](index=184&type=chunk)[185](index=185&type=chunk) - Net cash used in investing activities significantly increased by **$258.6 million**, driven by higher acquisitions of operating real estate, increased real estate development and capital improvements, and lower proceeds from property sales[184](index=184&type=chunk)[186](index=186&type=chunk) - Net cash provided by financing activities saw a substantial increase of **$329.1 million**, shifting from a net use in 2024 to a net provision in 2025, mainly due to no common share repurchases in 2025 (vs. **$200M** in 2024) and proceeds from new unsecured public debt[191](index=191&type=chunk) Consolidated Balance Sheet Highlights (Regency Centers, L.P.) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $12,730,474 | $12,391,961 | | Total Liabilities | $5,873,534 | $5,491,654 | | Total Capital | $6,856,940 | $6,900,307 | - The assets and liabilities of Regency Centers, L.P. are identical to those of Regency Centers Corporation, reflecting the Parent Company's consolidation of the Operating Partnership[11](index=11&type=chunk)[32](index=32&type=chunk) - Total capital for the Operating Partnership decreased by **$43.4 million**, mirroring the change in total equity for the Parent Company[32](index=32&type=chunk) Consolidated Statements of Operations Highlights (Regency Centers, L.P.) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $380,848 | $357,250 | $761,760 | $721,102 | | Total Operating Expenses | $235,218 | $233,241 | $470,099 | $467,182 | | Net Income | $108,349 | $104,929 | $220,202 | $217,587 | | Net Income Attributable to Common Unit Holders | $103,194 | $99,856 | $210,010 | $206,859 | | Diluted EPU | $0.56 | $0.54 | $1.15 | $1.12 | - The Operating Partnership's statements of operations are largely consistent with the Parent Company's, reflecting the consolidated business model[34](index=34&type=chunk) - Net income attributable to common unit holders increased by **$3.34 million** (**3.3%**) for the three months and **$3.15 million** (**1.5%**) for the six months ended June 30, 2025, year-over-year[34](index=34&type=chunk) Consolidated Statements of Comprehensive Income Highlights (Regency Centers, L.P.) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $108,349 | $104,929 | $220,202 | $217,587 | | Other Comprehensive (Loss) Income | $(2,216) | $683 | $(6,415) | $6,790 | | Comprehensive Income Attributable to the Partnership | $104,521 | $103,943 | $210,781 | $220,167 | - Other comprehensive income for the Operating Partnership also shifted from a gain to a loss, consistent with the Parent Company, reflecting the consolidated nature of their financial reporting[37](index=37&type=chunk) Consolidated Statements of Capital Highlights (Regency Centers, L.P.) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Partners' Capital | $6,716,231 | $6,764,890 | | Total Capital | $6,856,940 | $6,900,307 | - Total capital for the Operating Partnership decreased by **$43.4 million** from December 31, 2024, to June 30, 2025, primarily due to distributions to partners and accumulated other comprehensive loss[32](index=32&type=chunk)[43](index=43&type=chunk) - The General Partner's common units decreased, while limited partners' common units also saw a slight decrease, reflecting repurchases and exchanges[32](index=32&type=chunk)[43](index=43&type=chunk) Consolidated Statements of Cash Flows Highlights (Regency Centers, L.P.) | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $405,079 | $371,214 | | Net Cash Used in Investing Activities | $(372,693) | $(114,143) | | Net Cash Provided by (Used in) Financing Activities | $60,549 | $(268,502) | | Net Increase (Decrease) in Cash | $92,935 | $(11,431) | | Cash at End of Period | $154,819 | $79,923 | - The cash flow activities for Regency Centers, L.P. are identical to those of Regency Centers Corporation, as the Operating Partnership conducts all operating, investing, and financing activities[46](index=46&type=chunk)[47](index=47&type=chunk)[129](index=129&type=chunk) [Notes to Consolidated Financial Statements](index=22&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Organization and Significant Accounting Policies](index=22&type=section&id=1.%20Organization%20and%20Significant%20Accounting%20Policies) - Regency Centers Corporation operates as a REIT and is the general partner of Regency Centers, L.P., owning approximately **99.4%** of Common Units and all Preferred Units as of June 30, 2025[7](index=7&type=chunk)[49](index=49&type=chunk)[58](index=58&type=chunk) - The Company's consolidated portfolio includes **380 wholly-owned/controlled properties** and partial interests in **103 unconsolidated properties** through real estate partnerships as of June 30, 2025[50](index=50&type=chunk)[59](index=59&type=chunk) - The Company has significant geographic concentrations in California (**23.1%**), Florida (**20.5%**), and the New York-Newark-Jersey City area (**12.5%**) of aggregate annualized base rent, making these areas susceptible to localized adverse events[55](index=55&type=chunk) VIE Assets and Liabilities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total Assets | $534,483 | $363,609 | | Total Liabilities | $213,065 | $80,059 | [2. Real Estate Investments](index=26&type=section&id=2.%20Real%20Estate%20Investments) Property Acquisitions (Six months ended June 30, 2025) | Property Name | City/State | Ownership | Purchase Price (in thousands) | Debt Assumed (in thousands) | | :-------------------- | :---------------- | :-------- | :---------------------------- | :-------------------------- | | Putnam Plaza | Carmel Hamlet, NY | 100% | $31,000 | $16,749 | | Orange Meadows | Orange, CT | 100% | $4,200 | — | | Brentwood Place | Nashville, TN | 100% | $118,500 | $40,060 | | Armonk Square | Armonk, NY | 20% | $26,250 | $11,884 | | **Total Acquisitions** | | | **$179,950** | **$68,693** | - In July 2025, the Company completed a **$357 million** acquisition of five operating properties in Orange County, California, funded by Operating Partnership units and assumed mortgage debt[69](index=69&type=chunk) [3. Property Dispositions and Assets Held for Sale](index=26&type=section&id=3.