Regency Centers Reports Fourth Quarter and Full Year 2018 Results

Regency Centers Corporation (“Regency” or the “Company”) today reported
financial and operating results for the period ended December 31, 2018.

Fourth Quarter and Full Year 2018 Highlights

• Fourth quarter Net Income Attributable to Common Stockholders (“Net
  Income”) of $0.46 per diluted share.
• Fourth quarter NAREIT Funds From Operations (“NAREIT FFO”) of $0.98
  per diluted share and Operating Funds From Operations (“Operating
  FFO”) of $0.88 per diluted share.
• Same property Net Operating Income (“NOI”) as adjusted, which reflects
  adjustments for the Equity One merger, excluding termination fees,
  increased 2.2% in the fourth quarter and 3.4% for the full year as
  compared to the same periods in the prior year.
• Fourth quarter rent spreads on comparable new and renewal leases were
  22.5% and 7.2%, respectively, with blended rent spreads of 9.3%.
• As of December 31, 2018, the same property portfolio was 96.1% leased,
  a 20 basis point increase sequentially.
• As of December 31, 2018, spaces greater than or equal to 10,000 square
  feet (“Anchors”) in the same property portfolio were 98.5% leased, a
  50 basis point increase sequentially.
• For the full year 2018, the Company started nearly $200 million of
  developments and redevelopments, contributing toward a five year goal
  of $1.25 to $1.50 billion.
• During the fourth quarter, Regency acquired an interest in one
  shopping center for approximately $18.5 million and sold four shopping
  centers for approximately $82.2 million, at Regency’s share.
• During the fourth quarter, Regency purchased approximately $122
  million shares of common stock at an average price of $57.70 per
  share, bringing total share repurchase for the full year 2018 to
  approximately $247 million at an average price of $57.97 per share.
• During the fourth quarter, Regency issued its inaugural Corporate
  Responsibility Report, highlighting the Company’s commitment to key
  environmental, social and governance initiatives.
• Regency’s Board of Directors (the “Board”) declared a quarterly cash
  dividend on the Company’s common stock of $0.585 per share,
  representing an annualized increase of 5.4%.

“Regency’s exceptional team again executed on our proven strategy,
achieving over 3% same property NOI growth for the seventh consecutive
year, starting nearly $200 million in compelling developments and
redevelopments, further fortifying our strong balance sheet and
highlighting our commitment to corporate responsibility” said Martin E.
“Hap” Stein, Jr., Chairman and Chief Executive Officer. “Regency is well
positioned to sustain growth in earnings, cash flow, and dividends and
in turn, total shareholder returns in the evolving world of retail real
estate.”

Financial Results

Regency reported Net Income for the fourth quarter of $78.9 million, or
$0.46 per diluted share compared to $85.1 million, or $0.50 per diluted
share, for the same period in 2017. For the twelve months ended December
31, 2018, Net Income was $249.1 million, or $1.46 per diluted share,
compared to $159.9 million, or $1.00 per diluted share, for the same
period in 2017.

The Company reported NAREIT FFO for the fourth quarter of $167.2
million, or $0.98 per diluted share, compared to $161.4 million, or
$0.94 per diluted share, for the same period in 2017. For the twelve
months ended December 31, 2018, NAREIT FFO was $652.9 million, or $3.83
per diluted share, compared to $494.8 million, or $3.09 per diluted
share, for the same period in 2017. Certain non-recurring items
recognized in Net Income and NAREIT FFO during 2018 include:

• In the fourth quarter, the Company recognized a gain on sale of land
  in the amount of $5.6 million from the sale of a land parcel in
  Medford, Massachusetts, bringing the total gain on sale of land for
  the full year to $6.7 million.
• The accelerated non-cash income of $6.2 million from a below-market
  rent balance associated with a Toys “R” Us lease acquired by the
  Company at bankruptcy auction.
• Debt extinguishment expense in the amount of $11.2 million, associated
  with the early repayment of debt.

The Company reported Operating FFO, which excludes certain non-recurring
items as well as non-cash components of earnings derived from above and
below market rent amortization, straight-line rents, and amortization of
debt mark-to-market, for the fourth quarter of $149.9 million, or $0.88
per diluted share, compared to $146.8 million, or $0.86 per diluted
share, for the same period in 2017. For the twelve months ended December
31, 2018, Operating FFO was $603.8 million, or $3.54 per diluted share,
compared to $544.8 million, or $3.40 per diluted share, for the same
period in 2017.

