Regency Centers Corporation · NASDAQ:REG
Regency Centers — Investor Day (January 2018)
127 slides from Regency Centers's investor day presentation, Jan 11, 2018
Slide 1: 2018 Investor Day
2018 INVESTOR DAY ada Qi) _ - Ba | elgg a Swi! es patel
Slide 2: Unequaled
UNEQUALED Regency’s unequaled combination of key strategic advantages and our thoughtful approach to the business will continue to clearly distinguish the company and grow shareholder value. Regency Centers | UNEQUALED 1–2
Slide 3: Unequaled Combination of Strategic Advantages and Achievements
Unequaled Unequaled Combination of Strategic Combination of Achievements Objectives Strategic Advantages Regency Centers | UNEQUALED 1–3
Slide 4: Unequaled Combination of Achievements
Unequaled UnequaledUnequaled Combination of Achievements Regency Centers | UNEQUALED 1–4
Slide 5: Operating Portfolio Performed at High Level
OPERATING PORTFOLIO PERFORMING UNEQUALED COMBINATION OF ACHIEVEMENTS Operating Portfolio Performed at High Level Operating portfolio: 96% leasedi Side shops: 92.5% leasedi Same property NOI growth 3.6% range Capital recycling enhancing quality and NOI growth profile i. Percent leased as of 9/30/17,
Slide 6: Created Value from Developments and Redevelopments
VALUE-ADD DEVELOPMENTS & REDEVELOPMENTS OPERATING PORTFOLIO PERFORMING UNEQUALED COMBINATION OF ACHIEVEMENTS Created Value from Well-Conceived Developments and Redevelopments $133M projects completed and $544M in process at a blended 7.4% yieldi Outstanding additions to Regency’s portfolio i. Repres
Slide 7: Fortified Already Strong Balance Sheet
UNEQUALED COMBINATION OF ACHIEVEMENTS Fortified Already Strong FORTIFIED Balance Sheet VALUE-ADD ALREADY Issued $1B of bonds, including 30-year DEVELOPMENTS & STRONG REDEVELOPMENTS BALANCE Added to S&P 500 Regency Centers | UNEQUALED 1–7
Slide 8: Deep and Engaged Team; Improved Operating Efficiencies
OPERATING SHEET PORTFOLIO UNEQUALED COMBINATION OF ACHIEVEMENTS DEEP AND ENGAGED Deep and Engaged Team and TEAM FORTIFIED Improved Operating Efficiencies VALUE-ADD ALREADY Reduced G&A: revenues under DEVELOPMENTS & STRONG management to under 5% from 6.5% REDEVELOPMENTS BALANCE OPERATING SHEET PORTFO
Slide 9: Continued Progress on ESG
PERFORMINGCONTINUED UNEQUALED COMBINATION PROGRESS ON ESG OF ACHIEVEMENTS DEEP AND ENGAGED Continued Progress on ESG TEAM FORTIFIED Many practices recognized as VALUE-ADD ALREADY better-in-class DEVELOPMENTS & STRONG REDEVELOPMENTS BALANCE First US REIT to issue Green Bonds OPERATING SHEET ISS gover
Slide 10: Completed Merger with EQY and Successful Integration
CONTINUED COMPLETED UNEQUALED COMBINATION PROGRESS MERGER ON ESG WITH EQY OF ACHIEVEMENTS DEEP AND ENGAGED Completed Merger with EQY TEAM FORTIFIED and Successful Integration VALUE-ADD ALREADY Enhanced Regency’s high quality DEVELOPMENTS & STRONG portfolio and target market presence REDEVELOPMENTS B
Slide 11: Superior Shareholder Returns
UNEQUALED COMBINATION OF ACHIEVEMENTS CONTINUED COMPLETED UNEQUALED COMBINATION PROGRESS MERGER ON ESG WITH EQY OF ACHIEVEMENTS DEEP AND ENGAGED TEAM FORTIFIED VALUE-ADD ALREADY SUPERIOR DEVELOPMENTS & STRONG REDEVELOPMENTS BALANCE SHAREHOLDER OPERATING SHEET RETURNS PORTFOLIO OVER 1, 3, AND 5 YEAR
Slide 12: Strategic Objectives
Strategic Objectives Regency Centers | UNEQUALED 1–12
Slide 13: Sustain 3%+ SP NOI Growth
3%+ SP NOI Growth Annually Growing Shareholder STRATEGIC OBJECTIVES Value Sustain 3%+ SP NOI growth that ranks at the top of the shopping center sector from a high quality portfolio. Regency Centers | UNEQUALED 1–13
Slide 14: $300M Development and Redevelopment Starts
3%+ SP NOI Growth Annually $300M Development Growing and Shareholder Redevelopment Value Starts Annually STRATEGIC OBJECTIVES $300M development and redevelopment starts of high quality shopping centers to grow NAV and fortify NOI. Regency Centers | UNEQUALED 1–14
Slide 15: Best-in-Class Business Practices and Systems
3%+ SP NOI Growth Annually Best-In-Class $300M Business Development Practices Growing and and Systems Shareholder Redevelopment Value Starts Annually STRATEGIC OBJECTIVES Having operating systems and practices, including ESG practices, widely recognized as best-in-class. Regency Centers | UNEQUALED
Slide 16: Target Debt to EBITDA of 5.0x
