Regency Centers Corporation · NASDAQ:REG
Regency Centers — Investor Presentation (November 2020)
44 slides from Regency Centers's investor presentation, Nov 17, 2020
Slide 1: Investor Presentation November 2020
1 NOVEMBER 2020 INVESTOR PRESENTATION Investor Presentation November 2020 Regency Centers Pablo Plaza | Jacksonville, FL
Slide 2: Safe Harbor and Non-GAAP Disclosures
2 NOVEMBER 2020 INVESTOR PRESENTATION Safe Harbor and Non-GAAP Disclosures 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 Rege
Slide 3: Regency Overview
3 NOVEMBER 2020 INVESTOR PRESENTATION Regency Overview (1) REGENCY AT A G L A N C E 1963 Founded REG Nasdaq S&P 500 Member $11B+ Total Market Cap 400+ properties located across the country >93% Leased 56M+ SF Total GLA 8000+ Total Tenants $22+ PSF Average Annual Base Rent 80% of properties are groce
Slide 4: Regency's Unequaled Strategic Advantages
4 NOVEMBER 2020 INVESTOR PRESENTATION Regency’s Unequaled Strategic Advantages High Quality Open-Air Shopping Center Portfolio 80% grocery-anchored neighborhood & community centers Necessity, service, convenience, and value retailers serving the essential needs of our communities Well located in hig
Slide 5: High Quality Open-Air Shopping Center Portfolio
5 NOVEMBER 2020 INVESTOR PRESENTATION 1 High Quality Open-Air Shopping Center Portfolio Aventura Shopping Center | Miami, FL
Slide 6: Significant Presence in Top Markets with Strategic Advantages
6 NOVEMBER 2020 INVESTOR PRESENTATION HIGH QUALITY OPEN-AIR SHOPPING CENTER PORTFOLIO Significant Presence in Top Markets with Strategic Advantages from National Breadth and Local Expertise TOP REGIONS/STATES >25% of NOI 11% - 25% of NOI 5% - 10% of NOI <5% of NOI TOP 5 MARKETS % of NOI Miami 12% Sa
Slide 7: Premier Asset Quality and Trade Areas
7 NOVEMBER 2020 INVESTOR PRESENTATION Premier Asset Quality and Trade Areas Premier centers are those with inherent characteristics that will position a center for long-term competitive advantages, resulting in superior NOI growth, including strong trade areas that feature buying power and spending
Slide 8: Sector Leading Asset Quality
8 NOVEMBER 2020 INVESTOR PRESENTATION Sector Leading Asset Quality FRT REG ROIC WRI RPAI SITC KIM BRX $22.87 Peer WTD Avg.1 $19.30 Annual Base Rent Per Square Foot HIGH QUALITY OPEN-AIR SHOPPING CENTER PORTFOLIO ‑FRT REG ROIC SITC RPAI KIM WRI BRX ‑Median HHI and Population (ii) MHHI ($) POPULATION
Slide 9: Strong Top Tenant Roster
9 NOVEMBER 2020 INVESTOR PRESENTATION Strong Top Tenant Roster 5 of Regency's Top 7 Tenants are High-Performing Grocers ‑Moody's PRIVATE Baa1 PRIVATE A2 A2 Baa2 Baa1 PRIVATE Baa3 Ba3 S&P PRIVATE BBB PRIVATE AA- A BBB BBB PRIVATE BB+ B+ Publix 3.3% Kroger 3.0% Safeway Albertsons 2.9% Whole Foods 2.6%
Slide 10: Grocery-Anchored Advantage
10 NOVEMBER 2020 INVESTOR PRESENTATION Grocery-Anchored Advantage A focus on necessity, service, convenience, and value is increasingly critical in today’s environment. Regency's shopping center portfolio is 80% groceryanchored, with grocer sales that average >$650 PSF. Grocery-anchored centers loca
Slide 11: Connecting with Thriving Grocers
11 NOVEMBER 2020 INVESTOR PRESENTATION Connecting with Thriving Grocers Top grocers are investing in their physical and digital footprint to provide a seamless and differentiated shopping experience to meet the evolving needs of their customers. Company Filings & Websites, Creditntell HIGH QUALITY O
Slide 12: Continued Evolution of Physical Retailing
12 NOVEMBER 2020 INVESTOR PRESENTATION Continued Evolution of Physical Retailing Brick and mortar retailers and landlords are learning to adapt to an evolving retail landscape. Some trends have been accelerated by the COVID-19 pandemic, while others have taken shape. Regency is working with, partner
Slide 13: Expanding Retailers
13 NOVEMBER 2020 INVESTOR PRESENTATION Expanding Retailers Best-in-Class Operators Opening New Locations in High-Quality Centers In addition to expanding grocers, Regency continues to negotiate and sign leases with relevant retailers around the country in numerous categories. HIGH QUALITY OPEN-AIR S
Slide 14: Strong Value Creation Pipeline
14 NOVEMBER 2020 INVESTOR PRESENTATION 2 Strong Value Creation Pipeline Carytown Exchange | Richmond, VA
Slide 15: Development & Redevelopment Leading to Significant Value Creation
15 NOVEMBER 2020 INVESTOR PRESENTATION Development & Redevelopment Leading to Significant Value Creation Regency invests in Premier Shopping Centers in dense infill and affluent areas with dominant anchors and a focus on long-term growth potential. Historical Development and Redevelopment Completion
