April 29th, 2026

The call emphasized strong operating fundamentals: robust same-property NOI (4.4%) and base rent growth (3.5%), near-record leasing metrics (~97% leased, commenced +20 bps), a sizable SNO and development pipeline (> $600M pipeline, >9% blended returns, 7%+ yields), and a strengthened balance sheet highlighted by a $450M note issuance at 4.5% and leverage near the low end of target. Management maintained full-year guidance and reiterated the quality and defensiveness of grocery-anchored centers amid resilient tenant sales, collections and foot traffic. Near-term headwinds include lumpiness in noncash revenue (one lease moved to cash basis), ongoing bankruptcy-related uncertainty, and a tougher Q2 comp that will weigh quarterly cadence. Overall, operational strengths, accretive development execution, and balance sheet flexibility materially outweigh the limited near-term accounting and portfolio credit noise.

Company Guidance

Regency reiterated full-year guidance for same-property NOI growth of 3.25%–3.75% and growth in core operating earnings and NAREIT FFO per share of 4.5% at the midpoint, while expecting total NOI growth north of 6% and $51 million of noncash revenue for the year; Q1 results included same-property NOI +4.4% and base rent growth +3.5%. Management highlighted leasing and pipeline metrics — percent leased approaching 97% (up 10 bps Q/Q), commenced rate +20 bps, a SNO pipeline representing roughly $42 million of incremental base rent, and cash re-leasing spreads near record highs — and investment activity/investment returns: $42 million of project deliveries and $73 million of starts in Q1, an in‑process pipeline >$600 million with blended returns above 9% and development yields in the 7%+ range, and visibility to more than $1 billion of potential project starts over the next three years. They modestly increased development/redevelopment spend and updated acquisitions to include known transactions, and cited balance sheet strength — $450 million of 7‑year notes issued at a 4.5% coupon, A ratings, leverage near the low end of a 5.0–5.5x target range, ample credit availability, and sufficient free cash flow to fund the pipeline with no current need to raise equity.