x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FLORIDA (REGENCY CENTERS CORPORATION) | 59-3191743 | |
DELAWARE (REGENCY CENTERS, L.P) | 59-3429602 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Independent Drive, Suite 114 Jacksonville, Florida 32202 | (904) 598-7000 | |
(Address of principal executive offices) (zip code) | (Registrant's telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o | Emerging growth company | o |
Non-accelerated filer | o | Smaller reporting company | o |
Large accelerated filer | o | Accelerated filer | x | Emerging growth company | o |
Non-accelerated filer | o | Smaller reporting company | o |
Form 10-Q Report Page | ||
PART I - FINANCIAL INFORMATION | ||
Item 1. | Financial Statements (Unaudited) | |
Regency Centers Corporation: | ||
Consolidated Balance Sheets as of | ||
Consolidated Statements of Operations for the periods ended | ||
Consolidated Statements of Comprehensive Income for the periods ended | ||
Consolidated Statements of Equity for the periods ended | ||
Consolidated Statements of Cash Flows for the periods ended | ||
Regency Centers, L.P.: | ||
Consolidated Balance Sheets as of | ||
Consolidated Statements of Operations for the periods ended | ||
Consolidated Statements of Comprehensive Income for the periods ended | ||
Consolidated Statements of Capital for the periods ended | ||
Consolidated Statements of Cash Flows for the periods ended | ||
Notes to Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. | Controls and Procedures | |
PART II - OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
SIGNATURES | ||
2018 | 2017 | 2018 | 2017 | |||||||||
Assets | (unaudited) | (unaudited) | ||||||||||
Real estate investments at cost: | ||||||||||||
Land, building and improvements | $ | 10,752,552 | 10,578,430 | $ | 10,854,283 | 10,578,430 | ||||||
Properties in development | 164,001 | 314,391 | 36,707 | 314,391 | ||||||||
10,916,553 | 10,892,821 | 10,890,990 | 10,892,821 | |||||||||
Less: accumulated depreciation | 1,433,120 | 1,339,771 | 1,474,769 | 1,339,771 | ||||||||
9,483,433 | 9,553,050 | 9,416,221 | 9,553,050 | |||||||||
Investments in real estate partnerships | 451,220 | 386,304 | 458,051 | 386,304 | ||||||||
Net real estate investments | 9,934,653 | 9,939,354 | 9,874,272 | 9,939,354 | ||||||||
Properties held for sale | 102,163 | — | 51,892 | — | ||||||||
Cash and cash equivalents | 37,151 | 45,370 | 40,365 | 45,370 | ||||||||
Restricted cash | 6,089 | 4,011 | 4,121 | 4,011 | ||||||||
Tenant and other receivables, net of allowance for doubtful accounts and straight-line rent reserves of $14,790 and $12,728 at June 30, 2018 and December 31, 2017, respectively | 155,540 | 170,985 | ||||||||||
Deferred leasing costs, less accumulated amortization of $97,107 and $93,291 at June 30, 2018 and December 31, 2017, respectively | 83,686 | 80,044 | ||||||||||
Acquired lease intangible assets, less accumulated amortization of $188,246 and $148,280 at June 30, 2018 and December 31, 2017, respectively | 432,951 | 478,826 | ||||||||||
Tenant and other receivables, net of uncollectible reserves of $14,332 and $12,728 at September 30, 2018 and December 31, 2017, respectively | 160,709 | 170,985 | ||||||||||
Deferred leasing costs, less accumulated amortization of $98,829 and $93,291 at September 30, 2018 and December 31, 2017, respectively | 85,292 | 80,044 | ||||||||||
Acquired lease intangible assets, less accumulated amortization of $206,378 and $148,280 at September 30, 2018 and December 31, 2017, respectively | 412,653 | 478,826 | ||||||||||
Other assets | 429,497 | 427,127 | 427,726 | 427,127 | ||||||||
Total assets | $ | 11,181,730 | 11,145,717 | $ | 11,057,030 | 11,145,717 | ||||||
Liabilities and Equity | ||||||||||||
Liabilities: | ||||||||||||
Notes payable | $ | 3,118,002 | 2,971,715 | $ | 3,008,592 | 2,971,715 | ||||||
Unsecured credit facilities | 713,498 | 623,262 | 708,616 | 623,262 | ||||||||
Accounts payable and other liabilities | 215,300 | 234,272 | 236,250 | 234,272 | ||||||||
Acquired lease intangible liabilities, less accumulated amortization of $75,179 and $56,550 at June 30, 2018 and December 31, 2017, respectively | 517,018 | 537,401 | ||||||||||
Acquired lease intangible liabilities, less accumulated amortization of $84,435 and $56,550 at September 30, 2018 and December 31, 2017, respectively | 507,341 | 537,401 | ||||||||||
Tenants’ security, escrow deposits and prepaid rent | 49,124 | 46,013 | 43,988 | 46,013 | ||||||||
Total liabilities | 4,612,942 | 4,412,663 | 4,504,787 | 4,412,663 | ||||||||
Commitments and contingencies | — | — | — | — | ||||||||
Equity: | ||||||||||||
Stockholders’ equity: | ||||||||||||
Common stock, $0.01 par value per share, 220,000,000 shares authorized; 169,435,301 and 171,364,908 shares issued at June 30, 2018 and December 31, 2017, respectively | 1,694 | 1,714 | ||||||||||
Treasury stock at cost, 381,258 and 366,628 shares held at June 30, 2018 and December 31, 2017, respectively | (19,268 | ) | (18,307 | ) | ||||||||
Common stock, $0.01 par value per share, 220,000,000 shares authorized; 169,441,714 and 171,364,908 shares issued at September 30, 2018 and December 31, 2017, respectively | 1,694 | 1,714 | ||||||||||
Treasury stock at cost, 385,652 and 366,628 shares held at September 30, 2018 and December 31, 2017, respectively | (19,550 | ) | (18,307 | ) | ||||||||
Additional paid in capital | 7,751,375 | 7,873,104 | 7,756,215 | 7,873,104 | ||||||||
Accumulated other comprehensive income (loss) | 10,317 | (6,289 | ) | 14,066 | (6,289 | ) | ||||||
Distributions in excess of net income | (1,216,018 | ) | (1,158,170 | ) | (1,240,331 | ) | (1,158,170 | ) | ||||
Total stockholders’ equity | 6,528,100 | 6,692,052 | 6,512,094 | 6,692,052 | ||||||||
Noncontrolling interests: | ||||||||||||
Exchangeable operating partnership units, aggregate redemption value of $21,722 and $24,206 at June 30, 2018 and December 31, 2017, respectively | 10,765 | 10,907 | ||||||||||
Exchangeable operating partnership units, aggregate redemption value of $22,628 and $24,206 at September 30, 2018 and December 31, 2017, respectively | 10,726 | 10,907 | ||||||||||
Limited partners’ interests in consolidated partnerships | 29,923 | 30,095 | 29,423 | 30,095 | ||||||||
Total noncontrolling interests | 40,688 | 41,002 | 40,149 | 41,002 | ||||||||
Total equity | 6,568,788 | 6,733,054 | 6,552,243 | 6,733,054 | ||||||||
Total liabilities and equity | $ | 11,181,730 | 11,145,717 | $ | 11,057,030 | 11,145,717 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Minimum rent | $ | 208,827 | 195,992 | $ | 410,219 | 337,232 | $ | 204,005 | 195,393 | $ | 614,224 | 532,625 | ||||||||||||
Percentage rent | 1,196 | 1,456 | 5,068 | 4,362 | 1,224 | 1,147 | 6,292 | 5,509 | ||||||||||||||||
Recoveries from tenants and other income | 64,502 | 57,256 | 128,773 | 102,535 | 66,127 | 59,554 | 194,900 | 162,089 | ||||||||||||||||
Management, transaction, and other fees | 6,887 | 6,601 | 14,045 | 13,307 | 6,954 | 6,047 | 20,999 | 19,353 | ||||||||||||||||
Total revenues | 281,412 | 261,305 | 558,105 | 457,436 | 278,310 | 262,141 | 836,415 | 719,576 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Depreciation and amortization | 89,105 | 92,230 | 177,629 | 152,284 | 89,183 | 91,474 | 266,812 | 243,757 | ||||||||||||||||
Operating and maintenance | 41,851 | 36,105 | 84,367 | 65,868 | 40,557 | 38,020 | 124,924 | 103,888 | ||||||||||||||||
General and administrative | 16,776 | 16,746 | 34,382 | 34,419 | 17,564 | 15,199 | 51,947 | 49,618 | ||||||||||||||||
Real estate taxes | 31,541 | 28,871 | 61,967 | 50,321 | 35,129 | 29,315 | 97,096 | 79,636 | ||||||||||||||||
Other operating expenses (note 2) | 2,799 | 6,862 | 4,432 | 78,425 | 2,045 | 3,195 | 6,476 | 81,621 | ||||||||||||||||
Total operating expenses | 182,072 | 180,814 | 362,777 | 381,317 | 184,478 | 177,203 | 547,255 | 558,520 | ||||||||||||||||
Other expense (income): | ||||||||||||||||||||||||
Interest expense, net | 38,074 | 35,407 | 74,859 | 62,606 | 36,618 | 34,679 | 111,477 | 97,285 | ||||||||||||||||
Provision for impairment, net of tax | 12,533 | — | 28,587 | — | 855 | — | 29,443 | — | ||||||||||||||||
Early extinguishment of debt | 11,010 | 12,404 | 11,172 | 12,404 | — | — | 11,172 | 12,404 | ||||||||||||||||
Net investment (income) loss, including unrealized (gains) losses of ($291) and ($11), and $84 and ($863) for the three and six months ended June 30, 2018 and 2017, respectively | (569 | ) | (887 | ) | (602 | ) | (1,984 | ) | ||||||||||||||||
Net investment (income) loss, including unrealized (gains) losses of ($484) and ($400), and ($842) and ($1,705) for the three and nine months ended September 30, 2018 and 2017, respectively | (923 | ) | (971 | ) | (1,524 | ) | (2,955 | ) | ||||||||||||||||
Total other expense (income) | 61,048 | 46,924 | 114,016 | 73,026 | 36,550 | 33,708 | 150,568 | 106,734 | ||||||||||||||||
Income from operations before equity in income of investments in real estate partnerships | 38,292 | 33,567 | 81,312 | 3,093 | 57,282 | 51,230 | 138,592 | 54,322 | ||||||||||||||||
Equity in income of investments in real estate partnerships | 9,174 | 12,240 | 19,523 | 21,583 | 10,024 | 12,221 | 29,548 | 33,804 | ||||||||||||||||
Income from operations | 47,466 | 45,807 | 100,835 | 24,676 | 67,306 | 63,451 | 168,140 | 88,126 | ||||||||||||||||
Gain on sale of real estate, net of tax | 1,123 | 4,366 | 1,219 | 4,781 | 3,228 | 131 | 4,448 | 4,913 | ||||||||||||||||
Net income | 48,589 | 50,173 | 102,054 | 29,457 | 70,534 | 63,582 | 172,588 | 93,039 | ||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||||||
Exchangeable operating partnership units | (100 | ) | (104 | ) | (212 | ) | (85 | ) | (147 | ) | (132 | ) | (358 | ) | (217 | ) | ||||||||
Limited partners’ interests in consolidated partnerships | (648 | ) | (576 | ) | (1,342 | ) | (1,247 | ) | (665 | ) | (637 | ) | (2,008 | ) | (1,884 | ) | ||||||||
Income attributable to noncontrolling interests | (748 | ) | (680 | ) | (1,554 | ) | (1,332 | ) | (812 | ) | (769 | ) | (2,366 | ) | (2,101 | ) | ||||||||
Net income attributable to the Company | 47,841 | 49,493 | 100,500 | 28,125 | 69,722 | 62,813 | 170,222 | 90,938 | ||||||||||||||||
Preferred stock dividends and issuance costs | — | (1,125 | ) | — | (12,981 | ) | — | (3,147 | ) | — | (16,128 | ) | ||||||||||||
Net income attributable to common stockholders | $ | 47,841 | 48,368 | $ | 100,500 | 15,144 | $ | 69,722 | 59,666 | $ | 170,222 | 74,810 | ||||||||||||
Income per common share - basic | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||
Income per common share - diluted | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net income | $ | 48,589 | 50,173 | $ | 102,054 | 29,457 | $ | 70,534 | 63,582 | $ | 172,588 | 93,039 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Effective portion of change in fair value of derivative instruments: | ||||||||||||||||||||||||
Effective portion of change in fair value of derivative instruments | 4,289 | (3,805 | ) | 13,794 | (3,873 | ) | 2,717 | (39 | ) | 16,511 | (3,911 | ) | ||||||||||||
Reclassification adjustment of derivative instruments included in net income | 1,415 | 3,071 | 3,553 | 5,726 | 1,148 | 2,329 | 4,701 | 8,054 | ||||||||||||||||
Unrealized gain (loss) on available-for-sale debt securities | 44 | 11 | (75 | ) | 43 | 24 | 8 | (51 | ) | 51 | ||||||||||||||
Other comprehensive income (loss) | 5,748 | (723 | ) | 17,272 | 1,896 | |||||||||||||||||||
Other comprehensive income | 3,889 | 2,298 | 21,161 | 4,194 | ||||||||||||||||||||
Comprehensive income | 54,337 | 49,450 | 119,326 | 31,353 | 74,423 | 65,880 | 193,749 | 97,233 | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests: | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 748 | 680 | 1,554 | 1,332 | 812 | 769 | 2,366 | 2,101 | ||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 195 | (80 | ) | 678 | (15 | ) | 140 | 5 | 818 | (11 | ) | |||||||||||||
Comprehensive income attributable to noncontrolling interests | 943 | 600 | 2,232 | 1,317 | 952 | 774 | 3,184 | 2,090 | ||||||||||||||||
Comprehensive income attributable to the Company | $ | 53,394 | 48,850 | $ | 117,094 | 30,036 | $ | 73,471 | 65,106 | $ | 190,565 | 95,143 |
REGENCY CENTERS CORPORATION Consolidated Statements of Equity For the six months ended June 30, 2018 and 2017 (in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGENCY CENTERS CORPORATION Consolidated Statements of Equity For the nine months ended September 30, 2018 and 2017 (in thousands, except per share data) (unaudited) | REGENCY CENTERS CORPORATION Consolidated Statements of Equity For the nine months ended September 30, 2018 and 2017 (in thousands, except per share data) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Distributions in Excess of Net Income | Total Stockholders’ Equity | Exchangeable Operating Partnership Units | Limited Partners’ Interest in Consolidated Partnerships | Total Noncontrolling Interests | Total Equity | Preferred Stock | Common Stock | Treasury Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Distributions in Excess of Net Income | Total Stockholders’ Equity | Exchangeable Operating Partnership Units | Limited Partners’ Interest in Consolidated Partnerships | Total Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 325,000 | 1,045 | (17,062 | ) | 3,294,923 | (18,346 | ) | (994,259 | ) | 2,591,301 | (1,967 | ) | 35,168 | 33,201 | 2,624,502 | $ | 325,000 | 1,045 | (17,062 | ) | 3,294,923 | (18,346 | ) | (994,259 | ) | 2,591,301 | (1,967 | ) | 35,168 | 33,201 | 2,624,502 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 28,125 | 28,125 | 85 | 1,247 | 1,332 | 29,457 | — | — | — | — | — | 90,938 | 90,938 | 217 | 1,884 | 2,101 | 93,039 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 1,911 | — | 1,911 | 1 | (16 | ) | (15 | ) | 1,896 | — | — | — | — | 4,205 | — | 4,205 | 6 | (17 | ) | (11 | ) | 4,194 | ||||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan, net | — | — | (1,043 | ) | 1,044 | — | — | 1 | — | — | — | 1 | — | — | (986 | ) | 977 | — | — | (9 | ) | — | — | — | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock issued, net of amortization | — | 2 | — | 7,169 | — | — | 7,171 | — | — | — | 7,171 | — | 2 | — | 10,918 | — | — | 10,920 | — | — | — | 10,920 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock redeemed for taxes withheld for stock based compensation, net | — | (1 | ) | — | (18,332 | ) | — | — | (18,333 | ) | — | — | — | (18,333 | ) | — | (1 | ) | — | (18,431 | ) | — | — | (18,432 | ) | — | — | — | (18,432 | ) | ||||||||||||||||||||||||||||||||||||||
Common stock issued under dividend reinvestment plan | — | — | — | 607 | — | — | 607 | — | — | — | 607 | — | — | — | 908 | — | — | 908 | — | — | — | 908 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued, net of issuance costs | — | 654 | — | 4,470,816 | — | — | 4,471,470 | — | — | — | 4,471,470 | — | 654 | — | 4,470,759 | — | — | 4,471,413 | — | — | — | 4,471,413 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock issued upon Equity One merger | — | 1 | — | 7,950 | — | — | 7,951 | — | — | — | 7,951 | — | 1 | — | 7,950 | — | — | 7,951 | — | — | — | 7,951 | ||||||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | (250,000 | ) | — | — | 8,614 | — | (8,614 | ) | (250,000 | ) | — | — | — | (250,000 | ) | (325,000 | ) | — | — | 11,099 | — | (11,099 | ) | (325,000 | ) | — | — | — | (325,000 | ) | ||||||||||||||||||||||||||||||||||||||
Contributions from partners | — | — | — | — | — | — | — | 13,100 | 341 | 13,441 | 13,441 | — | — | — | — | — | — | — | 13,100 | 367 | 13,467 | 13,467 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to partners | — | — | — | — | — | — | — | — | (5,946 | ) | (5,946 | ) | (5,946 | ) | — | — | — | — | — | — | — | — | (7,086 | ) | (7,086 | ) | (7,086 | ) | ||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | (4,367 | ) | (4,367 | ) | — | — | — | (4,367 | ) | — | — | — | — | — | (5,029 | ) | (5,029 | ) | — | — | — | (5,029 | ) | ||||||||||||||||||||||||||||||||||||||||
Common stock/unit ($1.04 per share) | — | — | — | — | — | (143,551 | ) | (143,551 | ) | (264 | ) | — | (264 | ) | (143,815 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | $ | 75,000 | 1,701 | (18,105 | ) | 7,772,791 | (16,435 | ) | (1,122,666 | ) | 6,692,286 | 10,955 | 30,794 | 41,749 | 6,734,035 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock/unit ($1.57 per share) | — | — | — | — | — | (233,704 | ) | (233,704 | ) | (450 | ) | — | (450 | ) | (234,154 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | — | 1,701 | (18,048 | ) | 7,779,103 | (14,141 | ) | (1,153,153 | ) | 6,595,462 | 10,906 | 30,316 | 41,222 | 6,636,684 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | — | 1,714 | (18,307 | ) | 7,873,104 | (6,289 | ) | (1,158,170 | ) | 6,692,052 | 10,907 | 30,095 | 41,002 | 6,733,054 | $ | — | 1,714 | (18,307 | ) | 7,873,104 | (6,289 | ) | (1,158,170 | ) | 6,692,052 | 10,907 | 30,095 | 41,002 | 6,733,054 | ||||||||||||||||||||||||||||||||||||||
