Financial Performance - Net income attributable to common shareholders for the six months ended June 30, 2025, was $208.8 million, compared to $205.6 million for the same period in 2024[133]. - Net income attributable to common shareholders for the three months ended June 30, 2025, was $102.6 million, an increase of $3.4 million or 3.4% compared to $99.3 million in 2024[148]. - Total revenues for the six months ended June 30, 2025, were $761.8 million, reflecting an increase of $40.7 million compared to $721.1 million in 2024[150]. - Total lease income for the six months ended June 30, 2025, increased by $39.2 million to $740.2 million, driven primarily by a $23.3 million increase in base rent[150]. - Interest expense, net for the six months ended June 30, 2025, increased by $12.2 million to $98.3 million, primarily due to new public debt issuances and higher interest rates[154]. - General and administrative costs decreased by $3.3 million to $47.1 million, attributed to reduced expenses related to the UBP acquisition[153]. - Total other expense, net for the six months ended June 30, 2025, was $99.7 million, an increase of $39.1 million compared to $60.6 million in 2024[154]. Leasing and Occupancy - A total of 944 new and renewal leasing transactions were executed, representing 3.2 million Pro-rata square feet, with positive rent spreads of 9.1% during the six months ended June 30, 2025[133]. - The total property portfolio was 96.2% leased as of June 30, 2025, compared to 96.3% and 95.0% for December 31, 2024, and June 30, 2024, respectively[133]. - The same property portfolio was 96.5% leased as of June 30, 2025, consistent with the 96.5% leasing rate for December 31, 2024, and up from 95.5% for June 30, 2024[133]. - The company experienced a positive rent spread of 9.1% for new and renewal leases during the six months ended June 30, 2025, compared to 8.9% for the same period in 2024[137]. - Pro-rata same property NOI, excluding termination fees, grew by 5.8% for the six months ended June 30, 2025, driven by improvements in base rent and occupancy rates[133]. - Pro-rata same property NOI for Q2 2025 was $276.9 million, an increase of 7.5% from $257.6 million in Q2 2024[163]. Development and Capital Expenditures - The estimated pro-rata project costs for ongoing development and redevelopment projects totaled $517.7 million as of June 30, 2025, up from $497.3 million at the end of 2024[136]. - The company invested $204.7 million in development, redevelopment, and capital improvements during the first half of 2025, a $62.9 million increase from the prior year[187]. - Redevelopment costs rose by $21.5 million in 2025, reflecting the company's commitment to continuously improve its shopping center portfolio[189]. - The company completed various redevelopment projects with a total cost of $17.1 million, achieving a stabilization rate of 92%[190]. - Total estimated net development costs for in-process developments amount to $229.0 million, with an average cost per square foot of $450[190]. Financial Position and Liquidity - The company maintained liquidity and financial flexibility to fund investment opportunities and manage debt maturities effectively[134]. - As of June 30, 2025, the company had $1.46 billion available on its credit line as of June 30, 2025, which expires on March 23, 2028[136]. - The company has $39.6 million in floating rate mortgage debt, and a 100 basis point increase in interest rates would decrease future earnings and cash flows by approximately $0.4 million per year[198]. - The company has a total of $1.6 billion in notes payable maturing through 2034, with 91.3% having a weighted average fixed interest rate of 3.9%[193]. - The company reported a net cash provided by financing activities of $60.5 million for the six months ended June 30, 2025, a significant increase of $329.1 million compared to the same period in 2024[191]. - Total cash, cash equivalents, and restricted cash increased to $154.8 million as of June 30, 2025, up from $79.9 million in 2024, reflecting improved liquidity[183]. Debt Management and Interest Rate Risk - The company issued $400 million of senior unsecured notes due 2032 with a coupon rate of 5.0% on May 13, 2025[136]. - The company plans to address maturing obligations through refinancing and available liquidity under its Line[172]. - The company is actively monitoring interest rate risks and considering strategies such as interest rate swaps to mitigate exposure[170]. - The company plans to manage interest rate risk by primarily borrowing at fixed rates and using derivative financial instruments[200]. - The principal cash flow payments for fixed rate debt are projected to be $271.1 million in 2025 and $2.5 billion thereafter[202]. - The fair value of total debt as of June 30, 2025, is estimated at $4.6 billion[202]. Shareholder Value and Returns - The company focuses on creating shareholder value by increasing earnings and dividends per share, aiming for total returns at or near the top of its shopping center peers[133]. - The company paid $263.8 million in dividends during the first half of 2025, compared to $255.4 million in 2024, indicating a stable dividend distribution strategy[177]. - Core Operating Earnings for Q2 2025 reached $202.2 million, compared to $189.3 million in Q2 2024, marking an increase of 6.5%[166]. - Nareit FFO for Q2 2025 was $212.1 million, up from $196.4 million in Q2 2024, reflecting a growth of 8.0%[166]. Economic and Market Conditions - The company’s management team is actively monitoring economic conditions that could impact tenant performance, including inflation and supply chain disruptions[140]. - At June 30, 2025, tenants in bankruptcy represented only 0.3% of the company's pro-rata annual base rent[141]. - The company continuously monitors capital markets to evaluate its ability to issue new debt and repay maturing debt[197]. - The table of cash flows does not include unused commitments, limiting its predictive value regarding future interest rate fluctuations[199].
Regency Centers(REGCO) - 2025 Q2 - Quarterly Report