Regency Centers Corporation (“Regency” or the
“Company”) (NASDAQ: REG) today reported financial and
operating results for the period ended December 31, 2020, provided
an update related to the COVID-19 pandemic, and provided initial
guidance for 2021 Nareit FFO. For the three months ended December
31, 2020 and 2019, Net Income was $0.23 per diluted share and $0.24
per diluted share, respectively. For the twelve months ended
December 31, 2020 and 2019, Net Income was $0.26 per diluted share
and $1.43 per diluted share, respectively.
Fourth Quarter and Full Year 2020
Highlights
|
• |
Reported Nareit FFO for the fourth quarter of $0.76 per diluted
share; one-time items include a write-off of development pursuit
costs of $0.05 per diluted share, a swap breakage charge of $0.02
per diluted share, and a write-off of straight line rents
receivable of $0.04 per diluted share |
|
|
|
• |
Nareit FFO also reflects uncollectible lease income of $0.10 per
diluted share, primarily related to the COVID-19 pandemic |
|
• |
Same property Net Operating Income (“NOI”), excluding termination
fees, decreased 10.5% during the fourth quarter and 11.6% during
the full year 2020, respectively, from prior periods driven
primarily by a higher rate of uncollectible lease income due to the
COVID-19 pandemic |
|
• |
Realized percent leased of 92.9% in the same property portfolio as
of December 31, 2020 |
|
• |
Collected 92% of fourth quarter pro-rata base rent, as of February
8, 2021 |
|
• |
Executed 1.7 million square feet of new and renewal leases in the
fourth quarter at a blended rent spread of +0.6%, and executed 5.9
million square feet of new and renewal leases in the full year 2020
at a blended rent spread of +2.2% |
|
• |
Started over $124 million of development and redevelopment
projects, and completed over $71 million of projects with a
stabilized yield of 8%, during the full year 2020 |
|
• |
Completed property dispositions of $77.8 million and non-income
producing land sales of $8.1 million, each at Regency’s share,
during the fourth quarter. Completed property and outparcel
dispositions of $190.8 million at a cap rate of 5.7% and non-income
producing land sales of $18.6 million, all at Regency’s share,
during the full year 2020 |
|
• |
Realized pro-rata net debt-to-operating EBITDAre of 6.0x at
December 31, 2020 |
Subsequent Highlights
|
• |
Subsequent to year-end, closed on the sale of one shopping center
for a gross sales price of $9.0 million, and one non-income
producing asset for $29.4 million, both at Regency’s share |
|
• |
On January 15, 2021, repaid the $265 million term loan originally
due January 2022 (the “Term Loan”) using cash available, leaving no
unsecured debt maturities until 2024 |
|
• |
On January 27, 2021, Regency issued its first TCFD Climate Change
Risk Report, illustrating the Company’s continued commitment to
corporate responsibility and transparency |
|
• |
On February 9, 2021, closed on an amended and restated $1.25
billion revolving credit facility maturing March 23, 2025,
replacing the existing revolving credit facility |
|
• |
On February 10, 2021, Regency’s Board of Directors (the “Board”)
declared a quarterly cash dividend on the Company’s common stock of
$0.595 per share |
|
• |
Included on Newsweek’s Most Responsible Companies List 2021 for the
second year in a row |
“I’m so proud of how our team has navigated the
incredible challenges we faced this past year, working harder than
ever to serve our tenants, our customers, our communities and our
shareholders,” said Lisa Palmer, President and Chief Executive
Officer. “While we acknowledge the meaningful uncertainty that
still exists in 2021, we are encouraged by the continued
improvement in rent collections and positive momentum in leasing
activity that we experienced in the fourth quarter.”
