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REGENCY CENTERS CORP - Annual Report: 2018 (Form 10-K)

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018
or
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             

Commission File Number 1-12298 (Regency Centers Corporation)
Commission File Number 0-24763 (Regency Centers, L.P.)

REGENCY CENTERS CORPORATION
REGENCY CENTERS, L.P.
(Exact name of registrant as specified in its charter)
FLORIDA (REGENCY CENTERS CORPORATION)
 regcover10k123116a07.jpg
59-3191743
DELAWARE (REGENCY CENTERS, L.P.)
59-3429602
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
One Independent Drive, Suite 114
Jacksonville, Florida 32202
(904) 598-7000
(Address of principal executive offices) (zip code)
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Regency Centers Corporation
Title of each class
 
Name of each exchange on which registered
Common Stock, $.01 par value
 
The Nasdaq Stock Market LLC
Regency Centers, L.P.
Title of each class
 
Name of each exchange on which registered
None
 
N/A
________________________________
Securities registered pursuant to Section 12(g) of the Act:
Regency Centers Corporation: None
Regency Centers, L.P.: Units of Partnership Interest
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Regency Centers Corporation    YES    x    NO    o    Regency Centers, L.P.    YES    x    NO    o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act
Regency Centers Corporation    YES    o    NO    x    Regency Centers, L.P.    YES    o    NO    x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Regency Centers Corporation    YES    x    NO    o    Regency Centers, L.P.    YES    x    NO    o



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Regency Centers Corporation    YES    x    NO    o    Regency Centers, L.P.    YES    x    NO    o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Regency Centers Corporation    o    Regency Centers, L.P    o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Regency Centers Corporation:
Large accelerated filer
x
Accelerated filer
o
Emerging growth company
o
Non-accelerated filer
o
Smaller reporting company
o
 
 
Regency Centers, L.P.:
Large accelerated filer
o
Accelerated filer
x
Emerging growth company
o
Non-accelerated filer
o
Smaller reporting company
o
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Regency Centers Corporation    YES    o    NO    o    Regency Centers, L.P.    YES    o    NO    o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Regency Centers Corporation    YES    o    NO    x    Regency Centers, L.P.    YES    o    NO    x
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrants' most recently completed second fiscal quarter.
Regency Centers Corporation    $10.4 billion    Regency Centers, L.P.    N/A
The number of shares outstanding of the Regency Centers Corporation’s common stock was 167,506,148 as of February 13, 2019.
Documents Incorporated by Reference
Portions of Regency Centers Corporation's proxy statement in connection with its 2019 Annual Meeting of Stockholders are incorporated by reference in Part III.
 





EXPLANATORY NOTE
This report combines the annual reports on Form 10-K for the year ended December 31, 2018 of Regency Centers Corporation and Regency Centers, L.P. Unless stated otherwise or the context otherwise requires, references to “Regency Centers Corporation” or the “Parent Company” mean Regency Centers Corporation and its controlled subsidiaries; and references to “Regency Centers, L.P.” or the “Operating Partnership” mean Regency Centers, L.P. and its controlled subsidiaries. The term “the Company”, "Regency Centers" or “Regency” means the Parent Company and the Operating Partnership, collectively.
The Parent Company is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. The Operating Partnership's capital includes general and limited common Partnership Units (“Units”). As of December 31, 2018, the Parent Company owned approximately 99.8% of the Units in the Operating Partnership. The remaining limited Units are owned by investors. As the sole general partner of the Operating Partnership, the Parent Company has exclusive control of the Operating Partnership's day-to-day management.
The Company believes combining the annual reports on Form 10-K of the Parent Company and the Operating Partnership into this single report provides the following benefits:
Enhances investors' understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
Eliminates duplicative disclosure and provides a more streamlined and readable presentation; and
Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
Management operates the Parent Company and the Operating Partnership as one business. The management of the Parent Company consists of the same individuals as the management of the Operating Partnership. These individuals are officers of the Parent Company and employees of the Operating Partnership.
The Company believes it is important to understand the key differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its ownership of partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership. Except for $500 million of unsecured public and private placement debt, the Parent Company does not hold any indebtedness, but guarantees all of the unsecured debt of the Operating Partnership. The Operating Partnership is also the co-issuer and guarantees the $500 million of unsecured public and private placement debt of the Parent Company. The Operating Partnership holds all the assets of the Company and retains the ownership interests in the Company's joint ventures. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates all remaining capital required by the Company's business. These sources include the Operating Partnership's operations, its direct or indirect incurrence of indebtedness, and the issuance of partnership units.
Stockholders' equity, partners' capital, and noncontrolling interests are the main areas of difference between the consolidated financial statements of the Parent Company and those of the Operating Partnership. The Operating Partnership's capital includes general and limited common Partnership Units. The limited partners' units in the Operating Partnership owned by third parties are accounted for in partners' capital in the Operating Partnership's financial statements and outside of stockholders' equity in noncontrolling interests in the Parent Company's financial statements.
In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections in this report that separately discuss the Parent Company and the Operating Partnership, including separate financial statements, controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company.
As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have assets other than its investment in the Operating Partnership. Therefore, while stockholders' equity and partners' capital differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements.





