Financial Performance - Net Income Attributable to Common Shareholders for Q2 2025 was $102.6 million, or $0.56 per diluted share, compared to $99.3 million, or $0.54 per diluted share in Q2 2024, representing a year-over-year increase of 3.9%[20] - Nareit FFO for Q2 2025 was $212.1 million, or $1.16 per diluted share, up from $196.4 million, or $1.06 per diluted share in Q2 2024, reflecting a growth of 7.8%[25] - Core Operating Earnings for Q2 2025 reached $202.2 million, or $1.10 per diluted share, compared to $189.3 million, or $1.02 per diluted share in Q2 2024, indicating a year-over-year increase of 6.9%[26] - Same Property NOI for Q2 2025 increased by 7.4% year-over-year, with Same Property base rent growth contributing 4.5% to this increase[29] - Same Property percent leased at the end of Q2 2025 was 96.5%, an increase of 100 basis points compared to the same period in 2024[29] - The company reported a net income attributable to common shareholders of $102.6 million for the three months ended June 30, 2025, compared to $99.3 million for the same period in 2024[40] - Total revenues for Q2 2025 reached $380.8 million, a 6.5% increase from $357.3 million in Q2 2024[82] - Lease income increased to $369.1 million in Q2 2025, up 6.1% from $347.8 million in Q2 2024[82] - Consolidated net operating income (NOI) for the first half of 2025 was $502.5 million, a 6.0% increase from $474.2 million in the first half of 2024[85] Guidance and Projections - The Company raised its 2025 Nareit FFO guidance to a range of $4.59 to $4.63 per diluted share, representing over 7% year-over-year growth[23] - Regency's updated guidance for 2025 includes Nareit FFO per diluted share projected at $4.59 - $4.63, up from the previous guidance of $4.52 - $4.58[34] - Same property NOI growth without termination fees is projected at +4.5% to +5.0%, an increase from the prior guidance of +3.2% to +4.0%[34] - Core Operating Earnings per diluted share guidance is set at $4.36 to $4.40, up from the prior range of $4.30 to $4.36[142] - Full Year 2025 guidance for Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.28 and $2.32, compared to the prior guidance of $2.25 to $2.31[142] Development and Acquisitions - As of June 30, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $518 million at a blended estimated yield of 9%[23] - Subsequent to the quarter end, the Company acquired a portfolio of five shopping centers in Orange County, CA, for $357 million[23] - The company completed acquisitions totaling $138.3 million in the first half of 2025, with an average cap rate of 5.5%[108] - Ground-up development expenditures surged to $41,466 in Q2 2025, significantly higher than $14,937 in Q2 2024, with year-to-date expenditures at $75,620 compared to $30,812[96] - Total in-process developments and redevelopments amount to $518 million, with 58% of costs incurred and a stabilized yield of approximately 9%[111] Debt and Financing - The Company issued $400 million of senior unsecured notes due 2032, with a coupon of 5.0%[23] - Outstanding debt increased to $5.374 billion as of June 30, 2025, compared to $4.984 billion at the end of 2024[70] - Total debt outstanding as of June 30, 2025, was $4,799,182, an increase from $4,408,700 as of December 31, 2024[98] - The weighted average contractual interest rate for total debt was 4.18% as of June 30, 2025, compared to 4.1% at the end of 2024[98] - The company has a total of $4.149 billion in unsecured debt with an effective interest rate of 4.19%[101] Operational Metrics - The company has a total of 483 properties with a gross leasable area (GLA) of 49,166,000 square feet[124] - The overall occupancy rate across all properties is 96.2%[124] - The average base rent per square foot for all properties is $25.45[124] - The percentage of leased retail operating properties was 96.4% as of June 30, 2025, slightly down from 96.5% in Q1 2025[72] - The company has a significant tenant exposure with 58% of ABR coming from shop tenants and 42% from anchor tenants[129] Risks and Challenges - Economic and geopolitical challenges, including interest rates and market conditions, may adversely impact the Company's financial condition and operations[56] - The Company faces risks related to retail trends and tenant success, which could affect revenues and cash flow[58] - The Company is subject to various risks, including those related to real estate investments, environmental factors, and compliance with regulations, which could materially affect its financial performance[59][60][61]
Regency Centers(REGCO) - 2025 Q2 - Quarterly Results