Financial Results
Net Income
|
• |
For the three months ended December 31, 2020, Net Income
Attributable to Common Stockholders (“Net Income”) was $38.5
million, or $0.23 per diluted share, compared to Net Income of
$40.3 million, or $0.24 per diluted share, for the same period in
2019. |
|
|
|
• |
Fourth quarter Net Income includes a $0.10 per diluted share
non-cash impairment charge primarily related to 101 7th Avenue,
previously occupied by Barneys New York. |
|
• |
For the twelve months ended December 31, 2020, Net Income was $44.9
million, or $0.26 per diluted share, compared to $239.4 million, or
$1.43 per diluted share, for the same period in 2019. |
Nareit FFO
|
• |
For the three months ended December 31, 2020, Nareit Funds From
Operations (“Nareit FFO”) was $129.5 million, or $0.76 per diluted
share, compared to $168.5 million, or $1.00 per diluted share, for
the same period in 2019. Items that impact fourth quarter Nareit
FFO comparability include: |
|
|
|
• |
A $0.05 per diluted share write-off of previously-capitalized
development pursuit costs; |
|
|
|
• |
A $0.02 per diluted share charge related to the termination of
interest rate swap contracts associated with the repayment of the
Company’s $265 million term loan; |
|
|
|
• |
Uncollectible lease income of $0.10 per diluted share and a $0.04
per diluted share write-off of straight line rents receivable,
primarily related to uncollected rent due to the COVID-19 pandemic.
For additional detail, please refer to pages 32 and 33 of the
fourth quarter 2020 supplemental disclosure. |
|
• |
For the twelve months ended December 31, 2020, Nareit FFO was
$502.0 million, or $2.95 per diluted share, compared to $654.4
million, or $3.89 per diluted share, for the same period in
2019. |
Core Operating Earnings
|
• |
For the three months ended December 31, 2020, Core Operating
Earnings was $125.1 million, or $0.73 per diluted share, compared
to $152.9 million, or $0.91 per diluted share, for the same period
in 2019. |
|
• |
For the twelve months ended December 31, 2020, Core Operating
Earnings was $505.2 million, or $2.97 per diluted share, compared
to $611.7 million, or $3.64 per diluted share, for the same period
in 2019. |
Portfolio Performance
Same Property NOI
|
• |
Fourth quarter same property Net Operating Income (“NOI”),
excluding termination fees, declined by 10.5% compared to the same
period in 2019. |
|
|
|
• |
The decline in same property NOI in the fourth quarter of 2020 was
driven primarily by a higher rate of uncollectible lease income of
$15.3 million in the same property pool due to the COVID-19
pandemic. |
Leased Occupancy
|
• |
As of December 31, 2020, Regency’s wholly-owned portfolio plus its
pro-rata share of co-investment partnerships, was 92.3%
leased. |
|
• |
As of December 31, 2020, Regency’s same property portfolio was
92.9% leased, a decline of 60 basis points sequentially. |
|
|
|
• |
Within the same property portfolio, anchor percent leased, which
includes spaces greater than or equal to 10,000 square feet, was
95.4%, a decline of 60 basis points sequentially. |
|
|
|
• |
Same property shop percent leased, which includes spaces less than
10,000 square feet, was 88.5%, a decline of 70 basis points
sequentially. |
Leasing Activity
|
• |
For the three months ended December 31, 2020, Regency executed 1.7
million square feet of comparable new and renewal leases at blended
rent spreads of +0.6%. |
|
• |
For the trailing twelve months, the Company executed 5.9 million
square feet of comparable new and renewal leases at blended rents
spreads of +2.2%. |
COVID-19 Update
|
• |
As of January 31, 2021, approximately 97% of the Company’s tenants
were open based on pro-rata Annual Base Rent (“ABR”), although
governmental restrictions on specific tenant businesses can change
daily. |
|
• |
As of January 31, 2021, the Company had executed rent deferral
agreements on over 1,600 leases, with total deferred rent of $40.8
million. |
|
• |
As of February 8, 2021, the Company collected 92% of fourth quarter
pro-rata base rent, in addition to 1% subject to executed deferral
agreements. |
|
• |
The Company also continues to make progress on second and third
quarter receivables. As of February 8, 2021, the Company collected
79% and 89% of second and third quarter pro-rata base rent,
respectively. The Company has also signed deferral agreements for
12% and 4%, respectively, of second and third quarter pro-rata base
rent. |
|
• |
A “Business Update” presentation is posted on our website at
investors.regencycenters.com, and includes additional information
regarding COVID-19 impacts. |
Portfolio Enhancement and Capital
Allocation
Developments and Redevelopments
|
• |
During 2020, the Company started over $124 million of development
and redevelopment projects. |
|
• |
