REGENCY CENTERS CORP
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
REG$74.84-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0000950170-24-052749
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000950170-24-089720
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 266 previous paragraphs and 298 current paragraphs.
144 unchanged; 87 reworded; 46 added; 32 removed; 3 previous and 21 current paragraphs rearranged.
Tables are not compared: 26 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (46)
Current report
During the six months ended June 30, 2024:
Current report
On June 17, 2024, Regency repaid $250 million of maturing senior unsecured notes.
Current report
Significant Tenants
Current report
In October 2022, Kroger Co. and Albertsons Companies, Inc. announced a proposed merger, and in September 2023 an agreement for a separate transaction was announced to divest certain assets of each company to a third party, C&S Wholesale Grocers ("C&S"). The transaction with C&S, as later amended in April 2024, calls for the sale of 579 stores to C&S. Lawsuits have been filed by federal and state regulators to enjoin the merger on antitrust grounds. Regency has a combined 104 Kroger and Albertson's stores, and 11 of them are among the 579 locations proposed to be sold to C&S. These 11 locations comprise 0.9% of GLA and 0.5% of Annual Base Rent, including our Pro-rata share of our real estate partnerships . The expected outcome of the lawsuits to enjoin the transactions is uncertain at this time. Based on information currently available to the Company, we do not believe that these transactions (if they are consummated), or the termination of these transactions (if they are legally enjoined or otherwise fail to close), will have a material adverse effect on our results of operations or the financial condition of the Company.
Current report
$24.8 million increase from the acquisition of UBP;
Current report
$1.0 million decrease from disposition of properties.
Current report
$8.2 million increase from the acquisition of UBP; and
Current report
$1.8 million increase driven by the acquisition of UBP; and
Current report
$1.0 million increase in lease termination fee income.
Current report
There were no significant changes in Other property income and Management, transaction, and other fees.
Current report
$14.6 million increase from the acquisition of UBP;
Current report
$1.5 million increase from redevelopment projects becoming operational.
Current report
Property operating expense increased $5.1 million, mainly due to the acquisition of UBP.
Current report
Real estate taxes increased $7.0 million, mainly due to the acquisition of UBP.
Current report
Other operating expenses increased $1.4 million, mainly due to the acquisition of UBP.
Current report
Net investment income decreased $1.0 million primarily driven by lower gains on investments held in the non-qualified deferred compensation plan and our captive insurance company.
Current report
Income attributable to noncontrolling interests increased $0.9 million, mainly due to the acquisition of UBP.
Current report
Results from Operations
Current report
Comparison of the six months ended June 30, 2024 and 2023:
Current report
$49.6 million increase from the acquisition of UBP;
Current report
$2.9 million increase from acquisitions of other operating properties; partially offset by $1.4 million from disposition of operating properties.
Current report
$18.0 million increase from the acquisition of UBP; mainly
Current report
$4.7 million change in Uncollectible lease income primarily driven by elevated collections in 2023 of previously reserved amounts, reducing our expense in the comparative period.
Current report
$1.4 million decrease in Above and below market rent primarily due to:
Current report
$3.3 million decrease from same properties driven by an early tenant move-out in 2023; partially offset by $2.0 million increase from the acquisition of UBP and other operating properties.
Current report
$30.5 million increase from the acquisition of UBP; and
Current report
Property operating expense increased $17.3 million, mainly due to the following:
Current report
$13.0 million increase from the acquisition of UBP;
Current report
Real estate taxes increased $12.8 million, mainly due to the acquisition of UBP.
Current report
Other operating expenses increased $4.5 million, mainly due to the following:
Current report
$3.4 million increase from the acquisition of UBP; and
Current report
During the six months ended June 30, 2024, we recognized gains on sale of $22.5 million mainly from the sale of three operating properties and recognition of two sales type leases.
Current report
Income attributable to noncontrolling interests increased $2.5 million, mainly due to the acquisition of UBP.
Current report
Uncollectible lease income changed by $1.8 million and $4.8 million during the three and six months ended June 30, 2024 and 2023, respectively, primarily driven by elevated collections in 2023 of previously reserved amounts, reducing our expense in the comparable period.
Current report
Real estate taxes increased $1.1 million and $1.3 million during the three and six months ended June 30, 2024 and 2023, respectively, due to an increase in real estate assessments across the portfolio.
