Financial Data and Key Metrics Changes - Regency Centers achieved NAREIT FFO per share growth of close to 8% and Core Operating Earnings per share growth of nearly 7% for the full year [16][19] - Same-Property NOI growth finished at 5.3%, driven by strong operating fundamentals and substantial external growth [9][16] - The company expects same-property NOI growth in a range of 3.25%-3.75% for 2026, largely driven by rent spreads and redevelopment deliveries [17][19] Business Line Data and Key Metrics Changes - The company reported significant same-property NOI growth of 5.3%, supported by substantial base rent contributions and increased occupancy [9][16] - Average percent commencement rate for the portfolio increased by 150 basis points year-over-year, indicating strong tenant demand [9][11] - Cash rent spreads of 12% in Q4, with renewal spreads at a record 13%, highlighting the depth of embedded mark-to-market in the portfolio [11][12] Market Data and Key Metrics Changes - Tenant demand remains exceptionally strong across nearly every category, with significant leasing activity from grocery anchors like Whole Foods, Sprouts, and Trader Joe's [10][12] - The company noted historically low bad debt and continued growth in tenant sales and foot traffic, reinforcing the durability of its portfolio [6][8] - The development pipeline includes over $300 million of new project starts, with a total of more than $800 million in new projects started over the past three years [7][14] Company Strategy and Development Direction - Regency Centers is focused on ground-up development as a primary driver of external growth, leveraging expertise and access to low-cost capital [7][15] - The company aims to create long-term shareholder value while amplifying its NOI growth profile through disciplined capital allocation [8][19] - The management emphasized the importance of maintaining a strong balance sheet and liquidity position to remain opportunistic in the market [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, noting robust demand for grocery-anchored real estate and a favorable backdrop for physical retail [8][19] - The company is optimistic about the significant momentum into 2026, with strong fundamentals and active leasing teams driving occupancy and rent growth [12][19] - Management acknowledged potential challenges in the broader retail environment but emphasized the essential nature of their tenants and the resilience of their portfolio [53] Other Important Information - Regency Centers has a strong development platform with a projected visibility of nearly $1 billion in project starts over the next three years [14][19] - The company maintains a fortress balance sheet with A3, A- credit ratings from Moody's and S&P, and no need to raise equity or sell properties to fund its investment pipeline [19] Q&A Session Summary Question: Follow-up on acquisitions and dispositions - Management noted that there is strong demand for grocery-anchored real estate, with a broad range of opportunities available, but they do not guide on acquisitions [21][23] Question: Impact of Amazon closing grocery stores - Management expressed confidence in the grocery sector, highlighting that Amazon's focus on Whole Foods is encouraging and that they are exploring options for the closed stores [29][30] Question: Development and redevelopment spend guidance - Management indicated that the $325 million development and redevelopment spend is roughly two-thirds ground-up and one-third redevelopment [38] Question: Changes in store openings or closures - Management reported strong tenant health, with below-historic norms for accounts receivable and continued upward trends in sales and foot traffic [51][53] Question: Leasing spreads and renewal spreads - Management explained that renewal spreads exceeded new spreads due to favorable supply-demand dynamics and opportunities to mark below-market leases to market [82][83]

Financial Data and Key Metrics Changes - Regency Centers achieved NAREIT FFO per share growth of close to 8% and Core Operating Earnings per share growth of nearly 7% for the full year 2025, driven by strong operating fundamentals and substantial external growth from acquisitions and development projects [15][18] - Same-Property NOI growth finished at 5.3%, supported by substantial base rent contributions and low levels of uncollectible lease income [7][15] Business Line Data and Key Metrics Changes - The company reported a significant increase in same-property shop occupancy by 40 basis points, reaching a record of 94.2% leased at year-end [7][8] - Cash rent spreads of 12% in Q4 and renewal