Regency Centers Provides an Update on Financing Activity, Property Transactions, and its Investment Pipeline Review
January 19 2021 - 8:00AM
Regency Centers Corporation (”Regency” or the “Company”) (NASDAQ:
REG) today provided an update on the repayment of its $265 million
term loan due 2022, fourth quarter 2020 property transaction
activity, and charges associated with certain pre-development
projects following its investment pipeline review.
Term Loan Repayment
On January 15, 2021, the Company repaid its $265
million term loan due January 2022 (the “Term Loan”) using cash
available, leaving no unsecured debt maturities until 2024. In
connection with the repayment of the Term Loan, the Company also
terminated interest rate swap contracts, resulting in a $2.5
million early extinguishment of debt charge recognized in the
fourth quarter of 2020.
Fourth Quarter 2020 Property Transaction
Activity
During the fourth quarter of 2020, Regency sold
five shopping centers for a combined gross sales price of $77.8
million at the Company’s share. In addition to the previously
disclosed sales of Jefferson Square and Whole Foods at Swampscott
for $25.3 million, the Company sold three shopping centers for
$52.5 million, including:
- Stonebrook Plaza, a 96,000 square
foot grocery-anchored center located in a suburb of Chicago, IL,
owned by a joint venture in which Regency’s share is 40%;
- Old Connecticut Path, an 80,000
square foot grocery-anchored center located in a suburb of Boston,
MA, owned by a joint venture in which Regency’s share is 30%;
and
- South Bay Village, a 108,000 square
foot grocery-anchored center wholly owned by Regency and located in
a suburb of Los Angeles, CA.
During the fourth quarter of 2020, Regency also
sold three land parcels for a combined gross sales price of $8.1
million at the Company’s share.
Investment Pipeline Review
In May of 2020, in light of the COVID-19
pandemic, Regency announced an in-depth review of its extensive
future pipeline of value-add development and redevelopment
projects, many of which were in the pre-development stages. This
evaluation included potential impacts to scope, investment,
tenancy, timing, and return on investment to determine the most
appropriate direction of each project.
As a result of this process and the decision not
to pursue certain projects or components of projects, the Company
estimates the write-off of certain previously capitalized
pre-development costs will be in a range of $7.0 to 9.0 million for
the fourth quarter of 2020. Included in this range is the
anticipated write-off of approximately $5.3 million at Serramonte
Center due to revised scope following the review process. The
broader multi-phased project remains in Regency’s investment
pipeline, however, including stand-alone restaurant pads, a new
hotel on a ground lease, renovation and modernization of the
interior common area, and redevelopment of the former JC Penney
box. The Company will provide additional detail on all in-process
and future pipeline projects together with fourth quarter 2020
results on February 11, 2020.
“An extensive and thoughtful review of our
investment pipeline has helped us make the most appropriate
decisions with regard to each of our projects through the lens of
the current environment, as we pivot toward a post-COVID world,”
said Lisa Palmer, President and Chief Executive Officer. “We
continue to move forward with our capital allocation strategy and
remain confident in the strength of our in-process and future value
creation opportunities.”
About Regency Centers Corporation
(NASDAQ: REG)
Regency Centers is the preeminent national owner,
operator, and developer of shopping centers located in affluent and
densely populated trade areas. Operating as a fully integrated real
estate company, Regency Centers is a qualified real estate
investment trust (REIT) that is self-administered, self-managed,
and an S&P 500 Index member. For more information, please visit
RegencyCenters.com.
Forward Looking Statements
Certain statements in this document regarding
anticipated financial, business, legal or other outcomes including
business and market conditions, outlook and other similar
statements relating to Regency’s future events, developments,
redevelopments or financial or operational performance or results,
are “forward-looking statements” made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking statements
are identified by the use of words such as “may,” “will,” “should,”
“expect,” “estimate,” “believe,” “intend,” “forecast,”
“anticipate,” “guidance,” and other similar language. However, the
absence of these or similar words or expressions does not mean a
statement is not forward-looking. While we believe these
forward-looking statements are reasonable when made,
forward-looking statements are not guarantees of future performance
or events and undue reliance should not be placed on these
statements. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we
can give no assurance these expectations will be attained, and it
is possible actual results or events may differ materially from
those indicated by these forward-looking statements due to a
variety of risks and uncertainties. When considering an investment
in our securities, you should carefully read and consider the risks
attendant to such investment, as described in our Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and our other filings and
submissions to the SEC. Forward-looking statements are only as of
the date they are made, and Regency undertakes no duty to update
its forward-looking statements except as required by law.
Christy McElroy904 598
7616ChristyMcElroy@regencycenters.com
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