As of December 31, 2020, the Company had 14 properties in
development or redevelopment with estimated net project costs of
$319.3 million and an estimated $170 million of remaining costs to
complete. |
|
• |
In-process developments and redevelopments were 88% leased as of
December 31, 2020. |
|
• |
In the fourth quarter, Regency completed one development and two
redevelopment projects with combined pro-rata costs of $29.8
million. |
|
• |
In light of the COVID-19 pandemic, the Company continues to
evaluate the impacts to scope, timing, tenancy, and return on
investment for all in-process and pipeline projects to determine
the most appropriate strategy for each project. |
|
|
|
• |
As previously disclosed, as a result of this process and the
decision not to pursue certain projects or components of projects,
the Company wrote off certain previously-capitalized development
pursuit costs of $7.9 million in the fourth quarter of 2020. |
Property Transactions
|
• |
During the fourth quarter, the Company sold five shopping centers
for a combined gross sales price of $77.8 million at Regency’s
share, and non-income producing land for a combined gross sales
price of $8.1 million at Regency’s share. |
|
• |
During the full year 2020, Regency sold eight shopping centers and
income producing outparcels for a combined gross sales price of
$190.8 million, at a weighted average cap rate of 5.7%. The
Company’s full-year non-income producing land sales totals $18.6
million, at Regency’s share. |
|
• |
Subsequent to year-end, closed on the sale of one shopping center
for a gross sales price of $9.0 million, and one non-income
producing asset for $29.4 million, both at Regency’s share. |
Share Repurchase Program
|
• |
On February 3, 2021, Regency’s Board of Directors authorized the
repurchase by Regency of up to $250 million of its common stock.
This authorization is scheduled to expire on February 3, 2023,
unless earlier terminated by the Board. The timing of share
repurchases is dependent upon market conditions and other
factors. |
Balance Sheet
|
• |
As of December 31, 2020, Regency had full capacity under its $1.2
billion revolving credit facility. |
|
• |
As of December 31, 2020, Regency’s pro-rata net debt-to-operating
EBITDAre ratio was 6.0x. |
|
• |
On January 15, 2021, as previously disclosed, the Company repaid
its $265 million term loan due January 2022 (the “Term Loan”) using
cash available, leaving no unsecured debt maturities until
2024. |
Revolving Credit Facility
|
• |
Regency announced today its amended and restated unsecured
revolving credit facility (the “Facility”), which closed on
February 9, 2021. |
|
• |
The amendment and restatement maintains the size of the Facility at
$1.25 billion and extends the maturity date to March 23, 2025, with
options for Regency to extend the maturity for two additional
six-month periods. |
|
• |
Borrowings will bear interest at an annual rate of LIBOR plus 87.5
basis points, subject to the continuation of the Company’s current
credit ratings, in line with the previous facility. An annual
facility fee of 15 basis points, subject to the Company’s credit
ratings, applies to the entire $1.25 billion Facility. |
|
• |
To further Regency’s environmental, social, and governance (“ESG”)
sustainability initiatives, the Company’s lenders have agreed that
the margin for purposes of determining the interest rate on the
Facility may be reduced by an additional 0.01% if, as of any fiscal
year, a sustainability metric related to reduction in greenhouse
gas (“GHG”) emissions is achieved. |
|
• |
The Facility is held by 13 U.S. and International banks. The
syndication is led by Wells Fargo Securities, LLC and PNC Capital
Markets LLC as Joint Bookrunners and Lead Arrangers. Wells Fargo
Bank, National Association acts as Administrative Agent for the
Facility and PNC Bank, National Association acts as Syndication
Agent. U.S. Bank National Association, Truist Securities, Inc. and
Regions Capital Markets, a division of Regions Bank, act as Joint
Lead Arrangers and Documentation Agents. Bank of America, N.A.,
JPMorgan Chase Bank, N.A., and Mizuho Bank, Ltd. are
Co-Documentation Agents. BMO Harris Bank, N.A., Bank of New York
Mellon, Bank of Nova Scotia and TD Bank, N.A. act as Senior
Managing Agents. Comerica Bank also participates in the
Facility. |
Dividend
|
• |
On February 10, 2021, Regency’s Board of Directors declared a
quarterly cash dividend on the Company’s common stock of $0.595 per
share. The dividend is payable on April 6, 2021, to shareholders of
record as of March 15, 2021. |
2021 Guidance
Regency Centers offered initial 2021 guidance
concurrently with the fourth quarter 2020 earnings release, as
summarized below. Please refer to the fourth quarter 2020
Supplemental package for a complete list of guidance
assumptions.