%20Property%20Dispositions%20and%20Assets%20Held%20for%20Sale) Property Dispositions (Six months ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Net proceeds from sale of real estate investments | $7,165 | $92,159 | | (Loss) Gain on sale of real estate, net of tax | $(193) | $22,484 | | Number of operating properties sold | 1 | 3 | - The Company recognized a **$1.3 million** provision for impairment of real estate during the six months ended June 30, 2025, including a **$0.7 million** charge for an operating property held for sale[71](index=71&type=chunk) - As of June 30, 2025, one operating property and one land parcel were classified as held for sale, with total assets of **$15.55 million**[72](index=72&type=chunk) [4. Other Assets](index=27&type=section&id=4.%20Other%20Assets) Components of Other Assets (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Goodwill | $166,739 | $166,739 | | Investments | $138,087 | $51,820 | | Prepaid and other | $56,451 | $40,240 | | Derivative assets | $8,402 | $12,781 | | Total Other Assets | $386,473 | $289,046 | - Total other assets increased by **$97.4 million**, primarily due to a significant increase in investments, including approximately **$90 million** in commercial time deposits during Q2 2025[73](index=73&type=chunk) [5. Notes Payable and Unsecured Credit Facilities](index=27&type=section&id=5.%20Notes%20Payable%20and%20Unsecured%20Credit%20Facilities) Debt Outstanding (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Fixed rate mortgage loans | $366,886 | $337,703 | | Variable rate mortgage loans | $282,311 | $282,117 | | Fixed rate unsecured debt | $4,119,985 | $3,723,880 | | Unsecured credit facility | $30,000 | $65,000 | | **Total Debt Outstanding** | **$4,799,182**| **$4,408,700** | - Total debt outstanding increased by **$390.5 million** from December 31, 2024, to June 30, 2025[74](index=74&type=chunk) - On May 13, 2025, the Company issued **$400 million** of senior unsecured notes due 2032 with a **5.0%** coupon[74](index=74&type=chunk) - As of June 30, 2025, **96.5%** of variable rate debt is fixed through interest rate swaps[74](index=74&type=chunk) Scheduled Principal Payments and Maturities (in thousands) | Year | Total (in thousands) | | :--- | :------------------- | | 2025 | $271,117 | | 2026 | $358,295 | | 2027 | $758,866 | | 2028 | $393,108 | | 2029 | $524,906 | | Beyond 5 Years | $2,533,640 | [6. Derivative Instruments](index=29&type=section&id=6.%20Derivative%20Instruments) - The Company uses interest rate swaps to hedge interest rate risk, not for speculative purposes, and only with high-credit-rated counterparties[76](index=76&type=chunk)[78](index=78&type=chunk) Interest Rate Derivatives Outstanding (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Notional amount | $301,885 | $301,444 | | Number of instruments | 15 | 14 | | Derivative assets | $8,402 | $12,781 | | Derivative liabilities | $(1,735) | $(423) | - Changes in the fair value of cash flow hedges are recorded in Accumulated Other Comprehensive Income (AOCI) and reclassified to earnings when hedged interest payments affect earnings[79](index=79&type=chunk) [7. Leases](index=30&type=section&id=7.%20Leases) - Substantially all of the Company's leases are classified as operating leases, with income comprising both fixed and variable components[81](index=81&type=chunk) Lease Income Disaggregation (in thousands) | Lease Income Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Fixed and in-substance fixed lease income | $271,608 | $256,991 | $538,344 | $513,616 | | Variable lease income | $93,762 | $86,082 | $192,141 | $178,372 | | Total Lease Income | $369,105 | $347,845 | $740,184 | $700,951 | - Total lease income increased by **$21.3 million** (**6.1%**) for the three months and **$39.2 million** (**5.6%**) for the six months ended June 30, 2025, year-over-year[82](index=82&type=chunk) [8. Fair Value Measurements](index=31&type=section&id=8.%20Fair%20Value%20Measurements) Fair Value of Financial Instruments (in thousands) | Instrument | Carrying Amount (June 30, 2025) | Fair Value (June 30, 2025) | Carrying Amount (Dec 31, 2024) | Fair Value (Dec 31, 2024) | | :-------------------------- | :------------------------------ | :------------------------- | :----------------------------- | :------------------------ | | Notes receivable | $31,650 | $31,723 | $31,790 | $31,755 | | Notes payable, net | $4,769,182 | $4,658,270 | $4,343,700 | $4,141,096 | - The Company's financial instruments are generally reflected at fair value, with exceptions for notes receivable and notes payable where carrying amounts and fair values are presented[85](index=85&type=chunk) - Fair value measurements for securities, available-for-sale debt securities, and interest rate derivatives primarily use Level **1** and Level **2** inputs, with credit valuation adjustments for derivatives utilizing Level **3** inputs but deemed not significant to overall valuation[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [9. Equity and Capital](index=34&type=section&id=9.%20Equity%20and%20Capital) Preferred Stock Outstanding (June 30, 2025 and December 31, 2024) | Series | Shares Issued and Outstanding | Liquidation Preference (in thousands) | Distribution Rate | | :----- | :---------------------------- | :------------------------------------ | :---------------- | | Series A | 4,600,000 | $115,000 | 6.250% | | Series B | 4,400,000 | $110,000 | 5.875% | | **Total**| **9,000,000** | **$225,000** | | - The Parent Company has an At The Market (ATM) Program with **$400 million** of common stock remaining available for issuance as of June 30, 2025, after accounting for forward sale agreements[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - A common stock repurchase program authorized up to **$250 million** expires on June 30, 2026; no repurchases were made during the six months ended June 30, 2025[101](index=101&type=chunk)[102](index=102&type=chunk) - In July 2025, the Operating Partnership issued **2,773,087** exchangeable operating partnership units, valued at **$199.7 million**, as partial consideration for property acquisitions[105](index=105&type=chunk) [10. Stock-Based Compensation](index=35&type=section&id=10.