Financial Performance - Net income attributable to common shareholders for Q1 2025 was $106.2 million, slightly down from $106.4 million in Q1 2024[120] - Net income attributable to common shareholders for the three months ended March 31, 2025, was $106.174 million, a decrease of $187, compared to $106.361 million in 2024[135] - Total real estate revenue increased by $17.136 million to $396.135 million for the three months ended March 31, 2025, compared to $378.999 million in 2024[139] - Nareit FFO attributable to common stock and unit holders for the three months ended March 31, 2025, was $210.749 million, an increase from $199.967 million in 2024[142] - Cash flows from operations for the three months ended March 31, 2025, were $161.0 million, compared to $167.8 million in 2024[149] - Net cash provided by operating activities decreased by $6.7 million to $161.0 million for the three months ended March 31, 2025, compared to $167.8 million in 2024[155] - Net cash used in investing activities increased by $37.8 million to $180.1 million in 2025, primarily due to an $83.2 million acquisition of two operating properties[156] - Net cash provided by financing activities decreased by $77.6 million to $35.8 million in 2025, with significant debt-related activities including a $200 million draw from the Line[163] Property and Leasing Performance - Pro-rata same property NOI, excluding termination fees, increased by 4.3% compared to Q1 2024, driven by higher occupancy rates and positive rent spreads[120] - The total property portfolio was 96.3% leased as of March 31, 2025, consistent with December 31, 2024, and up from 95.0% in March 2024[120] - The same property portfolio was 96.5% leased as of March 31, 2025, compared to 96.5% in December 2024 and 95.5% in March 2024[120] - 450 new and renewal leasing transactions were executed in Q1 2025, representing 1.4 million Pro-rata SF with positive rent spreads of 8.1%[120] - The weighted average annual effective rent per square foot (PSF) for consolidated properties increased to $25.81 from $25.56, while for unconsolidated properties, it rose to $24.82 from $24.51[122] - The percentage leased for all properties remained stable at 96.3% as of March 31, 2025, consistent with December 31, 2024[122] Capital Structure and Liquidity - The company focuses on maintaining a conservative capital structure and strong balance sheet to support liquidity and investment opportunities[120] - The company had $1.22 billion available on its credit line as of March 31, 2025, which expires on March 23, 2028[123] - The company plans to require approximately $856.2 million in capital over the next 12 months for leasing commissions, tenant improvements, and maturing debt repayments[150] - The company has $430.3 million of loan maturities in the next 12 months, including $250 million of unsecured public debt maturing in November 2025[147] - The company expects to address maturing obligations through refinancing, available liquidity, and proceeds from potential property sales[147] - As of March 31, 2025, 89.4% of the company's wholly-owned real estate assets were unencumbered, enhancing access to secured and unsecured debt markets[152] Development and Redevelopment - The company continues to develop and redevelop high-quality shopping centers to enhance its portfolio[121] - Estimated pro-rata project costs for current development and redevelopment projects totaled $498.5 million, slightly up from $497.3 million at the end of 2024[123] - The company invested $101.4 million in real estate development, redevelopment, and capital improvements during the three months ended March 31, 2025, up from $60.9 million in 2024[159] - The company has ongoing development projects with estimated net development costs of $238.8 million and a total of 586 thousand square feet of gross leasable area (GLA) as of March 31, 2025[162] - Redevelopment costs increased significantly, with total redevelopment projects in-process amounting to $259.7 million as of March 31, 2025[162] - The company plans to continue developing and redeveloping shopping centers for long-term investment, focusing on enhancing its portfolio through various redevelopment strategies[161] Financial Health and Ratings - The company received a credit rating upgrade to A- with a stable outlook from S&P Global Ratings in February 2025[123] - The company maintained compliance with various financial covenants as of March 31, 2025, and expects to continue this compliance[154] - The average interest rate for fixed rate debt was 4.11% as of March 31, 2025, while the average for variable rate debt was 5.21%[174] - An