Adjustment due to change in accounting policy (note 1) | — | — | — | — | 12 | 30,889 | 30,901 | — | 2 | 2 | 30,903 | — | — | — | — | 12 | 30,889 | 30,901 | — | 2 | 2 | 30,903 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted balance at December 31, 2017 | — | 1,714 | (18,307 | ) | 7,873,104 | (6,277 | ) | (1,127,281 | ) | 6,722,953 | 10,907 | 30,097 | 41,004 | 6,763,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2018 | — | 1,714 | (18,307 | ) | 7,873,104 | (6,277 | ) | (1,127,281 | ) | 6,722,953 | 10,907 | 30,097 | 41,004 | 6,763,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 100,500 | 100,500 | 212 | 1,342 | 1,554 | 102,054 | — | — | — | — | — | 170,222 | 170,222 | 358 | 2,008 | 2,366 | 172,588 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 16,594 | — | 16,594 | 35 | 643 | 678 | 17,272 | — | — | — | — | 20,343 | — | 20,343 | 43 | 775 | 818 | 21,161 | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan, net | — | — | (961 | ) | 957 | — | — | (4 | ) | — | — | — | (4 | ) | — | — | (1,243 | ) | 1,229 | — | — | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||||||||||||||||||||||||||
Restricted stock issued, net of amortization | — | 1 | — | 8,134 | — | — | 8,135 | — | — | — | 8,135 | — | 1 | — | 12,307 | — | — | 12,308 | — | — | — | 12,308 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock redeemed for taxes withheld for stock based compensation, net | — | — | — | (6,540 | ) | — | — | (6,540 | ) | — | — | — | (6,540 | ) | — | — | — | (6,463 | ) | — | — | (6,463 | ) | — | — | — | (6,463 | ) | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired | — | (21 | ) | — | (124,968 | ) | — | — | (124,989 | ) | — | — | — | (124,989 | ) | — | (21 | ) | — | (124,968 | ) | — | — | (124,989 | ) | — | — | — | (124,989 | ) | ||||||||||||||||||||||||||||||||||||||
Common stock issued under dividend reinvestment plan | — | — | — | 678 | — | — | 678 | — | — | — | 678 | — | — | — | 996 | — | — | 996 | — | — | — | 996 | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued, net of issuance costs | — | — | — | 10 | — | — | 10 | — | — | — | 10 | — | — | — | 10 | — | — | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to partners | — | — | — | — | — | — | — | — | (2,159 | ) | (2,159 | ) | (2,159 | ) | — | — | — | — | — | — | — | — | (3,457 | ) | (3,457 | ) | (3,457 | ) | ||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock/unit ($1.11 per share) | — | — | — | — | — | (189,237 | ) | (189,237 | ) | (389 | ) | — | (389 | ) | (189,626 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | — | 1,694 | (19,268 | ) | 7,751,375 | 10,317 | (1,216,018 | ) | 6,528,100 | 10,765 | 29,923 | 40,688 | 6,568,788 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock/unit ($1.665 per share) | — | — | — | — | — | (283,272 | ) | (283,272 | ) | (582 | ) | — | (582 | ) | (283,854 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | — | 1,694 | (19,550 | ) | 7,756,215 | 14,066 | (1,240,331 | ) | 6,512,094 | 10,726 | 29,423 | 40,149 | 6,552,243 |
2018 | 2017 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 102,054 | 29,457 | $ | 172,588 | 93,039 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 177,629 | 152,284 | 266,812 | 243,757 | ||||||||
Amortization of deferred loan costs and debt premiums | 4,999 | 4,769 | 7,599 | 7,144 | ||||||||
(Accretion) and amortization of above and below market lease intangibles, net | (19,326 | ) | (11,683 | ) | (26,031 | ) | (18,784 | ) | ||||
Stock-based compensation, net of capitalization | 6,574 | 13,826 | 10,012 | 16,836 | ||||||||
Equity in income of investments in real estate partnerships | (19,523 | ) | (21,583 | ) | (29,548 | ) | (33,804 | ) | ||||
Gain on sale of real estate, net of tax | (1,219 | ) | (4,781 | ) | (4,448 | ) | (4,913 | ) | ||||
Provision for impairment | 28,587 | — | ||||||||||
Provision for impairment, net of tax | 29,443 | — | ||||||||||
Early extinguishment of debt | 11,172 | 12,404 | 11,172 | 12,404 | ||||||||
Distribution of earnings from operations of investments in real estate partnerships | 26,711 | 26,271 | 40,366 | 40,817 | ||||||||
Loss on derivative instruments | — | 51 | ||||||||||
Deferred compensation expense | 544 | 1,948 | 1,475 | 2,885 | ||||||||
Realized and unrealized gain on investments | (530 | ) | (1,951 | ) | (1,524 | ) | (2,878 | ) | ||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable, net | 6,023 | 10,639 | ||||||||||
Straight-line rent receivables, net | (9,825 | ) | (8,887 | ) | ||||||||
Tenant and other receivables, net | (13,326 | ) | (11,327 | ) | ||||||||
Deferred leasing costs | (3,404 | ) | (6,701 | ) | (6,259 | ) | (10,294 | ) | ||||
Other assets | (6,174 | ) | 3,617 | (6,565 | ) | 8,075 | ||||||
Accounts payable and other liabilities | (6,052 | ) | (23,850 | ) | 15,100 | 4,908 | ||||||
Tenants’ security and escrow deposits and prepaid rent | 2,666 | 1,291 | ||||||||||
Tenants’ security, escrow deposits and prepaid rent | (2,111 | ) | (2,490 | ) | ||||||||
Net cash provided by operating activities | 300,906 | 177,070 | 464,755 | 345,426 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of operating real estate | (85,766 | ) | (345 | ) | (85,766 | ) | (2,109 | ) | ||||
Advance deposits paid on acquisition of operating real estate | (2,025 | ) | (100 | ) | (150 | ) | (350 | ) | ||||
Acquisition of Equity One, net of cash and restricted cash acquired of $72,784 | — | (646,984 | ) | |||||||||
Acquisition of Equity One, net of cash and restricted cash acquired of $74,507 | — | (646,790 | ) | |||||||||
Real estate development and capital improvements | (120,579 | ) | (159,889 | ) | (174,145 | ) | (240,827 | ) | ||||
Proceeds from sale of real estate investments | 42,508 | 13,270 | 151,142 | 13,323 | ||||||||
Proceeds from (issuance of) notes receivable | 15,648 | (2,837 | ) | 15,648 | (3,460 | ) | ||||||
Investments in real estate partnerships | (45,451 | ) | (3,064 | ) | (58,372 | ) | (12,296 | ) | ||||
Distributions received from investments in real estate partnerships | 2,328 | 30,612 | 5,488 | 36,603 | ||||||||
Dividends on investment securities | 176 | 128 | 281 | 200 | ||||||||
Acquisition of securities | (11,726 | ) | (9,853 | ) | ||||||||
Proceeds from sale of securities | 10,976 | 10,877 | ||||||||||
Acquisition of investment securities | (16,946 | ) | (14,011 | ) | ||||||||
Proceeds from sale of investment securities | 15,639 | 11,974 | ||||||||||
Net cash used in investing activities | (193,911 | ) | (768,185 | ) | (147,181 | ) | (857,743 | ) | ||||
Cash flows from financing activities: | ||||||||||||
Repurchase of common shares in conjunction with equity award plans | (6,755 | ) | (18,998 | ) | (6,772 | ) | (19,251 | ) | ||||
Common shares repurchased through share repurchase program | (124,989 | ) | — | (124,989 | ) | — | ||||||
Proceeds from sale of treasury stock | 99 | 76 | 99 | 100 | ||||||||
Redemption of preferred stock and partnership units | — | (250,000 | ) | — | (325,000 | ) | ||||||
Distributions to limited partners in consolidated partnerships, net | (2,159 | ) | (5,891 | ) | (3,457 | ) | (7,031 | ) | ||||
Distributions to exchangeable operating partnership unit holders | (389 | ) | (264 | ) | (582 | ) | (450 | ) | ||||
Dividends paid to common stockholders | (188,559 | ) | (142,944 | ) | (282,276 | ) | (232,796 | ) | ||||
Dividends paid to preferred stockholders | — | (4,366 | ) | — | (5,029 | ) | ||||||
Repayment of fixed rate unsecured notes | (150,000 | ) | — | (150,000 | ) | — | ||||||
Proceeds from issuance of fixed rate unsecured notes, net | 299,511 | 953,115 | 299,511 | 953,115 | ||||||||
Proceeds from unsecured credit facilities | 400,000 | 905,000 | 455,000 | 950,000 | ||||||||
Repayment of unsecured credit facilities | (310,000 | ) | (620,000 | ) | (370,000 | ) | (650,000 | ) | ||||
Proceeds from notes payable | 1,740 | 124,088 | 1,740 | 126,999 | ||||||||
Repayment of notes payable | (6,199 | ) | (232,839 | ) | (113,037 | ) | (232,839 | ) | ||||
Scheduled principal payments | (5,513 | ) | (4,789 | ) | (7,767 | ) | (7,452 | ) | ||||
Payment of loan costs | (9,432 | ) | (11,832 | ) | (9,448 | ) | (12,868 | ) | ||||
Early redemption costs | (10,491 | ) | (12,419 | ) | (10,491 | ) | (12,419 | ) | ||||
Net cash (used in) provided by financing activities | (113,136 | ) | 677,937 | (322,469 | ) | 525,079 | ||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (6,141 | ) | 86,822 | (4,895 | ) | 12,762 | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 49,381 | 17,879 | 49,381 | 17,879 | ||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 43,240 | 104,701 | $ | 44,486 | 30,641 |
2018 | 2017 | 2018 | 2017 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid for interest (net of capitalized interest of $4,150 and $3,290 in 2018 and 2017, respectively) | $ | 66,692 | 43,643 | |||||||||
Cash paid (received) for income taxes | $ | 290 | (899 | ) | ||||||||
Cash paid for interest (net of capitalized interest of $5,820 and $5,778 in 2018 and 2017, respectively) | $ | 104,210 | 73,273 | |||||||||
Cash paid (received) for income taxes, net | $ | 4,771 | (670 | ) | ||||||||
Supplemental disclosure of non-cash transactions: | ||||||||||||
Exchangeable operating partnership units issued for acquisition of real estate | $ | — | 13,100 | $ | — | 13,100 | ||||||
Mortgage loans assumed for the acquisition of real estate | $ | 9,700 | — | $ | 9,700 | — | ||||||
Real estate under capital lease obligation | $ | — | 6,000 | |||||||||
Common stock issued under dividend reinvestment plan | $ | 678 | 607 | $ | 996 | 908 | ||||||
Stock-based compensation capitalized | $ | 1,777 | 1,624 | $ | 2,606 | 2,459 | ||||||
Contributions from limited partners in consolidated partnerships, net | $ | — | 286 | $ | — | 311 | ||||||
Common stock issued for dividend reinvestment in trust | $ | 415 | 366 | $ | 627 | 557 | ||||||
Contribution of stock awards into trust | $ | 1,174 | 1,372 | $ | 1,244 | 1,372 | ||||||
Distribution of stock held in trust | $ | 524 | 640 | $ | 524 | 677 | ||||||
Change in fair value of debt securities available-for-sale | $ | (89 | ) | 43 | $ | 5 | 51 | |||||
Equity One Merger: | ||||||||||||
Notes payable assumed in Equity One merger, at fair value | $ | — | 757,399 | $ | — | 757,399 | ||||||
Common stock exchanged for Equity One shares | $ | — | 4,471,808 | $ | — | 4,471,808 |
2018 | 2017 | 2018 | 2017 | |||||||||
Assets | (unaudited) | (unaudited) | ||||||||||
Real estate investments at cost: | ||||||||||||
Land, building and improvements | $ | 10,752,552 | 10,578,430 | $ | 10,854,283 | 10,578,430 | ||||||
Properties in development | 164,001 | 314,391 | 36,707 | 314,391 | ||||||||
10,916,553 | 10,892,821 | 10,890,990 | 10,892,821 | |||||||||
Less: accumulated depreciation | 1,433,120 | 1,339,771 | 1,474,769 | 1,339,771 | ||||||||
9,483,433 | 9,553,050 | 9,416,221 | 9,553,050 | |||||||||
Investments in real estate partnerships | 451,220 | 386,304 | 458,051 | 386,304 | ||||||||
Net real estate investments | 9,934,653 | 9,939,354 | 9,874,272 | 9,939,354 | ||||||||
Properties held for sale | 102,163 | — | 51,892 | — | ||||||||
Cash and cash equivalents | 37,151 | 45,370 | 40,365 | 45,370 | ||||||||
Restricted cash | 6,089 | 4,011 | 4,121 | 4,011 | ||||||||
Tenant and other receivables, net of allowance for doubtful accounts and straight-line rent reserves of $14,790 and $12,728 at June 30, 2018 and December 31, 2017, respectively | 155,540 | 170,985 | ||||||||||
Deferred leasing costs, less accumulated amortization of $97,107 and $93,291 at June 30, 2018 and December 31, 2017, respectively | 83,686 | 80,044 | ||||||||||
Acquired lease intangible assets, less accumulated amortization of $188,246 and $148,280 at June 30, 2018 and December 31, 2017, respectively | 432,951 | 478,826 | ||||||||||
Tenant and other receivables, net of uncollectible reserves of $14,332 and $12,728 at September 30, 2018 and December 31, 2017, respectively | 160,709 | 170,985 | ||||||||||
Deferred leasing costs, less accumulated amortization of $98,829 and $93,291 at September 30, 2018 and December 31, 2017, respectively | 85,292 | 80,044 | ||||||||||
Acquired lease intangible assets, less accumulated amortization of $206,378 and $148,280 at September 30, 2018 and December 31, 2017, respectively | 412,653 | 478,826 | ||||||||||
Other assets | 429,497 | 427,127 | 427,726 | 427,127 | ||||||||
Total assets | $ | 11,181,730 | 11,145,717 | $ | 11,057,030 | 11,145,717 | ||||||
Liabilities and Capital | ||||||||||||
Liabilities: | ||||||||||||
Notes payable | $ | 3,118,002 | 2,971,715 | $ | 3,008,592 | 2,971,715 | ||||||
Unsecured credit facilities | 713,498 | 623,262 | 708,616 | 623,262 | ||||||||
Accounts payable and other liabilities | 215,300 | 234,272 | 236,250 | 234,272 | ||||||||
Acquired lease intangible liabilities, less accumulated amortization of $75,179 and $56,550 at June 30, 2018 and December 31, 2017, respectively | 517,018 | 537,401 | ||||||||||
Acquired lease intangible liabilities, less accumulated amortization of $84,435 and $56,550 at September 30, 2018 and December 31, 2017, respectively | 507,341 | 537,401 | ||||||||||
Tenants’ security, escrow deposits and prepaid rent | 49,124 | 46,013 | 43,988 | 46,013 | ||||||||
Total liabilities | 4,612,942 | 4,412,663 | 4,504,787 | 4,412,663 | ||||||||
Commitments and contingencies | — | — | — | — | ||||||||
Capital: | ||||||||||||
Partners’ capital: | ||||||||||||
General partner; 169,435,301 and 171,364,908 units outstanding at June 30, 2018 and December 31, 2017, respectively | 6,517,783 | 6,698,341 | ||||||||||
Limited partners; 349,902 units outstanding at June 30, 2018 and December 31, 2017 | 10,765 | 10,907 | ||||||||||
General partner; 169,441,714 and 171,364,908 units outstanding at September 30, 2018 and December 31, 2017, respectively | 6,498,028 | 6,698,341 | ||||||||||
Limited partners; 349,902 units outstanding at September 30, 2018 and December 31, 2017 | 10,726 | 10,907 | ||||||||||
Accumulated other comprehensive income (loss) | 10,317 | (6,289 | ) | 14,066 | (6,289 | ) | ||||||
Total partners’ capital | 6,538,865 | 6,702,959 | 6,522,820 | 6,702,959 | ||||||||
Noncontrolling interests: | ||||||||||||
Limited partners’ interests in consolidated partnerships | 29,923 | 30,095 | ||||||||||
Total noncontrolling interests | 29,923 | 30,095 | ||||||||||
Noncontrolling interest: Limited partners’ interests in consolidated partnerships | 29,423 | 30,095 | ||||||||||
Total capital | 6,568,788 | 6,733,054 | 6,552,243 | 6,733,054 | ||||||||
Total liabilities and capital | $ | 11,181,730 | 11,145,717 | $ | 11,057,030 | 11,145,717 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Minimum rent | $ | 208,827 | 195,992 | $ | 410,219 | 337,232 | $ | 204,005 | 195,393 | $ | 614,224 | 532,625 | ||||||||||||
Percentage rent | 1,196 | 1,456 | 5,068 | 4,362 | 1,224 | 1,147 | 6,292 | 5,509 | ||||||||||||||||
Recoveries from tenants and other income | 64,502 | 57,256 | 128,773 | 102,535 | 66,127 | 59,554 | 194,900 | 162,089 | ||||||||||||||||
Management, transaction, and other fees | 6,887 | 6,601 | 14,045 | 13,307 | 6,954 | 6,047 | 20,999 | 19,353 | ||||||||||||||||
Total revenues | 281,412 | 261,305 | 558,105 | 457,436 | 278,310 | 262,141 | 836,415 | 719,576 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Depreciation and amortization | 89,105 | 92,230 | 177,629 | 152,284 | 89,183 | 91,474 | 266,812 | 243,757 | ||||||||||||||||
Operating and maintenance | 41,851 | 36,105 | 84,367 | 65,868 | 40,557 | 38,020 | 124,924 | 103,888 | ||||||||||||||||
General and administrative | 16,776 | 16,746 | 34,382 | 34,419 | 17,564 | 15,199 | 51,947 | 49,618 | ||||||||||||||||
Real estate taxes | 31,541 | 28,871 | 61,967 | 50,321 | 35,129 | 29,315 | 97,096 | 79,636 | ||||||||||||||||
Other operating expenses (note 2) | 2,799 | 6,862 | 4,432 | 78,425 | 2,045 | 3,195 | 6,476 | 81,621 | ||||||||||||||||
Total operating expenses | 182,072 | 180,814 | 362,777 | 381,317 | 184,478 | 177,203 | 547,255 | 558,520 | ||||||||||||||||
Other expense (income): | ||||||||||||||||||||||||
Interest expense, net | 38,074 | 35,407 | 74,859 | 62,606 | 36,618 | 34,679 | 111,477 | 97,285 | ||||||||||||||||
Provision for impairment, net of tax | 12,533 | — | 28,587 | — | 855 | — | 29,443 | — | ||||||||||||||||
Early extinguishment of debt | 11,010 | 12,404 | 11,172 | 12,404 | — | — | 11,172 | 12,404 | ||||||||||||||||
Net investment (income) loss, including unrealized (gains) losses of ($291) and ($11), and $84 and ($863) for the three and six months ended June 30, 2018 and 2017, respectively | (569 | ) | (887 | ) | (602 | ) | (1,984 | ) | ||||||||||||||||
Net investment (income) loss, including unrealized (gains) losses of ($484) and ($400), and ($842) and ($1,705) for the three and nine months ended September 30, 2018 and 2017, respectively | (923 | ) | (971 | ) | (1,524 | ) | (2,955 | ) | ||||||||||||||||
Total other expense (income) | 61,048 | 46,924 | 114,016 | 73,026 | 36,550 | 33,708 | 150,568 | 106,734 | ||||||||||||||||
Income from operations before equity in income of investments in real estate partnerships | 38,292 | 33,567 | 81,312 | 3,093 | 57,282 | 51,230 | 138,592 | 54,322 | ||||||||||||||||
Equity in income of investments in real estate partnerships | 9,174 | 12,240 | 19,523 | 21,583 | 10,024 | 12,221 | 29,548 | 33,804 | ||||||||||||||||
Income from operations | 47,466 | 45,807 | 100,835 | 24,676 | 67,306 | 63,451 | 168,140 | 88,126 | ||||||||||||||||
Gain on sale of real estate, net of tax | 1,123 | 4,366 | 1,219 | 4,781 | 3,228 | 131 | 4,448 | 4,913 | ||||||||||||||||
Net income | 48,589 | 50,173 | 102,054 | 29,457 | 70,534 | 63,582 | 172,588 | 93,039 | ||||||||||||||||
Limited partners’ interests in consolidated partnerships | (648 | ) | (576 | ) | (1,342 | ) | (1,247 | ) | (665 | ) | (637 | ) | (2,008 | ) | (1,884 | ) | ||||||||
Net income attributable to the Partnership | 47,941 | 49,597 | 100,712 | 28,210 | 69,869 | 62,945 | 170,580 | 91,155 | ||||||||||||||||