TABLE OF CONTENTS
 
Item No.
 
Form 10-K
Report Page
 
 
 
 
PART I
 
 
 
 
1.
 
 
 
1A.
 
 
 
1B.
 
 
 
2.
 
 
 
3.
 
 
 
4.
 
 
 
 
PART II
 
 
 
 
5.
 
 
 
6.
 
 
 
7.
 
 
 
7A.
 
 
 
8.
 
 
 
9.
 
 
 
9A.
 
 
 
9B.
 
 
 
 
PART III
 
 
 
 
10.
 
 
 
11.
 
 
 
12.
 
 
 
13.
 
 
 
14.
 
 
 
 
PART IV
 
 
 
 
15.
 
 
 
 
SIGNATURES
 
 
 
 
16.






Forward-Looking Statements
In addition to historical information, information in this Form 10-K contains forward-looking statements as defined under federal securities laws. These forward-looking statements include statements about anticipated changes in our revenues, the size of our development and redevelopment program, earnings per share and unit, returns and portfolio value, and expectations about our liquidity. These statements are based on current expectations, estimates and projections about the real estate industry and markets in which the Company operates, and management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Known risks and uncertainties are described further in the Item 1A. Risk Factors below. The following discussion should be read in conjunction with the accompanying Consolidated Financial Statements and Notes thereto of Regency Centers Corporation and Regency Centers, L.P. appearing elsewhere herein. We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or uncertainties after the date hereof or to reflect the occurrence of uncertain events.
PART I
Item 1. Business
Regency Centers began its operations as a publicly-traded REIT in 1993, and, as of December 31, 2018, had full or partial ownership interests in 425 properties primarily anchored by market leading grocery stores. Our properties are principally located in affluent and infill trade areas of the United States, and contain 53.6 million square feet ("SF") of gross leasable area ("GLA"). Our ownership share of this GLA is 43.4 million square feet, including our share of the partially owned properties. All of our operating, investing, and financing activities are performed through the Operating Partnership, our wholly-owned subsidiaries, and through our co-investment partnerships.
On March 1, 2017, Regency completed its merger with Equity One Inc. ("Equity One"), whereby Equity One merged with and into Regency, with Regency continuing as the surviving public company. As part of the merger, Regency acquired 121 properties representing 16.0 million SF of GLA, including 8 properties held through co-investment partnerships.
Our mission is to be the preeminent national owner, operator, and developer of shopping centers connecting outstanding retailers and service providers with surrounding neighborhoods and communities. Our goals are to:

Own and manage a portfolio of high-quality neighborhood and community shopping centers anchored by market leading grocers and located in affluent suburban and near urban trade areas in the country’s most desirable metro areas. We expect that this combination will produce highly desirable and attractive centers with best-in-class retailers. These centers should command higher rental and occupancy rates resulting in excellent prospects to grow net operating income ("NOI");

Maintain an industry leading and disciplined development and redevelopment platform to deliver exceptional retail centers at higher returns as compared to acquisitions;

Support our business activities with a strong balance sheet; and

Engage a talented, dedicated team of employees, who are guided by Regency’s strong values and special culture, which are aligned with shareholder interests.
Key strategies to achieve our goals are to:

Increase earnings per share and dividends and generate total shareholder returns at or near the top of our shopping center peers.

Sustain same property NOI growth at or near the top of our shopping center peers;

Develop and redevelop high quality shopping centers at attractive returns on investment;

Maintain a conservative balance sheet providing financial flexibility to cost effectively fund investment opportunities and debt maturities on a favorable basis, and to weather economic downturns; and

Attract and motivate an exceptional team of employees who operate efficiently and are recognized as industry leaders.