%20Stock-Based%20Compensation) Stock-Based Compensation (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Restricted stock | $5,455 | $4,662 | $10,898 | $9,302 | | Stock-based compensation, net of capitalization | $4,899 | $4,346 | $9,864 | $8,704 | - The Company granted **321,704 shares** of restricted stock in the first six months of 2025, compared to **343,014 shares** in the same period of 2024[106](index=106&type=chunk) - Stock-based compensation expense, net of capitalization, increased by **$553 thousand** (**12.7%**) for the three months and **$1.16 million** (**13.3%**) for the six months ended June 30, 2025, year-over-year[107](index=107&type=chunk) [11. Earnings per Share and Unit](index=36&type=section&id=11.%20Earnings%20per%20Share%20and%20Unit) Earnings Per Share (EPS) and Unit (EPU) (Regency Centers Corporation) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income per common share – basic | $0.57 | $0.54 | $1.15 | $1.12 | | Net income per common share – diluted | $0.56 | $0.54 | $1.15 | $1.12 | Earnings Per Share (EPS) and Unit (EPU) (Regency Centers, L.P.) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income per common unit – basic | $0.57 | $0.54 | $1.15 | $1.12 | | Net income per common unit – diluted | $0.56 | $0.54 | $1.15 | $1.12 | - Diluted EPS for the Parent Company increased from **$0.54** to **$0.56** for the three months ended June 30, 2025, and remained stable at **$1.15** for the six months[110](index=110&type=chunk) - Diluted EPU for the Operating Partnership showed similar trends, increasing from **$0.54** to **$0.56** for the three months and remaining **$1.15** for the six months ended June 30, 2025[111](index=111&type=chunk) [12. Segment Information](index=36&type=section&id=12.%20Segment%20Information) - The Company aggregates its individual properties into one reportable segment due to similarities in nature, economics, tenants, operational processes, and long-term average financial performance[112](index=112&type=chunk) Net Operating Income (NOI) (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total real estate revenues | $398,277 | $372,090 | $796,288 | $751,510 | | Operating expenses | $(65,664) | $(64,087) | $(139,128) | $(132,159) | | Real estate taxes | $(51,680) | $(49,611) | $(102,689) | $(98,021) | | NOI | $280,933 | $258,392 | $554,471 | $521,330 | - NOI increased by **$22.5 million** (**8.7%**) for the three months and **$33.1 million** (**6.4%**) for the six months ended June 30, 2025, year-over-year[113](index=113&type=chunk) [13. Commitments and Contingencies](index=38&type=section&id=13.%20Commitments%20and%20Contingencies) - The Company is involved in ordinary course litigation and disputes, which management believes will not have a material adverse effect on its financial position, results of operations, or liquidity[114](index=114&type=chunk) - The Company is subject to environmental laws and regulations, with accrued liabilities for remediation of **$16.6 million** as of June 30, 2025, down from **$17.3 million** at December 31, 2024[116](index=116&type=chunk)[117](index=117&type=chunk) - Letters of credit outstanding under the Company's credit facility totaled **$13.4 million** as of June 30, 2025, an increase from **$10.9 million** at December 31, 2024[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition and results, covering strategy, non-GAAP measures, and cash flow analysis [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements regarding future financial and operational performance, subject to various risk factors including economic conditions, pandemics, real estate investments, and capital structure[120](index=120&type=chunk)[124](index=124&type=chunk) - Readers are cautioned that actual results may differ materially from expectations and should consider the detailed risk factors in the Company's 2024 Form 10-K and subsequent reports[121](index=121&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) - The Company uses non-GAAP financial measures like Net Operating Income (NOI), Pro-rata information, Adjusted Funds From Operations (AFFO), Core Operating Earnings (COE), and Nareit Funds from Operations (Nareit FFO) to provide additional insights into operational results[125](index=125&type=chunk)[127](index=127&type=chunk) - These non-GAAP measures are used by management for trend analyses, incentive compensation, budgeting, and planning, but are not considered alternatives to GAAP measures and have limitations[122](index=122&type=chunk)[123](index=123&type=chunk)[128](index=128&type=chunk) - Pro-rata Same Property NOI is a key non-GAAP measure for evaluating operating performance of properties held during comparable periods, excluding non-same properties[128](index=128&type=chunk) [Overview of Our Strategy](index=43&type=section&id=Overview%20of%20Our%20Strategy) - Regency Centers Corporation is a REIT focused on owning, operating, and developing high-quality neighborhood and community shopping centers, primarily anchored by market-leading grocers in desirable suburban metro areas[132](index=132&type=chunk) - The Company's strategic goals include increasing earnings and dividends per share, maintaining a disciplined development platform, supporting business activities with a conservative capital structure, and implementing sustainability and governance practices[133](index=133&type=chunk) - As of June 30, 2025, the Company had full or partial ownership interests in **483 retail properties**, totaling approximately **57.6 million square feet** of gross leasable area (GLA)[132](index=132&type=chunk) [Executing on our Strategy](index=44&type=section&id=Executing%20on%20our%20Strategy) - Net income attributable to common shareholders increased to **$208.8 million** for the six months ended June 30, 2025, up from **$205.6 million** in the prior year[133](index=133&type=chunk) - Pro-rata same property NOI, excluding termination fees, grew by **5.8%** for the six months ended June 30, 2025, driven by increased occupancy, contractual rent steps, and positive rent spreads[133](index=133&type=chunk) - The total property portfolio was **96.2%** leased at June 30, 2025, with