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Regency Centers Corporation
Press Release
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www.RegencyCenters.com CONTACT: LISA PALMER
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REGENCY CENTERS REPORTS ROBUST FOURTH QUARTER RESULTS
Tenth Year as Public Company Capped by 8.3% 4th Quarter FFO Growth;
Annual Dividend Increased to $2.12
Jacksonville, Fla. (January 28, 2004) -- Regency Centers Corporation announced
today financial and operating results for the quarter ended December 31, 2003.
Net income for common stockholders for the quarter was $53.3 million, $0.89 per
diluted share, compared to $34.2 million and $0.58 per diluted share for the
same period last year, a 53.4% per share growth rate. Net income for common
stockholders for the year was $126.6 million, $2.12 per diluted share, compared
to $107.7 million and $1.84 per diluted share for the year of 2002, a growth
rate of 15.2%.
Regency reports Funds From Operations (FFO) in accordance with the standards
established by the National Association of Real Estate Investment Trusts
(NAREIT) as a supplemental earnings measure. The Company considers this a
meaningful performance measurement in the Real Estate Investment Trust industry.
For the fourth quarter, FFO was $55.9 million, or $0.91 per diluted share,
compared to $51.7 million and $0.84 per diluted share for the same period last
year, per share growth of 8.3%. For the full year, FFO was $181.8 million, or
$2.97 per diluted share, a penny ahead of First Call consensus estimates,
compared to $176.4 million and $2.87 per diluted share for 2002.
On October 1, 2003, NAREIT provided guidance regarding the calculation of FFO.
This announcement clarified that original issuance costs associated with the
redemption of preferred stock and impairment write-downs should be included in
the calculation of FFO. The Company has historically added these items back to
GAAP net income in calculating FFO.
In 2003 the Company reduced net income for common stockholders by $3.1 million
for the original issuance costs associated with the redemption of $155 million
of preferred units and the Company recognized an impairment write-down of $2.0
million. In accordance with NAREIT's clarification, these adjustments have been
included in FFO for the year.
Portfolio Results
At December 31, 2003, Regency's total assets before depreciation were
approximately $3.4 billion. At quarter end, the Company owned 265 shopping
centers and single tenant properties, including those held in joint ventures,
totaling 30.3 million square feet located in attractive markets across the
nation. Occupancy of the operating portfolio at year end was 95.4%. Same
property NOI growth was 3.1% for the quarter and 2.7% for the full year. Rent
growth remained strong at 8.3% for the quarter and 9.5% for the year. During the
quarter Regency completed 365 new and renewal lease transactions, including
development properties, for a total of 1.2 million square feet. For the year,
Regency has completed 1,346 transactions, leasing or renewing 4.7 million square
feet.
"2003 was our tenth year as a public company. We are pleased with our results
and in the remarkable progress that we've made over the last decade. Our focused
business strategy and customer-oriented operating systems have once again
produced excellent results. We continue to create significant value from our
disciplined development program and cost effectively fund the pipeline through
sales of non-strategic assets as well as our joint ventures," said Martin E.
Stein, Jr., Chairman and Chief Executive Officer. "We remain committed to
executing strategies that will enhance Regency's sustainable FFO per share
growth rate."
Capital Recycling - Investment and Disposition Activity
Regency started ten new projects during the quarter which represent an estimated
$206 million of invested capital at completion and an estimated stabilized NOI
yield of 10.3%. As of December 31, 2003, the Company had 38 properties under
development for an estimated total net investment at completion of $571 million.
The in-process developments are 61% funded and 76% leased, including
tenant-owned GLA.
During the fourth quarter Regency sold five completed developments for a gross
sales price of $75.2 million at an average cap rate of 7.8% with Regency's share
of the sale being $56.8 million. The Company also sold eleven operating
properties during the quarter at an average cap rate of 8.6%. The gross sales
price was $169 million with Regency's share being $105.5 million. For the year,
Regency sold a total of 33 operating and development properties for a gross
sales price of $470 million at an average cap rate of 8.3%. Regency's share of
the sales was $341 million.
