Regency Centers Corporation (“Regency” or the “Company”) today
reported financial and operating results for the period ended June
30, 2020, and provided a business update related to COVID-19.
Second Quarter 2020
Highlights
- For the three months ended June 30, 2020, Net Income
Attributable to Common Stockholders (“Net Income”) of $0.11 per
diluted share.
- For the three months ended June 30, 2020, NAREIT Funds From
Operations (“NAREIT FFO”) of $0.61 per diluted share.
- Same property Net Operating Income (“NOI”), excluding
termination fees, declined by 20.1%, as compared to the three
months ended June 30, 2019, driven by a higher rate of
uncollectible lease income related to the COVID-19
pandemic.
- As of June 30, 2020, the same property portfolio was 94.5%
leased.
- Completed a public offering of $600 million 3.70% unsecured
notes due 2030.
- At June 30, 2020, net debt-to-operating EBITDAre ratio on a
pro-rata basis was 5.6x.
- Published annual Corporate Responsibility Report, highlighting
the Company’s key achievements and continued commitment to Our
People, Our Communities, Ethics and Governance, and Environmental
Stewardship.
- Regency’s Board of Directors (the “Board”) declared a quarterly
cash dividend on the Company’s common stock of $0.595 per
share.
COVID-19 Business Update
Highlights
- The Company’s 415 properties have remained open and operating
during the entirety of the COVID-19 pandemic.
- As of the end of July, approximately 95% of Regency’s tenants
were open based on pro-rata Annual Base Rent (“ABR”).
- 72% of second quarter pro-rata base rent was collected through
July 31, 2020 (77% when including executed rent deferral
agreements).
- 75% of July pro-rata base rent was collected through July 31,
2020 (79% when including executed rent deferral agreements).
“As we’ve continued to navigate through these
uncertain times over the last several months, Regency’s top
priority has remained the safety and well-being of our team
members, tenants, and our neighbors in our communities,” said Lisa
Palmer, President and Chief Executive Officer. “We recognize that
there are still challenging times ahead, but we are encouraged by
the progress our tenants have made reopening their businesses
around the country, and we continue to have confidence in the long
term success of our high-quality portfolio with a focus on
necessity and value based retail,” continued Palmer.
Second Quarter 2020 Results
Regency reported Net Income for the second
quarter of $19.0 million, or $0.11 per diluted share, compared to
Net Income of $51.7 million, or $0.31 per diluted share, for the
same period in 2019. The Company reported NAREIT FFO for the second
quarter of $104.7 million, or $0.61 per diluted share, compared to
$160.0 million, or $0.95 per diluted share, for the same period in
2019. The Company reported Core Operating Earnings for the second
quarter of $108.9 million, or $0.64 per diluted share, compared to
$152.4 million, or $0.91 per diluted share, for the same period in
2019. On a pro-rata basis, second quarter 2020 included a reduction
of $41.0 million for uncollectible lease income and a related
reduction of $18.6 million for uncollectible straight-line rent
related to the COVID-19 pandemic. For additional detail, please
refer to page(s) 33 and 34 of the second quarter 2020 supplemental
disclosure.
Second quarter same property NOI, excluding
termination fees, declined by 20.1% compared to the same period in
2019. Same property NOI in the second quarter of 2020 was
negatively impacted by a higher rate of uncollectible lease income
driven by expectations of collectibility for certain tenants given
the COVID-19 pandemic.
As of June 30, 2020, Regency’s wholly-owned
portfolio plus its pro-rata share of co-investment partnerships,
was 93.9% leased. The same property portfolio was 94.5% leased.
Within the same property portfolio, anchor percent leased, which
includes spaces greater than or equal to 10,000 square feet, was
96.9%, a decline of 20 basis points sequentially. Same property
shop percent leased, which includes spaces less than 10,000 square
feet, was 90.3%, a decline of 110 basis points. For the three
months ended June 30, 2020, Regency executed 1.3 million square
feet of comparable new and renewal leases at blended rent spreads
of 4.0%. For the trailing twelve months, the Company executed 6.2
million square feet of comparable new and renewal leases at blended
rents spreads of 7.0%.
