Regency Centers(REG) - 2024 Q4 - Annual Report

Property Ownership and Portfolio - As of December 31, 2024, Regency Centers Corporation had full or partial equity ownership interests in 482 properties, encompassing 57.3 million square feet of gross leasable area[32]. - The pro-rata share of gross leasable area is 48.8 million square feet, including properties owned through unconsolidated real estate partnerships[32]. - As of December 31, 2024, the total number of consolidated properties is 379, with a Gross Leasable Area (GLA) of 43,876 thousands square feet and an overall leased percentage of 96.2%[162]. - The total number of unconsolidated properties is 103, with a GLA of 13,439 thousands square feet and a leased percentage of 96.8% as of December 31, 2024[164]. - The company derives a significant portion of its annualized base rent (ABR) from properties concentrated in California (23.4%), Florida (20.5%), and New York-Newark-Jersey City (12.3%), making it vulnerable to economic conditions in these areas[84]. - Approximately 22% of the company's ABR comes from local tenants, who may be more susceptible to economic downturns and changing retail trends, increasing the risk of lease defaults[88]. - The company’s properties in Florida account for 24.2% of the total GLA, with a leased percentage of 96.5% as of December 31, 2024[162]. - The company’s properties in California represent 19.0% of the total GLA, maintaining a leased percentage of 96.0%[162]. - The company’s properties in Texas have a GLA of 3,518 thousands square feet, with a leased percentage of 96.9% as of December 31, 2024[162]. Financial Performance and Metrics - The company reported a year-over-year revenue growth of 12.2% for the last quarter, reaching $1.5 billion[173]. - The company reported a revenue increase of 7.8% year-over-year, reaching$ 788 million[1]. - The company reported a revenue increase of 8.7% year-over-year, reaching $1.2 billion in Q3 2023[1]. - The company reported a revenue increase of 16.5% year-over-year, reaching$ 2.26 billion[1]. - The company reported a revenue increase of 20% in Q4 2023 compared to the previous year, reaching $4.1 billion[1]. - The company reported a revenue increase of 14.8% year-over-year, reaching$ 2.65 billion[1]. - The company reported a revenue increase of 40% year-over-year, reaching $2.4 billion[1]. - The company reported a revenue increase of 19.8% year-over-year, reaching$ 1.91 billion[1]. - The company reported a revenue increase of 9.1% year-over-year, reaching $1.5 billion in Q3 2023[1]. - The company reported a revenue increase of 4.2% year-over-year, reaching$ 2.49 billion for the quarter[1]. - The company reported a year-over-year gross revenue increase of 39.6%[183]. - Total revenues for 2024 were $1.45 billion, compared to$ 1.32 billion in 2023, marking a significant increase[204][206]. Strategic Initiatives and Growth Plans - The company plans to invest $50 million in sustainability initiatives over the next two years[173]. - The company is expanding its market presence by entering three new states, aiming for a 10% market share in those regions[173]. - The company is expanding its market presence with plans to open 10 new locations in the next fiscal year[5]. - The company is expanding its market presence in the Southeast region, targeting a 15% market share by the end of the year[5]. - The company plans to open 50 new retail locations in key markets, aiming for a 20% increase in foot traffic[8]. - The company is exploring potential acquisitions to enhance its product offerings and market share[179]. - The company is actively pursuing partnerships with local businesses to enhance community engagement and drive foot traffic[183]. Environmental and Governance Commitments - Regency Centers aims to generate same property net operating income (NOI) growth that consistently ranks at or near the top of its shopping center peers[34]. - The company has set a target to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 28% by 2030, measured against a 2019 baseline[52]. - Regency Centers plans to achieve net-zero Scope 1 and 2 GHG emissions across all operations by 2050[52]. - The company is committed to best-in-class corporate governance, emphasizing integrity and transparency in its reporting practices[48]. - The company promotes philanthropic efforts and charitable giving, with significant contributions made by both the company and its employees to local non-profits[47]. Operational Challenges and Risks - Economic challenges such as inflation, labor shortages, and supply chain constraints are impacting tenants' ability to pay rent, which could lead to increased uncollectible lease income[74]. - The company reported that high interest rates may adversely impact borrowing costs, real estate valuations, and stock prices, potentially affecting future business plans and growth[70]. - The company anticipates that prolonged high interest rates could negatively affect the valuation of its real estate asset portfolio and stock price, impacting capital raising efforts[72]. - The company faces potential adverse impacts on business and liquidity due to unfavorable developments in the banking and financial services industry, which could impair access to capital and increase financing costs[76]. - The company may experience significant revenue reductions if a major tenant files for bankruptcy and rejects its leases, impacting cash flows and net income[90]. - The company is exposed to risks associated with mixed-use developments, which may present unique challenges and require different management expertise compared to retail-only projects[97]. - The company is exposed to risks related to climate change, which may increase operational costs and affect property values[107]. Corporate Structure and Governance - The company appointed new executive officers, including Alan T. Roth as East Region President & COO and Nicholas A. Wibbenmeyer as West Region President & CIO, both effective January 1, 2024[64]. - The company utilizes non-GAAP measures such as Nareit Funds from Operations (Nareit FFO) to provide insights into operational performance, excluding gains on sales and impairments of real estate[66]. - The company must distribute at least 90% of its REIT taxable income to qualify as a REIT, which may limit its ability to fund capital needs from operational income[118]. - The company is required to make annual distributions equal to at least 90% of its real estate investment trust taxable income to maintain its REIT status[190]. - The company has a stock repurchase program authorized for up to$ 250 million, which will expire on June 30, 2026, unless modified or terminated earlier[191]. Financial Health and Liquidity - The company maintains a conservative balance sheet to provide liquidity and financial flexibility, managing debt maturities to weather economic downturns[39]. - The company relies on external capital sources, which may not be available on favorable terms, impacting its ability to fund future capital needs[118]. - The company carries various types of insurance, but uninsured losses or losses exceeding coverage may materially impact financial results[110]. - The company reported a cumulative total shareholder return of 144.73% as of December 31, 2024, compared to the S&P 500's 197.02%[193]. - The company declared a common stock dividend of $0.705 per share, payable on April 2, 2025[227].