Core Viewpoint - Regency Centers (REG) shares have performed strongly over the past year, with a 20% increase, although this growth was primarily concentrated in the second half of 2024, while shares remained flat for the preceding 8-9 months [1] Group 1 - The performance of Regency Centers has been characterized by a significant increase in share value, particularly in the latter half of 2024 [1] - Despite the overall positive performance, the shares have shown little movement in the months leading up to the second half of 2024 [1] - The article reflects a contrarian investment approach, emphasizing macro views and stock-specific turnaround stories to achieve favorable risk/reward profiles [1]

Core Points - Regency Centers Corporation will present at the Nareit REITweek Investor Conference on June 3, 2025, at 3:15 pm ET [1] - The presentation will be available for replay on the Company's Investor Relations page [1] Company Overview - Regency Centers is a leading national owner, operator, and developer of shopping centers in suburban areas with strong demographics [4] - The portfolio includes properties with productive grocers, restaurants, service providers, and top retailers that engage with their communities [4] - The Company operates as a fully integrated real estate company and is a qualified real estate investment trust (REIT), self-administered, self-managed, and a member of the S&P 500 Index [4]

Core Viewpoint - Regency Centers Corp. is positioned for growth due to its premium portfolio of grocery-anchored shopping centers, strategic acquisitions, and a strong development pipeline, although challenges from e-commerce, high interest rates, and a concentrated portfolio exist [1]. Financial Performance - In Q1 2025, Regency Centers reported NAREIT funds from operations (FFO) per share of $1.15, exceeding the Zacks Consensus Estimate of $1.14, marking a 6.5% increase year-over-year [2]. - The company's shares have increased by 20.4% over the past year, outperforming the industry growth of 6.2%, with a favorable outlook reflected in the Zacks Consensus Estimate for 2025 FFO per share at $4.54 [3]. Portfolio Quality - Regency Centers boasts a high-quality portfolio with over 80% of its centers being grocery-anchored, which attracts consistent consumer traffic [4]. - The shopping centers are located in affluent suburban areas, enhancing the ability to attract top grocers and retailers, with anchor tenants making up 42.3% of the portfolio as of March 31, 2025 [5]. Growth Initiatives - The company is actively enhancing its portfolio through acquisitions and developments, including the acquisition of Brentwood Place Shopping Center for approximately $119 million [6]. - As of March 31, 2025, Regency has ongoing development projects with estimated net costs of around $499 million [6]. Financial Flexibility - Regency Centers maintains a healthy balance sheet with $1.2 billion of capacity under its revolving credit facility and approximately $78.5 million in cash as of March 31, 2025 [7]. - The company has a pro-rata net debt and preferred stock-to-operating EBITDAre ratio of 5.3 and a fixed charge coverage ratio of 4.3, indicating strong financial health [9]. Dividend Policy - Regency Centers has demonstrated a commitment to shareholder returns, with a CAGR of 3.7% in dividends from 2014 to Q4 2024, and has increased its dividend four times in the last five years [10]. Industry Challenges - The shift towards e-commerce poses a threat to brick-and-mortar retail, particularly affecting grocery-anchored centers [11]. - Elevated interest rates may dampen consumer sentiment and limit the company's ability to increase rents and occupancy [12]. - Interest expenses rose by 12% year-over-year to $48 million in Q1 2025, with consolidated debt at approximately $4.64 billion as of March 31, 2025 [13].

Core Insights - Regency Centers Corporation released its 2024 Corporate Responsibility Report and TCFD-aligned Climate Risk Report, emphasizing its commitment to corporate responsibility and transparency regarding climate-related risks and opportunities [1][3] Corporate Responsibility Highlights - The guiding principles of Regency's Corporate Responsibility program are integral to its core values, aiming to drive sustainable growth and long-term shareholder value while positively impacting communities [2] - The 2024 Corporate Responsibility Report showcases various awards and recognitions, including a record-high Employee Engagement score of 88% for the second consecutive year and the Healthiest Companies Award for 16 consecutive years [7] - Regency contributed approximately $1.8 million to charitable causes and employees volunteered over 2,000 hours to local communities [7] Climate Risk and Sustainability Efforts - The 2024 TCFD Report reflects Regency's efforts to enhance communication regarding climate-related risks and opportunities, integrating climate considerations into its business strategy and asset management [3] - Significant progress has been made towards the 2030 Scope 1 and 2 greenhouse gas emissions reduction target, achieving a cumulative reduction of 23% from the 2019 baseline year [7] - Regency exceeded its previous 2030 goals for onsite renewable energy and water reduction [7]