“While we are gratified to return to more
customary guidance practices as transparency remains a key tenet of
our values, we believe a wide range of potential outcomes is
prudent given the uncertainty that remains in our operating
environment,” said Mike Mas, EVP and Chief Financial Officer. “The
potential outcomes can best be described as three independent
scenarios, which each could result in different and distinct
impacts to our Net Operating Income.”
|
• |
The lower end of our guidance range is based on a “reverse course”
scenario, which assumes more shutdowns and increased restrictions,
leading to a decline in rent collection rates. |
|
• |
The midpoint area of our range is based on a “status quo” scenario,
which assumes a continuation of our fourth quarter 2020
same-property NOI and collection rates. |
|
• |
The higher end of our range is based on a “continued improvement”
scenario, which assumes further lifting of restrictions and added
federal stimulus, leading to increases in collection rates. |
Please refer to the Company’s “Business Update”
presentation for additional guidance details, including a
reconciliation of Nareit FFO per diluted share from 2020 to 2021,
posted on the website at investors.regencycenters.com.
Full Year 2021 Guidance |
All figures pro-rata and in thousands, except per share data |
|
|
Net Income Attributable to Common Stockholders per diluted
share |
$0.55 - $0.73 |
NAREIT Funds From Operations (“NAREIT FFO”) per diluted share |
$2.96 - $3.14 |
Core Operating Earnings per diluted share* |
$2.79 - $2.97 |
Same Property Net Operating Income (“SPNOI”) Growth (ex.
termination fees) |
-1.0% to +2.5% |
Net G&A expense |
$82,500 - $86,500 |
Net interest expense |
$166,000 - $167,000 |
Recurring third party fees & commissions |
$23,000 - $24,000 |
Development and Redevelopment Spend |
+/- $150,000 |
Acquisitions |
+/- $0 |
Cap rate (weighted average) |
0.0% |
Dispositions |
+/- $150,000 |
Cap rate (weighted average) |
5.5% - 6.0%(1) |
* Core Operating Earnings excludes certain non-cash items,
including straight-line rents, above/below market rent
amortization, and amortization of mark-to-market debt, as well as
debt extinguishment charges. |
(1) Average cap rate calculation excludes the sale of the
non-income producing asset for $29.4 million in the first
quarter |
|
Conference Call Information
To discuss Regency’s fourth quarter results and
provide further business updates related to COVID-19, management
will host a conference call on Friday, February 12, 2021, at 12:00
p.m. ET. Dial-in and webcast information is listed below.
