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Regency Centers Reports Fourth Quarter Results

  Regency Centers Reports Fourth Quarter Results

 Same Property NOI Growth of 4.0% and Full-Year Core FFO Per Share Growth of
                                     6.7%

Business Wire

JACKSONVILLE, Fla. -- January 30, 2013

Regency Centers Corporation (“Regency” or the “Company”) announced today
financial and operating results for the quarter ended December 31, 2012.

Earnings

Regency reported Core Funds From Operations (“Core FFO”) for the fourth
quarter of $56.7 million, or $0.63 per diluted share, compared to $56.8
million, or $0.63 per diluted share, for the same period in 2011. For the
twelve months ended December 31, 2012 Core FFO was $230.9 million, or $2.56
per diluted share, compared to $213.1 million, or $2.40 per diluted share, for
the same period last year.

Regency reported a net loss attributable to common stockholders (“Net Loss”)
for the fourth quarter of $37.1 million, or $0.41 per diluted share, compared
to net income attributable to common stockholders (“Net Income”) of $8.1
million, or $0.09 per diluted share, for the same period in 2011. The Net Loss
for the twelve months ended December 31, 2012 was $6.7 million, or $0.08 per
diluted share, compared to Net Income of $31.7 million, or $0.35 per diluted
share, for the same period last year. The Net Loss for the fourth quarter and
the year ended 2012 includes a $50.0 million impairment recognized for Deer
Springs Town Center, a wholly owned Regency shopping center located in Las
Vegas, Nevada.

Funds From Operations (“FFO”) for the fourth quarter was $58.9 million, or
$0.65 per diluted share. For the same period in 2011, the Company reported FFO
of $56.5 million, or $0.63 per diluted share. For the twelve months ended
December 31, 2012 FFO was $222.1 million, or $2.47 per diluted share, compared
to $220.3 million, or $2.48 per diluted share, for the same period last year.

FFO is a commonly used measure of REIT performance, which the National
Association of Real Estate Investment Trusts (“NAREIT”) defines as net income,
computed in accordance with GAAP, excluding gains and losses from dispositions
of depreciable property, net of tax, excluding operating real estate
impairments, plus depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Regency computes FFO for all
periods presented in accordance with NAREIT's definition. Many companies use
different depreciable lives and methods, and real estate values historically
fluctuate with market conditions. Since FFO excludes depreciation and
amortization and gains and losses from depreciable property dispositions, and
impairments, it can provide a performance measure that, when compared year
over year, reflects the impact on operations from trends in occupancy rates,
rental rates, operating costs, acquisition and development activities, and
financing costs. This provides a perspective of the Company’s financial
performance not immediately apparent from net income determined in accordance
with GAAP. Thus, FFO is a supplemental non-GAAP financial measure of the
Company's operating performance, which does not represent cash generated from
operating activities in accordance with GAAP and therefore, should not be
considered an alternative for net income as a measure of liquidity. An
additional performance measure used by Regency, Core FFO, represents FFO as
defined above, excluding, but not limited to, transaction income or expense,
gains or losses from the early extinguishment of debt, development and
outparcel gains or losses and other non-core items. The Company provides a
reconciliation of FFO to Core FFO.

Operations

For the twelve months ended December 31, 2012, Regency’s results for wholly
owned properties plus its pro-rata share of co-investment partnerships were as
follows:

  *Percent leased at period end, same properties only: 94.5%
  *Percent leased at period end, all properties: 94.4%
  *Increase in same property net operating income (“NOI”) over the same
    period last year, excluding termination fees: 4.0%
  *Same space rental rate growth on a cash basis for spaces vacant less than
    12 months: 5.5%
  *Leasing transactions, including in-process developments: 1,800 new and
    renewal lease transactions for a total of 5.1 million square feet

For the three months ended December 31, 2012, Regency’s results for wholly
owned properties plus its pro-rata share of co-investment partnerships were as
follows:

  *Increase in same property NOI over the same period last year, excluding
    termination fees: 3.7%
  *Same space rental rate growth on a cash basis for spaces vacant less than
    12 months: 3.4%
  *Leasing transactions, including in-process developments: 457 new and
    renewal lease transactions for a total of 1.1 million square feet

Investments

Property Transactions

During the quarter, Regency sold one wholly owned and two co-investment
operating properties at a gross sales price of $76.6 million. Regency’s share
of the gross sales price was $49.7 million. Also, Regency sold one outparcel
at a gross sales price of $3.3 million.

During the quarter, Regency purchased two wholly owned and two co-investment
operating properties at a gross purchase price of $192.2 million. Regency’s
share of the gross purchase price was $148.9 million. At the time of
acquisition, two of the properties were encumbered by separate mortgage loans
with a combined outstanding principal balance of $61.1 million. Regency’s
share of the assumed debt was $38.9 million.

