FORM 8-K |
Florida | 001-12298 | 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 6, 2012. |
December 6, 2012 | REGENCY CENTERS CORPORATION | |
/s/ J. Christian Leavitt J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer) |
• | Sustaining growth in per share FFO & NAV |
• | Reliable growth in net operating income from a portfolio of dominant, infill shopping centers |
• | Balance sheet strength and a track record of accessing cost-effective capital |
• | Disciplined, value-add development capabilities creating dominant, infill shopping centers |
• | Engaged team of talented and dedicated people that operates efficiently |
TSR from IPO | ||
REG | 11.4% | |
REIT Index | 10.7% | |
SC Index | 9.2% | |
S&P 500 | 8% |
• | Achieve and maintain occupancy above 95% |
• | Contractual rent increases result in ~1.4% increase in NOI |
• | Target 10% rent growth |
• | Merchandise with best-in-class retailers and distinguish center appearance through intense maintenance and renovations |
• | Rigorously review portfolio to identify risks and execute on disciplined, proactive recycling strategy |
◦ | Retail is an evolutionary industry constantly impacted by changes, including bankruptcy, liquidation, restructuring and M&A |
• | Disciplined development and acquisition of dominant centers |
◦ | Own highest-quality real estate in protected markets where “bad news is good news” |
• | Net investment activity will positively impact reliability of growth in NOI and NAV, while leveraging economies of scale |
2011A | 2012E | 2013E | |
Core Portfolio | 83% | 90% | 93% |
Non-Strategic/Low-Risk | 6% | 6% | 5% |
Risk | 11% | 4% | 2% |
Total | 100% | 100% | 100% |
• | Dominant centers perform regardless of market, particularly in supply-constrained trade areas |
• | Objective: eliminate non-strategic/low-risk and risk assets |
• | Invest on basis accretive to cost of capital, NAV and acquisition cap rates |
• | Create dominant centers unavailable for purchase that enhance existing portfolio |
• | Minimize operational risks to continuing ownership |
◦ | Execute long-term leases with protective provisions |
◦ | Design centers with functional site plans, exceptional visibility and proper access |
• | Unique combination of in-house expertise, presence in key markets and close relationships with leading anchors and local partners |
• | Sharpened and disciplined focus on development of dominant core centers in target markets with productive grocers |
• | Maintaining best-in-class development platform requires: |
Track Record | Project Count | Investment ($ millions) | Yield(1) | Est. Value Creation at Market Cap Rates(1) ($ millions) | Profit Margin |
2000 - Current | 183 | $3,048 | 8.8% | $714 | 23.4% |
Since Q1 2010 | 10 | $271 | 9.1%(2) | $126 | 46.4% |
2012E | 2013E | |
Same property percent leased at period end | 94.0% - 94.5% | 94.0% - 95.0% |
Same property average percent leased | 94.1% | 94.0% - 94.5% |
Same property NOI growth (excluding termination fees) | 3.6% - 4.1% | 2.0% - 3.0% |
$000s | 2012E | 2013E |
Development starts | $150,000 | $100,000 - $150,000 |
Dispositions (REG pro-rata) | $355,000 - $405,000 | $150,000 - $200,000 |
Dispositions (cap rate) | 7.5% - 8.0% | 7.3% - 8.0% |
Acquisitions (REG pro-rata) | $95,000 - $250,000 | $0 - $50,000 |
Acquisitions (cap rate) | 5.2% - 5.7% | 5.2% - 5.7% |
$000s | 2012E | 2013E |
Net interest expense | $112,500 - $113,500 | $107,000 - $110,000 |
Capitalized interest | $3,500 - $4,000 | $4,000 - $6,000 |
Net G&A | $59,500 - $61,500 | $60,000 - $63,000 |
Recurring third party fees and commissions | $26,000 - $26,500 | $24,500 - $26,000 |
2012E | 2013E | |
Core FFO/Share | $2.50 - $2.53 | $2.45 - $2.53 |
FFO/Share | $2.36 - $2.40 | $2.42 - $2.50 |
2012 Core FFO Range | $ | 2.50 | $ | 2.53 | |||||
NOI* | |||||||||
Same Property | 0.09 | 0.13 | |||||||
Non Same Property & Development | 0.05 | 0.07 | |||||||
2012 Net Property Sales | (0.12 | ) | (0.13 | ) | |||||
2013 Net Property Sales | (0.11 | ) | (0.06 | ) | |||||
Net G&A | — | (0.03 | ) | ||||||
Net Interest Expense & Preferred Dividends | 0.07 | 0.05 | |||||||
Third Party Fees & Commissions | (0.01 | ) | (0.01 | ) | |||||
Before change in weighted average shares | $ | 2.47 | $ | 2.55 | |||||
Change in weighted average shares | (0.02 | ) | (0.02 | ) | |||||
2013 Core FFO Range | $ | 2.45 | $ | 2.53 | |||||
*Wholly owned and Regency’s pro rata share of co-investment partnerships |
Full Year | Full Year | ||||||||||
Funds From Operations Guidance: | 2012 | 2013 | |||||||||
Net income attributable to common stockholders | $0.41 | $0.45 | $0.59 | $0.67 | |||||||
Adjustments to reconcile net income to FFO: | |||||||||||
Depreciation expense, amortization and other amounts | $1.95 | $1.95 | $1.83 | $1.83 | |||||||
Funds From Operations | $2.36 | $2.40 | $2.42 | $2.50 | |||||||
Adjustments to reconcile FFO to Core FFO: | |||||||||||
One-time additional preferred dividend payment | 0.02 | 0.02 | — | — | |||||||
Gain on redemption of preferred units | (0.02) | (0.02) | — | — | |||||||
Original preferred stock issuance costs expensed | 0.11 | 0.11 | — | — | |||||||
All other non-core amounts | 0.03 | 0.02 | 0.03 | 0.03 | |||||||
Core Funds From Operations | $2.50 | $2.53 | $2.45 | $2.53 | |||||||
Weighted average shares (000's) | 89,836 | 90,838 |