Preferred unit distributions and issuance costs | — | (1,125 | ) | — | (12,981 | ) | — | (3,147 | ) | — | (16,128 | ) | ||||||||||||
Net income attributable to common unit holders | $ | 47,941 | 48,472 | $ | 100,712 | 15,229 | $ | 69,869 | 59,798 | $ | 170,580 | 75,027 | ||||||||||||
Income per common unit - basic | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||
Income per common unit - diluted | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net income | $ | 48,589 | 50,173 | $ | 102,054 | 29,457 | $ | 70,534 | 63,582 | $ | 172,588 | 93,039 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Effective portion of change in fair value of derivative instruments: | ||||||||||||||||||||||||
Effective portion of change in fair value of derivative instruments | 4,289 | (3,805 | ) | 13,794 | (3,873 | ) | 2,717 | (39 | ) | 16,511 | (3,911 | ) | ||||||||||||
Reclassification adjustment of derivative instruments included in net income | 1,415 | 3,071 | 3,553 | 5,726 | 1,148 | 2,329 | 4,701 | 8,054 | ||||||||||||||||
Unrealized gain (loss) on available-for-sale debt securities | 44 | 11 | (75 | ) | 43 | 24 | 8 | (51 | ) | 51 | ||||||||||||||
Other comprehensive income (loss) | 5,748 | (723 | ) | 17,272 | 1,896 | |||||||||||||||||||
Other comprehensive income | 3,889 | 2,298 | 21,161 | 4,194 | ||||||||||||||||||||
Comprehensive income | 54,337 | 49,450 | 119,326 | 31,353 | 74,423 | 65,880 | 193,749 | 97,233 | ||||||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests: | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 648 | 576 | 1,342 | 1,247 | 665 | 637 | 2,008 | 1,884 | ||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 183 | 79 | 643 | (16 | ) | 132 | — | 775 | (17 | ) | ||||||||||||||
Comprehensive income attributable to noncontrolling interests | 831 | 655 | 1,985 | 1,231 | 797 | 637 | 2,783 | 1,867 | ||||||||||||||||
Comprehensive income attributable to the Partnership | $ | 53,506 | 48,795 | $ | 117,341 | 30,122 | $ | 73,626 | 65,243 | $ | 190,966 | 95,366 |
REGENCY CENTERS, L.P. Consolidated Statements of Capital For the six months ended June 30, 2018 and 2017 (in thousands) (unaudited) | ||||||||||||||||||||||||||||||||||||
REGENCY CENTERS, L.P. Consolidated Statements of Capital For the nine months ended September 30, 2018 and 2017 (in thousands) (unaudited) | REGENCY CENTERS, L.P. Consolidated Statements of Capital For the nine months ended September 30, 2018 and 2017 (in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
General Partner Preferred and Common Units | Limited Partners | Accumulated Other Comprehensive Loss | Total Partners’ Capital | Noncontrolling Interests in Limited Partners’ Interest in Consolidated Partnerships | Total Capital | General Partner Preferred and Common Units | Limited Partners | Accumulated Other Comprehensive Loss | Total Partners’ Capital | Noncontrolling Interests in Limited Partners’ Interest in Consolidated Partnerships | Total Capital | |||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 2,609,647 | (1,967 | ) | (18,346 | ) | 2,589,334 | 35,168 | 2,624,502 | $ | 2,609,647 | (1,967 | ) | (18,346 | ) | 2,589,334 | 35,168 | 2,624,502 | ||||||||||||||||||
Net income | 28,125 | 85 | — | 28,210 | 1,247 | 29,457 | 90,938 | 217 | — | 91,155 | 1,884 | 93,039 | ||||||||||||||||||||||||
Other comprehensive loss | — | 1 | 1,911 | 1,912 | (16 | ) | 1,896 | — | 6 | 4,205 | 4,211 | (17 | ) | 4,194 | ||||||||||||||||||||||
Deferred compensation plan, net | 1 | — | — | 1 | — | 1 | (9 | ) | — | — | (9 | ) | — | (9 | ) | |||||||||||||||||||||
Contributions from partners | — | 13,100 | — | 13,100 | 341 | 13,441 | — | 13,100 | — | 13,100 | 367 | 13,467 | ||||||||||||||||||||||||
Distributions to partners | (143,551 | ) | (264 | ) | — | (143,815 | ) | (5,946 | ) | (149,761 | ) | (233,704 | ) | (450 | ) | — | (234,154 | ) | (7,086 | ) | (241,240 | ) | ||||||||||||||
Preferred unit distributions | (4,367 | ) | — | — | (4,367 | ) | — | (4,367 | ) | (5,029 | ) | — | — | (5,029 | ) | — | (5,029 | ) | ||||||||||||||||||
Restricted units issued as a result of amortization of restricted stock issued by Parent Company | 7,171 | — | — | 7,171 | — | 7,171 | 10,920 | — | — | 10,920 | — | 10,920 | ||||||||||||||||||||||||
Redemption of preferred stock | (250,000 | ) | — | — | (250,000 | ) | — | (250,000 | ) | (325,000 | ) | — | — | (325,000 | ) | — | (325,000 | ) | ||||||||||||||||||
Common units redeemed as a result of common stock redeemed by Parent Company, net of issuances | 4,453,744 | — | — | 4,453,744 | — | 4,453,744 | ||||||||||||||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of repurchases | 4,453,889 | — | — | 4,453,889 | — | 4,453,889 | ||||||||||||||||||||||||||||||
Restricted units issued as a result of restricted stock issued by Parent Company upon Equity One merger | 7,951 | — | — | 7,951 | — | 7,951 | 7,951 | — | — | 7,951 | — | 7,951 | ||||||||||||||||||||||||
Balance at June 30, 2017 | 6,708,721 | 10,955 | (16,435 | ) | 6,703,241 | 30,794 | 6,734,035 | |||||||||||||||||||||||||||||
Balance at September 30, 2017 | 6,609,603 | 10,906 | (14,141 | ) | 6,606,368 | 30,316 | 6,636,684 | |||||||||||||||||||||||||||||
Balance at December 31, 2017 | 6,698,341 | 10,907 | (6,289 | ) | 6,702,959 | 30,095 | 6,733,054 | 6,698,341 | 10,907 | (6,289 | ) | 6,702,959 | 30,095 | 6,733,054 | ||||||||||||||||||||||
Adjustment due to change in accounting policy (note 1) | 30,889 | — | 12 | 30,901 | 2 | 30,903 | 30,889 | — | 12 | 30,901 | 2 | 30,903 | ||||||||||||||||||||||||
Adjusted balance at December 31, 2017 | 6,729,230 | 10,907 | (6,277 | ) | 6,733,860 | 30,097 | 6,763,957 | |||||||||||||||||||||||||||||
Adjusted balance at January 1, 2018 | 6,729,230 | 10,907 | (6,277 | ) | 6,733,860 | 30,097 | 6,763,957 | |||||||||||||||||||||||||||||
Net income | 100,500 | 212 | — | 100,712 | 1,342 | 102,054 | 170,222 | 358 | — | 170,580 | 2,008 | 172,588 | ||||||||||||||||||||||||
Other comprehensive income | — | 35 | 16,594 | 16,629 | 643 | 17,272 | — | 43 | 20,343 | 20,386 | 775 | 21,161 | ||||||||||||||||||||||||
Deferred compensation plan, net | (4 | ) | — | — | (4 | ) | — | (4 | ) | (14 | ) | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||||
Distributions to partners | (189,237 | ) | (389 | ) | — | (189,626 | ) | (2,159 | ) | (191,785 | ) | (283,272 | ) | (582 | ) | — | (283,854 | ) | (3,457 | ) | (287,311 | ) | ||||||||||||||
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization | 8,135 | — | — | 8,135 | — | 8,135 | 12,308 | — | — | 12,308 | — | 12,308 | ||||||||||||||||||||||||
Common units repurchased and retired as a result of common stock repurchased and retired by Parent Company | (124,989 | ) | — | — | (124,989 | ) | — | (124,989 | ) | (124,989 | ) | — | — | (124,989 | ) | — | (124,989 | ) | ||||||||||||||||||
Common units issued as a result of common stock issued by Parent Company, net of repurchases | (5,852 | ) | — | — | (5,852 | ) | — | (5,852 | ) | |||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 6,517,783 | 10,765 | 10,317 | 6,538,865 | 29,923 | 6,568,788 | |||||||||||||||||||||||||||||
Common units redeemed as a result of common stock redeemed by Parent Company, net of issuances | (5,457 | ) | — | — | (5,457 | ) | — | (5,457 | ) | |||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 6,498,028 | 10,726 | 14,066 | 6,522,820 | 29,423 | 6,552,243 |
2018 | 2017 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 102,054 | 29,457 | $ | 172,588 | 93,039 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 177,629 | 152,284 | 266,812 | 243,757 | ||||||||
Amortization of deferred loan costs and debt premiums | 4,999 | 4,769 | 7,599 | 7,144 | ||||||||
(Accretion) and amortization of above and below market lease intangibles, net | (19,326 | ) | (11,683 | ) | (26,031 | ) | (18,784 | ) | ||||
Stock-based compensation, net of capitalization | 6,574 | 13,826 | 10,012 | 16,836 | ||||||||
Equity in income of investments in real estate partnerships | (19,523 | ) | (21,583 | ) | (29,548 | ) | (33,804 | ) | ||||
Gain on sale of real estate, net of tax | (1,219 | ) | (4,781 | ) | (4,448 | ) | (4,913 | ) | ||||
Provision for impairment | 28,587 | — | ||||||||||
Provision for impairment, net of tax | 29,443 | — | ||||||||||
Early extinguishment of debt | 11,172 | 12,404 | 11,172 | 12,404 | ||||||||
Distribution of earnings from operations of investments in real estate partnerships | 26,711 | 26,271 | 40,366 | 40,817 | ||||||||
Loss on derivative instruments | — | 51 | ||||||||||
Deferred compensation expense | 544 | 1,948 | 1,475 | 2,885 | ||||||||
Realized and unrealized gain on investments | (530 | ) | (1,951 | ) | (1,524 | ) | (2,878 | ) | ||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable, net | 6,023 | 10,639 | ||||||||||
Straight-line rent receivables, net | (9,825 | ) | (8,887 | ) | ||||||||
Tenant and other receivables, net | (13,326 | ) | (11,327 | ) | ||||||||
Deferred leasing costs | (3,404 | ) | (6,701 | ) | (6,259 | ) | (10,294 | ) | ||||
Other assets | (6,174 | ) | 3,617 | (6,565 | ) | 8,075 | ||||||
Accounts payable and other liabilities | (6,052 | ) | (23,850 | ) | 15,100 | 4,908 | ||||||
Tenants’ security and escrow deposits and prepaid rent | 2,666 | 1,291 | ||||||||||
Tenants’ security, escrow deposits and prepaid rent | (2,111 | ) | (2,490 | ) | ||||||||
Net cash provided by operating activities | 300,906 | 177,070 | 464,755 | 345,426 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of operating real estate | (85,766 | ) | (345 | ) | (85,766 | ) | (2,109 | ) | ||||
Advance deposits paid on acquisition of operating real estate | (2,025 | ) | (100 | ) | (150 | ) | (350 | ) | ||||
Acquisition of Equity One, net of cash and restricted cash acquired of $72,784 | — | (646,984 | ) | |||||||||
Acquisition of Equity One, net of cash and restricted cash acquired of $74,507 | — | (646,790 | ) | |||||||||
Real estate development and capital improvements | (120,579 | ) | (159,889 | ) | (174,145 | ) | (240,827 | ) | ||||
Proceeds from sale of real estate investments | 42,508 | 13,270 | 151,142 | 13,323 | ||||||||
Proceeds from (issuance of) notes receivable | 15,648 | (2,837 | ) | 15,648 | (3,460 | ) | ||||||
Investments in real estate partnerships | (45,451 | ) | (3,064 | ) | (58,372 | ) | (12,296 | ) | ||||
Distributions received from investments in real estate partnerships | 2,328 | 30,612 | 5,488 | 36,603 | ||||||||
Dividends on investment securities | 176 | 128 | 281 | 200 | ||||||||
Acquisition of securities | (11,726 | ) | (9,853 | ) | ||||||||
Proceeds from sale of securities | 10,976 | 10,877 | ||||||||||
Acquisition of investment securities | (16,946 | ) | (14,011 | ) | ||||||||
Proceeds from sale of investment securities | 15,639 | 11,974 | ||||||||||
Net cash used in investing activities | (193,911 | ) | (768,185 | ) | (147,181 | ) | (857,743 | ) | ||||
Cash flows from financing activities: | ||||||||||||
Repurchase of common shares in conjunction with equity award plans | (6,755 | ) | (18,998 | ) | (6,772 | ) | (19,251 | ) | ||||
Common units repurchased through share repurchase program | (124,989 | ) | — | (124,989 | ) | — | ||||||
Proceeds from sale of treasury stock | 99 | 76 | 99 | 100 | ||||||||
Redemption of preferred partnership units | — | (250,000 | ) | — | (325,000 | ) | ||||||
Distributions (to) from limited partners in consolidated partnerships, net | (2,159 | ) | (5,891 | ) | ||||||||
Distributions to limited partners in consolidated partnerships, net | (3,457 | ) | (7,031 | ) | ||||||||
Distributions to partners | (188,948 | ) | (143,208 | ) | (282,858 | ) | (233,246 | ) | ||||
Distributions to preferred unit holders | — | (4,366 | ) | — | (5,029 | ) | ||||||
Repayment of fixed rate unsecured notes | (150,000 | ) | — | (150,000 | ) | — | ||||||
Proceeds from issuance of fixed rate unsecured notes, net | 299,511 | 953,115 | 299,511 | 953,115 | ||||||||
Proceeds from unsecured credit facilities | 400,000 | 905,000 | 455,000 | 950,000 | ||||||||
Repayment of unsecured credit facilities | (310,000 | ) | (620,000 | ) | (370,000 | ) | (650,000 | ) | ||||
Proceeds from notes payable | 1,740 | 124,088 | 1,740 | 126,999 | ||||||||
Repayment of notes payable | (6,199 | ) | (232,839 | ) | (113,037 | ) | (232,839 | ) | ||||
Scheduled principal payments | (5,513 | ) | (4,789 | ) | (7,767 | ) | (7,452 | ) | ||||
Payment of loan costs | (9,432 | ) | (11,832 | ) | (9,448 | ) | (12,868 | ) | ||||
Early redemption costs | (10,491 | ) | (12,419 | ) | (10,491 | ) | (12,419 | ) | ||||
Net cash (used in) provided by financing activities | (113,136 | ) | 677,937 | (322,469 | ) | 525,079 | ||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (6,141 | ) | 86,822 | (4,895 | ) | 12,762 | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 49,381 | 17,879 | 49,381 | 17,879 | ||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 43,240 | 104,701 | $ | 44,486 | 30,641 |
2018 | 2017 | 2018 | 2017 | |||||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid for interest (net of capitalized interest of $4,150 and $3,290 in 2018 and 2017, respectively) | $ | 66,692 | 43,643 | |||||||||
Cash paid (received) for income taxes | $ | 290 | (899 | ) | ||||||||
Cash paid for interest (net of capitalized interest of $5,820 and $5,778 in 2018 and 2017, respectively) | $ | 104,210 | 73,273 | |||||||||
Cash paid (received) for income taxes, net | $ | 4,771 | (670 | ) | ||||||||
Supplemental disclosure of non-cash transactions: | ||||||||||||
Limited partner units issued in exchange for acquisition of real estate | $ | — | 13,100 | $ | — | 13,100 | ||||||
Mortgage loans assumed for the acquisition of real estate | $ | 9,700 | — | $ | 9,700 | — | ||||||
Real estate under capital lease obligation | $ | — | 6,000 | |||||||||
Common stock issued by Parent Company for dividend reinvestment plan | $ | 678 | 607 | $ | 996 | 908 | ||||||
Stock-based compensation capitalized | $ | 1,777 | 1,624 | $ | 2,606 | 2,459 | ||||||
Contributions from limited partners in consolidated partnerships, net | $ | — | 286 | $ | — | 311 | ||||||
Common stock issued for dividend reinvestment in trust | $ | 415 | 366 | $ | 627 | 557 | ||||||
Contribution of stock awards into trust | $ | 1,174 | 1,372 | $ | 1,244 | 1,372 | ||||||
Distribution of stock held in trust | $ | 524 | 640 | $ | 524 | 677 | ||||||
Change in fair value of debt securities available-for-sale | $ | (89 | ) | 43 | $ | 5 | 51 | |||||
Equity One Merger: | ||||||||||||
Notes payable assumed in Equity One merger, at fair value | $ | — | 757,399 | $ | — | 757,399 | ||||||
General partner units issued to Parent Company for common stock exchanged for Equity One shares | $ | — | 4,471,808 | $ | — | 4,471,808 |
1. | Organization and Significant Accounting Policies |
◦ | Those partnerships in which Regency has a controlling financial interest are consolidated; and the limited partners’ ownership interest and share of net income is recorded as noncontrolling interest. |
◦ | Those partnerships in which Regency does not have a controlling financial interest are accounted for using the equity method, and its ownership interest is recognized through single-line presentation as Investments in real estate partnerships in the Consolidated Balance Sheets, and Equity in income of investments in real estate partnerships in the Consolidated Statements of Operations. Cash distributions of earnings from operations from investments in real estate partnerships are presented in cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows. Cash distributions from the sale of a property or loan proceeds received from the placement of debt on a property included in investments in real estate partnerships are presented in cash flows provided by investing activities in the accompanying Consolidated Statements of Cash Flows. Distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment has resulted in a negative investment balance for one partnership, which is recorded within accounts payable and other liabilities in the Consolidated Balance Sheets. |
◦ | The net difference in the carrying amount of investments in real estate partnerships and the underlying equity in net assets is accreted to income and recorded in equity in income of investments in real estate partnerships in the accompanying Consolidated Statements of Operations over the expected useful lives of the properties and other intangible assets, which range |
(in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||
Assets | |||||||||||
Net real estate investments | $ | 161,592 | 172,736 | $ | 163,283 | 172,736 | |||||
Cash and cash equivalents | 3,795 | 4,993 | 4,635 | 4,993 | |||||||
Liabilities | |||||||||||
Notes payable | 18,358 | 16,551 | 18,403 | 16,551 | |||||||
Equity | |||||||||||
Limited partners’ interests in consolidated partnerships | 17,496 | 17,572 | 17,263 | 17,572 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||
(in thousands) | Timing of satisfaction of performance obligations | 2018 | 2017 | 2018 | 2017 | Timing of satisfaction of performance obligations | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
Property management services | Over time | $ | 3,652 | $ | 3,587 | $ | 7,420 | 7,006 | Over time | $ | 3,588 | 3,446 | $ | 11,008 | 10,452 | ||||||||||||||||||
Asset management services | Over time | 1,804 | 1,763 | 3,507 | 3,552 | Over time | 1,840 | 1,762 | 5,347 | 5,314 | |||||||||||||||||||||||
Leasing services | Point in time | 1,072 | 787 | 1,757 | 1,617 | Point in time | 969 | 669 | 2,726 | 2,285 | |||||||||||||||||||||||