the same property portfolio at **96.5%** leased[133](index=133&type=chunk) - Development and redevelopment projects completed during the six months ended June 30, 2025, represented **$26.6 million** in estimated net project costs with an average stabilized yield of **17.7%**[136](index=136&type=chunk) - The Company received a credit rating upgrade to A- with a stable outlook from S&P Global Ratings in February 2025 and issued **$400 million** of senior unsecured notes in May 2025[136](index=136&type=chunk) [Economic Conditions](index=45&type=section&id=Economic%20Conditions) - The Company refers to the 'Estimated Risks and Uncertainties' section in Note 1 for a detailed discussion of economic conditions that could materially impact future results[134](index=134&type=chunk) [Property Portfolio](index=45&type=section&id=Property%20Portfolio) Consolidated Property Portfolio Summary | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Number of Properties | 380 | 379 | | GLA (in thousands) | 44,343 | 43,876 | | % Leased – Operating and Development | 96.2% | 96.2% | | Weighted average annual effective rent PSF | $26.01 | $25.56 | Unconsolidated Property Portfolio Summary | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Number of Properties | 103 | 103 | | GLA (in thousands) | 13,300 | 13,439 | | % Leased – Operating and Development | 96.7% | 96.8% | | Weighted average annual effective rent PSF | $25.05 | $24.51 | Pro-rata Occupancy Rates – All Properties | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Percent Leased – All Properties | 96.2% | 96.3% | | Anchor Space (≥ 10,000 SF) | 98.0% | 98.4% | | Shop Space (< 10,000 SF) | 93.4% | 93.0% | - The weighted-average base rent PSF on signed Shop Space leases in 2025 was **$41.00**, higher than the **$36.49** PSF for leases expiring in the next **12 months**[137](index=137&type=chunk) - New and renewal rent spreads were positive at **9.1%** for the six months ended June 30, 2025, compared to **8.9%** in the prior year[137](index=137&type=chunk) [Diversification and Concentration of Tenant Risk](index=46&type=section&id=Diversification%20and%20Concentration%20of%20Tenant%20Risk) - The Company aims to reduce risk by limiting dependence on any single tenant; no single tenant comprised **10%** or more of aggregate annualized base rent as of June 30, 2025[55](index=55&type=chunk)[138](index=138&type=chunk) Most Significant Tenants by Annualized Base Rent (June 30, 2025) | Tenant | Percentage of Annual Base Rent | | :-------------------------- | :----------------------------- | | Publix | 2.8% | | TJX Companies, Inc. | 2.8% | | Albertsons Companies, Inc. | 2.7% | | Amazon/Whole Foods | 2.6% | | Kroger Co. | 2.6% | [Bankruptcies and Credit Concerns](index=47&type=section&id=Bankruptcies%20and%20Credit%20Concerns) - Management actively monitors consumer trends and market shifts to mitigate adverse impacts, focusing on high-quality portfolios, diversified tenant mix, and grocery-anchored centers in desirable suburban areas[139](index=139&type=chunk) - Current economic conditions, including inflation, interest rates, and supply chain disruptions, pose financial strain on retailers, potentially impacting their ability to meet lease obligations[140](index=140&type=chunk) - Tenants currently in bankruptcy and occupying space represent an aggregate of **0.3%** of the Company's Pro-rata annual base rent as of June 30, 2025[141](index=141&type=chunk) [Results of Operations (Comparison of the three months ended June 30, 2025 and 2024)](index=47&type=section&id=Results%20of%20Operations%20%28Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202025%20and%202024%29) Changes in Revenues (Three months ended June 30, in thousands) | Revenue Type | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Lease income | $369,105 | $347,845 | $21,260 | | Other property income | $4,499 | $2,670 | $1,829 | | Management, transaction, and other fees | $7,244 | $6,735 | $509 | | **Total Revenues** | **$380,848** | **$357,250** | **$23,598** | - Lease income increased by **$21.3 million**, primarily due to a **$12.9 million** increase in billable Base rent from same properties (occupancy, rent steps, positive spreads), redevelopment projects, and acquisitions[142](index=142&type=chunk) Changes in Operating Expenses (Three months ended June 30, in thousands) | Expense Type | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Depreciation and amortization | $99,535 | $100,968 | $(1,433) | | Property operating expense | $60,759 | $59,491 | $1,268 | | Real estate taxes | $47,500 | $45,478 | $2,022 | | General and administrative | $25,480 | $24,238 | $1,242 | | Other operating expenses | $1,944 | $3,066 | $(1,122) | | **Total Operating Expenses**| **$235,218** | **$233,241** | **$1,977** | - Interest expense, net, increased by **$7.1 million**, mainly due to new net public debt issuances, a higher weighted average outstanding balance on unsecured credit facilities, and decreased interest income[147](index=147&type=chunk)[149](index=149&type=chunk) [Results of Operations (Comparison of the six months ended June 30, 2025 and 2024)](index=51&type=section&id=Results%20of%20Operations%20%28Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024%29) Changes in Revenues (Six months ended June 30, in thousands) | Revenue Type | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Lease income | $740,184 | $700,951 | $39,233 | | Other property income | $7,520 | $7,020 | $500 | | Management, transaction, and other fees | $14,056 | $13,131 | $925 | | **Total Revenues** | **$761,760** | **$721,102** | **$40,658** | - Lease income increased by **$39.2 million**, primarily from a **$23.3 million** increase in Base rent (same properties, redevelopment, acquisitions) and a **$13.2 million** increase in Recoveries from tenants[150](index=150&type=chunk)[152](index=152&type=chunk) Changes in Operating Expenses (Six months ended June 30, in thousands) | Expense Type | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Depreciation and amortization | $196,309 | $198,553 | $(2,244) | | Property operating expense | $129,218 | $122,765 | $6,453 | | Real estate taxes | $93,860 | $89,785 | $4,075 | | General and administrative | $47,080 | $50,370 | $(3,290) | | Other operating expenses | $3,632 | $5,709 | $(2,077) | | **Total Operating Expenses**| **$470,099** | **$467,182** | **$2,917** | - Interest expense, net, increased by **$12.2 million**, mainly due to new public debt issuances, higher unsecured credit facility balances and rates, and decreased interest income[154](index=154&type=chunk)[156](index=156&type=chunk) - Net investment income decreased by **$3.1 million** due to market volatility impacting returns on deferred compensation plan investments and other corporate investments[158](index=158&type=chunk) [Supplemental Earnings Information on Non-GAAP Financial Measures](index=54&type=section&id=Supplemental%20Earnings%20Information%20on%20Non-GAAP%20Financial%20Measures) - Pro-rata same property NOI, excluding termination fees, grew by **7.4%** for the three months and **5.8%** for the six months ended June 30, 2025, driven by base rent increases, higher tenant recoveries, and improved collection rates[163](index=163&type=chunk)[164](index=164&type=chunk) Pro-rata Same Property NOI (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Pro-rata same property NOI | $276,888 | $257,596 | $550,581 | $519,557 | | Pro-rata same property NOI, excluding termination fees | $274,844 | $255,963 | $546,213 | $516,152 | Nareit FFO, Core Operating Earnings, and AFFO (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Nareit FFO attributable to common stock and unit holders | $212,131 | $196,368 | $422,880 | $396,335 | | Core Operating Earnings | $202,225 | $189,253 | $401,668 | $382,321 | | AFFO | $177,453 | $162,051 | $360,715 | $341,047 | - Nareit FFO increased by **$15.76 million** (**8.0%**) for the three months and **$26.55 million** (**6.7%**) for the six months ended June 30, 2025, year-over-year[166](index=166&type=chunk) - AFFO increased by **$15.4 million** (**9.5%**) for the three months and **$19.67 million** (**5.8%**) for the six months ended June 30, 2025, year-over-year[166](index=166&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) - The Company maintains sufficient liquidity and capital resources, including **$150.7 million** of unrestricted cash, **$400 million** available under its ATM program, and **$1.46 billion** available on its unsecured credit facility (Line)[169](index=169&type=chunk)[175](index=175&type=chunk) - The Company has **$556.4 million** of debt maturing within the next **12 months**, including **$350 million** of unsecured public debt in November 2025, which it intends to refinance or pay off[172](index=172&type=chunk) - Estimated capital requirements for the next **12 months** total approximately **$982.5 million** for leasing commissions, tenant improvements, developments, redevelopments, real estate partnership contributions, and debt repayment[178](index=178&type=chunk) - As of June 30, 2025, **89.4%** of consolidated real estate assets were unencumbered, providing flexibility for accessing debt markets[180](index=180&type=chunk) Summary of Cash Flow Activity (Six months ended June 30, in thousands) | Activity | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Net cash provided by operating activities | $405,079 | $371,214 | $33,865 | | Net cash used in investing activities | $(372,693) | $(114,143) | $(258,550) | | Net cash provided by (used in) financing activities | $60,549 | $(268,502) | $329,051 | | Net change in cash | $92,935 | $(11,431) | $104,366 | Real Estate Development and Capital Improvements (Six months ended June 30, in thousands) | Category | 2025 | 2024 | Change | | :-------------------------- | :--- | :--- | :----- | | Land acquisitions | $0 | $11,650 | $(11,650) | | Building and tenant improvements | $48,676 | $43,918 | $4,758 | | Redevelopment costs | $69,906 | $48,364 | $21,542 | | Development costs | $71,820 | $27,584 | $44,236 | | **Total** | **$204,657** | **$141,775** | **$62,882** | [Investments in Real Estate Partnerships](index=64&type=section&id=Investments%20in%20Real%20Estate%20Partnerships) Unconsolidated Real Estate Partnerships Summary (in thousands) | Metric | Combined (June 30, 2025) | Regency's Share (June 30, 2025) | | :-------------------------- | :----------------------- | :------------------------------ | | Number of real estate partnerships | 18 | | | Number of properties | 103 | | | Assets | $2,847,010 | $1,055,391 | | Liabilities | $1,684,782 | $619,386 | | Equity | $1,162,228 | $436,005 | | Investments in real estate partnerships | | $389,828 | - Regency's ownership interest in these partnerships ranges from **12%** to **83%**[192](index=192&type=chunk) - The Company's pro-rata share of notes payable held by these partnerships was **$575.0 million** as of June 30, 2025, with **91.3%** at a weighted average fixed interest rate of **3.9%**[193](index=193&type=chunk) - Management fee income from these partnerships totaled **$7.36 million** for the three months and **$14.0 million** for the six months ended June 30, 2025[195](index=195&type=chunk) [Critical Accounting Estimates](index=65&type=section&id=Critical%20Accounting%20Estimates) - There have been no material changes in the Company's critical accounting estimates from those reported in the 2024 Form 10-K[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details the Company's interest rate risk exposure from debt, outlining mitigation strategies and impacts on earnings and cash flows - The Company is exposed to interest rate risk from variable interest rates on its credit facility (Line) and when refinancing existing long-term fixed-rate debt[197](index=197&type=chunk)[200](index=200&type=chunk) - Strategies to mitigate interest rate risk include using interest rate swaps, caps, or forward-starting hedges, and prioritizing refinancing with long-duration fixed-rate debt[170](index=170&type=chunk)[200](index=200&type=chunk) - A **100 basis point** increase in interest rates would decrease future earnings and cash flows by approximately **$0.4 million** per year, based on **$39.6 million** of floating rate debt outstanding at June 30, 2025[198](index=198&type=chunk) Principal Cash Flows and Weighted Average Interest Rates of Debt (June 30, 2025, in thousands) | Year | Fixed Rate Debt | Average Fixed Rate | Variable Rate SOFR Debt | Average Variable Rate | | :--- | :-------------- | :----------------- | :---------------------- | :-------------------- | | 2025 | $271,057 | 4.19% | $60 | 5.45% | | 2026 | $358,175 | 4.21% | $120 | 5.44% | | 2027 | $754,996 | 4.33% | $3,870 | 5.40% | | 2028 | $357,583 | 4.33% | $35,525 | 5.40% | | 2029 | $524,906 | 4.56% | — | | | Thereafter | $2,533,640 | 4.83% | — | | | **Total**| **$4,800,357** | | **$39,575** | | [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures for Regency Centers Corporation and L.P. as of June 30, 2025, with no material internal control changes - Regency Centers Corporation's management, including its CEO and CFO, concluded that its disclosure controls and procedures were effective as of June 30, 2025[203](index=203&type=chunk) - Regency Centers, L.P.'s management also concluded that its disclosure controls and procedures were effective as of June 30, 2025[205](index=205&type=chunk) - No material changes in internal controls over financial reporting were identified for either entity during the quarter ended June 30, 2025[204](index=204&type=chunk)[206](index=206&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 13 for material legal proceedings and confirms no new material developments since the 2024 Form 10-K - Material legal proceedings and contingencies are discussed in Note 13 to the Consolidated Financial Statements[207](index=207&type=chunk) - No material developments in legal proceedings have occurred since the 2024 Form 10-K[207](index=207&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) Highlights additional risk factors from political and economic events, macroeconomic uncertainties, and their adverse impact on tenant businesses and operations - Evolving political and economic events, including tariffs, trade disputes, and immigration policies, could adversely impact tenant businesses and the Company[208](index=208&type=chunk) - Macroeconomic uncertainties such as inflation, labor shortages, increasing energy prices, interest rates, and supply chain disruptions could strain retailers and reduce consumer confidence and spending[208](index=208&type=chunk) - Government policies, including Federal Reserve rate changes and economic sanctions, could lead to adverse impacts on the U.S. economy, potentially affecting occupancy rates and rents[208](index=208&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered equity sales in Q2 2025, details July 2025 issuance of operating partnership units for acquisitions, and common stock repurchases - No unregistered sales of equity securities occurred during the three months ended June 30, 2025[209](index=209&type=chunk) - In July 2025, the Operating Partnership issued **2,773,087** exchangeable operating partnership units to partially fund the acquisition of five operating properties, under Section 4(a)(2) of the Securities Act[210](index=210&type=chunk) Common Stock Repurchases for Tax Withholding (Three months ended June 30, 2025) | Period | Total number of shares purchased | Average price paid per share | | :-------------------------- | :----------------------------- | :--------------------------- | | April 1 through April 30, 2025 | 317 | $72.42 | | May 1 through May 31, 2025 | — | — | | June 1 through June 30, 2025 | — | — | - The Company has a common stock repurchase program authorized for up to **$250 million**, expiring June 30, 2026[211](index=211&type=chunk) [Item 3. Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States no defaults upon senior securities occurred during the reporting period - There were no defaults upon senior securities[212](index=212&type=chunk) [Item 4. Mine Safety Disclosures](index=69&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[213](index=213&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) Confirms no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[214](index=214&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including material contracts, certifications, tax considerations, and Interactive Data Files - Exhibits include the Second Amendment to Sixth Amended and Restated Credit Agreement, dated May 6, 2025[218](index=218&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer for both Regency Centers Corporation and Regency Centers, L.P. are included under Rule 13a-14 and Section 1350[218](index=218&type=chunk) - Interactive Data Files (XBRL) are provided, including the Inline XBRL Instance Document and Taxonomy Extension Schema[218](index=218&type=chunk) [SIGNATURES](index=71&type=section&id=SIGNATURES) Contains required signatures for the Form 10-Q, certifying submission on behalf of Regency Centers Corporation and L.P. by their principal officers - The report was signed on August 4, 2025, by Michael J. Mas, Executive Vice President and Chief Financial Officer, and Terah L. Devereaux, Senior Vice President, Chief Accounting Officer, for both Regency Centers Corporation and Regency Centers, L.P[221](index=221&type=chunk)[223](index=223&type=chunk)

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no disclosed stock, option, or derivative positions in any mentioned companies, and no plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not compensated beyond Seeking Alpha [2] Group 3 - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Core Insights - Regency Centers raised its core operating and NAREIT FFO guidance for FY2025 due to strong performance across major operating metrics, including record-low move-outs and robust rent spreads [5][25][26] - The acquisition of a five-property R&D portfolio in Orange County, California, is strategically significant, enhancing long-term earnings without increasing net leverage [5][20][25] - The company is executing a $500 million active development pipeline with blended project returns exceeding 9%, focusing on ground-up developments [5][21][25] Financial Performance - Same-property NOI growth exceeded 7%, driven by a 4.5% contribution from base rent, improved leasing, and favorable bankruptcy resolutions [4][15][25] - The company raised its same-property NOI growth forecast to 