Portfolio Performance

Regency’s portfolio is differentiated in its overall outstanding
quality, breadth and scale. The strength of the Company’s merchandising
mix, combined with placemaking elements and connection to its
communities further differentiate Regency’s high quality portfolio.
Regency’s national platform with 22 local market offices and teams offer
critical strategic advantages and position the Company to achieve its
objective to average 3% plus same property NOI growth over the long
term, as it has accomplished over the past seven years.

Fourth quarter same property NOI as adjusted, excluding termination
fees, increased 2.2% compared to the same period in 2017. For the twelve
months ended December 31, 2018, same property NOI as adjusted, excluding
termination fees, increased 3.4% compared to the same period in 2017
driven by a contribution from base rent growth of 3.7%. In light of the
merger with Equity One on March 1, 2017, same property NOI growth as
adjusted is presented on a pro forma basis as if the merger had occurred
January 1, 2017. Please refer to the Company’s supplemental package for
additional details.

As of December 31, 2018, Regency’s wholly owned portfolio plus its
pro-rata share of co-investment partnerships was 95.6% leased. The same
property portfolio was 96.1% leased, which is an increase of 20 basis
points sequentially.

Regency executed approximately 2 million square feet of comparable new
and renewal leases during the quarter. Rent spreads on comparable new
and renewal leases were 22.5% and 7.2%, respectively, with blended rent
spreads of 9.3%. For the twelve months ended December 31, 2018, the
Company executed approximately 6.3 million square feet of comparable new
and renewal leases at blended rent spreads of 8.3%.

Portfolio Enhancement and Capital Allocation

Regency’s capital allocation strategy enables the Company to benefit
from a self-funding model, in which free cash flow is the primary source
of funding, and supports the development and redevelopment program on a
leverage neutral basis. Regency’s development and redevelopment platform
is a critical strategic advantage for creating significant value for
shareholders. Together with the sales of lower growth assets, free cash
flow also enables the Company to invest in high-growth acquisitions and
share repurchases when pricing is compelling. This capital allocation
strategy preserves Regency’s pristine balance sheet and allows the
Company to add value and enhance the quality of the portfolio on a net
accretive basis.

Developments and Redevelopments

For the full year 2018, the Company started nearly $200 million of
developments and redevelopments, contributing toward a five year goal of
$1.25 billion to $1.50 billion. At year end, the Company had 19
properties in development or redevelopment with combined, estimated net
development costs of approximately $390 million. In-process development
projects were a combined 62% funded and 79% leased, and are expected to
yield an average return of 7.2%.

During the fourth quarter, the Company started two ground up development
projects:

• Carytown Exchange (Richmond, VA) – A 107,000 square foot shopping
  center anchored by Publix. The estimated development cost of Carytown
  Exchange is approximately $26 million at a projected 7.3% stabilized
  yield.
• The Village at Hunter’s Lake (Tampa, FL) – This 72,000 square foot
  shopping center anchored by Sprouts, will be surrounded by 250
  separately owned multifamily units. The estimated development cost of
  The Village at Hunter’s Lake is approximately $22 million at a
  projected 8.0% stabilized yield.

Regency also started three redevelopment projects during the quarter:

• Market Common Clarendon (Washington, DC) – The redevelopment and
  densification of a vacant 130,000 square foot office building that
  will be anchored by a luxury fitness user, and also offer modern,
  loft-style office space with ground floor retail. Total project cost
  is approximately $54 million at a projected 8% - 9% stabilized yield.
• Point 50 (Fairfax, VA) – At Point 50, the Company will construct a new
  48,000 square foot shopping center with a Whole Foods to anchor this
  highly desirable site. Total project cost is approximately $17 million
  at a projected 7% - 8% stabilized yield.
• Pablo Plaza (Jacksonville, FL) – A 154,000 square foot shopping center
  will be reconfigured with a new Whole Foods that will add to the
  compelling anchor lineup that includes Marshall’s and Homegoods. Total
  project cost is approximately $15 million at a projected 6% -7%
  stabilized yield.