3%+ SP NOI Growth Annually Best-In-Class $300M Business Development Practices Growing and and Systems Shareholder Redevelopment Value Starts Annually STRATEGIC OBJECTIVES Maintain a conservative balance sheet to provide favorable access to capital by targeting Debt to Target Debt EBITDA of 5.0x. to
Slide 17: Employee Engagement and G&A Target
3%+ SP NOI Growth Annually Best-In-Class $300M Business Development Practices Growing and and Systems Shareholder Redevelopment Value Starts Annually STRATEGIC OBJECTIVES Achieve high level employee engagement and G&A to revenues under management Target Debt High Level Employee of less than 5%. to E
Slide 18: Earnings, NAV and Dividend Growth of 5%-7%
3%+ SP NOI Growth Annually Best-In-Class $300M Business Development Practices Growing and and Systems Shareholder Redevelopment Value Starts Annually STRATEGIC OBJECTIVES Earnings, NAV and Dividend Growth of 5%–7% and Shareholder Return at or Target Debt High Level Employee Near the Top of the Secto
Slide 19: Staying Relevant
STAYING RELEVANT In the ever-changing, challenging, and competitive environment for retail real estate, our commitment to striving to be best-in-class; to staying relevant; and to continuously improve is a critical component of our business strategy. Regency will be even better positioned to benefit
Slide 20: Unequaled Combination of Strategic Advantages
Unequaled Combination of Strategic Advantages Regency Centers | UNEQUALED 1–20
Slide 21: Regency's Point of View
Regency’s Point of View Amazon’s Successful Purchase of Bricks-and-Operators Whole Foods Mortar Will Want Reinforces Value Presence Well Located, of Quality Stores Remains Designed, and in Dense and a Critical Merchandised Affluent Component Centers Markets Regency Centers | UNEQUALED 1–21
Slide 22: Key Strategic Advantages
Strong Values & Special Culture Preeminent National Portfolio Exceptional Operating Expertise & Systems UNEQUALED Superior Tenant & Merchandising Mix Disciplined Financial Proven Development & Management Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQU
Slide 23: Preeminent National Portfolio
Preeminent National Portfolio i 427 properties totaling 59M SF ii High quality portfolio: Average 3-Mile Population 140,000 Average 3-Mile Income $111,000 Educational Attainment 46% ABR of $21 PSF, among the highest in the sector i i. As of 9/30/2017 ii. Synergos Technologies, Inc popstats within 3-
Slide 24: Superior Tenant & Merchandising Mix
Superior Tenant & Merchandising Mix High daily traffic with convenience and necessity focus Portfolio strength and tenant quality demonstrated by resilience to store closures and leading SP NOI performance Regency Centers | UNEQUALED 1–24
Slide 25: Exceptional Operating Expertise & Systems
Exceptional Operating Expertise & Systems National platform creates unequaled boots-on-the-ground and local expertise advantages Intense asset management is the foundation to Regency’s ability to achieve SP NOI growth at or near the top of the sector Regency Centers | UNEQUALED 1–25
Slide 26: Proven Development & Redevelopment Capabilities
Proven Development Redevelopment capabilities Regency’s in-process projects, pipeline, and key tenant and local relationships create value through the development and redevelopment of outstanding shopping centers Regency Centers | UNEQUALED 1–26
Slide 27: Disciplined Financial Management
Disciplined Financial Management A pristine and conservative balance sheet Regency’s self-funding capital allocation strategy cost-effectively funds new investments, while preserving balance sheet strength and enhancing the quality of our portfolio Regency Centers | UNEQUALED 1–27
Slide 28: Strong Values & Special Culture
Strong Values & Special Culture Our values and culture translate into growing shareholder value The combination of the depth, talent, engagement, and special culture of Regency’s team is truly unequaled Regency Centers | UNEQUALED 1–28
Slide 29: Combination of Key Strategic Advantages
Strong Values & Special Culture Preeminent National Portfolio Exceptional Operating Expertise & Systems UNEQUALED Superior Tenant & Merchandising Mix Disciplined Financial Proven Development & Management Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQU
Slide 30: Preeminent National Portfolio