4.5%-5% for 2025, reflecting a 115 basis point increase at the midpoint [8][25] - NAREIT FFO per share guidance was raised by $0.06, indicating full-year growth of over 7% [8][25] Capital Deployment and Acquisitions - Over $600 million has been deployed year-to-date, including the $357 million acquisition of the Orange County portfolio, which is 97% leased [4][5][20] - The company maintains nearly full capacity on a $1.5 billion credit facility, providing flexibility for future investments [8][25][27] - The acquisition is expected to deliver a growth rate north of 3%, with potential upside from small redevelopments [9][54] Leasing and Occupancy - Commenced occupancy increased by 40 basis points sequentially, with a lease-to-commence spread of 260 basis points representing a $38 million S&O pipeline [4][18] - Cash rent spreads of 10% and GAAP rent spreads of nearly 20% were achieved on new and renewal leases, reflecting strong demand and contractual rent steps [4][18][25] - The company reported a retention rate of about 77%, higher than typical levels, attributed to supply constraints and strong tenant performance [63][64] Credit and Risk Management - Credit loss guidance was narrowed to 75-85 basis points for the year, reflecting improved clarity on bankruptcy outcomes [8][26][70] - Accounts receivable over 90 days are at historical lows, indicating strong tenant health [8][70][71] - The company has successfully managed tenant turnover, with proactive measures in place to enhance tenant relationships and performance [63][64]

Core Insights - Regency Centers Corporation (REG) reported a second-quarter 2025 NAREIT funds from operations (FFO) per share of $1.16, exceeding the Zacks Consensus Estimate of $1.12, and reflecting a 9.4% increase from the prior-year quarter [1][9] - The company experienced strong leasing activity, with improvements in same-property net operating income (NOI) and base rents, leading to an increased 2025 NAREIT FFO per share outlook [1][10] Financial Performance - Total revenues reached $380.8 million, marking a 6.6% increase from the previous year and surpassing the Zacks Consensus Estimate of $377.4 million [2] - Same-property NOI, excluding lease termination fees, rose 7.4% year-over-year to $274.8 million, with base rent growth contributing 4.5% to this increase [4][9] Leasing Activity - In Q2 2025, Regency Centers executed approximately 1.9 million square feet of comparable new and renewal leases at a blended cash rent spread of 10% [3] - As of June 30, 2025, the same property portfolio was 96.5% leased, remaining flat sequentially but increasing by 100 basis points year-over-year [3] Portfolio Management - The company strategically deployed over $600 million into accretive investments year-to-date, including the acquisition of five high-quality shopping centers in Southern California [2] - In Q2 2025, REG acquired Armonk Square, a 48,000 square foot neighborhood center in Armonk, NY, for approximately $5 million, and disposed of Van Houten Plaza in Passaic, NJ, for about $6 million [6] - Following the quarter end, REG acquired a portfolio of five shopping centers in Rancho Mission Viejo, CA, for $357 million and disposed of 101 7th Avenue in New York, NY, for $11 million [7] Balance Sheet - As of June 30, 2025, Regency Centers had nearly $1.5 billion of capacity under its revolving credit facility, with a pro-rata net debt and preferred stock to trailing 12 months operating EBITDAre ratio of 5.3X [8] 2025 Outlook - The company raised its 2025 NAREIT FFO per share guidance to a range of $4.59-$4.63, compared to the previous guidance of $4.52-$4.58, with the current Zacks Consensus Estimate at $4.54 [10]

Financial Data and Key Metrics Changes - The company reported same property NOI growth exceeding 7%, with base rent contributing 4.5% [9] - Full year guidance for same property NOI growth was raised to 4.5% to 5%, an increase of 115 basis points at the midpoint [17] - NAREIT FFO range was raised by $0.06 per share at the midpoint, representing full year growth of more than 7% [17] - Core operating earnings per share were raised by $0.05 at the midpoint, indicating growth north of 6% [17] Business Line Data and Key Metrics Changes - The company achieved cash rent spreads of 10% and GAAP rent spreads of nearly 20% for new and renewal leasing [10] - The lease to commenced occupancy spread was 260 basis points at quarter end, representing an S and O pipeline of $38 million of incremental base rent [10] - The company maintained a same property leased rate and continued to grow shop occupancy, driven by strong tenant demand across various categories [9] Market Data and Key Metrics Changes - The company successfully deployed over $600 million of capital year to date, with a recent acquisition of five shopping centers for $357 million [6][12] - The acquisition portfolio is 97% leased and includes over 600,000 square feet of high-quality retail GLA in a sought-after market [12] - The company continues to see strong demand from leading grocers and retailers for expansion in its markets [15] Company Strategy and Development Direction - The company is focused on enhancing its presence in supply-constrained markets, particularly in Southern California [6] - The ongoing commitment to corporate responsibility is a foundational strategy for the company, reflecting its dedication to sustainable growth [7] - The company aims to capitalize on persistent demand for high-quality shopping centers while driving NOI higher through effective merchandising [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operating fundamentals and the ability to sustain growth opportunities into 2026 [8] - The company is optimistic about the future, citing strong tenant health and positive consumer trends [80] - Management noted that the current operating environment is favorable, with limited supply and high demand for quality retail spaces [11] Other Important Information - The company has a strong balance sheet with low leverage and dependable access to low-cost capital, enabling it to pursue strategic growth opportunities [8] - The company has successfully executed a $400 million bond