Regency Centers Corporation · NASDAQ:REG
Regency Centers — Investor Presentation (September 2006)
24 slides from Regency Centers's investor presentation, September 2006
Slide 1: September 2006
September 2006
Slide 2: Why Regency? The quality of our portfolio, development, financial model, team
Why Regency? THE QUALITY OF OUR… P O R T FO L I O . D E V E L O P M E N T . F I N A N C I A L M O D E L . T E A M 2
Slide 3: Regency's Goals Over the Next Three Years
Regency s Goals ’ OVER THE NEXT THREE YEARS… Enhance position as leading national owner, operator and developer focused on neighborhood and community shopping centers Achieve a compound FFO per-share growth rate of 8%+ (1) Generate Return on Equity (ROE) of 14%+ Maintain a strong balance sheet and r
Slide 4: National Company with Local Expertise
High Quality Portfolio NATIONAL COMPANY WITH LOCAL EXPERTISE Regency’s Powerful Platform: 390 Centers Located in 34 of Top 50 MSA’s Approximately 51 Million Sq. Ft. of GLA As of June 30, 2006 Regency office locations in bold 4
Slide 5: High Quality National Portfolio and Industry-Leading Operating Systems
High Quality Portfolio HIGH QUALITY NATIONAL PORTFOLIO AND INDUSTRY-LEADING OPERATING SYSTEMS DRIVE SUSTAINABLE NOI GROWTH Dominant Grocers 9 Grocer sales average $23.5 million 9 Regency’s same store grocer sales increased 3.2% over 2004 Strong Demographics 9 In 34 of the largest 50 markets (83% of
Slide 6: Dominant Grocers with Strong Sales
High Quality Portfolio DOMINANT GROCERS WITH STRONG SALES # of Regency Stores Per Store Per SF Safeway 69 $22,169 $421 Kroger 68 $25,054 $428 Publix 64 $24,097 $519 Supervalu 36 $21,915 $426 Harris Teeter 7 $21,111 $427 Trader Joe's 6 $32,094 $3,016 H.E.B. 5 $56,799 $738 Whole Foods 2 $39,114 $1,027
Slide 7: Attractive Demographics in Top Markets
High Quality Portfolio ATTRACTIVE DEMOGRAPHICS IN TOP MARKETS 2006 ESTIMATED HOUSEHOLD INCOME (1) REGENCY'S TOP MARKETS % of NOI REGENCY MARKET L.A. , Ventura, Orange County, Riverside 12.4% $89,454 $74,405 San Francisco Bay Area 8.3% $99,428 $94,704 Washington D.C. 7.6% $96,515 $93,206 Dallas/Ft. W
Slide 8: Dominant Grocers + Strong Demographics = Wal-Mart Resistant
High Quality Portfolio DOMINANT GROCERS + STRONG DEMOGRAPHICS = WAL-MART RESISTANT Dominant Grocer Advantages, Especially in Densely Populated Markets With Above Average H.H. Income 9 Over the last three years, Wal-Mart’s market share has only grown from 5.9% to 8.3% in the 20 highest income markets
Slide 9: Premier Customer Initiative
Strong Tenant Relationships PCI PREMIER CUSTOMER INITIATIVE Partner with “best in class” national retailers and operators who serve as a secondary anchor and create high quality, high traffic centers 86 STORES 9 Ability to offer multiple locations 56 STORES 109 STORES 9 Expedited leasing process 9 H
Slide 10: Quality Portfolio and Operating Systems Sustain NOI Growth
Sustained NOl Growth QUALITY PORTFOLIO AND OPERATING SYSTEMS SUSTAIN NOI GROWTH YTD - (2) June 30, 2006 2005 2004 2003 2002 2001 (1) OCCUPANCY 95.4% 95.2% 96.1% 95.4% 94.8% 94.9% RENEWAL RATE 79.1% 72.4% 80.8% 75.0% 77.0% 71.0% RENT GROWTH 13.1% 10.6% 10.1% 9.5% 10.8% 10.5% SAME PROPERTY 3.4% 3.1% 2
Slide 11: Development Program Enhances Quality of Platform
Development Program DEVELOPMENT PROGRAM ENHANCES QUALITY OF PLATFORM, GENERATES ATTRACTIVE RETURNS AND CREATES SUBSTANTIAL VALUE 9 Service growth needs of customers: anchors and side-shop retailers 9 Tenant-driven, non-speculative with significant pre-leasing 9 New centers and new formats with 20 ye
Slide 12: Proven Results and Promising Future
Development Program PROVEN RESULTS AND PROMISING FUTURE YTD – June 30, ($ Millions) 2006 2005 2004 2003 2002 Development Starts $54 $385 $270 $300 $315 Development Completions $32 $295 $240 $194 $295 NOI Yield on Completions 9.9% 11.1% 10.5% 10.4% 10.4% Robust Pipeline of $1.8 billion and $767 milli