As previously reported, in April, Regency closed
on the sale of its joint venture interest in Kent Place, located in
Denver, CO, for $9.8 million.
As of June 30, 2020, the Company had $192.3
million of in-process developments and redevelopments with
approximately $70 million of remaining costs to complete. In light
of the COVID-19 pandemic, the Company continues to evaluate the
impacts to scope, investment, tenancy, timing, and return on
investment for all future pipeline projects to determine the most
appropriate direction of each project.
Business Update Related to
COVID-19
Regency’s 415 shopping centers have remained
open and operating throughout the pandemic and in compliance with
government COVID-19 guidelines and mandates. As of July 31, 2020,
approximately 95% of the Company’s tenants were open based on
pro-rata ABR, although restrictions can change daily.
As of July 31, 2020 the Company had executed
rent deferral agreements on over 600 leases. For deferrals executed
to date, total deferred rent is $16.4 million, representing a
weighted average deferral period of 2.9 months. Approximately 96%
of deferred rent is contracted to be collected by the end of
2021.
A presentation providing additional information
regarding COVID-19 business updates and impacts is posted on the
Company’s website at investors.regencycenters.com.
Rent Collections
As of July 31, 2020, the Company collected 72%
of second quarter pro-rata base rent and 77% adjusting for rent
that is subject to executed deferral agreements. The Company
collected 75% of July pro-rata base rent and 79% when adjusting for
rent that is subject to executed deferral agreements.
|
Q2 & July Rent Collections As of July 31,
2020 |
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|
Base Rent Collected |
Type* |
Tenant Categories |
% of Pro-rata ABR |
Q2 |
July |
Essential -
Retail/Services |
Grocers, drugstores, mass
merchandisers, banks, pet stores, office supplies, medical,
etc. |
43% |
97% |
96% |
Essential - Restaurants |
|
19% |
61% |
63% |
Quick Service |
Fast food, QSRs, limited service |
12% |
65% |
69% |
Full Service |
Casual dining, table service, fine dining |
7% |
52% |
52% |
Other Retail/Services |
Apparel, Personal Service,
professional service, fitness, other |
38% |
48% |
57% |
Total Portfolio |
|
100% |
72% |
75% |
Total Portfolio Collections Including Executed
Deferrals |
77% |
79% |
* Essential retailers defined as those that supply or provide
consumers and essential businesses with any basic necessary goods
and services; definition varies across municipalities. |
|
Liquidity
Regency has taken additional steps to further
strengthen its financial position and balance sheet, to enhance its
financial liquidity, and to provide financial flexibility amid the
evolving effects of the COVID-19 pandemic. As previously disclosed,
on May 11, 2020, the Company’s operating partnership, Regency
Centers, L.P., priced a public offering of $600 million 3.70% notes
due 2030 (the “Notes”). The Notes are due June 15, 2030 and were
priced at 99.805%. Interest on the Notes is payable semiannually on
June 15 and December 15 of each year, with the first payment due on
December 15, 2020. Net proceeds of the offering were used to pay
down the entirety of the outstanding balance on the corporate line
of credit.
On August 3, 2020, the Company notified U.S.
Bank National Association, as Trustee, of its intent to redeem on
September 2, 2020, its outstanding $300 million 3.75% Senior
Unsecured Notes due 2022. The redemption price will be determined
in accordance with the applicable indenture and is expected to be
$325.1 million, including accrued and unpaid interest through the
proposed redemption date and a make-whole amount as defined in such
indenture.
As of June 30, 2020, Regency has a cash balance
of approximately of $590 million and no outstanding balance under
its $1.25 billion revolving credit facility. Regency has no
unsecured maturities until 2022, and benefits from a low debt to
EBITDAre ratio of 5.6x as of June 30, 2020.
Dividend
On July 29, 2020, Regency’s Board declared a
quarterly cash dividend on the Company’s common stock of $0.595 per
share. The dividend is payable on August 24, 2020, to shareholders
of record as of August 14, 2020.
Guidance
Due to the uncertainty and continuing disruption
from COVID-19, the Company is not issuing guidance at this time,
but will evaluate resumption of guidance in the future as the
impact of COVID-19 on its tenants’ and the Company’s businesses is
better understood.
