Regency Centers(US:REGCP)2026-02-13 21:54Property 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]. - The company has 507 employees, including 4 part-time employees, and operates 27 market offices nationwide[41]. - 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, which represent 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% as of December 31, 2025[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]. - Total lease income increased by $100.0 million to $1.511 billion in 2025, driven primarily by higher base rent and recoveries from tenants[214]. - Total operating expenses rose by $30.4 million to $970.5 million in 2025, with increases in depreciation and property operating expenses[216]. - Base rent from same properties increased by $45.2 million, indicating improved operational metrics[204]. - Pro-rata same property NOI grew by 5.3% to reflect improvements in base rent and occupancy rates compared to 2024[205]. - Pro-rata same property NOI growth, excluding termination fees, was 5.3%[230]. - The company reported a 9.8% increase in gross margins due to cost optimization initiatives[9]. - Overall, the company is optimistic about achieving a 12.5% increase in net income for the next fiscal year[10]. Market Strategy and Development - 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 focuses on high-quality developments, redevelopments, and acquisitions to enhance its portfolio in a long-term accretive manner[38]. - The company actively pursues opportunities for new retail development and redevelopment, but delays in government approvals may adversely impact expected returns[97]. - The company is actively pursuing acquisition opportunities to bolster its portfolio and expand its market share in key regions[184]. - Future developments include the Shops at Stone Bridge, expected to open in 2024, which will further enhance the company's portfolio[183]. - The company is focusing on enhancing tenant mix and property upgrades to attract higher-quality tenants, which is expected to improve overall profitability[184]. Environmental and Governance Initiatives - Regency Centers targets to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 28% by 2030, measured against a 2019 baseline year, and aims for net-zero emissions by 2050[52]. - The company emphasizes corporate governance and ethical practices to create long-term value for stakeholders[49]. - Regency Centers promotes philanthropic efforts and community engagement, with employees actively participating in local non-profits[48]. Risks and Challenges - The company faces risks from macroeconomic conditions, including inflation, interest rate changes, and geopolitical events, which could adversely impact consumer spending and tenant operations[72][73]. - Increased operating costs for tenants due to economic conditions may lead to reduced demand for retail space, impacting leasing activity and rental rates[74]. - The company may face significant expenses to recover claims and re-lease vacated spaces if tenants file for bankruptcy[89]. - The company faces risks associated with the acquisition of properties, which may adversely affect its results of operations and cash flows[100]. - Changes in tax laws could impact the company's ability to utilize tax-efficient strategies like 1031 exchanges, potentially reducing cash flow available for commitments[104]. - Climate change poses risks to properties, with 20.2% of the portfolio located in California, which may increase operational costs and affect tenant demand[106]. - The company faces potential liabilities for environmental remediation costs, which could adversely impact financial performance and cash flow[110]. Tenant and Lease Information - The top tenant, Publix, occupies 2,940 thousand square feet, accounting for 5.8% of owned GLA and contributing $36,191 thousand to annualized base rent, which is 2.9% of total[175]. - The total annualized base rent from the top ten tenants amounts to $371,718 thousand, representing 29.4% of total annualized base rent[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 total number of tenants with expiring leases over the next ten years is 9,602, with a total GLA of 47,512 thousand square feet[177]. - The average annual base rent across all expiring leases is $25.91 PSF[177]. Stock and Shareholder Information - The company has a new common stock repurchase program authorized for up to $500 million, effective until February 28, 2029[199]. - As of February 4, 2026, there were 175,442 holders of the company's common stock, indicating a broad shareholder base[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]. Cybersecurity and Technology - Cybersecurity risks threaten the confidentiality and integrity of information systems, with potential material adverse financial impacts from breaches[126]. - The use of AI technologies presents risks related to confidentiality and the creation of flawed outputs, which could adversely affect business operations[131]. - The Cyber Risk Committee (CRC) leads the cybersecurity risk management program, focusing on risk identification, assessment, and mitigation[167]. - The CRC engages third-party expertise to assess and enhance cybersecurity defenses, ensuring alignment with recognized frameworks like the NIST Cybersecurity Framework[162]. - Since January 1, 2022, there have been no known cybersecurity incidents materially affecting the Company, but risks remain that could impact operations and financial condition[164].