Current report
We paid $45.2 million in 2024 to purchase one operating property.
Current report
We collected $3.0 million in short-term note receivables from real estate partners in 2024.
Current report
During 2024, we distributed $6.3 million to limited partners, including proceeds to partially redeem a non-controlling interest in one real estate partnership.
Current report
We drew $158.0 million in net proceeds from our Line,
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (32)
Previous report
Fixed Charge Coverage Ratio is defined as Operating EBITDAre divided by the sum of the gross interest and scheduled mortgage principal paid to our lenders.
Previous report
Nareit EBITDAre is a measure of REIT performance, which the National Association of Real Estate Investment Trusts ("Nareit") defines as net income, computed in accordance with GAAP, excluding (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization, (iv) gains on sales of real estate, (v) impairments of real estate, and (vi) adjustments to reflect the Company's share of unconsolidated partnerships and joint ventures.
Previous report
Operating EBITDAre begins with Nareit EBITDAre and excludes certain non-cash components of earnings derived from straight-line rents and above and below market rent amortization. We provide a reconciliation of Net income to Nareit EBITDAre to Operating EBITDAre.
Previous report
At both March 31, 2024 and December 31, 2023, our Pro-rata net debt and Preferred Stock-to-operating EBITDAre ratio on a trailing 12 month basis was 5.4x.
Previous report
We have $250 million of unsecured debt maturing in June 2024, which we intend to pay off by utilizing the proceeds available from the January 2024 offering noted above.
Previous report
Significant Tenants and Concentrations of Credit Risk
Previous report
$24.8 million increase from acquisition of UBP;
Previous report
$9.8 million increase from acquisition of UBP;
Previous report
$0.4 million increase from rents commencing at development properties and the acquisition of other operating properties.
Previous report
$3.1 million decrease in lease termination fees, partially offset by
Previous report
$15.9 million increase from acquisition of UBP;
Previous report
$0.6 million increase from properties under development becoming available for occupancy in the current quarter; partially offset by
Previous report
$2.4 million decrease from same properties, primarily driven by redevelopment projects.
Previous report
Property operating expense increased $12.3 million, as follows:
Previous report
$7.0 million increase from acquisition of UBP;
Previous report
$0.7 million related to acquisitions of other operating properties.
Previous report
Real estate taxes increased $5.8 million, mainly due to acquisition of UBP.
Previous report
Other operating expenses (income) increased $3.1 million, mainly due to the following:
Previous report
$1.7 million increase from acquisition of UBP; and
Previous report
There were no significant changes in Net investment income.
Previous report
Income attributable to noncontrolling interests increased $1.7 million, mainly due to acquisition of UBP.
Previous report
Uncollectible lease income changed by $2.9 million primarily driven by higher collections in 2023 of previously reserved amounts which have continued in 2024, but to a lesser degree.
Previous report
Same Property Roll-forward:
Previous report
Our same property pool includes the following property count, Pro-rata GLA, and changes therein:
Previous report
SF adjustments arising from re-measurements or redevelopments.
Previous report
We had $122.0 million in net repayments on our Line,
Previous report
$7.6 million for repaying one mortgage loan ahead of maturity,
Previous report
$30.0 million in borrowings from our Line to manage working capital needs,
Previous report
Includes investments in real estate partnerships acquired as part of the UBP acquisition, which was effective on August 18, 2023.
Previous report
Environmental Matters
Previous report
We are subject to numerous environmental laws and regulations, which primarily pertain to chemicals historically used by certain current and former dry cleaning and gas station tenants and the existence of asbestos in older shopping centers. We believe that the relatively few tenants who currently operate dry cleaning plants or gas stations do so in accordance with current laws and regulations. Generally, we endeavor to require tenants to remove dry cleaning plants from our shopping centers or convert them to more environmentally friendly systems, in accordance with the terms of our leases. We carry an environmental insurance policy for certain third-party liabilities and, in certain circumstances, remediation costs on shopping centers for currently unknown contamination. We have also secured environmental insurance policies, where appropriate, on a relatively small number of specific properties with known contamination, in order to mitigate our environmental risk. We monitor the shopping centers containing environmental issues and in certain cases voluntarily remediate the sites. We also have legal obligations to remediate certain sites and we are in the process of doing so.