Conference Call Information
To discuss Regency’s second quarter results and
provide further business updates related to COVID-19, management
will host a conference call on Tuesday, August 4, 2020, at 11:00
a.m. ET. Dial-in and webcast information is listed below.
Second Quarter 2020 Earnings Conference
Call |
Date: |
Tuesday,
August 4, 2020 |
Time: |
11:00 a.m. ET |
Dial#: |
877-407-0789 or 201-689-8562 |
Webcast: |
investors.regencycenters.com |
Replay
Webcast Archive: Investor Relations page
under Events & Webcasts
Non-GAAP Disclosure
We believe these non-GAAP measures provide
useful information to our Board of Directors, management and
investors regarding certain trends relating to our financial
condition and results of operations. Our management uses these
non-GAAP measures to compare our performance to that of prior
periods for trend analyses, purposes of determining management
incentive compensation and budgeting, forecasting and planning
purposes.
We do not consider non-GAAP measures an
alternative to financial measures determined in accordance with
GAAP. The principal limitation of these non-GAAP financial measures
is they may exclude significant expense and income items that are
required by GAAP to be recognized in our consolidated financial
statements. In addition, they reflect the exercise of management’s
judgment about which expense and income items are excluded or
included in determining these non-GAAP financial measures. In order
to compensate for these limitations, reconciliations of the
non-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,
results of operations or future prospects of the Company.
NAREIT 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 on sale and impairments of
real estate, net of tax, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures. Regency computes NAREIT FFO for all periods presented in
accordance with NAREIT's definition. Since NAREIT FFO excludes
depreciation and amortization and gains on sales and impairments of
real estate, 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 in accordance with GAAP; and,
therefore, should not be considered a substitute measure of cash
flows from operations. The Company provides a reconciliation of Net
Income Attributable to Common Stockholders to NAREIT FFO.
Core Operating Earnings is an additional
performance measure that excludes from NAREIT FFO: (i) transaction
related income or expenses; (ii) gains or losses from the early
extinguishment of debt; (iii) certain non-cash components of
earnings 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 of Net Income to NAREIT FFO to Core
Operating Earnings.
|
Reconciliation of Net Income (Loss) Attributable to Common
Stockholders to NAREIT FFO and Core Operating Earnings - Actual (in
thousands) |
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
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|
|
For the Periods Ended
June 30, 2020 and 2019 |
Three Months Ended |
|
|
Year to Date |
|
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to NAREIT FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
19,046 |
|
51,728 |
|
|
$ |
(6,286 |
) |
142,174 |
|
Adjustments to reconcile to NAREIT Funds From Operations (1): |
|
|
|
|
|
|
|
|
|
Depreciation and amortization (excluding FF&E) |
92,756 |
|
100,168 |
|
|
189,388 |
|
204,665 |
|
Goodwill impairment |
- |
|
- |
|
|
132,128 |
|
- |
|
Gain on sale of real estate |
(7,464 |
) |
(2,410 |
) |
|
(45,416 |
) |
(39,462 |
) |
Provision for impairment of real estate |
230 |
|
10,441 |
|
|
1,014 |
|
12,113 |
|
Exchangeable operating partnership units |
87 |
|
109 |
|
|
(28 |
) |
299 |
|
|
|
|
|
|
|
|
|
|
|
NAREIT Funds From Operations |
$ |
104,655 |
|
160,036 |
|
|
$ |
270,800 |
|
319,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
NAREIT FFO to Core Operating Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAREIT Funds From
Operations |
$ |
104,655 |
|
160,036 |
|
|
$ |
270,800 |
|
319,789 |
|
Adjustments to reconcile to Core Operating Earnings (1): |
|
|
|
|
|
|
|
|
|
Early extinguishment of debt |
- |
|
- |
|
|
- |
|
10,591 |
|
Interest on bonds for period from notice to redemption |
- |
|
- |
|
|
- |
|
367 |
|
Straight line rent |
(3,733 |
) |
(4,032 |
) |
|
(7,730 |
) |
(8,528 |
) |
Uncollectible straight line rent |
18,585 |
|
3,527 |
|
|
23,258 |
|
3,854 |
|
Above/below market rent amortization, net |
(10,158 |
) |
(6,640 |
) |
|
(22,887 |
) |
(19,975 |
) |
Debt premium/discount amortization |
(402 |
) |
(459 |
) |
|
(812 |
) |
(986 |
) |
|
|
|
|
|
|
|
|
|
|
Core Operating Earnings |
$ |
108,947 |
|
152,432 |
|
|
$ |
262,629 |
|
305,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares For
Diluted Earnings per Share |
169,643 |
|
167,962 |
|
|
168,781 |
|
167,877 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares For
Diluted FFO and Core Operating Earnings per Share |
170,736 |
|
168,312 |
|
|
169,889 |
|
168,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
Regency's consolidated entities and its pro-rata share of
unconsolidated co-investment partnerships, net of pro-rata share
attributable to noncontrolling interests. |
|
Same property NOI is a key non-GAAP measure used by management
in evaluating the operating performance of Regency’s properties.