Other transaction fees | Point in time | 359 | 464 | 1,361 | 1,132 | Point in time | 557 | 170 | 1,918 | 1,302 | |||||||||||||||||||||||
Total management, transaction, and other fees | Total management, transaction, and other fees | $ | 6,887 | 6,601 | $ | 14,045 | 13,307 | Total management, transaction, and other fees | $ | 6,954 | 6,047 | $ | 20,999 | 19,353 |
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Recently adopted: | ||||||
Accounting Standards Update ("ASU") 2017-12, August 2017, Targeted Improvements to Accounting for Hedging Activities | This ASU provides updated guidance to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The | January 2018 | The Company adopted this ASU | |||
ASU 2016-01, January 2016, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | This ASU amends the guidance to classify equity securities with readily-determinable fair values into different categories and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. Equity investments accounted for under the equity method are not included in the scope of this amendment. | January 2018 | The Company's adoption of this standard did not have a significant impact on its results of operations, financial condition or cash flows as the company has an insignificant amount of equity securities within the scope of this standard. The adoption resulted in reduced disclosure requirements around methodology and significant assumptions used in fair value measurements. | |||
ASU 2016-15, August 2016, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments | This ASU makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. | January 2018 | The adoption of this ASU did not result in a change to the Company's Consolidated Statements of Cash Flows. | |||
ASU 2016-18, November 2016, Statement of Cash Flows (Topic 230): Restricted Cash | This ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. The amendments in this ASU | January 2018 | The adoption of this ASU resulted in a change to the classification and presentation of changes in restricted cash on its cash flow statement, which was not material. There was no change to the Company's financial condition or results of operations as a result of adopting this ASU. Upon adoption, and for the | |||
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
ASU 2017-05, February 2017, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (Subtopic 610-20) | ASU 2017-05 clarifies that ASC 610-20 applies to all nonfinancial assets (including real estate) for which the counterparty is not a customer and requires an entity to derecognize a nonfinancial asset in a partial sale transaction when it ceases to have a controlling financial interest in the asset and has transferred control of the asset. Once an entity transfers control of the nonfinancial asset, the entity is required to measure any non-controlling interest it receives or retains at fair value. Under the current guidance, a partial sale is recognized and carryover basis is used for the retained interest resulting in only partial gain recognition by the entity, however, the new guidance eliminates the use of carryover basis and generally requires the full gain be recognized. | January 2018 | Sales of real estate assets are now accounted for under Subtopic 610-20, which provides for revenue recognition based on transfer of control. For normal arms length property sales to unrelated parties, where Regency has no retained interest in the property, the Company will continue to recognize the full gain or loss upon transfer of control. For property sales in which Regency retains a noncontrolling interest in the property, fair value recognition for the retained noncontrolling interest is now required, which will result in full gain recognition upon loss of control. The Company applied the modified retrospective adoption method, and on January 1, 2018, recognized through opening retained earnings $30.9 million of previously deferred gains from property sales to entities in which Regency had continuing involvement, resulting in a corresponding increase to the value of the Company's investment in those partnerships. | |||
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Revenue from Contracts with Customers (Topic 606) and related updates: ASU 2014-09, May 2014, Revenue from Contracts with Customers (Topic 606) ASU 2016-08, March 2016, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations ASU 2016-10, April 2016, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ASU 2016-12, May 2016, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ASU 2016-19, December 2016, Technical Corrections and Improvements ASU 2016-20, December 2016, Technical Corrections and Improvements to Topic 606 Revenue from Contracts With Customers | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Topic 606 applies to all contracts with customers except those that are within the scope of other topics in the FASB's accounting standards codification. As a result, Topic 606 does not apply to revenue from lease contracts. The Company's lease contracts | January 2018 | The Company utilized the modified retrospective method of adoption, applying the standard to only 2018, and not restating prior periods presented in future financial statements. The majority of the Company's revenue originates from lease contracts and will be subject to Topic 842 to be adopted in January 2019. Beyond revenue from lease contracts, the Company's primary revenue stream subject to Topic 606 is Management, transaction, and other fees from the Company's real estate partnerships, primarily in the form of property management services, asset management services, and leasing services. The Company evaluated all partnership service relationships and did not identify any changes in the timing or amount of revenue recognition from these revenue streams. The adoption of Topic 606 resulted in additional disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. | |||
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Not yet adopted: | ||||||
Leases (Topic 842) and related updates: ASU 2016-02, February 2016, Leases (Topic 842) ASU 2018-10, July 2018: Codification Improvements to Topic 842, Leases ASU 2018-11, July 2018, Leases (Topic 842): Targeted Improvements | Topic 842 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. It also makes targeted changes to lessor The provisions of these ASUs are effective as of January 1, 2019, with early adoption permitted. Topic 842 provides a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief or an additional transition method, allowing for initial application at the date of adoption and a cumulative-effect adjustment to opening retained earnings. | January 2019 | The Company continues to evaluate the impact this standard will have on its financial statements and related disclosures. Based on adoption and implementation efforts to date, management has identified expected changes from the new standard from its perspective as both a lessee and a lessor, as noted below: | |||
Lessee Accounting: The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparable period presented in the financial statements as its date of initial application. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the “package of practical expedients”, which allows the Company not to reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs. The new standard will also provide significant new disclosures about the Company’s leasing activities. | The Company has ground lease agreements in which the Company is the lessee for land beneath all or a portion of the buildings at certain consolidated shopping centers. The Company also has office leases for its headquarters and field offices. Based on current estimates, which include interest rate assumptions subject to change, the Company anticipates recognizing operating lease liabilities for its ground and office leases, with a corresponding ROU asset, of less than 5% of total assets. For these existing operating leases, the Company will continue to recognize a single lease expense for its existing ground and office operating leases, currently included in Operating and maintenance expenses and General and administrative expenses, respectively, in the Consolidated Statements of Operations. Future ground leases entered into or acquired subsequent to the adoption date may be classified as operating or finance leases, based on specific classification criteria. Finance leases would result in a slightly accelerated impact to earnings, using the effective interest method, and different classification of the expense. | |||||
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Topic 842, Leases (continued) | Lessor Accounting Topic 842 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard also includes a change to the treatment of internal leasing costs and legal costs, which can no longer be capitalized. Only incremental costs of a lease that would not have been incurred if the lease had not been obtained may be deferred as initial direct costs. Additionally, the new standard requires lessors to allocate the consideration in a contract between the lease component (right to use an underlying asset) and non-lease component (transfer of a good or service that is not a lease). However, lessors are provided with a practical expedient, elected by class of underlying asset, to account for lease and non-lease components of a contract as a single lease component if certain criteria are met. Lessors that make these elections will be required to provide additional disclosures. | The Capitalization of indirect internal leasing costs and legal costs will no longer be permitted upon the adoption of this standard, which will result in an increase in Total operating expenses in the Consolidated Statements of Operations in the period of adoption and prospectively. The terms of the Company's leases generally provide that the Company is entitled to receive reimbursements from tenants for operating expenses such as real estate taxes, insurance and common area maintenance ("CAM"), in addition to the base rental payments for use of the underlying asset (e.g. unit of the shopping center). Under the new standard, CAM is considered a non-lease component of a lease contract, which would be accounted for under Topic 606. However, the Company expects to apply the practical expedient to account for its lease and non-lease components as a single, combined operating lease component. While the timing of recognition should remain the same, the Company expects to no longer present Minimum rent and Recoveries from tenants separately in our Consolidated Statements of Operations beginning January 1, 2019. The Company will continue its evaluation of the accounting standard, additional impacts of adoption, and changes in presentation and disclosure requirements. | ||||
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
ASU 2018-15, August 2018, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU provides further clarification of the appropriate presentation of capitalized costs, the period over which to recognize the expense, the presentation within the Statements of Operations and Statements of Cash Flows, and the disclosure requirements. Early adoption of the standard is permitted. | January 2020 | The Company is currently evaluating the accounting standard, but does not expect the adoption to have a material impact on its financial position, results of operations, or cash flows. | |||
ASU 2016-13, June 2016, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU also applies to how the Company determines its allowance for doubtful accounts on tenant receivables. | January 2020 | The Company is evaluating the alternative methods of adoption and the impact it will have on its financial statements and related disclosures. | |||
ASU 2018-13, August 2018, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement | This ASU modifies the disclosure requirements for fair value measurements within the scope of Topic 820, Fair Value Measurement, including the removal and modification of certain existing disclosures, and the addition of new disclosures. | January 2020 | The Company is currently evaluating the impact of adopting this new accounting standard, which is expected to only impact fair value measurement disclosures and therefore should have no impact on the Company's financial position, results of operations, or cash flows. |
2. | Real Estate Investments |
(in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||
Land | $ | 4,219,729 | 4,235,032 | $ | 4,215,399 | 4,235,032 | ||||||||
Land improvements | 595,260 | 556,140 | 626,787 | 556,140 | ||||||||||
Buildings | 5,088,953 | 4,999,378 | 5,126,219 | 4,999,378 | ||||||||||
Building and tenant improvements | 848,610 | 787,880 | 885,878 | 787,880 | ||||||||||
Total Land, building and improvements | $ | 10,752,552 | 10,578,430 | $ | 10,854,283 | 10,578,430 |
(in thousands) | (in thousands) | Six months ended June 30, 2018 | (in thousands) | Nine months ended September 30, 2018 | ||||||||||||||||||||||||||||
Date Purchased | Property Name | City/State | Property Type | Ownership | Purchase Price | Debt Assumed, Net of Premiums | Intangible Assets | Intangible Liabilities | Property Name | City/State | Property Type | Ownership | Purchase Price | Debt Assumed, Net of Premiums | Intangible Assets | Intangible Liabilities | ||||||||||||||||
1/2/18 | Ballard Blocks I | Seattle, WA | Operating | 49.9% | $54,500 | — | 3,668 | 2,350 | Ballard Blocks I | Seattle, WA | Operating | 49.9% | $54,500 | — | 3,668 | 2,350 | ||||||||||||||||
1/2/18 | Ballard Blocks II | Seattle, WA | Development | 49.9% | 4,000 | — | — | — | Ballard Blocks II | Seattle, WA | Development | 49.9% | 4,000 | — | — | — | ||||||||||||||||
1/5/18 | The District at Metuchen | Metuchen, NJ | Operating | 20% | 33,830 | — | 3,147 | 1,905 | The District at Metuchen | Metuchen, NJ | Operating | 20% | 33,830 | — | 3,147 | 1,905 | ||||||||||||||||
1/10/18 | Hewlett Crossing I & II | Hewlett, NY | Operating | 100% | 30,900 | 9,700 | 3,114 | 1,868 | Hewlett Crossing I & II | Hewlett, NY | Operating | 100% | 30,900 | 9,700 | 3,114 | 1,868 | ||||||||||||||||
4/3/2018 | Rivertowns Square | Dobbs Ferry, NY | Operating | 100% | 68,933 | — | 4,993 | 5,554 | Rivertowns Square | Dobbs Ferry, NY | Operating | 100% | 68,933 | — | 4,993 | 5,554 | ||||||||||||||||
5/18/2018 | Crossroads Commons II | Boulder, CO | Operating | 20% | 10,500 | — | 447 | 769 | Crossroads Commons II | Boulder, CO | Operating | 20% | 10,500 | — | 447 | 769 | ||||||||||||||||
9/7/2018 | Ridgewood Shopping Center | Raleigh, NC | Operating | 20% | 45,800 | 10,233 | 3,372 | 2,278 | ||||||||||||||||||||||||
Total property acquisitions | Total property acquisitions | $202,663 | 9,700 | 15,369 | 12,446 | Total property acquisitions | $248,463 | 19,933 | 18,741 | 14,724 | ||||||||||||||||||||||
(in thousands) | (in thousands) | Six months ended June 30, 2017 | (in thousands) | Nine months ended September 30, 2017 | ||||||||||||||||||||||||||||
Date Purchased | Property Name | City/State | Property Type | Ownership | Purchase Price | Debt Assumed, Net of Premiums | Intangible Assets | Intangible Liabilities | Property Name | City/State | Property Type | Ownership | Purchase Price | Debt Assumed, Net of Premiums | Intangible Assets | Intangible Liabilities | ||||||||||||||||
3/6/17 | The Field at Commonwealth | Chantilly, VA | Development | 100% | $9,500 | — | — | — | The Field at Commonwealth | Chantilly, VA | Development | 100% | $9,500 | — | — | — | ||||||||||||||||
3/8/17 | Pinecrest Place (1) | Miami, FL | Development | 100% | — | — | — | — | Pinecrest Place (1) | Miami, FL | Development | 100% | — | — | — | — | ||||||||||||||||
4/13/17 | Mellody Farm (2) | Chicago, IL | Development | 100% | 26,200 | — | — | — | Mellody Farm (2) | Chicago, IL | Development | 100% | 26,200 | — | — | — | ||||||||||||||||
6/28/17 | Concord outparcel (3) | Miami, FL | Operating | 100% | 350 | — | — | — | Concord outparcel (3) | Miami, FL | Operating | 100% | 350 | — | — | — | ||||||||||||||||
7/20/17 | Aventura Square outparcel (4) | Miami, FL | Operating | 100% | 1,750 | — | 90 | 9 | ||||||||||||||||||||||||
Total property acquisitions | Total property acquisitions | $36,050 | — | — | — | Total property acquisitions | $37,800 | — | 90 | 9 | ||||||||||||||||||||||
(1) The Company leased 10.67 acres for a ground up development. | (1) The Company leased 10.67 acres for a ground up development. | (1) The Company leased 10.67 acres for a ground up development. | ||||||||||||||||||||||||||||||
(2) The Operating Partnership issued 195,732 partnership units values at $13.1 million as partial consideration for the purchase. | ||||||||||||||||||||||||||||||||
(2) The Operating Partnership issued 195,732 partnership units valued at $13.1 million as partial consideration for the purchase. | (2) The Operating Partnership issued 195,732 partnership units valued at $13.1 million as partial consideration for the purchase. | |||||||||||||||||||||||||||||||
(3) The Company purchased a 0.67 acre vacant outparcel adjacent to the Company's existing operating Concord Shopping Plaza. | (3) The Company purchased a 0.67 acre vacant outparcel adjacent to the Company's existing operating Concord Shopping Plaza. | (3) The Company purchased a 0.67 acre vacant outparcel adjacent to the Company's existing operating Concord Shopping Plaza. | ||||||||||||||||||||||||||||||
