JACKSONVILLE, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Regency Centers Corporation ("Regency Centers”, "Regency” or the "Company”) (Nasdaq: REG) today reported financial and operating results for the period ended December 31, 2024 and provided initial 2025 earnings guidance. For the three months ended December 31, 2024 and 2023, Net Income Attributable to Common Shareholders was $0.46 per diluted share and $0.47 per diluted share, respectively. For the twelve months ended December 31, 2024 and 2023, Net Income Attributable to Common Shareholders was $2.11 per diluted share and $2.04 per diluted share, respectively.
Fourth Quarter and Full Year 2024 Highlights
- Reported Nareit FFO of $1.09 per diluted share for the fourth quarter, and $4.30 per diluted share for the full year
- Reported Core Operating Earnings of $1.04 per diluted share for the fourth quarter, and $4.13 per diluted share for the full year
- Generated Core Operating Earnings per share growth exceeding 5% for the full year, excluding the collection of receivables reserved during 2020 and 2021
- Increased Same Property NOI for the fourth quarter by 4.0% year-over-year, and for the full year by 3.6%, excluding lease termination fees and the collection of receivables reserved during 2020 and 2021
- Increased Same Property percent leased by 60 basis points sequentially and 100 basis points year-over-year to a new record high of 96.7%
- Increased Same Property shop percent leased by 40 basis points sequentially and 60 basis points year-over-year to a new record high of 94.1%
- Executed 8.1 million square feet of comparable new and renewal leases during the full year at blended rent spreads of +9.5% on a cash basis and +19.0% on a straight-lined basis
- Started over $35 million of new development and redevelopment projects in the fourth quarter, bringing year-to-date total project starts to $258 million
- As of December 31, 2024, Regency's in-process development and redevelopment projects had estimated net project costs of $497 million
- Acquired University Commons - Austin in the fourth quarter, an H-E-B anchored shopping center in the Austin, TX MSA
- Raised $100 million of common stock on a forward basis through the Company's at-the-market ("ATM") program at an average price of $74.66 per share
- Pro-rata net debt and preferred stock to operating EBITDAre at December 31, 2024 was 5.2x
- Subsequent to quarter end, on February 4, 2025, Regency's Board of Directors (the "Board") declared a quarterly cash dividend on the Company's common stock of $0.705 per share
Financial Results
Net Income Attributable to Common Shareholders
- For the three months ended December 31, 2024, Net Income Attributable to Common Shareholders was $83.1 million, or $0.46 per diluted share, compared to Net Income Attributable to Common Shareholders of $86.4 million, or $0.47 per diluted share, for the same period in 2023.
- Net Income in the fourth quarter of 2024 includes an impairment charge of $14.3 million, or $0.08 per diluted share.
- For the twelve months ended December 31, 2024 and 2023, Net Income Attributable to Common Shareholders was $386.7 million, or $2.11 per diluted share, compared to Net Income Attributable to Common Shareholders of $359.5 million, or $2.04 per diluted share, for the same period in 2023.
- For the three months ended December 31, 2024, Nareit FFO was $199.5 million, or $1.09 per diluted share, compared to $190.0 million, or $1.02 per diluted share, for the same period in 2023.
- For the twelve months ended December 31, 2024 and 2023, Nareit FFO was $790.9 million, or $4.30 per diluted share, compared to $736.1 million, or $4.15 per diluted share, for the same period in 2023.
- For the three months ended December 31, 2024, Core Operating Earnings was $190.6 million, or $1.04 per diluted share, compared to $184.4 million, or $0.99 per diluted share, for the same period in 2023.
- For the twelve months ended December 31, 2024 and 2023, Core Operating Earnings was $760.7 million, or $4.13 per diluted share, compared to $700.9 million, or $3.95 per diluted share, for the same period in 2023.
Same Property NOI
- Fourth quarter 2024 Same Property Net Operating Income ("NOI”), excluding lease termination fees and the collection of receivables reserved during 2020 and 2021, increased by 4.0% compared to the same period in 2023.
- Same Property base rents contributed 3.3% to Same Property NOI growth in the fourth quarter of 2024.
- Full year 2024 Same Property NOI, excluding lease termination fees and the collection of receivables reserved during 2020 and 2021, increased by 3.6% compared to the same period in 2023.
- Same Property base rents contributed 2.9% to Same Property NOI growth in the full year 2024.