Preeminent National Portfolio New York/Connecticut Chicago Philadelphia Cincinnati Washington, DC ASSET TARGET Raleigh/Charlotte MARKETS tlanta QUALITY DNA Jacksonville Tampa West Palm Beach Miami Regency is continually evaluating investable markets and the quality of the assets that we own Regency
Slide 31: Target Markets
New York/Connecticut Regency has refreshed and Chicago Philadelphia enhanced how we identify and Cincinnati target investable markets Washington, DC TARGET Raleigh/Charlotte Target markets demonstrate MARKETS tlanta characteristics highly correlated to purchasing power growth Jacksonville Positions
Slide 32: Market Characteristics
Market Characteristics Higher Purchasing Power Growth Income Population Market Barriers to Spending Growth Growth Viability Supply Growth Educational Forecast Location Difficulty to Age Cohorts Attainment Quality Score Develop Gating Consideration: Market Depth Regency Centers | PREEMINENT NATIONAL
Slide 33: Target Market Focus
Target Market Focus Seattle/Portland 3.4% Boston 2.7% New York Metro Chicago 11.3% Bay Area Denver/Boulder 15.7% 2.1% 2.4% DC/Baltimore/ Richmond LA/Orange 7.6% County Raleigh/Charlotte/ 8.6% Charleston Atlanta 2.5% San Diego 4.4% 5.3% Dallas/ Houston/Austin North Florida 7.2% 3.0% Southwest Florida
Slide 34: DC Market Demonstrates Target Characteristics
DC is one such market that demonstrates strength in these characteristics: n Income Growth n Population Growth n Market Viability n Barriers to Supply n Spending Growth DC Market 40 PROPERTIES Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–5
Slide 35: Kings Park Shopping Center
KINGS PARK SHOPPING CENTER Washington, DC Market Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–6
Slide 36: Washington DC Market
Washington DC Market Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–7
Slide 37: Preeminent National Portfolio: Asset Quality DNA
Preeminent National Portfolio New York/Connecticut Chicago Philadelphia Cincinnati Washington, DC ASSET TARGET Raleigh/Charlotte MARKETS tlanta QUALITY DNA Jacksonville Tampa West Palm Beach Miami Regency is continually evaluating investable markets and the quality of the assets that we own Regency
Slide 38: Asset Quality DNA
Higher quality shopping centers have inherent characteristics that position the center for long-ASSET term competitive advantages and QUALITY superior NOI growth DNA Using a proprietary approach, Regency synthesizes asset quality characteristics of a successful shopping center Regency Centers | PREE
Slide 39: Asset Quality DNA Characteristics
Asset Quality DNA Characteristics Trade Area Shopping DNA Center DNA Fosters buying power Relative competitive and spending position and Dominant Density growth Relative Competitive draw Anchor + Supply Position Merch. Mix Population Retail GLA Relative Position Top Market + Daytime Buying per HH +
Slide 40: Portfolio Allocation by Asset Quality
Premier Plus 21% Asset Quality DNA:i 95% of our Drives capital allocation and shopping centers Premier return parameters are positioned 54% to thrive Influences redevelopment activity and property investment Quality Core 20% EXCEPTIONAL STRONG Non-Core 5% ABOVE AVERAGE i. Allocation as a percentage
Slide 41: Premier Plus: Roosevelt Square DNA
Premier Plus Roosevelt Square DNA Premier i Trade Area Characteristics 3-mile i (REG Avg.) Average HHI $117,000 $111,000 Avg. Home Value $800,000 $500,000 Higher Education Attainment 69% 46% Population Density 238,000 140,000 Grocer GLA per Capita 4 SF 4 SF i. Synergos Technologies, Inc popstats wit
Slide 42: Asset DNA: Property Tours
Asset DNA: Property Tours The Collection at Harvard Square The Gallery at Westbury Plaza Gateway Shopping Center Westwood Complex Seal Beach Center McAlpin Square Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–13
Slide 43: Non-Core: McAlpin Square DNA
Non-Core McAlpin Square McAlpin Square DNA (SOLD) Premier i Trade Area Characteristics 3-mile i (REG Avg.) Average HHI $57,000 $111,000 Avg. Home Value $257,000 $500,000 Higher Education Attainment 30% 46% Population Density 79,000 140,000 Grocer GLA per Capita 5 SF 4 SF Secondary market location in
Slide 44: Quality Core: Seal Beach Center DNA
Quality Core Seal Beach Center Seal Beach Center DNA Premier i Trade Area Characteristics 3-mile i (REG Avg.) Average HHI $119,000 $111,000 Avg. Home Value $1,000,000 $500,000 Higher Education Attainment 55% 46% Population Density 67,000 140,000 Grocer GLA per Capita 2 SF 4 SF Solid center located i
