Regency Centers Corporation (“Regency” or the “Company”)
(NASDAQ:REG) today provided a business update related to COVID-19,
including an update on rent collections for April and May.
As of May 31, 2020, approximately 75% of
Regency’s tenants were open based on pro-rata Annual Base Rent
(“ABR”), and the Company had collected 68% and 58% of April and May
pro-rata base rent, respectively.
April and May Rent Collections (As of May
31, 2020) |
|
|
|
|
|
Type* |
Tenant Categories |
% of Total ABR |
April Base Rent Collected |
May Base Rent Collected |
Essential - Retail/Services |
Grocers, drugstores, mass merchandisers, banks, pet stores,
office supplies, medical, etc. |
43 |
% |
95 |
% |
92 |
% |
Essential - Restaurants |
|
19 |
% |
54 |
% |
42 |
% |
Quick Service |
Fast food, QSRs, limited service |
12 |
% |
59 |
% |
48 |
% |
Full Service |
Casual dining, table service, fine dining |
7 |
% |
45 |
% |
31 |
% |
Other
Retail/Services |
Soft goods, Personal
Service, professional service, fitness, other |
38 |
% |
44 |
% |
28 |
% |
Total Portfolio |
|
100 |
% |
68 |
% |
58 |
% |
|
|
|
|
|
* Essential
retailers defined as those that supply or provide consumers and
essential businesses with any basic necessary goods and services;
definition varies across municipalities. |
For further details, please refer to the
Company’s COVID-19 Business Update June 2020 presentation that can
be found on its website at Investors.regencycenters.com.
About Regency Centers Corporation
(NASDAQ: REG)
Regency Centers is the preeminent national
owner, operator, and developer of shopping centers located in
affluent and densely populated trade areas. Our portfolio includes
thriving properties merchandised with highly productive grocers,
restaurants, service providers, and best-in-class retailers that
connect to their neighborhoods, communities, and customers.
Operating as a fully integrated real estate company, Regency
Centers is a qualified real estate investment trust (REIT) that is
self-administered, self-managed, and an S&P 500 Index member.
For more information, please visit RegencyCenters.com.
Forward-Looking Statements
Certain statements in this document regarding
anticipated financial, business, legal or other outcomes including
business and market conditions, outlook and other similar
statements relating to Regency’s future events, developments, or
financial or operational performance or results, are
“forward-looking statements” made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking statements
are identified by the use of words such as “may,” “will,” “should,”
“expect,” “estimate,” “believe,” “intend,” “forecast,”
“anticipate,” “guidance,” and other similar language. However, the
absence of these or similar words or expressions does not mean a
statement is not forward-looking. While we believe these
forward-looking statements are reasonable when made,
forward-looking statements are not guarantees of future performance
or events and undue reliance should not be placed on these
statements. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we
can give no assurance these expectations will be attained, and it
is possible actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties.
Our operations are subject to a number of risks
and uncertainties including, but not limited to, those listed
below. When considering an investment in our securities, you should
carefully read and consider these risks, together with all other
information in our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and our other filings and submissions to the SEC,
which provide much more information and detail on the risks
described below. If any of the events described in the following
risk factors actually occur, our business, financial condition or
operating results, as well as the market price of our securities,
could be materially adversely affected. Forward-looking statements
are only as of the date they are made, and Regency undertakes no
duty to update its forward-looking statements except as required by
law. These risks and events include, without limitation:
Risks Related to the COVID-19
Pandemic
Pandemics or other health crises may adversely
affect our tenants’ financial condition, the profitability of our
properties, our access to the capital markets and could have a
material adverse effect on our business, results of operations,
cash flows and financial condition.
Risk Factors Related to the Retail
Industry
Economic and market conditions may adversely
affect the retail industry and consequently reduce our revenues and
cash flow, and increase our operating expenses; Shifts in retail
sales and delivery methods between brick and mortar stores,
e-commerce, home delivery, and curbside pick-up may adversely
impact our revenues and cash flows; Changing economic and detail
market conditions in geographic areas where our properties are
concentrated may reduce our revenues and cash flow; Our success
depends on the success and continued presence of “anchor” tenants;
A significant percentage of our revenues are derived from smaller
“shop space” tenants and our net income may be adversely impacted
if our smaller shop tenants are not successful; We may be unable to
collect balances due from tenants in bankruptcy.