Fourth Quarter 2020 Earnings Conference Call |
Date: |
Friday, February 12, 2021 |
Time: |
12:00 p.m. ET |
Dial#: |
877-407-0789 or 201-689-8562 |
Webcast: |
investors.regencycenters.com |
Replay
Webcast Archive: Investor Relations page under
Events & Webcasts
Non-GAAP Disclosure
We believe these non-GAAP measures provide
useful information to our Board of Directors, management and
investors regarding certain trends relating to our financial
condition and results of operations. Our management uses these
non-GAAP measures to compare our performance to that of prior
periods for trend analyses, purposes of determining management
incentive compensation and budgeting, forecasting and planning
purposes.
We do not consider non-GAAP measures an
alternative to financial measures determined in accordance with
GAAP. The principal limitation of these non-GAAP financial measures
is they may exclude significant expense and income items that are
required by GAAP to be recognized in our consolidated financial
statements. In addition, they reflect the exercise of management’s
judgment about which expense and income items are excluded or
included in determining these non-GAAP financial measures. In order
to compensate for these limitations, reconciliations of the
non-GAAP financial measures we use to their most directly
comparable GAAP measures are provided. Non-GAAP financial measures
should not be relied upon in evaluating the financial condition,
results of operations or future prospects of the Company.
Nareit FFO is a commonly used measure of REIT
performance, which the National Association of Real Estate
Investment Trusts (“Nareit”) defines as net income, computed in
accordance with GAAP, excluding gains on sale and impairments of
real estate, net of tax, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. Regency computes Nareit FFO for all periods presented in
accordance with Nareit's definition. Since Nareit FFO excludes
depreciation and amortization and gains on sales and impairments of
real estate, it provides a performance measure that, when compared
year over year, reflects the impact on operations from trends in
percent leased, rental rates, operating costs, acquisition and
development activities, and financing costs. This provides a
perspective of the Company’s financial performance not immediately
apparent from net income determined in accordance with GAAP. Thus,
Nareit FFO is a supplemental non-GAAP financial measure of the
Company's operating performance, which does not represent cash
generated from operating activities in accordance with GAAP; and,
therefore, should not be considered a substitute measure of cash
flows from operations. The Company provides a reconciliation of Net
Income Attributable to Common Stockholders to Nareit FFO.
Core Operating Earnings is an additional
performance measure that excludes from Nareit FFO: (i) transaction
related income or expenses; (ii) gains or losses from the early
extinguishment of debt; (iii) certain non-cash components of
earnings derived from above and below market rent amortization,
straight-line rents, and amortization of mark-to-market of debt
adjustments; and (iv) other amounts as they occur. The Company
provides a reconciliation of Net Income to Nareit FFO to Core
Operating Earnings.
|
Reconciliation of Net Income Attributable to Common
Stockholders to Nareit FFO and Core Operating Earnings - Actual (in
thousands) |
|
|
|
|
|
|
For the Periods Ended December 31, 2020 and
2019 |
Three Months Ended |
|
Year to Date |
|
2020 |
2019 |
|
2020 |
2019 |
|
|
|
|
|
|
Reconciliation of Net Income to Nareit FFO: |
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Stockholders |
$ |
38,487 |
|
|
40,291 |
|
|
$ |
44,889 |
|
|
239,430 |
|
Adjustments to reconcile to Nareit Funds From Operations (1): |
|
|
|
|
|
Depreciation and amortization (excluding FF&E) |
|
94,289 |
|
|
99,270 |
|
|
|
375,865 |
|
|
402,888 |
|
Goodwill impairment |
|
- |
|
|
- |
|
|
|
132,128 |
|
|
- |
|
Gain on sale of real estate |
|
(21,228 |
) |
|
(13,333 |
) |
|
|
(69,879 |
) |
|
(53,664 |
) |
Provision for impairment of real estate |