- As of December 31, 2024, Regency's Same Property portfolio was 96.7% leased, an increase of 60 basis points sequentially, and an increase of 100 basis points compared to December 31, 2023.
- Same Property anchor percent leased, which includes spaces greater than or equal to 10,000 square feet, was 98.3%, an increase of 130 basis points compared to December 31, 2023.
- Same Property shop percent leased, which includes spaces less than 10,000 square feet, was 94.1%, an increase of 60 basis points compared to December 31, 2023.
- As of December 31, 2024, Regency's Same Property portfolio was 93.7% commenced, an increase of 100 basis points sequentially and an increase of 80 basis points compared to December 31, 2023.
- During the three months ended December 31, 2024, Regency executed approximately 2.3 million square feet of comparable new and renewal leases at a blended cash rent spread of +10.8% and a blended straight-lined rent spread of +20.2%.
- During the twelve months ended December 31, 2024, the Company executed approximately 8.1 million square feet of comparable new and renewal leases at a blended cash rent spread of +9.5% and a blended straight-lined rent spread of +19.0%.
Developments and Redevelopments
- During the twelve months ended December 31, 2024, the Company started development and redevelopment projects with estimated net project costs of approximately $258 million, at the Company's share, including more than $35 million of starts during the fourth quarter.
- As of December 31, 2024, Regency's in-process development and redevelopment projects had estimated net project costs of $497 million at the Company's share, 39% of which has been incurred to date.
- During the full year 2024, the Company completed acquisitions for a combined total of approximately $92 million and dispositions for a combined total of approximately $112 million, each at Regency's share
- During the fourth quarter, the Company, with its institutional joint venture partner, acquired University Commons - Austin in Round Rock, Texas, a suburb of Austin, for approximately $14 million, at Regency's share.
- During the fourth quarter, the Company disposed of two small office buildings in Greenwich, Connecticut, for approximately $5 million, at Regency's share.
- Subsequent to year end, Regency acquired its partner's interest in Putnam Plaza in Carmel, NY for approximately $10 million, effective January 1, 2025, and now owns 100% of the asset.
- During the fourth quarter, Regency entered into forward sale agreements to sell $100 million of common stock through the Company's ATM program, at an average price of $74.66 per share. Under the terms of its forward sale agreements, the Company has until December of 2025 to settle the transactions. Regency intends to use the proceeds to fund future investments and for general corporate purposes.
- As of December 31, 2024, Regency had approximately $1.4 billion of capacity under its revolving credit facility.
- As of December 31, 2024, Regency's pro-rata net debt and preferred stock to operating EBITDAre was 5.2x.
- On February 4, 2025, Regency's Board declared a quarterly cash dividend on the Company's common stock of $0.705 per share. The dividend is payable on April 2, 2025, to shareholders of record as of March 12, 2025.
- On February 4, 2025, Regency's Board declared a quarterly cash dividend on the Company's Series A preferred stock of $0.390625 per share. The dividend is payable on April 30, 2025, to shareholders of record as of April 15, 2025.
- On February 4, 2025, Regency's Board declared a quarterly cash dividend on the Company's Series B preferred stock of $0.367200 per share. The dividend is payable on April 30, 2025, to shareholders of record as of April 15, 2025.
Regency Centers is hereby providing initial 2025 guidance, as summarized in the table below. Please refer to the Company's fourth quarter 2024 "Earnings Presentation" and "Quarterly Supplemental" for additional detail. All materials are posted on the Company's website at investors.regencycenters.com.
