Range Resources Corporation press release
Regency Centers Reports Second Quarter 2024 Results
NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · Ethane · United States
JACKSONVILLE, Fla., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency Centers”, “Regency” or the “Company”) (Nasdaq: REG) today reported financial and operating results for the period ended June 30, 2024 and provided updated 2024 earnings guidance. For the three months ended June 30, 2024 and 2023, Net Income Attributable to Common Shareholders was $0.54 per diluted share and $0.51 per diluted share, respectively.
Second Quarter Highlights
Reported Nareit FFO of $1.06 per diluted share and Core Operating Earnings of $1.02 per diluted share Raised 2024 Nareit FFO guidance to a range of $4.21 to $4.25 per diluted share and 2024 Core Operating Earnings guidance to a range of $4.06 to $4.10 per diluted share The midpoint of 2024 Core Operating Earnings guidance represents approximately 4% year-over-year growth, excluding the collection of receivables reserved during 2020-2021 Increased Same Property NOI year-over-year, excluding lease termination fees and the collection of receivables reserved during 2020 and 2021, by 3.3% Increased Same Property percent leased by 80 basis points year-over-year to 95.8%, and Same Property shop percent leased by 80 basis points year-over-year to 93.5% Executed 2.2 million square feet of comparable new and renewal leases at blended rent spreads of +9.2% on a cash basis and +18.2% on a straight-lined basis Repurchased approximately 3.3 million shares of Regency stock for $200 million, at an average price of $60.48 per share Started approximately $40 million of new development and redevelopment projects, bringing year-to-date total project starts to $120 million As of June 30, 2024, Regency's in-process development and redevelopment projects had estimated net project costs of $578 million In May, S&P Global upgraded Regency's outlook to 'Positive' and affirmed the Company's BBB+ credit rating Pro-rata net debt and preferred stock to operating EBITDA _re _at June 30, 2024 was 5.3x, and 5.2x as adjusted for the annualized impact of the EBITDA _re _contribution from Urstadt Biddle Issued our annual Corporate Responsibility report in May, highlighting achievements and progress within our corporate responsibility program and initiatives
Subsequent Highlights
On July 31, 2024, Regency’s Board of Directors (the “Board”) declared a quarterly cash dividend on the Company’s common stock of $0.67 per share
“We drove another great quarter of leasing activity and overall results, and tenant demand remains strong for our high-quality suburban shopping centers,” said Lisa Palmer, President and Chief Executive Officer. "We also continue to identify and execute on new investment opportunities, highlighted in the second quarter by several value-creating project starts, sourcing accretive acquisitions, and executing on opportunistic share repurchases. The strength of our year-to-date results, combined with our strong pipelines of executed leases and development and redevelopment projects, position us well for future growth."
Financial Results
Net Income Attributable to Common Shareholders
For the three months ended June 30, 2024, Net Income Attributable to Common Shareholders was $99.3 million, or $0.54 per diluted share, compared to Net Income Attributable to Common Shareholders of $86.8 million, or $0.51 per diluted share, for the same period in 2023.
Nareit FFO
For the three months ended June 30, 2024, Nareit FFO was $196.4 million, or $1.06 per diluted share, compared to $176.8 million, or $1.03 per diluted share, for the same period in 2023.
Core Operating Earnings
For the three months ended June 30, 2024, Core Operating Earnings was $189.3 million, or $1.02 per diluted share, compared to $164.7 million, or $0.96 per diluted share, for the same period in 2023.
Portfolio Performance
Same Property NOI
Second quarter 2024 Same Property Net Operating Income (“NOI”), excluding lease termination fees and the collection of receivables reserved during 2020 and 2021, increased by 3.3% compared to the same period in 2023. Same Property base rents contributed 2.9% to Same Property NOI growth in the second quarter of 2024.
Occupancy
As of June 30, 2024, Regency’s Same Property portfolio was 95.8% leased, flat sequentially and an increase of 80 basis points compared to June 30, 2023. Same Property anchor percent leased, which includes spaces greater than or equal to 10,000 square feet, was 97.2%, an increase of 80 basis points compared to June 30, 2023. Same Property shop percent leased, which includes spaces less than 10,000 square feet, was 93.5%, an increase of 80 basis points compared to June 30, 2023.
As of June 30, 2024, Regency’s Same Property portfolio was 92.3% commenced, an increase of 10 basis points sequentially and a decline of 30 basis points compared to June 30, 2023.
Leasing Activity
During the three months ended June 30, 2024, Regency executed approximately 2.2 million square feet of comparable new and renewal leases at a blended cash rent spread of +9.2% and a blended straight-lined rent spread of +18.2%. During the trailing twelve months ended June 30, 2024, the Company executed approximately 7.9 million square feet of comparable new and renewal leases at a blended cash rent spread of +9.7% and a blended straight-lined rent spread of +18.5%.
