EX-99.3 4 reg-ex993_109.htm EX-99.3 reg-ex993_109.htm

Exhibit 99.3

 

SECOND QUARTER 2021 Fixed Income Supplemental The Field at Commonwealth Washington D.C. Brick Walk Bridgeport, CT Village Plaza Raleigh, NC Village at La Floresta Los Angeles, CA Mellody Farm Chicago, IL Brighten Park Atlanta, GA Grand Ridge Plaza Seattle, WA Regency Centers


SecondQuarter 2021 Highlights  Reported NareitFFO of $0.99 per diluted share for the second quarter  Updated 2021 NareitFFO guidance to a range of $3.74 –$3.82 per diluted share  Reported that Same Property Net Operating Income (“NOI”), excluding lease termination fees, increased 30.8% during the second quarter over the same period a year ago  Increased percent leased by 40 basis points sequentially to 92.9% in the Same Property portfolio as of June 30, 2021  Collected 96% of second quarter Pro-rata base rent, as of August 2, 2021  Executed 1.9 million square feet of new and renewal leases during the second quarter at a blended rent spread of +2.7%  Completed property dispositions of $86 million, at Regency’s share of gross sales price  Entered into forward sale agreements in connection with the ATM program to sell an aggregate of 2.3 million shares of common stock at an average gross price of $64.59 per share  Realized Pro-rata net debt-to-operating EBITDAreof 5.3x at June 30, 2021  Issued the annual Corporate Responsibility Reporton June 7, 2021 2

 


 

Subsequent Highlights 3 On August 1, 2021, completed the acquisition of our partner’s 80% interest in the seven-property USAA Joint Venture (“USAA JV”) portfolio for $178 million, including the $84 million assumption of our partner’s share of mortgage debt outstanding On August 4, 2021, Regency’s Board of Directors (the “Board”) declared a quarterly cash dividend on the Company’s common stock of $0.595 per share “Our results during the second quarter speak to the meaningful progress we continue to see toward full recovery from the effects of the pandemic, with an improved outlook supported by strong foot traffic and leasing activity across our portfolio,” said Lisa Palmer, President and Chief Executive Officer. “In turn, our capital allocation strategy has pivoted to offense, evidenced in the buyout of our JV partner’s interest in seven high quality grocery-anchored neighborhood centers and continued pursuit of value-creating investment opportunities, including our development and redevelopment pipeline.”

 


 

Credit Ratings &Select Ratios Unsecured Public Debt Covenants Required 6/30/21 3/31/21 12/31/20 9/30/20 Fair Market Value Calculation Method Covenants(i)(ii) Total Consolidated Debt to Total Consolidated Assets ≤65% 27% 28% 29% 30% Secured Consolidated Debt to Total Consolidated Assets ≤40% 3% 3% 3% 4% Consolidated Income for Debt Service to Consolidated Debt Service ≥1.5x 4.6x 4.3x 4.2x 4.3x Unencumbered Consolidated Assets to Unsecured Consolidated Debt >150% 375% 366% 345% 344% Credit Ratings Agency Credit Rating Outlook LastReview Date S&P BBB+ Stable 4/26/21 Moody's Baa1 Stable 3/18/21 i. For a complete listing of all Debt Covenants related to the Company’s Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission. ii. Current period debt covenants are finalized and submitted after the Company’s most recent Form 10-Q or Form 10-K filing. 4  

 


 

Capital Structure & Liquidity Profile Capital Structure (% of total capitalization) 72% 22% 3% 3% Equity Unsecured Debt - Bonds Unconsolidated Debt - Secured Consolidated Debt - Secured $15.1 Billion Total Capitalization Debt Composition Pro-Rata 21% 2% 77% Secured Fixed Rate Secured Variable Rate Unsecured Debt - Bonds Securedvs.Unsecured 23% 77% Secured Unsecured 5 Liquidity Profile ($ millions)6/30/2021Unsecured Credit Facility - Committed1,250 Balance Outstanding- Undrawn Portion of Credit Facility1,250 Cash, Cash Equivalents & marketable Securities287 Total Liquidity1,537  

 


 