1



Corporate Responsibility
Regency’s vision is to be the preeminent national owner, operator and developer of shopping centers, connecting outstanding retailers and service providers with its neighborhoods and communities while practicing best-in-class corporate responsibility. Our corporate responsibility report highlights our commitment to stakeholders and the critical role Regency's core values have on how we practice corporate responsibility. We are committed to transparent reporting on sustainability and corporate responsibility efforts in accordance with the guidelines of the Global Reporting Initiative. A copy of our corporate responsibility report is available on our website, www.regencycenters.com.
Sustainability
We believe sustainability is in the best interest of our tenants, investors, employees, and the communities in which we operate and are committed to reducing our environmental impact, including energy and water use, greenhouse gas emissions, and waste. We believe this commitment is not only the right thing to do, but also supports the Company in achieving key strategic objectives in operations and development. We are committed to transparency with regard to our sustainability performance, risks and opportunities, and will continue to enhance disclosure using industry accepted reporting frameworks. More information about our sustainability strategy, goals, performance, and formal disclosures are available on our website at www.regencycenters.com.
Competition
We are among the largest owners of shopping centers in the nation based on revenues, number of properties, GLA, and market capitalization. There are numerous companies and individuals engaged in the ownership, development, acquisition, and operation of shopping centers that compete with us in our targeted markets, including grocery store chains that also anchor some of our shopping centers. This results in competition for attracting tenants, as well as the acquisition of existing shopping centers and new development sites. We believe that our competitive advantages are driven by:
our locations within our market areas;
the design and high quality of our shopping centers;
the strong demographics surrounding our shopping centers;
our relationships with our anchor tenants and our side-shop and out-parcel retailers;
our practice of maintaining and renovating our shopping centers; and
our ability to source and develop new shopping centers.
Employees
Our corporate headquarters are located at One Independent Drive, Suite 114, Jacksonville, Florida. We presently maintain 22 market offices nationwide, including our corporate headquarters, where we conduct management, leasing, construction, and investment activities. We have 446 employees throughout the United States and we believe that our relations with our employees are good.
Compliance with Governmental Regulations
Under various federal, state and local laws, ordinances and regulations, we may be liable for the cost to remove or remediate certain hazardous or toxic substances at our shopping centers. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of the hazardous or toxic substances. The cost of required remediation and the owner's liability for remediation could exceed the value of the property and/or the aggregate assets of the owner. The presence of such substances, or the failure to properly remediate such substances, may adversely affect our ability to sell or lease the property or borrow using the property as collateral. Although we have a number of properties that could require or are currently undergoing varying levels of environmental remediation, known environmental remediation is not currently expected to have a material financial impact on us due to insurance programs designed to mitigate the cost of remediation, various state-regulated programs that shift the responsibility and cost to the state, and existing accrued liabilities for remediation.

