Regency Centers(REG)2025-02-06 21:41Financial Performance - Net Income Attributable to Common Shareholders for Q4 2024 was $0.46 per diluted share, compared to $0.47 per diluted share in Q4 2023[17]. - Full year Net Income Attributable to Common Shareholders was $2.11 per diluted share for 2024, up from $2.04 per diluted share in 2023[17]. - For Q4 2024, Net Income Attributable to Common Shareholders was $83.1 million, or $0.46 per diluted share, a decrease from $86.4 million, or $0.47 per diluted share in Q4 2023[22]. - Net income attributable to common shareholders for Q4 2024 was $83,066,000, a decrease of 3.0% from $86,361,000 in Q4 2023[33]. - Net income attributable to common shareholders for the year ended December 31, 2024, was $386.7 million, a 7.5% increase from $359.5 million in 2023[62]. - Nareit Funds From Operations (Nareit FFO) for Q4 2024 was reported at $1.09 per diluted share, and $4.30 per diluted share for the full year[20]. - Nareit FFO for Q4 2024 was $199.5 million, or $1.09 per diluted share, compared to $190.0 million, or $1.02 per diluted share in Q4 2023, representing a 7.9% increase[22]. - Nareit Funds From Operations (FFO) for the year ended 2024 increased to $790,892, up 7.4% from $736,086 in 2023[79]. - Core Operating Earnings for Q4 2024 were $1.04 per diluted share, with full year earnings at $4.13 per diluted share[20]. - Core Operating Earnings for Q4 2024 were $190.6 million, or $1.04 per diluted share, up from $184.4 million, or $0.99 per diluted share in Q4 2023, reflecting a 6.0% increase[22]. - Core Operating Earnings per share (diluted) rose to $4.13 for the year ended 2024, compared to $3.95 in 2023, reflecting a 4.6% increase[79]. Property Performance - Same Property NOI increased by 4.0% year-over-year for Q4 2024, and by 3.6% for the full year[20]. - Same Property NOI for Q4 2024 increased by 4.0% year-over-year, with Same Property base rents contributing 3.3% to this growth[22]. - Same Property NOI for the year ended December 31, 2024, was $939,848 million, up 2.7% from $915,042 million in 2023[76]. - Same Property NOI without termination fees for the year ended 2024 was $934,974, reflecting a growth of 3.1% from $907,172 in 2023[54]. - Same Property percent leased reached a record high of 96.7%, increasing by 100 basis points year-over-year[20]. - Regency's Same Property portfolio was 96.7% leased as of December 31, 2024, an increase of 60 basis points sequentially and 100 basis points year-over-year[22]. - The percentage of leased properties increased to 96.3% as of December 31, 2024, compared to 95.1% in December 2023[56]. - The occupancy rate across all properties was reported at 96.3% as of December 31, 2024, indicating strong leasing performance[110]. - The overall occupancy rate for all properties is 96.3%, with an annual base rent (ABR) totaling $1,186,227,000[113]. Leasing Activity - Executed 8.1 million square feet of new and renewal leases in 2024, with blended rent spreads of +9.5% on a cash basis[20]. - The company executed approximately 2.3 million square feet of new and renewal leases in Q4 2024 at a blended cash rent spread of +10.8%[24]. - In Q4 2024, the total leasing transactions reached 426, with a Gross Leasable Area (GLA) of 2,298,000 sq. ft., and a new base rent of $27.49 per sq. ft., reflecting a rent spread of 10.8%[102]. - For new leases in Q4 2024, the weighted average lease term was 9.0 years, with a new base rent of $34.40 per sq. ft. and a cash rent spread of 15.9%[102]. - The total annual base rent (ABR) across all properties as of December 31, 2024, was $1,186,227,000, with an average ABR per sq. ft. of $25.16[110]. - The company achieved a rent spread of 12.8% for new leases over the past 12 months, indicating strong demand and pricing power[102]. Development and Redevelopment - Initiated over $35 million in new development and redevelopment projects in Q4 2024, totaling $258 million for the year[20]. - The company plans to spend approximately $250 million on development and redevelopment in 2025, compared to $228.8 million in 2024[26]. - Total in-process developments and redevelopments amount to $497 million, with 94% leased and an estimated yield of 9% +/-[96]. - Ground-up developments have incurred costs of $238 million, with an average stabilization yield of 7% +/- and 79% leased[96]. - Redevelopments total $259 million in costs, achieving a stabilization yield of 10% +/- and 96% leased[96]. Financial Guidance - Regency's 2025 guidance for Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.25 and $2.31, up from $2.11 in 2024[26]. - Nareit Funds From Operations (Nareit FFO) per diluted share is expected to be between $4.52 and $4.58 for 2025, up from $4.30 in 2024[147]. - Same property NOI growth without termination fees is projected to be between 3.2% and 4.0% for 2025, compared to 3.6% in 2024[147]. - Development and redevelopment spend for 2025 is estimated at approximately $250,000,000, compared to $228,847,000 in 2024[147]. - Acquisitions for 2025 are projected to be around $135,000,000, up from $91,905,000 in 2024[147]. Debt and Capital Structure - Total Debt Outstanding as of December 31, 2024, was $4,408,700, an increase from $4,153,949 in 2023[84]. - The weighted average contractual interest rate for total debt was 4.11% as of December 31, 2024, compared to 3.9% in 2023[84]. - The percentage of fixed debt increased to 98.3% in 2024 from 96.3% in 2023, indicating a shift towards more stable financing[84]. - The net debt to total market capitalization ratio stands at 24.1% as of December 31, 2024, a slight decrease from 26.7% in the previous quarter[88]. - Fixed charge coverage ratio is reported at 4.7x for December 31, 2024, indicating strong ability to cover fixed charges[88]. Market and Economic Outlook - Forward-looking statements indicate that the company anticipates potential impacts from economic and geopolitical challenges on its operations[41]. - The company emphasizes the importance of non-GAAP measures for evaluating financial performance and trends[36]. Tenant and Property Mix - Grocery tenants represent 20% of the total ABR, while quick service/fast casual restaurants account for 13%[115]. - The top 50 CBSAs contribute 83.4% of the total ABR, indicating a strong concentration of revenue in these areas[113]. - Major tenants include Publix, CVS, and Whole Foods, contributing to high occupancy rates in various locations[134]. - The average rent per square foot across the portfolio is $21.56, with major tenants including Publix, TJ Maxx, and CVS[131].