Core Viewpoint - Regulus Resources Inc. is advancing its Phase Two metallurgical test program with Nuton LLC, focusing on bio-leaching technologies for the AntaKori copper-gold project, while also progressing on an integrated resource estimate with Compañía Minera Coimolache S.A. for the Integrated Sulphide Project [1][4]. Nuton Phase Two Program - The Phase One program confirmed that AntaKori material is suitable for Nuton's proprietary sulphide bio-leaching technology [2]. - The Phase Two program is evaluating various conditions for optimal leaching of enargite-rich high-sulphidation mineralization, with the highest copper extraction achieved so far being 88.3% [3]. - Additional columns have been initiated to further refine the optimal conditions for leaching [3]. Integrated Sulphide Project - Regulus and Coimolache are collaboratively developing an integrated geological model for the Integrated Sulphide Project, which is a prerequisite for the resource estimate [4]. - SRK Peru has been contracted to complete the resource estimate, expected to be finalized by mid-year [4]. Company Insights - The CEO of Regulus expressed optimism regarding the results from the Phase Two program, highlighting the potential of Nuton's bio-leaching technology for both high-sulphidation and porphyry mineralization [5]. - The AntaKori project currently hosts indicated mineral resources of 250 million tonnes at a grade of 0.48% Cu, 0.29 g/t Au, and 7.5 g/t Ag, and inferred mineral resources of 267 million tonnes at a grade of 0.41% Cu, 0.26 g/t Au, and 7.8 g/t Ag [7].

Core Viewpoint - Regency Centers Corporation announced a $400 million public offering of senior unsecured notes due 2032, with a coupon rate of 5.00% and maturing on July 15, 2032 [1][2]. Group 1: Offering Details - The notes were issued at 99.279% of par value, with interest payable semiannually on January 15 and July 15, starting January 15, 2026 [1]. - The net proceeds from the offering will be used to reduce the outstanding balance on its line of credit, repay $250 million of 3.90% notes due November 1, 2025, and for general corporate purposes [2]. Group 2: Underwriters - The offering is managed by Wells Fargo Securities, BofA Securities, J.P. Morgan Securities, TD Securities, PNC Capital Markets, Regions Securities, and U.S. Bancorp Investments as joint book-running managers [3]. Group 3: Company Overview - Regency Centers is a leading national owner, operator, and developer of shopping centers, focusing on suburban trade areas with strong demographics [7]. - The company operates as a fully integrated real estate investment trust (REIT) and is a member of the S&P 500 Index [7].

Core Points - Regency Centers Corporation announced quarterly cash dividends on its common stock and preferred stocks [1][4] - The company is a leading owner, operator, and developer of shopping centers in suburban areas [2] - Regency Centers is a self-administered and self-managed real estate investment trust (REIT) and a member of the S&P 500 Index [2] Dividend Details - The quarterly cash dividend on common stock is set at $0.705 per share, payable on July 2, 2025, to shareholders of record as of June 11, 2025 [4] - The quarterly cash dividend on Series A preferred stock is $0.390625 per share, payable on July 31, 2025, to shareholders of record as of July 16, 2025 [4] - The quarterly cash dividend on Series B preferred stock is $0.367200 per share, also payable on July 31, 2025, to shareholders of record as of July 16, 2025 [4]

