FORM 8-K |
Florida (Regency Centers Corporation) | 1-12298 | 59-3191743 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One Independent Drive, Suite 114 Jacksonville, Florida | 32202 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number including area code: (904) 598-7000 | ||
Not Applicable | ||
(Former name or former address, if changed since last report) | ||
Exhibit 99.1 | Excerpt from Regency Investor and Analyst Day Presentation posted on Regency's website on December 7, 2011. |
December 7, 2011 | REGENCY CENTERS CORPORATION | |
/s/ J. Christian Leavitt J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer) |
1. | Generate shareholder return in excess of the FTSE Shopping Center REIT Index |
2. | Sustain long-term, reliable growth in NAV and Recurring FFO per share of ~5% |
3. | Strengthen balance sheet by improving financial ratios |
• | Debt to assets: < 40% |
• | Debt to EBITDA: < 5.5X |
• | Fixed charge coverage: > 2.5X |
1. | Own top-performing shopping center portfolio, generating reliable NOI growth |
• | Primarily anchored by market-dominant and highly productive grocers |
• | Demographic profiles exceeding CBSA averages with substantial purchasing power |
• | Centers with infill characteristics or high barriers to entry |
2. | Grow NOI by 3%, while returning to 95% leased by 2014 |
• | Lease spaces < 10,000 SF to 90% |
• | Reduce move outs and bad debt expense to pre-recession levels |
• | Return rent growth to 5% - 10% range |
3. | Start annually $150 million - $200 million of value-added developments and redevelopments |
• | Predominantly focus on and pursue: |
• | Core shopping center developments intended to be held long-term in the operating portfolio |
• | Centers that will enhance the overall quality of the portfolio |
• | Located in desirable markets, with infill characteristics |
• | Primarily anchored by dominant national chains and high volume specialty grocers |
• | Create additional value in operating portfolio through redevelopments |
• | Convert land to core developments or cash |
4. | Enhance NOI growth and portfolio quality through the sale of centers with risk to long term NOI and other lower quality centers |
• | $150 million - $250 million in 2012 dispositions |
• | Continuously evaluate the acceleration of plan if circumstances and conditions permit |
• | Opportunistically recycle funds |
• | Development and acquisition of “A” centers |
• | Reduction in leverage |
• | Repurchase of stock |
• | Utilize co-investment partnerships where appropriate to augment and leverage Regency's returns on capital |
5. | Preserve and enhance the balance sheet and access to capital in an uncertain and volatile economy, while funding investments in dominant centers, opportunistically reduce leverage and grow NAV per share |
• | Cash flow |
• | Asset sales |
• | Co-investment partnerships |
• | Equity on NAV accretive basis |
2011E | 2012E | |
Same property percent leased at period end | 93.0% - 93.5% | 93.0% - 94.0% |
Same property average percent leased | 92.5% | 92.5% - 93.5% |
Same property NOI growth (excluding termination fees) | (0.2)% - 0.3% | 1.5% - 3.0% |
Rental rate growth (spaces vacant less than 12 months) | 0.0% - 1.0% | (1.0%) – 2.5% |
2011E | 2012E | |
Acquisitions (REG pro-rata) | $100,643 - $140,000 | $100,000 - $200,000 |
Acquisitions (cap rate) | 5.8% - 6.0% | 5.7% - 6.3% |
Dispositions (REG pro-rata) | $84,000 - $91,000 | $150,000 - $250,000 |
Dispositions (cap rate) | 7.8% - 7.9% | 8.0% - 8.8% |
Development starts | $34,000 - $94,000 | $75,000 - $150,000 |
2011E | 2012E | |
Net interest expense | $123,000 - $123,500 | $112,500 - $114,500 |
Capitalized interest | $1,500 - $2,000 | $2,000 - $3,000 |
Net G&A | $56,000 - $57,000 | $58,500 - $62,500 |
Recurring third party fees and commissions | $28,000 - $29,000 | $24,800 - $27,000 |
Transaction profits net of taxes, acquisition costs and dead deal costs | $6,800 - $7,800 | ($5,500) – ($3,500) |
2011 Recurring Range | $ | 2.35 | $ | 2.38 | |||||
NOI* | |||||||||
Same store NOI | 0.07 | 0.14 | |||||||
Non same store NOI, including developments | 0.02 | 0.02 | |||||||
Net capital recycling | (0.08 | ) | (0.04 | ) | |||||
Recurring net G&A | (0.05 | ) | (0.07 | ) | |||||
Change in interest expense* | 0.15 | 0.15 | |||||||
Recurring fees | (0.05 | ) | (0.03 | ) | |||||
Before weighted average shares | $ | 2.41 | $ | 2.55 | |||||
Impact from change in weighted average shares | (0.05 | ) | (0.05 | ) | |||||
2012 Recurring FFO | $ | 2.36 | $ | 2.50 | |||||
*Wholly owned and Regency’s pro rata share of co-investment partnerships |
2011E | 2012E | |
Recurring FFO/Share | $2.35 - $2.38 | $2.36 - $2.50 |
FFO/Share | $2.46 - $2.49 | $2.30 - $2.46 |
Contribution from…. | Assumptions | |
Net Operating Income (NOI) | 4% -5% | Pro-rata NOI; Future growth at 2.5% - 3.0% |
New Developments | 5% | Develop $150 million per year |
Capital Recycling | (1)% - (0.5)% | Recycle $150 million to $200 million per year; Acquisitions average 5.8%; Dispositions average 7.6% |
Recurring Fees and Other | 0.5% | |
G&A | (1)% | |
Financing Costs | (3)% | New development financed on a leverage neutral basis using a combination of debt, equity, and free cash flow |
Annual Recurring FFO per Share Growth | 4.5% - 6% |
Funds from Operations Guidance: | Full Year 2011 | Full Year 2012 | |||||||||||
Net income attributable to common stockholders | $ | 0.39 | 0.42 | $ | 0.39 | 0.55 | |||||||
Adjustments to reconcile net income to FFO: | |||||||||||||
Depreciation expense, amortization and other amounts as defined below | 2.07 | 2.07 | 1.91 | 1.91 | |||||||||
Funds From Operations | $ | 2.46 | 2.49 | $ | 2.30 | 2.46 | |||||||
Adjustments to reconcile FFO to Recurring FFO: | |||||||||||||
All non-recurring items as defined below | $ | (0.11 | ) | (0.11 | ) | 0.06 | 0.04 | ||||||
Recurring Funds From Operations | $ | 2.35 | 2.38 | $ | 2.36 | 2.50 | |||||||
Weighted average shares (000's) | 88,646 | 90,414 |