Four of the eleven operating properties that were sold in the fourth quarter
were sold to the joint venture with Macquarie CountryWide Trust of Australia.
Regency will maintain a 25% ownership interest and will manage the properties on
behalf of the joint venture. In October, Columbia Regency, LLC, the joint
venture with the Oregon Public Employees Retirement Fund, purchased Clinton
Park, a Giant-anchored center in the Washington D.C. area. The total assets in
these two strategic ventures grew by $229 million in 2003 to a combined total of
$707 million at year-end 2003.
Dividend
On January 28th, 2004, the Board of Directors approved a $0.04 dividend increase
to $2.12 annually and declared a quarterly cash dividend of $0.53 per share,
payable on February 25, 2004 to shareholders of record on February 11, 2004. The
Board also declared a quarterly cash dividend of $0.46563 on the Series 3
Preferred stock, payable on March 31, 2004 to shareholders of record on March 1,
2004.
Conference Call
In conjunction with Regency's fourth quarter results, you are invited to listen
to its conference call that will be broadcast live over the internet on Thursday
January 29, 2004 at 10:00 a.m. EST on the Company's web site
www.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 fourth
quarter 2003 supplemental information package that may help investors estimate
earnings for 2004. A copy of the Company's fourth quarter 2003 supplemental
information will be available from the Company's web site at
www.RegencyCenters.com or by written request to Diane Ortolano, Investor
Relations, Regency Centers Corporation, 121 West Forsyth Street, Suite 200,
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
joint ventures, information pertaining to securities issued other than common
stock, property details, a significant tenant 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 final information for
the quarter ended December 31, 2003. Regency may, but assumes no obligation to,
update information in the supplemental package from time to time.
Funds From Operations Reconciliation to Net Income--Actual Results
For the Periods Ended December 31, 2003 and 2002 Three Months Ended Year to Date
2003 2002 2003 2002
Funds From Operations:
Net income for common stockholders 53,289,159 34,226,399 126,614,365 107,666,464
Add (Less):
Depreciation and amortization expense - real property 18,623,923 18,199,019 72,117,235 67,905,998
Amortization of leasing commissions 2,019,424 2,070,471 7,051,871 6,029,223
(Gain) loss on sale of operating properties (19,243,813) (4,257,436) (27,001,037) (10,826,676)
Convertible preferred stock dividends 0 582,320 0 2,858,204
Minority interest of exchangeable partnership units 1,202,056 874,232 3,044,013 2,796,643
Funds from Operations 55,890,749 51,695,005 181,826,447 176,429,856
Weighted Average Shares
For Diluted FFO Per Share (000s) 61,480,626 61,743,826 61,241,858 61,553,769
Regency Centers Corporation (NYSE: REG)
Regency is the leading national owner, operator, and developer focused on
grocery-anchored, neighborhood retail centers. Regency's total assets before
depreciation are $3.4 billion. As of December 31, 2003, the Company owned 265
retail properties, including those held in joint ventures, totaling 30.3 million
square feet located in high growth markets throughout the United States.
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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In addition to historical information, the information in this press release
contains forward-looking statements under the federal securities law. These
statements are based on current expectations, estimates and projections about
the industry and markets in which Regency operates, management's beliefs and
assumptions. Forward-looking statements are not guarantees of future performance
and involve certain known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by such
statements. Such risks and uncertainties include, but are not limited to,
changes in national and local economic conditions, financial difficulties of
tenants, competitive market conditions including pricing of acquisitions and
sales of properties and out parcels, changes in expected leasing activity and
market rents, timing of acquisitions, development starts and sales of properties
and out parcels, weather, obtaining governmental approvals and meeting
development schedules.
During the quarter, Regency's corporate representatives may reiterate these
forward-looking statements during private meetings with investors, investment
analysts, the media and others. At the same time, Regency will keep this
information publicly available on its web site www.regencycenters.com.