Slide 45: Gateway Shopping Center
GATEWAY SHOPPING CENTER Philadelphia Market Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–16
Slide 46: The Gallery at Westbury Plaza
THE GALLERY AT WESTBURY PLAZA New York, NY Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–17
Slide 47: Property Tours
Premier Plus The Collection at Harvard Square The Gallery at Westbury Plaza eway Shopping Center Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–18
Slide 48: Premier Plus: Harvard Square DNA
Premier Plus The Collection at Harvard Square Harvard Square DNA Premier i Trade Area Characteristics 3-mile i (REG Avg.) Average HHI $114,000 $111,000 Avg. Home Value $751,000 $500,000 Higher Education Attainment 68% 46% Population Density 468,000 140,000 Grocer GLA per Capita 3 SF 4 SF Extremely d
Slide 49: Property Tours
Premier Plus Harvard Square The Gallery at Westbury Plaza Gateway Shopping Center Westwood Complex Regency Centers | PREEMINENT NATIONAL PORTFOLIO 2–20
Slide 50: Premier Plus: Westwood Complex DNA
Premier Plus Westwood Complex DNA Premieri M Trade Area Characteristics 3-milei (REG Avg.) metro Average HHI $224,000 $111,000 Avg. Home Value $1,042,000 $500,000 Higher Education Attainment 85% 46% Westwood Complex W Population Density 147,000 140,000 I S Grocer GLA per Capita 3 SF 4 SF C O N Highl
Slide 51: Combination of Key Strategic Advantages
Strong Values & Special Culture Preeminent National Portfolio Exceptional Operating Expertise & Systems UNEQUALED Superior Tenant & Merchandising Mix Disciplined Financial Proven Development & Management Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQU
Slide 52: Superior Tenant & Merchandising Mix
Superior Tenant & Merchandising Mix Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–1
Slide 53: Merchandising Mix Leads to Resilience
Superior Strength Leads Merchandising to Resilience Mix Regency’s superior merchandising Superior Tenant mix positions shopping centers and & Merchandising Mix retailers for success Superior Portfolio Performance Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–2
Slide 54: Superior Merchandising Mix
Superior Merchandising Mix A necessity, service, convenience, and value focus is increasingly critical in today’s retail landscape. 40 30% 28% 30 24% i 18% ABR OF 20 % 10 0 Service Grocers & Drugstores Restaurants Other Superior Merchandising Mix i. % of ABR as of 9/30/2017 Regency Centers | SUPERIO
Slide 55: Service Tenants
SERVICE 30% 7% Professional Services 5% Medical Service While no retail category is Internet resilient, services that occupy 30% of Service Regency’s tenant mix are TOTAL 10% 8% more insulated ABRi Health, Other Services Fitness Beauty & Superior Merchandising Mix i. % of ABR as of 9/30/2017 Regency
Slide 56: Grocers & Drugstores
GROCERS & DRUGSTORES 20% Grocers 24% $650/sf Sales | 2% Occupancy Costii Necessity-based and convenience-oriented retailers with a physical Grocers & presence close to the Drugstores consumer is more TOTAL ABRi important than ever Drugstores 4% Superior Merchandising Mix i. % of ABR as of 9/30/2017
Slide 57: Evolution of Grocery Retail
GROCERS Evolution of Grocery Retail is Not Newi 1992 Grocery Landscape Today’s Grocery Landscape Leading Walmart Market Gains 20% Share Market Share New Entrants FAILED GROCERS Superior The best operators with irreplaceable platforms have faced challenges in the past, evolved, and continue to thrive
Slide 58: Grocer Investments and Comments
GROCERS Click & The grocers in Regency’s Delivery Comments portfolio are making Collect significant investments Platform of over 3,000 stores. Redefining the customer experience through the increase in digital and ecommerce in technology and offerings, lower prices for customers, and investing in th
Slide 59: Restaurants
RESTAURANTS National Regional 18% Secular shifts in the what, where, and how we eat have been occurring over the TOTAL past 20 years – restaurant spending is up 12% across all ages. ii ABRi Restaurants are an important component of our centers and drive significant foot traffic. Regency’s exposure t
Slide 60: Westlake Plaza and Center: Restaurants
Westlake Plaza and Center RESTAURANTS Regency is capitalizing on these secular shifts by bringing unique dining nodes to our shopping centers TOWNSGATE RD 35 36 34 32 33 38 D V 31 10 10A B 41 44 30 12C 12B 12A 11 E K 29A 29D A 29B L 27 T S 28 29C E 26 W 51 52 53 24 3 23 22 4 6A 7 8 21 43 20 1 9A 9B