(4) The Company purchased a 0.06 acre outparcel improved with a leased building adjacent to the Company's existing operating Aventura Square shopping center. | (4) The Company purchased a 0.06 acre outparcel improved with a leased building adjacent to the Company's existing operating Aventura Square shopping center. |
(in thousands, except stock price) | Purchase Price | ||
Shares of common stock issued for merger | 65,379 | ||
Closing stock price on March 1, 2017 | $ | 68.40 | |
Value of common stock issued for merger | $ | 4,471,808 | |
Other cash payments | 721,297 | ||
Total purchase price | $ | 5,193,105 |
(in thousands) | Final Purchase Price Allocation | |||
Land | $ | 2,865,053 | ||
Building and improvements | 2,619,163 | |||
Properties in development | 68,744 | |||
Properties held for sale | 19,600 | |||
Investments in unconsolidated real estate partnerships | 99,666 | |||
Real estate assets | 5,672,226 | |||
Cash, accounts receivable and other assets | 112,909 | |||
Intangible assets | 458,877 | |||
Goodwill | 332,384 | |||
Total assets acquired | 6,576,396 | |||
Notes payable | 757,399 | |||
Accounts payable, accrued expenses, and other liabilities | 122,217 | |||
Lease intangible liabilities | 503,675 | |||
Total liabilities assumed | 1,383,291 | |||
Total purchase price | $ | 5,193,105 |
(in years) | Weighted Average Amortization / Accretion Period | |
Assets: | ||
In-place leases | 10.8 | |
Above-market leases | 7.8 | |
Below-market ground leases | 55.3 | |
Liabilities: | ||
Below-market leases | 24.9 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||
(in thousands, except per share data) | 2017 | 2017 | 2017 | ||||||||||||
Total revenues | $ | 261,314 | $ | 526,488 | $ | 262,708 | $ | 788,345 | |||||||
Income from operations | (1) | 56,435 | 123,832 | 63,537 | 190,112 | ||||||||||
Net income attributable to common stockholders | (1) | 54,624 | 109,434 | 59,621 | 171,795 | ||||||||||
Income per common share - basic | 0.32 | 0.64 | 0.35 | 1.01 | |||||||||||
Income per common share - diluted | 0.32 | 0.64 | 0.35 | 1.01 | |||||||||||
(1) The pro forma earnings for the three and six months ended June 30, 2017, were adjusted to exclude $4.7 million and $97.3 million of merger costs, respectively. | |||||||||||||||
(1) The pro forma earnings for the three and nine months ended September 30, 2017, were adjusted to exclude $1.2 million and $98.5 million of merger costs, respectively, as if they had occurred in 2016. | (1) The pro forma earnings for the three and nine months ended September 30, 2017, were adjusted to exclude $1.2 million and $98.5 million of merger costs, respectively, as if they had occurred in 2016. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(in thousands, except number sold data) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
Net proceeds from sale of real estate investments | $ | 38,781 | $ | 13,481 | $ | 42,008 | $ | 15,230 | $ | 108,634 | 167 | $ | 151,142 | 15,397 | ||||||||||||||||
Gain on sale of real estate, net of tax | $ | 1,123 | $ | 4,366 | $ | 1,219 | $ | 4,781 | $ | 3,228 | 131 | $ | 4,448 | 4,913 | ||||||||||||||||
Provision for impairment of real estate sold | $ | 2,974 | $ | — | $ | 3,348 | $ | — | $ | 855 | — | $ | 29,443 | — | ||||||||||||||||
Number of operating properties sold | 3 | 1 | 4 | 1 | 3 | — | 7 | 1 | ||||||||||||||||||||||
Number of land parcels sold | 3 | 5 | 3 | 7 | 3 | — | 6 | 7 | ||||||||||||||||||||||
Percent interest sold | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | — | % | 100 | % | 100 | % |
(in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||
Goodwill | $ | 320,639 | 331,884 | $ | 318,710 | 331,884 | ||||||
Investments | 42,672 | 41,636 | 44,014 | 41,636 | ||||||||
Prepaid and other | 25,771 | 30,332 | 24,093 | 30,332 | ||||||||
Derivative assets | 25,472 | 14,515 | 26,802 | 14,515 | ||||||||
Furniture, fixtures, and equipment, net | 7,010 | 6,123 | 6,715 | 6,123 | ||||||||
Deferred financing costs, net | 7,933 | 2,637 | 7,392 | 2,637 | ||||||||
Total other assets | $ | 429,497 | 427,127 | $ | 427,726 | 427,127 |
(in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||
Beginning of year balance | $ | 331,884 | — | $ | 331,884 | — | ||||||
Goodwill resulting from Equity One merger | 500 | 331,884 | 500 | 331,884 | ||||||||
Goodwill allocated to properties sold | (381 | ) | — | |||||||||
Impairment (1) | (9,220 | ) | — | |||||||||
Goodwill allocated to Gain on sale of real estate | (2,525 | ) | — | |||||||||
Goodwill allocated to Provision for impairment | (9,220 | ) | — | |||||||||
Goodwill allocated to properties held for sale | (2,144 | ) | — | (1,929 | ) | — | ||||||
End of period balance | $ | 320,639 | 331,884 | $ | 318,710 | 331,884 | ||||||
(1) See note 7, Fair value measurements, for additional information about the impairment loss associated with properties held and used or held for sale. |
(in thousands) | Weighted Average Contractual Rate | Weighted Average Effective Rate | June 30, 2018 | December 31, 2017 | ||||
Notes payable: | ||||||||
Fixed rate mortgage loans | 5.1% | 4.4% | $ | 516,149 | 520,193 | |||
Variable rate mortgage loans | 3.3% | 3.5% | 127,727 | (1) | 125,866 | |||
Fixed rate unsecured public and private debt | 4.0% | 4.4% | 2,474,126 | 2,325,656 | ||||
Total notes payable | 3,118,002 | 2,971,715 | ||||||
Unsecured credit facilities: | ||||||||
Line of Credit (the "Line") (2) | 2.8% | 3.0% | 150,000 | 60,000 | ||||
Term loans | 2.4% | 2.5% | 563,498 | 563,262 | ||||
Total unsecured credit facilities | 713,498 | 623,262 | ||||||
Total debt outstanding | $ | 3,831,500 | 3,594,977 | |||||
(1) Includes five mortgages whose interest rates vary on LIBOR based formulas. Three of these variable rate loans have interest rate swaps in place to fix the interest rates at a range of 2.8% to 4.07%. | ||||||||
(2) Weighted average effective and contractual rate for the Line is calculated based on a fully drawn Line balance. |
(in thousands) | Weighted Average Contractual Rate | Weighted Average Effective Rate | September 30, 2018 | December 31, 2017 | ||||
Notes payable: | ||||||||
Fixed rate mortgage loans | 4.8% | 4.3% | $ | 406,072 | 520,193 | |||
Variable rate mortgage loans | 3.3% | 3.6% | 127,796 | (1) | 125,866 | |||
Fixed rate unsecured public and private debt | 4.0% | 4.4% | 2,474,724 | 2,325,656 | ||||
Total notes payable | 3,008,592 | 2,971,715 | ||||||
Unsecured credit facilities: | ||||||||
Line of Credit (the "Line") (2) | 2.9% | 3.1% | 145,000 | 60,000 | ||||
Term loans | 2.4% | 2.5% | 563,616 | 563,262 | ||||
Total unsecured credit facilities | 708,616 | 623,262 | ||||||
Total debt outstanding | $ | 3,717,208 | 3,594,977 | |||||
(1) Includes five mortgages whose interest rates vary on LIBOR based formulas. Three of these variable rate loans have interest rate swaps in place to fix the interest rates at a range of 2.8% to 4.1%. | ||||||||
(2) Weighted average effective and contractual rate for the Line is calculated based on a fully drawn Line balance. |
(in thousands) | June 30, 2018 | September 30, 2018 | ||||||||||||||||||||||
Scheduled Principal Payments and Maturities by Year: | Scheduled Principal Payments | Mortgage Loan Maturities | Unsecured Maturities (1) | Total | Scheduled Principal Payments | Mortgage Loan Maturities | Unsecured Maturities (1) | Total | ||||||||||||||||
2018 | $ | 5,173 | 106,117 | — | 111,290 | $ | 2,196 | — | — | 2,196 | ||||||||||||||
2019 | 9,519 | 23,525 | — | 33,044 | 9,519 | 13,216 | — | 22,735 | ||||||||||||||||
2020 | 11,287 | 78,580 | 300,000 | 389,867 | 11,287 | 78,580 | 300,000 | 389,867 | ||||||||||||||||
2021 | 11,600 | 66,751 | 250,000 | 328,351 | 11,600 | 77,060 | 250,000 | 338,660 | ||||||||||||||||
2022 | 11,799 | 5,848 | 715,000 | 732,647 | 11,799 | 5,848 | 710,000 | 727,647 | ||||||||||||||||
Beyond 5 Years | 37,056 | 269,216 | 1,950,000 | 2,256,272 | 37,056 | 269,217 | 1,950,000 | 2,256,273 | ||||||||||||||||
Unamortized debt premium/(discount) and issuance costs | — | 7,405 | (27,376 | ) | (19,971 | ) | — | 6,490 | (26,660 | ) | (20,170 | ) | ||||||||||||
Total | $ | 86,434 | 557,442 | 3,187,624 | 3,831,500 | $ | 83,457 | 450,411 | 3,183,340 | 3,717,208 | ||||||||||||||
(1) Includes unsecured public and private debt and unsecured credit facilities. | (1) Includes unsecured public and private debt and unsecured credit facilities. | (1) Includes unsecured public and private debt and unsecured credit facilities. |
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Assets (Liabilities)(1) | (in thousands) | Assets (Liabilities)(1) | ||||||||||||||||||||||||||||||
Effective Date | Maturity Date | Notional Amount | Bank Pays Variable Rate of | Regency Pays Fixed Rate of | June 30, 2018 | December 31, 2017 | Maturity Date | Notional Amount | Counterparty Pays Variable Rate of | Regency Pays Fixed Rate of | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
4/3/17 | 12/2/20 | $ | 300,000 | 1 Month LIBOR with Floor | 1.824% | $ | 5,890 | 1,804 | 12/2/20 | $ | 300,000 | 1 Month LIBOR with Floor | 1.824% | $ | 6,410 | 1,804 | ||||||||||||||||||
8/1/16 | 1/5/22 | 265,000 | 1 Month LIBOR with Floor | 1.053% | 15,022 | 10,744 | 1/5/22 | 265,000 | 1 Month LIBOR with Floor | 1.053% | 15,286 | 10,744 | ||||||||||||||||||||||
4/7/16 | 4/1/23 | 20,000 | 1 Month LIBOR | 1.303% | 1,243 | 801 | 4/1/23 | 20,000 | 1 Month LIBOR | 1.303% | 1,310 | 801 | ||||||||||||||||||||||
12/1/16 | 11/1/23 | 33,000 | 1 Month LIBOR | 1.490% | 2,002 | 1,166 | 11/1/23 | 33,000 | 1 Month LIBOR | 1.490% | 2,151 | 1,166 | ||||||||||||||||||||||
6/2/17 | 6/2/27 | 37,500 | 1 Month LIBOR with Floor | 2.366% | 1,315 | (177 | ) | 6/2/27 | 37,500 | 1 Month LIBOR with Floor | 2.366% | 1,645 | (177 | ) | ||||||||||||||||||||
$ | 25,472 | 14,338 | $ | 26,802 | 14,338 | |||||||||||||||||||||||||||||
(1) Derivatives in an asset position are included within other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within accounts payable and other liabilities. | ||||||||||||||||||||||||||||||||||
(1) Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities. | (1) Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities. |
Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Reclassified from AOCI into Income | Total Interest Expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Reclassified from AOCI into Income | Total Interest Expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | Three months ended June 30, | Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 4,289 | (3,805 | ) | Interest expense | $ | (1,415 | ) | (3,071 | ) | Interest expense, net | $ | 38,074 | 35,407 | $ | 2,717 | (39 | ) | Interest expense | $ | (1,148 | ) | (2,329 | ) | Interest expense, net | $ | 36,618 | 34,679 | ||||||||||||||||||||||
Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Reclassified from AOCI into Income | Total Interest Expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | Location and Amount of Gain (Loss) Recognized in OCI on Derivative | Location and Amount of Gain (Loss) Reclassified from AOCI into Income | Total Interest Expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | ||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, | Six months ended June 30, | Six months ended June 30, | Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 13,794 | (3,873 | ) | Interest expense | $ | (3,553 | ) | (5,726 | ) | Interest expense, net | $ | 74,859 | 62,606 | $ | 16,511 | (3,911 | ) | Interest expense | $ | (4,701 | ) | (8,054 | ) | Interest expense, net | $ | 111,477 | 97,285 |
June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
(in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Notes receivable | $ | — | — | $ | 15,803 | 15,660 | $ | — | — | $ | 15,803 | 15,660 | ||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Notes payable | $ | 3,118,002 | 3,081,052 | $ | 2,971,715 | 3,058,044 | $ | 3,008,592 | 2,952,604 | $ | 2,971,715 | 3,058,044 | ||||||||||||||
Unsecured credit facilities | $ | 713,498 | 715,000 | $ | 623,262 | 625,000 | $ | 708,616 | 710,000 | $ | 623,262 | 625,000 |
Fair Value Measurements as of June 30, 2018 | Fair Value Measurements as of September 30, 2018 | |||||||||||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||
Assets: | Balance | (Level 1) | (Level 2) | (Level 3) | Balance | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Securities | $ | 35,079 | 35,079 | — | — | $ | 36,027 | 36,027 | — | — | ||||||||||||||
Available-for-sale debt securities | 7,593 | — | 7,593 | — | 7,987 | — | 7,987 | — | ||||||||||||||||
Interest rate derivatives | 25,472 | — | 25,472 | — | 26,802 | — | 26,802 | — | ||||||||||||||||
Total | $ | 68,144 | 35,079 | 33,065 | — | $ | 70,816 | 36,027 | 34,789 | — |
Fair Value Measurements as of December 31, 2017 | ||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||
Assets: | Balance | (Level 1) | (Level 2) | (Level 3) | ||||||||
Securities | $ | 31,662 | 31,662 | — | — | |||||||
Available-for-sale debt securities | 9,974 | — | 9,974 | — | ||||||||
Interest rate derivatives | 14,515 | — | 14,515 | — | ||||||||
Total | $ | 56,151 | 31,662 | 24,489 | — | |||||||
Liabilities: | ||||||||||||
Interest rate derivatives | $ | (177 | ) | — | (177 | ) | — |
Fair Value Measurements as of June 30, 2018 | |||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Gains | |||||||||||
Assets: | Balance | (Level 1) | (Level 2) | (Level 3) | (Losses) | ||||||||||
Long-lived assets held for sale | |||||||||||||||
Properties held for sale | $ | 22,054 | — | 48,254 | — | (26,200 | ) |
Controlling Interest | Noncontrolling Interest | Total | Controlling Interests | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||
(in thousands) | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | AOCI | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | AOCI | ||||||||||||||||||||||||||||
Balance as of December 31, 2016 | $ | (18,327 | ) | (19 | ) | (18,346 | ) | (301 | ) | — | (301 | ) | (18,647 | ) | $ | (18,327 | ) | (19 | ) | (18,346 | ) | (301 | ) | — | (301 | ) | (18,647 | ) | ||||||||||||||
Other comprehensive income before reclassifications | (3,770 | ) | 43 | (3,727 | ) | (103 | ) | — | (103 | ) | (3,830 | ) | (3,768 | ) | 51 | (3,717 | ) | (143 | ) | — | (143 | ) | (3,860 | ) | ||||||||||||||||||
Amounts reclassified from AOCI (1) | 5,638 | — | 5,638 | 88 | — | 88 | 5,726 | 7,922 | — | 7,922 | 132 | — | 132 | 8,054 | ||||||||||||||||||||||||||||
Current period other comprehensive income, net | 1,868 | 43 | 1,911 | (15 | ) | — | (15 | ) | 1,896 | 4,154 | 51 | 4,205 | (11 | ) | — | (11 | ) | 4,194 | ||||||||||||||||||||||||
Balance as of June 30, 2017 | $ | (16,459 | ) | 24 | (16,435 | ) | (316 | ) | — | (316 | ) | (16,751 | ) | |||||||||||||||||||||||||||||
Balance as of September 30, 2017 | $ | (14,173 | ) | 32 | (14,141 | ) | (312 | ) | — | (312 | ) | (14,453 | ) | |||||||||||||||||||||||||||||
(1) Amounts reclassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | (1) Amounts reclassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | |||||||||||||||||||||||||||||||||||||||||
Controlling Interests | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | AOCI | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (6,262 | ) | (27 | ) | (6,289 | ) | (112 | ) | — | (112 | ) | (6,401 | ) | ||||||||||||||||||||||||||||
Opening adjustment due to change in accounting policy (2) | 12 | — | 12 | 2 | — | 2 | 14 | |||||||||||||||||||||||||||||||||||
Adjusted balance as of January 1, 2018 | (6,250 | ) | (27 | ) | (6,277 | ) | (110 | ) | — | (110 | ) | (6,387 | ) | |||||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 15,731 | (51 | ) | 15,680 | 780 | — | 780 | 16,460 | ||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI (1) | 4,663 | — | 4,663 | 38 | — | 38 | 4,701 | |||||||||||||||||||||||||||||||||||
Current period other comprehensive income, net | 20,394 | (51 | ) | 20,343 | 818 | — | 818 | 21,161 | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2018 | $ | 14,144 | (78 | ) | 14,066 | 708 | — | 708 | 14,774 | |||||||||||||||||||||||||||||||||
(1) Amounts recelassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | (1) Amounts recelassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | (1) Amounts recelassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | ||||||||||||||||||||||||||||||||||||||||
(2) Upon adoption of ASU 2017-12, the Company recognized the immaterial adjustment to opening retained earnings and AOCI for previously recognized hedge ineffectiveness from off-market hedges, as further discussed in note 1. | (2) Upon adoption of ASU 2017-12, the Company recognized the immaterial adjustment to opening retained earnings and AOCI for previously recognized hedge ineffectiveness from off-market hedges, as further discussed in note 1. |
Controlling Interest | Noncontrolling Interest | Total | |||||||||||||||||||
(in thousands) | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | Cash Flow Hedges | Unrealized gain (loss) on Available-For-Sale Debt Securities | AOCI | AOCI | ||||||||||||||
Balance as of December 31, 2017 | $ | (6,262 | ) | (27 | ) | (6,289 | ) | (112 | ) | — | (112 | ) | (6,401 | ) | |||||||
Opening adjustment due to change in accounting policy (2) | 12 | — | 12 | 2 | — | 2 | 14 | ||||||||||||||
Adjusted balance as of December 31, 2017 | (6,250 | ) | (27 | ) | (6,277 | ) | (110 | ) | — | (110 | ) | (6,387 | ) | ||||||||
Other comprehensive income before reclassifications | 13,156 | (75 | ) | 13,081 | 638 | — | 638 | 13,719 | |||||||||||||
