Regency Centers Provides an Update on Recent Transaction Activity

Rhea-AI Summary

Regency Centers Corporation (Nasdaq: REG) announced significant transaction activity for Q4 2021 and year-to-date 2022. In Q4 2021, the company acquired properties totaling $311 million, including Blakeney Shopping Center for $181 million and a $130 million portfolio in Long Island. Full-year acquisitions reached $489 million at a 5.1% cap rate. Dispositions totaled $87 million in Q4, including Marina Shores and Sequoia Station, with full-year dispositions at $279 million. Notably, Regency closed a $125 million sale of Costa Verde Center post-year-end. CEO Lisa Palmer emphasized a self-funded, accretive growth strategy.

Positive

• Acquired Blakeney Shopping Center for $181 million, expanding portfolio.
• Completed $130 million acquisition of four neighborhood centers in Long Island.
• Total acquisitions for 2021 reached $489 million at a 5.1% blended cap rate.
• Dispositions totaled $279 million for the full year, enhancing financial flexibility.
• Closed on $125 million sale of Costa Verde Center, indicating solid market demand.

Negative

• None.

JACKSONVILLE, Fla., Jan. 12, 2022 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency” or the “Company”) (Nasdaq:REG) today announced recently completed transaction activity during the fourth quarter of 2021 and year-to-date in 2022.

Acquisitions

• During the fourth quarter of 2021, the Company completed acquisitions for a combined total of $311 million. These transactions were completed on a wholly-owned basis.
  • On November 18, 2021, Regency completed the previously-announced acquisition of Blakeney Shopping Center, a 383,000 square foot grocery-anchored community center located in South Charlotte, North Carolina, for $181 million. The open-air center is anchored by Harris Teeter, Marshalls, HomeGoods, Best Buy and PetSmart, and shadow-anchored by Target.
  • On December 30, 2021, Regency acquired a portfolio of four grocery-anchored neighborhood centers for $130 million, each located on Long Island in New York. This 387,000 square foot portfolio includes three centers anchored by King Kullen and one anchored by Stew Leonard’s.
• Including these transactions, during the full year 2021 the Company completed acquisitions for a combined total of $489 million, at Regency’s share, at a 5.1% blended cap rate.

Dispositions

• During the fourth quarter of 2021, the Company completed the disposition of two properties for a combined total of $87 million, at Regency’s share.
  • On November 16, 2021, the Company closed on the sale of its Marina Shores property located in Long Beach, California, for $14 million, at Regency’s share. The property was 20% owned by Regency in a co-investment partnership, and sold to a private buyer for a proposed multifamily development.
  • On December 15, 2021, the Company closed on the sale of its wholly-owned Sequoia Station center located in Redwood City (Bay Area), California for $73 million. The property was sold to a private buyer for a proposed mixed-use densification project.
• Including these transactions, during the full year 2021 the Company completed dispositions for a combined total of $279 million, at Regency’s share. The blended cap rate was 5.2% excluding non-income producing properties, and 4.3% including non-income producing properties.
• Subsequent to year-end, on January 11, 2022, the Company closed on the sale of its wholly-owned Costa Verde Center in San Diego, California for $125 million. The cap rate on in-place NOI was approximately 1.5%. The property was sold to another public REIT for the proposed development of office/laboratory space.
  

“Following the acquisition of Blakeney, we are excited to have also added four outstanding neighborhood centers on Long Island to our portfolio during the fourth quarter. Investing in high-quality, well-located grocery-anchored retail, as we did successfully in 2021, is at the core of Regency’s capital allocation strategy,” said Lisa Palmer, President and Chief Executive Officer. “Importantly, our recent acquisitions were largely self-funded on an earnings accretive basis by monetizing the value we’ve created through the sale of properties where the highest and best use evolved into predominantly non-retail.”

About Regency Centers Corporation (Nasdaq:REG)

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. 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.

Christy McElroy
904 598 7616
ChristyMcElroy@regencycenters.com

FAQ

What acquisitions did Regency Centers Corporation make in Q4 2021?

In Q4 2021, Regency Centers acquired Blakeney Shopping Center for $181 million and a portfolio of four neighborhood centers for $130 million.

What was the total value of acquisitions by Regency in 2021?

Regency completed a total of $489 million in acquisitions in 2021 at a 5.1% blended cap rate.

How much did Regency Centers sell its properties for in Q4 2021?

In Q4 2021, Regency Centers sold properties for a total of $87 million.

What was the significant property sold by Regency after year-end 2021?

Regency sold its wholly-owned Costa Verde Center in San Diego for $125 million on January 11, 2022.

What is the impact of Regency's recent transactions on its financial strategy?

Regency's recent transactions are part of a self-funded, earnings accretive capital allocation strategy.