Regency Centers (REG) investor relations material

Business performance and growth outlook

• Achieved record-high same-property growth, with over 7% growth last quarter, driven by robust leasing and contractual rent increases.

• Raised full-year earnings guidance, including NOI, FFO, and core operating earnings, following strong first-half results.

• Over $600 million deployed in accretive capital, including a $350 million+ acquisition in Southern California, financed leverage-neutral.

• Maintains over 96% leased occupancy, with commenced occupancy still having room to grow, supporting future NOI gains.

• Targets 2–2.5% annual rent growth, with redevelopment and occupancy gains aiming for 3%+ same-property NOI growth.

Development and investment strategy

• Over $500 million in development/redevelopment projects underway at blended 9% yields; expects $250 million+ in new starts for a third consecutive year.

• Ground-up development now prioritized over redevelopment, with most projects in master-planned communities and high pre-leasing rates.

• Focuses on projects where land cost, construction, and rent economics meet a 7–7.5% return threshold, targeting 150+ bps spread over cap rates.

• No speculative development; projects are de-risked with anchor tenants secured before construction.

• Supply growth remains muted, benefiting existing portfolio and supporting high occupancy.

Acquisition and external growth

• Remains active in acquisitions, focusing on off-market and redevelopment opportunities, with cap rates in the low-5% to low-6% range.

• Recent Southern California portfolio acquisition offers near-term upside via redevelopment and leasing of pharmacy vacancies.

• Pursues trade area-focused investments, including in underhunted regions and through long-term capital partnerships.

• Prioritizes development over acquisitions but remains opportunistic and creative in deal sourcing.