Jacksonville, FL-based Regency Centers Corp. recently reported financial and operating results for the period ended June 30, 2018 and according to Martin E. Stein Jr., chairman and CEO, the REIT’s “unequaled combination of strategic advantages produced another quarter of gratifying results.”
Stein Jr. explained that “Our best-in-class national portfolio of high quality shopping centers, located in densely populated and affluent trade areas, continues to attract market leading grocers and retailers allowing for consistent and impressive NOI growth. Led by a dedicated and experienced team, Regency is well positioned to compound growth in earnings, cash flow, and dividends.”
As for leasing fundamentals, Jim Thompson, EVP of operations said that they “continue to be healthy across the portfolio,” adding that “’We have solid demand for our premier portfolio as tenants continue to validate the importance of high quality locations as they thoughtfully execute their expansion plans. We’ve had great success in embedding contractual rent increases into our executed leases over the past several years, which is translating into our strong Same Property NOI performance.”
The REIT’s Second Quarter 2018 Highlights include:
- Net Income Attributable to Common Stockholders (“Net Income”) of $0.28 per diluted share.
- NAREIT Funds From Operations (“NAREIT FFO”) of $0.93 per diluted share.
- Same property Net Operating Income (“NOI”), excluding termination fees, increased 4.2% as compared to the same period in the prior year.
- As of June 30, 2018, the same property portfolio was 95.5% leased. Spaces less than 10,000 square feet (“Small Shops”) were 92.2% leased.
- Acquisition and disposition activity of $71.0 million and $32.5 million, respectively.
- On a year-to-date basis, including the property sales subsequent to quarter end, the Company has sold properties for a combined gross sales price of $142.9 million at a weighted average cap rate of 7.9%.
- Completed two developments with a combined net development cost of $110.9 million at an average return of 7.0%.
- As of June 30, 2018, a total of 21 properties were in development or redevelopment representing a total investment of $348.5 million.