Regency Centers Corp. Q3 FY2024 earnings call

• Strong operating fundamentals with sustained tenant demand, including rent growth, sizable leasing pipeline, and same-property leased occupancy above 96%. • Robust leasing activity with accelerated rent commencement, higher shop tenant retention, lower credit loss, and favorable expense recoveries. • Active investment and development activity with over $200 million to $250 million of project starts for the second consecutive year, including ground-up developments like Jordan Ranch and Oakley Shops. • Successful completion of projects like Glenwood Green in New Jersey, which was over 95% leased and outperformed underwriting expectations.

The company reported strong operating fundamentals with same-property leased occupancy above 96%, a record high shop occupancy rate of 93.7%, strong rent growth, and same-property NOI growth. However, no detailed breakdown of product segment financial performance and revenue contribution % is provided.

• Raised current year same-property NOI growth to 3.5% and core operating earnings per share growth to nearly 5%. • For 2025, expects same-property NOI growth to be ~3.5% and Nareit FFO growth of at least 5%. • In 2025, will absorb full-year impact from debt refinancing and merger-related expenses will not repeat.

• Factors that could cause actual results to differ materially from forward-looking statements, including various risks and uncertainties described in SEC filings. • Tenant credit risks, as mentioned with considerations of historical average bad debt and credit loss levels for future periods.

Q: On the balance sheet, what's the appetite for levering up to fund growth?

A: Mike Mas stated they are comfortable within the 5x to 5.5x debt-to-EBITDA range and will lean into balance sheet capacity for compelling opportunities, including share repurchases which provided earnings accretion.

Q: What changed to increase same-property NOI growth expectation?

A: Mike Mas and Alan Roth noted acceleration of rent commencement from the SNO pipeline, higher retention rates, and favorable timing of rent commences, with credit loss improvement also contributing.

Q: Thoughts on bad debt for 2025?

A: Mike Mas indicated planning for roughly historical average level of bad debt and credit loss next year, around 75 to 100 basis points.

Q: Outlook for development pipeline growth?

A: Nick Wibbenmeyer mentioned the development pipeline is over $600 million in-process, with expectations to start over $200 million annually, and confidence in delivering projects on time and on budget.