The Company provides a reconciliation of Net Income Attributable to
Common Stockholders to pro-rata same property NOI.
|
Reconciliation of Net Income Attributable to Common
Stockholders to Pro-Rata Same Property NOI - Actual (in
thousands) |
|
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|
|
|
|
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|
|
|
|
|
|
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|
For the Periods Ended
June 30, 2020 and 2019 |
Three Months Ended |
|
|
Year to Date |
|
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
19,046 |
|
51,728 |
|
|
$ |
(6,286 |
) |
142,174 |
|
Less: |
|
|
|
|
|
|
|
|
|
Management, transaction, and other fees |
(6,126 |
) |
(7,442 |
) |
|
(12,942 |
) |
(14,415 |
) |
Other(1) |
1,424 |
|
(8,355 |
) |
|
(12,386 |
) |
(27,325 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
85,058 |
|
93,589 |
|
|
174,353 |
|
190,783 |
|
General and administrative |
21,202 |
|
18,717 |
|
|
34,907 |
|
40,017 |
|
Other operating expense |
2,480 |
|
1,533 |
|
|
3,817 |
|
2,667 |
|
Other expense |
28,798 |
|
46,206 |
|
|
166,064 |
|
77,377 |
|
Equity in income (loss) of investments in real estate excluded from
NOI (2) |
16,878 |
|
11,976 |
|
|
32,361 |
|
6,347 |
|
Net income attributable to noncontrolling interests |
528 |
|
962 |
|
|
1,077 |
|
2,009 |
|
NOI |
169,288 |
|
208,914 |
|
|
380,965 |
|
419,634 |
|
|
|
|
|
|
|
|
|
|
|
Less non-same property NOI (3) |
(6,961 |
) |
(7,316 |
) |
|
(15,516 |
) |
(15,306 |
) |
|
|
|
|
|
|
|
|
|
|
Same Property NOI |
$ |
162,327 |
|
201,598 |
|
|
$ |
365,449 |
|
404,328 |
|
|
|
|
|
|
|
|
|
|
|
Same Property NOI without Termination Fees |
$ |
160,340 |
|
200,594 |
|
|
$ |
361,324 |
|
402,867 |
|
|
|
|
|
|
|
|
|
|
|
Same Property NOI without Termination Fees or
Redevelopments |
$ |
147,628 |
|
183,740 |
|
|
$ |
330,350 |
|
367,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
straight-line rental income and expense, net of reserves, above and
below market rent amortization, other fees, and noncontrolling
interests. |
(2) Includes
non-NOI expenses incurred at our unconsolidated real estate
partnerships, such as, but not limited to, straight-line rental
income, above and below market rent amortization, depreciation and
amortization, interest expense, and real estate gains and
impairments. |
(3) Includes
revenues and expenses attributable to Non-Same Property, Projects
in Development, corporate activities, and noncontrolling
interests. |
|
Reported results are preliminary and not final
until the filing of the Company’s Form 10-Q with the SEC and,
therefore, remain subject to adjustment.
The Company has published forward-looking
statements and additional financial information in its second
quarter 2020 supplemental information package that may help
investors estimate earnings for 2020. A copy of the Company’s
second quarter 2020 supplemental information will be available on
the Company's website at https://investors.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-Q for the
quarter ended June 30, 2020. Regency may, but assumes no obligation
to, update information in the supplemental package from time to
time.