|
17,764 |
|
|
42,076 |
|
|
|
18,778 |
|
|
65,074 |
|
Exchangeable operating partnership units |
|
174 |
|
|
178 |
|
|
|
203 |
|
|
634 |
|
|
|
|
|
|
|
Nareit Funds From Operations |
$ |
129,486 |
|
|
168,482 |
|
|
$ |
501,984 |
|
|
654,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Nareit FFO to Core Operating
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
Nareit Funds From Operations |
$ |
129,486 |
|
|
168,482 |
|
|
$ |
501,984 |
|
|
654,362 |
|
Adjustments to reconcile to Core Operating Earnings (1): |
|
|
|
|
|
Early extinguishment of debt |
|
2,685 |
|
|
- |
|
|
|
22,043 |
|
|
11,982 |
|
Interest on bonds for period from notice to redemption |
|
- |
|
|
- |
|
|
|
- |
|
|
367 |
|
Straight line rent |
|
(3,778 |
) |
|
(3,082 |
) |
|
|
(15,605 |
) |
|
(15,526 |
) |
Uncollectible straight line rent |
|
7,681 |
|
|
1,698 |
|
|
|
39,255 |
|
|
7,002 |
|
Above/below market rent amortization, net |
|
(10,860 |
) |
|
(13,833 |
) |
|
|
(41,293 |
) |
|
(44,666 |
) |
Debt premium/discount amortization |
|
(117 |
) |
|
(395 |
) |
|
|
(1,233 |
) |
|
(1,776 |
) |
|
|
|
|
|
|
Core Operating Earnings |
$ |
125,097 |
|
|
152,870 |
|
|
$ |
505,151 |
|
|
611,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares For Diluted Earnings per Share |
|
169,980 |
|
|
167,892 |
|
|
|
169,460 |
|
|
167,771 |
|
|
|
|
|
|
|
Weighted Average Shares For Diluted FFO and Core Operating Earnings
per Share |
|
170,745 |
|
|
168,638 |
|
|
|
170,225 |
|
|
168,235 |
|
(1) |
Includes Regency's consolidated entities and its pro-rata share of
unconsolidated co-investment partnerships, net of pro-rata share
attributable to noncontrolling interests. |
|
|
Same property NOI is a key non-GAAP measure used
by management in evaluating the operating performance of Regency’s
properties. The Company provides a reconciliation of Net Income
Attributable to Common Stockholders to pro-rata same property
NOI.
|
|
|
|
|
|
Reconciliation of Net Income Attributable to Common
Stockholders to Pro-Rata Same Property NOI - Actual (in
thousands) |
|
|
|
|
|
|
For the Periods Ended December 31, 2020 and
2019 |
Three Months Ended |
|
Year to Date |
|
2020 |
2019 |
|
2020 |
2019 |
|
|
|
|
|
|
Net Income Attributable to Common Stockholders |
$ |
38,487 |
|
|
40,291 |
|
|
$ |
44,889 |
|
|
239,430 |
|
Less: |
|
|
|
|
|
Management, transaction, and other fees |
|
(7,417 |
) |
|
(7,868 |
) |
|
|
(26,501 |
) |
|
(29,636 |
) |
Other(1) |
|
(8,544 |
) |
|
(16,811 |
) |
|
|
(25,912 |
) |
|
(58,904 |
) |
Plus: |
|
|
|
|
|
Depreciation and amortization |
|
86,739 |
|
|
91,644 |
|
|
|
345,900 |
|
|
374,283 |
|
General and administrative |
|
20,512 |
|
|
18,262 |
|
|
|
75,001 |
|
|
74,984 |
|
Other operating expense |
|
7,617 |
|
|
3,328 |
|
|
|
12,642 |
|
|
7,814 |
|
Other expense |
|
35,474 |
|
|
71,860 |
|
|
|
256,407 |
|
|
187,610 |
|
Equity in income of investments in real estate excluded from NOI
(2) |
|
12,838 |
|
|
8,109 |
|
|
|
59,726 |
|
|
39,807 |
|
Net income attributable to noncontrolling interests |
|
729 |
|
|
840 |
|
|
|
2,428 |
|
|
3,828 |
|
NOI |
|
186,435 |
|
|
209,655 |
|
|
|
744,580 |
|
|
839,216 |
|
|
|
|
|
|
|
Less non-same property NOI (3) |
|
(6,760 |
) |
|
(10,245 |
) |
|
|
(31,490 |
) |
|
(38,150 |
) |
|
|
|
|
|
|
Same Property NOI |
$ |
179,675 |
|
|
199,410 |
|
|
$ |
713,090 |
|
|
801,066 |
|
|
|
|
|
|
|
Same Property NOI without Termination Fees |
$ |
177,437 |
|
|
198,339 |
|
|
$ |
705,420 |
|
|
798,148 |
|
|
|
|
|
|
|
Same Property NOI without Termination Fees or
Redevelopments |
$ |
160,973 |
|
|
180,163 |
|
|
$ |
640,152 |
|
|
722,090 |
|
(1) |
Includes straight-line rental income and expense, net of reserves,
above and below market rent amortization, other fees, and
noncontrolling interests. |
(2) |
Includes non-NOI expenses incurred at our unconsolidated real
estate partnerships, such as, but not limited to, straight-line
rental income, above and below market rent amortization,
depreciation and amortization, interest expense, and real estate
gains and impairments. |
(3) |
Includes revenues and expenses attributable to Non-Same Property,
