Regency Centers Pref Share REG 6.25 Perp 09/21/23 | 10-Q: FY2026 Q1 Revenue: USD 412.45 M

Revenue: As of FY2026 Q1, the actual value is USD 412.45 M.

EPS: As of FY2026 Q1, the actual value is USD 0.68.

EBIT: As of FY2026 Q1, the actual value is USD 206.9 M.

Overview and Strategic Goals

Regency Centers Corporation aims to increase earnings and dividends through owning and managing a high-quality portfolio of neighborhood and community shopping centers, maintaining a disciplined development platform for favorable returns, and supporting business activities with a conservative capital structure . The company’s mission is to create thriving environments for retailers and service providers to connect with surrounding neighborhoods and communities . As of March 31, 2026, the company held full or partial ownership interests in 481 retail properties, totaling approximately 58.5 million square feet (SF) of gross leasable area (GLA) .

Segment Revenue

• Total Revenues: Increased by $31,541 thousand to $412,453 thousand for Q1 2026, from $380,912 thousand in Q1 2025 .
• Lease Income: Increased by $31,534 thousand to $402,613 thousand in Q1 2026, from $371,079 thousand in Q1 2025 .
  • Base Rent: Increased by $20,622 thousand to $275,178 thousand in Q1 2026, from $254,556 thousand in Q1 2025, driven by same properties ($11.6 million), operating property acquisitions ($7.1 million), and completed development properties ($3.4 million), partially offset by property dispositions (-$1.5 million) .
  • Recoveries from Tenants: Increased by $11,780 thousand to $103,261 thousand in Q1 2026, from $91,481 thousand in Q1 2025, primarily due to higher operating costs and recovery rates from increased occupancy .
  • Percentage Rent: Increased to $7,435 thousand in Q1 2026 from $6,658 thousand in Q1 2025 .
  • Uncollectible Lease Income: Increased by $1,113 thousand to - $1,499 thousand in Q1 2026, from - $386 thousand in Q1 2025, due to lower collection rates .
  • Other Lease Income: Increased by $1,681 thousand to $8,094 thousand in Q1 2026, from $6,413 thousand in Q1 2025, mainly due to higher lease assignment fee income .
  • Straight-line Rent: Decreased by - $1,051 thousand to $4,556 thousand in Q1 2026, from $5,607 thousand in Q1 2025 .
  • Above/Below Market Rent Amortization, net: Decreased by - $1,162 thousand to $5,588 thousand in Q1 2026, from $6,750 thousand in Q1 2025 .
• Other Property Income: Remained relatively stable at $2,907 thousand in Q1 2026, compared to $3,021 thousand in Q1 2025 .
• Management, Transaction, and Other Fees: Remained relatively stable at $6,933 thousand in Q1 2026, compared to $6,812 thousand in Q1 2025 .