Financial Performance - Net income attributable to common shareholders for Q1 2025 was $106.2 million, slightly down from $106.4 million in Q1 2024[120] - Net income attributable to common shareholders for the three months ended March 31, 2025, was $106.174 million, a decrease of $187, compared to $106.361 million in 2024[135] - Total real estate revenue increased by $17.136 million to $396.135 million for the three months ended March 31, 2025, compared to $378.999 million in 2024[139] - Nareit FFO attributable to common stock and unit holders for the three months ended March 31, 2025, was $210.749 million, an increase from $199.967 million in 2024[142] - Cash flows from operations for the three months ended March 31, 2025, were $161.0 million, compared to $167.8 million in 2024[149] - Net cash provided by operating activities decreased by $6.7 million to $161.0 million for the three months ended March 31, 2025, compared to $167.8 million in 2024[155] - Net cash used in investing activities increased by $37.8 million to $180.1 million in 2025, primarily due to an $83.2 million acquisition of two operating properties[156] - Net cash provided by financing activities decreased by $77.6 million to $35.8 million in 2025, with significant debt-related activities including a $200 million draw from the Line[163] Property and Leasing Performance - Pro-rata same property NOI, excluding termination fees, increased by 4.3% compared to Q1 2024, driven by higher occupancy rates and positive rent spreads[120] - The total property portfolio was 96.3% leased as of March 31, 2025, consistent with December 31, 2024, and up from 95.0% in March 2024[120] - The same property portfolio was 96.5% leased as of March 31, 2025, compared to 96.5% in December 2024 and 95.5% in March 2024[120] - 450 new and renewal leasing transactions were executed in Q1 2025, representing 1.4 million Pro-rata SF with positive rent spreads of 8.1%[120] - The weighted average annual effective rent per square foot (PSF) for consolidated properties increased to $25.81 from $25.56, while for unconsolidated properties, it rose to $24.82 from $24.51[122] - The percentage leased for all properties remained stable at 96.3% as of March 31, 2025, consistent with December 31, 2024[122] Capital Structure and Liquidity - The company focuses on maintaining a conservative capital structure and strong balance sheet to support liquidity and investment opportunities[120] - The company had $1.22 billion available on its credit line as of March 31, 2025, which expires on March 23, 2028[123] - The company plans to require approximately $856.2 million in capital over the next 12 months for leasing commissions, tenant improvements, and maturing debt repayments[150] - The company has $430.3 million of loan maturities in the next 12 months, including $250 million of unsecured public debt maturing in November 2025[147] - The company expects to address maturing obligations through refinancing, available liquidity, and proceeds from potential property sales[147] - As of March 31, 2025, 89.4% of the company's wholly-owned real estate assets were unencumbered, enhancing access to secured and unsecured debt markets[152] Development and Redevelopment - The company continues to develop and redevelop high-quality shopping centers to enhance its portfolio[121] - Estimated pro-rata project costs for current development and redevelopment projects totaled $498.5 million, slightly up from $497.3 million at the end of 2024[123] - The company invested $101.4 million in real estate development, redevelopment, and capital improvements during the three months ended March 31, 2025, up from $60.9 million in 2024[159] - The company has ongoing development projects with estimated net development costs of $238.8 million and a total of 586 thousand square feet of gross leasable area (GLA) as of March 31, 2025[162] - Redevelopment costs increased significantly, with total redevelopment projects in-process amounting to $259.7 million as of March 31, 2025[162] - The company plans to continue developing and redeveloping shopping centers for long-term investment, focusing on enhancing its portfolio through various redevelopment strategies[161] Financial Health and Ratings - The company received a credit rating upgrade to A- with a stable outlook from S&P Global Ratings in February 2025[123] - The company maintained compliance with various financial covenants as of March 31, 2025, and expects to continue this compliance[154] - The average interest rate for fixed rate debt was 4.11% as of March 31, 2025, while the average for variable rate debt was 5.21%[174] - An increase of 100 basis points in interest rates could decrease future earnings and cash flows by approximately $2.7 million per year based on $274.6 million of floating rate mortgage debt[170] - The company believes it can successfully issue new secured or unsecured debt to fund maturing obligations despite potential capital market volatility[169] Tenant and Partnership Information - Tenants currently in bankruptcy represent 0.9% of the company's pro-rata annual base rent, with no single tenant exceeding 0.5%[128] - Equity in income of investments in real estate partnerships increased by $2.5 million due to increases from occupancy and positive rental spreads on new and renewal leases[135] - As of March 31, 2025, the total assets of the real estate partnerships amounted to $2,808,448,000, a decrease of 1.2% from $2,843,157,000 on December 31, 2024[164] - The liabilities of the real estate partnerships were $1,653,665,000, down 1.4% from $1,676,507,000 as of December 31, 2024[164] - Regency's pro-rata share of equity in real estate partnerships was $435,909,000, reflecting a decrease of 1.9% from $444,354,000 at the end of 2024[164] - The company acquired a 33.3% share in a property partnership for $10.3 million, resulting in 100% ownership of that property[164] Interest and Management Fees - Interest expense, net increased by $5.1 million to $48.0 million for the three months ended March 31, 2025, compared to $42.9 million in the same period of 2024[134] - Management fee income for the three months ended March 31, 2025, was $6,812,000, an increase of 6.5% from $6,396,000 in the same period of 2024[167] - Scheduled principal repayments on notes payable for 2025 total $29,991,000, with total notes payable reaching $1.5 billion maturing through 2034[165] - 91.8% of the notes payable had a weighted average fixed interest rate of 3.9%, while the remaining had a variable interest rate of 6.5% as of March 31, 2025[165]

