Regency Centers Corporation Q4 FY2025 earnings call

• Lisa Palmer highlighted the success in 2025 driven by quality grocery-anchored shopping centers, strong operating and investment platforms. They had healthy demand for space, low bad debt, and growth in tenant sales/foot traffic. • Alan Roth noted 5.3% same-property NOI growth, strong tenant demand across categories, high shop occupancy (94.2% at year-end), impressive rent spreads (12% cash, 25% GAAP in Q4). • Nick Wibbenmeyer discussed active investment platform with over $825 million deployed, strong development pipeline with over $300 million in new project starts in 2025, and future pipeline of nearly $600 million. • Mike Mas mentioned Nareit FFO and core operating EPS growth, same-property NOI growth over 5%, and guidance for 2026 same-property NOI growth 3.25%-3.75% driven by rent spreads, redevelopment deliveries, etc.

In 2025, Regency Centers delivered strong same-property NOI growth of 5.3%. They achieved Nareit FFO per share growth of close to 8% and core operating earnings per share growth of nearly 7% for the full year. The company had robust operating fundamentals with historically low bad debt, strong tenant sales and foot traffic. On investments, they deployed over $825 million into accretive investments, including over $500 million in acquisitions and $300 million in development and redevelopment projects.

• Expect same-property NOI growth in 2026 in the range of 3.25% to 3.75%, driven by rent spreads, steps, redevelopment deliveries, and SNO pipeline commencement. • Anticipate uncollectible lease income below historical average of 50 basis points of revenues. • Q1 growth expected above full-year range due to higher expense recovery and other income; Q2 growth expected below full-year range due to CAM reconciliation comparison. • Total NOI growth to benefit from strong external growth from developments and acquisitions. • Debt refinancing activity expected to have 100-150 basis point impact, with midpoint of guidance mid-5% to 6% excluding this impact.

• Market uncertainties and consumer resilience could impact results. • Construction cost volatility, though currently stable, could affect development yields. • Competition for development opportunities could increase, impacting ability to source and execute on projects.

Q: Samir Khanal asked about acquisitions and market opportunities.

A: Nick Wibbenmeyer said they're seeing opportunities in 5%-6% cap range, will pursue accretive acquisitions. Lisa Palmer added they'll only do accretive acquisitions.

Q: Michael Goldsmith asked about Amazon Fresh closures.

A: Lisa Palmer said Amazon is leaning into Whole Foods expansion, Alan Roth noted 4 Amazon Fresh stores closed, but grocery sector strong with potential conversions and interest.

Q: Cooper Clark asked about development and redevelopment spend mix.

A: Michael Mas said ~2/3 ground-up, 1/3 redev; Nick Wibbenmeyer said 2025 starts were 75% ground-up, future pipeline ~75% ground-up.

Q: Michael Goldsmith followed up on Amazon Fresh real estate.

A: Lisa Palmer and Alan Roth discussed grocery sector strength and potential conversions/interest.

Q: Craig Mailman asked about shop occupancy and Amazon term fees.

A: Alan Roth said no ceiling on shop occupancy, demand still there; term fees TBD on a case-by-case basis.

Q: Greg McGinniss asked about consumer resilience and tenant watch list.

A: Alan Roth and Lisa Palmer said tenant health strong, ARs low, sales/foot traffic up, but monitoring.

Q: Todd Thomas asked about development activity.

A: Nick Wibbenmeyer said development activity poised to increase, but competition may increase.

Q: Michael Griffin asked about anchor leasing leverage.

A: Alan Roth said runway on anchor occupancy, leveraging demand to negotiate favorable terms.

Q: Juan Sanabria asked about rent bumps and build occupancy.

A: Alan Roth discussed rent steps in deals; Michael Mas discussed commenced occupancy and guide assumptions.

Q: Floris Van Dijkum asked about redevelopment potential.

A: Nicholas Wibbenmeyer said ~25% of future pipeline in redevelopment, teams working on opportunities.

Q: Ravi Vaidya asked about leasing spreads.

A: Alan Roth said supply-demand and lumpy quarters drove renewal spreads exceeding new spreads.

Q: Ronald Kamdem asked about acquisition cap rates and commenced occupancy slide.

A: Nicholas Wibbenmeyer said development yields ~7% vs acquisition cap rates; Michael Mas said commenced occupancy slide removed as narrative shifted to forward growth.

Q: Sydnie Rohme asked about construction cost assumptions.

A: Nicholas Wibbenmeyer said construction costs stable, confident in underwriting.

Q: Alec Feygin asked about development pursuit costs.

A: Michael Mas said elevated Q4 due to pursuits, teams efficient.

Q: Michael Gorman asked about capital recycling.

A: Lisa Palmer said dispositions part of strategy, not funding for development, used for accretive acquisitions.

Q: Michael Mueller asked about Crystal Brook acquisition.

A: Michael Mas and Nicholas Wibbenmeyer discussed it as an acquired redevelopment project.

Q: Omotayo Okusanya asked about tariffs and tenants.

A: Alan Roth said little impact on portfolio as retailers diversify supply chains.

Q: Paulina Rojas Schmidt asked about exceeding same-property guidance.

A: Michael Mas said commenced occupancy and capital allocation could drive upside.