1Q25 Earnings Presentation Naperville Plaza| Naperville, IL Safe Harbor and Non-GAAP Disclosures 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 2025 Guidance, are "forward-looking statements" made pursuant to the safe harbor provisions ...

Group 1 - Regency Centers (REG) reported quarterly funds from operations (FFO) of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and up from $1.08 per share a year ago, representing an FFO surprise of 0.88% [1] - The company achieved revenues of $380.91 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.60%, compared to $363.85 million in the same quarter last year [2] - Regency Centers has outperformed the market with a 2.8% decline since the beginning of the year, compared to the S&P 500's decline of 6% [3] Group 2 - The current consensus FFO estimate for the upcoming quarter is $1.12 on revenues of $371.91 million, and for the current fiscal year, it is $4.54 on revenues of $1.52 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Group 3 - Regency Centers has surpassed consensus FFO estimates in all four of the last quarters, indicating strong performance consistency [2] - The estimate revisions trend for Regency Centers is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Financial Performance - Net Income Attributable to Common Shareholders for Q1 2025 was $106.2 million, or $0.58 per diluted share, consistent with Q1 2024[20] - Nareit FFO for Q1 2025 was $210.7 million, or $1.15 per diluted share, up from $200.0 million, or $1.08 per diluted share in Q1 2024[25] - Core Operating Earnings for Q1 2025 were $199.4 million, or $1.09 per diluted share, compared to $193.1 million, or $1.04 per diluted share in Q1 2024[26] - Total revenues for Q1 2025 increased to $380,912,000, up from $363,852,000 in Q1 2024, representing a growth of 4.3%[76] - Net income attributable to common shareholders for Q1 2025 was $106,174, compared to $106,361 in Q1 2024, reflecting a slight decrease[65] - Nareit Funds From Operations (Nareit FFO) increased to $210,749 in Q1 2025 from $199,967 in Q1 2024, representing a growth of 5.9%[65] - Core Operating Earnings for the first quarter of 2025 amounted to $199.4 million, with a per share diluted figure of $1.09[38] - The company reported a net income of $111,853,000 for Q1 2025, slightly down from $112,658,000 in Q1 2024, a decrease of 0.7%[90] Property and Leasing Activity - Same Property NOI increased by 4.3% year-over-year, excluding lease termination fees, with Same Property base rents contributing 4.0% to this growth[23] - Same Property percent leased ended the quarter at 96.5%, an increase of 100 basis points year-over-year[23] - Executed 1.4 million square feet of comparable new and renewal leases during the quarter at blended rent spreads of +8.1% on a cash basis and +18.6% on a straight-lined basis[23] - Same Property NOI for the first quarter of 2025 was $273.8 million, reflecting a 4.5% increase compared to the same period in 2024[39] - The percentage of leased retail operating properties remained stable at 96.5% for Q1 2025, consistent with Q4 2024[67] - Leasing statistics for Q1 2025 show 384 transactions totaling 1,409,000 square feet with a new base rent of $28.22 per square foot, reflecting an 8.1% cash rent spread[110] - New leases in Q1 2025 totaled 84 transactions for 187,000 square feet at a new base rent of $38.29 per square foot, with a 22.7% straight-lined rent spread[110] - Renewals in Q1 2025 accounted for 300 transactions covering 1,222,000 square feet at a new base rent of $26.66 per square foot, with a 7.9% cash rent spread[110] Acquisitions and Developments - Acquired Brentwood Place, a community center in Nashville, TN, for $119 million on March 14, 2025[23] - The company completed acquisitions totaling approximately $133 million in the first quarter of 2025, including Brentwood Place for $119 million[33] - As of March 31, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $499 million at a blended yield of 9%[23] - Total in-process developments and redevelopments amount to $499 million, with 51% of costs incurred and a stabilized yield of approximately 9%[105] - Ground-up development expenditures surged to $34,154,000 in Q1 2025, significantly higher than $15,875,000 in Q1 2024, reflecting a growth of 115.0%[90] - The total estimated market value of land and non-income producing assets is $50,916[135] Debt and Financial Ratios - Pro-rata net debt and preferred stock to operating EBITDAre at March 31, 2025 was 5.3x[23] - Total debt outstanding as of March 31, 2025, was $4,641,240,000, an increase from $4,408,700,000 as of December 31, 2024, marking a rise of 5.3%[93] - The interest coverage ratio is 5.3x, reflecting strong earnings relative to interest obligations[97] - The company's total consolidated debt to total consolidated assets ratio is 27%, well below the 65% covenant requirement[97] - The weighted average interest rate on total debt is 4.07%, with fixed rates averaging 3.9% and variable rates at 6.5%[98] Guidance and Projections - Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.25 and $2.31 for 2025, compared to a year-to-date actual of $0.58[31] - Nareit Funds From Operations (Nareit FFO) per diluted share is expected to be between $4.52 and $4.58 for 2025, with a year-to-date actual of $1.15[31] - Core Operating Earnings per diluted share guidance for 2025 is set at $4.30 to $4.36, while the year-to-date actual stands at $1.09[31] - Same property NOI growth without termination fees is projected at 4.3%, with previous guidance of +3.2% to +4.0%[31] - General & administrative expenses are expected to be between $93,000 and $96,000 for 2025, consistent with prior guidance[137] - Development and redevelopment spending is anticipated to be around +/- $250,000 for 2025, unchanged from prior estimates[137] Market and Tenant Overview - The company has a significant presence in Florida, with 92 properties and an annual base rent of $226,829,000, averaging $21.73 per square foot[4] - Grocery tenants represent 20% of the total ABR, followed by Quick Service/Fast Casual restaurants at 13%[123] - The company has a significant tenant exposure with 58% of ABR coming from shop tenants and 42% from anchor tenants[123] - The top 50 Core Based Statistical Areas (CBSAs) account for 80.5% of the total properties, with a GLA of 41,105 thousand square feet and an ABR of $1,017,362 thousand[121] - The company is focused on expanding its presence in high-density markets, as indicated by the performance in major CBSAs[121]

