Financial Performance - Net income attributable to common shareholders for Q1 2024 was $106.4 million, up from $97.3 million in Q1 2023, representing a year-over-year increase of approximately 11.2%[131] - Net income attributable to common shareholders increased to $106.4 million in Q1 2024, up from $97.3 million in Q1 2023, representing a growth of 10.3%[145] - Total real estate revenue increased by $4.7 million to $340.0 million in Q1 2024, compared to $335.2 million in Q1 2023[151] - Total lease income increased by $44.3 million to $353.1 million for Q1 2024, primarily from base rent and recoveries from tenants[139] - Interest expense, net rose by $6.5 million to $42.9 million in Q1 2024, primarily due to increased interest on notes payable and unsecured credit facilities[144] - Operating and maintenance expenses increased by $4.0 million in Q1 2024, primarily due to higher property insurance and tenant-recoverable costs[151] - The company recognized gains on sale of real estate amounting to $11.4 million in Q1 2024, compared to $0.3 million in Q1 2023[144] - Management fee income for the three months ended March 31, 2024, was $6.4 million, compared to $6.0 million in the same period in 2023[183] Property and Portfolio Management - As of March 31, 2024, the company owned interests in 482 retail properties, totaling approximately 57.0 million square feet of gross leasable area[126] - The company’s strategy includes owning and managing high-quality neighborhood and community shopping centers primarily anchored by market-leading grocers[128] - The company’s properties are predominantly located in suburban trade areas with compelling demographics, enhancing their market appeal[126] - Total property portfolio leased at 95.0% as of March 31, 2024, up from 94.9% a year earlier[133] - Pro-rata same property NOI grew 1.4% year-over-year, driven by improved occupancy rates and positive rent spreads[132] - Pro-rata same property NOI, excluding termination fees, grew by 1.4% to $235.1 million in Q1 2024 from $231.7 million in Q1 2023[151] - Executed 461 new and renewal leasing transactions totaling 2.0 million Pro-rata SF with positive rent spreads of 8.5% for Q1 2024, compared to 5.5% in Q1 2023[132] - The same property count increased to 400 with a total GLA of 42,884 thousand square feet in Q1 2024, compared to 395 properties with 42,148 thousand square feet in Q1 2023[154] Capital Structure and Financing - The company maintains a conservative capital structure with a strong balance sheet and sufficient liquidity to meet capital needs[128] - Pro-rata net debt and Preferred Stock-to-operating EBITDAre ratio remained stable at 5.4x for the trailing 12 months[132] - Regency priced a public offering of $400 million of senior unsecured debt with a coupon of 5.250% to reduce outstanding balances and for general corporate purposes[132] - Credit rating upgraded to A3 with a stable outlook by Moody's Investors Service in February 2024[132] - The company has $224.7 million in unrestricted cash and additional capital sources including a $500 million ATM program and a $1.5 billion line of credit with $1.462 billion available[162] - The company issued $400 million of senior unsecured notes due in 2034 at a coupon rate of 5.25%, intending to use proceeds to pay off $250 million of unsecured debt maturing in June 2024[161] - The company had $1.5 billion in notes payable maturing through 2034, with 94.8% at a fixed interest rate of 3.8%[181] - Scheduled principal repayments on notes payable for 2024 total $9.8 million, with a pro-rata share of $4.3 million[181] Development and Redevelopment - The company is focused on executing a disciplined development and redevelopment platform to create exceptional retail centers that deliver favorable returns[128] - The company plans to continue developing and redeveloping shopping centers, with several projects in various stages of construction, including Glenwood Green and Baybrook East[175] - Estimated Pro-rata project costs for ongoing development projects reached $547.1 million as of March 31, 2024, an increase from $468.1 million at the end of 2023[132] - Total estimated net project costs for redevelopments in process amount to $326.9 million, with 47% of costs incurred as of March 31, 2024[177] - The company invested $60.9 million in real estate development and capital improvements during the three months ended March 31, 2024, compared to $44.6 million in the same period of 2023[174] Shareholder Returns and Dividends - The company aims to create shareholder value by increasing earnings and dividends per share, targeting total returns at or near the top of its shopping center peers[128] - The company declared a common stock dividend of $0.67 per share, payable on July 3, 2024, to shareholders of record as of June 12, 2024[168] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) practices through its Corporate Responsibility program[128] - The company has accrued liabilities of $15.9 million for consolidated environmental remediation as of March 31, 2024[186] Cash Flow and Investments - For the three months ended March 31, 2024, the company generated cash flow from operations of $167.8 million, a 3.9% increase from $162.1 million in the same period of 2023[163] - Net cash used in investing activities increased by $103.3 million to $142.3 million for the three months ended March 31, 2024, primarily due to increased real estate development costs[169] - The company reported a net cash provided by financing activities of $113.3 million for the three months ended March 31, 2024, a change of $237.0 million compared to the same period in 2023[178] Tenant and Market Conditions - Tenants in bankruptcy represent 0.6% of Pro-rata annual base rent, primarily related to Rite Aid's filing in October 2023[138] - The company distributed $4.4 million to limited partners during the three months ended March 31, 2024, while receiving $1.5 million in contributions[178]
Regency Centers(REGCO) - 2024 Q1 - Quarterly Report