Previous report
As of March 31, 2024, we had accrued liabilities of $15.9 million for our consolidated environmental remediation, including our Investments in real estate partnerships. We believe that the ultimate remediation of currently known environmental matters will not have a material effect on our financial position, cash flows, or results of operations. We can give no assurance that existing environmental studies on our shopping centers have revealed all potential environmental contamination; that our estimate of liabilities will not change as more information becomes available; that any previous owner, occupant or tenant did not create any material environmental condition not known to us; that the current environmental condition of the shopping centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; or that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to us.
Reworded paragraphs (87)
Previous wording
Adjusted Funds From Operations ("AFFO")is an additional performance measure used by Regency that reflects cash available to fund the Company’s business needs and distribution to shareholders. AFFO is calculated by adjusting Core Operating Earnings ("COE") for (i) capital expenditures necessary to maintain and lease the Company’s portfolio of properties, (ii) debt cost and derivative adjustments and (iii) stock-based compensation.
Current wording
Adjusted Funds From Operations ("AFFO")is an additional performance measure we use that reflects cash available to fund the Company’s business needs and distribution to shareholders. AFFO is calculated by adjusting Core Operating Earnings ("COE") for (i) capital expenditures necessary to maintain and lease our portfolio of properties, (ii) debt cost and derivative adjustments and (iii) stock-based compensation.
Previous wording
Core Operating Earningsis an additional performance measure we use because the computation of Nareit Funds from Operations ("Nareit FFO") includes certain non-comparable items that affect our period-over-period performance. Core Operating Earnings excludes from Nareit FFO: (i) transaction related income or expenses, (ii) gains or losses from the early extinguishment of debt, (iii) certain non-cash components of earnings derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization, and (iv) other amounts as they occur. We provide reconciliations of both Net Income Attributable to Common Shareholders to Nareit FFO and Nareit FFO to Core Operating Earnings.
Current wording
Core Operating Earningsis an additional performance measure we use because the computation of National Association of Real Estate Investment Trusts Funds from Operations ("Nareit FFO") includes certain non-comparable items that affect our period-over-period performance. Core Operating Earnings excludes from Nareit FFO: (i) transaction related income or expenses, (ii) gains or losses from the early extinguishment of debt, (iii) certain non-cash components of earnings derived from straight-line rents, above and below market rent amortization, and debt and derivative mark-to-market amortization, and (iv) other amounts as they occur. We provide reconciliations of both Net Income Attributable to Common Shareholders to Nareit FFO and Nareit FFO to Core Operating Earnings.
Previous wording
The Pro-rata information is prepared on a basis consistent with the comparable consolidated amounts and is intended to more accurately reflect our proportionate economic interest in the assets, liabilities, and operating results of properties in our portfolio. We do not control the unconsolidated investment partnerships, and the Pro-rata presentations of the assets and liabilities, and revenues and expenses do not represent our legal claim to such items. The partners are entitled to profit or loss allocations and distributions of cash flows according to the operating agreements, which generally provide for such allocations according to their invested capital. Our share of invested capital establishes the ownership interests we use to prepare our Pro-rata share.
Current wording
The Pro-rata information is prepared on a basis consistent with the comparable consolidated amounts and is intended to more accurately reflect our proportionate economic interest in the assets, liabilities, and operating results of properties in our portfolio. We do not control the unconsolidated real estate partnerships, and the Pro-rata presentations of the assets and liabilities, and revenues and expenses do not represent our legal claim to such items. The partners are entitled to profit or loss allocations and distributions of cash flows according to the operating agreements, which generally provide for such allocations according to their invested capital. Our share of invested capital establishes the ownership interests we use to prepare our Pro-rata share.
Previous wording
We are a preeminent national owner, operator, and developer of neighborhood and community shopping centers predominantly located in suburban trade areas with compelling demographics. As of March 31, 2024, we had full or partial ownership interests in 482 retail properties. Our properties are high-quality neighborhood and community shopping centers primarily anchored by market leading grocers and principally located in suburban markets within the country's most desirable metro areas and contain approximately 57.0 million square feet ("SF") of gross leasable area ("GLA"). Our mission is to create thriving environments for retailers and service providers to connect with surrounding neighborhoods and communities. Our vision is to elevate quality of life as an integral thread in the fabric of our communities. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect with their neighborhoods, communities, and customers.