Core Insights - Regency Centers Corporation reported stable net income for Q1 2025, maintaining $0.58 per diluted share, consistent with Q1 2024 [4] - The company experienced strong growth in Same Property Net Operating Income (NOI), increasing by 4.3% year-over-year, excluding lease termination fees [9][15] - Regency's credit rating was upgraded to "A-" with a stable outlook by S&P Global Ratings in February 2025 [8][16] Financial Results - Net Income Attributable to Common Shareholders for Q1 2025 was $106.2 million, slightly down from $106.4 million in Q1 2024 [4] - Nareit Funds From Operations (FFO) for Q1 2025 was $210.7 million, or $1.15 per diluted share, compared to $200.0 million, or $1.08 per diluted share in Q1 2024 [5][24] - Core Operating Earnings for Q1 2025 was $199.4 million, or $1.09 per diluted share, up from $193.1 million, or $1.04 per diluted share in Q1 2024 [6][24] Portfolio Performance - Same Property percent leased was 96.5%, an increase of 100 basis points year-over-year [8][15] - Same Property anchor percent leased was 98.3%, up 130 basis points year-over-year, while Same Property shop percent leased was 93.7%, an increase of 70 basis points year-over-year [8][15] - The company executed 1.4 million square feet of comparable new and renewal leases during the quarter, achieving blended rent spreads of +8.1% on a cash basis and +18.6% on a straight-lined basis [8][15] Capital Allocation and Balance Sheet - Regency's in-process development and redevelopment projects had estimated net project costs of $499 million, with a blended yield of 9% [8][11] - The company completed acquisitions totaling approximately $133 million in Q1 2025, including the acquisition of Brentwood Place for $119 million [16] - As of March 31, 2025, Regency had approximately $1.2 billion of capacity under its revolving credit facility [16] 2025 Guidance - The company reaffirmed its 2025 earnings guidance for Nareit FFO, Core Operating Earnings, and Same Property NOI growth, projecting Nareit FFO per diluted share between $4.52 and $4.58 [14] - Same Property NOI growth without termination fees is expected to be between +3.2% and +4.0% for 2025 [14]

Company Overview - Regency Centers Corp. (REG) is expected to report first-quarter 2025 results on April 29, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1] - In the last reported quarter, Regency's NAREIT FFO per share was $1.09, exceeding the Zacks Consensus Estimate of $1.07, driven by healthy leasing activity and improvements in net operating income and base rent [2] U.S. Retail Real Estate Market - The U.S. shopping center market experienced negative net absorption of 5.9 million square feet in Q1 2025, marking the largest decline since Q3 2020, with neighborhood centers accounting for 75% of the demand pullback [4] - The national vacancy rate increased by 20 basis points to 5.5% year-over-year, although it remains near historical lows due to minimal new construction and tenants adjusting their real estate needs [3][5] - Asking rents for U.S. shopping centers rose by 2.3% year-over-year to $24.76 per square foot in Q1 2025 [5] Factors Influencing Regency's Performance - Regency's portfolio is primarily located in affluent suburban areas, benefiting from post-pandemic migration trends and hybrid work setups [6] - The company has a high-quality open-air shopping center portfolio, with over 80% of its centers grocery-anchored, which supports stable rental revenues [7] - The Zacks Consensus Estimate for REG's first-quarter revenues is $381.3 million, reflecting a 4.8% increase from the previous year, while the FFO per share estimate has been revised upward to $1.14, indicating a growth of nearly 5.6% [8] Challenges Facing Regency - Increased e-commerce adoption and higher interest expenses are expected to negatively impact Regency's quarterly performance [9] - The company's Earnings ESP is currently -0.78%, indicating uncertainty regarding a surprise in FFO per share for the upcoming quarter [10]