Risk Factors Related to Real Estate
Investments and Operations
We are subject to numerous laws and regulations
that may adversely affect our operations or expose us to liability;
Our real estate assets may decline in value and be subject to
impairment losses which may reduce our net income; We face risks
associated with development, redevelopment and expansion of
properties; We face risks associated with the development of
mixed-use commercial properties; We face risks associated with the
acquisition of properties; We face risks if we expand into new
markets; We may be unable to sell properties when desired because
of market conditions; Certain of the properties in our portfolio
are subject to ground leases; if we are unable to renew a ground
lease, purchase the fee simple interest, or are found to be in
breach of a ground lease, we may be adversely affected; Climate
change may adversely impact our properties directly and may lead to
additional compliance obligations and costs as well as additional
taxes and fees; Geographic concentration of our properties makes
our business more vulnerable to natural disasters, severe weather
conditions and climate change; An uninsured loss or a loss that
exceeds the insurance coverage on our properties may subject us to
loss of capital and revenue on those properties; Loss of our key
personnel may adversely affect our business and operations; We face
competition from numerous sources, including other REITs and other
real estate owners; Costs of environmental remediation may reduce
our cash flow available for distribution to stock and unit holders;
Compliance with the Americans with Disabilities Act and fire,
safety and other regulations may require us to make unexpected
expenditures; The unauthorized access, use, theft or destruction of
tenant or employee personal, financial or other data or of
Regency’s proprietary or confidential information stored in our
information systems or by third parties on our behalf could impact
our reputation and brand and expose us to potential liability and
loss of revenues.
Risk Factors Related to Our Partnership
and Joint Ventures
We do not have voting control over all of the
properties owned in our co-investment partnerships and joint
ventures, so we are unable to ensure that our objectives will be
pursued; The termination of our partnerships may adversely affect
our cash flow, operating results, and our ability to make
distributions to stock and unit holders.
Risk Factors Related to Funding
Strategies and Capital Structure
Our ability to sell properties and fund
acquisitions and developments may be adversely impacted by higher
market capitalization rates and lower NOI at our properties which
may dilute earnings; We may acquire properties or portfolios of
properties through tax-deferred contribution transactions, which
may result in stockholder dilution and limit our ability to sell
such assets; We depend on external sources of capital, which may
not be available in the future on favorable terms or at all; Our
debt financing may adversely affect our business and financial
condition; Covenants in our debt agreements may restrict our
operating activities and adversely affect our financial condition;
Increases in interest rates would cause our borrowing costs to rise
and negatively impact our results of operations; Hedging activity
may expose us to risks, including the risks that a counterparty
will not perform and that the hedge will not perform and that the
hedge will not yield the economic benefits we anticipate, which may
adversely affect us; The interest rates on our Unsecured Credit
facilities as well as on our variable rate mortgages and interest
rate swaps might change based on changes to the method in which
LIBOR or its replacement rate is determined.
Risk Factors Related to our Company and
the Market Price for Our Securities
Changes in economic and market conditions may
adversely affect the market price of our securities; There is no
assurance that we will continue to pay dividends at historical
rates; Enhanced focus on corporate responsibility and
sustainability, specifically related to environmental, social and
governance matters, may impose additional costs and expose us to
new risks.
Risk Factors Related to Laws and
Regulations
If the Parent Company fails to qualify as a REIT
for federal income tax purposes, it would be subject to federal
income tax at regular corporate rates; Recent changes to the U.S.
tax laws may have a significant negative impact on the overall
economy, our tenants, our investors, and our business; Dividends
paid by REITs generally do not qualify for reduced tax rates;
Certain foreign stockholders may be subject to U.S. federal income
tax on gain recognized on a disposition of our common stock if we
do not qualify as a “domestically controlled” REIT; Legislative or
other actions affecting REITs may have a negative effect on us;
Complying with REIT requirements may limit our ability to hedge
effectively and may cause us to incur tax liabilities; Restrictions
on the ownership of the Parent Company's capital stock to preserve
its REIT status may delay or prevent a change in control; The
issuance of the Parent Company's capital stock may delay or prevent
a change in control.
Laura Clark904 598
7831LauraClark@RegencyCenters.com
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