increase of 100 basis points in interest rates could decrease future earnings and cash flows by approximately $2.7 million per year based on $274.6 million of floating rate mortgage debt[170] - The company believes it can successfully issue new secured or unsecured debt to fund maturing obligations despite potential capital market volatility[169] Tenant and Partnership Information - Tenants currently in bankruptcy represent 0.9% of the company's pro-rata annual base rent, with no single tenant exceeding 0.5%[128] - Equity in income of investments in real estate partnerships increased by $2.5 million due to increases from occupancy and positive rental spreads on new and renewal leases[135] - As of March 31, 2025, the total assets of the real estate partnerships amounted to $2,808,448,000, a decrease of 1.2% from $2,843,157,000 on December 31, 2024[164] - The liabilities of the real estate partnerships were $1,653,665,000, down 1.4% from $1,676,507,000 as of December 31, 2024[164] - Regency's pro-rata share of equity in real estate partnerships was $435,909,000, reflecting a decrease of 1.9% from $444,354,000 at the end of 2024[164] - The company acquired a 33.3% share in a property partnership for $10.3 million, resulting in 100% ownership of that property[164] Interest and Management Fees - Interest expense, net increased by $5.1 million to $48.0 million for the three months ended March 31, 2025, compared to $42.9 million in the same period of 2024[134] - Management fee income for the three months ended March 31, 2025, was $6,812,000, an increase of 6.5% from $6,396,000 in the same period of 2024[167] - Scheduled principal repayments on notes payable for 2025 total $29,991,000, with total notes payable reaching $1.5 billion maturing through 2034[165] - 91.8% of the notes payable had a weighted average fixed interest rate of 3.9%, while the remaining had a variable interest rate of 6.5% as of March 31, 2025[165]

Financial Data and Key Metrics Changes - The company reported strong same property NOI growth of 4.3%, primarily driven by growth in base rent [10] - NAREIT FFO is expected to grow nearly 6% in 2025, with same property NOI growth projected at 3.6% [15] - Cash rent spreads were 8% in Q1, while GAAP rent spreads were nearly 19% [10] Business Line Data and Key Metrics Changes - Significant progress was made in leasing activity, with approximately $10 million of annual base rent (ABR) from new leases commenced [10] - The same property percent commenced rate increased by 20 basis points in the quarter [10] - The S and O pipeline value increased to $46 million of incremental base rent [10] Market Data and Key Metrics Changes - Foot traffic accelerated in April, showing a 7% year-over-year increase [44] - The company noted that leasing activity remained strong, with no significant impact from macroeconomic uncertainties [44] Company Strategy and Development Direction - The company aims to continue opportunistic acquisitions and maintain a focus on grocery-anchored neighborhood and community centers [7] - Development and redevelopment projects are a key component of the company's strategy, with a focus on high-quality markets [14] - The company is committed to maintaining a strong balance sheet to capitalize on opportunities during economic cycles [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid economic uncertainty, citing strong tenant health and demand for essential goods [8][29] - The company remains focused on its long-term strategic objectives and believes it is well-positioned to outperform across economic cycles [8] Other Important Information - The company has a strong liquidity position and access to low-cost capital, which supports its growth strategy [8] - The credit rating was upgraded to A- by S&P, reflecting the strength of the company's balance sheet [17] Q&A Session Summary Question: Concerns about watch list and bad debt - Management stated that the watch list remains consistent and accounts receivable is below historic levels [20][22] Question: Leasing discussions and tariff impacts - Management acknowledged the uncertainty around tariffs but emphasized the resilience of their tenant base and the essential nature of their offerings [28][29] Question: Construction costs and yield evolution - Management is closely monitoring construction costs and believes they can deliver projects on budget despite potential tariff impacts [48] Question: Transactions market and cap rates - Management noted that cap rates for high-quality grocery-anchored assets remain in the 5% to 6% range, with strong interest from private capital [53] Question: Brentwood acquisition details - Management expressed confidence in the growth potential of the Brentwood acquisition, targeting a high single-digit IRR [57] Question: Development strategy and competition - The company remains focused on grocery-anchored developments and has strong relationships with key grocers [105][106] Question: Foot traffic and regional variances - Management reported that foot traffic was up across all regions, with no significant variances [114] Question: Impact of tariffs on retailers and store owners - Management believes that while retailers face margin pressures, the quality of their trade areas and tenant base will help mitigate impacts [118]

