Regency Centers Corporation

Greetings, and welcome to the Regency Centers Corporation First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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. It is now my pleasure to introduce your host, Christy McElroy, Senior Vice President, Capital Markets, Thank you. You may begin.

Good morning, and welcome to Regency Center's first quarter 2024 earnings conference call. Joining me today are Lisa Palmer, President and Chief Executive Officer, Mike Moss, Chief Financial Officer, Alan Roth, East Region President and Chief Operating Officer, and Nick Wibbenmeyer, West Region President and Chief Investment Officer. As a reminder, today's discussion may contain forward-looking statements about the company's views of future business and financial performance, including forward earnings guidance and future market conditions. They are based on management's current beliefs and expectations and are subject to various risks and uncertainties. It's possible that actual results may differ materially from those suggested by these forward-looking statements we may make. Factors and risks that could cause actual results to differ materially from these statements may be included in our presentation today and are described in more detail in our filings with the SEC, specifically our most recent Form 10-K and 10-Q filings. In our discussion today, we will also reference certain non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, which are posted on our investor relations website. Please note that we have also posted a presentation on our website with additional information, including disclosures related to forward earnings guidance. Our caution on forward-looking statements also applies to these presentation materials. Lisa?

Thank you, Christy, and good morning, everyone. We had another really solid quarter. in line with our expectations and driven by a continuation of very healthy leasing fundamentals. Robust tenant demand is driving significant leasing activity across all of our shopping centers, and this is evident in an even higher percent lease rate and strong rent growth. With this robust demand and activity, we are poised to accelerate growth into 2025. As you will hear more from Alan, we are having great success quickly releasing space and I will note some of which we've intentionally recaptured, with upgraded merchandising of leading operators and at higher rents. As a result, our pipeline of executed leases is larger than it's ever been, and we look forward to these tenants coming online, propelling our future growth. I'm also really excited about the progress our team has made executing on our value creation pipeline. Sustained development activity over the long term, which creates value and enhances growth, is an important part of our business and is a differentiator for Regency in our sector today. The strength of our platform provides us an unequaled strategic advantage. Our talented and experienced national development team, our relationships with top grocers and retailers, and ready access to capital all are enabling strong execution on an impressive lineup of great in-process projects and continued growth in our pipeline of opportunities. As you'll hear from Nick, following our impressive execution in 2023, with over $250 million of development and redevelopment starts, we expect to drive a similar level of success this year. The benefits from this ramp up in activity will continue to grow as NOI comes online in 2025 and beyond. Importantly, the strength of our balance sheet And our liquidity position is what provides Regency with the ability to sustain a meaningful value creation pipeline through cycles, to remain opportunistic in our capital allocation strategy, and to consistently grow our dividend. And we are really gratified to see this position of strength acknowledged by Moody's with a credit rating upgrade to A3, which occurred in February. We are currently the only REIT in the open-air shopping center sector with an A rating, and and we are already seeing the benefits in our relative bond market pricing further supporting our cost of capital advantage. This is a big accomplishment and a direct result of our team's consistent track record of operational excellence and balance sheet strength over the long term. It's a reflection of what I speak to often, which is what we believe to be Regency's unique and unparalleled combination of strategic advantages that differentiates us from our peers and allows us to drive above average earnings per share, dividend, and free cash flow growth. It's the favorable attributes of our portfolio, including quality tenants and merchandising mix, format, and trade area demographics, driving rent growth and durability of occupancy. It's the expertise of our people and the strength of our operating platform. It's our ability to create value through development and redevelopment consistently over time. It's the strength of our balance sheet, and it's our commitment to corporate responsibility and stakeholder stewardship. High-quality suburban shopping centers, especially with the particular strength of our portfolio and the trade areas in which we operate, will continue to benefit from structural tailwinds that support continued excellent performance and long-term growth of our business. Alan?