Property Transactions

During the quarter, the Company began the phased acquisition of an
interest in the Town and Country Center with an initial investment of
approximately $18.5 million. Subsequent to quarter end, Regency acquired
an additional interest in the shopping center bringing the total current
investment to $36.3 million. Town and Country Center is a 230,000 square
foot shopping center located in Los Angeles, CA, and anchored by Whole
Foods and CVS with a vacant former K-Mart. The Company plans to
redevelop the shopping center, which will include approximately 325
apartment units over ground floor retail developed by a best-in-class
multifamily developer through an air rights lease transaction. For the
full year 2018, the Company acquired seven properties for a total
purchase price of $163.6 at Regency’s share.

Regency sold four shopping centers during the fourth quarter of 2018 for
combined proceeds of approximately $82 million. For the full year 2018,
Regency sold 11 properties for a combined gross sales price of $225
million at a weighted average cap rate of 7.8%.

Subsequent to year-end, Regency acquired a center in Seattle for $15.5
million. Melrose Market is a 21,000 square foot center located in the
vibrant Capitol Hill neighborhood. Regency also sold four shopping
centers subsequent to year-end for combined proceeds of $72.6 million.

Share Repurchase Program

During the quarter, Regency purchased 2.107 million shares of common
stock at an average price of $57.70 per share for approximately $122
million, bringing total share repurchases for the full year 2018 to
approximately $247 million shares of common stock at an average price of
$57.97 per share.

Regency’s Board authorized a refreshed share repurchase plan for an
additional $250 million of shares of the Company’s common stock. This
program is scheduled to expire on February 4, 2020. The timing of share
repurchases under the program is dependent upon marketplace conditions
and other factors, and the program remains subject to the discretion of
the Board.

Balance Sheet

Regency benefits from favorable access to capital through the strength
of its balance sheet, supported by conservative leverage levels with a
targeted Net Debt to EBITDA ratio of 5.0x. This positions Regency to
weather potential challenges and potentially profit from investment
opportunities in the future.

As previously disclosed, during 2018 the Company further enhanced its
already strong balance sheet via a $300 million unsecured bond offering
on February 28, 2018, that extended duration and reduced overall
interest expense. On March 26, 2018, the Company recast and upsized its
credit facility to $1.25 billion, enhancing liquidity and financial
flexibility.

Dividend

Regency’s Board declared a quarterly cash dividend on the Company’s
common stock of $0.585 per share, representing an annualized increase of
5.4%. The dividend is payable on March 7, 2019, to shareholders of
record as of February 25, 2019.

Full Year 2019 Guidance

Regency Centers issued initial 2019 guidance concurrently with the
fourth quarter 2018 earnings release. Please refer to the Company’s
fourth quarter 2018 Supplemental for a complete list of guidance. A 2019
Earnings and Valuation Guidance package with additional details can be
found in the presentation section of the investor relations website at Investors.RegencyCenters.com.

Full Year 2019 Guidance
All figures pro-rata and in thousands, except per share data
Net Income Attributable to Common Stockholders ("Net Income") per diluted share(1)	$1.36 to $1.42
NAREIT Funds From Operations ("NAREIT FFO") per diluted share(1)	$3.83 to $3.89
Same Property Net Operating Income ("SP NOI") Growth excluding termination fees	2.0% to 2.5%
Development and Redevelopment starts Estimated yield (weighted average)	$150,000 to $250,000 +/- 7.0%
Acquisitions Cap rate (weighted average)	+/- $16,000 +/- 4.3%
Dispositions Cap rate (weighted average)	+/- $200,000 +/- 8.0%
(1) 2019 includes the impact of ($0.05) per diluted share related to the adoption of the new lease accounting standard ASC 842 on January 1, 2019, that requires previously capitalized indirect internal leasing and legal costs to be expensed.

Conference Call Information

To discuss Regency’s fourth quarter results and initial 2019 guidance,
the Company will host a conference call and presentation on Thursday,
February 14, 2019, at 11:00 a.m. ET. Dial-in and webcast information is
listed below.

Fourth Quarter 2018 Earnings Conference Call and 2019 Guidance Presentation
Date:	Thursday, February 14, 2019
Time:	11:00 a.m. ET
Dial#:	877-407-0789 or 201-689-8562
Webcast:	Investors.RegencyCenters.com

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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 structure,
although certain decisions impacting properties owned through
partnerships require partner approval. Therefore, the Company believes
presenting its pro-rata share of operating results regardless of
ownership structure, along with other non-GAAP measures, makes
comparisons of other REITs' operating results to the Company's more
meaningful. Management continually evaluates the usefulness, relevance,
limitations, and calculation of the Company’s reported non-GAAP
performance measures to determine how best to provide relevant
information to the public, and thus such reported measures could change.

