Regency Centers(US:REGCP)2024-11-01 19:41Financial Performance - Net income attributable to common shareholders for the nine months ended September 30, 2024, was $303.7 million, an increase of 11.4% compared to $273.1 million for the same period in 2023[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] - Net income attributable to common shareholders was $98.1 million for the three months and $303.7 million for the nine months ended September 30, 2024, representing increases of 10.6% and 11.2%, respectively[161] - 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, reflecting increases of 6.7% and 8.3%, respectively[161] - Core Operating Earnings reached $187.8 million for the three months and $570.1 million for the nine months ended September 30, 2024, up 7.9% and 10.4%, respectively[161] Property and Leasing - As of September 30, 2024, the company owned interests in 483 retail properties, totaling approximately 57.2 million square feet of gross leasable area (GLA)[124] - The percentage leased for operating and development properties increased to 95.5% as of September 30, 2024, compared to 94.9% at the end of 2023[128] - The percentage leased for unconsolidated properties remained stable at 96.6% for both operating and development properties as of September 30, 2024[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 Income - 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] - 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] - Base rent increased by $19.2 million, primarily due to a $12.9 million increase from the acquisition of UBP and a $5.1 million net increase from same properties[137] - Base rent increased by $6.0 million (2.5%) for the three months and by $18.7 million (2.6%) for the nine months ended September 30, 2024, driven by rent steps in existing leases and increased occupancy[160] Expenses and Costs - Operating expenses rose to $235.9 million for the three months ended September 30, 2024, an increase of $24.5 million from $211.3 million in 2023[138] - Total operating expenses for the nine months ended September 30, 2024, rose by $91.9 million to $703.1 million, with significant increases in depreciation and property operating expenses[147] - General and administrative costs increased by $4.2 million, mainly due to higher compensation costs and technology support services[151] - Real estate taxes increased by $18.4 million, primarily due to higher assessments across the portfolio[151] - Interest expense, net, increased by $20.9 million to $133.1 million, primarily due to higher average outstanding balances and interest rates[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 for the same period in 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 REIT qualification requirements, having paid $381.5 million in dividends to common and preferred stockholders during the nine months ended September 30, 2024[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 the previous year[179] - Estimated Pro-rata project costs for current development and redevelopment 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] 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] - A 100 basis point increase in interest rates is estimated to decrease future earnings and cash flows by approximately $0.3 million per year based on $33.8 million of floating rate mortgage debt[189] - Net cash used in financing activities increased by $62.4 million to $366.3 million for the nine months ended September 30, 2024, compared to $303.9 million in 2023[183] - The company repaid $122.0 million in net proceeds from its Line of credit in 2024[45] 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, reflecting a full nine months of dividends related to the UBP acquisition[156] - 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] - The company paid $47.2 million more in dividends in 2024 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] 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]