A Well-Laddered Maturity Schedule Debt Maturity Profile as of June30, 2021 Regency aims to have < 15% of total debt maturing in any given year Wtd Avg Interest Rate:3.8% Wtd Avg Yrs to Maturity:9+ Years Total Pro Rata Debt:$4.2B 6 $37 2021 $105 2022 $138 2023 $369 2024 $331 2025 $329 2026 $593 2027 $335 2028 $448 2029 $672 2030 $139 2031 $2 2032-2046 $425 2047 $300 2049 Unsecured Debt - Bonds Considlated Debt - Secured Unconsolidated Debt - Secured  

 


 

Follow us SecondQuarter 2021 Earnings Conference Call Friday, August6th, 2021 Time: 11:00 AM ET Dial#: 877-407-0789 or 201689-8562 Webcast: investors.regencycenters.com Contact Information: Christy McElroy Senior Vice President, Capital Markets 904-598-7616 ChristyMcElroy@RegencyCenters.com Forward-LookingStatements Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Regency’s future events, developments, or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws.These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “anticipate,” “guidance,” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained, and it is possible actual results maydiffermateriallyfromthoseindicatedbytheseforward-lookingstatementsduetoavarietyofrisksanduncertainties. Our operations are subject to a number of risks and uncertainties including, but not limited to, those Risk factors described in our SEC filings. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings and submissions to the SEC. If any of the events described in the risk factors actually occur,ourbusiness,financialconditionoroperatingresults,aswellasthemarketpriceofoursecurities,couldbemateriallyadverselyaffected.Forward- looking statements are only as of the date they are made, and Regency undertakes no duty to update its forward-looking statements except as required by law.Theserisksandeventsinclude,withoutlimitation: Risks Relatedto the COVID-19Pandemic Pandemicsorotherhealthcrises,suchastheCOVID-19pandemic,mayadverselyaffectourtenants’financialcondition,theprofitabilityofourproperties, andouraccesstothecapitalmarketsandcouldhaveamaterialadverseeffectonourbusiness,resultsofoperations,cashflowsandfinancialcondition. RiskFactorsRelated toOperating Retail-Based ShoppingCenters Economicandmarketconditionsmayadverselyaffect theretailindustry andconsequently reduceour revenuesandcash flow,and increaseour operating expenses. Shifts in retail trends, sales, and delivery methods between brick and mortar stores, e-commerce, home delivery, and curbside pick-up may adversely impact our revenues and cash flows. Changing economic and retail market conditions in geographic areas where our properties are concentrated may reduce our revenues and cash flow. Our success depends on the continued presence and success of our “anchor” tenants. A significant percentageofourrevenuesarederivedfromsmaller“shopspace”tenantsandournetincomemaybeadverselyimpactedifoursmallershoptenants arenotsuccessful.Wemaybeunabletocollectbalancesduefromtenantsinbankruptcy.Manyofourcostsandexpensesassociatedwithoperatingourpropertiesmayremainconstantorincrease,evenifourleaseincomedecreases.CompliancewiththeAmericanswithDisabilitiesActandfire,safetyandotherregulationsmayhaveanegativeeffectonus. RiskFactors Relatedto RealEstate Investments Our real estate assets may decline in value and be subject to impairment losses which may reduce our net income. We face risks associated with development, redevelopment and expansion of properties. We face risks associated with the development of mixed-use commercial properties. We face risks associated with the acquisition of properties. We may be unable to sell properties when desired because of market conditions. Changes in tax laws couldimpactouracquisitionordispositionofrealestate. Risk FactorsRelated totheEnvironmentAffectingOur Properties Climatechangemayadverselyimpactourpropertiesdirectly,andmayleadtoadditionalcomplianceobligationsandcostsaswellasadditionaltaxesandfees.Geographicconcentrationofourpropertiesmakesourbusinessmorevulnerabletonaturaldisasters,severeweatherconditionsandclimatechange.Costsofenvironmentalremediationmayimpactourfinancialperformanceandreduceourcashflow. Risk Factors Relatedto Corporate Matters An uninsured loss or a loss that exceeds the insurance coverage on our properties may subject us to loss of capital and revenue on those properties. Failure to attract and retain key personnel may adversely affect our business and operations. The unauthorized access, use, theft or destruction of tenant or employee personal, financial or other data or of Regency’s proprietary or confidential information stored in our information systems or by third parties on ourbehalfcouldimpactourreputationandbrandandexposeustopotentialliabilityandlossofrevenues. Risk