2



Executive Officers
Our executive officers are appointed each year by our Board of Directors. Each of our executive officers has been employed by us for more than five years.
Name
Age
Title
Executive Officer in Position Shown Since
Martin E. Stein, Jr.
66
Chairman and Chief Executive Officer
1993
Lisa Palmer
51
President and Chief Financial Officer
2016 (1)
Dan M. Chandler, III
51
Executive Vice President of Investments
2016 (2)
James D. Thompson
63
Executive Vice President of Operations
2016 (3)
(1) Ms. Palmer assumed the responsibilities of President, effective January 1, 2016 in addition to her responsibilities as Chief Financial Officer, which position she has held since January 2013. Prior to that, Ms. Palmer served as Senior Vice President of Capital Markets since 2003 and has been with the Company since 1996.
(2) Mr. Chandler assumed the role of Executive Vice President of Investments on January 1, 2016 and previously served as Managing Director since 2006. Prior to that, Mr. Chandler served in various investment officer positions since the merger with Pacific Retail Trust in 1999.
(3) Mr. Thompson assumed the role of Executive Vice President of Operations on January 1, 2016 and previously served as our Managing Director - East since our initial public offering in 1993. Prior to that time, Mr. Thompson served as Executive Vice President of our predecessor real estate division beginning in 1981.
Company Website Access and SEC Filings
Our website may be accessed at www.regencycenters.com. All of our filings with the Securities and Exchange Commission ("SEC") can be accessed free of charge through our website promptly after filing; however, in the event that the website is inaccessible, we will provide paper copies of our most recent annual report on Form 10-K, the most recent quarterly report on Form 10-Q, current reports filed or furnished on Form 8-K, and all related amendments, excluding exhibits, free of charge upon request. These filings are also accessible on the SEC's website at www.sec.gov. The content of our website is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.
General Information
Our registrar and stock transfer agent is Broadridge Corporate Issuer Solutions, Inc. ("Broadridge"), Philadelphia, PA. We offer a dividend reinvestment plan ("DRIP") that enables our shareholders to reinvest dividends automatically, as well as to make voluntary cash payments toward the purchase of additional shares. For more information, contact Broadridge toll free at (855) 449-0975 or our Shareholder Relations Department at (904) 598-7000.
On October 25, 2018, the Company's Board approved the transfer of the Company's common stock from listing on The New York Stock Exchange ("NYSE") to The NASDAQ Global Select Market ("NASDAQ"). The last day of trading on the NYSE was November 12, 2018. The Company's common stock commenced trading on NASDAQ on November 13, 2018, and continues to trade under the stock symbol "REG".
Our independent registered public accounting firm is KPMG LLP, Jacksonville, Florida. Our legal counsel is Foley & Lardner LLP, Jacksonville, Florida.
Annual Meeting of Shareholders
Our 2019 annual meeting of shareholders will be held at the Ponte Vedra Inn and Club, 200 Ponte Vedra Blvd., Ponte Vedra Beach, Florida, at 2:45 p.m. on Tuesday, May 7, 2019.

3



Defined Terms
In addition to the required Generally Accepted Accounting Principles ("GAAP") presentations, we use certain non-GAAP performance measures as we believe these measures improve the understanding of the Company's operational results. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change.
The following terms, as defined, are commonly used by management and the investing public to understand and evaluate our operational results:
Same Property is a Retail Operating Property that was owned and operated for the entirety of both calendar year periods being compared. This term excludes all developments and Non-Same Properties.
Non-Same Property is a property acquired, sold, or a Development Completion during either calendar year period being compared. Non-retail properties and corporate activities, including the captive insurance program, are part of Non-Same Property.
Retail Operating Property is any retail property not termed a Property in Development. A retail property is any property where the majority of the income is generated from retail uses.
Property In Development includes properties in various stages of development and redevelopment including active pre-development activities.
Development Completion is a property in development that is deemed complete upon the earliest of: (i) 90% of total estimated net development costs have been incurred and percent leased equals or exceeds 95%, or (ii) the property features at least two years of anchor operations, or (iii) three years have passed since the start of construction. Once deemed complete, the property is termed a Retail Operating Property the following calendar year.
Pro-Rata information includes 100% of our consolidated properties plus our economic share (based on our ownership interest) in our unconsolidated real estate investment partnerships.
We manage our entire real estate portfolio without regard to ownership structure, although certain decisions impacting properties owned through partnerships require partner approval. Therefore, we believe presenting our pro-rata share of certain operating metrics, along with other non-GAAP measures, makes comparisons of other REITs' operating results to the Company's more meaningful.
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 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 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.
The presentation of pro-rata information has limitations which include, but are not limited to, the following:
The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting or allocating noncontrolling interests, and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and
Other companies in our industry may calculate their pro-rata interest differently, limiting the comparability of pro-rata information.
Because of these limitations, the pro-rata financial information should not be considered independently or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP financial statements, using the pro-rata information as a supplement.
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 and losses from sales of depreciable property, (v)

4



operating real estate impairments, and (vi) adjustments to reflect the Company's share of unconsolidated partnerships and joint ventures.
Operating EBITDAre (previously Adjusted EBITDA) begins with the NAREIT EBITDAre and excludes certain non-cash components of earnings derived from above and below market rent amortization and straight-line rents.
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 plus dividends paid to our preferred stockholders.
Net Operating Income ("NOI") is the sum of base rent, percentage rent, and recoveries from tenants and other income, less operating and maintenance, real estate taxes, ground rent, and provision for doubtful accounts. NOI excludes straight-line rental income and expense, above and below market rent and ground rent amortization, tenant lease inducement amortization, and other fees. The Company also provides disclosure of NOI excluding termination fees, which excludes both termination fee income and expenses.
NAREIT Funds from Operations ("NAREIT FFO") is a commonly used measure of REIT performance, which NAREIT defines as net income, computed in accordance with GAAP, excluding gains and losses from sales of depreciable property, net of tax, excluding operating real estate impairments, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We compute 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 provides 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 our financial performance not immediately apparent from net income determined in accordance with GAAP. Thus, NAREIT FFO is a supplemental non-GAAP financial measure of our 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.