Corporate Responsibility
On May 16, 2024, Regency issued its annual Corporate Responsibility Report, illustrating the Company’s continued commitment to and leadership in environmental, social and governance initiatives and achievements to further our business strategy and performance. The report can be found on our Corporate Responsibility website .
Capital Allocation and Balance Sheet
Developments and Redevelopments
For the three months ended June 30, 2024, the Company started development and redevelopment projects with estimated net project costs of approximately $40 million, at the Company’s share. As of June 30, 2024, Regency’s in-process development and redevelopment projects had estimated net project costs of $578 million at the Company’s share, 49% of which has been incurred to date. Subsequent to quarter end, the Company started the ground-up development Jordan Ranch Market in a suburb of Houston. The 162,000-square-foot center will be anchored by H-E-B and will serve as the retail component of a new master-planned community.
Property Transactions
On May 9, 2024, the Company acquired Compo Shopping Center in Westport, CT for $46 million, at Regency's share. On April, 8, 2024, the Company sold Tamarac Town Square for $23 million, at Regency's share. On May 21, 2024, the Company sold Star's at Quincy for $42 million, at Regency's share.
Share Repurchases
During the quarter, the Company repurchased approximately 3.3 million shares of Regency stock for $200 million at an average price of $60.48 per share. Following the second quarter repurchase activity, on July 31, 2024, Regency’s Board of Directors authorized a new share repurchase program, which authorizes the repurchase by Regency of up to $250 million of its common stock. The program will remain in place until July 30, 2026 unless earlier modified, extended or terminated in the discretion of the Board. The timing and price of share repurchases, if any, will be dependent upon market conditions and other factors.
Balance Sheet
During the quarter, the Company repaid $250 million of 3.75% senior unsecured notes at maturity in June 2024. In May, S&P Global upgraded Regency's outlook to 'Positive' and affirmed the Company's BBB+ credit rating. As of June 30, 2024, Regency had approximately $1.2 billion of capacity under its revolving credit facility. As of June 30, 2024, Regency’s pro-rata net debt and preferred stock to operating EBITDA _re _was 5.2x, adjusted for the annualized impact of the EBITDA _re _contribution from the acquisition of Urstadt Biddle.
Common and Preferred Dividends
On July 31, 2024, Regency’s Board declared a quarterly cash dividend on the Company’s common stock of $0.67 per share. The dividend is payable on October 3, 2024, to shareholders of record as of September 12, 2024. On July 31, 2024, 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 October 31, 2024, to shareholders of record as of October 16, 2024. On July 31, 2024, 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 October 31, 2024, to shareholders of record as of October 16, 2024.
2024 Guidance
Regency Centers is hereby providing updated 2024 guidance, as summarized in the table below. Please refer to the Company’s second 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 2024 Guidance (in thousands, except per share data) | YTD 2024 | 2024 Guidance | Previous Guidance | | | | | | | Net Income Attributable to Common Shareholders per diluted share | $1.12 | $2.02-$2.06 | $1.96-$2.02 | | | | | | | | | | | | Nareit Funds From Operations (“Nareit FFO”) per diluted share | $2.14 | $4.21-$4.25 | $4.15-$4.21 | | | | | | | | | | | | Core Operating Earnings per diluted share (1) | $2.06 | $4.06-$4.10 | $4.02-$4.08 | | | | | | | | | | | | Same property NOI growth without termination fees | 2.7% | +2.25% to +2.75% | +2.0% to +2.5% | | | | | | | | | | | | Certain non-cash items (2) | $19,642 | +/-$36,000 | +/-$32,000 | | | | | | | | | | | | G&A expense, net (3) | $47,835 | $93,000-$95,000 | $93,000-$95,000 | | | | | | | | | | | | Interest expense, net and Preferred stock dividends (4) | $100,293 | $207,000-$209,000 | $199,000-$201,000 | | | | | | | | | | | | Management, transaction and other fees | $12,662 | +/-$25,000 | +/-$25,000 | | | | | | | | | | | | Development and Redevelopment spend | $92,568 | +/-$200,000 | +/-$180,000 | | | | | | | | | | | | Acquisitions | $45,500 | +/-$81,000 | +/-$46,000 | | Cap rate (weighted average) | 6.6% | +/- 6.5% | +/- 6.5% | | | | | | | | | | | | Dispositions | $94,500 | +/-$125,000 | +/-$125,000 | | Cap rate (weighted average) | 5.8% | +/- 5.5% | +/- 5.5% | | | | | | | | | | | | Share/unit repurchases | $200,000 | $200,000 | $0 | | | | | | | | | | | | Merger-related transition expense | $4,694 | +/-$7,000 | +/-$7,000 | | | | | | | | | | |
Note: With the exception of per share and investment/transaction data, figures above represent 100% of Regency's consolidated entities and its pro-rata share of unconsolidated real estate partnerships.