Slide 16: In-Process Developments & Redevelopments
16 NOVEMBER 2020 INVESTOR PRESENTATION STRONG VALUE CREATION PIPELINE Regency continues to evaluate the impacts to project scope, costs, tenancy, timing and return on investment on all in-process and pipeline projects to determine the most appropriate strategy. In-Process Developments & Redevelopmen
Slide 17: Future Redevelopment Pipeline
17 NOVEMBER 2020 INVESTOR PRESENTATION Future Redevelopment Pipeline STRONG VALUE CREATION PIPELINE Regency’s flexible redevelopment pipeline of value-add projects includes: Large scale projects, many of which incorporate adjacent and vertical mixed use Addition of GLA through tenant expansions Outp
Slide 18: Balance Sheet and Liquidity Strength
18 NOVEMBER 2020 INVESTOR PRESENTATION 3 Balance Sheet and Liquidity Strength Ballard Blocks | Seattle, WA
Slide 19: Strong Balance Sheet Position
19 NOVEMBER 2020 INVESTOR PRESENTATION BALANCE SHEET AND LIQUIDITY STRENGTH Strong Balance Sheet Position Capital Structure (% of total capitalization) 31% 5% 4% 3% 57% $11.3 Billion Total Capitalization EQUITY UNSECURED DEBT – BONDS UNCONSOLIDATED DEBT - SECURED CONSOLIDATED DEBT - SECURED UNSECURE
Slide 20: Low Leverage and Conservative Debt Covenant Ratios
20 NOVEMBER 2020 INVESTOR PRESENTATION BALANCE SHEET AND LIQUIDITY STRENGTH Low Leverage and Conservative Debt Covenant Ratios Regency maintains a long-standing commitment to balance sheet strength and stands today with immediate liquidity of $1.5 billion. Total Pro-Rata Share Leverage Ratios 9/30/2
Slide 21: Ample Liquidity Available
21 NOVEMBER 2020 INVESTOR PRESENTATION BALANCE SHEET AND LIQUIDITY STRENGTH ‑Ample Liquidity Available Sources of Capital and Near-Term Commitments (1) ‑‑Total Liquidity ‑‑Undrawn Revolver $1.2B Cash On Hand $281M Net Liquidity $800M $102M In-Process Re/Dev Committed Capital $373M 2022 Debt Maturiti
Slide 22: Sustained Dividend Growth
22 NOVEMBER 2020 INVESTOR PRESENTATION BALANCE SHEET AND LIQUIDITY STRENGTH Sustained Dividend Growth Regency has consistently grown dividends per share since 2014 and has maintained payment of its dividend throughout the COVID-19 pandemic. 4% CAGR $1.88 2014 $1.94 2015 $2.00 2016 $2.10 2017 $2.22 2
Slide 23: Best-in-Class Operating Platform
23 NOVEMBER 2020 INVESTOR PRESENTATION 4 Best-in-Class Operating Platform Midtown East | Raleigh, NC
Slide 24: Operational Best Practices
24 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Operational Best Practices Pick-Up and Go Zones - In response to the rapid growth in online ordering and curbside pick-up, and as a resource and benefit for our tenants, Regency recently began installing designated curbside pick
Slide 25: Experienced and Deep Management Team
25 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Experienced and Deep Management Team Lisa Palmer President and CEO Years of Experience Regency 24 | Industry 24 Mike Mas Executive Vice President, Chief Financial Officer Years of Experience Regency 17 | Industry 17 Mac Chandler
Slide 26: Regency's Approach to Corporate Responsibility
26 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Regency’s Approach to Corporate Responsibility Regency Centers Values Business Strategy Corporate Responsibility ENVIRONMENTAL STEWARDSHIP OUR PEOPLE OUR COMMUNITIES ETHICS AND GOVERNANCE Regency’s values, including the critical
Slide 27: Our People & Our Communities
27 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Our People & Our Communities Our people are our most fundamental asset We hire the best talent in our local and regional markets We focus on improving and supporting our communities Inherent in Regency’s culture is a great passi
Slide 28: Ethics and Governance
28 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Ethics and Governance Stalwart adherence to ethical behavior and oversight Consistently receive the highest corporate governance score from shareholder advisory firm Institutional Shareholder Services (ISS) Our Board maintains a
Slide 29: Environmental Stewardship
29 NOVEMBER 2020 INVESTOR PRESENTATION BEST-IN-CLASS OPERATING PLATFORM Environmental Stewardship 1st U.S. REIT and 2nd U.S. corporation to issue a Green Bond Focus on sustainable building practices and climate resilience Exceeding goals to reduce GHG emissions and energy use, and increase waste div
Slide 30: Appendix: COVID-19 Operating Data
30 NOVEMBER 2020 INVESTOR PRESENTATION Mellody Farm | Chicago, IL APPENDIX COVID-19 Operating Data
Slide 31: Tenant Operating Status