spreads at a record 13% highlight the depth of embedded mark-to-market in the portfolio [9][10] Market Data and Key Metrics Changes - The grocery leasing activity was significant, with leases signed with major retailers such as Whole Foods, Sprouts, and Trader Joe's, indicating strong demand in the grocery sector [8][9] - The company noted that tenant demand remains exceptionally strong across nearly every category, with a notable increase in leasing activity for shop spaces [7][10] Company Strategy and Development Direction - Regency Centers is focused on ground-up development as a primary driver of external growth, with over $300 million in new project starts in 2025 and a pipeline translating into meaningful NOI growth in 2026 and beyond [5][12] - The company is leveraging its expertise and long-standing tenant relationships to build high-quality shopping centers at meaningful spreads to market value, positioning itself favorably in a low-supply growth environment [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, noting that physical retail, particularly grocery-anchored real estate, continues to benefit from limited new supply and strong tenant demand [6][18] - The guidance for 2026 anticipates same-property NOI growth in the range of 3.25%-3.75%, driven by rent spreads and redevelopment deliveries [16][17] Other Important Information - The company has a strong balance sheet with A3, A- credit ratings from Moody's and S&P, and nearly full availability on its $1.5 billion credit facility, providing a solid foundation for future investments [18] - Regency Centers is not planning to raise equity or sell properties to fund its investment pipeline, relying instead on strong free cash flow generation [18] Q&A Session Summary Question: Thoughts on acquisitions and market opportunities - Management noted that there is growing demand for grocery-anchored real estate, with a broad range of opportunities available, but emphasized that acquisitions will only be pursued if they meet quality and growth profiles [20][22] Question: Impact of Amazon closing grocery stores - Management reassured that the closure of Amazon Fresh stores does not indicate a pullback in physical retail, as Amazon still owns Whole Foods and is expanding that brand [28][29] Question: Development and redevelopment spend guidance - The company indicated that the $325 million development and redevelopment spend is roughly two-thirds ground-up and one-third redevelopment, with a strong focus on ground-up development moving forward [35][37] Question: Current tenant health and consumer resilience - Management reported that tenant health remains strong, with below-average accounts receivable and increasing sales and foot traffic, indicating confidence in the current market conditions [51][53] Question: Construction cost assumptions and pressures - Management expressed confidence in stable construction costs and good visibility in their underwriting, indicating no anticipated pressure on development yields [94][95]

Financial Data and Key Metrics Changes - Regency Centers achieved NAREIT FFO per share growth of close to 8% and Core Operating Earnings per share growth of nearly 7% for the full year, driven by strong operating fundamentals and substantial external growth from acquisitions and development projects [15][18] - Same-Property NOI growth finished at 5.3%, supported by substantial base rent contributions and low levels of uncollectible lease income [8][15] Business Line Data and Key Metrics Changes - The company reported a significant increase in same-property shop occupancy by 40 basis points, reaching a record of 94.2% leased at year-end [8][10] - Cash rent spreads of 12% in Q4 included renewal spreads at a record 13%, while gap rent spreads of 25% also marked an all-time high [10][15] Market Data and Key Metrics Changes - Tenant demand remains strong across various categories, with notable leasing activity from grocery anchors such as Whole Foods, Sprouts, and Trader Joe's [9][10] - The company noted historically low bad debt and continued growth in tenant sales and foot traffic, reinforcing the durability of its portfolio [4][6] Company Strategy and Development Direction - Regency Centers is focused on ground-up development as a primary driver of external growth, with a development pipeline of nearly $600 million and plans for nearly $1 billion in project starts over the next three years [12][14] - The company is leveraging its expertise and long-standing tenant relationships to build high-quality shopping centers at meaningful spreads to market value, positioning itself favorably in a low-supply