Slide 61: Best-in-Class Retailers
OTHER Best-In-Class Retailers Amongst these categories, thriving retailers are expanding their footprint and Regency is increasing their presence within our portfolio 10 28% 9 8 7% 7 6% 6% ABR 6 5% OF 5 % 4 3 2% 2% TOTAL 2 1 ABRi 0 O-Price/Beauty Home Improvement/ Sports/Oce/ Apparel/Shoes Pet Tradi
Slide 62: Strength Leads to Resilience
Superior Strength Leads Merchandising to Resilience Mix A focus on owning premier shopping Superior Tenant centers occupied by best-in-class & Merchandising Mix tenants insulates Regency Superior Portfolio Performance Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–11
Slide 63: Exposure to At-Risk Tenants
Exposure to At-Risk Tenantsi 41% 11% A focus on owning higher 12% quality shopping centers occupied by best-in-class 9% tenants insulates Regency 10% 8% Regency’s exposure to 8% 7% 7% at-risk retailers is minimal even in this heightened store closure environment 6% 4% 4% 2% Strength Leads 0% REG FRT
Slide 64: Anchor Occupancy
Anchor Occupancyi Regency’s anchor occupancy meaningfully above the peer average Regency’s resilience 100% increasingly apparent as store closures have accelerated 98.9% % % % % 98.9 99% 98.8 98.8 98.8 98.7% 98.7% 98.5% Experienced less than 98.4% 98.4% 98.3% 30 store closures from 98.2% 98.2% 98.2%
Slide 65: High Quality Merchandising Mix
Grand Ridge Plaza High Quality Merchandising Mix Persimmon Place Village at La Floresta Prestonbrook Crossing Indian Springs Center Sheridan Plaza Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–14
Slide 66: Indian Springs Center
Indian Springs Center Kuykendahl Rd & Woodlands Pkwy, The Woodlands, TX 77382 Westwood Village Alden Bridge Village Center Indian Springs Center Near a main intersection in best-selling master-planned Cochran’s Crossing Sterling Ridge Village Center community The Woodlands, with 51,900+ workers near
Slide 67: Indian Springs Center
Indian Springs Center Kuykendahl Rd & Woodlands Pkwy, The Woodlands, TX 77382 Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–16
Slide 68: Prestonbrook Crossing
Prestonbrook Crossing 7410-7650 Preston Road, Frisco, TX 75034 Prestonbrook Crossing Excellent location on North Dallas’ main road which carries 55,000+ vehicles per day. 289 Center Size: 91,537 Within 3 Miles Population 80,682 Avg. Household Income 125,431 Legacy Center Avg. Home Value 390,307 Rege
Slide 69: Prestonbrook Crossing
Prestonbrook Crossing 7410-7650 Preston Road, Frisco, TX 75034 Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–18
Slide 70: Sheridan Plaza
Sheridan Plaza 4800 Sheridan Street, Hollywood, FL 33021 Sheridan Plaza A major community center with a strong retailer lineup at the corner of Sheridan Street and North 56th. Center Size: 506,200 Young Circle Shopping Center Crossroads Square Within 3 Miles Population 145,665 Avg. Household Income
Slide 71: Sheridan Plaza
Sheridan Plaza 4800 Sheridan Street, Hollywood, FL 33021 Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–20
Slide 72: Grand Ridge Plaza, Seattle Market
GRAND RIDGE PLAZA Seattle Market Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–21
Slide 73: Persimmon Place, Bay Area Market
PERSIMMON PLACE Bay Area Market Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–22
Slide 74: Village at La Floresta, Los Angeles Market
LA floresta V I L L A G E A T Los Angeles Market Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–23
Slide 75: Superior Portfolio Performance
Superior Strength Leads Merchandising to Resilience Mix The strength of Regency’s tenant Superior Tenant quality and merchandising mix & Merchandising is a key contributor to sector- Mix leading performance Superior Portfolio Performance Regency Centers | SUPERIOR TENANT & MERCHANDISING MIX 3–24
Slide 76: SP NOI Growth By Year
Superior Portfolio Performance SP NOI Growth By Year Six years of superior performance 5% 4.4% 4.0% 4.0% 4.0% 3.6% 4% 3.5% The strength of 2.25%–3.25% Regency’s tenant quality 3% and merchandising mix is a key contributor 2% to sector-leading performance 1% 0% 2012 2013 2014 2015 2016 2017 E i 2018
Slide 77: Combination of Key Strategic Advantages