| Full Year 2025 Guidance (in thousands, except per share data) | 2024 Actual | 2025 Guidance | |
| Net Income Attributable to Common Shareholders per diluted share | $2.11 | $2.25 - $2.31 | |
| Nareit Funds From Operations ("Nareit FFO”) per diluted share | $4.30 | $4.52 - $4.58 | |
| Core Operating Earnings per diluted share(1) | $4.13 | $4.30 - $4.36 | |
| Same property NOI growth without termination fees(2) | 3.6% | +3.2% to +4.0% | |
| Non-cash revenues(3) | $45,047 | +/-$45,000 | |
| G&A expense, net(4) | $96,519 | $93,000-$96,000 | |
| Interest expense, net and Preferred stock dividends(5) | $214,815 | $231,000-$234,000 | |
| Management, transaction and other fees | $26,911 | +/-$27,000 | |
| Development and Redevelopment spend | $228,847 | +/-$250,000 | |
| Acquisitions | $91,905 | +/-$135,000 | |
| Cap rate (weighted average) | 6.4% | +/- 5.5% | |
| Dispositions | $111,850 | +/-$75,000 | |
| Cap rate (weighted average) | 5.4% | +/- 6.0% | |
| Share/unit issuances | $0 | $100,000 | |
| Share/unit repurchases | $200,000 | $0 | |
| Merger-related transition expense | $7,718 | $0 | |
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Note: Figures above represent 100% of Regency's consolidated entities and its pro-rata share of unconsolidated real estate partnerships, with the exception of items that are net of noncontrolling interests including per share data, "Development and Redevelopment spend", "Acquisitions", and "Dispositions". (1) Core Operating Earnings excludes fromNareitFFO: (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 straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization; and (iv) other amounts as they occur. (2) 2024 Same property NOI growth excludes $4.4M of collections of 2020/2021 reserves in 2023, with growth of 3.1% when not excluded. (3) Includes above and below market rent amortization and straight-line rents, and excludes debt and derivative mark to market amortization. (4) Represents "General & administrative, net" before gains or losses on deferred compensation plan, as reported on supplemental pages 5 and 7 and calculated on a pro rata basis. (5) Includes debt and derivative mark to market amortization, and is net of interest income. | |||
Conference Call Information
To discuss Regency's fourth quarter results and provide further business updates, management will host a conference call on Friday, February 7th at 11:00 a.m. ET. Dial-in and webcast information is below.
Fourth Quarter 2024 Earnings Conference Call
| Date: | Friday, February 7, 2025 |
| Time: | 11:00 a.m. ET |
| Dial#: | 877-407-0789 or 201-689-8562 |
| Webcast: | Fourth Quarter 2024 Webcast Link |
Replay:
Webcast Archive - Investor Relations page under Events & WebcastsAbout Regency Centers Corporation (Nasdaq: REG)
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. 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.
Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO, Core Operating Earnings, and Adjusted Funds from Operations - Actual (in thousands, except per share amounts)
| For the Periods Ended December 31, 2024 and 2023 | Three Months Ended | Year Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO: | ||||||||||||||||
| Net Income Attributable to Common Shareholders | $ | 83,066 | 86,361 | $ | 386,738 | 359,500 | ||||||||||
| Adjustments to reconcile to Nareit Funds From Operations(1): | ||||||||||||||||
| Depreciation and amortization (excluding FF&E) | 102,816 | 105,849 | 422,581 | 378,400 | ||||||||||||
| Gain on sale of real estate, net of tax | (1,216 | ) | (2,690 | ) | (35,069 | ) | (3,822 | ) | ||||||||
| Provision for impairment of real estate | 14,304 | - | 14,304 | - | ||||||||||||
| Exchangeable operating partnership units | 502 | 518 | 2,338 | 2,008 | ||||||||||||
| Nareit Funds From Operations | $ | 199,472 | 190,038 | $ | 790,892 | 736,086 | ||||||||||
| Nareit FFO per share (diluted) | $ | 1.09 | 1.02 | $ | 4.30 | 4.15 | ||||||||||
| Weighted average shares (diluted) | 182,900 | 185,948 | 184,139 | 177,324 | ||||||||||||
| Reconciliation of Nareit FFO to Core Operating Earnings: | ||||||||||||||||
| Nareit Funds From Operations | $ | 199,472 | 190,038 | $ | 790,892 | 736,086 | ||||||||||
| Adjustments to reconcile to Core Operating Earnings(1): | ||||||||||||||||
| Not Comparable Items | ||||||||||||||||
| Merger transition costs | 649 | 3,109 | 7,718 | 4,620 | ||||||||||||
| Loss (gain) on early extinguishment of debt | - | (99 | ) | 180 | (99 | ) | ||||||||||
| Certain Non-Cash Items | ||||||||||||||||
| Straight-line rent | (6,073 | ) | (3,745 | ) | (22,980 | ) | (11,060 | ) | ||||||||
| Uncollectible straight-line rent | 547 | 1,124 | 2,446 | (1,174 | ) | |||||||||||
| Above/below market rent amortization, net | (5,521 | ) | (7,731 | ) | (23,431 | ) | (29,869 | ) | ||||||||
| Debt and derivative mark-to-market amortization | 1,504 | 1,685 | 5,837 | 2,352 | ||||||||||||
| Core Operating Earnings | $ | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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