Projects in Development, corporate activities, and noncontrolling
interests. |
|
|
Reported results are preliminary and not final
until the filing of the Company’s Form 10-K with the SEC and,
therefore, remain subject to adjustment.
The Company has published forward-looking
statements and additional financial information in its fourth
quarter 2020 supplemental information package that may help
investors estimate earnings for 2021. A copy of the Company’s
fourth quarter 2020 supplemental information will be available on
the Company's website at https://investors.regencycenters.com/ or
by written request to: Investor Relations, Regency Centers
Corporation, One Independent Drive, Suite 114, Jacksonville,
Florida, 32202. The supplemental information package contains more
detailed financial and property results including financial
statements, an outstanding debt summary, acquisition and
development activity, investments in partnerships, information
pertaining to securities issued other than common stock, property
details, a significant tenant rent report and a lease expiration
table in addition to earnings and valuation guidance assumptions.
The information provided in the supplemental package is unaudited
and includes non-GAAP measures, and there can be no assurance that
the information will not vary from the final information in the
Company’s Form 10-K for the year-ended December 31, 2020. Regency
may, but assumes no obligation to, update information in the
supplemental package from time to time.
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. Our portfolio includes
thriving properties merchandised with highly productive grocers,
restaurants, service providers, and best-in-class retailers that
connect to their neighborhoods, communities, and customers.
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, or
financial or operational performance or results such as our 2021
Guidance, 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 may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties.
Our operations are subject to a number of risks
and uncertainties including, but not limited to, those risk factors
described in our SEC filings. When considering an investment in our
securities, you should carefully read and consider these risks,
together with all other information in our Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and our other filings and
submissions to the SEC. If any of the events described in the risk
factors actually occur, our business, financial condition or
operating results, as well as the market price of our securities,
could be materially adversely affected. 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. These risks and events include, without limitation:
Risk Factors
Risk Factors Related to the COVID-19
Pandemic
Pandemics or other health crises, such as the
COVID-19 pandemic, may adversely affect our tenants’ financial
condition, the profitability of our properties, and our access to
the capital markets and could have a material adverse effect on our
business, results of operations, cash flows and financial
condition.
Risk Factors Related to Operating Retail-Based
Shopping Centers
Economic and market conditions may adversely
affect the retail industry and consequently reduce our revenues and
cash flow, and increase our operating expenses. Shifts in retail
trends, sales, and delivery methods between brick and mortar
stores, e-commerce, home delivery, and curbside pick-up may
adversely impact our revenues and cash flows. Changing economic and
retail market conditions in geographic areas where our properties
are concentrated may reduce our revenues and cash flow. Our success
depends on the continued presence and success of our “anchor”
tenants. A significant percentage of our revenues are derived from
smaller “shop space” tenants and our net income may be adversely
impacted if our smaller shop tenants are not successful. We may be
unable to collect balances due from tenants in bankruptcy. Many of
our costs and expenses associated with operating our properties may
remain constant or increase, even if our lease income decreases.