Financial Data and Key Metrics Changes - The company reported strong same property NOI growth of 4.3%, primarily driven by growth in base rent [9] - NAREIT FFO is expected to grow nearly 6% in 2025, with same property NOI growth projected at 3.6% [13][14] - Cash rent spreads were 8% in Q1, while GAAP rent spreads were nearly 19% [9] Business Line Data and Key Metrics Changes - Significant progress was made in leasing activity, with approximately $10 million of ABR from new leases commenced [9] - The leased occupancy increased by 10 basis points in Q1, building on a 60 basis point increase from the previous year [8] - The SNO pipeline value increased to $46 million of incremental base rent, supporting future occupancy [9] Market Data and Key Metrics Changes - Foot traffic accelerated in April, showing a 7% year-over-year increase in the first three weeks [41] - The company noted that tenant health remains strong, with no significant shifts in consumer behavior reported [4][29] Company Strategy and Development Direction - The company aims to continue opportunistic growth supported by substantial liquidity and access to low-cost capital [6] - Development and redevelopment projects are a key component of the strategy, with a focus on grocery-anchored centers [11][12] - The company maintains a competitive edge through its unique combination of strategic advantages, including strong demographics in trade areas [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated volatility and macroeconomic uncertainty but expressed confidence in the company's positioning to thrive across economic cycles [6] - The company remains focused on essential non-discretionary needs, which are expected to be more resilient during economic downturns [5][29] - Management emphasized the importance of maintaining a strong tenant base and proactive management of the watch list [20][27] Other Important Information - The company received credit rating upgrades from S&P to A- and from Moody's to A3, reflecting the strength of its balance sheet [15] - The company is committed to maintaining a balance sheet capacity to capitalize on opportunities as they arise [35] Q&A Session Summary Question: Concerns about watch list and bad debt - Management stated that the watch list remains consistent and that accounts receivable is below historic levels [20] Question: Leasing discussions and tariff impacts - Management reiterated that the impact of tariffs is uncertain, but the essential nature of their offerings provides resilience [26][29] Question: Changes in lease deal timelines - Management reported strong leasing activity in April, with no significant delays or pushback observed [40] Question: Construction costs and yield evolution - Management is closely monitoring construction costs and remains confident in delivering projects on budget [46] Question: Transactions market and cap rates - Management noted that cap rates for high-quality grocery-anchored assets remain in the 5% to 6% range, with continued interest from private capital [50] Question: Brentwood acquisition details - Management expressed confidence in the mark-to-market opportunities and projected a high single-digit IRR for the Brentwood acquisition [55] Question: Future plans for acquisitions - Management is focused on expanding in high-quality markets and is actively seeking opportunities in Nashville and other key areas [61] Question: Impact of tariffs on tenants - Management emphasized the importance of tenant success for cash flow sustainability and noted that the quality of trade areas helps mitigate risks [109]

1Q25 Earnings Presentation Naperville Plaza| Naperville, IL Safe Harbor and Non-GAAP Disclosures Forward-Looking Statements Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Regency's future events, developments, or financial or operational performance or results such as our 2025 Guidance, are "forward-looking statements" made pursuant to the safe harbor provisions ...