growth environment [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, highlighting strong tenant demand and a favorable backdrop for physical retail, particularly grocery-anchored real estate [6][18] - The guidance for 2026 anticipates same-property NOI growth in the range of 3.25%-3.75%, driven by rent spreads and redevelopment deliveries [16][18] Other Important Information - The company has a strong balance sheet with A3, A- credit ratings from Moody's and S&P, and nearly full availability on its $1.5 billion credit facility [18] - Regency Centers is not planning to raise equity or sell properties to fund its investment pipeline, relying instead on strong free cash flow generation [18] Q&A Session Summary Question: Thoughts on acquisitions and market opportunities - Management noted strong demand for grocery-anchored real estate, with a broad range of opportunities available, but emphasized that acquisitions will only be pursued if they meet quality and growth profiles [22][24] Question: Impact of Amazon Fresh store closures - Management expressed confidence in the grocery sector, indicating that the closures could lead to opportunities for conversion to Whole Foods and highlighted the strength of existing leases with Amazon [30][32] Question: Development and redevelopment spend guidance - Management indicated that the $325 million development and redevelopment spend is roughly two-thirds ground-up and one-third redevelopment, with a strong focus on ground-up development moving forward [38][40] Question: Tenant demand and occupancy trends - Management reported that tenant health remains strong, with low accounts receivable and increasing sales and foot traffic, indicating resilience in the current market [54][55] Question: Construction cost assumptions - Management expressed confidence in stable construction costs and good visibility for future projects, indicating no significant pressure expected [96][97]

Core Insights - Regency Centers Corporation (REG) reported fourth-quarter 2025 NAREIT funds from operations (FFO) per share of $1.17, reflecting a 7.3% increase year-over-year and meeting the Zacks Consensus Estimate [1][8] - The company experienced strong leasing activity, with a year-over-year improvement in same-property net operating income (NOI) and base rents [1][4] - Regency Centers issued its 2026 NAREIT FFO per share guidance in the range of $4.83-$4.87, slightly above the current Zacks Consensus Estimate of $4.82 [10] Financial Performance - Total revenues for the fourth quarter reached $404.2 million, an 8.5% increase from the previous year, surpassing the Zacks Consensus Estimate of $395 million [2] - For the full year 2025, NAREIT FFO per share was $4.64, up from $4.30 year-over-year, although it fell short of the Zacks Consensus Estimate of $4.82 [2] - Total revenues for the full year amounted to $1.55 billion, reflecting a 6.9% increase from the prior year [2] Leasing Activity - In Q4 2025, Regency Centers executed approximately 1.7 million square feet of comparable new and renewal leases at a blended cash rent spread of 12% [3][8] - The same-property portfolio was 96.5% leased as of December 31, 2025, a slight decrease of 10 basis points year-over-year [3][8] - The same-property anchor percent leased was 97.9%, down 70 basis points year-over-year, while the same-property shop percent leased increased by 70 basis points to 94.2% [3][4] Operational Metrics - Same-property NOI, excluding lease termination fees, increased by 4.7% year-over-year to $274.2 million, with base rent growth contributing 4.1% to this increase [4][8] - As of December 31, 2025, Regency Centers had $597 million in estimated net project costs for in-process development and redevelopment projects, having incurred 43% of this cost [5] Portfolio Activity - In Q4 2025, the company completed a property distribution involving 11 shopping centers within the Regency-GRI joint venture [6] - The company disposed of Hammocks Town Center in Miami, FL, for approximately $72 million and acquired Crystal Brook Corner, a redevelopment project in New York, for $30 million [6] Balance Sheet - As of December 31, 2025, Regency Centers had nearly $1.4 billion of capacity under its revolving credit facility, with a pro-rata net debt and preferred stock to trailing 12 months operating EBITDAre ratio of 5.1X [9]

Our Space is Your Place EARNINGS PRESENTATION 4th Quarter 2025 RegencyCenters.com Anastasia Plaza St. Augustine, FL Risk Factors Related to Pandemics or other Public Health Crises Pandemics or other public health crises, 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-Bas ...