Current wording
We are a preeminent national owner, operator, and developer of neighborhood and community shopping centers predominantly located in suburban trade areas with compelling demographics. As of June 30, 2024, we had full or partial ownership interests in 481 retail properties. Our properties are high-quality neighborhood and community shopping centers primarily anchored by market leading grocers and principally located in suburban markets within the country's most desirable metro areas, and contain approximately 56.9 million square feet ("SF") of gross leasable area ("GLA"). Our mission is to create thriving environments for retailers and service providers to connect with surrounding neighborhoods and communities. Our vision is to elevate quality of life as an integral thread in the fabric of our communities. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect with their neighborhoods, communities, and customers.
Previous wording
During the three months ended March 31, 2024, we had Net income attributable to common shareholders of $106.4 million as compared to $97.3 million during the three months ended March 31, 2023.
Current wording
During the six months ended June 30, 2024, we had Net income attributable to common shareholders of $205.6 million as compared to $184.1 million during the six months ended June 30, 2023.
Previous wording
Our Pro-rata same property NOI, excluding termination fees, grew 1.4%, as compared to the three months ended March 31, 2023, primarily attributable to improvements in base rent from increases in year over year occupancy rates, contractual rent steps in existing leases, and positive rent spreads on comparable new and renewal leases.
Current wording
Our Pro-rata same property NOI, excluding termination fees, grew 2.1%, as compared to the six months ended June 30, 2023, primarily attributable to improvements in base rent from increases in year over year occupancy rates, contractual rent steps in existing leases, and positive rent spreads on comparable new and renewal leases.
Previous wording
We executed 461 new and renewal leasing transactions representing 2.0 million Pro-rata SF with positive rent spreads of 8.5% during the three months ended March 31, 2024, compared to 405 leasing transactions representing 1.1 million Pro-rata SF with positive rent spreads of 5.5% during the three months ended March 31, 2023. Rent spreads are calculated on all executed leasing transactions for comparable Retail Operating Property spaces, including spaces vacant greater than 12 months.
Current wording
We executed 984 new and renewal leasing transactions representing 4.1 million Pro-rata SF with positive rent spreads of 8.9% during the six months ended June 30, 2024, compared to 842 leasing transactions representing 3.0 million Pro-rata SF with positive rent spreads of 9.2% during the six months ended June 30, 2023. Rent spreads are calculated on all executed leasing transactions for comparable Retail Operating Property spaces, including spaces vacant greater than 12 months.
Previous wording
At March 31, 2024, December 31, 2023, and March 31, 2023 our total property portfolio was 95.0%, 95.1%, and 94.9% leased, respectively. At March 31, 2024, December 31, 2023, and March 31, 2023 our same property portfolio was 95.8%, 95.7%, and 95.1% leased, respectively.
Current wording
At June 30, 2024, December 31, 2023, and June 30, 2023 our total property portfolio was 95.0%, 95.1%, and 94.6% leased, respectively. At June 30, 2024, December 31, 2023, and June 30, 2023 our same property portfolio was 95.8%, 95.7%, and 95.2% leased, respectively.
Previous wording
Estimated Pro-rata project costs of our current in process development and redevelopment projects totaled $547.1 million at March 31, 2024, compared to $468.1 million at December 31, 2023.
Current wording
Estimated Pro-rata project costs of our current in process development and redevelopment projects totaled $577.6 million at June 30, 2024, compared to $468.1 million at December 31, 2023.
Previous wording
Development and redevelopment projects completed during 2024 represented $3.1 million of estimated net project costs, with an average stabilized yield of 9.8%.
Current wording
Development and redevelopment projects completed during 2024 represented $14.8 million of estimated net project costs, with an average stabilized yield of 10.6%.
Previous wording
In February, Regency received a credit rating upgrade to A3 with a stable outlook by Moody's Investors Service.
Current wording
Regency received a credit rating upgrade to A3 with a stable outlook from Moody's Investors Service.
Previous wording
On January 8, 2024, Regency priced a public offering of $400 million of senior unsecured debt due in 2034, with a coupon of 5.250% . The Company intends to use the net proceeds of the offering to reduce the outstanding balance on its line of credit and for general corporate purposes, including, but not limited to, the future repayment of outstanding debt. We invested a portion of the net proceeds in certificates of deposit and within short-term U.S. Treasury funds until such time as the proceeds are required.