Financial Data and Key Metrics Changes - The company reported strong same property NOI growth of 4.3%, primarily driven by growth in base rent [10] - NAREIT FFO is expected to grow nearly 6% in 2025, with same property NOI growth projected at 3.6% [15] - Cash rent spreads were 8% in Q1, while GAAP rent spreads were nearly 19% [10] Business Line Data and Key Metrics Changes - Significant progress was made in leasing activity, with approximately $10 million of annual base rent (ABR) from new leases commenced [10] - The same property percent commenced rate increased by 20 basis points in the quarter [10] - The S and O pipeline value increased to $46 million of incremental base rent [10] Market Data and Key Metrics Changes - Foot traffic accelerated in April, showing a 7% year-over-year increase [44] - The company noted that leasing activity remained strong, with no significant impact from macroeconomic uncertainties [44] Company Strategy and Development Direction - The company aims to continue opportunistic acquisitions and maintain a focus on grocery-anchored neighborhood and community centers [7] - Development and redevelopment projects are a key component of the company's strategy, with a focus on high-quality markets [14] - The company is committed to maintaining a strong balance sheet to capitalize on opportunities during economic cycles [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid economic uncertainty, citing strong tenant health and demand for essential goods [8][29] - The company remains focused on its long-term strategic objectives and believes it is well-positioned to outperform across economic cycles [8] Other Important Information - The company has a strong liquidity position and access to low-cost capital, which supports its growth strategy [8] - The credit rating was upgraded to A- by S&P, reflecting the strength of the company's balance sheet [17] Q&A Session Summary Question: Concerns about watch list and bad debt - Management stated that the watch list remains consistent and accounts receivable is below historic levels [20][22] Question: Leasing discussions and tariff impacts - Management acknowledged the uncertainty around tariffs but emphasized the resilience of their tenant base and the essential nature of their offerings [28][29] Question: Construction costs and yield evolution - Management is closely monitoring construction costs and believes they can deliver projects on budget despite potential tariff impacts [48] Question: Transactions market and cap rates - Management noted that cap rates for high-quality grocery-anchored assets remain in the 5% to 6% range, with strong interest from private capital [53] Question: Brentwood acquisition details - Management expressed confidence in the growth potential of the Brentwood acquisition, targeting a high single-digit IRR [57] Question: Development strategy and competition - The company remains focused on grocery-anchored developments and has strong relationships with key grocers [105][106] Question: Foot traffic and regional variances - Management reported that foot traffic was up across all regions, with no significant variances [114] Question: Impact of tariffs on retailers and store owners - Management believes that while retailers face margin pressures, the quality of their trade areas and tenant base will help mitigate impacts [118]

Financial Data and Key Metrics Changes - The company reported strong same property NOI growth of 4.3%, primarily driven by growth in base rent [9] - NAREIT FFO is expected to grow nearly 6% in 2025, with same property NOI growth projected at 3.6% [13][14] - Cash rent spreads were 8% in Q1, while GAAP rent spreads were nearly 19% [9] Business Line Data and Key Metrics Changes - Significant progress was made in leasing activity, with approximately $10 million of ABR from new leases commenced [9] - The leased occupancy increased by 10 basis points in Q1, building on a 60 basis point increase from the previous year [8] - The SNO pipeline value increased to $46 million of incremental base rent, supporting future occupancy [9] Market Data and Key Metrics Changes - Foot traffic accelerated in April, showing a 7% year-over-year increase in the first three weeks [41] - The company noted that tenant health remains strong, with no significant shifts in consumer behavior reported [4][29] Company Strategy and Development Direction - The company aims to continue opportunistic growth supported by substantial liquidity and access to low-cost capital [6] - Development and redevelopment projects are a key component of the strategy, with a focus on grocery-anchored centers [11][12] - The company maintains a competitive edge through its unique combination of strategic advantages, including strong demographics in trade areas [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated volatility and macroeconomic uncertainty but expressed confidence in the company's positioning to thrive across economic cycles [6] - The company remains focused on essential non-discretionary needs, which are expected to be more resilient during economic downturns [5][29] - Management emphasized the importance of maintaining a strong tenant base and proactive management of the watch list [20][27] Other Important Information - The company received credit rating upgrades from S&P to A- and from Moody's to A3, reflecting the strength of its balance sheet [15] - The company is committed to maintaining a balance sheet capacity to capitalize on opportunities as they arise [35] Q&A Session Summary Question: Concerns about watch list and bad debt - Management stated that the watch list remains consistent and that accounts receivable is below historic levels [20] Question: Leasing discussions and tariff impacts - Management reiterated that the impact of tariffs is uncertain, but the essential nature of their offerings provides resilience [26][29] Question: Changes in lease deal timelines - Management reported strong leasing activity in April, with no significant delays or pushback observed [40] Question: Construction costs and yield evolution - Management is closely monitoring construction costs and remains confident in delivering projects on budget [46] Question: Transactions market and cap rates - Management noted that cap rates for high-quality grocery-anchored assets remain in the 5% to 6% range, with continued interest from private capital [50] Question: Brentwood acquisition details - Management expressed confidence in the mark-to-market opportunities and projected a high single-digit IRR for the Brentwood acquisition [55] Question: Future plans for acquisitions - Management is focused on expanding in high-quality markets and is actively seeking opportunities in Nashville and other key areas [61] Question: Impact of tariffs on tenants - Management emphasized the importance of tenant success for cash flow sustainability and noted that the quality of trade areas helps mitigate risks [109]