(1) Core Operating Earnings excludes certain non-cash items, including straight-line rents, above/below market rent amortization, debt and derivative mark-to-market amortization, as well as transaction related income/expenses and debt extinguishment charges.
(2) Includes above and below market rent amortization, straight-line rents, and debt and derivative mark-to-market amortization.
(3) 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.
(4) Net of interest income; excludes debt and derivative mark-to-market amortization, which is included in Certain non-cash items.
Conference Call Information
To discuss Regency’s second quarter results and provide further business updates, management will host a conference call on Friday, August 2 nd at 11:00 a.m. ET. Dial-in and webcast information is below.
Second Quarter 2024 Earnings Conference Call
| Date: | Friday, August 2, 2024 | | Time: | 11:00 a.m. ET | | Dial#: | 877-407-0789 or 201-689-8562 | | Webcast: | Second Quarter 2024 Webcast Link |
Replay: Webcast Archive – Investor Relations page under Events & Webcasts
About 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 June 30, 2024 and 2023 | Three Months Ended | | | Year to Date | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | Reconciliation of Net Income Attributable to Common Shareholders to Nareit FFO: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Income Attributable to Common Shareholders | $ | 99,255 | | | | 86,782 | | | $ | 205,616 | | | | 184,063 | | | Adjustments to reconcile to Nareit Funds From Operations (1) : | | | | | | | | | | | | | | | | | Depreciation and amortization (excluding FF&E) | | 107,592 | | | | 89,505 | | | | 211,964 | | | | 178,540 | | | Gain on sale of real estate, net of tax | | (11,080 | ) | | | (64 | ) | | | (22,488 | ) | | | (305 | ) | | Exchangeable operating partnership units | | 601 | | | | 550 | | | | 1,243 | | | | 970 | | | Nareit Funds From Operations | $ | 196,368 | | | | 176,773 | | | $ | 396,335 | | | | 363,268 | | | | | | | | | | | | | | | | | | | | Nareit FFO per share (diluted) | $ | 1.06 | | | | 1.03 | | | $ | 2.14 | | | | 2.11 | | | Weighted average shares (diluted) | | 184,968 | | | | 172,176 | | | | 185,433 | | | | 172,192 | | | | | | | | | | | | | | | | | | | | Reconciliation of Nareit FFO to Core Operating Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nareit Funds From Operations | $ | 196,368 | | | | 176,773 | | | $ | 396,335 | | | | 363,268 | | | Adjustments to reconcile to Core Operating Earnings (1) : | | | | | | | | | | | | | | | | | Not Comparable Items | | | | | | | | | | | | | | | | | Merger transition costs | | 2,133 | | | | - | | | | 4,694 | | | | - | | | Loss on early extinguishment of debt | | - | | | | - | | | | 180 | | | | - | | | Certain Non-Cash Items | | | | | | | | | | | | | | | | | Straight-line rent | | (5,283 | ) | | | (1,784 | ) | | | (11,021 | ) | | | (4,173 | ) | | Uncollectible straight-line rent | | 1,377 | | | | (1,755 | ) | | | 2,033 | | | | (2,390 | ) | | Above/below market rent amortization, net | | (7,073 | ) | | | (8,554 | ) | | | (12,540 | ) | | | (14,219 | ) | | Debt and derivative mark-to-market amortization | | 1,731 | | | | 8 | | | | 2,640 | | | | — | | | Core Operating Earnings | $ | 189,253 | | | | 164,688 | | | | 382,321 | | | | 342,486 | | | | | | | | | | | | | | | | | | | | Core Operating Earnings per share (diluted) | $ | 1.02 | | | | 0.96 | | | $ | 2.06 | | | | 1.99 | | | Weighted average shares (diluted) | | 184,968 | | | | 172,176 | | | | 185,433 | | | | 172,192 | | | | | | | | | | | | | | | | | | | | Weighted Average Shares For Diluted Earnings per Share | | 183,868 | | | | 171,275 | | | | 184,332 | | | | 171,369 | | | | | | | | | | | | | | | | | | | | Weighted Average Shares For Diluted FFO and Core Operating Earnings per Share | | 184,968 | | | | 172,176 | | | | 185,433 | | | | 172,192 | | | | | | | | | | | | | | | | | | | | Reconciliation of Core Operating Earnings to Adjusted Funds from Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Core Operating Earnings | $ | 189,253 | | | | 164,688 | | | $ | 382,321 | | | | 342,486 | | | Adjustments to reconcile to Adjusted Funds from Operations (1) : | | | | | | | | | | | | | | | | | Operating capital expenditures | | (33,886 | ) | | | (21,086 | ) | | | (54,738 | ) | | | (38,545 | ) | | Debt cost and derivative adjustments | | 2,022 | | | | 1,686 | | | | 4,162 | | | | 1,686 | | | Stock-based compensation | | 4,662 | | | | 4,105 | | | | 9,302 | | | | 4,105 | | | Adjusted Funds from Operations | $ | 162,051 | | | | 149,393 | | | $ | 341,047 | | | | 309,732 | |
(1) Includes Regency's consolidated entities and its pro-rata share of unconsolidated real estate partnerships, net of pro-rata share attributable to noncontrolling interests.
