EXHIBIT 99.1
Regency Centers Corporation
Press Release
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| www.RegencyCenters.com | | CONTACT: LISA PALMER (904) 598-7636 |
REGENCY CENTERS REPORTS SECOND QUARTER RESULTS
Jacksonville, Fla. (August 4, 2010)— Regency Centers Corporation announced today financial and operating results for the quarter ended June 30, 2010.
Earnings and Operations
Regency reported Recurring Funds From Operations (FFO) for the second quarter of $49.1 million, or $0.59 per diluted share, compared to $48.0 million and $0.62 per diluted share for the same period in 2009. For the six months ended June 30, 2010, Recurring FFO was $101.4 million and $1.22 per diluted share, compared to $101.2 million and $1.36 per diluted share for the same period last year.
Regency reported FFO for the second quarter of $48.5 million, or $0.58 per diluted share. FFO for the same period in 2009 was $19.2 million and $0.24 per diluted share. For the six months ended June 30, 2010, FFO was $97.2 million and $1.17 per diluted share, compared to $74.2 million and $1.00 per diluted share for the same period last year.
Regency reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT) as a supplemental performance measure. The Company considers this a meaningful performance measurement in the Real Estate Investment Trust industry. Regency also reports Recurring FFO as FFO excluding the impact of gains from the sale of development and outparcels, net of related taxes and dead deal costs, provisions for impairment, gains and losses from the early extinguishment of debt and preferred stock, restructuring charges, transaction fees and promotes and other one-time items.
Net income attributable to common stockholders for the quarter was $6.8 million, or $0.08 per diluted share, compared to a net loss of $17.2 million and $0.23 per diluted share loss for the same period in 2009. Net income for the six months ended June 30, 2010, was $19.1 million and $0.23 per diluted share, compared to $2.4 million and $0.03 per diluted share for the same period last year.
For the three months ended June 30, 2010, Regency’s results for wholly owned properties plus its pro-rata share of co-investment partnerships were as follows:
| | • | | Increase in same property net operating income over the same period last year: 3.5% |
| | • | | Same space rental rate decline on a cash basis: (0.1%) |
| | • | | Leasing transactions: 426 new and renewal lease transactions for a total of 1.5 million square feet |
For the six months ended June 30, 2010, Regency’s results for wholly owned properties plus its pro-rata share of co-investment partnerships were as follows:
| | • | | Percent leased, same properties only: 92.8% |
| | • | | Percent leased, operating and development properties: 91.7% |
| | • | | Increase in same property net operating income over the same period last year: 1.5% |
| | • | | Same space rental rate increase on a cash basis: 0.5% |
| | • | | Leasing transactions: 777 new and renewal lease transactions for a total of 2.7 million square feet |
Investments
Dispositions and Acquisitions
During the quarter Regency sold one co-investment operating property at a gross sales price of $15.3 million and a cap rate of 8.6%. Regency’s share of the purchase price was $6.1 million. Regency also sold three out parcels at a gross sales price of $4.0 million.
Development
There were no new development starts during the quarter. Two projects were completed during the quarter, representing $113.1 million of net development costs. At June 30, 2010, the Company had 36 projects under development with estimated net costs at completion of $609.0 million. The in-process developments are 92% funded and 80% leased.
Capital Markets
During the quarter, Regency completed the sale of $150 million of 6.0% ten-year senior unsecured notes. The notes are due June 15, 2020 and were priced at 99.299%. The net proceeds will be used to repay near-term maturing indebtedness and for general corporate purposes.
Partnership Financings
During the quarter Regency and Global Retail Investors, LLC (GRI) closed on $202 million of mortgage financing secured by 13 assets in its GRI partnership. This financing includes an interest rate of 5.825% over a ten-year term and is interest-only for the first two years. This loan is approximately 62% of combined property values.
Dividend
On August 3, 2010, the Board of Directors declared a quarterly cash dividend of $0.4625 per share, payable on September 1, 2010 to shareholders of record on August 18, 2010. The Board also declared a quarterly cash dividend of $0.46563 per share of Series 3 Preferred stock, payable on September 30, 2010 to shareholders of record on September 1, 2010; a quarterly cash dividend of $0.45313 per share of Series 4 Preferred stock, payable on September 30, 2010 to shareholders of record on September 1, 2010; and a quarterly cash dividend of $0.41875 on the Series 5 Preferred stock, payable on September 30, 2010 to shareholders of record on September 1, 2010.
2010 Guidance Update
The Company has revised its 2010 Recurring FFO per share, rental rate growth, same property net operating income growth and same property percent leased guidance as a result of continued improvement in fundamentals and positive leasing trends. These changes are summarized below:
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| | | 2010 Earnings Guidance |
| | | Revised Guidance | | Previous Guidance |
Recurring FFO/share | | $2.30 - $2.40 | | $2.20 - $2.35 |
Rental rate growth | | (3.0)% - 2.0% | | (8.0)% - (2.0)% |
Same property net operating income growth(a) | | (0.5)% - 1.8% | | (2.5)% - 0.5% |
Same property percent leased at period end(a) | | 91.5% - 93.0% | | 91.0% - 93.0% |
| (a) | wholly owned and Regency's pro rata share of co-investment partnerships |
Conference Call
In conjunction with Regency’s second quarter results, you are invited to listen to its conference call that will be broadcast live over the internet on Thursday, August 5 at 10:00 a.m. EDT on the Company’s web sitewww.RegencyCenters.com. If you are unable to participate during the live webcast, the call will also be archived on the web site.
