Financial Performance - Net income attributable to common shareholders for Q1 2023 was $97.3 million, down from $195.2 million in Q1 2022, which included gains on sale of real estate of $101.9 million [110]. - Net income attributable to common shareholders decreased to $97.3 million in Q1 2023 from $195.2 million in Q1 2022, a decline of 49.9% [127]. - Total real estate revenue rose by $12.3 million to $331.0 million in Q1 2023, driven by a $9.7 million increase in base rent [130]. - Nareit FFO attributable to common stock and unit holders increased to $186.5 million in Q1 2023 from $178.2 million in Q1 2022 [135]. - Total lease income increased by $15.2 million to $308.8 million in Q1 2023, primarily due to a $13.7 million increase in base rent [119]. - Cash flow from operations for the three months ended March 31, 2023, was $162.1 million, an increase of $19.2 million compared to $142.9 million in the same period of 2022 [146]. Property and Leasing - As of March 31, 2023, the company owned or had partial interests in 404 retail properties, totaling approximately 51.1 million square feet of gross leasable area [107]. - The percentage leased for operating and development properties was 94.8% as of March 31, 2023, consistent with the previous quarter [111]. - The percentage leased for unconsolidated properties in co-investment partnerships was 95.2% as of March 31, 2023, up from 94.8% in the previous quarter [111]. - Total property portfolio leased at 94.9% as of March 31, 2023, up from 93.9% a year earlier [112]. - 405 new and renewal leasing transactions executed, representing 1.1 million Pro-rata SF with positive rent spreads of 5.5% for Q1 2023, compared to 459 transactions and 1.9 million Pro-rata SF with 6.5% in Q1 2022 [112]. Development and Redevelopment - The company maintains a disciplined development and redevelopment platform to create exceptional retail centers that deliver favorable returns [109]. - Estimated Pro-rata project costs for ongoing development projects totaled $302.5 million as of March 31, 2023, slightly up from $300.9 million at the end of 2022 [112]. - The average stabilized yield for completed development and redevelopment projects in 2023 was 21% [112]. - The company plans to continue developing and redeveloping shopping centers, deploying $44.6 million for real estate improvements in Q1 2023 [150]. Financial Position and Liquidity - The liquidity and financial flexibility were maintained to cost-effectively fund investment opportunities and debt maturities [110]. - The company has no unsecured debt maturities until June 2024, indicating a stable financial position in the near term [112]. - As of March 31, 2023, the company has $65.2 million in unrestricted cash and a line of credit with an available capacity of $1.21 billion, maturing on March 23, 2025 [141]. - The company has no unsecured debt maturities in 2023 and $250 million maturing in 2024, with manageable secured mortgage maturities [140]. - The trailing 12-month fixed charge coverage ratio was 4.7x as of March 31, 2023, indicating strong cash flow relative to fixed charges [144]. Expenses and Costs - Operating expenses rose by $14.9 million to $197.0 million in Q1 2023, with significant increases in general and administrative costs by $6.5 million [122]. - General and administrative costs rose by $6.5 million to $25.3 million in Q1 2023, primarily driven by increased professional fees and travel-related costs [126]. - The company is facing increased costs due to high inflation, impacting capital requirements for construction materials and labor [142]. Shareholder Value and Dividends - The company aims to create shareholder value by increasing earnings and dividends per share to generate total returns at or near the top of its shopping center peers [109]. - Dividend payments increased by $4.2 million due to a higher dividend rate per share and an increase in the number of shares outstanding [154]. - The company repurchased $20.0 million worth of common stock, acquiring 349,519 shares through its Repurchase Program in Q1 2023 [154]. Environmental and Governance - The company emphasizes the importance of environmental, social, and governance (ESG) practices through its Corporate Responsibility Program [109]. - The company accrued liabilities of $11.4 million for environmental remediation as of March 31, 2023 [163]. Market and Investment Activities - Significant changes in investing activities included a $121.3 million decrease in proceeds from the sale of real estate, from $124.9 million in 2022 to $3.6 million in 2023 [147]. - The company continues to monitor capital markets and believes it can issue new debt to fund maturing obligations despite potential volatility and rising interest rates [164].
Regency Centers(REGCO) - 2023 Q1 - Quarterly Report