Regency Centers (REG) investor relations material

Operating performance and market fundamentals

• NOI and earnings growth remain strong, supported by robust fundamentals and disciplined capital allocation.

• Leasing leverage is high due to limited high-quality space and broad-based tenant demand, driving above-average rent growth and re-leasing spreads.

• Occupancy is surpassing prior highs, prompting an increase in 2026 earnings guidance, including Same Property NOI, Nareit FFO, and Core Operating Earnings.

• Portfolio performance is consistent across markets and income segments, with necessity, convenience, and value retail capturing broad purchasing power.

• No slowdown observed in rent growth or leasing activity, with credit loss and watchlist metrics outperforming expectations.

Development, redevelopment, and capital allocation

• Nearly $700 million in development and redevelopment projects are underway, with blended yields around 9%.

• Annual development and redevelopment starts are expected to approach $400 million, with ground-up projects making up about two-thirds of the pipeline.

• Projects are delivered at spreads of at least 150 basis points above market cap rates, generating NAV creation and earnings accretion.

• Most development opportunities are sourced through master plan community relationships, with minimal land banking.

• Pre-leasing is strong, with most projects delivered nearly fully leased at completion.

Competitive landscape and sector trends

• The development business is difficult to replicate due to long-standing expertise, relationships, and capital advantages.

• Market remains fragmented, with competition mainly from private regional developers.

• Retailers and consumers have renewed appreciation for physical stores, fueling expansion and demand for new centers.

• Grocery-anchored strategy focuses on top operators and high-performing locations, with proactive asset management.

• Consolidation in the grocery sector is monitored, but portfolio quality and location mitigate tenant risk.