Regency Centers(REG)2025-05-02 18:21Financial Performance - Net income attributable to common shareholders for Q1 2025 was $106.2 million, slightly down from $106.4 million in Q1 2024[120] - Net income attributable to common shareholders for the three months ended March 31, 2025, was $106.174 million, a decrease of $187, compared to $106.361 million in 2024[135] - Total real estate revenue increased by $17.136 million to $396.135 million for the three months ended March 31, 2025, compared to $378.999 million in 2024[139] - Nareit FFO attributable to common stock and unit holders for the three months ended March 31, 2025, was $210.749 million, an increase from $199.967 million in 2024[142] - Cash flows from operations for the three months ended March 31, 2025, were $161.0 million, compared to $167.8 million in 2024[149] - Net cash provided by operating activities decreased by $6.7 million to $161.0 million for the three months ended March 31, 2025, compared to $167.8 million in 2024[155] - Net cash used in investing activities increased by $37.8 million to $180.1 million in 2025, primarily due to an $83.2 million acquisition of two operating properties[156] - Net cash provided by financing activities decreased by $77.6 million to $35.8 million in 2025, with significant debt-related activities including a $200 million draw from the Line[163] Property and Leasing Performance - Pro-rata same property NOI, excluding termination fees, increased by 4.3% compared to Q1 2024, driven by higher occupancy rates and positive rent spreads[120] - The total property portfolio was 96.3% leased as of March 31, 2025, consistent with December 31, 2024, and up from 95.0% in March 2024[120] - The same property portfolio was 96.5% leased as of March 31, 2025, compared to 96.5% in December 2024 and 95.5% in March 2024[120] - 450 new and renewal leasing transactions were executed in Q1 2025, representing 1.4 million Pro-rata SF with positive rent spreads of 8.1%[120] - The weighted average annual effective rent per square foot (PSF) for consolidated properties increased to $25.81 from $25.56, while for unconsolidated properties, it rose to $24.82 from $24.51[122] - The percentage leased for all properties remained stable at 96.3% as of March 31, 2025, consistent with December 31, 2024[122] Capital Structure and Liquidity - The company focuses on maintaining a conservative capital structure and strong balance sheet to support liquidity and investment opportunities[120] - The company had $1.22 billion available on its credit line as of March 31, 2025, which expires on March 23, 2028[123] - The company plans to require approximately $856.2 million in capital over the next 12 months for leasing commissions, tenant improvements, and maturing debt repayments[150] - The company has $430.3 million of loan maturities in the next 12 months, including $250 million of unsecured public debt maturing in November 2025[147] - The company expects to address maturing obligations through refinancing, available liquidity, and proceeds from potential property sales[147] - As of March 31, 2025, 89.4% of the company's wholly-owned real estate assets were unencumbered, enhancing access to secured and unsecured debt markets[152] Development and Redevelopment - The company continues to develop and redevelop high-quality shopping centers to enhance its portfolio[121] - Estimated pro-rata project costs for current development and redevelopment projects totaled $498.5 million, slightly up from $497.3 million at the end of 2024[123] - The company invested $101.4 million in real estate development, redevelopment, and capital improvements during the three months ended March 31, 2025, up from $60.9 million in 2024[159] - The company has ongoing development projects with estimated net development costs of $238.8 million and a total of 586 thousand square feet of gross leasable area (GLA) as of March 31, 2025[162] - Redevelopment costs increased significantly, with total redevelopment projects in-process amounting to $259.7 million as of March 31, 2025[162] - The company plans to continue developing and redeveloping shopping centers for long-term investment, focusing on enhancing its portfolio through various redevelopment strategies[161] Financial Health and Ratings - The company received a credit rating upgrade to A- with a stable outlook from S&P Global Ratings in February 2025[123] - The company maintained compliance with various financial covenants as of March 31, 2025, and expects to continue this compliance[154] - The average interest rate for fixed rate debt was 4.11% as of March 31, 2025, while the average for variable rate debt was 5.21%[174] - An increase of 100 basis points in interest rates could decrease future earnings and cash flows by approximately $2.7 million per year based on $274.6 million of floating rate mortgage debt[170] - The company believes it can successfully issue new secured or unsecured debt to fund maturing obligations despite potential capital market volatility[169] Tenant and Partnership Information - Tenants currently in bankruptcy represent 0.9% of the company's pro-rata annual base rent, with no single tenant exceeding 0.5%[128] - Equity in income of investments in real estate partnerships increased by $2.5 million due to increases from occupancy and positive rental spreads on new and renewal leases[135] - As of March 31, 2025, the total assets of the real estate partnerships amounted to $2,808,448,000, a decrease of 1.2% from $2,843,157,000 on December 31, 2024[164] - The liabilities of the real estate partnerships were $1,653,665,000, down 1.4% from $1,676,507,000 as of December 31, 2024[164] - Regency's pro-rata share of equity in real estate partnerships was $435,909,000, reflecting a decrease of 1.9% from $444,354,000 at the end of 2024[164] - The company acquired a 33.3% share in a property partnership for $10.3 million, resulting in 100% ownership of that property[164] Interest and Management Fees - Interest expense, net increased by $5.1 million to $48.0 million for the three months ended March 31, 2025, compared to $42.9 million in the same period of 2024[134] - Management fee income for the three months ended March 31, 2025, was $6,812,000, an increase of 6.5% from $6,396,000 in the same period of 2024[167] - Scheduled principal repayments on notes payable for 2025 total $29,991,000, with total notes payable reaching $1.5 billion maturing through 2034[165] - 91.8% of the notes payable had a weighted average fixed interest rate of 3.9%, while the remaining had a variable interest rate of 6.5% as of March 31, 2025[165]