5




Item 1A. Risk Factors
Risk Factors Related to the Retail Industry
Economic and market conditions may adversely affect the retail industry and consequently reduce our revenues and cash flow, and increase our operating expenses.
Our properties are leased primarily to retail tenants from whom we derive most of our revenue in the form of minimum rent, expense recoveries and other income. Therefore, our performance and operating results are directly linked to the economic and market conditions occurring in the retail industry. We are subject to the risks that, upon expiration, leases for space in our properties are not renewed by existing tenants, vacant space is not leased to new tenants, or tenants demand new lease terms, including costs for renovations or concessions. The market for leasing retail space in our properties may be adversely affected by any of the following:
changes in national, regional and local economic conditions;
deterioration in the competitiveness and creditworthiness of our retail tenants;
increased competition from the use of e-commerce by retailers and consumers as well as other concepts such as super-stores and warehouse clubs;
tenant bankruptcies and subsequent rejections of our leases;
reductions in consumer spending and retail sales;
reduced tenant demand for retail space;
oversupply of retail space;
reduced consumer demand for certain retail categories;
consolidation within the retail sector;
increased operating costs;
perceptions by retailers and shoppers of the safety, convenience and attractiveness of our properties;
casualties, natural disasters and terrorist attacks; and
armed conflicts against the United States.
To the extent that any of these conditions occur they are likely to impact the retail industry, our retail tenants, the demand and market rents for retail space, the occupancy levels of our properties, our ability to sell, acquire or develop properties, our operating results and our cash available for distributions to stock and unit holders.
The integration of bricks and mortar stores and e-commerce by retailers and a continued shift in retail sales towards e-commerce may adversely impact our revenues and cash flows.
Retailers are increasingly impacted by e-commerce and changes in customer buying habits, including the delivery or curbside pick-up of items ordered online. Retailers are considering these e-commerce trends when making decisions regarding their bricks and mortar stores and how they will compete and innovate in a rapidly changing e-commerce environment. Many retailers in our shopping centers provide services or sell goods, which have historically been less likely to be purchased online; however, the continuing increase in e-commerce sales in all retail categories may cause retailers to adjust the size or number of retail locations in the future or close stores. Our grocer tenants are incorporating e-commerce concepts through home delivery, which could reduce foot traffic at our centers. This shift may adversely impact our occupancy and rental rates, which would impact our revenues and cash flows. Changes in shopping trends as a result of the growth in e-commerce may also impact the profitability of retailers that do not adapt to changes in market conditions. These conditions may adversely impact our results of operations and cash flows if we are unable to meet the needs of our tenants or if our tenants encounter financial difficulties as a result of changing market conditions.
Our business is dependent on perceptions by retailers and shoppers of the safety, convenience and attractiveness of our retail properties.
We are dependent on perceptions by retailers or shoppers of the safety, convenience and attractiveness of our retail properties. If retailers and shoppers perceive competing retail properties and other retailing options to be safer, more convenient, or of a higher quality, our revenues may be adversely affected.
Changing economic and retail market conditions in geographic areas where our properties are concentrated may reduce our revenues and cash flow.
Economic conditions in markets where our properties are concentrated can greatly influence our financial performance. During the year ended December 31, 2018, our properties in California, Florida, and Texas accounted for 28.1%,

6



20.1%, and 7.1%, respectively, of our NOI from Consolidated Properties plus our pro-rata share from Unconsolidated Properties ("pro-rata basis"). Our revenues and cash flow may be adversely affected by this geographic concentration if market conditions, such as supply of or demand for retail space, deteriorate more significantly in California, Florida, or Texas compared to other geographic areas.
Our success depends on the success and continued presence of our “anchor” tenants.
Anchor Tenants ("Anchor Tenants" or "Anchors" occupying 10,000 square feet or more) occupy large stores in our shopping centers, pay a significant portion of the total rent at a property and contribute to the success of other tenants by attracting shoppers to the property. We derive significant revenues from anchor tenants such as Publix, Kroger Co., Albertsons Companies, Inc., Whole Foods, and TJX Companies, who accounted for 3.2%, 3.0%, 2.8%, 2.4%, and 2.3%, respectively, of our total annualized base rent on a pro-rata basis, for the year ended December 31, 2018. Our net income and cash flow may be adversely affected by the loss of revenues and additional costs in the event a significant anchor tenant:
becomes bankrupt or insolvent;
experiences a downturn in its business;
materially defaults on its leases;
does not renew its leases as they expire;
renews at lower rental rates and/or requires a tenant improvement allowance; or
renews, but reduces its store size, which results in down-time and additional tenant improvement costs to the landlord to re-lease the vacated space.