Regency Centers (REG) came out with quarterly funds from operations (FFO) of $1.17 per share, in line with the Zacks Consensus Estimate . This compares to FFO of $1.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +0.09%. A quarter ago, it was expected that this shopping center real estate investment trust would post FFO of $1.15 per share when it actually produced FFO of $1.15, delivering no surprise.Over the last four quarters, ...

Financial Performance - Net Income Attributable to Common Shareholders for Q4 2025 was $1.09 per diluted share, compared to $0.46 in Q4 2024, representing a significant increase[19] - Full-year Net Income Attributable to Common Shareholders for 2025 was $2.82 per diluted share, up from $2.11 in 2024[19] - For the three months ended December 31, 2025, Net Income Attributable to Common Shareholders was $199.1 million, or $1.09 per diluted share, compared to $83.1 million, or $0.46 per diluted share, for the same period in 2024[27] - For the twelve months ended December 31, 2025, Nareit FFO was $855.7 million, or $4.64 per diluted share, compared to $790.9 million, or $4.30 per diluted share, for the same period in 2024[27] - Net income attributable to common shareholders increased to $199,068,000 for Q4 2025, up from $83,066,000 in Q4 2024, representing a growth of 139.9%[65] - Net income attributable to common shareholders for the year ended December 31, 2025, was $513,810, a 32.8% increase from $386,738 in 2024[77] Funds From Operations - Nareit FFO for Q4 2025 was reported at $1.17 per diluted share, with full-year Nareit FFO at $4.64 per diluted share, reflecting a 7.9% growth year-over-year[22] - Nareit Funds From Operations (Nareit FFO) for the year ended 2025 was $855,725,000, a 8.2% increase from $790,892,000 in 2024[65] - Nareit Funds From Operations (FFO) for Q4 2025 reached $219.346 million, compared to $199.472 million in Q4 2024, reflecting a 9.4% growth[89] Operating Earnings - Core Operating Earnings for Q4 2025 were $1.12 per diluted share, and $4.41 per diluted share for the full year, marking a 6.8% increase[22] - Core Operating Earnings for Q4 2025 were $208.971 million, an increase from $190.578 million in Q4 2024, marking a 9.6% rise[89] - Core Operating Earnings per diluted share guidance for 2026 is set at $4.59 to $4.63, an increase from $4.41 in 2025[139] Same Property Performance - Same Property Net Operating Income (NOI) increased by 4.7% year-over-year for Q4 and by 5.3% for the full year, excluding termination fees[22] - Fourth quarter 2025 Same Property NOI, excluding termination fees, increased by 4.7% compared to the same period in 2024, with Same Property base rent growth contributing 4.1% to this increase[27] - Full year 2025 Same Property NOI, excluding termination fees, increased by 5.3% compared to the same period in 2024[27] - Same Property NOI for the year ended December 31, 2025, was $1,099,808,000, up 5.3% from $1,044,690,000 in 2024[39] Leasing Activity - Regency executed 6.8 million square feet of comparable new and renewal leases during the full year, achieving blended rent spreads of 10.8% on a cash basis and 21.4% on a straight-lined basis[22] - During the three months ended December 31, 2025, Regency executed approximately 1.7 million square feet of comparable new and renewal leases at a blended cash rent spread of +12.0%[27] - In Q4 2025, total leasing transactions reached 377, with a Gross Leasable Area (GLA) of 1,652,000 sq. ft and a new base rent of $29.22 per sq. ft, reflecting a rent spread of 12.0%[113] Development and Redevelopment - The company started $97 million of new development and redevelopment projects in Q4 2025, bringing the total for the year to approximately $318 million[22] - Regency completed $164 million of development and redevelopment projects in Q4 2025, totaling approximately $212 million for the full year[22] - For the twelve months ended December 31, 2025, the Company started development and redevelopment projects with estimated net project costs of approximately $318 million[30] - The company plans to complete a total of $212 million in developments and redevelopments, with a stabilized yield of approximately 