Group 1 - Regency Centers (REG) reported quarterly funds from operations (FFO) of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and up from $1.08 per share a year ago, representing an FFO surprise of 0.88% [1] - The company achieved revenues of $380.91 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.60%, compared to $363.85 million in the same quarter last year [2] - Regency Centers has outperformed the market with a 2.8% decline since the beginning of the year, compared to the S&P 500's decline of 6% [3] Group 2 - The current consensus FFO estimate for the upcoming quarter is $1.12 on revenues of $371.91 million, and for the current fiscal year, it is $4.54 on revenues of $1.52 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Group 3 - Regency Centers has surpassed consensus FFO estimates in all four of the last quarters, indicating strong performance consistency [2] - The estimate revisions trend for Regency Centers is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Financial Performance - Net Income Attributable to Common Shareholders for Q1 2025 was $106.2 million, or $0.58 per diluted share, consistent with Q1 2024[20] - Nareit FFO for Q1 2025 was $210.7 million, or $1.15 per diluted share, up from $200.0 million, or $1.08 per diluted share in Q1 2024[25] - Core Operating Earnings for Q1 2025 were $199.4 million, or $1.09 per diluted share, compared to $193.1 million, or $1.04 per diluted share in Q1 2024[26] - Total revenues for Q1 2025 increased to $380,912,000, up from $363,852,000 in Q1 2024, representing a growth of 4.3%[76] - Net income attributable to common shareholders for Q1 2025 was $106,174, compared to $106,361 in Q1 2024, reflecting a slight decrease[65] - Nareit Funds From Operations (Nareit FFO) increased to $210,749 in Q1 2025 from $199,967 in Q1 2024, representing a growth of 5.9%[65] - Core Operating Earnings for the first quarter of 2025 amounted to $199.4 million, with a per share diluted figure of $1.09[38] - The company reported a net income of $111,853,000 for Q1 2025, slightly down from $112,658,000 in Q1 2024, a decrease of 0.7%[90] Property and Leasing Activity - Same Property NOI increased by 4.3% year-over-year, excluding lease termination fees, with Same Property base rents contributing 4.0% to this growth[23] - Same Property percent leased ended the quarter at 96.5%, an increase of 100 basis points year-over-year[23] - Executed 1.4 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of +8.1% on a cash basis and +18.6% on a straight-lined basis[23] - Same Property NOI for the first quarter of 2025 was $273.8 million, reflecting a 4.5% increase compared to the same period in 2024[39] - The percentage of leased retail operating properties remained stable at 96.5% for Q1 2025, consistent with Q4 2024[67] - Leasing statistics for Q1 2025 show 384 transactions totaling 1,409,000 square feet with a new base rent of $28.22 per square foot, reflecting an 8.1% cash rent spread[110] - New leases in Q1 2025 totaled 84 transactions for 187,000 square feet at a new base rent of $38.29 per square foot, with a 22.7% straight-lined rent spread[110] - Renewals in Q1 2025 accounted for 300 transactions covering 1,222,000 square feet at a new base rent of $26.66 per square foot, with a 7.9% cash rent spread[110] Acquisitions and Developments - Acquired Brentwood Place, a community center in Nashville, TN, for $119 million on March 14, 2025[23] - The company completed acquisitions totaling approximately $133 million in the first quarter of 2025, including Brentwood Place for $119 million[33] - As of March 31, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $499 million at a blended yield of 9%[23] - Total in-process developments and redevelopments amount to $499 million, with 51% of costs incurred and a stabilized yield of approximately 9%[105] - Ground-up development expenditures surged to $34,154,000 in Q1 2025, significantly higher than $15,875,000 in Q1 2024, reflecting a growth of 115.0%[90] - The total estimated market value of land and non-income producing assets is $50,916[135] Debt and Financial Ratios - Pro-rata net debt and preferred stock to operating EBITDAre at March 31, 2025 was 5.3x[23] - Total debt outstanding as of March 31, 2025, was $4,641,240,000, an increase from $4,408,700,000 as of December 31, 2024, marking a rise of 5.3%[93] - The interest coverage ratio is 5.3x, reflecting strong earnings