Some anchors have the right to vacate their space and may prevent us from re-tenanting by continuing to comply and pay rent in accordance with their lease agreement. Vacated anchor space, including space owned by the anchor, can reduce rental revenues generated by the shopping center in other spaces because of the loss of the departed anchor's customer drawing power. If a significant tenant vacates a property, co-tenancy clauses in select lease contracts may allow other tenants to modify or terminate their rent or lease obligations. Co-tenancy clauses have several variants: they may allow a tenant to postpone a store opening if certain other tenants fail to open their stores; they may allow a tenant to close its store prior to lease expiration if another tenant closes its store prior to lease expiration; or more commonly, they may allow a tenant to pay reduced levels of rent until a certain number of tenants open their stores within the same shopping center.
A significant percentage of our revenues are derived from smaller shop space tenants and our net income may be adversely impacted if our smaller shop tenants are not successful.
A significant percentage of our revenues are derived from smaller shop space tenants ("Shop Space Tenants" occupying less than 10,000 square feet). Shop Space Tenants may be more vulnerable to negative economic conditions as they have more limited resources than Anchor Tenants. Shop Space Tenants may be facing reduced sales as a result of an increase in competition including from e-commerce retailers. Certain Shop Space Tenants are incorporating e-commerce into their business strategies and may seek to reduce their store sizes upon lease expiration as they adjust to and implement alternative distribution channels. The types of Shop Space Tenants vary from retail shops and restaurants to service providers. If we are unable to attract the right type or mix of Shop Space Tenants into our centers, our revenues and cash flow may be adversely impacted.
At December 31, 2018, Shop Space Tenants represent approximately 35.3% of our GLA leased at average base rents of $33.75 per square foot ("PSF"). A one-percent decline in our shop space occupancy may result in a reduction to minimum rent of approximately $4.8 million.
We may be unable to collect balances due from tenants in bankruptcy.
Although minimum rent and recoveries from tenants are supported by long-term lease contracts, tenants who file bankruptcy 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 recover our claim and to re-lease the vacated space. In the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and rejects its leases, we may experience a significant reduction in our revenues and may not be able to collect all pre-petition amounts owed by the bankrupt tenant.