31 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Tenant Operating Status As of October 31, 2020 Status of Tenant Operations (1) % of Pro-Rata ABR (2) Tenants Open by Category % of Pro-Rata ABR. (1) Open status includes tenants operating with capacity restrictions (2) ABR is defi
Slide 32: Regency Portfolio Foot Traffic
32 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Regency Portfolio Foot Traffic MONTHLY FOOT TRAFFIC MONTHLY CHANGE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 85% of Portfolio Foot Traffic Has Returned YoY Source: Placer.ai 57.5M JAN 56.3M FEB 45.4M MAR 25.5M APR 35.4M MAY 42.6M JU
Slide 33: Q3 Base Rent Collections
33 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Q3 Base Rent Collections As of October 31, 2020 Q3 Base Rent Collections % of Pro-Rata ABR. Q3 Base Rent Collections by Category % of Pro-Rata ABR. 3% Deferred 11% Uncollected 86% Collected Grocery/Drugstore Restaurant - Casual/Fi
Slide 34: October Base Rent Collections
34 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA October Base Rent Collections As of October 31, 2020 October Base Rent Collections % of Pro-Rata ABR. October Base Rent Collections by Category % of Pro-Rata ABR. 12% Uncollected 1% Deferred 87% Collected Grocery/Drugstore Restaur
Slide 35: Base Rent Collection Trajectory
35 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Base Rent Collection Trajectory As of October 31, 2020 Base Rent Collections by Period 14% 9% 77% Q2 11% 3% 86% Q3 12% 1% 87% October COLLECTED DEFERRED UNCOLLECTED Base Rent Collected Tenant Category % of ABR (1) % Open Q2 Q3 Oct
Slide 36: Progression of Monthly Rent Collections
36 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Progression of Monthly Rent Collections 30% 40% 50% 60% 70% 80% 90% 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER Percentage shown below represents the cash bas
Slide 37: Executed Deferral Agreements
37 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Executed Deferral Agreements As of October 31, 2020 Deferred Rent – Period Billed ($30.6M) 2Q'2020 75% 3Q'2020 21% 4Q'2020 3% 2021 1% Deferred Rent – Payment Timing ($30.6M) 2Q'2021 22% 3Q'2021 16% 2020 17% 4Q'2021 13% 2022+ 5% 1Q
Slide 38: National/Regional vs. Local Tenant Collection Status
38 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA National/Regional vs. Local Tenant Collection Status As of October 31, 2020 Total Portfolio Composition (1) % of Pro-Rata ABR as of 9/30/2020 Composition of Deferred Rent ($30.6M) National & Regional Tenants 78% Local Tenants 22%
Slide 39: Anchor vs. Shop Tenant Collection Status
39 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Anchor vs. Shop Tenant Collection Status As of October 31, 2020 Total Portfolio Composition (1) % of Pro-Rata ABR as of 9/30/2020 Shop Tenants 55% Anchor Tenants 45% Composition of Deferred Rent ($30.6M) Anchor Tenants 40% Shop Te
Slide 40: Regional Collection Status
40 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Regional Collection Status As of October 31, 2020 Southeast 30% Pacific Coast 33% Central 16% Northeast/ Mid-Atlantic 21% Total Portfolio Composition % of Pro-Rata ABR as of 9/30/2020 Q3 Base Rent Collections 0% 20% 40% 60% 80% 10
Slide 41: Progression of Total Billings, Deferrals and Other Revenue
41 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Progression of Total Billings, Deferrals and Other Revenue From 1Q'20 to 3Q'20 $300.9 Billable Revenues - Q1 2020 ‑‑ $(3.9) Other Revenues Adjustment (1) $(0.8) Dispositions $1.3 Contractual rent steps $(6.4) occupancy/BK Impact (
Slide 42: Q3 2020 Supplemental COVID Disclosure
42 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Q3 2020 Supplemental COVID Disclosure For the Three Months Ended September 30, 2020 Composition of Lease Income Total Pro-Rata Base Rent $ 215,859 Recoveries from Tenants 68,515 Percentage Rent, Termination Fees, and Other Lease I
Slide 43: Q3 2020 Supplemental COVID Disclosure (Nine Months)
43 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Q3 2020 Supplemental COVID Disclosure For the Six Months Ended September 30, 2020 Composition of Lease Income Total Pro-Rata Base Rent $ 434,079 Recoveries from Tenants 138,203 Percentage Rent, Termination Fees, and Other Lease In
Slide 44: Glossary of Terms
44 NOVEMBER 2020 INVESTOR PRESENTATION APPENDIX: COVID OPERATING DATA Glossary of Terms Adjusted Funds From Operations (AFFO): An additional performance measure used by Regency that reflects cash available to fund the Company’s business needs and distribution to shareholders. AFFO is calculated by a
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