Regency Centers Reports First Quarter Results.JACKSONVILLE, Fla. -- Regency Centers Corporation (NYSE NYSE See: New York Stock Exchange :REG) announced today financial and operating results for the quarter ended March 31, 2006. Funds From Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) for the first quarter were $58.8 million, or $0.85 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $57.3 million and $0.89 per diluted share for the same period last year. Regency reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ) as a supplemental earnings measure. The Company considers this a meaningful performance measurement in the Real Estate Investment Trust industry. Net income for common stockholders for the quarter was $65.9 million, or $0.97 per diluted share, compared to $34.7 million and $0.55 per diluted share for the same period last year, a per share increase of 76%. Gain on the sale of operating properties drove the increase, at $38.8 million for the quarter versus $1.6 million in the prior year. Portfolio Results At March 31, 2006, Regency's total assets before depreciation were $4.0 billion. The Company owned 386 shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into and single tenant properties, including those held in joint ventures. Including tenant-owned square footage, the portfolio encompassed 50.4 million square feet. At quarter end, Regency's results for wholly-owned properties and its pro-rata share of joint ventures were as follows: --Same store net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) growth: 3.8% --Same store rental rate growth on a cash basis: 10.6% --Percent leased (operating properties only): 95.1% --Leasing transactions for the year: 444 new and renewal lease transactions for a total of 2.0 million square feet Capital Recycling and Joint Ventures During the first quarter Regency sold four wholly-owned operating properties at an average cap rate of 7.0% and a combined gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. price of $72.0 million. Four joint venture operating properties were sold at an average cap rate of 8.1%. The gross sales price was $44.3 million with Regency's share being $11.1 million. Regency also sold 11 outparcels for total proceeds of $14.5 million during the quarter. During the quarter Macquarie CountryWide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Trust purchased an additional 10.05% interest in the Macquarie CountryWide-Regency II joint venture, reducing Regency's ownership interest in the venture to 24.95% from 35%. Macquarie CountryWide's purchase price for the 10.05% interest was $270 million and is on the same terms and conditions as the original purchase agreement related to the First Washington Portfolio. In the first quarter, the Regency-CalSTRS joint venture acquired Apple Valley Square, an 185,000 square foot center in Minneapolis, MN, for $25.9 million. Subsequent to quarter end, Regency purchased Twin City Plaza City Plaza is a shopping mall in historic downtown St. Albert, Alberta, Canada. This shopping plaza features heritage architecture and a European small shop ambience. It is home to BITNETS, the award winning technology business, other upscale offices and boutique-style shops. , a 286,000 square foot Shaw's-anchored community center in Boston, using 1031 proceeds. Development As of March 31, 2006 the Company had 39 properties under development for an estimated total net investment at completion of $742 million. The expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: on these in-process developments is 9.5%. The in-process developments are 46% funded and 77% leased and committed, including tenant-owned GLA. Capital Markets During the quarter Regency entered into forward starting swap transactions having notional amounts The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional. totaling $396.7 million to hedge $200 million of ten-year fixed rate financing expected to occur in 2010 and $200 million of ten-year fixed rate financing expected to occur in 2011. The final effective rates are expected to be approximately 6.0%. Dividend On May 3, 2006, the Board of Directors declared a quarterly cash dividend of $0.595 per share, payable on May 31, 2006 to shareholders of record on May 17, 2006. The Board also declared a quarterly cash dividend of $0.46563 for each depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. share representing Series 3 Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , payable on June 30, 2006 to shareholders of record on June 1, 2006; a quarterly cash dividend of $0.45313 for each depositary share representing Series 4 Preferred stock, payable on June 30, 2006 to shareholders of record on June 1, 2006; and a quarterly cash dividend of $0.41875 on the Series 5 Preferred stock, payable on June 30, 2006 to shareholders of record on June 1, 2006. Conference Call In conjunction with Regency's first quarter results, you are invited to listen to its conference call that will be broadcast live over the internet on Thursday, May 4, 2006 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on the Company's web site http://www.RegencyCenters.com. If you are unable to participate during the live webcast, the call will also be archived on the web site. The Company has published additional forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in its first quarter 2006 supplemental information package that may help investors estimate earnings for 2006. A copy of the Company's first quarter 2006 supplemental information will be available on the Company's web site at http://www.RegencyCenters.com or by written request to Diane Ortolano, Investor Relations Investor relations The process by which the corporation communicates with its investors. , Regency Centers Corporation, 121 West Forsyth Street, Suite 200, Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. , 32202. The supplemental information package contains more detailed financial and property results including financial statements, an outstanding debt summary, acquisition and development activity, investments in joint ventures, information pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to securities issued other than common stock, property details, a significant tenant rent report and a lease expiration table in addition to earnings and valuation guidance assumptions. The information provided in the supplemental package is unaudited and there can be no assurance that the information will not vary from the final information for the quarter ended March 31, 2006. Regency may, but assumes no obligation to, update information in the supplemental package from time to time.
Funds From Operations Reconciliation to Net Income -- Actual Results
For the Periods Ended March 31, 2006 Three Months Ended
and 2005 2006 2005
Funds From Operations:
Net income for common stockholders $ 65,855,646 34,685,762
Add (Less):
Depreciation expense - consolidated
properties 17,953,217 17,945,952
Depreciation expense - unconsolidated
joint ventures 11,306,203 2,561,522
Less: consolidated JV partner's share
of depreciation (57,660) (48,261)
Amortization of leasing commissions
and intangibles 2,673,529 2,804,738
(Gain) on sale of operating properties (40,113,730) (1,535,526)
Minority interest of exchangeable
partnership units 1,180,054 862,641
Funds From Operations $ 58,797,259 57,276,828
------------- -------------
Dividends assumed on treasury method
shares (342,245) (325,955)
------------- -------------
Funds From Operations for calculating
Diluted FFO per Share $ 58,455,014 56,950,873
============= =============
Weighted Average Shares For Diluted FFO
per Share 69,039,670 63,992,017
Reported results are preliminary and not final until the filing of our
Form 10-Q with the SEC and, therefore, remain subject to adjustment.
Regency Centers Corporation (NYSE:REG) Regency is the leading national owner, operator, and developer focused on grocery-anchored, neighborhood and community retail centers. At March 31, 2006, the Company owned 386 retail properties, including those held in joint ventures. Including tenant-owned square footage, the portfolio encompassed 50.4 million square feet located in top markets throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Since 2000 Regency has developed 147 shopping centers, including those currently in-process, representing an investment at completion of approximately $2.0 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed. Forward-looking statements involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Regency Centers Corporation with the SEC, specifically the most recent reports on forms 10K and 10Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements. |
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