Financial Performance - Net Income Attributable to Common Shareholders for Q3 2024 was $98.1 million, or $0.54 per diluted share, compared to $89.1 million, or $0.50 per diluted share in Q3 2023, representing an 8.9% increase year-over-year[21] - Nareit FFO for Q3 2024 was $195.1 million, or $1.07 per diluted share, compared to $182.8 million, or $1.02 per diluted share in Q3 2023, reflecting a 9.2% increase year-over-year[26] - Core Operating Earnings for Q3 2024 was $187.8 million, or $1.03 per diluted share, compared to $174.0 million, or $0.97 per diluted share in Q3 2023, indicating a 7.0% increase year-over-year[27] - Total revenues for Q3 2024 increased to $360.3 million, up 8.9% from $330.6 million in Q3 2023[70] - Lease income rose to $349.1 million in Q3 2024, compared to $320.9 million in Q3 2023, reflecting a growth of 8.8%[70] - Net income attributable to common shareholders for Q3 2024 was $98,056,000, compared to $89,076,000 in Q3 2023, representing an increase of 10.6%[62] - Nareit Funds From Operations (FFO) for Q3 2024 was $195,085,000, up from $182,780,000 in Q3 2023, reflecting a year-over-year growth of 6.9%[62] - Core Operating Earnings for Q3 2024 reached $187,763,000, compared to $173,989,000 in Q3 2023, indicating an increase of 7.9%[62] Guidance and Projections - Updated 2024 Nareit FFO guidance to a range of $4.27 to $4.29 per diluted share, and Core Operating Earnings guidance to a range of $4.12 to $4.14 per diluted share, representing more than 5% year-over-year growth[24] - Full Year 2024 guidance for Net Income Attributable to Common Shareholders per diluted share is projected at $2.13 - $2.15, up from the previous guidance of $2.02 - $2.06[31] - Nareit Funds From Operations (FFO) per diluted share is expected to be $4.27 - $4.29, an increase from the prior guidance of $4.21 - $4.25[31] - Core Operating Earnings per diluted share guidance is set at $4.12 - $4.14, compared to the previous range of $4.06 - $4.10[31] - Same property NOI growth without termination fees or collection of 2020/2021 reserves is projected at +/- 3.50%, an increase from the previous estimate of +2.25% to +2.75%[31] Property Operations - Same Property NOI increased by 4.9% year-over-year in Q3 2024, with Same Property base rents contributing 2.7% to this growth[29] - Same Property portfolio was 96.1% leased as of September 30, 2024, an increase of 20 basis points sequentially and 80 basis points year-over-year[29] - Executed 1.8 million square feet of comparable new and renewal leases in Q3 2024 at blended rent spreads of +9.3% on a cash basis and +20.7% on a straight-lined basis[24] - Same Property NOI for the year to date increased by 2.4% to $702.8 million compared to $686.7 million in the previous year[39] - The percentage of leased retail operating properties improved to 95.9% in Q3 2024, up from 94.9% in Q3 2023[70] Acquisitions and Dispositions - The company acquired East Greenwich Square for approximately $33 million and University Commons for approximately $14 million[33] - The company disposed of Fenton Marketplace for approximately $12 million and an office building in Greenwich for approximately $3 million[33] - Acquired two grocery-anchored shopping centers for a total of $47 million at Regency's share, with one acquisition occurring after the quarter-end[24] - The company completed acquisitions totaling $78,155,000 in May and August 2024, with an average cap rate of 6.6%[101] - Dispositions in the first half of 2024 totaled $106,500,000, with an average cap rate of 5.4%[102] Debt and Financing - Priced a public offering of $325 million of senior unsecured notes due January 2035, with a coupon of 5.1%[24] - Outstanding debt as of September 30, 2024, was $4,966,828,000, compared to $4,688,805,000 at the end of 2023, representing an increase of 5.9%[62] - The pro-rata net debt and preferred stock to operating EBITDAre ratio is 5.2x as of September 30, 2024[33] - Total Debt Outstanding as of September 30, 2024, was $4,395,007, an increase from $4,153,949 at the end of 2023[87] - The weighted average contractual interest rate for fixed debt was 4.10% as of September 30, 2024, compared to 3.90% at the end of 2023[87] Development and Redevelopment - Started over $100 million in new development and redevelopment projects in Q3 2024, bringing the year-to-date total to $220 million[24] - Development and redevelopment expenditures for Q3 2024 were $65,940, significantly higher than $30,951 in Q3 2023, reflecting a growth of 113%[85] - Total in-process developments and redevelopments amount to $618 million, with 92% leased and an estimated stabilized yield of 9% +/-[104] - Ground-up developments have incurred costs of $237 million, with an average yield of 7% +/- and 73% leased[104] - Redevelopments total $382 million in costs, with 94% leased and an estimated yield of 10% +/-[104] Tenant and Leasing Information - The total annual base rent (ABR) as of September 30, 2024, reached $1,167,133,000, with an average ABR per sq. ft of $24.91 across 483 properties[119] - The company reported a total of 1,671 leasing transactions over the past 12 months, with a GLA of 7,900,000 sq. ft and an average new base rent of $27.14 per sq. ft[110] - The cash rent spread for new leases over the last 12 months was 18.0%, with a weighted average lease term of 9.5 years[110] - Grocery tenants contribute 20% to the total ABR, followed by Quick Service/Fast Casual restaurants at 13%[124] - The company has a significant tenant exposure, with 58% of ABR coming from shop tenants and 42% from anchor tenants[124] Market Presence and Strategy - The company has a significant presence in California, with multiple properties achieving over 95% leased status in major metropolitan areas[138] - Future expansion strategies may include increasing the GLA in high-demand areas to capitalize on market trends[140] - The company is focusing on maintaining high occupancy rates, with several properties achieving over 98% leased status[138] - The overall performance indicates a strong market presence and effective property management strategies, positioning the company for future growth[140] - The company is exploring potential acquisitions to enhance its portfolio and market presence in key regions[141]
Regency Centers(REGCO) - 2024 Q3 - Quarterly Results