Strong Values & Special Culture Preeminent National Portfolio Exceptional Operating Expertise & Systems UNEQUALED Superior Tenant & Merchandising Mix Disciplined Financial Proven Development & Management Redevelopment Capabilities Regency Centers The Combination of These Key Strategic Advantages Mak
Slide 78: Exceptional Operating Expertise & Systems
Exceptional Operating Expertise & Systems Regency Centers | EXCEPTIONAL OPERATING EXPERTISE & SYSTEMS 4–1
Slide 79: Roadmap to Same-Property NOI Growth
LEASE MARK- RENT PAYING TO-MARKET OCCUPANCY CONTRACTUAL VALUE CREATION RENT STEPS OPPORTUNITIES ROADMAP TO SAME-PROPERTY LOCAL MARKET BEST-IN-CLASS EXPERTISE NOI GROWTH OPERATING PRACTICES Regency’s strategic objective is to achieve 3%+ same property NOI growth Regency Centers | EXCEPTIONAL OPERATIN
Slide 80: Local Market Expertise
Local Market Expertise National Platform with Local Market Empowerment Seattle (3) Portland (9) New York/Connecticut (7) Philadelphia (6) Chicago (15) Cincinnati (5) San Francisco (17) Washington, DC (25) Serramonte (9) Denver (9) Market Common (3) Raleigh/Charlotte (10) Los Angeles (25) San Diego (
Slide 81: Lease Mark-to-Market and Rent Paying Occupancy
Mark-to-market rent spreads opportunity with 40 anchor lease expirations coming due over next 5 years Anchor lease mark-to-market of 40%+ supports goal of 10% lease spreads 1% rent spread = 12 bps same property NOI growth High-quality real estate drives space demand Converting 20 bps of physical occ
Slide 82: Best-in-Class Operating Practices
BEST-IN-CLASS OPERATING PRACTICES Regency’s local experts develop strategic site plans for NOI growth objectives Created and continuously updated for Regency’s 427 shopping centers Identifies shopping center strengths, weaknesses, opportunities, and potential threats Allows our team to develop a pla
Slide 83: Aventura Square and Gateway Plaza at Aventura
Aventura Square and Gateway Plaza at Aventura Biscayne Blvd NE 193RD St | Aventura, FL Center Size: 143,932 SPACE TENANT SF 61 AVAILABLE 1,500 10 JEWELRY EXCHANGE VENTURE, LLLP 16,500 20 OLD NAVY CLOTHING CO #5888 15,000 30 BED BATH & BEYOND, INC #197 45,000 40 DSW WAREHOUSE 21,450 50 AVENTURA ANIMA
Slide 84: Aventura Strategic Site Plan
Aventura Square and Gateway Plaza at Aventura Biscayne Blvd NE 193RD St | Aventura, FL PREMIER Mile Radius 187,451$74,48181,439110,000+ Population $Average Household IncomeEstimated Households 2018Vehicles per Day Signifi cantly below market rents Signifi cantly below market rent and underutilized p
Slide 85: Village Center Strategic Site Plan
Village Center QUALITY CORE N Dale Mabry Hwy | Tampa, FL Mile Radius 99,483 $ $74,890 41,500 39,500+ Population Average Household Income Estimated Households 2018 Vehicles per Day Tampa Tap Room – Weak Sales Lease to Fitness or Medical Users 18 21 26 19 17 29 R 15 D 16A 16B 30 STRATEGIC SITE E 31A S
Slide 86: Roscoe Square, Chicago Market
Regency Centers | EXCEPTIONAL OPERATING EXPERTISE & SYSTEMS 4–9 ROSCOE SQUARE CHICAGO MARKET 86
Slide 87: El Camino Shopping Center, Los Angeles Market
EL CAMINO SHOPPING CENTER LOS ANGELESS MARKET Regency Centers | EXCEPTIONAL OPERATING EXPERTISE & SYSTEMS 4–10 87
Slide 88: Combination of Key Strategic Advantages
UNEQUALED Preeminent National Portfolio Superior Tenant & Merchandising Mix Exceptional Operating Expertise & Systems Proven Development & Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQUALED Disciplined Financial Management Strong Values & Special Cul
Slide 89: Proven Development & Redevelopment Capabilities
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–1 Proven Development & Redevelopment Capabilities DISCIPLINED STRATEGY NEW OPPORTUNITIES 89
Slide 90: Historical Development and Redevelopment Starts
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–2 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2012 2013 2014 2015 2016 2017 $170 $100 $110 $150 $60 $110 $120 $200 $240 $120 $220 $230 59% 57% 63% 51% 50% 52% Historical Development and Redevelopment Starts 7.8% Average Return On
Slide 91: Disciplined Strategy and Value Creation
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–3 Premier Shopping Centers with Long-Term Growth Potential Focus on Dense Infill and Affluent Trade Areas with Leading Grocers Distinctive Design and Key Attributes of Retail Centers Sourced by Local Market Expertise and Relationshi
Slide 92: Chimney Rock, New York/New Jersey Market