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, despite facing challenges from e-commerce, high interest rates, and a concentrated portfolio [1][10]. Group 1: Portfolio and Acquisitions - The company recently acquired Brentwood Place Shopping Center in Brentwood, TN, enhancing its portfolio quality in high-growth markets like Nashville [2]. - Regency's shopping centers are located in affluent suburban areas, attracting top grocers and retailers, with anchor tenants making up 42.4% of its portfolio as of December 31, 2024 [4]. - The company has a high-quality portfolio with over 80% of its centers grocery-anchored, ensuring consistent traffic, and six of its top ten tenants are high-performing grocers [5]. Group 2: Financial Performance and Management - Regency Centers executed acquisitions worth $92 million in 2024 and initiated over $250 million in development projects, with expectations for similar success in 2025 [6]. - As of December 31, 2024, the company had nearly $1.4 billion in capacity under its revolving credit facility, with a pro-rata net debt to operating EBITDAre ratio of 5.2X [7]. - The company received an 'A-' credit rating from S&P Global Ratings in February 2025, enhancing lender confidence and access to favorable debt market conditions [7]. Group 3: Dividend and Shareholder Value - Regency Centers declared a quarterly cash dividend of 70.5 cents in November 2024, a 5.2% increase from the previous quarter, with a CAGR of 3.7% in dividends from 2014 to Q4 2024 [9]. - The company has increased its dividend four times in the last five years, demonstrating a commitment to boosting shareholder wealth [9]. Group 4: Market Challenges - The shift from brick-and-mortar retail to e-commerce is expected to negatively impact retail REITs, including Regency Centers [10]. - High interest rates may dampen consumer sentiment, affecting demand for retail space and limiting rent increases and occupancy growth [10]. - The company's properties in California and Florida represent 23.1% and 18.9% of its annual base rents, making it vulnerable to market fluctuations in these regions [11].

Core Viewpoint - Regency Centers Corporation will announce its first quarter 2025 earnings results on April 29, 2025, after market close, followed by an earnings conference call on April 30, 2025, at 11:00 a.m. ET [1][2] Company Overview - Regency Centers is a leading national owner, operator, and developer of shopping centers located in suburban trade areas with strong demographics [3] - The company's portfolio includes properties with productive grocers, restaurants, service providers, and top-tier retailers that engage with their neighborhoods and communities [3] - Regency Centers 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 [3]

Group 1 - The article discusses a shift in investment strategy towards REIT preferred stocks due to improved spreads, which have become more reasonable recently [1] - The investing group Trade With Beta offers features such as frequent picks for mispriced preferred stocks, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1] - The analyst has a beneficial long position in REGCP and REGCO shares, indicating a personal investment interest in these stocks [1]

Group 1 - Regency Centers (REG) announced the acquisition of Brentwood Place Shopping Center in Brentwood, TN, to enhance its portfolio quality in high-growth markets like Nashville [1][4] - Brentwood Place spans approximately 320,000 square feet, featuring 100,000 square feet of shops and is 95% leased with a mix of national, regional, and local retailers [2][3] - The shopping center is strategically located near Downtown Nashville and the future Vanderbilt Medical Campus, attracting 4.3 million annual visitors [3] Group 2 - Regency Centers focuses on premium shopping centers in affluent suburban areas, aiming to attract top grocers and retailers [4] - In 2024, Regency acquired properties worth a total of $92 million at the company's share, with the Brentwood Place acquisition being part of this strategy [4] - Shares of Regency have decreased by 1% over the past six months, while the industry has seen a decline of 6.6%, indicating a relatively better performance [5] Group 3 - Analysts maintain a bullish outlook on Regency Centers, with a Zacks Rank of 2 (Buy) and a favorable consensus estimate for its 2025 FFO per share at $4.54 [5] - Other top-ranked stocks in the REIT sector include SBA Communications and Tanger Inc., both carrying a Zacks Rank of 2 [6][7]

Core Insights - Regency Centers Corporation has announced the acquisition of Brentwood Place Shopping Center, a prominent retail destination in Brentwood, TN, enhancing its portfolio in a key market [1][5] Acquisition Details - Brentwood Place spans approximately 320,000 square feet, featuring over 100,000 square feet of retail space with major tenants like Nordstrom Rack, Total Wine, TJ Maxx/HomeGoods, and Golf Galaxy [2] - The shopping center is currently 95% leased, indicating strong demand and occupancy [2] Strategic Vision - The acquisition aligns with Regency Centers' strategy of investing in high-quality retail centers located in thriving suburban areas with robust demographics [3] - Brentwood Place attracts over 4.3 million annual visitors, bolstered by its proximity to the future 350,000-square-foot Vanderbilt Medical Campus [4] Market Positioning - This acquisition strengthens Regency Centers' presence in the Nashville market, reflecting the company's commitment to high-growth retail corridors [5] - The shopping center's tenant mix includes national, regional, and local retailers, contributing to a dynamic shopping experience [9] Long-Term Strategy - Regency Centers plans to enhance the property's appeal and long-term value through active asset management and remerchandising strategies [3][9]