Amounts reclassified from AOCI (1) | 3,513 | — | 3,513 | 40 | — | 40 | 3,553 | ||||||||||||||
Current period other comprehensive income, net | 16,669 | (75 | ) | 16,594 | 678 | — | 678 | 17,272 | |||||||||||||
Balance as of June 30, 2018 | $ | 10,419 | (102 | ) | 10,317 | 568 | — | 568 | 10,885 | ||||||||||||
(1) Amounts recelassified from AOCI into income are presented within Interest expense, net in the Consolidated Statement of Operations. | |||||||||||||||||||||
(2) Upon adoption of ASU 2017-12, the Company recognized the immaterial adjustment to opening retained earnings and AOCI for previously recognized hedge ineffectiveness from off-market hedges, as further discussed in note 1. |
(in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||
Assets: | ||||||||||||
Equity securities (1) | $ | 33,061 | 31,662 | $ | 33,907 | 31,662 | ||||||
Liabilities: | ||||||||||||
Accounts payable and other liabilities | $ | 32,811 | 31,383 | $ | 33,716 | 31,383 | ||||||
(1) Included within Other assets in the accompanying Consolidated Balance Sheets. | (1) Included within Other assets in the accompanying Consolidated Balance Sheets. | (1) Included within Other assets in the accompanying Consolidated Balance Sheets. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||
Income from operations attributable to common stockholders - basic | $ | 47,841 | 48,368 | $ | 100,500 | 15,144 | $ | 69,722 | 59,666 | $ | 170,222 | 74,810 | ||||||||||||||||
Income from operations attributable to common stockholders - diluted | $ | 47,841 | 48,368 | $ | 100,500 | 15,144 | $ | 69,722 | 59,666 | $ | 170,222 | 74,810 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Weighted average common shares outstanding for basic EPS | 169,424 | 170,088 | 170,056 | 148,610 | 169,438 | 170,105 | 169,847 | 155,881 | ||||||||||||||||||||
Weighted average common shares outstanding for diluted EPS (1) | 169,682 | 170,420 | 170,291 | 148,930 | 169,839 | 170,466 | 170,166 | 156,190 | ||||||||||||||||||||
Income per common share – basic | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||||||
Income per common share – diluted | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||||||
(1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. | (1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. | (1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||
Income from operations attributable to common unit holders - basic | $ | 47,941 | 48,472 | $ | 100,712 | 15,229 | $ | 69,869 | 59,798 | $ | 170,580 | 75,027 | ||||||||||||||||
Income from operations attributable to common unit holders - diluted | $ | 47,941 | 48,472 | $ | 100,712 | 15,229 | $ | 69,869 | 59,798 | $ | 170,580 | 75,027 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Weighted average common units outstanding for basic EPU | 169,774 | 170,410 | 170,406 | 148,849 | 169,788 | 170,455 | 170,197 | 156,158 | ||||||||||||||||||||
Weighted average common units outstanding for diluted EPU (1) | 170,032 | 170,742 | 170,641 | 149,169 | 170,189 | 170,816 | 170,516 | 156,467 | ||||||||||||||||||||
Income per common unit – basic | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||||||
Income per common unit – diluted | $ | 0.28 | 0.28 | $ | 0.59 | 0.10 | $ | 0.41 | 0.35 | $ | 1.00 | 0.48 | ||||||||||||||||
(1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. | (1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. | (1) Includes the dilutive impact of unvested restricted stock and shares issuable under the forward equity offering, that were fully settled on December 14, 2017, using the treasury stock method. |
(GLA in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||
Number of Properties | 309 | 311 | 306 | 311 | ||||
Properties in Development | 6 | 8 | 6 | 8 | ||||
GLA | 38,641 | 38,743 | 38,095 | 38,743 | ||||
% Leased – Operating and Development | 95.2% | 95.5% | 95.6% | 95.5% | ||||
% Leased – Operating | 95.5% | 96.0% | 95.9% | 96.0% | ||||
Weighted average annual effective rent per square foot ("PSF"), net of tenant concessions. | $21.42 | $21.01 | $21.55 | $21.01 |
(GLA in thousands) | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||
Number of Properties | 119 | 115 | 120 | 115 | ||||
Properties in Development | 2 | 1 | 2 | 1 | ||||
GLA | 15,470 | 15,138 | 15,552 | 15,138 | ||||
% Leased – Operating and Development | 94.0% | 95.9% | 94.5% | 95.9% | ||||
% Leased –Operating | 94.5% | 96.2% | 94.9% | 96.2% | ||||
Weighted average annual effective rent PSF, net of tenant concessions | $21.07 | $20.63 | $21.23 | $20.63 |
June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||
% Leased – Operating | 95.4% | 96.2% | 95.8% | 96.2% | ||||
Anchor space | 97.3% | 98.3% | 97.9% | 98.3% | ||||
Shop space | 92.1% | 92.5% | 92.2% | 92.5% |
Six months ended June 30, 2018 | Nine months ended September 30, 2018 | |||||||||||||||||||||||||||||||
Leasing Transactions (1) | SF (in thousands) | Base Rent PSF | Tenant Allowance and Landlord Work PSF | Leasing Commissions PSF | Leasing Transactions (1) | SF (in thousands) | Base Rent PSF | Tenant Allowance and Landlord Work PSF | Leasing Commissions PSF | |||||||||||||||||||||||
Anchor Leases | ||||||||||||||||||||||||||||||||
New | 11 | 151 | $ | 20.10 | $ | 43.12 | $ | 8.39 | 20 | 338 | $ | 18.84 | $ | 33.66 | $ | 6.89 | ||||||||||||||||
Renewal | 35 | 808 | $ | 16.10 | $ | 0.70 | $ | 0.39 | 64 | 1,918 | $ | 13.88 | $ | 0.40 | $ | 0.33 | ||||||||||||||||
Total Anchor Leases (1) | 46 | 959 | $ | 16.73 | $ | 7.38 | $ | 1.65 | 84 | 2,256 | $ | 14.62 | $ | 5.38 | $ | 1.31 | ||||||||||||||||
Shop Space | ||||||||||||||||||||||||||||||||
New | 269 | 453 | $ | 33.53 | $ | 26.65 | $ | 13.80 | 388 | 635 | $ | 32.85 | $ | 26.41 | $ | 13.33 | ||||||||||||||||
Renewal | 571 | 947 | $ | 33.17 | $ | 0.89 | $ | 2.04 | 869 | 1,425 | $ | 33.11 | $ | 0.85 | $ | 2.15 | ||||||||||||||||
Total Shop Space Leases (1) | 840 | 1,400 | $ | 33.28 | $ | 9.22 | $ | 5.85 | 1,257 | 2,060 | $ | 33.03 | $ | 8.73 | $ | 5.60 | ||||||||||||||||
Total Leases | 886 | 2,359 | $ | 26.55 | $ | 8.47 | $ | 4.14 | 1,341 | 4,316 | $ | 23.41 | $ | 6.98 | $ | 3.36 | ||||||||||||||||
(1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. | (1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. | (1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. |
Six months ended June 30, 2017 | Nine months ended September 30, 2017 | |||||||||||||||||||||||||||||||
Leasing Transactions (1,2) | SF (in thousands) | Base Rent PSF | Tenant Allowance and Landlord Work PSF | Leasing Commissions PSF | Leasing Transactions (1,2) | SF (in thousands) | Base Rent PSF | Tenant Allowance and Landlord Work PSF | Leasing Commissions PSF | |||||||||||||||||||||||
Anchor Leases | ||||||||||||||||||||||||||||||||
New | 18 | 488 | $ | 18.85 | $ | 20.42 | $ | 3.11 | 27 | 628 | $ | 18.80 | $ | 26.83 | $ | 5.06 | ||||||||||||||||
Renewal | 36 | 1,007 | $ | 16.28 | $ | — | $ | 0.68 | 64 | 1,946 | $ | 15.01 | $ | — | $ | 0.45 | ||||||||||||||||
Total Anchor Leases (1) | 54 | 1,495 | $ | 17.12 | $ | 6.67 | $ | 1.47 | 91 | 2,574 | $ | 15.94 | $ | 6.55 | $ | 1.57 | ||||||||||||||||
Shop Space | ||||||||||||||||||||||||||||||||
New | 245 | 416 | $ | 31.17 | $ | 24.06 | $ | 12.01 | 383 | 660 | $ | 31.77 | $ | 25.56 | $ | 12.21 | ||||||||||||||||
Renewal | 544 | 942 | $ | 31.31 | $ | 1.54 | $ | 2.85 | 834 | 1,392 | $ | 31.42 | $ | 1.67 | $ | 2.64 | ||||||||||||||||
Total Shop Space Leases (1) | 789 | 1,358 | $ | 31.27 | $ | 8.44 | $ | 5.65 | 1,217 | 2,052 | $ | 31.53 | $ | 9.35 | $ | 5.71 | ||||||||||||||||
Total Leases | 843 | 2,853 | $ | 23.85 | $ | 7.51 | $ | 3.46 | 1,308 | 4,626 | $ | 22.86 | $ | 7.79 | $ | 3.41 | ||||||||||||||||
(1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. | (1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. | (1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share. | ||||||||||||||||||||||||||||||
(2) For the period ending June 30, 2017, amounts include leasing activity of properties acquired from Equity One beginning March 1, 2017. | ||||||||||||||||||||||||||||||||
(2) For the period ending September 30, 2017, amounts include leasing activity of properties acquired from Equity One beginning March 1, 2017. | (2) For the period ending September 30, 2017, amounts include leasing activity of properties acquired from Equity One beginning March 1, 2017. |
June 30, 2018 | September 30, 2018 | |||||||||||
Grocery Anchor | Number of Stores | Percentage of Company- owned GLA (1) | Percentage of Annualized Base Rent (1) | Number of Stores | Percentage of Company- owned GLA (1) | Percentage of Annualized Base Rent (1) | ||||||
Publix | 69 | 6.2% | 3.1% | 69 | 6.3% | 3.2% | ||||||
Kroger | 58 | 6.6% | 3.1% | 57 | 6.6% | 3.1% | ||||||
Albertsons/Safeway | (2) | 46 | 4.0% | 2.8% | 46 | 4.1% | 2.8% | |||||
TJX Companies | 58 | 3.3% | 2.4% | 57 | 3.2% | 2.3% | ||||||
Whole Foods | 28 | 2.2% | 2.3% | 29 | 2.3% | 2.3% | ||||||
(1) Includes Regency's pro-rata share of Unconsolidated Properties and excludes those owned by anchors. | (1) Includes Regency's pro-rata share of Unconsolidated Properties and excludes those owned by anchors. | (1) Includes Regency's pro-rata share of Unconsolidated Properties and excludes those owned by anchors. | ||||||||||
(2) Upon completion of the pending merger of Albertsons Cos. and Rite Aid Corp., the combined company would represent a total of 59 stores, 4.6% of Company-owned GLA, and 3.1% of annualized base rent, based on active leases as of June 30, 2018. There is the possibility that store closures could occur as a result of the merger. |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Minimum rent | $ | 208,827 | 195,992 | 12,835 | $ | 204,005 | 195,393 | 8,612 | ||||||||||||
Percentage rent | 1,196 | 1,456 | (260 | ) | 1,224 | 1,147 | 77 | |||||||||||||
Recoveries from tenants | 59,591 | 53,504 | 6,087 | 60,393 | 54,483 | 5,910 | ||||||||||||||
Other income | 4,911 | 3,752 | 1,159 | 5,734 | 5,071 | 663 | ||||||||||||||
Management, transaction, and other fees | 6,887 | 6,601 | 286 | 6,954 | 6,047 | 907 | ||||||||||||||
Total revenues | $ | 281,412 | 261,305 | 20,107 | $ | 278,310 | 262,141 | 16,169 |
◦ | $ |
◦ | $ |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Depreciation and amortization | $ | 89,105 | 92,230 | (3,125 | ) | $ | 89,183 | 91,474 | (2,291 | ) | ||||||||||
Operating and maintenance | 41,851 | 36,105 | 5,746 | 40,557 | 38,020 | 2,537 | ||||||||||||||
General and administrative | 16,776 | 16,746 | 30 | 17,564 | 15,199 | 2,365 | ||||||||||||||
Real estate taxes | 31,541 | 28,871 | 2,670 | 35,129 | 29,315 | 5,814 | ||||||||||||||
Other operating expenses | 2,799 | 6,862 | (4,063 | ) | 2,045 | 3,195 | (1,150 | ) | ||||||||||||
Total operating expenses | $ | 182,072 | 180,814 | 1,258 | $ | 184,478 | 177,203 | 7,275 |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Interest expense, net | ||||||||||||||||||||
Interest on notes payable | $ | 33,102 | 31,302 | 1,800 | $ | 31,619 | 31,577 | 42 | ||||||||||||
Interest on unsecured credit facilities | 5,000 | 4,313 | 687 | 5,025 | 3,974 | 1,051 | ||||||||||||||
Capitalized interest | (1,970 | ) | (2,033 | ) | 63 | (1,670 | ) | (2,488 | ) | 818 | ||||||||||
Hedge expense | 2,102 | 2,102 | — | 2,102 | 2,102 | — | ||||||||||||||
Interest income | (160 | ) | (277 | ) | 117 | (458 | ) | (486 | ) | 28 | ||||||||||
Interest expense, net | 38,074 | 35,407 | 2,667 | $ | 36,618 | 34,679 | 1,939 | |||||||||||||
Provision for impairment, net of tax | 12,533 | — | 12,533 | 855 | — | 855 | ||||||||||||||
Early extinguishment of debt | 11,010 | 12,404 | (1,394 | ) | ||||||||||||||||
Net investment income | (569 | ) | (887 | ) | 318 | (923 | ) | (971 | ) | 48 | ||||||||||
Total other expense (income) | $ | 61,048 | 46,924 | 14,124 | $ | 36,550 | 33,708 | 2,842 |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||||
(in thousands) | Regency's Ownership | 2018 | 2017 | Change | Regency's Ownership | 2018 | 2017 | Change | ||||||||||||||
GRI - Regency, LLC (GRIR) | 40.00% | $ | 7,220 | 6,805 | 415 | 40.00% | $ | 7,733 | 6,917 | 816 | ||||||||||||
New York Common Retirement Fund (NYC) | 30.00% | 34 | 169 | (135 | ) | 30.00% | 207 | 183 | 24 | |||||||||||||
Columbia Regency Retail Partners, LLC (Columbia I) | 20.00% | 346 | 2,743 | (2,397 | ) | 20.00% | 360 | 284 | 76 | |||||||||||||
Columbia Regency Partners II, LLC (Columbia II) | 20.00% | 385 | 365 | 20 | 20.00% | 449 | 332 | 117 | ||||||||||||||
Cameron Village, LLC (Cameron) | 30.00% | 241 | 204 | 37 | 30.00% | 218 | 174 | 44 | ||||||||||||||
RegCal, LLC (RegCal) | 25.00% | 392 | 329 | 63 | 25.00% | 327 | 331 | (4 | ) | |||||||||||||
US Regency Retail I, LLC (USAA) | 20.01% | 220 | 285 | (65 | ) | 20.01% | 233 | 3,599 | (3,366 | ) | ||||||||||||
Other investments in real estate partnerships | 49.90% - 50.00% | 336 | 1,340 | (1,004 | ) | 49.90% - 50.00% | 497 | 401 | 96 | |||||||||||||
Total equity in income of investments in real estate partnerships | Total equity in income of investments in real estate partnerships | $ | 9,174 | 12,240 | (3,066 | ) | Total equity in income of investments in real estate partnerships | $ | 10,024 | 12,221 | (2,197 | ) |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Income from operations | $ | 47,466 | 45,807 | 1,659 | $ | 67,306 | 63,451 | 3,855 | ||||||||||||
Gain on sale of real estate, net of tax | 1,123 | 4,366 | (3,243 | ) | 3,228 | 131 | 3,097 | |||||||||||||
Income attributable to noncontrolling interests | (748 | ) | (680 | ) | (68 | ) | (812 | ) | (769 | ) | (43 | ) | ||||||||
Preferred stock dividends and issuance costs | — | (1,125 | ) | 1,125 | — | (3,147 | ) | 3,147 | ||||||||||||
Net income attributable to common stockholders | $ | 47,841 | 48,368 | (527 | ) | $ | 69,722 | 59,666 | 10,056 | |||||||||||
Net income attributable to exchangeable operating partnership units | 100 | 104 | (4 | ) | 147 | 132 | 15 | |||||||||||||
Net income attributable to common unit holders | $ | 47,941 | 48,472 | (531 | ) | $ | 69,869 | 59,798 | 10,071 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Minimum rent | $ | 410,219 | 337,232 | 72,987 | $ | 614,224 | 532,625 | 81,599 | ||||||||||||
Percentage rent | 5,068 | 4,362 | 706 | 6,292 | 5,509 | 783 | ||||||||||||||
Recoveries from tenants | 118,473 | 95,328 | 23,145 | 178,865 | 149,811 | 29,054 | ||||||||||||||
Other income | 10,300 | 7,207 | 3,093 | 16,035 | 12,278 | 3,757 | ||||||||||||||
Management, transaction, and other fees | 14,045 | 13,307 | 738 | 20,999 | 19,353 | 1,646 | ||||||||||||||
Total revenues | $ | 558,105 | 457,436 | 100,669 | $ | 836,415 | 719,576 | 116,839 |
◦ | $ |
▪ | $ |
▪ | $ |
◦ | $6.2 million increase in other above/below market lease intangibles; |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Depreciation and amortization | $ | 177,629 | 152,284 | 25,345 | $ | 266,812 | 243,757 | 23,055 | ||||||||||||
Operating and maintenance | 84,367 | 65,868 | 18,499 | 124,924 | 103,888 | 21,036 | ||||||||||||||
General and administrative | 34,382 | 34,419 | (37 | ) | 51,947 | 49,618 | 2,329 | |||||||||||||
Real estate taxes | 61,967 | 50,321 | 11,646 | 97,096 | 79,636 | 17,460 | ||||||||||||||
Other operating expenses | 4,432 | 78,425 | (73,993 | ) | 6,476 | 81,621 | (75,145 | ) | ||||||||||||
Total operating expenses | $ | 362,777 | 381,317 | (18,540 | ) | $ | 547,255 | 558,520 | (11,265 | ) |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Interest expense, net | ||||||||||||||||||||
Interest on notes payable | $ | 66,070 | 55,915 | 10,155 | $ | 97,689 | 87,492 | 10,197 | ||||||||||||
Interest on unsecured credit facilities | 9,289 | 6,744 | 2,545 | 14,314 | 10,718 | 3,596 | ||||||||||||||
Capitalized interest | (4,150 | ) | (3,290 | ) | (860 | ) | (5,820 | ) | (5,778 | ) | (42 | ) | ||||||||
Hedge expense | 4,204 | 4,204 | — | 6,306 | 6,305 | 1 | ||||||||||||||
Interest income | (554 | ) | (967 | ) | 413 | (1,012 | ) | (1,452 | ) | 440 | ||||||||||
Interest expense, net | 74,859 | 62,606 | 12,253 | $ | 111,477 | 97,285 | 14,192 | |||||||||||||
Provision for impairment, net of tax | 28,587 | — | 28,587 | 29,443 | — | 29,443 | ||||||||||||||
Early extinguishment of debt | 11,172 | 12,404 | (1,232 | ) | 11,172 | 12,404 | (1,232 | ) | ||||||||||||
Net investment income | (602 | ) | (1,984 | ) | 1,382 | (1,524 | ) | (2,955 | ) | 1,431 | ||||||||||
Total other expense (income) | $ | 114,016 | 73,026 | 40,990 | $ | 150,568 | 106,734 | 43,834 |
◦ | $ |
◦ | $7.0 million increase from issuance of $300 million of new unsecured debt in March 2018; |
◦ | $3.2 million of additional interest on notes payable assumed with the Equity One merger; offset by |
◦ | $ |
◦ | $3.1 million decrease in mortgage interest expense due mortgage payoffs during 2018 and 2017. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||
(in thousands) | Ownership | 2018 | 2017 | Change | Ownership | 2018 | 2017 | Change | ||||||||||||||
GRI - Regency, LLC (GRIR) | 40.00% | $ | 14,738 | 13,874 | 864 | 40.00% | $ | 22,471 | 20,791 | 1,680 | ||||||||||||
New York Common Retirement Fund (NYC) | 30.00% | 6 | 234 | (228 | ) | 30.00% | 213 | 417 | (204 | ) | ||||||||||||
Columbia Regency Retail Partners, LLC (Columbia I) | 20.00% | 584 | 3,060 | (2,476 | ) | 20.00% | 944 | 3,344 | (2,400 | ) | ||||||||||||
Columbia Regency Partners II, LLC (Columbia II) | 20.00% | 849 | 740 | 109 | 20.00% | 1,298 | 1,072 | 226 | ||||||||||||||
Cameron Village, LLC (Cameron) | 30.00% | 485 | 462 | 23 | 30.00% | 703 | 636 | 67 | ||||||||||||||