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–4 CHIMNEY ROCK NEW YORK/NEW JERSEY MARKET 92
Slide 93: Aventura Shopping Center, Miami Market
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–5 AVENTURA SHOPPING CENTER MIAMI MARKET 93
Slide 94: The Field at Commonwealth, Washington DC Market
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–6 THE FIELD AT COMMON WEALTH WASHINGTON DC MARKET 94
Slide 95: New Opportunities
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–7 Proven Development & Redevelopment Capabilities DISCIPLINED STRATEGY NEW OPPORTUNITIES 95
Slide 96: Value Creation Opportunities
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–8 Value Creation Opportunities Future Investment Over 5+ Years: up to $1.5B Estimated Value Creation of $600M Ground-Up + + Developments Shopping Center Repositioning Large-Scale Densification/ Mixed Use i. Value Creation is the est
Slide 97: Future Redevelopments Offering Significant Value Creation
Future Redevelopments Offering Significant Value Creation Applewood Village GreenwoodPleasanton Plaza Bloomingdale Square The Collection atPotrero Center Boca Village Square Harvard SquareShoppes of Oakbrook Costa Verde Center Market Common ClarendonTown & Country Fairfax Pablo PlazaWestwood Complex
Slide 98: Town & Country
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–10 Town&Country 98
Slide 99: Town & Country Location
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–11 PURPLE LINE SUBWAY EXTENSION (2023) W 3RD ST S CRESCENT HEIGHTS BLVD GARDNER ST HAUSER BLVD S LA BREA AVE FAIRFAX AVE WHOLE FOODS MARKET HIGH PERFORMING LOCATION CVS – #6 STORE IN CHAIN 97 WALKABILITY SCORE LUXURY APARTMENTS $4.0
Slide 100: Town & Country Site Plan
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–12 AVAILABLE LEASED NAP (NOT A PART) THIRD ST OGDEN DR FAIRFAX AVE 6360 6310-6320 370 S. Fairfax 6350 300 Fairfax 6332 19A 6330 6328 6324 6322 Subtenant (K-Mart Shoes) Subtenant (Little Caesars) 6330 1 ⁄ 2 2ND LEVEL 36,000 SF GROUND
Slide 101: A Redevelopment 30 Years in the Making
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–13 A Redevelopment 30 Years in the Making 101
Slide 102: Retail-Only Scenario
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–14 Retail-Only Scenario 102
Slide 103: Mixed-Use Scenario
Regency Centers | PROVEN DEVELOPMENT & REDEVELOPMENT CAPABILITIES 5–15 Mixed-Use Scenario 103
Slide 104: Combination of Key Strategic Advantages
UNEQUALED Preeminent National Portfolio Superior Tenant & Merchandising Mix Exceptional Operating Expertise & Systems Proven Development & Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQUALED Disciplined Financial Management Strong Values & Special Cul
Slide 105: Disciplined Financial Management
Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–1 Disciplined Financial Management FORTRESS BALANCE SHEET FUNDING STRATEGY SUSTAINED EARNINGS GROWTH 105
Slide 106: Net Debt to EBITDA vs Peers
Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–2 5.4x 0x 1x 2x 3x 4x 5x 6x 7x REG RPAI WRI FRT DDR BRX KIM 5.4x 5.6x 5.8x 6.5x 6.9x 6.9x Net Debt To EBITDA Sector-leading balance sheet provides flexibility to be opportunistic Target: 5x S&P Rating: BBB+ Moody’s Rating: Baa1 i. Source: Green St
Slide 107: Debt Maturity Profile
106 Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–3 $4 $155 $52 $62 $586 $396 $653 $135 $379 $299 $332 $586 $425 $0 $100 $200 $300 $400 $500 $600 $700 $800 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028-2046 2047 UNSECURED DEBT CONSOLIDATED DEBT—SECURED UNCONSOLIDATED DEBT—SECURE
Slide 108: Funding Strategy
Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–4 Disciplined Financial Management FORTRESS BALANCE SHEET FUNDING STRATEGY SUSTAINED EARNINGS GROWTH 108
Slide 109: Disciplined Funding Strategy
Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–5 Increased cashflow is the foundation of funding plan. Sale of low-growth assets resulting in enhanced overall portfolio quality. DISCIPLINED FUNDING STRATEGY PROPERTY SALES 1%-2% of total Assets Annually FREE CASH FLOW ~$160M Annually DEVELOPMEN
Slide 110: Sustained Earnings Growth
Regency Centers | DISCIPLINED FINANCIAL MANAGEMENT 6–6 Disciplined Financial Management FORTRESS BALANCE SHEET FUNDING STRATEGY SUSTAINED EARNINGS GROWTH 110
