Financial Data and Key Metrics Changes - Regency Centers achieved NAREIT FFO per share growth of close to 8% and Core Operating Earnings per share growth of nearly 7% for the full year, driven by strong operating fundamentals and substantial external growth from acquisitions and development projects [15][18] - Same-Property NOI growth finished at 5.3%, supported by substantial base rent contributions and low levels of uncollectible lease income [8][15] Business Line Data and Key Metrics Changes - The company reported a significant increase in same-property shop occupancy by 40 basis points, reaching a record of 94.2% leased at year-end [8][10] - Cash rent spreads of 12% in Q4 included renewal spreads at a record 13%, while gap rent spreads of 25% also marked an all-time high [10][15] Market Data and Key Metrics Changes - Tenant demand remains strong across various categories, with notable leasing activity from grocery anchors such as Whole Foods, Sprouts, and Trader Joe's [9][10] - The company noted historically low bad debt and continued growth in tenant sales and foot traffic, reinforcing the durability of its portfolio [4][6] Company Strategy and Development Direction - Regency Centers is focused on ground-up development as a primary driver of external growth, with a development pipeline of nearly $600 million and plans for nearly $1 billion in project starts over the next three years [12][14] - The company is leveraging its expertise and long-standing tenant relationships to build high-quality shopping centers at meaningful spreads to market value, positioning itself favorably in a low-supply growth environment [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, highlighting strong tenant demand and a favorable backdrop for physical retail, particularly grocery-anchored real estate [6][18] - The guidance for 2026 anticipates same-property NOI growth in the range of 3.25%-3.75%, driven by rent spreads and redevelopment deliveries [16][18] Other Important Information - The company has a strong balance sheet with A3, A- credit ratings from Moody's and S&P, and nearly full availability on its $1.5 billion credit facility [18] - Regency Centers is not planning to raise equity or sell properties to fund its investment pipeline, relying instead on strong free cash flow generation [18] Q&A Session Summary Question: Thoughts on acquisitions and market opportunities - Management noted strong demand for grocery-anchored real estate, with a broad range of opportunities available, but emphasized that acquisitions will only be pursued if they meet quality and growth profiles [22][24] Question: Impact of Amazon Fresh store closures - Management expressed confidence in the grocery sector, indicating that the closures could lead to opportunities for conversion to Whole Foods and highlighted the strength of existing leases with Amazon [30][32] Question: Development and redevelopment spend guidance - Management indicated that the $325 million development and redevelopment spend is roughly two-thirds ground-up and one-third redevelopment, with a strong focus on ground-up development moving forward [38][40] Question: Tenant demand and occupancy trends - Management reported that tenant health remains strong, with low accounts receivable and increasing sales and foot traffic, indicating resilience in the current market [54][55] Question: Construction cost assumptions - Management expressed confidence in stable construction costs and good visibility for future projects, indicating no significant pressure expected [96][97]