Financial Performance - Net income attributable to common shareholders for the nine months ended September 30, 2024, was $303.7 million, up from $273.1 million for the same period in 2023, representing an increase of approximately 11.5%[125] - Net income for the nine months ended September 30, 2024, was $321.2 million, an increase of $42.3 million compared to the same period in 2023[155] - Total lease income for the nine months ended September 30, 2024, increased by $115.8 million to $1.05 billion, driven by an $81.9 million increase in base rent[145] - Total lease income increased by $28.1 million to $349.1 million for the three months ended September 30, 2024, compared to $320.9 million in the same period of 2023[134] - Nareit FFO attributable to common stock and unit holders was $195.1 million for the three months and $591.4 million for the nine months ended September 30, 2024, compared to $182.8 million and $546.0 million in the same periods of 2023[161] - Core Operating Earnings reached $187.8 million for the three months and $570.1 million for the nine months ended September 30, 2024, compared to $174.0 million and $516.5 million in the same periods of 2023[161] Property and Leasing - As of September 30, 2024, the company owned interests in 483 retail properties, with a total gross leasable area (GLA) of approximately 57.2 million square feet[124] - The percentage leased for operating and development properties was 95.5% as of September 30, 2024, compared to 94.9% at the end of 2023[128] - The percentage leased for unconsolidated properties in real estate investment partnerships was 96.6% as of September 30, 2024, consistent with the previous period[128] - The total property portfolio was 95.6% leased as of September 30, 2024, compared to 94.6% a year earlier[129] - A total of 1,503 new and renewal leasing transactions were executed, representing 6.3 million Pro-rata SF with positive rent spreads of 9.0% for the nine months ended September 30, 2024[129] Revenue and Expenses - Total operating expenses for the nine months ended September 30, 2024, rose by $91.9 million to $703.1 million[147] - Total operating expenses rose by $24.5 million to $235.9 million for the three months ended September 30, 2024, compared to $211.3 million in 2023[138] - Interest expense, net, increased by $20.9 million to $133.1 million, primarily due to higher average outstanding balances and interest rates[151] - General and administrative costs increased by $4.2 million, attributed to various operational factors[151] - Real estate taxes increased by $18.4 million, primarily due to higher assessments across the portfolio[151] Cash Flow and Liquidity - The company generated cash flows from operating activities of $598.8 million for the nine months ended September 30, 2024, compared to $547.7 million in the same period of 2023[169] - Net cash provided by operating activities increased by $51.1 million to $598.8 million for the nine months ended September 30, 2024, compared to $547.7 million in 2023[174] - The company has $110.0 million of unrestricted cash and additional capital sources including a $1.5 billion line of credit with $1.46 billion available[167] - The company expects to continue paying dividends that meet the requirements to qualify as a REIT for federal income tax purposes[168] Development and Investment - The company invested $235.3 million in real estate development and capital improvements during the nine months ended September 30, 2024, an increase of $76.3 million from 2023[179] - Estimated Pro-rata project costs for current development projects totaled $618.3 million as of September 30, 2024, up from $468.1 million at December 31, 2023[129] - The company plans to continue developing and redeveloping shopping centers, with several projects in various stages of completion, including Baybrook East and Sienna Grande[182] Shareholder Returns - 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[127] - Preferred stock dividends increased by $8.6 million due to the preferred stock issued in connection with the UBP acquisition[156] - The company paid $47.2 million more in dividends due to an increase in the dividend rate per share and the number of shares outstanding, along with preferred dividends starting in late 2023[45] - The company repurchased common shares through its share repurchase program totaling $200.1 million in 2024, a significant increase from $20.0 million in 2023[183] Debt and Financing - The company had $1.6 billion in notes payable maturing through 2034, with 93.4% at a fixed interest rate of 3.9%[185] - The average interest rate for variable rate debt as of September 30, 2024, was 5.88%[192] - The company repaid $122.0 million in net proceeds from its Line and received $734.9 million from issuing unsecured public debt in 2024[45] - The company received a credit rating upgrade to A3 with a stable outlook from Moody's Investors Service[129] ESG and Corporate Responsibility - The company is committed to implementing leading environmental, social, and governance (ESG) practices through its Corporate Responsibility program[127] - The company has implemented mitigation strategies to address inflation-related cost increases in construction materials and labor, including fixed cost contracts and pre-ordering materials[170]
Regency Centers(REGCO) - 2024 Q3 - Quarterly Report