Regency Centers(REGCP) - 2025 Q2 - Quarterly Results

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 3.8%[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] - Total revenues for Q2 2025 reached $380.8 million, a 6.5% increase from $357.3 million in Q2 2024[82] - Net income attributable to common shareholders for the first half of 2025 was $208.8 million, compared to $205.6 million in the same period of 2024, reflecting a 1.1% increase[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] Property Operations - Same Property NOI increased by 7.4% year-over-year for Q2 2025, with Same Property base rent growth contributing 4.5% to this increase[29] - Same Property percent leased was 96.5% at the end of Q2 2025, an increase of 100 basis points compared to the same period in 2024[29] - Same Property NOI for the three months ended June 30, 2025, was $276,888 million, reflecting a 7.5% increase compared to $257,596 million in 2024[91] - Same property NOI growth without termination fees year-to-date was 5.8%, compared to 4.3% in the previous year[72] Leasing Activity - The Company executed approximately 1.9 million square feet of comparable new and renewal leases during Q2 2025, achieving blended cash rent spreads of +10.0% and +19.3% on a straight-lined basis[29] - New leases in Q2 2025 totaled 102 transactions, with a new base rent of $36.73 per square foot and a cash rent spread of 14.4%[116] - Renewals in Q2 2025 accounted for 320 transactions, with a new base rent of $24.54 per square foot and a cash rent spread of 8.9%[116] Development and Acquisitions - Regency's in-process development and redevelopment projects had estimated net project costs of $518 million at a blended estimated yield of 9% as of June 30, 2025[23] - Subsequent to the quarter end, Regency acquired a portfolio of five shopping centers in Orange County, CA, for $357 million[23] - The company acquired properties totaling $138.3 million in purchase price during the first half of 2025, with an average cap rate of 5.5%[108] 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, compared to $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] Guidance and Projections - The midpoint of the increased 2025 Nareit FFO guidance represents more than 7% year-over-year growth, with guidance raised to a range of $4.59 to $4.63 per diluted share[23] - Full Year 2025 guidance for Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.28 and $2.32, up from the prior guidance of $2.25 to $2.31[142] - Same property NOI growth without termination fees is projected to be between 4.5% and 5.0%, an increase from the previous estimate of 3.2% to 4.0%[142] Risks and Uncertainties - Economic and geopolitical factors, including interest rates and market conditions, may adversely impact the Company's financial condition and operations[56] - The Company faces risks related to retail market conditions, including shifts in consumer behavior and the success of anchor tenants, which could affect revenues and cash flow[58] - The Company is subject to various risks associated with real estate investments, including potential declines in asset values and challenges in property acquisitions[59] Non-GAAP Measures - Nareit FFO is a key performance measure for the Company, reflecting net income excluding gains on sale and impairments of real estate, plus depreciation and amortization related to real estate[48] - Core Operating Earnings exclude transaction-related income or expenses and certain non-cash components, providing a clearer view of operational performance[49] - Adjusted Funds From Operations (AFFO) reflects cash available for business needs and distributions to shareholders, calculated by adjusting Core Operating Earnings for capital expenditures and other costs[50]