NAREIT FFO is a commonly used measure of REIT performance, which the
National Association of Real Estate Investment Trusts (“NAREIT”) defines
as net income, computed in accordance with GAAP, excluding gains and
losses from dispositions of depreciable property, net of tax, excluding
operating real estate impairments, plus depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint
ventures. Regency computes NAREIT FFO for all periods presented in
accordance with NAREIT's definition. Many companies use different
depreciable lives and methods, and real estate values historically
fluctuate with market conditions. Since NAREIT FFO excludes depreciation
and amortization and gains and losses from depreciable property
dispositions, and impairments, it can provide a performance measure
that, when compared year over year, reflects the impact on operations
from trends in occupancy rates, rental rates, operating costs,
acquisition and development activities, and financing costs. This
provides a perspective of the Company’s financial performance not
immediately apparent from net income determined in accordance with GAAP.
Thus, NAREIT FFO is a supplemental non-GAAP financial measure of the
Company's operating performance, which does not represent cash generated
from operating activities in accordance with GAAP and therefore, should
not be considered a substitute measure of cash flows from operations.
The Company provides a reconciliation of Net Income (Loss) Attributable
to Common Stockholders to NAREIT FFO.

Operating FFO is an additional performance measure that excludes from
NAREIT FFO: (i) transaction related income or expenses; (ii) impairments
on land; (iii) gains or losses from the early extinguishment of debt;
(iv) certain non-cash components of earnings derived from above and
below market rent amortization, straight-line rents, and amortization of
mark-to-market of debt adjustments; and (v) other amounts as they occur.
The Company believes Operating FFO, which excludes certain non-cash and
non-comparable items from the computation of NAREIT FFO that affect the
Company’s period-over-period performance, is useful to investors because
it is more reflective of the core operating performance of its portfolio
of properties. The Company provides a reconciliation of Net Income
(Loss) to NAREIT FFO and Operating FFO for actual results.

Reconciliation of Net (Loss) Income Attributable to Common Stockholders to NAREIT FFO and Operating FFO - Actual (in thousands)
For the Periods Ended December 31, 2018 and 2017	Three Months Ended								Year to Date
	2018				2017				2018				2017
Reconciliation of Net Income (Loss) to NAREIT FFO:
Net Income (Loss) Attributable to Common Stockholders	$	78,905			85,139				$	249,127			159,949
Adjustments to reconcile to NAREIT Funds From Operations(1):
Depreciation and amortization (excluding FF&E)		100,422			98,036					390,603			364,908
Provision for impairment to operating properties		8,994			-					37,895			-
Gain on sale of operating properties		(21,335	)		(21,988	)				(25,293	)		(30,402	)
Gain on remeasurement of investment in real estate partnership		-			-					-			-
Exchangeable operating partnership units		166			171					525			388
NAREIT Funds From Operations	$	167,152			161,358				$	652,857			494,843
Reconciliation of NAREIT FFO to Operating FFO:
NAREIT Funds From Operations	$	167,152			161,358				$	652,857			494,843
Adjustments to reconcile to Operating Funds From Operations(1):
Acquisition pursuit and closing costs		-			-					-			138
Income tax benefit		-			(9,737	)				-			(9,737	)
Gain on sale of land		(5,628	)		(654	)				(6,659	)		(3,623	)
Provision for impairment to land		-			-					542			-
Loss on derivative instruments and hedge ineffectiveness		-			(2	)				-			(14	)
Early extinguishment of debt		-			46					11,172			12,449
Interest on bonds for period from notice to redemption		-			-					600			-
Merger related costs		-			5,131					-			80,715
Merger related debt offering interest		-			-					-			975
Preferred redemption costs		-			-					-			12,227
Hurricane losses		-			744					-			2,596
Straight line rent, net		(3,652	)		(4,534	)				(17,292	)		(18,131	)
Above/below market rent amortization, net		(7,440	)		(4,682	)				(34,171	)		(24,287	)
Debt premium/discount amortization		(536	)		(899	)				(3,263	)		(3,340	)
Operating Funds From Operations	$	149,896			146,771				$	603,786			544,811
Weighted Average Shares For Diluted Earnings per Share		169,842			170,855					170,100			159,960
Weighted Average Shares For Diluted FFO and Operating FFO per Share		170,192			171,205					170,450			160,255
(1) Includes pro-rata share of unconsolidated co-investment partnerships, net of pro-rata share attributable to noncontrolling interests.