About Regency Centers Corporation
(NASDAQ: REG)
Regency Centers is the preeminent national
owner, operator, and developer of shopping centers located in
affluent and densely populated trade areas. Our portfolio includes
thriving properties merchandised with highly productive grocers,
restaurants, service providers, and best-in-class retailers that
connect to their neighborhoods, communities, and customers.
Operating as a fully integrated real estate company, Regency
Centers is a qualified real estate investment trust (REIT) that is
self-administered, self-managed, and an S&P 500 Index member.
For more information, please visit RegencyCenters.com.
Forward-Looking Statements
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 may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties.
Our operations are subject to a number of risks
and uncertainties including, but not limited to, those listed
below. When considering an investment in our securities, you should
carefully read and consider these risks, together with all other
information in our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and our other filings and submissions to the SEC,
which provide much more information and detail on the risks
described below. If any of the events described in the following
risk factors actually occur, our business, financial condition or
operating results, as well as the market price of our securities,
could be materially adversely affected. 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. These risks and events include, without limitation:
Risks Related to the COVID-19 Pandemic
Pandemics or other health crises, such as the
current COVID-19 pandemic, may adversely affect our tenants’
financial condition, the profitability of our properties, our
access to the capital markets and could have a material adverse
effect on our business, results of operations, cash flows and
financial condition.
Risk Factors Related to the Retail Industry
Economic and market conditions may adversely
affect the retail industry and consequently reduce our revenues and
cash flow, and increase our operating expenses; Shifts in retail
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 detail
market conditions in geographic areas where our properties are
concentrated may reduce our revenues and cash flow; Our success
depends on the success and continued presence of “anchor” tenants;
A significant percentage of our revenues are derived from smaller
“shop space” tenants and our net income may be adversely impacted
if our smaller shop tenants are not successful; We may be unable to
collect balances due from tenants in bankruptcy.
Risk Factors Related to Real Estate Investments and
Operations
We are subject to numerous laws and regulations that may
adversely affect our operations or expose us to liability; 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 face risks if we expand into new markets; We may be
unable to sell properties when desired because of market
conditions; Certain of the properties in our portfolio are subject
to ground leases; if we are unable to renew a ground lease,
purchase the fee simple interest, or are found to be in breach of a
ground lease, we may be adversely affected; Climate change may
adversely impact our properties directly and may lead to additional
compliance obligations and costs as well as additional taxes and
fees; Geographic concentration of our properties makes our business
more vulnerable to natural disasters, severe weather conditions and
climate change; 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; Loss of our key personnel
may adversely affect our business and operations; We face
competition from numerous sources, including other REITs and other
real estate owners; Costs of environmental remediation may reduce
our cash flow available for distribution to stock and unit holders;
Compliance with the Americans with Disabilities Act and fire,
safety and other regulations may require us to make unexpected
expenditures; 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 our behalf could impact
our reputation and brand and expose us to potential liability and
loss of revenues.
Risk Factors Related to Our Partnership and Joint
Ventures
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 to stock and unit holders.
Risk Factors Related to Funding Strategies and Capital
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 may acquire properties or portfolios of
properties through tax-deferred contribution transactions, which
may result in stockholder dilution and limit our ability to sell
such assets; 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 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 swaps might change based on changes to the method in which
LIBOR or its replacement rate is determined.
Risk Factors Related to our Company and the Market Price
for Our Securities
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 dividends at historical
rates; Enhanced focus on corporate responsibility and
sustainability, specifically related to environmental, social and
governance matters, may impose additional costs and expose us to
new risks.
Risk Factors Related to Laws and
Regulations
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; Recent changes to the U.S.
tax laws may have a significant negative impact on the overall
economy, our tenants, our investors, and our business; Dividends
paid by REITs generally do not qualify for reduced tax rates;
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 our ability to hedge
effectively and may cause us to incur tax liabilities; Restrictions
on the ownership of the Parent Company's capital stock to preserve
its REIT status may delay or prevent a change in control; The
issuance of the Parent Company's capital stock may delay or prevent
a change in control.
Kathryn McKie904 598
7348KathrynMcKie@RegencyCenters.com
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