Developments and Redevelopments

At December 31, 2012, the Company had four projects in development with
estimated net development costs of $187.6 million. During the quarter the
Company completed three projects representing $57.0 million in net development
costs. Additionally, Regency had one redevelopment project in process with
estimated net incremental costs, including its pro-rata share of co-investment
partnerships, of $8.5 million.

Capital Markets

On December 31, 2012, Regency drew the remaining $100 million on its unsecured
term loan (“Term Loan”). Proceeds were used to reduce the outstanding balance
on the Company’s $800 million unsecured revolving credit facility. The Term
Loan matures on December 15, 2016 and can be prepaid at par any time prior to
maturity. There is n o remaining capacity on the Term Loan.

Dividend

On January 28, 2013, the Board of Directors declared a quarterly cash dividend
on the Company’s common stock of $0.4625 per share, payable on February 27,
2013 to shareholders of record on February 13, 2013.

Guidance

The Company has updated certain components of its 2013 earnings and valuation
guidance. Some of these changes are summarized below. Please refer to the
Company’s fourth quarter 2012 supplemental information package for the
complete list of updates.

                            Full Year 2013 Guidance
                           Previous Guidance  Updated Guidance
Core FFO per diluted share  $2.45 – $2.53      $2.48 – $2.56
FFO per diluted share       $2.42 – $2.50      $2.45 – $2.53

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 31, 2013 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 forward-looking statements and additional financial
information in its fourth quarter 2012 supplemental information package that
may help investors estimate earnings for 2013. A copy of the Company’s fourth
quarter 2012 supplemental information will be available on the Company's web
site at www.RegencyCenters.com or by written request to: 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 final
information in the Company’s form 10-K for the year ended December 31, 2012.
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 FFO
and Core FFO — Actual (in thousands)

For the Periods Ended December    Three Months Ended   Year to Date
31, 2012 and 2011
                                   2012      2011       2012       2011
                                                                     
Net income (loss) attributable     (37,179)   8,138      (6,664)     31,695
to common stockholders
Adjustments to reconcile to
Funds from Operations:
Depreciation and amortization -    26,446     28,186     108,057     113,384
consolidated real estate
Depreciation and amortization -    10,646     10,728     43,162      43,750
unconsolidated partnerships
Consolidated JV partners' share    (208)      (180)      (755)       (739)
of depreciation
Provision for impairment           51,671     8,335      75,326      19,614
Amortization of leasing            4,238      4,103      16,055      16,427
commissions and intangibles
(Gain) loss on sale of operating   3,342      (2,679)    (13,187)    (4,916)
properties, net of tax
(Income) loss from deferred        -          (121)      -           1,000
compensation plan, net
Noncontrolling interest of         (10)       26         106         103
exchangeable partnership units
                                                                     
Funds From Operations              58,946     56,536     222,100     220,318
                                                                     
Dilutive effect of share-based     (121)      (154)      (501)       (596)
awards
Funds From Operations for
calculating Diluted FFO per        $ 58,825   $ 56,382   $ 221,599   $ 219,722
Share
                                                                     
Funds From operations              $ 58,946   $ 56,536   $ 222,100   $ 220,318
Adjustments to reconcile to Core
Funds from Operations:
Development and outparcel gain,    (2,641)    (597)      (3,415)     (1,328)
net of dead deal costs and tax
Provision for impairment           -          849        1,000       849
Provision for hedge                -          54         20          54
ineffectiveness
(Gain) loss on early debt          382        (5)        1,238       (1,745)
extinguishment
Original preferred stock           -          -          10,119      -
issuance costs expensed
Gain on redemption of preferred    -          -          (1,875)     -
units
One-time additional preferred      -          -          1,750       -
dividend payment
Transaction fees and promotes      -          -          -           (5,000)
                                                                     
Core Funds From Operations         56,687     56,837     230,937     213,148
                                                                     
Dilutive effect of share-based     (121)      (154)      (501)       (596)
awards
Core Funds From Operations for
calculating Diluted Core FFO per   56,566     56,683     230,436     212,552
Share
                                                                     
Weighted Average Shares For        90,307     89,755     89,846      88,604
Diluted FFO per Share

Reported results are preliminary and not final until the filing of the
Company’s Form 10-K with the SEC and, therefore, remain subject to adjustment.

About Regency Centers Corporation (NYSE: REG)

Regency is the preeminent national owner, operator, and developer of dominant
grocery-anchored and community shopping centers. At December 31, 2012, the
Company owned 348 retail properties, including those held in co-investment
partnerships. Including tenant-owned square footage, the portfolio encompassed
46.3 million square feet located in top markets throughout the United States.
Since 2000, Regency has developed 209 shopping centers, including those
currently in-process, representing an investment at completion of more than
$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.

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.

Contact:

Regency Centers Corporation
Patrick Johnson, 904-598-7422
PatrickJohnson@RegencyCenters.com
 
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