Same property NOI is a key non-GAAP measure used by management in
evaluating the operating performance of Regency’s properties. The
Company provides a reconciliation of net income to pro-rata same
property NOI.

Reconciliation of Net Income (Loss) Attributable to Common Stockholders to Pro-Rata Same Property NOI as adjusted - Actual (in thousands)
For the Periods Ended December 31, 2018 and 2017		Three Months Ended									Year to Date
			2018			2017						2018			2017
Net Income (Loss) Attributable to Common Stockholders		$	78,905			85,139					$	249,127			159,949
Less:
Management, transaction, and other fees			(7,495	)		(6,806	)					(28,494	)		(26,158	)
Income tax benefit			-			(9,737	)					-			(9,737	)
Gain on sale of real estate			23,895			22,519						28,343			27,432
Other(1)			(12,084	)		(10,819	)					(56,906	)		(47,357	)
Plus:
Depreciation and amortization			92,876			90,444						359,688			334,201
General and administrative			13,544			18,006						65,491			67,624
Other operating expense, excluding provision for doubtful accounts			1,919			6,460						4,744			85,233
Other expense (income)			24,699			11,841						170,818			113,661
Equity in income of investments in real estate excluded from NOI (2)			11,597			14,771						56,680			53,290
Net income attributable to noncontrolling interests			831			802						3,198			2,903
Preferred stock dividends and issuance costs			-			-						-			16,128
NOI			228,687			222,620						852,689			777,169
Less non-same property NOI (3)			(7,627	)		(7,490	)					(31,997	)		(26,029	)
Plus same property NOI for non-ownership periods of Equity One(4)			-			-						-			42,762
Same Property NOI as adjusted		$	221,060			215,130					$	820,692			793,902
Same Property NOI as adjusted without Termination Fees		$	196,598			192,388					$	791,127			765,480
Same Property NOI as adjusted without Termination Fees or Redevelopments		$	173,731			170,980					$	700,353			686,761
(1) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interests.
(2) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, such as, but not limited to, straight-line rental income, above and below market rent amortization, depreciation and amortization, and interest expense.
(3) Includes revenues and expenses attributable to Non-Same Property, Projects in Development, corporate activities, and noncontrolling interests.
(4) Refer to page ii of the Company's fourth quarter 2018 supplemental package for Same Property NOI detail for the non-ownership periods of Equity One.

Reported results are preliminary and not final until the filing of the
Company’s Form 10-K with the SEC and, therefore, remain subject to
adjustment.

		Full Year
NAREIT FFO Guidance:		2019
		Low			High
Net income attributable to common stockholders		$	1.36		1.42
Adjustments to reconcile net income to NAREIT FFO:
Depreciation and amortization			2.47		2.47
NAREIT Funds From Operations		$	3.83		3.89

Reconciliation of Net Income Attributable to Common Stockholders to
NAREIT FFO— Guidance (per diluted share)

The Company has published forward-looking statements and additional
financial information in its fourth quarter 2018 supplemental
information package that may help investors estimate earnings for 2019.
A copy of the Company’s fourth quarter 2018 supplemental information
will be available on the Company's website at www.RegencyCenters.com
or by written request to: Investor Relations, Regency Centers
Corporation, One Independent Drive, Suite 114, Jacksonville, Florida,
32202. The supplemental information package contains more detailed
financial and property results including financial statements, an
outstanding debt summary, acquisition and development activity,
investments in partnerships, information pertaining to securities issued
other than common stock, property details, a significant tenant rent
report and a lease expiration table in addition to earnings and
valuation guidance assumptions. The information provided in the
supplemental package is unaudited and there can be no assurance that the
information will not vary from the final information in the Company’s
Form 10-K for the year ended December 31, 2018. Regency may, but assumes
no obligation to, update information in the supplemental package from
time to time.

About Regency Centers Corporation (NASDAQ: REG)

Regency Centers is the preeminent national owner, operator, and
developer of shopping centers located in affluent and densely populated
trade areas. 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.

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 Corporation with the SEC,
specifically the most recent reports on Forms 10-K and 10-Q, which
identify important risk factors which could cause actual results to
differ from those contained in the forward-looking statements.

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