Property Ownership and Portfolio - As of December 31, 2025, Regency Centers Corporation had full or partial equity ownership interests in 481 properties, encompassing approximately 58.4 million square feet of gross leasable area[32]. - The company's pro-rata share of gross leasable area is approximately 50.5 million square feet, including properties owned through unconsolidated real estate partnerships[32]. - As of December 31, 2025, the total number of consolidated properties is 391, with a Gross Leasable Area (GLA) of 46,102 thousand square feet and an overall leased percentage of 96.0%[171]. - The total number of unconsolidated properties is 90, with a GLA of 12,275 thousand square feet and a leased percentage of 96.8% as of December 31, 2025[173]. - The company has 86 properties in Florida, representing 23.0% of total GLA, with a leased percentage of 96.2% as of December 31, 2025[171]. - The company’s properties in California increased from 55 to 62, with a GLA of 9,304 thousand square feet and a leased percentage of 94.9%[171]. - The company’s properties in Texas have a GLA of 3,679 thousand square feet, maintaining a leased percentage of 95.7%[171]. - The company’s properties in New York have a GLA of 3,468 thousand square feet, with a leased percentage of 94.5% as of December 31, 2025[171]. Financial Performance - Net income attributable to common shareholders for the year ended December 31, 2025, was $513.8 million, up from $386.7 million in 2024, reflecting a significant increase in operating performance[204]. - The company recognized a $72.2 million gain from a partial distribution-in-kind transaction during the year[204]. - Base rent from same properties increased by $45.2 million, indicating improved operational metrics[204]. - Total lease income rose by $100.0 million to $1.511 billion in 2025, driven primarily by an increase in base rent[214]. - Total operating expenses increased by $30.4 million to $970.5 million in 2025, with property operating expenses rising by $16.2 million[216]. - Net income attributable to the Company increased by $127.1 million, reaching $527.5 million in 2025 compared to $400.4 million in 2024[224]. - Pro-rata same property NOI grew by 5.3% to reflect improvements in base rent and occupancy rates compared to 2024[205]. Market and Economic Conditions - The company faces risks from macroeconomic conditions, including inflation, interest rate changes, and geopolitical events, which could impact consumer spending and tenant operations[72][73]. - Increased operating costs and reduced demand for retail space may lead to higher vacancy levels and uncollectible rent income, adversely affecting financial results[74]. - Prolonged periods of high interest rates may negatively impact capitalization rates applied by investors, potentially leading to a decline in stock price and market capitalization[77]. - Changes in customer buying habits, including a shift towards e-commerce, may adversely impact revenues and cash flows from brick-and-mortar retailers[81]. - The company may experience significant revenue reductions if a major tenant files for bankruptcy, as they have the legal right to reject leases[89]. Sustainability and Corporate Responsibility - Regency Centers aims to generate same property net operating income (NOI) growth that consistently ranks at or near the top of its shopping center peers[38]. - The company has set a target to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 28% by 2030, measured against a 2019 baseline year[52]. - Regency Centers has established a goal to achieve net-zero Scope 1 and 2 GHG emissions across all operations by 2050[52]. - Regency Centers is committed to corporate responsibility practices that align with long-term value creation and sustainability[36]. Tenant and Lease Information - The top tenant, Publix, occupies 2,940 thousand square feet, contributing 2.9% to the total annualized base rent of $371,718 thousand[175]. - The total annualized base rent from the top ten tenants accounts for 29.4% of the overall rent, with a combined GLA of 19,110 thousand square feet[175]. - In 2026, a total of 1,021 leases are expiring, representing 3.0 million square feet of GLA with an average base rent of $28.45 PSF[177]. - The average base rent of new leases signed during 2025 was $36.02 PSF, indicating potential for rental rate growth[177]. - The average annual base rent across all properties is $25.91 PSF[177]. Risks and Challenges - The company faces risks associated with the acquisition of properties, including potential adverse effects on results of operations and cash flows[100]. - Compliance with the Americans with Disabilities Act and other regulations may incur additional costs that could negatively impact financial performance[93]. - The company may face challenges in leasing newly developed projects to full occupancy, impacting profitability and investment return expectations[101]. - Changes in tax laws could impact the company's ability to utilize tax-efficient strategies like 1031 exchanges, potentially reducing cash flow[104]. - The company faces risks related to partnerships and joint ventures, including lack of control over decision-making and potential bankruptcy of partners[116]. Technology and Cybersecurity - Cybersecurity risks threaten the confidentiality and integrity of the company's information systems, with potential financial impacts from breaches[126]. - The use of AI technologies presents risks related to confidentiality and the generation of inaccurate outputs, which could adversely affect business operations[131]. - The company must comply with evolving laws and regulations regarding data privacy and security, with potential costs and legal liabilities for non-compliance[130]. - The Audit Committee oversees the cybersecurity risk management program, ensuring regular updates on the status and potential risks[165]. - The Cyber Risk Committee (CRC) leads the cybersecurity strategy, focusing on identification, protection, detection, response, and recovery[158]. Stock and Shareholder Information - The company has a new common stock repurchase program authorized for up to $500 million, set to expire on February 28, 2029[199]. - As of February 4, 2026, there were 175,442 holders of the company's common stock[196]. - The company is required to make annual distributions equal to at least 90% of its REIT taxable income to maintain its REIT status[197]. - The company’s stock performance showed a cumulative total shareholder return of 184.91% from December 31, 2020, to December 31, 2025[203].
Regency Centers(REGCO) - 2025 Q4 - Annual Report