RegCal, LLC (RegCal) | 25.00% | 828 | 679 | 149 | 25.00% | 1,155 | 1,010 | 145 | ||||||||||||||
US Regency Retail I, LLC (USAA) | 20.01% | 455 | 652 | (197 | ) | 20.01% | 688 | 4,251 | (3,563 | ) | ||||||||||||
Other investments in real estate partnerships | 49.90% | 1,578 | 1,882 | (304 | ) | 49.90% | 2,076 | 2,283 | (207 | ) | ||||||||||||
Total equity in income of investments in real estate partnerships | Total equity in income of investments in real estate partnerships | $ | 19,523 | 21,583 | (2,060 | ) | Total equity in income of investments in real estate partnerships | $ | 29,548 | 33,804 | (4,256 | ) |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Income from operations | $ | 100,835 | 24,676 | 76,159 | $ | 168,140 | 88,126 | 80,014 | ||||||||||||
Gain on sale of real estate, net of tax | 1,219 | 4,781 | (3,562 | ) | 4,448 | 4,913 | (465 | ) | ||||||||||||
Income attributable to noncontrolling interests | (1,554 | ) | (1,332 | ) | (222 | ) | (2,366 | ) | (2,101 | ) | (265 | ) | ||||||||
Preferred stock dividends and issuance costs | — | (12,981 | ) | 12,981 | — | (16,128 | ) | 16,128 | ||||||||||||
Net income attributable to common stockholders | $ | 100,500 | 15,144 | 85,356 | $ | 170,222 | 74,810 | 95,412 | ||||||||||||
Net income attributable to exchangeable operating partnership units | 212 | 85 | 127 | 358 | 217 | 141 | ||||||||||||||
Net income attributable to common unit holders | $ | 100,712 | 15,229 | 85,483 | $ | 170,580 | 75,027 | 95,553 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 (1) | Change | 2018 | 2017 | Change | 2018 | 2017 (1) | Change | ||||||||||||||||||||||||||||
Base rent | $ | 209,256 | 202,431 | 6,825 | $ | 417,423 | 402,835 | 14,588 | $ | 208,247 | 200,866 | 7,381 | $ | 620,762 | 598,763 | 21,999 | ||||||||||||||||||||||||
Percentage rent | 1,475 | 1,806 | (331 | ) | 5,908 | 6,527 | (619 | ) | 1,353 | 1,274 | 79 | 7,243 | 7,799 | (556 | ) | |||||||||||||||||||||||||
Recoveries from tenants | 65,852 | 60,536 | 5,316 | 131,641 | 123,449 | 8,192 | 65,785 | 60,184 | 5,601 | 196,175 | 182,323 | 13,852 | ||||||||||||||||||||||||||||
Other income | 4,879 | 3,456 | 1,423 | 10,299 | 7,820 | 2,479 | 5,645 | 5,039 | 606 | 15,838 | 12,770 | 3,068 | ||||||||||||||||||||||||||||
Operating expenses | 80,038 | 73,755 | 6,283 | 160,333 | 151,020 | 9,313 | 81,108 | 73,650 | 7,458 | 239,803 | 223,126 | 16,677 | ||||||||||||||||||||||||||||
Pro-rata same property NOI, as adjusted | $ | 201,424 | 194,474 | 6,950 | $ | 404,938 | 389,611 | 15,327 | $ | 199,922 | 193,713 | 6,209 | $ | 600,215 | 578,529 | 21,686 | ||||||||||||||||||||||||
Less: Termination fees | (1,262 | ) | 24 | (1,286 | ) | (210 | ) | 504 | (714 | ) | 882 | 264 | 618 | 672 | 768 | (96 | ) | |||||||||||||||||||||||
Pro-rata same property NOI, as adjusted, excluding termination fees | $ | 202,686 | 194,450 | 8,236 | $ | 405,148 | 389,107 | 16,041 | $ | 199,040 | 193,449 | 5,591 | $ | 599,543 | 577,761 | 21,782 | ||||||||||||||||||||||||
Pro-rata same property NOI growth, as adjusted, excluding termination fees | 4.2 | % | 4.1 | % | 2.9 | % | 3.8 | % | ||||||||||||||||||||||||||||||||
(1) Adjusted for Equity One operating results prior to the merger for these periods. For additional information and details about the Equity One operating results included herein, refer to the Same Property NOI Reconciliation at the end of the Supplemental Earnings section. | (1) Adjusted for Equity One operating results prior to the merger for these periods. For additional information and details about the Equity One operating results included herein, refer to the Same Property NOI Reconciliation at the end of the Supplemental Earnings section. | (1) Adjusted for Equity One operating results prior to the merger for these periods. For additional information and details about the Equity One operating results included herein, refer to the Same Property NOI Reconciliation at the end of the Supplemental Earnings section. |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
(GLA in thousands) | Property Count | GLA | Property Count | GLA | Property Count | GLA | Property Count | GLA | ||||||||||
Beginning same property count | 409 | 41,961 | 402 | 41,120 | 406 | 41,758 | 400 | 41,076 | ||||||||||
Disposed properties | (3 | ) | (227 | ) | (2 | ) | (57 | ) | (3 | ) | (499 | ) | (1 | ) | (24 | ) | ||
SF adjustments (1) | — | 24 | — | 13 | — | (41 | ) | — | 21 | |||||||||
Ending same property count | 406 | 41,758 | 400 | 41,076 | 403 | 41,218 | 399 | 41,073 | ||||||||||
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
(GLA in thousands) | Property Count | GLA | Property Count | GLA | Property Count | GLA | Property Count | GLA | ||||||||||
Beginning same property count | 395 | 40,601 | 289 | 26,392 | 395 | 40,601 | 289 | 26,392 | ||||||||||
Acquired properties owned for entirety of comparable periods | 7 | 918 | 1 | 180 | 7 | 917 | 1 | 180 | ||||||||||
Developments that reached completion by beginning of earliest comparable period presented | 8 | 512 | 2 | 330 | 8 | 512 | 2 | 331 | ||||||||||
Disposed properties | (4 | ) | (304 | ) | (2 | ) | (57 | ) | (7 | ) | (804 | ) | (3 | ) | (82 | ) | ||
SF adjustments (1) | — | 31 | — | 50 | — | (8 | ) | — | 71 | |||||||||
Properties acquired through Equity One merger | — | — | 110 | 14,181 | — | — | 110 | 14,181 | ||||||||||
Ending same property count | 406 | 41,758 | 400 | 41,076 | 403 | 41,218 | 399 | 41,073 | ||||||||||
(1) SF adjustments arise from remeasurements or redevelopments. | (1) SF adjustments arise from remeasurements or redevelopments. | (1) SF adjustments arise from remeasurements or redevelopments. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(in thousands, except share information) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Reconciliation of Net income to NAREIT FFO | ||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 47,841 | 48,368 | $ | 100,500 | 15,144 | $ | 69,722 | 59,666 | $ | 170,222 | 74,810 | ||||||||||||||||
Adjustments to reconcile to NAREIT FFO:(1) | ||||||||||||||||||||||||||||
Depreciation and amortization (excluding FF&E) | 97,189 | 100,144 | 193,386 | 167,589 | 96,795 | 99,284 | 290,182 | 266,873 | ||||||||||||||||||||
Provision for impairment to operating properties | 12,440 | — | 28,494 | — | 407 | — | 28,901 | — | ||||||||||||||||||||
Gain on sale of operating properties, net of tax | (246 | ) | (5,054 | ) | (348 | ) | (5,065 | ) | (3,610 | ) | (3,349 | ) | (3,958 | ) | (8,415 | ) | ||||||||||||
Exchangeable operating partnership units | 100 | 104 | 212 | 85 | 147 | 132 | 358 | 217 | ||||||||||||||||||||
NAREIT FFO attributable to common stock and unit holders | $ | 157,324 | 143,562 | $ | 322,244 | 177,753 | $ | 163,461 | 155,733 | $ | 485,705 | 333,485 | ||||||||||||||||
(1) Includes Regency's pro-rate share of unconsolidated investment partnerships, net of pro-rata share attributable to noncontrolling interest. | (1) Includes Regency's pro-rate share of unconsolidated investment partnerships, net of pro-rata share attributable to noncontrolling interest. | (1) Includes Regency's pro-rate share of unconsolidated investment partnerships, net of pro-rata share attributable to noncontrolling interest. |
Three months ended June 30, | Three months ended September 30, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Same Property | Other (1) | Total | Same Property | Other (1) | Total | Same Property | Other (1) | Total | Same Property | Other (1) | Total | ||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 108,511 | (60,670 | ) | 47,841 | $ | 112,931 | (64,563 | ) | 48,368 | $ | 105,470 | (35,748 | ) | 69,722 | $ | 140,194 | (80,528 | ) | 59,666 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Management, transaction, and other fees | — | 6,887 | 6,887 | — | 6,601 | 6,601 | — | 6,954 | 6,954 | — | 6,047 | 6,047 | ||||||||||||||||||||||||||||
Gain on sale of real estate, net of tax | — | 1,123 | 1,123 | — | 4,366 | 4,366 | — | 3,228 | 3,228 | — | 131 | 131 | ||||||||||||||||||||||||||||
Other (2) | 14,458 | 3,176 | 17,634 | 5,299 | 9,765 | 15,064 | 9,867 | 3,149 | 13,016 | 5,025 | 8,248 | 13,273 | ||||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 84,697 | 4,408 | 89,105 | 41,219 | 51,011 | 92,230 | 84,344 | 4,839 | 89,183 | 39,515 | 51,959 | 91,474 | ||||||||||||||||||||||||||||
General and administrative | — | 16,776 | 16,776 | — | 16,746 | 16,746 | — | 17,564 | 17,564 | (104 | ) | 15,303 | 15,199 | |||||||||||||||||||||||||||
Other operating expense, excluding provision for doubtful accounts | 244 | 1,236 | 1,480 | 84 | 5,613 | 5,697 | 237 | 672 | 909 | 247 | 1,883 | 2,130 | ||||||||||||||||||||||||||||
Other expense (income) | 7,395 | 53,653 | 61,048 | 21,814 | 25,110 | 46,924 | 5,949 | 30,601 | 36,550 | 7,321 | 26,387 | 33,708 | ||||||||||||||||||||||||||||
Equity in income (loss) of investments in real estate excluded from NOI (3) | 15,035 | 634 | 15,669 | 23,725 | (11,348 | ) | 12,377 | 13,789 | 534 | 14,323 | 11,565 | 244 | 11,809 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | 748 | 748 | — | 680 | 680 | — | 812 | 812 | — | 769 | 769 | ||||||||||||||||||||||||||||
Preferred stock dividends and issuance costs | — | — | — | — | 1,125 | 1,125 | — | — | — | — | 3,147 | 3,147 | ||||||||||||||||||||||||||||
Pro-rata NOI, as adjusted | $ | 201,424 | 5,599 | 207,023 | $ | 194,474 | 3,642 | 198,116 | $ | 199,922 | 5,943 | 205,865 | $ | 193,713 | 4,738 | 198,451 | ||||||||||||||||||||||||
(1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | (1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | (1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | ||||||||||||||||||||||||||||||||||||||
(2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | (2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | (2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | ||||||||||||||||||||||||||||||||||||||
(3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. | (3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. | (3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Same Property | Other (1) | Total | Same Property | Other (1) | Total | Same Property | Other (1) | Total | Same Property | Other (1) | Total | ||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 191,783 | (91,283 | ) | 100,500 | $ | 159,431 | (144,287 | ) | 15,144 | $ | 322,738 | (152,516 | ) | 170,222 | $ | 253,544 | (178,734 | ) | 74,810 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Management, transaction, and other fees | — | 14,045 | 14,045 | — | 13,307 | 13,307 | — | 20,999 | 20,999 | — | 19,353 | 19,353 | ||||||||||||||||||||||||||||
Gain on sale of real estate, net of tax | — | 1,219 | 1,219 | — | 4,781 | 4,781 | — | 4,448 | 4,448 | — | 4,913 | 4,913 | ||||||||||||||||||||||||||||
Other (2) | 25,527 | 6,280 | 31,807 | 19,098 | 4,164 | 23,262 | 35,791 | 9,031 | 44,822 | 29,758 | 6,776 | 36,534 | ||||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 167,601 | 10,028 | 177,629 | 149,805 | 2,479 | 152,284 | 248,574 | 18,238 | 266,812 | 236,570 | 7,187 | 243,757 | ||||||||||||||||||||||||||||
General and administrative | — | 34,382 | 34,382 | — | 34,419 | 34,419 | — | 51,947 | 51,947 | (313 | ) | 49,931 | 49,618 | |||||||||||||||||||||||||||
Other operating expense, excluding provision for doubtful accounts | 295 | 1,622 | 1,917 | 362 | 76,281 | 76,643 | 532 | 2,293 | 2,825 | 807 | 77,967 | 78,774 | ||||||||||||||||||||||||||||
Other expense (income) | 41,187 | 72,829 | 114,016 | 29,890 | 43,136 | 73,026 | 20,773 | 129,795 | 150,568 | 37,205 | 69,529 | 106,734 | ||||||||||||||||||||||||||||
Equity in income (loss) of investments in real estate excluded from NOI (3) | 29,599 | 1,163 | 30,762 | 25,898 | 812 | 26,710 | 43,389 | 1,694 | 45,083 | 37,463 | 1,056 | 38,519 | ||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | 1,554 | 1,554 | — | 1,332 | 1,332 | — | 2,366 | 2,366 | — | 2,101 | 2,101 | ||||||||||||||||||||||||||||
Preferred stock dividends and issuance costs | — | — | — | — | 12,981 | 12,981 | — | — | — | — | 16,128 | 16,128 | ||||||||||||||||||||||||||||
NOI from Equity One prior to merger (4) | — | — | — | 43,323 | — | 43,323 | — | — | — | 43,011 | — | 43,011 | ||||||||||||||||||||||||||||
Pro-rata NOI, as adjusted | $ | 404,938 | 8,751 | 413,689 | $ | 389,611 | 4,901 | 394,512 | $ | 600,215 | 19,339 | 619,554 | $ | 578,529 | 14,123 | 592,652 | ||||||||||||||||||||||||
(1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | (1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | (1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. | ||||||||||||||||||||||||||||||||||||||
(2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | (2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | (2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest. | ||||||||||||||||||||||||||||||||||||||
(3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. | (3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. | (3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties. | ||||||||||||||||||||||||||||||||||||||
(4) NOI from Equity One prior to the merger was derived from the accounting records of Equity One without adjustment. Equity One's financial information for the two month period ended February 28, 2017 was subject to a limited internal review by Regency. | (4) NOI from Equity One prior to the merger was derived from the accounting records of Equity One without adjustment. Equity One's financial information for the two month period ended February 28, 2017 was subject to a limited internal review by Regency. | (4) NOI from Equity One prior to the merger was derived from the accounting records of Equity One without adjustment. Equity One's financial information for the two month period ended February 28, 2017 was subject to a limited internal review by Regency. |
(in thousands) | Two Months Ended February 2017 | Two Months Ended February 2017 | ||||||
Base rent | $ | 44,963 | $ | 44,644 | ||||
Percentage rent | 1,267 | 1,265 | ||||||
Recoveries from tenants | 14,066 | 13,970 | ||||||
Other income | 614 | 612 | ||||||
Operating expenses | 17,587 | 17,480 | ||||||
Pro-rata same property NOI, as adjusted | $ | 43,323 | $ | 43,011 | ||||
Less: Termination fees | 30 | 30 | ||||||
Pro-rata same property NOI, as adjusted, excluding termination fees | $ | 43,293 | $ | 42,981 |
(in thousands) | June 30, 2018 | September 30, 2018 | ||||||
ATM equity program | ||||||||
Original offering amount | $ | 500,000 | $ | 500,000 | ||||
Available capacity | $ | 500,000 | $ | 500,000 | ||||
Line of Credit | ||||||||
Total commitment amount | $ | 1,250,000 | $ | 1,250,000 | ||||
Available capacity (1) | $ | 1,090,600 | $ | 1,095,600 | ||||
Maturity (2) | March 23, 2022 | March 23, 2022 | ||||||
(1) Net of letters of credit. | (1) Net of letters of credit. | (1) Net of letters of credit. | ||||||
(2) The Company has the option to extend the maturity for two additional six-month periods. | (2) The Company has the option to extend the maturity for two additional six-month periods. | (2) The Company has the option to extend the maturity for two additional six-month periods. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Net cash provided by operating activities | $ | 300,906 | 177,070 | 123,836 | $ | 464,755 | 345,426 | 119,329 | ||||||||||||
Net cash used in investing activities | (193,911 | ) | (768,185 | ) | 574,274 | (147,181 | ) | (857,743 | ) | 710,562 | ||||||||||
Net cash (used in) provided by financing activities | (113,136 | ) | 677,937 | (791,073 | ) | (322,469 | ) | 525,079 | (847,548 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (6,141 | ) | 86,822 | (92,963 | ) | $ | (4,895 | ) | 12,762 | (17,657 | ) | ||||||||
Total cash and cash equivalents and restricted cash | $ | 43,240 | 104,701 | (61,461 | ) | $ | 44,486 | 30,641 | 13,845 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Acquisition of operating real estate | $ | (85,766 | ) | (345 | ) | (85,421 | ) | $ | (85,766 | ) | (2,109 | ) | (83,657 | ) | ||||||
Advance deposits paid on acquisition of operating real estate | (2,025 | ) | (100 | ) | (1,925 | ) | (150 | ) | (350 | ) | 200 | |||||||||
Acquisition of Equity One, net of cash and restricted cash acquired of $72,784 | — | (646,984 | ) | 646,984 | ||||||||||||||||
Acquisition of Equity One, net of cash and restricted cash acquired of $74,507 | — | (646,790 | ) | 646,790 | ||||||||||||||||
Real estate development and capital improvements | (120,579 | ) | (159,889 | ) | 39,310 | (174,145 | ) | (240,827 | ) | 66,682 | ||||||||||
Proceeds from sale of real estate investments | 42,508 | 13,270 | 29,238 | 151,142 | 13,323 | 137,819 | ||||||||||||||
Proceeds from (issuance of) notes receivable | 15,648 | (2,837 | ) | 18,485 | 15,648 | (3,460 | ) | 19,108 | ||||||||||||
Investments in real estate partnerships | (45,451 | ) | (3,064 | ) | (42,387 | ) | (58,372 | ) | (12,296 | ) | (46,076 | ) | ||||||||
Distributions received from investments in real estate partnerships | 2,328 | 30,612 | (28,284 | ) | 5,488 | 36,603 | (31,115 | ) | ||||||||||||
Dividends on investment securities | 176 | 128 | 48 | 281 | 200 | 81 | ||||||||||||||
Acquisition of securities | (11,726 | ) | (9,853 | ) | (1,873 | ) | ||||||||||||||
Proceeds from sale of securities | 10,976 | 10,877 | 99 | |||||||||||||||||
Acquisition of investment securities | (16,946 | ) | (14,011 | ) | (2,935 | ) | ||||||||||||||
Proceeds from sale of investment securities | 15,639 | 11,974 | 3,665 | |||||||||||||||||