10%[108] Dividends - The Board declared a quarterly cash dividend of $0.755 per share on February 4, 2026[22] - On February 4, 2026, Regency's Board declared a quarterly cash dividend on the Company's common stock of $0.755 per share, payable on April 1, 2026[30] Guidance and Projections - 2026 Guidance for Net Income Attributable to Common Shareholders per diluted share is projected to be between $2.35 and $2.39, down from $2.82 in 2025[32] - Nareit Funds From Operations (Nareit FFO) per diluted share is expected to be between $4.83 and $4.87 for 2026, compared to $4.64 in 2025[139] - Same property NOI growth without termination fees is projected to be between +3.25% and +3.75% for 2026, down from 5.3% in 2025[139] Debt and Liabilities - Outstanding debt increased to $5,280,308,000 as of December 31, 2025, from $4,984,071,000 in 2024[69] - Total debt outstanding as of December 31, 2025, was $4.739 billion, compared to $4.409 billion as of December 31, 2024, showing a 7.5% increase[93] - The company has a total of $4.74 billion in variable rate mortgage loans, with an effective interest rate of 4.20%[95] Market Capitalization and Share Price - The market price per common share decreased to $69.03 as of December 31, 2025, down from $73.93 a year earlier[65] - Total market capitalization as of December 31, 2025, was $18,275,309,000, compared to $18,636,315,000 in 2024[65] Occupancy and Property Management - The percentage of Same Property leased increased by 10 basis points sequentially to 96.5%[22] - As of December 31, 2025, Regency's Same Property portfolio was 96.5% leased, an increase of 10 basis points sequentially[27] - The overall occupancy rate across all properties is 96.1%, with the highest occupancy in the San Diego-Chula Vista-Carlsbad area at 99.4%[124]

Core Insights - Regency Centers Corporation reported strong financial performance for the fourth quarter and full year 2025, with significant increases in net income and funds from operations [1][3][5] Financial Results - For Q4 2025, net income attributable to common shareholders was $199.1 million, or $1.09 per diluted share, compared to $83.1 million, or $0.46 per diluted share in Q4 2024 [6] - For the full year 2025, net income attributable to common shareholders was $513.8 million, or $2.82 per diluted share, compared to $386.7 million, or $2.11 per diluted share in 2024 [6] - Nareit FFO for Q4 2025 was $219.3 million, or $1.17 per diluted share, up from $199.5 million, or $1.09 per diluted share in Q4 2024 [11] - Full year Nareit FFO was $855.7 million, or $4.64 per diluted share, compared to $790.9 million, or $4.30 per diluted share in 2024 [11] Same Property Performance - Same Property NOI increased by 4.7% year-over-year for Q4 2025 and by 5.3% for the full year, excluding termination fees [5][11] - Same Property percent leased increased by 10 basis points sequentially to 96.5% as of December 31, 2025 [5][11] Leasing Activity - Regency executed 6.8 million square feet of comparable new and renewal leases during 2025, achieving blended rent spreads of 10.8% on a cash basis and 21.4% on a straight-lined basis [5][11] - In Q4 2025, approximately 1.7 million square feet of comparable new and renewal leases were executed at a blended cash rent spread of +12.0% [11] Development and Redevelopment - The company started $97 million of new development and redevelopment projects in Q4 2025, bringing the total for the year to approximately $318 million [5][11] - Completed development and redevelopment projects in Q4 2025 totaled $164 million, with a full year total of approximately $212 million [5][11] Capital Allocation and Balance Sheet - As of December 31, 2025, Regency's in-process development and redevelopment projects had estimated net project costs of $597 million at a blended estimated yield of 9% [5][11] - The pro-rata net debt and preferred stock to TTM operating EBITDAre was 5.1x as of December 31, 2025 [5][11] 2026 Guidance - The company provided initial 2026 guidance, projecting net income attributable to common shareholders per diluted share between $2.35 and $2.39, and Nareit FFO per diluted share between $4.83 and $4.87 [17]

