Regency Centers Corporation

Greetings and welcome to the Regency Centers Corporation second quarter 2020 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Laura Clark, Senior Vice President, Capital Markets for Regency Centers. Thank you. You may begin.

Good morning, and welcome to Regency's second quarter 2020 earnings conference call. Joining me today are Lisa Palmer, President and Chief Executive Officer, Mike Moss, Chief Financial Officer, Mack Chandler, Chief Investment Officer, Jim Thompson, Chief Operating Officer, and Chris Levitt, SEP and Treasurer. As a reminder, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risk and uncertainty. Factors and risks that could cause actual results to differ materially from these statements are included in our presentation today and in our filings with the SEC. The discussion today also contains non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, all of which are posted on our Investor Relations website. Please note that we have provided additional COVID-19 disclosure in this quarter's supplemental package and have also posted a presentation on our website with additional information regarding COVID-19 business updates and impacts. Lisa?

Thank you, Lara. Good morning, everyone. I hope you're all doing as well as possible. First, I just want to open and acknowledge and thank the amazing Regency team. I'm extremely proud and grateful for the dedication and commitment our team has demonstrated during this incredibly challenging time. As we've continued to navigate through the last several months, the entire Regency team has prioritized the well-being of their fellow team members, our tenants, and the people in the communities that our properties serve, while also making great progress in assisting tenants with successful reopenings, improved rent collections, and rent deferral negotiations. As states and markets have lifted restrictions over these last few months, we've been encouraged by the success that our tenants have experienced. Our base rent collections for the second quarter, including executed deferral agreements, was 77% and nearly 80% in July. We've seen firsthand that as tenants have been able to reopen, consumers are eager to return to some sense of what was once normal, and that means resuming some of their prior shopping behaviors. Despite the progress Regency and our tenants have made, we are keenly aware that there's still a lot of uncertainty ahead. It is so difficult to predict the future, and we know that this situation will continue to evolve and may be more challenging as this disruption is even more prolonged. We don't know for how long the virus will continue to spread without an effective treatment or vaccine. We can't predict how resilient consumers will be or how tenants will be able to adapt and innovate. or some tenants will need additional support in order to survive. But what we do know as we look towards the future, we are certain of Regency's combination of unequaled strategic advantages that we have worked to build over time. This combination affords us the opportunity to withstand this difficult time, and I'm confident that we will emerge well-positioned for future success. The quality of our geographically diverse portfolio comprised of necessity-based retailers has never been more important than it is today. Our development program with a pipeline of exciting value add projects is structured to provide timing and financial flexibility. Our highly engaged team achieving great results while doing business the right way. And perhaps most importantly in today's environment, a balance sheet and liquidity position that was rock solid entering the pandemic, enabling us to absorb the body blows that we've endured the past four months. Given our strong balance sheet and belief that our rent collections will continue to improve over time, our board again declared payment of our quarterly dividend at the same level. Our ability to continue the dividend at the current level is an output of a strong starting position of a very low payout ratio, combined with actual results that, while certainly not up to our historic performance levels, appear to not only have stabilized, but to also be trending in a positive direction. Working closely with our board, we will monitor our financial metrics and projections in addition to economic and industry trends, and we will make future dividend decisions based on the facts and circumstances at that time. Before handing over to Jim, I'd like to touch on Regency's continued commitment to corporate responsibility. In addition to our strategic business advantages, Regency has always had a strong set of core values that have guided our business strategy since we were founded over 50 years ago. Among those core values is a commitment to do what is right for the environment, our people, our communities, and our company. By doing what is right in each of these areas, we are effectively managing risks and ensuring the success and sustainability of our business. As I hope you saw in our recently published annual corporate responsibility report, implementation of these initiatives occurs across all departments at Regency and is ingrained in our culture. I am confident that this commitment to do what is right, along with the combination of our unequaled strategic advantages, will continue to position Regency to be a leader in the shopping center sector going forward. Jim?