Reconciliation of Net Income Attributable to Common Shareholders to Pro-Rata Same Property NOI - Actual (in thousands)
| For the Periods Ended June 30, 2024 and 2023 | Three Months Ended | | Year to Date | | | | | | | | | | | | 2024 | | 2023 | | | | 2024 | | 2023 | | | | | | | | | | | | | | | | Net income attributable to common shareholders | $99,255 | | 86,782 | | | $205,616 | | 184,063 | | | | | Less: | | | | | | | | | | | | | Management, transaction, and other fees | | (6,735) | | (7,106) | | | | (13,131) | | (13,144) | | | Other (1) | | (12,726) | | (12,799) | | | | (25,313) | | (22,301) | | | Plus: | | | | | | | | | | | | | Depreciation and amortization | | 100,968 | | 83,161 | | | | 198,553 | | 165,868 | | | General and administrative | | 24,238 | | 25,065 | | | | 50,370 | | 50,345 | | | Other operating expense | | 3,066 | | 1,682 | | | | 5,709 | | 1,185 | | | Other expense, net | | 31,394 | | 35,133 | | | | 60,608 | | 69,549 | | | Equity in income of investments in real estate partnerships excluded from NOI (2) | | 13,258 | | 11,813 | | | | 26,947 | | 23,598 | | | Net income attributable to noncontrolling interests | | 2,261 | | 1,390 | | | | 5,145 | | 2,597 | | | Preferred stock dividends | | 3,413 | | - | | | | 6,826 | | - | | | NOI | | 258,392 | | 225,121 | | | | 521,330 | | 461,760 | | | | | | | | | | | | | | | | Less non-same property NOI (3) | | (26,474) | | 135 | | | | (53,965) | | (975) | | | | | | | | | | | | | | | | Same Property NOI | $231,918 | | 225,256 | | | $467,365 | | 460,785 | | | | | % change | | 3.0 % | | | | | 1.4 % | | | | | | | | | | | | | | | | | | | Same Property NOI without Termination Fees | $230,732 | | 224,570 | | | $464,808 | | 455,382 | | | | | % change | | 2.7 % | | | | | 2.1 % | | | | | | | | | | | | | | | | | | | Same Property NOI without Termination Fees or Redevelopments | $195,551 | | 192,019 | | | $394,414 | | 388,496 | | | | | % change | | 1.8 % | | | | | 1.5 % | | | | | | | | | | | | | | | | | | | Same Property NOI without Termination Fees or Collection of 2020/2021 Reserves | $230,732 | | 223,404 | | | $464,808 | | 452,696 | | | | | % change | | 3.3 % | | | | | 2.7 % | | | | |
(1) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interests.
(2) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, such as, but not limited to, straight-line rental income, above and below market rent amortization, depreciation and amortization, interest expense, and real estate gains and impairments.
(3) Includes revenues and expenses attributable to Non-Same Property, Projects in Development, corporate activities, and noncontrolling interests.
Same Property NOI is a key non-GAAP measure used by management in evaluating the operating performance of Regency’s properties. The Company provides a reconciliation of Net Income Attributable to Common Shareholders to pro-rata Same Property NOI.
Reported results are preliminary and not final until the filing of the Company’s Form 10-Q with the SEC and, therefore, remain subject to adjustment.
The Company has published forward-looking statements and additional financial information in its second quarter 2024 supplemental package that may help investors estimate earnings. A copy of the Company’s second quarter 2024 supplemental package will be available on the Company's website at investors.regencycenters.com or by written request to: Investor Relations, Regency Centers Corporation, One Independent Drive, Suite 114, Jacksonville, Florida, 32202. The supplemental package contains more detailed financial and property results including financial statements, an outstanding debt summary, acquisition and development activity, investments in partnerships, information pertaining to securities issued other than common stock, property details, a significant tenant rent report and a lease expiration table in addition to earnings and valuation guidance assumptions. The information provided in the supplemental package is unaudited and includes non-GAAP measures, and there can be no assurance that the information will not vary from the final information in the Company’s Form 10-Q for the period ended June 30, 2024. Regency may, but assumes no obligation to, update information in the supplemental package from time to time.