Current wording
On January 8, 2024, Regency priced a public offering of $400 million of senior unsecured notes due in 2034, with a coupon of 5.250% . The Company used a portion of the net proceeds to reduce the outstanding balance on its line of credit and invested the remaining net proceeds in certificates of deposit and short-term U.S. Treasury mutual funds until required for general corporate purposes including the repayment of outstanding debt, as further described below.
Previous wording
We have $196.1 million of secured loan maturities during the next 12 months, including maturities within our unconsolidated real estate partnerships, which we intend to refinance or pay-off as they mature.
Current wording
We have $230.7 million of secured loans which are to mature during the next 12 months, including maturities within our unconsolidated real estate partnerships, which we intend to refinance or pay-off as they mature.
Previous wording
At March 31, 2024, we had $1.46 billion available on the Line, which expires March 23, 2028 with the option to extend the maturity for two additional six-month periods.
Current wording
At June 30, 2024, we had $1.18 billion available on the Line, which expires March 23, 2028 unless we exercise the available options to extend the maturity for two additional six-month periods, in which case the term will be extended in accordance with any such option exercise.
Previous wording
The weighted-average base rent PSF on signed Shop Space leases during 2024 was $37.40 PSF, which is higher than the weighted average annual base rent PSF of all Shop Space leases due to expire during the next 12 months of $33.81 PSF. New and renewal rent spreads, compared to prior rents on these same spaces leased, were positive at 8.5% for the three months ended March 31, 2024, compared to 5.5% for the three months ended March 31, 2023.
Current wording
The weighted-average base rent PSF on signed Shop Space leases during 2024 was $37.70 PSF, which is higher than the weighted average annual base rent PSF of all Shop Space leases due to expire during the next 12 months of $35.05 PSF. New and renewal rent spreads, compared to prior rents on these same spaces leased, were positive at 8.9% for the six months ended June 30, 2024, compared to 9.2% for the six months ended June 30, 2023.
Previous wording
We seek to reduce our operating and leasing risks through geographic diversification of our properties and by avoiding dependence on any single property, market, or tenant. Based on percentage of annualized base rent, the following table summarizes our most significant tenants, of which four of the top five are grocers:
Current wording
We seek to reduce our operating and leasing risks by avoiding dependence on any single tenant. Based on percentage of annualized base rent, the following table summarizes our most significant tenants, of which four of the top five are grocers:
Previous wording
Our management team devotes significant time to researching and monitoring consumer preferences and trends, customer shopping behaviors, changes in delivery methods, shifts to e-commerce, and changing demographics in order to anticipate the challenges and opportunities impacting our industry. We seek to mitigate these potential impacts through maintaining a high quality portfolio, diversifying our tenant mix, replacing less successful tenants with stronger operators, anchoring our centers with market leading grocery stores that drive customer traffic, and investing in suburban trade areas with compelling demographic populations benefiting from high levels of disposal income. The potential for a recession and the severity and duration of any economic downturn could negatively impact our existing tenants and their ability to continue to meet their lease obligations.
Current wording
Our management team devotes significant time to researching and monitoring consumer preferences and trends, customer shopping behaviors, changes in delivery methods, shifts to e-commerce, and changing demographics in order to anticipate the challenges and opportunities impacting our industry. We seek to mitigate these potential impacts through maintaining a high quality portfolio, diversifying our tenant mix, replacing less successful tenants with stronger operators, anchoring our centers with market leading grocers that drive customer traffic, and investing in suburban trade areas with compelling demographic populations benefiting from high levels of disposal income. The potential for a recession and the severity and duration of any economic downturn could negatively impact our existing tenants and their ability to continue to meet their lease obligations.
Previous wording
Although base rent is derived from long-term lease contracts, tenants that file for bankruptcy generally have the legal right to reject any or all of their leases and close related stores. Any unsecured claim we hold against a bankrupt tenant for unpaid rent might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. Additionally, we may incur significant expense to adjudicate our claim and significant downtime to re-lease the vacated space. In the event that a tenant with a significant number of leases in our shopping centers files for bankruptcy and rejects its leases, we could experience a significant reduction in our revenues. Tenants who are currently in bankruptcy and continue to occupy space in our shopping centers represent an aggregate of 0.6% of our Pro-rata annual base rent, which is primarily related to Rite Aid who filed in October 2023.
