REGENCY CENTERS CORP

Regency Centers Corporation is a fully integrated real estate company and self-administered and self-managed real estate investment trust that began its operations as a publicly-traded REIT in 1993. The company's business consists of acquiring, developing, owning, and operating income-producing retail real estate principally located in suburban trade areas with compelling demographics within the United States. Regency has been an S&P 500 Index member since 2017. As of December 31, 2025, the company had full or partial equity ownership interests in 481 ¹ properties, primarily anchored by market leading grocery stores, encompassing approximately 58.4 million square feet ² of gross leasable area. The company's Pro-rata share of this GLA is approximately 50.5 million SF ³, including its share of properties owned through unconsolidated real estate partnerships. The company is a preeminent national owner, operator, and developer of neighborhood and community shopping centers predominantly located in suburban trade areas with compelling demographics.

The company is among the largest owners of shopping centers in the USA based on revenues, number of properties, GLA, and market capitalization. There are numerous companies and individuals engaged in the company's line of business that compete with it in its targeted markets, including grocery store chains that own shopping centers and also anchor some of the company's shopping centers. The company believes its competitive advantages are driven by the market areas in which it operates and the locations of its shopping centers within those trade areas, the quality of its shopping centers including its strategy of maintaining and renovating these centers to its high standards, the compelling demographics surrounding its shopping centers, its relationships with its anchor, shop, and out-parcel tenants, its experienced leadership team and cycle-tested expertise, and its ability to successfully develop, redevelop, and acquire shopping centers.

The company generates revenues by leasing space to necessity, service, convenience, and value-based retailers serving the essential needs of its communities. The company's business consists of acquiring, developing, owning, and operating income-producing retail real estate. The company's portfolio includes properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers. The company also earns fees from property management, asset management, leasing, and other transaction services. The company's goals include owning and managing a portfolio of high-quality neighborhood and community shopping centers anchored primarily by market leading grocers and creating shareholder value by increasing earnings and dividends per share.

As of December 31, 2025, the company had full or partial equity ownership interests in 481 ⁴ properties, encompassing approximately 58.4 million square feet ⁵ of gross leasable area. The company's Pro-rata share of this GLA is approximately 50.5 million SF ⁶. The consolidated portfolio of properties as of December 31, 2025 consisted of 391 ⁷ properties with 46,102 ⁸ thousand GLA and a percent leased of 96.0% ⁹. The weighted average annual effective rent for the consolidated portfolio of properties, net of tenant concessions, is $26.55 ¹⁰ per square foot as of December 31, 2025. The unconsolidated portfolio of properties as of December 31, 2025 consisted of 90 ¹¹ properties with 12,275 ¹² thousand GLA and a percent leased of 96.8% ¹³. The weighted average annual effective rent for the unconsolidated portfolio of properties, net of tenant concessions, is $25.87 ¹⁴ per square foot as of December 31, 2025.

The company's top tenants based upon a percentage of total annualized base rent as of December 31, 2025 include Publix with 2.9% ¹⁵ of annualized base rent, TJX Companies, Inc. with 2.7% ¹⁶, Albertsons Companies, Inc. with 2.7% ¹⁷, Amazon/Whole Foods with 2.5% ¹⁸, and Kroger Co. with 2.5% ¹⁹. The company's real estate properties located in California, Florida and the New York-Newark-Jersey City core-based statistical area accounted for 24.8% ²⁰, 19.7% ²¹, and 12.6% ²² of the company's annualized base rent, respectively. At December 31, 2025, tenants with fewer than three locations represent approximately 21% ²³ of annualized base rent. At December 31, 2025, 20.2% ²⁴ of the GLA of the company's portfolio is located in the state of California, 21.5% ²⁵ in Florida, and 7.8% ²⁶ in Texas.

During 2025, the company continued to collaborate closely with its tenants to mitigate their operational environmental impacts. The company's target aims to reduce its absolute Scope 1 and 2 GHG emissions by 28% ²⁷ by 2030, measured against a 2019 baseline year, and to achieve net-zero Scope 1 and 2 GHG emissions across all operations by 2050. As of December 31, 2025, the company had 507 ²⁸ employees, including 4 ²⁹ part-time employees. The company presently maintains 27 ³⁰ market offices nationwide, including its corporate headquarters in Jacksonville, Florida. None of the company's employees are represented by a collective bargaining unit.

Total revenues for the fiscal year ended December 31, 2025 were $1,527.5 million ³¹ compared to $1,478.5 million ³² for the fiscal year ended December 31, 2024. Net income attributable to the Parent Company for the fiscal year ended December 31, 2025 was $393.7 million ³³ compared to $373.9 million ³⁴ for the fiscal year ended December 31, 2024. Diluted earnings per share for the fiscal year ended December 31, 2025 was $2.15 ³⁵ compared to $2.05 ³⁶ for the fiscal year ended December 31, 2024.

The company's goals include creating shareholder value by increasing earnings and dividends per share that generate total returns at or near the top of its shopping center peers. Key strategies to achieve the company's goals include generating same property NOI growth that over the long-term consistently ranks at or near the top of its shopping center peers and reinvesting free cash flow and portfolio enhancement disposition proceeds into high-quality developments, redevelopments and acquisitions in a long term accretive manner. The company's investment strategy includes investing in high-quality shopping centers that are leased to market-leading grocers, category-leading anchors, specialty retailers, and/or restaurants located in areas with above average household incomes and population densities.