Industry Overview - The Zacks REIT and Equity Trust - Retail industry is experiencing a rebound driven by necessity-based, value-focused, and routine discretionary tenants, which are creating predictable demand [1][4][3] - Limited new supply and cautious development are supporting occupancy, rent stability, and cash flow for retail REITs [1][5] - Well-located stores are gaining value as they integrate fulfillment, returns, and customer engagement strategies [1][4] Key Trends - Everyday retail is becoming a key driver of stability for retail REITs, with tenants that attract regular visits supporting sales performance and improving rent reliability [4] - A prolonged period of limited new supply is underpinning retail REIT fundamentals, as tighter capital conditions and cautious development have reduced new projects [5] - Consumer behavior remains a key uncertainty, with uneven spending patterns across income groups affecting demand for retail space [6] Performance Metrics - The Zacks REIT and Equity Trust - Retail industry carries a Zacks Industry Rank of 92, placing it in the top 38% of 244 Zacks industries, indicating robust near-term prospects [8] - The industry's funds from operations (FFO) per share estimates have seen upward revisions, reflecting growing confidence in the group's growth potential [9] - Over the past year, the industry has underperformed the broader Zacks Finance sector and the S&P 500, declining 2.3% compared to the S&P 500's rise of 17.6% [11] Valuation - The industry is currently trading at a forward 12-month price-to-FFO ratio of 14.91X, which is below the S&P 500's forward P/E of 23.20X and the Finance sector's forward P/E of 17.12X [14] - Historical trading ranges show the industry has fluctuated between a high of 18.89X and a low of 12.21X over the last five years, with a median of 15.15X [17] Investment Opportunities - Simon Property Group is the largest retail REIT with a strong balance sheet liquidity exceeding $9 billion, resilient occupancy, and a tenant mix that enhances pricing power [18][19] - Regency Centers Corporation focuses on grocery-anchored shopping centers in affluent markets, with over 85% of its portfolio supporting stability across cycles [23][24] - Urban Edge Properties targets high-income markets with a portfolio that is 80% grocery-anchored, enhancing income stability and targeting 4-5% annual FFO growth [28][30]

Core Insights - The retail REIT sector is showing signs of stabilization and improvement, with expectations to surpass Q4 2025 earnings estimates due to steady consumer demand and limited supply growth [2][4][6] Retail REIT Performance - Key retail REITs such as Simon Property Group, Regency Centers, Kimco Realty, and Federal Realty Investment Trust are set to report their Q4 results, reflecting the market conditions from late 2025 [3][4] - Cushman & Wakefield's report indicates a positive net absorption of approximately 3.4 million square feet in Q4 2025, marking the strongest quarterly improvement since Q4 2023 [5] Market Conditions - National retail vacancy rates are at 5.7%, indicating tight conditions compared to historical norms, with limited new supply stabilizing occupancy rates [4][6] - Retail real estate fundamentals are expected to maintain steady performance, with vacancy rates projected to remain below 6% into 2026 and rent growth anticipated in the 2-2.5% range [6] Company-Specific Insights - **Simon Property Group**: Expected to report revenues of $1.63 billion for Q4 2025, reflecting a 2.84% year-over-year increase, with a focus on high-quality assets and omnichannel integration [10][11] - **Regency Centers**: Anticipated to report revenues of $398.94 million, a 7.09% increase year-over-year, supported by a well-located portfolio and strong demand for grocery-anchored shopping centers [12][13] - **Kimco Realty**: Projected revenues of $537.59 million for Q4 2025, indicating a 2.32% year-over-year increase, benefiting from a diverse tenant base and focus on mixed-use developments [15][16] - **Federal Realty**: Expected to report revenues of $328.96 million, a 5.63% increase year-over-year, driven by improving demand for premium retail assets and strategic acquisitions [18][19]