Regency Centers(REGCP) - 2025 Q3 - Quarterly Results

Financial Performance - Net Income Attributable to Common Shareholders for Q3 2025 was $106.0 million, or $0.58 per diluted share, compared to $98.1 million, or $0.54 per diluted share in Q3 2024, representing a year-over-year increase of 11.9%[25] - Nareit FFO for Q3 2025 was $213.5 million, or $1.15 per diluted share, up from $195.1 million, or $1.07 per diluted share in Q3 2024, indicating a year-over-year growth of 9.8%[26] - Core Operating Earnings for Q3 2025 reached $202.6 million, or $1.09 per diluted share, compared to $187.8 million, or $1.03 per diluted share in Q3 2024, reflecting a year-over-year increase of 10.2%[27] - Net income attributable to common shareholders for Q3 2025 was $105,960,000, an increase from $98,056,000 in Q3 2024, representing a growth of 8.9%[42] - Nareit Funds From Operations (Nareit FFO) for Q3 2025 reached $213,499,000, up 9.4% from $195,085,000 in Q3 2024[70] - Core Operating Earnings for Q3 2025 were $202,610,000, reflecting a 7.9% increase compared to $187,763,000 in Q3 2024[70] - Total revenues for Q3 2025 reached $387.57 million, a 7.3% increase from $360.27 million in Q3 2024[83] - Total operating expenses increased to $244.18 million in Q3 2025 from $235.89 million in Q3 2024, marking a rise of 3.4%[83] Property Operations - Same Property Net Operating Income (NOI) increased by 4.8% year-over-year, excluding termination fees[24] - Same Property NOI for Q3 2025 was $274,237,000, up 4.8% from $261,751,000 in Q3 2024[42] - Year-to-date Same Property NOI reached $826,259,000, reflecting a 5.6% increase compared to $782,700,000 in the same period of 2024[42] - Same Property NOI without Termination Fees for Q3 2025 was $273,460,000, also showing a 4.8% increase from $261,002,000 in Q3 2024[42] - The company reported a total NOI of $281,868,000 for Q3 2025, compared to $261,160,000 in Q3 2024, marking a 7.9% increase[42] - Management highlighted that the increase in NOI was driven by improved rental rates and occupancy levels across properties[42] - Same Property percent leased at the end of Q3 2025 was 96.4%, an increase of 40 basis points year-over-year, while Same Property percent commenced was 94.4%, up 190 basis points year-over-year[24] Development and Acquisitions - Regency started over $170 million in new development and redevelopment projects during the quarter, bringing the year-to-date total to approximately $220 million[24] - The company acquired a portfolio of five shopping centers in Rancho Mission Viejo, CA, for $357 million[24] - Regency commenced development projects with estimated net costs of approximately $170 million in Q3 2025, including significant projects in Jacksonville, FL, and the San Francisco Bay Area[30] - The company completed property acquisitions totaling $538.5 million in 2025, enhancing its real estate portfolio[109] Debt and Financial Health - Pro-rata net debt and preferred stock to TTM operating EBITDAre at September 30, 2025 was 5.3x[24] - Total Debt Outstanding as of September 30, 2025, was $4.92 billion, an increase from $4.41 billion at the end of 2024, indicating a 11.5% rise[99] - Outstanding debt as of September 30, 2025, was $5,490,222,000, an increase from $4,984,071,000 as of December 31, 2024[70] - The company has a fixed charge coverage ratio of 4.6x and an interest coverage ratio of 5.2x as of September 30, 2025, indicating strong financial health[103] - The company's total consolidated debt to total consolidated assets ratio is 28% as of September 30, 2025, well below the required maximum of 65%[103] Guidance and Future Outlook - The company raised its 2025 Nareit FFO guidance to a range of $4.62 to $4.64 per diluted share, representing over 7% year-over-year growth[24] - Full year 2025 guidance for Nareit FFO per diluted share is updated to $4.62 - $4.64, up from the prior guidance of $4.59 - $4.63[35] - Core Operating Earnings per diluted share guidance for 2025 is updated to $4.39 - $4.41, compared to the previous range of $4.36 - $4.40[35] - Forward-looking statements indicate expectations for continued growth in rental income and property performance in 2026[55] Leasing Activity - The company executed 1.8 million square feet of comparable new and renewal leases during the quarter with blended rent spreads of +12.8% on a cash basis and +22.9% on a straight-lined basis[24] - In Q3 2025, total leasing transactions reached 366, with a Gross Leasable Area (GLA) of 1,821,000 sq. ft., and a new base rent of $27.88 per sq. ft., reflecting a rent spread of 12.8%[118] - The total number of renewals in Q3 2025 was 274 transactions, covering 1,481,000 sq. ft., with a new base rent of $26.80 per sq. ft. and a cash rent spread of 9.3%[118] - The weighted average lease term for new leases was 10.3 years as of September 30, 2025, indicating a stable leasing strategy[122] Market Presence and Tenant Composition - The company has a significant tenant exposure, with 58% of ABR coming from shop tenants and 42% from anchor tenants[131] - Grocery tenants represent 20% of the total ABR, while Quick Service/Fast Casual restaurants account for 14%[131] - The company maintains a strong presence in major metropolitan areas, with significant market share in New York-Newark-Jersey City and Miami-Ft Lauderdale-Pompano Beach[129]