The company's goals include maintaining an industry leading, disciplined development and redevelopment platform to create exceptional retail centers that deliver favorable returns. The company actively pursues opportunities for new retail development and existing property redevelopment and/or expansion. The company's development and redevelopment activities frequently require various government and other approvals for land use entitlements. The company is subject to risks associated with development and redevelopment projects, including the possibility that the company may be unable to lease newly developed or redeveloped projects to full occupancy on a timely basis, that actual costs of a project may exceed original estimates, and that construction cost increases may reduce investment returns.

The company's goals include supporting its business activities with a conservative capital structure, including a strong balance sheet with sufficient liquidity to meet its capital needs together with a carefully constructed debt maturity profile. Key strategies include maintaining a conservative balance sheet that provides liquidity, financial flexibility and cost-effective funding of investment opportunities, while also managing debt maturities that enable the company to weather economic downturns. The company has approximately $348.3 million ³⁷ and $752.1 million ³⁸ of consolidated fixed rate debt maturing in 2026 and 2027 that it expects to refinance, in whole or part, by accessing the public and/or private debt markets.

The company's capital allocation strategy includes reinvesting free cash flow and portfolio enhancement disposition proceeds into high-quality developments, redevelopments and acquisitions. The company's ability to continue to pay dividends at current or historical rates or to increase its dividend rate will depend on a number of factors, including its financial condition and results of future operations, the terms of its loan covenants, and its ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates. As of December 31, 2025, less than 2.0% ³⁹ of the company's outstanding debt was variable rate debt not hedged to fixed rate debt.

The company faces risks related to the current economic and geopolitical environment, including that a variety of macroeconomic, political, and geopolitical factors could adversely affect the operating environment for retailers and service providers. These factors include federal budgetary and spending policies, actions taken by the Board of Governors of the Federal Reserve System, inflationary pressures, changes in interest rates, energy price changes, labor availability and shortages, supply chain disruptions, tightening credit markets, decreases in consumer confidence and discretionary spending, increases in unemployment and broader uncertainty in the macroeconomic outlook and capital markets. Prolonged periods of elevated or volatile interest rates may adversely impact the company's cost of borrowing.

The company faces risks related to shifts in retail trends, sales, and delivery methods between brick and mortar stores, e-commerce, home delivery, and curbside pick-up, as well as autonomous delivery systems, which may adversely impact the company's revenues, results of operations, and cash flows. The company's grocer tenants are incorporating e-commerce concepts through third-party delivery platforms, home delivery and curbside pick-up, which could reduce foot traffic at its centers. Autonomous delivery systems, drone deliveries, and robotic fulfillment centers could also reduce the need for strategically located retail space. Changes in customer buying habits and shopping trends may also impact the profitability and financial condition of retailers that do not adapt to changes in market conditions.

The company's business is significantly influenced by overall economic conditions and consumer spending in the United States, and a variety of macroeconomic, political, and geopolitical factors could adversely affect the operating environment for retailers and service providers. Prolonged periods of elevated or volatile interest rates may adversely impact the company's cost of borrowing, and as of December 31, 2025, less than 2.0% ⁴⁰ of the company's outstanding debt was variable rate debt not hedged to fixed rate debt. The company has approximately $348.3 million ⁴¹ and $752.1 million ⁴² of consolidated fixed rate debt maturing in 2026 and 2027 that it expects to refinance. Shifts in retail trends between brick and mortar stores and e-commerce may adversely impact the company's revenues, and at December 31, 2025, tenants with fewer than three locations represent approximately 21% ⁴³ of annualized base rent, making the company vulnerable to the success of these local tenants. The company's properties are concentrated in California, Florida, and the New York-Newark-Jersey City area, which accounted for 24.8% ⁴⁴, 19.7% ⁴⁵, and 12.6% ⁴⁶ of annualized base rent, respectively, and at December 31, 2025, 20.2% ⁴⁷ of the GLA of the company's portfolio is located in California, 21.5% ⁴⁸ in Florida, and 7.8% ⁴⁹ in Texas, exposing the company to risks from natural disasters and climate change in these areas.

Management's message emphasizes the company's mission to create thriving environments for retailers and service providers to connect with surrounding neighborhoods and communities, and its vision to elevate quality of life as an integral thread in the fabric of its communities. The company's goals are to own and manage a portfolio of high-quality neighborhood and community shopping centers anchored primarily by market leading grocers, create shareholder value by increasing earnings and dividends per share that generate total returns at or near the top of its shopping center peers, maintain an industry leading, disciplined development and redevelopment platform, and support its business activities with a conservative capital structure. Key strategies include generating same property NOI growth that over the long-term consistently ranks at or near the top of its shopping center peers, reinvesting free cash flow and portfolio enhancement disposition proceeds into high-quality developments, redevelopments and acquisitions, maintaining a conservative balance sheet, responsibly pursuing investor and business-driven corporate responsibility practices, and attracting, retaining, and engaging an exceptional team.