Regency Centers(US:REG)2024-08-02 16:28Financial Performance - Net income attributable to common shareholders for the six months ended June 30, 2024, was $205.6 million, compared to $184.1 million for the same period in 2023, representing an increase of 11.5%[105] - Total revenues for the three months ended June 30, 2024, were $357.25 million, an increase of $43.00 million compared to the same period in 2023[119] - Net income attributable to common shareholders for the three months ended June 30, 2024, was $99.3 million, up from $86.8 million in 2023[137] - Nareit FFO attributable to common stock and unit holders for the three months ended June 30, 2024, was $196.4 million, compared to $176.8 million in 2023[138] - Core Operating Earnings for the three months ended June 30, 2024, were $189.3 million, an increase from $164.7 million in 2023[138] Leasing and Occupancy - A total of 984 new and renewal leasing transactions were executed, representing 4.1 million Pro-rata square feet (SF) with positive rent spreads of 8.9% during the six months ended June 30, 2024[106] - The total property portfolio was 95.0% leased as of June 30, 2024, compared to 94.6% leased as of June 30, 2023[106] - The percentage leased for consolidated properties remained stable at 94.9%[108] - The percentage leased for unconsolidated properties was 96.4%, slightly down from 96.6%[110] - New and renewal rent spreads were positive at 8.9% for the six months ended June 30, 2024, compared to 9.2% for the same period in 2023[112] Revenue and Expenses - Total lease income increased by $43.4 million, primarily driven by a $31.5 million increase in base rent, including $24.8 million from the acquisition of UBP[118] - The total operating expenses for the same period increased to $233.24 million, up by $30.43 million from 2023[120] - Total operating expenses increased by $67.4 million, reaching $467.2 million compared to $399.8 million in the previous year[127] - Total real estate revenue rose by $7.7 million during the three months ended June 30, 2024, driven by a $6.4 million increase in base rent[135] - Real estate taxes increased by $12.8 million, mainly due to the acquisition of UBP[128] Development and Capital Expenditures - Estimated Pro-rata project costs for current development and redevelopment projects totaled $577.6 million as of June 30, 2024, up from $468.1 million at December 31, 2023[107] - Development and redevelopment projects completed in 2024 had an average stabilized yield of 10.6%[107] - The company plans to require approximately $530.6 million in capital over the next 12 months for leasing commissions, tenant improvements, and other related costs[147] - The company deployed $141.8 million for the development, redevelopment, and improvement of real estate properties during the six months ended June 30, 2024[152] - The estimated net development costs for in-process projects total $220.5 million, with various projects expected to stabilize between 2025 and 2027[153] Debt and Financing - Regency received a credit rating upgrade to A3 with a stable outlook from Moody's Investors Service[107] - A public offering of $400 million of senior unsecured notes due in 2034 was priced with a coupon of 5.250%[107] - Regency repaid $250 million of maturing senior unsecured notes on June 17, 2024[107] - As of June 30, 2024, Regency had $1.18 billion available on its line of credit, which expires on March 23, 2028[107] - The company expects to refinance or pay off $230.7 million of secured loan maturities within the next 12 months[143] Cash Flow and Investments - Cash flow from operations for the six months ended June 30, 2024, was $371.2 million, compared to $334.7 million for the same period in 2023, reflecting an increase of $36.5 million[147] - Net cash used in investing activities for the six months ended June 30, 2024, was $114.1 million, an increase of $22.7 million compared to $91.4 million in 2023[151] - The company repurchased $200.0 million worth of common stock, totaling 3,306,709 shares, under its Repurchase Program during 2024, compared to $20.0 million for 349,519 shares in 2023[155] - Net cash used in financing activities for the six months ended June 30, 2024, was $268.5 million, a slight decrease from $268.9 million in 2023[155] - The company generated $79.9 million in total cash, cash equivalents, and restricted cash as of June 30, 2024, an increase of $36.8 million from the previous year[150] Interest Rate and Debt Management - The weighted average fixed interest rate on notes payable is 3.8%, while the variable interest rate is 7.4% as of June 30, 2024[159] - The average interest rate for fixed rate debt is 4.00% for 2024, increasing to 4.36% for the total variable rate debt of $313.750 million[166] - An increase of 100 basis points in interest rates is projected to decrease future earnings and cash flows by approximately $3.1 million per year based on $313.8 million of floating rate mortgage debt[164] - The company continuously assesses market risk for floating rate debt, indicating a proactive approach to interest rate fluctuations[164] - The company's hedging strategies will influence the ultimate realized gain or loss from interest rate fluctuations[164]