Net cash used in investing activities | $ | (193,911 | ) | (768,185 | ) | 574,274 | $ | (147,181 | ) | (857,743 | ) | 710,562 |
◦ | $39.3 million to fund our share of acquiring four operating properties, |
◦ | $1.5 million to acquire an interest in one land parcel for development, |
◦ | $15.4 million to fund our share of development and redevelopment activities, and |
◦ | $2.2 million to fund our share of maturing debt. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Capital expenditures: | ||||||||||||||||||||
Land acquisitions for development / redevelopment | $ | — | 20,835 | (20,835 | ) | $ | — | 20,834 | (20,834 | ) | ||||||||||
Building and tenant improvements | 31,061 | 19,458 | 11,603 | 50,052 | 31,130 | 18,922 | ||||||||||||||
Redevelopment costs | 31,072 | 65,463 | (34,391 | ) | 39,129 | 103,395 | (64,266 | ) | ||||||||||||
Development costs | 48,242 | 41,839 | 6,403 | 71,617 | 66,595 | 5,022 | ||||||||||||||
Capitalized interest | 3,865 | 3,290 | 575 | 5,338 | 5,778 | (440 | ) | |||||||||||||
Capitalized direct compensation | 6,339 | 9,004 | (2,665 | ) | 8,009 | 13,095 | (5,086 | ) | ||||||||||||
Real estate development and capital improvements | $ | 120,579 | 159,889 | (39,310 | ) | $ | 174,145 | 240,827 | (66,682 | ) |
(in thousands, except cost PSF) | (in thousands, except cost PSF) | June 30, 2018 | (in thousands, except cost PSF) | September 30, 2018 | ||||||||||||||||||||||||||||||||
Property Name | Market | Start Date | Estimated /Actual Anchor Opening | Estimated Net Development Costs (1) | % of Costs Incurred (1) | GLA | Cost PSF of GLA (1) | Market | Start Date | Estimated /Actual Anchor Opening | Estimated Net Development Costs (1) | % of Costs Incurred (1) | GLA | Cost PSF of GLA (1) | ||||||||||||||||||||||
The Market at Springwoods Village (2) | Houston , TX | Q1-16 | Nov-17 | $ | 25,373 | 93% | 167 | $ | 152 | Houston , TX | Q1-16 | Nov-17 | $ | 25,373 | 95% | 167 | $ | 152 | ||||||||||||||||||
The Village at Riverstone | Houston, TX | Q4-16 | Oct-18 | 30,658 | 67% | 167 | 184 | Houston, TX | Q4-16 | Sept-18 | 30,658 | 80% | 167 | 184 | ||||||||||||||||||||||
The Field at Commonwealth | Metro DC | Q1-17 | June-18 | 44,195 | 84% | 169 | 262 | Metro DC | Q1-17 | June-18 | 43,744 | 90% | 167 | 262 | ||||||||||||||||||||||
Pinecrest Place (3) | Miami, FL | Q1-17 | Jan-18 | 16,429 | 73% | 70 | 235 | Miami, FL | Q1-17 | Jan-18 | 16,429 | 81% | 67 | 245 | ||||||||||||||||||||||
Mellody Farm | Chicago, IL | Q2-17 | Oct-18 | 103,162 | 59% | 272 | 379 | Chicago, IL | Q2-17 | Sept-18 | 102,932 | 73% | 268 | 384 | ||||||||||||||||||||||
Indigo Square | Charleston, SC | Q4-17 | Feb-19 | 16,537 | 51% | 51 | 324 | Charleston, SC | Q4-17 | March-19 | 16,606 | 65% | 51 | 326 | ||||||||||||||||||||||
Total | $ | 236,354 | 67% | 896 | $ | 264 | $ | 235,742 | 78% | 887 | $ | 266 | ||||||||||||||||||||||||
(1) Includes leasing costs and is net of tenant reimbursements. | (1) Includes leasing costs and is net of tenant reimbursements. | (1) Includes leasing costs and is net of tenant reimbursements. | ||||||||||||||||||||||||||||||||||
(2) Estimated Net Development Costs are reported at full project cost. Our ownership interest in this consolidated property is 53%. Anchor rent commencement date was May 2017. | (2) Estimated Net Development Costs are reported at full project cost. Our ownership interest in this consolidated property is 53%. Anchor rent commencement date was May 2017. | (2) Estimated Net Development Costs are reported at full project cost. Our ownership interest in this consolidated property is 53%. Anchor rent commencement date was May 2017. | ||||||||||||||||||||||||||||||||||
(3) Estimated Net Development Costs for Pinecrest Place excludes the cost of land, which the Company has leased long term. | (3) Estimated Net Development Costs for Pinecrest Place excludes the cost of land, which the Company has leased long term. | (3) Estimated Net Development Costs for Pinecrest Place excludes the cost of land, which the Company has leased long term. |
(in thousands, except cost PSF) | (in thousands, except cost PSF) | June 30, 2018 | (in thousands, except cost PSF) | September 30, 2018 | ||||||||||||||||||||||||||||||||
Property Name | Market | Start Date | Estimated /Actual Anchor Opening | Estimated Net Development Costs (1) | % of Costs Incurred (1) | GLA | Cost PSF of GLA (1) | Market | Start Date | Estimated /Actual Anchor Opening | Estimated Net Development Costs (1) | % of Costs Incurred (1) | GLA | Cost PSF of GLA (1) | ||||||||||||||||||||||
Midtown East | Raleigh, NC | Q4-17 | Sept-19 | $ | 22,299 | 42% | 87 | $ | 256 | Raleigh, NC | Q4-17 | Sept-19 | $ | 22,298 | 53% | 87 | $ | 256 | ||||||||||||||||||
Ballard Blocks II | Seattle, WA | Q1-18 | Aug-19 | 31,286 | 21% | 57 | 549 | Seattle, WA | Q1-18 | Sept-19 | 32,170 | 31% | 57 | 564 | ||||||||||||||||||||||
Total | $ | 53,585 | 31% | 144 | $ | 372 | $ | 54,468 | 40% | 144 | $ | 378 | ||||||||||||||||||||||||
(1) Includes leasing costs and is net of tenant reimbursements. | (1) Includes leasing costs and is net of tenant reimbursements. | (1) Includes leasing costs and is net of tenant reimbursements. |
(in thousands, except cost PSF) | June 30, 2018 | |||||||||||||
Property Name | Location | Completion Date | Net Development Costs (1) | GLA | Cost per square foot GLA (1) | |||||||||
Northgate Marketplace Ph II | Medford, OR | Q2-18 | $ | 40,791 | 177 | $ | 230 | |||||||
Chimney Rock Crossing | New York, NY | Q2-18 | 70,105 | 218 | 322 | |||||||||
Total | $ | 110,896 | 395 | $ | 281 | |||||||||
(1) Includes leasing costs and is net of tenant reimbursements. |
(in thousands, except cost PSF) | September 30, 2018 | |||||||||||||
Property Name | Location | Completion Date | Net Development Costs (1) | GLA | Cost per square foot GLA (1) | |||||||||
Northgate Marketplace Ph II | Medford, OR | Q2-18 | $ | 40,791 | 177 | $ | 230 | |||||||
Chimney Rock Crossing | New York, NY | Q2-18 | 70,105 | 218 | 322 | |||||||||
Total | $ | 110,896 | 395 | $ | 281 | |||||||||
(1) Includes leasing costs and is net of tenant reimbursements. |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||||||
(in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repurchase of common shares in conjunction with equity award plans | (6,755 | ) | (18,998 | ) | 12,243 | $ | (6,772 | ) | (19,251 | ) | 12,479 | |||||||||
Common shares repurchased through share repurchase program | (124,989 | ) | — | (124,989 | ) | (124,989 | ) | — | (124,989 | ) | ||||||||||
Preferred stock redemption | — | (250,000 | ) | 250,000 | — | (325,000 | ) | 325,000 | ||||||||||||
Distributions to limited partners in consolidated partnerships, net | (2,159 | ) | (5,891 | ) | 3,732 | (3,457 | ) | (7,031 | ) | 3,574 | ||||||||||
Dividend payments | (188,948 | ) | (147,574 | ) | (41,374 | ) | (282,858 | ) | (238,275 | ) | (44,583 | ) | ||||||||
Unsecured credit facilities | 90,000 | 285,000 | (195,000 | ) | 85,000 | 300,000 | (215,000 | ) | ||||||||||||
Proceeds from debt issuance | 301,251 | 1,077,203 | (775,952 | ) | 301,251 | 1,080,114 | (778,863 | ) | ||||||||||||
Debt repayment | (172,203 | ) | (250,047 | ) | 77,844 | (281,295 | ) | (252,710 | ) | (28,585 | ) | |||||||||
Payment of loan costs | (9,432 | ) | (11,832 | ) | 2,400 | (9,448 | ) | (12,868 | ) | 3,420 | ||||||||||
Proceeds from sale of treasury stock | 99 | 76 | 23 | 99 | 100 | (1 | ) | |||||||||||||
Net cash (used in) provided by financing activities | $ | (113,136 | ) | 677,937 | (791,073 | ) | $ | (322,469 | ) | 525,079 | (847,548 | ) |
▪ | We borrowed, net of payments, an additional |
▪ | We received proceeds of $299.5 million upon issuance, in March, of $300.0 million of senior unsecured public notes and drew $1.7 million on a construction loan to fund an in-process development project. |
▪ | We paid |
▪ | We paid $9.4 million of loan costs in connection with our public note offering above and expanding our Line commitment. |
▪ | We received proceeds of $300.0 million upon closing a new term |
▪ | We received proceeds of |
* | $953.1 million, including debt premiums, from our $950.0 million senior unsecured public note issuances in January and June, |
* | $122.5 million from mortgage loans, and |
* | $4.5 million in construction loan proceeds. |
▪ | We paid |
▪ | We paid |
Combined | Regency's Share (1) | Combined | Regency's Share (1) | |||||||||||||||||||||||||
(dollars in thousands) | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||
Number of Co-investment Partnerships | 15 | 13 | 15 | 13 | ||||||||||||||||||||||||
Regency’s Ownership | 20%-50% | 20%-50% | 20%-50% | 20%-50% | ||||||||||||||||||||||||
Number of Properties | 119 | 115 | 120 | 115 | ||||||||||||||||||||||||
Assets | $ | 3,003,469 | 2,885,720 | $ | 1,050,388 | 1,002,767 | $ | 3,062,855 | 2,885,720 | $ | 1,066,725 | 1,002,767 | ||||||||||||||||
Liabilities | 1,638,248 | 1,627,693 | 563,321 | 557,699 | 1,677,944 | 1,627,693 | 572,826 | 557,699 | ||||||||||||||||||||
Equity | 1,365,221 | 1,258,027 | 487,067 | 445,068 | 1,384,911 | 1,258,027 | 493,899 | 445,068 | ||||||||||||||||||||
Negative investment in US Regency Retail I, LLC | Negative investment in US Regency Retail I, LLC | 3,397 | 11,290 | Negative investment in US Regency Retail I, LLC | 3,464 | 11,290 | ||||||||||||||||||||||
Basis difference | Basis difference | 40,259 | 40,351 | Basis difference | 40,191 | 40,351 | ||||||||||||||||||||||
Restricted Gain Method deferral (2) | Restricted Gain Method deferral (2) | — | (30,902 | ) | Restricted Gain Method deferral (2) | — | (30,902 | ) | ||||||||||||||||||||
Impairment of investment in real estate partnerships | Impairment of investment in real estate partnerships | (1,300 | ) | (1,300 | ) | Impairment of investment in real estate partnerships | (1,300 | ) | (1,300 | ) | ||||||||||||||||||
Net book equity in excess of purchase price | Net book equity in excess of purchase price | (78,203 | ) | (78,203 | ) | Net book equity in excess of purchase price | (78,203 | ) | (78,203 | ) | ||||||||||||||||||
Investments in real estate partnerships | Investments in real estate partnerships | $ | 451,220 | 386,304 | Investments in real estate partnerships | $ | 458,051 | 386,304 | ||||||||||||||||||||
(1) Pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. However, management believes that providing such information is useful to investors in assessing the impact of its investments in real estate partnership activities on our operations, which includes such items on a single line presentation under the equity method in our consolidated financial statements. | (1) Pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. However, management believes that providing such information is useful to investors in assessing the impact of its investments in real estate partnership activities on our operations, which includes such items on a single line presentation under the equity method in our consolidated financial statements. | (1) Pro-rata financial information is not, and is not intended to be, a presentation in accordance with GAAP. However, management believes that providing such information is useful to investors in assessing the impact of its investments in real estate partnership activities on our operations, which includes such items on a single line presentation under the equity method in our consolidated financial statements. | ||||||||||||||||||||||||||
(2) Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains through opening retained earnings, as discussed in note 1. | ||||||||||||||||||||||||||||
(2) Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains through opening retained earnings, as discussed in Note 1 to the unaudited Consolidated Financial Statements. | (2) Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains through opening retained earnings, as discussed in Note 1 to the unaudited Consolidated Financial Statements. |
(in thousands) | Regency's Ownership | June 30, 2018 | December 31, 2017 | |||||
GRI - Regency, LLC (GRIR) | 40.00% | $ | 199,702 | 198,521 | ||||
New York Common Retirement Fund (NYC) (1) | 30.00% | 52,512 | 53,277 | |||||
Columbia Regency Retail Partners, LLC (Columbia I) (2) | 20.00% | 13,405 | 7,057 | |||||
Columbia Regency Partners II, LLC (Columbia II) (2) | 20.00% | 35,798 | 13,720 | |||||
Cameron Village, LLC (Cameron) | 30.00% | 11,489 | 11,784 | |||||
RegCal, LLC (RegCal) (2) | 25.00% | 31,366 | 27,829 | |||||
Other investments in real estate partnerships (1) | 49.90% - 50.00% | 106,948 | 74,116 | |||||
Total investment in real estate partnerships | $ | 451,220 | 386,304 | |||||
(1) Includes investments in real estate partnerships acquired as part of the Equity One merger, which was effective on March 1, 2017. | ||||||||
(2) Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains with these partnerships through opening retained earnings and our investment in the partnerships, as discussed in note 1. |
(in thousands) | Regency's Ownership | September 30, 2018 | December 31, 2017 | |||||
GRI - Regency, LLC (GRIR) | 40.00% | $ | 199,644 | 198,521 | ||||
New York Common Retirement Fund (NYC) | 30.00% | 54,679 | 53,277 | |||||
Columbia Regency Retail Partners, LLC (Columbia I) (1) | 20.00% | 13,420 | 7,057 | |||||
Columbia Regency Partners II, LLC (Columbia II) (1) | 20.00% | 37,097 | 13,720 | |||||
Cameron Village, LLC (Cameron) | 30.00% | 11,317 | 11,784 | |||||
RegCal, LLC (RegCal) | 25.00% | 31,296 | 27,829 | |||||
Other investments in real estate partnerships | 49.90% - 50.00% | 110,598 | 74,116 | |||||
Total Investment in real estate partnerships | $ | 458,051 | 386,304 | |||||
US Regency Retail I, LLC (USAA) (2) | 20.01% | (3,464 | ) | (11,290 | ) | |||
Net Investment in real estate partnerships | $ | 454,587 | 375,014 | |||||
(1) Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains with these partnerships through opening retained earnings and our investment in the partnerships, as discussed in Note 1 to the unaudited Consolidated Financial Statements. | ||||||||
(2) The USAA partnership has distributed proceeds from debt financing and real estate sales in excess of Regency's carrying value of its investment, resulting in a negative investment balance, which is classified within Accounts payable and other liabilities in the Consolidated Balance Sheets. |
(in thousands) | June 30, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||
Scheduled Principal Payments and Maturities by Year: | Scheduled Principal Payments | Mortgage Loan Maturities | Unsecured Maturities | Total | Regency’s Pro-Rata Share | Scheduled Principal Payments | Mortgage Loan Maturities | Unsecured Maturities | Total | Regency’s Pro-Rata Share | ||||||||||||||||||||||
2018 | $ | 10,611 | 30,022 | — | 40,633 | 15,854 | $ | 5,164 | 30,022 | — | 35,186 | 13,877 | ||||||||||||||||||||
2019 | 19,852 | 73,259 | — | 93,111 | 24,448 | 20,062 | 65,939 | — | 86,001 | 22,294 | ||||||||||||||||||||||
2020 | 16,823 | 229,172 | 19,635 | 265,630 | 93,580 | 17,043 | 235,002 | — | 252,045 | 92,613 | ||||||||||||||||||||||
2021 | 10,818 | 269,942 | — | 280,760 | 100,402 | 11,048 | 269,942 | 32,835 | 313,825 | 107,015 | ||||||||||||||||||||||
2022 | 7,569 | 195,702 | — | 203,271 | 73,369 | 7,811 | 195,702 | — | 203,513 | 73,417 | ||||||||||||||||||||||
Beyond 5 Years | 3,011 | 633,298 | — | 636,309 | 215,071 | 6,793 | 654,795 | — | 661,588 | 220,127 | ||||||||||||||||||||||
Net unamortized loan costs, debt premium / (discount) | — | (9,142 | ) | — | (9,142 | ) | (2,938 | ) | — | (8,888 | ) | — | (8,888 | ) | (2,797 | ) | ||||||||||||||||
Total | $ | 68,684 | 1,422,253 | 19,635 | 1,510,572 | 519,786 | $ | 67,921 | 1,442,514 | 32,835 | 1,543,270 | 526,546 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Asset management, property management, leasing, and investment and financing services | $ | 6,664 | 6,318 | $ | 13,720 | 12,851 | $ | 6,744 | 5,884 | $ | 20,465 | 18,735 |
Period | Total number of shares purchased (1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number or approximate dollar value of shares that may yet be purchased under the plans or programs (2) | ||||||
July 1 through July 31, 2018 | — | $ | — | — | $ | 125,009,963 | ||||
August 1 through August 31, 2018 | 261 | $ | 65.06 | — | $ | 125,009,963 | ||||
September 1 through September 30, 2018 | — | $ | — | — | $ | 125,009,963 | ||||
(1) Includes 261 shares repurchased at an average price of $65.06 to cover payment of withholding taxes in connection with restricted stock vesting by participants under Regency's Long-Term Omnibus Plan. | ||||||||||
(2) On February 7, 2018, the Company's Board authorized a common share repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million of its outstanding common stock through open market purchases and/or in privately negotiated transactions. Any shares purchased will be retired. The program is scheduled to expire on February 6, 2020. Through September 30, 2018, the Company has repurchased 2,145,209 shares for $125.0 million. |
* | Furnished, not filed. |
REGENCY CENTERS CORPORATION | ||
By: | /s/ Lisa Palmer Lisa Palmer, President and Chief Financial Officer (Principal Financial Officer) | |
By: | /s/ J. Christian Leavitt J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer) |
REGENCY CENTERS, L.P. | ||
By: | Regency Centers Corporation, General Partner | |
By: | /s/ Lisa Palmer Lisa Palmer, President and Chief Financial Officer (Principal Financial Officer) | |
By: | /s/ J. Christian Leavitt J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer) |