offering, demonstrating a clear cost of capital advantage [19] - The company is committed to maintaining a leverage ratio comfortably within its target range of 5 to 5.5 times [20] Q&A Session Summary Question: Contribution to same store NOI growth in the second half - Management indicated that base rent will continue to be the largest contributor, but there may be a slight increase in uncollectible lease income in the second half [23][25] Question: State property NOI growth algorithm and future components - Management noted that while peak leased occupancy has been reached, there is still room for growth in commenced occupancy, which will positively impact NOI [31][34] Question: Insights on the SoCal acquisition and competitive edge - The acquisition was described as off-market, with the seller valuing the quality of the company's operations and future development opportunities [42][45] Question: Development opportunities and retailer discussions - Management confirmed ongoing discussions with national retailers about new developments, with expectations for continued high yields [50][52] Question: Sustainability of improved expense recovery rates - Management anticipates a slight deceleration in recovery rates but expects continued improvement due to higher average in-place occupancy [55][56] Question: Tenant health and turnover rates - Management reported strong tenant health, with a retention rate of about 77%, attributed to supply constraints and productive stores [77][80] Question: Credit loss assumptions and potential troubled tenants - Management narrowed credit loss guidance, citing improved clarity on bankruptcy outcomes and strong tenant health [84][86] Question: Future occupancy levels and potential for growth - Management expressed confidence in the ability to push occupancy levels higher, with no ceiling identified for future growth [108][111]

Financial Data and Key Metrics Changes - The company reported same property NOI growth exceeding 7%, with base rent contributing 4.5% [10][19] - Full year growth outlook for same property NOI, core operating earnings, and NAREIT FFO has been raised due to strong performance [8][19] - NAREIT FFO range increased by $0.06 per share at the midpoint, representing full year growth of more than 7% [19][21] Business Line Data and Key Metrics Changes - The company achieved cash rent spreads of 10% and GAAP rent spreads of nearly 20% for new and renewal leasing [11] - The commenced occupancy rate increased by 40 basis points quarter over quarter, indicating strong leasing activity [11][12] - The S and O pipeline represents $38 million of incremental base rent, showcasing ongoing leasing momentum [11] Market Data and Key Metrics Changes - The company successfully acquired five shopping centers in South Orange County, California, enhancing its presence in a supply-constrained market [6][14] - The acquisition portfolio is 97% leased and includes over 600,000 square feet of high-quality retail GLA [13][14] Company Strategy and Development Direction - The company emphasizes its commitment to corporate responsibility as a foundational strategy, which aligns with its business objectives [7] - The strategic focus remains on high-quality grocery-anchored shopping centers in desirable suburban areas, driving value creation [9][10] - The company plans to continue capitalizing on persistent demand for its shopping centers and enhancing its merchandising [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, citing strong tenant demand and favorable bankruptcy outcomes [10][18] - The company anticipates continued above-trend growth opportunities into 2026, supported by a strong balance sheet and access to low-cost capital [9][21] - Management narrowed credit loss guidance to 75 to 85 basis points, reflecting improved clarity on bankruptcy outcomes [20][21] Other Important Information - The company has successfully executed a $400 million bond offering, demonstrating a clear cost of capital advantage [20][21] - The average in-place occupancy is expected to increase by over 100 basis points in 2025, contributing to higher expense recovery rates [53] Q&A Session Summary Question: Contribution from various components into the second half for same store NOI cadence - Management indicated that base rent will continue to be the largest contributor, but there may be a slight increase in uncollectible lease income in the second half [24][26] Question: Shift away from occupancy into other components of same property NOI growth - Management confirmed that while peak leased occupancy is being reached, there is still room for growth in commenced occupancy and redevelopment opportunities will positively impact NOI growth [31][34] Question: Competitive edge in the SoCal acquisition - The acquisition was described as off-market, with the seller valuing the quality of currency and operations, as well as future development opportunities [41][44] Question: Development opportunities and discussions with national retailers - Management confirmed ongoing discussions with leading grocers about expanding their physical presence in the markets [48][49] Question: Sustainability of better expense recovery rates - Management expects a slight deceleration in recovery rates but attributes the current high rates to increased average in-place occupancy [53] Question: Future growth opportunities within the SoCal acquisition portfolio - Management highlighted potential for small redevelopments and rent increases, projecting growth rates north of 3% moving forward [60][61] Question: Plans for settling remaining forward equity - Management indicated that the capital will be used for development and acquisition opportunities, with a focus on rolling up smaller joint ventures [66] Question: Tenant health on the small shop side - Management reported strong tenant health, with retention rates at about 77%, and positive feedback from tenants regarding their ability to adapt to market conditions [77][81] Question: Credit loss assumptions for 2025 - Management narrowed credit loss guidance due to improved clarity on bankruptcy outcomes, with expectations for a retention rate of 75 to 80 basis points [85][88]