Regency Centers(REGCP) - 2025 Q3 - Quarterly Report

Financial Performance - Net income attributable to common shareholders for the nine months ended September 30, 2025, was $314.7 million, compared to $303.7 million for the same period in 2024, reflecting a year-over-year increase [136]. - Total lease income rose by $67.9 million to $1.1 billion for the nine months ended September 30, 2025, driven by a $42.1 million increase in base rent and a $20.8 million increase in recoveries from tenants [156][158]. - Net income attributable to common shareholders increased by $11.1 million to $314.7 million for the nine months ended September 30, 2025, compared to $303.7 million in 2024 [165]. - Total real estate revenue for the nine months ended September 30, 2025, increased by $55,853,000 (4.9%) to $1,184,523,000 compared to the same period in 2024 [169]. - Net income attributable to common shareholders for Q3 2025 was $105,960,000, up from $98,056,000 in Q3 2024 [171]. - Nareit FFO for Q3 2025 was $213,499,000, an increase of $18,414,000 (9.4%) compared to Q3 2024 [172]. - Core Operating Earnings for Q3 2025 were $202,610,000, reflecting an increase of $14,847,000 (7.9%) from Q3 2024 [173]. - AFFO for Q3 2025 was $176,522,000, up from $158,216,000 in Q3 2024, representing a growth of 11.5% [173]. Leasing and Occupancy - Pro-rata same property NOI, excluding termination fees, grew by 5.5% compared to the nine months ended September 30, 2024, driven by improvements in occupancy rates and contractual rent increases [136]. - A total of 1,418 new and renewal leasing transactions were executed, representing 5.3 million Pro-rata square feet, with positive rent spreads of 10.4% during the nine months ended September 30, 2025 [136]. - The total property portfolio was 96.0% leased as of September 30, 2025, compared to 96.3% and 95.6% for December 31, 2024, and September 30, 2024, respectively [136]. - The same property portfolio was 96.4% leased as of September 30, 2025, compared to 96.7% and 96.0% for December 31, 2024, and September 30, 2024, respectively [136]. - The percentage leased for operating properties remains stable at 96.5% for both September 30, 2025, and December 31, 2024 [138]. - The weighted-average base rent PSF on signed Shop Space leases for the nine months ended September 30, 2025, is $41.39, reflecting a positive rent spread of 10.4% compared to the previous year [140]. - Base rent increased by $12,259,000 (4.5%) for Q3 2025 and $34,056,000 (4.2%) for the nine months ended September 30, 2025, driven by contractual rent steps and increased occupancy [170]. - Uncollectible lease income decreased by $2,058,000 during the nine months ended September 30, 2025, indicating improved collection rates [170]. Capital Structure and Financing - The company maintained a conservative capital structure with sufficient liquidity to meet capital needs and manage debt maturities [137]. - The company issued $400 million of senior unsecured notes due 2032 with a coupon rate of 5.0% on May 13, 2025 [139]. - The company has $646.3 million of loans maturing within the next 12 months, with $250 million repaid upon maturity on November 3, 2025 [139]. - The company plans to utilize cash flows from operations, borrowings, and proceeds from real estate sales to meet long-term capital needs [176]. - As of September 30, 2025, the Company had $646.3 million of debt maturing within the next 12 months, including $450 million of unsecured public and private placement debt [179]. - The company expects to repay maturing notes payable from new borrowings and/or partner capital contributions, with potential higher interest expenses if refinancing occurs in a high-rate environment [200]. - The average interest rate for fixed rate debt is projected to range from 4.19% to 4.79% over the next five years, while the variable rate debt is at 4.97% [209]. - The company has the capacity to fund its pro-rata share of capital requirements from existing cash balances and operating cash flows [201]. Development and Investment - The company executed a disciplined development and redevelopment platform to create exceptional retail centers that deliver favorable returns [136]. - Estimated pro-rata project costs for current development and redevelopment projects increased to $668.1 million as of September 30, 2025, up from $497.3 million at December 31, 2024 [139]. - The Company invested $307.3 million in development, redevelopment, and capital improvements during the nine months ended September 30, 2025 [193]. - Total net development costs for in-process developments amount to $371.1 million, with 54% of costs incurred as of September 30, 2025 [196]. - The Shops at SunVet in Long Island, NY has the highest estimated project cost of $92.9 million, with 86% of costs incurred [196]. Corporate Responsibility and Strategy - The company focuses on owning and managing high-quality neighborhood and community shopping centers, primarily anchored by market-leading grocers [135]. - The company aims to create shareholder value by increasing earnings and dividends per share, targeting total returns at or near the top of its shopping center peers [136]. - The company emphasizes corporate responsibility practices to support and enhance its business goals and objectives [136]. - The company continuously monitors capital market conditions to assess its ability to access financing for maturing debt obligations [205]. Cash Flow and Liquidity - Cash flows from operations for the nine months ended September 30, 2025, were $623.7 million, an increase of $24.9 million from $598.8 million in 2024 [183]. - Total cash, cash equivalents, and restricted cash as of September 30, 2025, amounted to $205.6 million, up from $114.8 million in 2024 [189]. - The Company plans to require approximately $1,085.5 million in capital over the next 12 months for leasing commissions, tenant improvements, and maturing debt repayments [184]. - Net cash used in investing activities increased by $195.6 million, totaling $404.7 million for the nine months ended September 30, 2025 [190]. - Net cash used in financing activities decreased by $290.9 million, from $(366.3) million in 2024 to $(75.3) million in 2025 [197].