relative to interest obligations[97] - The company's total consolidated debt to total consolidated assets ratio is 27%, well below the 65% covenant requirement[97] - The weighted average interest rate on total debt is 4.07%, with fixed rates averaging 3.9% and variable rates at 6.5%[98] Guidance and Projections - Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.25 and $2.31 for 2025, compared to a year-to-date actual of $0.58[31] - Nareit Funds From Operations (Nareit FFO) per diluted share is expected to be between $4.52 and $4.58 for 2025, with a year-to-date actual of $1.15[31] - Core Operating Earnings per diluted share guidance for 2025 is set at $4.30 to $4.36, while the year-to-date actual stands at $1.09[31] - Same property NOI growth without termination fees is projected at 4.3%, with previous guidance of +3.2% to +4.0%[31] - General & administrative expenses are expected to be between $93,000 and $96,000 for 2025, consistent with prior guidance[137] - Development and redevelopment spending is anticipated to be around +/- $250,000 for 2025, unchanged from prior estimates[137] Market and Tenant Overview - The company has a significant presence in Florida, with 92 properties and an annual base rent of $226,829,000, averaging $21.73 per square foot[4] - Grocery tenants represent 20% of the total ABR, followed by Quick Service/Fast Casual restaurants at 13%[123] - The company has a significant tenant exposure with 58% of ABR coming from shop tenants and 42% from anchor tenants[123] - The top 50 Core Based Statistical Areas (CBSAs) account for 80.5% of the total properties, with a GLA of 41,105 thousand square feet and an ABR of $1,017,362 thousand[121] - The company is focused on expanding its presence in high-density markets, as indicated by the performance in major CBSAs[121]

Core Insights - Regency Centers Corporation reported stable net income for Q1 2025, maintaining $0.58 per diluted share, consistent with Q1 2024 [4] - The company experienced strong growth in Same Property Net Operating Income (NOI), increasing by 4.3% year-over-year, excluding lease termination fees [9][15] - Regency's credit rating was upgraded to "A-" with a stable outlook by S&P Global Ratings in February 2025 [8][16] Financial Results - Net Income Attributable to Common Shareholders for Q1 2025 was $106.2 million, slightly down from $106.4 million in Q1 2024 [4] - Nareit Funds From Operations (FFO) for Q1 2025 was $210.7 million, or $1.15 per diluted share, compared to $200.0 million, or $1.08 per diluted share in Q1 2024 [5][24] - Core Operating Earnings for Q1 2025 was $199.4 million, or $1.09 per diluted share, up from $193.1 million, or $1.04 per diluted share in Q1 2024 [6][24] Portfolio Performance - Same Property percent leased was 96.5%, an increase of 100 basis points year-over-year [8][15] - Same Property anchor percent leased was 98.3%, up 130 basis points year-over-year, while Same Property shop percent leased was 93.7%, an increase of 70 basis points year-over-year [8][15] - The company executed 1.4 million square feet of comparable new and renewal leases during the quarter, achieving blended rent spreads of +8.1% on a cash basis and +18.6% on a straight-lined basis [8][15] Capital Allocation and Balance Sheet - Regency's in-process development and redevelopment projects had estimated net project costs of $499 million, with a blended yield of 9% [8][11] - The company completed acquisitions totaling approximately $133 million in Q1 2025, including the acquisition of Brentwood Place for $119 million [16] - As of March 31, 2025, Regency had approximately $1.2 billion of capacity under its revolving credit facility [16] 2025 Guidance - The company reaffirmed its 2025 earnings guidance for Nareit FFO, Core Operating Earnings, and Same Property NOI growth, projecting Nareit FFO per diluted share between $4.52 and $4.58 [14] - Same Property NOI growth without termination fees is expected to be between +3.2% and +4.0% for 2025 [14]