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Risk Factors Related to Real Estate Investments and Operations
We are subject to numerous laws and regulations that may adversely affect our operations or expose us to liability.
Our properties are subject to numerous federal, state, and local laws and regulations, some of which may conflict with one another or be subject to varying judicial or regulatory interpretations. These laws and regulations may include zoning laws, building codes, competition laws, rules and agreements, landlord-tenant laws, property tax regulations, changes in real estate assessments and other laws and regulations generally applicable to business operations. Noncompliance with such laws and regulations, and any associated litigation may expose us to liability.
Our real estate assets may decline in value and be subject to impairment losses which may reduce our net income.
Our real estate properties are carried at cost unless circumstances indicate that the carrying value of these assets may not be recoverable. We evaluate whether there are any indicators, including property operating performance and general market conditions, such that the value of the real estate properties (including any related tangible or intangible assets or liabilities, including goodwill) may not be recoverable. Through the evaluation, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated holding periods, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and may differ materially from actual results. Changes in our disposition strategy or changes in the marketplace may alter the holding period of an asset or asset group, which may result in an impairment loss and such loss may be material to the Company's financial condition or operating performance. To the extent that the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value.
The fair value of real estate assets is subjective and is determined through the use of comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization method or the traditional discounted cash flow approach. Such cash flow projections take into account expected future operating income, trends and prospects, as well as the effects of demand, competition and other relevant criteria, and therefore are subject to management judgment. Changes in these factors may impact the determination of fair value. In estimating the fair value of undeveloped land, we generally use market data and comparable sales information.
These subjective assessments have a direct impact on our net income because recording an impairment charge results in an immediate negative adjustment to net income, which may be material. There can be no assurance that we will not record impairment charges in the future related to our assets.
We face risks associated with development, redevelopment and expansion of properties.
We actively pursue opportunities for new retail development, or existing property redevelopment or expansion. Development and redevelopment activities require various government and other approvals for entitlements and any delay in such approvals may significantly delay this process. We may not recover our investment in development or redevelopment projects for which approvals are not received. We are subject to other risks associated with these activities, including the following risks:
we may be unable to lease developments to full occupancy on a timely basis;
the occupancy rates and rents of a completed project may not be sufficient to make the project profitable;
actual costs of a project may exceed original estimates, possibly making the project unprofitable;
delays in the development or construction process may increase our costs;
construction cost increases may reduce investment returns on development and redevelopment opportunities;
we may abandon development opportunities and lose our investment due to adverse market conditions;
the size of our development pipeline may strain our labor or capital capacity to complete developments within targeted timelines and may reduce our investment returns;
a reduction in the demand for new retail space may reduce our future development activities, which in turn may reduce our net operating income;
changes in the level of future development activity may adversely impact our results from operations by reducing the amount of internal general overhead costs that may be capitalized;
an expansion of our development and acquisition focus to include more complex redevelopments and mixed use properties in very dense urban locations could absorb resources and potentially result in inconsistent deliveries, adversely impacting annual NOI and earnings growth;
mixed use properties may include differing tenant profiles or mixes, more complex entitlement processes, and/or multi-story buildings, outside our traditional expertise, which could impact annual NOI and earnings growth; and

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we may develop or redevelop mixed use centers with partners for the residential or office components, making us dependent upon that partner's ability to perform and to agree on major decisions that impact our investment returns of the project.
We face risks associated with the acquisition of properties.
Our investment strategy includes investing in high-quality shopping centers that are leased to market-dominant grocers, category-leading anchors, specialty retailers, or restaurants located in areas with high barriers to entry and above average household incomes and population densities. The acquisition of properties and/or real estate entities entails risks that include, but are not limited to, the following, any of which may adversely affect our results of operations and cash flows:
properties we acquire may fail to achieve the occupancy or rental rates we project, within the time frames we estimate, which may result in the properties' failure to achieve the investment returns we project;
our investigation of an entity, property or building prior to our acquisition, and any representation we may have received from such seller, may fail to reveal various liabilities including defects and necessary repairs, which may increase our costs;
our estimate of the costs to improve, reposition or redevelop a property may prove to be too low, or the time we estimate to complete the improvement, repositioning or redevelopment may be too short, either of which may result in the property failing to achieve our projected return, either temporarily or permanently;
we may not recover our costs from an unsuccessful acquisition;
our acquisition activities may distract or strain our management capacity; and
we may not be able to successfully integrate an acquisition into our existing operations platform.
We face risks if we expand into new markets.
If opportunities arise, we may acquire or develop properties in markets where we currently have no presence. Each of the risks applicable to acquiring or developing properties in our current markets are applicable to acquiring, developing and integrating properties in new markets. In addition, we may not possess the same level of familiarity with the dynamics and conditions of the new markets we may enter, which may adversely affect our operating results and investment returns in those markets.
We may be unable to sell properties when desired because of market conditions.
Our properties, including their related tangible and intangible assets, represent the majority of our total consolidated assets and they may not be readily convertible to cash. As a result, our ability to sell one or more of our properties including properties held in joint venture in response to changes in economic, industry, or other conditions may be limited. The real estate market is affected by many factors, such as general economic conditions, availability and terms of financing, interest rates and other factors, including supply and demand for space, that are beyond our control. There may be less demand for lower quality properties that we have identified for ultimate disposition in markets with uncertain economic or retail environments, and where buyers are more reliant on the availability of third party mortgage financing. If we want to sell a property, we can provide no assurance that we will be able to dispose of it in the desired time period or at all or that the sales price of a property will be attractive at the relevant time or even exceed the carrying value of our investment. Moreover, if a property is mortgaged, we may not be able to obtain a release of the lien on that property without the payment of a substantial prepayment penalty, which may restrict our ability to dispose of the property, even though the sale might otherwise be desirable.
Certain properties we own have a low tax basis, which may result in a taxable gain on sale. We intend to utilize 1031 exchanges to mitigate taxable income; however, there can be no assurance that we will identify properties that meet our investment objectives for acquisitions. In the event that we do not utilize 1031 exchanges, we may be required to distribute the gain proceeds to shareholders or pay income tax, which may reduce our cash flow available to fund our commitments.
Certain of the properties in our portfolio are subject to ground leases; if we are found to be in breach of a ground lease or are unable to renew a ground lease, we may be materially and adversely affected.
We have 29 properties in our portfolio that are either partially or completely on land subject to ground leases with third parties. Accordingly, we only own a long-term leasehold or similar interest in those properties. If we are found to be in breach of a ground lease, we may lose our interest in the improvements and the right to operate the property that is subject to the ground lease. In addition, unless we can purchase a fee interest in the underlying land or extend the terms of these leases before or upon their expiration, as to which no assurance can be given, we will lose our interest in the improvements and the right to operate such properties. The existing lease terms, including renewal options, were taken into consideration when making our investment decisions. The purchase price and subsequent improvements are being depreciated over the shorter of the remaining