Current wording
Although base rent is derived from long-term lease contracts, tenants that file for bankruptcy generally have the legal right to reject any or all of their leases and close related stores. Any unsecured claim we hold against a bankrupt tenant for unpaid rent might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims. As a result, in a tenant bankruptcy situation it is likely that we would recover substantially less than the full value of any unsecured claims we hold. Additionally, we may incur significant expense to adjudicate our claim and significant downtime to re-lease the vacated space. In the event that a tenant with a significant number of leases in our shopping centers files for bankruptcy and rejects its leases, we could experience a significant reduction in our revenues. At June 30, 2024, tenants currently in bankruptcy and which continue to occupy space in our shopping centers represent an aggregate of 0.5% of our Pro-rata annual base rent, which is primarily related to the Rite Aid bankruptcy, which was filed in October 2023.
Previous wording
Total lease income increased $44.3 million primarily driven by the following contractually billable components of rent to the tenants per the lease agreements:
Current wording
Total lease income increased $43.4 million primarily driven by the following contractually billable components of rent to the tenants per the lease agreements:
Previous wording
$31.2 million increase from billable Base rent, mainly from the following:
Current wording
$31.5 million increase from billable Base rent, mainly from the following:
Previous wording
$5.6 million net increase from same properties, including:
Current wording
$5.5 million net increase from same properties, including:
Previous wording
$3.8 million net increase due to increases from occupancy, rent steps in existing leases, and positive rental spreads on new and renewal leases; and
Current wording
$3.7 million net increase due to increases from occupancy, rent steps in existing leases, and positive rental spreads on new and renewal leases; and
Previous wording
$1.8 million increase due to redevelopment projects completing and operating; and
Current wording
$1.8 million increase due to redevelopment projects becoming operational;
Previous wording
$1.1 million increase from acquisitions of other operating properties.
Current wording
$1.8 million increase from acquisitions of other operating properties; and
Previous wording
$13.8 million increase from contractual Recoveries from tenants, which represents the tenants' proportionate share of the operating, maintenance, insurance, and real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased, on a net basis, mainly from the following:
Current wording
$10.1 million increase from contractual Recoveries from tenants, which represents the tenants' proportionate share of the operating, maintenance, insurance, and real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased, mainly from the following:
Previous wording
$3.7 million net increase from same properties primarily due to higher operating costs in the current year; and
Current wording
$1.6 million net increase from same properties primarily due to higher expense recovery rates in the current year.
Previous wording
$3.2 million change in Uncollectible lease income primarily driven by the 2023 collections of previously reserved amounts, which have continued in 2024 but to a lesser degree.
Current wording
$1.5 million change in Uncollectible lease income primarily driven by elevated collections in 2023 of previously reserved amounts, reducing our expense in the comparative period.
Previous wording
$1.3 million decrease in Other lease income primarily due to:
Current wording
$2.8 million increase in Other lease income primarily due to:
Previous wording
Depreciation and amortization costs increased $14.9 million, mainly due to the following:
Current wording
Depreciation and amortization costs increased $17.8 million, mainly due to the following:
Previous wording
$0.8 million increase from acquisitions of operating properties;
Current wording
$1.3 million increase from acquisitions of operating properties; and
Previous wording
Interest expense, net increased $6.5 million primarily due to the following:
Current wording
Interest expense, net increased $6.2 million primarily due to the following:
Previous wording
$4.6 million increase related to increased outstanding balance of Notes Payable mainly due to the issued public debt in January 2024;
Current wording
$5.3 million increase related to increased outstanding balance of Notes Payable mainly due to the issued public debt in January 2024;
Previous wording
$4.1 million increase primarily related to loans assumed with the UBP acquisition; partially offset by
Current wording
$4.3 million increase primarily related to loans assumed with the UBP acquisition; partially offset by
Previous wording
During the three months ended March 31, 2024, we recognized gains on sale of $11.4 million mainly from sale of one operating property and recognition of one sales type lease. During the three months ended March 31, 2023, we recognized gains on sale of $0.3 million from one land parcel.
Current wording
During the three months ended June 30, 2024, we recognized gains on sale of $11.1 million mainly from the sale of two operating properties and recognition of one sales type lease.