Slide 13: Disciplined Strategy Yields Successful Completions
Development Program DISCIPLINED STRATEGY YIELDS SUCCESSFUL COMPLETIONS Underwritten Months to ($ millions) # of Projects Actual Net Costs Actual Yield Yield Stabilize All Projects Since 2000 113 $1,435 10.7% 10.6% 22.3 All Grocery-Anchored Centers Since 2000 88 $1,040 10.7% 10.6% 24.9 All Non-Grocer
Slide 14: Realized Substantial Value from Development Program in 2005
Development Program REALIZED SUBSTANTIAL VALUE FROM DEVELOPMENT PROGRAM IN 2005 Completed 22 new developments representing $295 million investment 9 11% return on capital 9 Recognized profits of $38 million 9 Created more than $150 million of value Started 24 new developments totaling $385 million 9
Slide 15: Self-Funding Capital Recycling and Joint Venture Strategies Fund Growth
Capital Recycling & Joint Ventures SELF-FUNDING CAPITAL RECYCLING AND JOINT VENTURE STRATEGIES FUND GROWTH 9 Profitably expand operating portfolio 9 Cull low growth and higher risk centers 9 Maintain a strong balance sheet 9 Minimize requirement for new equity 15
Slide 16: Since 2000, Over $6 Billion in Investments with Less Than 5% New Equity
Self-Funding Capital Recycling Since 2000, OVER $6 BILLION IN INVESTMENTS WITH LESS THAN 5% FUNDED BY NEW EQUITY ($ Millions) Development Completions and In- Process Developments $2,250 Acquisitions and JV Contributions $4,070 Total Investments $6,320 Property and Outparcel Sales $1,943 JV Capital $
Slide 17: Cost Effectively and Profitably Grow Portfolio
Joint Ventures COST EFFECTIVELY AND PROFITABLY GROW PORTFOLIO $7.3 Billion Fee Income $28 Million Total Investment Portfolio ($000’s) ($000’s) $8,000,000 $30,000 $7,000,000 $25,000 $6,000,000 $20,000 $5,000,000 $15,000 $4,000,000 $3,000,000 $10,000 $2,000,000 $5,000 $1,000,000 $0 $0 2001 2002 2003 2
Slide 18: Joint Venture Summary: Venture Capitalization
Joint Ventures JOINT VENTURE SUMMARY: VENTURE CAPITALIZATION 18
Slide 19: Strong Balance Sheet Provides Financial Flexibility
Financial Strength STRONG BALANCE SHEET PROVIDES FINANCIAL FLEXIBILITY YTD – June 30, 2006 2005 2004 2003 2002 2001 Debt to Market Capitalization 25.3% 26.8% 27.9% 34.6% 35.9% 40.3% Debt to Assets at Cost 38.8% 40.4% 41.7% 42.9% 40.2% 42.2% Debt to Assets at Cost 45.6% 48.9% 44.0% 44.4% 41.3% 42.7%
Slide 20: Top Notch Management Team
Key to Regency s Strategy ’ TOP NOTCH MANAGEMENT TEAM 9 Nearly 500 dedicated employees 9 Experienced, cycle-tested officers 9 20 market offices around country: National coverage + local market expertise = broad and deep team 9 Regency’s culture values: customers, shareholders, and employees 20
Slide 21: Committed Stewards
Corporate Governance COMMITTED STEWARDS 9 Annual election of directors 9 Stock ownership/retention requirements for directors 9 Expensing stock options 9 Directors dedicated stewards of shareholder interests 9 Committed to transparency 21
Slide 22: Investors Benefited from 10 Years of Achievement
Shareholder Value INVESTORS BENEFITED FROM 10 YEARS OF ACHIEVEMENT 700.00% Increased 600.00% dividend by 8% 500.00% in 2005 to $2.38 per share. 11th 400.00% consecutive 300.00% annual dividend MS REIT increase. S&P 500 200.00% REG 100.00% 0.00% 1996 REG 1997 1998 S&P 500 1999 2000 2001 MS REIT 2002
Slide 23: Enthusiastic About the Future
The Future ENTHUSIASTIC ABOUT THE FUTURE 9 PORTFOLIO: Eight-year average same store NOI growth over 3% 9 DEVELOPMENT: $2.6 billion development pipeline, including in-process developments, creating nearly $700 million in value 9 FINANCIAL MODEL: Nearly 75% of investments funded through property sales
Slide 24: September 2006
i aS So ics ae ah September 2006
Regency Centers — Investor Presentation (September 2006) on 6ix