Compliance with the Americans with the Disabilities Act and fire,
safety and other regulations may have a negative effect on us.
Risk Factors Related to Real Estate
Investments
Our real estate assets may decline in value and
be subject to impairment losses which may reduce our net income. We
face risks associated with development, redevelopment and expansion
of properties.
We face risks associated with the development of
mixed-use commercial properties. We face risks associated with the
acquisition of properties. We may be unable to sell properties when
desired because of market conditions. Changes in tax laws could
impact our acquisition or disposition of real estate.
Risk Factors Related to the Environment
Affecting Our Properties
Climate change may adversely impact our
properties directly, and may lead to additional compliance
obligations and costs as well as additional taxes and fees.
Geographic concentration of our properties makes our business more
vulnerable to natural disasters, severe weather conditions and
climate change. Costs of environmental remediation may impact our
financial performance and reduce our cash flow.
Risk Factors Related to Corporate Matters
An uninsured loss or a loss that exceeds the
insurance coverage on our properties may subject us to loss of
capital and revenue on those properties. Failure to attract and
retain key personnel may adversely affect our business and
operations. The unauthorized access, use, theft or destruction of
tenant or employee personal, financial or other data or of
Regency’s proprietary or confidential information stored in our
information systems or by third parties on our behalf could impact
our reputation and brand and expose us to potential liability and
loss of revenues.
Risk Factors Related to Our Partnerships and
Joint Ventures
We do not have voting control over all of the
properties owned in our co-investment partnerships and joint
ventures, so we are unable to ensure that our objectives will be
pursued. The termination of our partnerships may adversely affect
our cash flow, operating results, and our ability to make
distributions to stock and unit holders.
Risk Factors Related to Funding Strategies and
Capital Structure
Our ability to sell properties and fund
acquisitions and developments may be adversely impacted by higher
market capitalization rates and lower NOI at our properties which
may dilute earnings. We depend on external sources of capital,
which may not be available in the future on favorable terms or at
all. Our debt financing may adversely affect our business and
financial condition. Covenants in our debt agreements may restrict
our operating activities and adversely affect our financial
condition. Increases in interest rates would cause our borrowing
costs to rise and negatively impact our results of operations.
Hedging activity may expose us to risks, including the risks that a
counterparty will not perform and that the hedge will not yield the
economic benefits we anticipate, which may adversely affect us. The
interest rates on our Unsecured Credit facilities as well as on our
variable rate mortgages and interest rate swaps might change based
on changes to the method in which LIBOR or its replacement rate is
determined.
Risk Factors Related to the Market Price for Our
Securities
Changes in economic and market conditions may
adversely affect the market price of our securities.
There is no assurance that we will continue to
pay dividends at historical rates.
Risk Factors Relating to the Company’s
Qualification as a REIT
If the Parent Company fails to qualify as a REIT
for federal income tax purposes, it would be subject to federal
income tax at regular corporate rates. Dividends paid by REITs
generally do not qualify for reduced tax rates. Certain foreign
stockholders may be subject to U.S. federal income tax on gain
recognized on a disposition of our common stock if we do not
qualify as a “domestically controlled” REIT.
Legislative or other actions affecting REITs may
have a negative effect on us. Complying with REIT requirements may
limit our ability to hedge effectively and may cause us to incur
tax liabilities.
Risks Related to the Company’s Common Stock
Restrictions on the ownership of the Parent
Company’s capital stock to preserve its REIT status may delay or
prevent a change in control. The issuance of the Parent Company's
capital stock may delay or prevent a change in control. Ownership
in the Parent Company may be diluted in the future.
Christy McElroy904 598
7616ChristyMcElroy@regencycenters.com
Regency Centers (NASDAQ:REG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Regency Centers (NASDAQ:REG)
Historical Stock Chart
From Apr 2023 to Apr 2024