Regency Centers(REG)2025-04-29 20:24Financial Performance - Net Income Attributable to Common Shareholders for Q1 2025 was $106.2 million, or $0.58 per diluted share, consistent with Q1 2024[20] - Nareit FFO for Q1 2025 was $210.7 million, or $1.15 per diluted share, up from $200.0 million, or $1.08 per diluted share in Q1 2024[25] - Core Operating Earnings for Q1 2025 were $199.4 million, or $1.09 per diluted share, compared to $193.1 million, or $1.04 per diluted share in Q1 2024[26] - Total revenues for Q1 2025 increased to $380,912,000, up from $363,852,000 in Q1 2024, representing a growth of 4.3%[76] - Net income attributable to common shareholders for Q1 2025 was $106,174, compared to $106,361 in Q1 2024, reflecting a slight decrease[65] - Nareit Funds From Operations (Nareit FFO) increased to $210,749 in Q1 2025 from $199,967 in Q1 2024, representing a growth of 5.9%[65] - Core Operating Earnings for the first quarter of 2025 amounted to $199.4 million, with a per share diluted figure of $1.09[38] - The company reported a net income of $111,853,000 for Q1 2025, slightly down from $112,658,000 in Q1 2024, a decrease of 0.7%[90] Property and Leasing Activity - Same Property NOI increased by 4.3% year-over-year, excluding lease termination fees, with Same Property base rents contributing 4.0% to this growth[23] - Same Property percent leased ended the quarter at 96.5%, an increase of 100 basis points year-over-year[23] - Executed 1.4 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of +8.1% on a cash basis and +18.6% on a straight-lined basis[23] - Same Property NOI for the first quarter of 2025 was $273.8 million, reflecting a 4.5% increase compared to the same period in 2024[39] - The percentage of leased retail operating properties remained stable at 96.5% for Q1 2025, consistent with Q4 2024[67] - Leasing statistics for Q1 2025 show 384 transactions totaling 1,409,000 square feet with a new base rent of $28.22 per square foot, reflecting an 8.1% cash rent spread[110] - New leases in Q1 2025 totaled 84 transactions for 187,000 square feet at a new base rent of $38.29 per square foot, with a 22.7% straight-lined rent spread[110] - Renewals in Q1 2025 accounted for 300 transactions covering 1,222,000 square feet at a new base rent of $26.66 per square foot, with a 7.9% cash rent spread[110] Acquisitions and Developments - Acquired Brentwood Place, a community center in Nashville, TN, for $119 million on March 14, 2025[23] - The company completed acquisitions totaling approximately $133 million in the first quarter of 2025, including Brentwood Place for $119 million[33] - As of March 31, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $499 million at a blended yield of 9%[23] - Total in-process developments and redevelopments amount to $499 million, with 51% of costs incurred and a stabilized yield of approximately 9%[105] - Ground-up development expenditures surged to $34,154,000 in Q1 2025, significantly higher than $15,875,000 in Q1 2024, reflecting a growth of 115.0%[90] - The total estimated market value of land and non-income producing assets is $50,916[135] Debt and Financial Ratios - Pro-rata net debt and preferred stock to operating EBITDAre at March 31, 2025 was 5.3x[23] - Total debt outstanding as of March 31, 2025, was $4,641,240,000, an increase from $4,408,700,000 as of December 31, 2024, marking a rise of 5.3%[93] - The interest coverage ratio is 5.3x, reflecting strong earnings relative to interest obligations[97] - The company's total consolidated debt to total consolidated assets ratio is 27%, well below the 65% covenant requirement[97] - The weighted average interest rate on total debt is 4.07%, with fixed rates averaging 3.9% and variable rates at 6.5%[98] Guidance and Projections - Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.25 and $2.31 for 2025, compared to a year-to-date actual of $0.58[31] - Nareit Funds From Operations (Nareit FFO) per diluted share is expected to be between $4.52 and $4.58 for 2025, with a year-to-date actual of $1.15[31] - Core Operating Earnings per diluted share guidance for 2025 is set at $4.30 to $4.36, while the year-to-date actual stands at $1.09[31] - Same property NOI growth without termination fees is projected at 4.3%, with previous guidance of +3.2% to +4.0%[31] - General & administrative expenses are expected to be between $93,000 and $96,000 for 2025, consistent with prior guidance[137] - Development and redevelopment spending is anticipated to be around +/- $250,000 for 2025, unchanged from prior estimates[137] Market and Tenant Overview - The company has a significant presence in Florida, with 92 properties and an annual base rent of $226,829,000, averaging $21.73 per square foot[4] - Grocery tenants represent 20% of the total ABR, followed by Quick Service/Fast Casual restaurants at 13%[123] - The company has a significant tenant exposure with 58% of ABR coming from shop tenants and 42% from anchor tenants[123] - The top 50 Core Based Statistical Areas (CBSAs) account for 80.5% of the total properties, with a GLA of 41,105 thousand square feet and an ABR of $1,017,362 thousand[121] - The company is focused on expanding its presence in high-density markets, as indicated by the performance in major CBSAs[121]