FactorsRelated to Our Partnerships and JointVentures We do not have voting control over all of the properties owned in our co-investment partnerships and joint ventures, so we are unable to ensure that our objectives will be pursued. The termination of our partnerships may adversely affect our cash flow, operating results, and our ability to make distributions tostockandunitholders. RiskFactorsRelated toFundingStrategiesandCapital Structure Our ability to sell properties and fund acquisitions and developments may be adversely impacted by higher market capitalization rates and lower NOI at our properties which may dilute earnings. We depend on external sources of capital, which may not be available in the future on favorable terms or at all. Our debt financing may adversely affect our business and financial condition. Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition. Increases in interest rates would cause our borrowing costs to rise and negatively impact our results of operations. Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us. The interest rates on our Unsecured Credit facilities as well as on our variable rate mortgages and interest rate swapsmightchangebasedonchangestothemethodinwhichLIBORoritsreplacementrateisdetermined. Risk FactorsRelatedtotheMarket PriceforOurSecurities Changes in economic and market conditions may adversely affect the market price of our securities. There is no assurance that we will continue to pay dividendsathistoricalrates. Risk FactorsRelatingtothe Company’sQualification asaREIT If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates. DividendspaidbyREITsgenerallydonotqualifyforreducedtaxrates. Certain foreign stockholders may be subject to U.S. federal income tax on gain recognized on a disposition of our common stock if we do not qualify as a “domestically controlled” REIT. Legislative or other actions affecting REITs may have a negative effect on us. Complying with REIT requirements may limit ourabilitytohedgeeffectivelyandmaycauseustoincurtaxliabilities. Risks Relatedto the Company’sCommon Stock RestrictionsontheownershipoftheParentCompany’scapitalstocktopreserveitsREITstatusmaydelayorpreventachangeincontrol.Theissuanceof theParentCompany'scapitalstockmaydelayorpreventachangeincontrol.OwnershipintheParentCompanymaybedilutedinthefuture. Non-GAAPdisclosure Webelievethesenon-GAAPmeasuresprovideusefulinformationtoourBoardofDirectors,managementand investorsregardingcertaintrendsrelating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods fortrendanalyses,purposesofdeterminingmanagementincentivecompensationandbudgeting,forecastingandplanningpurposes. Wedonotconsidernon-GAAPmeasuresanalternativetofinancialmeasuresdeterminedinaccordancewithGAAP.Theprincipallimitationofthese non-GAAP financial measures is they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financialstatements.Inaddition,theyreflecttheexerciseofmanagement’sjudgmentaboutwhichexpenseandincomeitemsareexcludedorincluded indetermining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of thenon-GAAP financial measures we use to their most directly comparable GAAP measures are provided. Non-GAAP financial measures should not be relied upon in evaluating the financial condition,resultsofoperationsorfutureprospectsoftheCompany. NareitFFOisacommonlyusedmeasureofREITperformance,whichtheNationalAssociationofRealEstateInvestmentTrusts(“Nareit”)definesas net income, computed in accordance with GAAP, excluding gains on sale and impairments of real estate, net of tax, plus depreciation and amortization, andafteradjustmentsforunconsolidated partnershipsandjointventures.RegencycomputesNareitFFOforallperiodspresentedinaccordancewith Nareit'sdefinition. Since Nareit FFO excludes depreciation and amortization and gains on sales and impairments of realestate, it provides 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, Nareit FFO is a supplemental non-GAAP financial measure of the Company's operating performance, which does not represent cash generated from operating activities inaccordance with GAAP; and, therefore, should not be considered a substitute measureofcashflowsfromoperations.TheCompanyprovidesareconciliationofNetIncomeAttributabletoCommonStockholderstoNareitFFO. Core Operating Earnings is an additional performance measure that excludes from Nareit FFO: (i) transaction relatedincome or expenses (ii) gains or losses from the early extinguishment of debt; (iii) certain non-cash components ofearnings derived from above and below market rent amortization, straight-line rents, and amortization of mark-to-market of debt adjustments; and (iv) other amounts as they occur. The Company provides a reconciliation ofNetIncometoNareitFFOtoCoreOperatingEarnings. 7