Previous wording
Total equity in income of investments in real estate partnerships changed as follows:
Current wording
There were no significant changes in Equity in income of investments in real estate partnerships.
Previous wording
$1.2 million increase driven by acquisition of UBP; partially offset by
Current wording
$3.7 million increase driven by acquisition of UBP; partially offset by $2.1 million decrease in lease termination fee income.
Previous wording
$3.0 million increase in Straight-line rent mainly due to:
Current wording
$4.2 million increase in Straight-line rent mainly due to:
Previous wording
$1.8 million increase driven by acquisition of UBP.
Current wording
$2.5 million increase driven by acquisition of UBP;
Previous wording
$0.3 million decrease in same properties.
Current wording
$2.4 million increase related to development properties that commenced operations; partially offset by $0.7 million decrease in same properties.
Previous wording
$2.1 million increase related to developments;
Current wording
$2.1 million increase from acquisitions of operating properties.
Showing the first 40 of 87 pairs. Open the source sections for the rest.
Rearranged current paragraphs (21)
Current report — wording carried from elsewhere
$1.2 million increase in Straight-line rent mainly due to $1.3 million increase driven by the acquisition of UBP.
Current report — wording carried from elsewhere
$3.6 million increase in interest income due to the short term investments of excess cash into commercial deposits and U.S. treasury mutual funds.
Current report — wording carried from elsewhere
Revenues changed as summarized in the following table:
Current report — wording carried from elsewhere
Total lease income increased $87.7 million primarily driven by the following contractually billable components of rent to the tenants per the lease agreements:
Current report — wording carried from elsewhere
$62.7 million increase from billable Base rent, mainly from the following:
Current report — wording carried from elsewhere
$11.0 million net increase from same properties, including:
Current report — wording carried from elsewhere
$7.6 million net increase due to increases from occupancy, rent steps in existing leases, and positive rental spreads on new and renewal leases; and
Current report — wording carried from elsewhere
$3.4 million increase due to redevelopment projects that commenced operations; and
Current report — wording carried from elsewhere
$23.9 million increase from contractual Recoveries from tenants, which represents the tenants' proportionate share of the operating, maintenance, insurance, and real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased, mainly from the following:
Current report — wording carried from elsewhere
$5.3 million increase primarily due to higher operating costs in the current year coupled with higher expense recovery rates.
Current report — wording carried from elsewhere
$1.5 million increase in Other lease income primarily due to:
Current report — wording carried from elsewhere
Changes in our operating expenses are summarized in the following table:
Current report — wording carried from elsewhere
Depreciation and amortization costs increased $32.7 million, mainly due to the following:
Current report — wording carried from elsewhere
There were no significant changes in General and administrative expenses.
Current report — wording carried from elsewhere
The following table presents the components of other expense, net:
Current report — wording carried from elsewhere
Interest expense, net increased $12.7 million primarily due to the following:
Current report — wording carried from elsewhere
$9.9 million increase related to increased outstanding balance of Notes Payable mainly due to the issued public debt in January 2024;
Current report — wording carried from elsewhere
$8.4 million increase primarily related to loans assumed with the UBP acquisition; partially offset by
Current report — wording carried from elsewhere
There were no significant changes in Equity in income of investments in real estate partnerships.
Current report — wording carried from elsewhere
The following represents the remaining components that comprise Net income attributable to common shareholders and unit holders:
Current report — wording carried from elsewhere
The $6.8 million increase in Preferred stock dividends is related to the preferred stock issued in connection with UBP acquisition.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
During the three months ended March 31, 2024:
Previous report — wording carried elsewhere
$1.0 million increase from higher claims expense in our captive insurance company; and
Previous report — wording carried elsewhere
We do not consider non-GAAP measures as an alternative to financial measures determined in accordance with GAAP, rather they supplement GAAP measures by providing additional information we believe to be useful to our shareholders. The principal limitation of these non-GAAP measures is they may exclude significant expense and income items that are required by GAAP to be recognized in our Consolidated Financial Statements. In addition, they reflect the exercise of management's judgment about which expense and income items are excluded or included in determining these non-GAAP measures. In order to compensate for these limitations, reconciliations of the non-GAAP measures we use to their most directly comparable GAAP measures are provided, including as set forth below. Non-GAAP measures should not be relied upon in evaluating the financial condition, results of operations, or future prospects.