Regency Centers Corporation Q3 FY2025 earnings call

• Strong same-property NOI and earnings growth due to leasing success, healthy tenants, and capital allocation. - Commenced over $170 million of development and redevelopment projects in Q3, with year-to-date total over $220 million. - Started new ground-up projects like Ellis Village and The Village at Seven Pines. - Acquired 5-property $350 million RMB portfolio in South Orange County and purchased JV partner's interests in grocery-anchored centers. - Dividend increased by over 7% due to strong performance.

Regency Centers achieved strong same-property NOI growth, with nearly 5% growth driven by 4.7% base rent growth. The same-property percent leased rate sits at 96.4%. Revenue contribution comes from successful leasing, development, and redevelopment efforts. The company also saw healthy tenant sales and historically low bad debt, contributing to earnings growth. Investments team deployed over $750 million into high-quality opportunities, with over $800 million in starts over the past 3 years.

• Anticipates same-property NOI growth of 5.25% to 5.5% in 2025, driven by lower credit loss and higher rent commencement from SNO pipeline, with credit loss guidance range decreased to 50-75 basis points. - Raised full-year earnings per share outlook, with Nareit FFO growth mid-7% and core operating earnings mid-6%. - Sees same-property NOI growth mid-3% in 2026, total NOI growth mid-6% in 2026, with ~100-150 basis point drag from refinancing in 2026.

Q: Can you provide some color on this 11 asset distribution transaction with your JV partner? What options does this transaction open for Regency?

A: Nicholas Wibbenmeyer said GRI has been a good long-term partner, the portfolio aligns with strategy, and this allowed a mini DIK for partners to own 6 assets and Regency to own 5 assets at 100%, expecting partnership to continue.

Q: What's changing from the environment that you're seeing there for same-property NOI growth in 2026? Or can you help bridge to get there?

A: Michael Mas said 2025's growth was due to high commenced occupancy and extreme uptick in recovery rate, and 2026's mid-3% same-property NOI growth is expected on top of good growth in 2025, with development contributions adding to growth.

Q: How should we be thinking about the potential on development and redevelopment starts into next year, considering an increasingly competitive transaction market and strong leasing?

A: Nicholas Wibbenmeyer said they continue to find more than fair share of investment opportunities in development and redevelopment, with the split leaning into ground-up development as in-process developments outnumber redevelopments currently.