The Company has published additional forward-looking statements in its second quarter 2010 supplemental information package that may help investors estimate earnings for 2010. A copy of the Company’s second quarter 2010 supplemental information will be available on the Company's web site atwww.RegencyCenters.com or by written request to Diane Ortolano, Investor Relations, Regency Centers Corporation, One Independent Drive, Suite 114, Jacksonville, Florida, 32202. The supplemental information package contains more detailed financial and property results including financial statements, an outstanding debt summary, acquisition and development activity, investments in partnerships, information pertaining to securities issued other than common stock, property details, a significant tenant rent report and a lease expiration table in addition to earnings and valuation guidance assumptions. The information provided in the supplemental package is unaudited and there can be no assurance that the information will not vary from the information provided for the quarter ended June 30, 2010. Regency may, but assumes no obligation to, update information in the supplemental package from time to time.
Reconciliation of Net Income (Loss) Attributable to Common Stockholders to Funds From Operations and Recurring Funds From Operations—Actual
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| | | Three Months Ended | | | Year to Date | |
| For the Periods Ended June 30, 2010 and 2009 | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Net income (loss) attributable to common stockholders | | $ | 6,752,150 | | | $ | (17,179,989 | ) | | $ | 19,121,120 | | | $ | 2,382,988 | |
Adjustments to reconcile to Funds from Operations: | | | | | | | | | | | | | | | | |
Depreciation expense - consolidated properties | | | 26,809,746 | | | | 23,612,708 | | | | 53,197,021 | | | | 46,966,517 | |
Depreciation and amortization expense - uncons properties | | | 12,082,785 | | | | 9,208,289 | | | | 25,286,344 | | | | 18,718,834 | |
Consolidated JV partners’ share of depreciation | | | (133,332 | ) | | | (133,684 | ) | | | (271,283 | ) | | | (273,331 | ) |
Amortization of leasing commissions and intangibles | | | 3,624,376 | | | | 3,775,632 | | | | 7,510,009 | | | | 7,398,132 | |
Gain on sale of operating properties, including JV’s | | | (614,498 | ) | | | (667 | ) | | | (7,809,146 | ) | | | (1,093,661 | ) |
Income deferrals under the Restricted Gain Method for GAAP | | | — | | | | — | | | | — | | | | — | |
Non-controlling interest of exchangeable partnership units | | | 26,905 | | | | (92,204 | ) | | | 120,766 | | | | 71,491 | |
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Funds From Operations | | | 48,548,132 | | | | 19,190,085 | | | | 97,154,831 | | | | 74,170,970 | |
Dilutive effect of share-based awards | | | (177,892 | ) | | | (232,305 | ) | | | (355,785 | ) | | | (464,609 | ) |
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Funds From Operations for calculating Diluted FFO per Share | | $ | 48,370,240 | | | $ | 18,957,780 | | | $ | 96,799,046 | | | $ | 73,706,361 | |
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Funds From Operations | | $ | 48,548,132 | | | $ | 19,190,085 | | | $ | 97,154,831 | | | $ | 74,170,970 | |
Adjustments to reconcile to Recurring Funds from Operations: | | | | | | | | | | | | | | | | |
Development and outparcel gains, net of dead deal costs and tax | | | 626,364 | | | | 129,709 | | | | 395,061 | | | | (3,929,323 | ) |
Provisions for impairment | | | 1,940,037 | | | | 28,688,927 | | | | 5,553,168 | | | | 28,688,927 | |
Provisions for hedge ineffectiveness | | | 578,938 | | | | — | | | | 922,397 | | | | — | |
Loss (gain) on early debt extinguishment | | | — | | | | — | | | | — | | | | — | |
Restructuring charges | | | — | | | | — | | | | — | | | | 2,238,485 | |
Transaction fees and promotes | | | (2,593,828 | ) | | | — | | | | (2,593,828 | ) | | | — | |
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Recurring Funds From Operations | | | 49,099,643 | | | | 48,008,721 | | | | 101,431,629 | | | | 101,169,059 | |
Dilutive effect of share-based awards | | | (177,892 | ) | | | (232,305 | ) | | | (355,785 | ) | | | (464,609 | ) |
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Recurring Funds From Operations for calculating Diluted Recurring FFO per Share | | $ | 48,921,751 | | | $ | 47,776,416 | | | $ | 101,075,844 | | | $ | 100,704,450 | |
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Weighted Average Shares For Diluted FFO per Share | | | 83,178,627 | | | | 77,577,231 | | | | 82,954,572 | | | | 73,817,195 | |
Reported results are preliminary and not final until the filing of our Form 10-Q with the SEC and, therefore, remain subject to adjustment.
Regency Centers Corporation (NYSE: REG)
Regency is the leading national owner, operator, and developer of grocery-anchored and community shopping centers. At June 30, 2010, the Company owned 398 retail properties, including those held in co-investment partnerships. Including tenant-owned square footage, the portfolio encompassed 53.1 million square feet located in top markets throughout the United States. Since 2000 Regency has developed 201 shopping centers, including those currently in-process, representing an investment at completion of $3.0 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.
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Forward-looking statements involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Regency Centers Corporation with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements.