Company Overview - Regency Centers Corp. (REG) is expected to report first-quarter 2025 results on April 29, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1] - In the last reported quarter, Regency's NAREIT FFO per share was $1.09, exceeding the Zacks Consensus Estimate of $1.07, driven by healthy leasing activity and improvements in net operating income and base rent [2] U.S. Retail Real Estate Market - The U.S. shopping center market experienced negative net absorption of 5.9 million square feet in Q1 2025, marking the largest decline since Q3 2020, with neighborhood centers accounting for 75% of the demand pullback [4] - The national vacancy rate increased by 20 basis points to 5.5% year-over-year, although it remains near historical lows due to minimal new construction and tenants adjusting their real estate needs [3][5] - Asking rents for U.S. shopping centers rose by 2.3% year-over-year to $24.76 per square foot in Q1 2025 [5] Factors Influencing Regency's Performance - Regency's portfolio is primarily located in affluent suburban areas, benefiting from post-pandemic migration trends and hybrid work setups [6] - The company has a high-quality open-air shopping center portfolio, with over 80% of its centers grocery-anchored, which supports stable rental revenues [7] - The Zacks Consensus Estimate for REG's first-quarter revenues is $381.3 million, reflecting a 4.8% increase from the previous year, while the FFO per share estimate has been revised upward to $1.14, indicating a growth of nearly 5.6% [8] Challenges Facing Regency - Increased e-commerce adoption and higher interest expenses are expected to negatively impact Regency's quarterly performance [9] - The company's Earnings ESP is currently -0.78%, indicating uncertainty regarding a surprise in FFO per share for the upcoming quarter [10]

Core Viewpoint - Regency Centers Corp. is positioned for growth due to its premium portfolio of grocery-anchored shopping centers, strategic acquisitions, and a strong development pipeline, despite facing challenges from e-commerce, high interest rates, and a concentrated portfolio [1][10]. Group 1: Portfolio and Acquisitions - The company recently acquired Brentwood Place Shopping Center in Brentwood, TN, enhancing its portfolio quality in high-growth markets like Nashville [2]. - Regency's shopping centers are located in affluent suburban areas, attracting top grocers and retailers, with anchor tenants making up 42.4% of its portfolio as of December 31, 2024 [4]. - The company has a high-quality portfolio with over 80% of its centers grocery-anchored, ensuring consistent traffic, and six of its top ten tenants are high-performing grocers [5]. Group 2: Financial Performance and Management - Regency Centers executed acquisitions worth $92 million in 2024 and initiated over $250 million in development projects, with expectations for similar success in 2025 [6]. - As of December 31, 2024, the company had nearly $1.4 billion in capacity under its revolving credit facility, with a pro-rata net debt to operating EBITDAre ratio of 5.2X [7]. - The company received an 'A-' credit rating from S&P Global Ratings in February 2025, enhancing lender confidence and access to favorable debt market conditions [7]. Group 3: Dividend and Shareholder Value - Regency Centers declared a quarterly cash dividend of 70.5 cents in November 2024, a 5.2% increase from the previous quarter, with a CAGR of 3.7% in dividends from 2014 to Q4 2024 [9]. - The company has increased its dividend four times in the last five years, demonstrating a commitment to boosting shareholder wealth [9]. Group 4: Market Challenges - The shift from brick-and-mortar retail to e-commerce is expected to negatively impact retail REITs, including Regency Centers [10]. - High interest rates may dampen consumer sentiment, affecting demand for retail space and limiting rent increases and occupancy growth [10]. - The company's properties in California and Florida represent 23.1% and 18.9% of its annual base rents, making it vulnerable to market fluctuations in these regions [11].

Core Viewpoint - Regency Centers Corporation will announce its first quarter 2025 earnings results on April 29, 2025, after market close, followed by an earnings conference call on April 30, 2025, at 11:00 a.m. ET [1][2] Company Overview - Regency Centers is a leading national owner, operator, and developer of shopping centers located in suburban trade areas with strong demographics [3] - The company's portfolio includes properties with productive grocers, restaurants, service providers, and top-tier retailers that engage with their neighborhoods and communities [3] - Regency Centers operates as a fully integrated real estate company and is a qualified real estate investment trust (REIT), self-administered, self-managed, and a member of the S&P 500 Index [3]