Slide 111: Combination of Key Strategic Advantages
UNEQUALED Preeminent National Portfolio Superior Tenant & Merchandising Mix Exceptional Operating Expertise & Systems Proven Development & Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQUALED Disciplined Financial Management Strong Values & Special Cul
Slide 112: Strong Values & Special Culture
Regency Centers | STRONG VALUES & SPECIAL CULTURE 7–1 Strong Values & Special Culture SPECIAL VALUES CULTURE 112
Slide 113: Our Values
Regency Centers | STRONG VALUES & SPECIAL CULTURE 7–2 We are our people. We perform for our investors. We provide exceptional service to our customers. We do what is right. We work together to sustain superior results. We add value. We are the industry leader. We connect to our communities. Our Valu
Slide 114: Special Culture
Regency Centers | STRONG VALUES & SPECIAL CULTURE 7–3 INDUSTRY LEADERSHIP Strong Values & Special Culture SPECIAL CULTURE 114
Slide 115: Strong Values & Special Culture
Regency Centers | STRONG VALUES & SPECIAL CULTURE 7–4 115
Slide 116: Combination of Key Strategic Advantages
UNEQUALED Preeminent National Portfolio Superior Tenant & Merchandising Mix Exceptional Operating Expertise & Systems Proven Development & Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQUALED Disciplined Financial Management Strong Values & Special Cul
Slide 117: Forward-Looking Statements
Regency Centers | GUIDANCE 8–1 Forward-Looking Statements 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 Corpo
Slide 118: Guidance: Updated Full-Year 2017
Guidance: Updated Full-Year 2017 All figures pro rata, except per share information Earnings, Same Property NOI Growth and 2017 E Occupancy Metrics Net Income Attributable to Common Stockholders $1.00 – $1.02 NAREIT FFO Per Diluted Share $3.09 – $3.11 Core FFO Per Diluted Share $3.68 – $3.70 Same Pr
Slide 119: Guidance: Initial 2018
Guidance: Initial 2018 All figures pro rata, except per share information Earnings, Same Property NOI Growth and 2018 E Occupancy Metrics Net Income Attributable to Common Stockholders $1.47 – $1.56 NAREIT FFO Per Diluted Share $3.73 – $3.82 Core FFO Per Diluted Share $3.76 – $3.83 Operating FFO Per
Slide 120: Core FFO and Operating FFO Definitions
Core FFO and Operating FFO Definitions Core FFO: NAREIT FFO excluding certain non-comparable items that affect the Company’s period-over-period performance Operating FFO: NAREIT FFO excluding certain non-comparable items that affect the Company’s period-over-period performance and non-cash accountin
Slide 121: 2018 Guidance Roll Forward of Core FFO and Operating FFO
2018 Guidance Roll Forward of Core FFO and Operating FFO Reconciliation Low High Notes 2017 Core FFO Per Diluted Share $3.68 $3.70 2017 EQY Non-Ownership NOI, Net of Funding 0.04 0.042017 pre-merger EQY NOI net of funding (share issuance) Same Property NOI Growth 0.11 0.15Guidance of 2.25%–3.25% Inv
Slide 122: Reconciliation of Net Income to Operating FFO
Look Back Reconciliation of Net Income Attributable to Common Stockholders to Operating FFO Reconciliation of Net Income to Operating FFO 2015 2016Full Year 2017Full Year 2018 Net Income Attributable to Common Stockholders $ 1.36 $1.42$1.00$1.02$1.47$1.56 Adjustments to Reconcile Net Income to NAREI
Slide 123: Non-GAAP Disclosure
Non-GAAP Disclosure The Company uses certain non-GAAP performance measures, in addition to the required GAAP presentations, as it believes these measures improve the understanding of the Company’s operational results. Regency manages its entire real estate portfolio without regard to ownership struc
Slide 124: Closing Remarks
Regency Centers | CLOSING REMARKS 9–1 CLOSING REMARKS 124
Slide 125: Closing Remarks: Unequaled Combination
Regency Centers | CLOSING REMARKS 9–2 UNEQUALED Preeminent National Portfolio Superior Tenant & Merchandising Mix Exceptional Operating Expertise & Systems Proven Development & Redevelopment Capabilities The Combination of These Key Strategic Advantages Makes Regency UNEQUALED Disciplined Financial
Slide 126: Meeting Strategic Objectives to Achieve Sector-Leading Results
Regency Centers | CLOSING REMARKS 9–3 Meeting our strategic objectives will allow us to achieve sector leading results: + = Increasing Dividends Growing Earnings & NAV Superior Total Shareholder Returns 126
Slide 127: Thank You
THANK YOU REGENCY CENTERS 127