Operational Metrics

• Net Income Attributable to Common Shareholders: Increased by $18,962 thousand to $125,136 thousand for Q1 2026, from $106,174 thousand for Q1 2025 .
• Net Income Attributable to the Company: $128,549 thousand for Q1 2026, compared to $109,587 thousand for Q1 2025 .
• Net Income Attributable to Common Unit Holders: $127,753 thousand for Q1 2026, compared to $106,816 thousand for Q1 2025 .
• Operating Expenses: Increased by $22,858 thousand to $257,739 thousand in Q1 2026, from $234,881 thousand in Q1 2025 .
  • Depreciation and Amortization: Increased by $9,648 thousand to $106,422 thousand in Q1 2026, from $96,774 thousand in Q1 2025 .
  • Property Operating Expense: Increased by $4,841 thousand to $73,300 thousand in Q1 2026, from $68,459 thousand in Q1 2025 .
  • Real Estate Taxes: Increased by $5,050 thousand to $51,410 thousand in Q1 2026, from $46,360 thousand in Q1 2025 .
  • General and Administrative: Increased by $4,006 thousand to $25,606 thousand in Q1 2026, from $21,600 thousand in Q1 2025 .
• Interest Expense, Net: Increased by $4,172 thousand to $52,185 thousand in Q1 2026, from $48,013 thousand in Q1 2025 .
• Gain on Sale of Real Estate, Net of Tax: $7,194 thousand in Q1 2026, primarily from the sale of two outparcels, compared to $101 thousand in Q1 2025 .
• Net Investment (Income) Expense: Changed from - $761 thousand expense in Q1 2025 to - $695 thousand income in Q1 2026, a positive change of $1,456 thousand .
• Equity in Income of Investments in Real Estate Partnerships: Increased by $7,900 thousand to $22,380 thousand in Q1 2026, from $14,495 thousand in Q1 2025 .
• Same Property Net Operating Income (NOI): Grew by 4.4% to $285,634 thousand in Q1 2026, from $273,673 thousand in Q1 2025 .
• Leasing Activity (Pro-rata SF):
  • Total Leasing Transactions: 444 transactions representing 1.6 million SF in Q1 2026, compared to 450 transactions representing 1.4 million SF in Q1 2025 .
  • Rent Spreads: Positive rent spreads of 12.1% in Q1 2026, compared to 8.1% in Q1 2025 .
  • Weighted-Average Base Rent PSF on Signed Shop Space Leases: $41.20 in Q1 2026 .
• Occupancy Rates (as of March 31, 2026):
  • Total Property Portfolio: 96.2% leased (96.3% at March 31, 2025) .
  • Same Property Portfolio: 96.6% leased (consistent with March 31, 2025) .
  • Anchor Space (≥10,000 SF): 98.2% leased .
  • Shop Space (<10,000 SF): 93.1% leased .
• Development and Redevelopment Projects (in-process):
  • Estimated Pro-rata Project Costs: Totaled $634.8 million at March 31, 2026, up from $597.4 million at December 31, 2025 .
  • Projects Completed (Q1 2026): Represented $42.0 million of estimated net project costs with an average stabilized yield of 7.9% .
• Tenant Concentration: No single tenant comprised 10% or more of aggregate annualized base rent (ABR) as of March 31, 2026 . Top tenants include Publix (2.8% of ABR), Albertsons Companies, Inc. (2.7%), TJX Companies, Inc. (2.7%), Amazon/Whole Foods (2.6%), and Kroger Co. (2.5%) . Bankrupt tenants represent 0.4% of Pro-rata annual base rent .

Cash Flow

• Net Cash Provided by Operating Activities: Decreased by - $8,302 thousand to $152,729 thousand in Q1 2026, from $161,031 thousand in Q1 2025 .
• Net Cash Used in Investing Activities: Decreased by $85,221 thousand to - $94,927 thousand in Q1 2026, from - $180,148 thousand in Q1 2025, due to lower acquisition costs, higher proceeds from real estate sales, and significant capital return from partnerships .
• Net Cash (Used in) Provided by Financing Activities: Changed from $35,770 thousand provided in Q1 2025 to - $32,903 thousand used in Q1 2026, a decrease of - $68,673 thousand, influenced by new debt issuance, higher dividends paid, and increased repayment of credit facilities .
• Total Cash, Cash Equivalents, and Restricted Cash: Increased to $145,560 thousand at March 31, 2026, from $78,537 thousand at March 31, 2025 .

Future Outlook and Strategy

Regency Centers Corporation maintains A- and A3 credit ratings with stable outlooks from S&P Global Ratings and Moody’s Investors Service, respectively . The company plans to address $1.0 billion of debt maturities in the next 12 months through operations, available liquidity, or potential property sales, having recently issued $450 million in senior unsecured notes to reduce its Line of Credit and repay existing debt . The company estimates $1.5 billion in capital requirements over the next year for leasing, development, and debt repayment, mitigating construction cost increases through fixed-cost contracts and pre-ordering materials .