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life of the ground leases or the useful life of the underlying assets. If we were to lose the right to operate a property due to a breach or not exercising renewal options of the ground lease, we would be unable to derive income from such property, which would impair the value of our investments, and adversely affect our financial condition, results of operations and cash flows.
Geographic concentration of our properties makes our business vulnerable to natural disasters, severe weather conditions and climate change. An uninsured loss or a loss that exceeds the insurance coverage on our properties may subject us to loss of capital and revenue on those properties.
A significant number of our properties are located in areas that are susceptible to earthquakes, tropical storms, hurricanes, tornadoes, wildfires, sea-level rise, and other natural disasters. As of December 31, 2018, 25% of the total insured value of our portfolio is located in the state of California, including a number of properties in the San Francisco Bay and Los Angeles areas. Additionally, 19% and 6% of the total insured value of our portfolio is located in the states of Florida and Texas, respectively. Recent intense weather conditions may cause property insurance premiums to increase significantly in the future. We recognize that the frequency and / or intensity of extreme weather events, sea-level rise, and other climatic changes may continue to increase, and as a result, our exposure to these events may increase. These weather conditions may disrupt our business and the business of our tenants, which may affect the ability of some tenants to pay rent and may reduce the willingness of tenants or residents to remain in or move to these affected areas. Therefore, as a result of the geographic concentration of our properties, we face risks, including higher costs, such as uninsured property losses and higher insurance premiums, and disruptions to our business and the businesses of our tenants.
We carry comprehensive liability, fire, flood, terrorism, rental loss, and environmental insurance for our properties with policy specifications and insured limits customarily carried for similar properties. Some types of losses, such as losses from named wind storms, earthquakes, terrorism, or wars may have limited coverage or be excluded from insurance coverage. Although we carry specific insurance coverage for named windstorm and earthquake losses, the policies are subject to deductibles up to 2% to 5% of the total insured value of each property, up to a $10 million maximum deductible per occurrence for each of these perils, with limits of $300 million per occurrence for all perils except earthquake, which has a total annual aggregate limit of $300 million. Terrorism coverage is limited to $200 million per occurrence related to property damage. Liability claims are limited to $151 million per occurrence. Should a loss occur at any of our properties that is subject to a substantial deductible or is in excess of the property or casualty insurance limits of our policies, we may lose part or all of our invested capital and revenues from such property, which may have a material adverse impact on our operating results, financial condition, and our ability to make distributions to stock and unit holders.
To the extent climate change causes adverse changes in weather patterns, our properties in certain markets may experience increases in storm intensity and rising sea‑levels. Climate change may result in volatile or decreased demand for retail space at certain of our properties or, in extreme cases, our inability to operate certain properties at all. Climate change may also have indirect effects on our business by increasing the cost of insurance on favorable terms, or making insurance unavailable. Moreover, compliance with new laws or regulations related to climate change, including compliance with “green” building codes, may require us to make improvements to our existing properties or increase taxes and fees assessed on us or our properties. At this time, there can be no assurance that climate change will not have a material adverse effect on us.
Terrorist activities or violence occurring at our properties also may directly affect the value of our properties through damage, destruction or loss. Insurance for such acts may be unavailable or cost more resulting in an increase to our operating expenses and adversely affect our results of operations. To the extent that our tenants are affected by such attacks and threats of attacks, their businesses may be adversely affected, including their ability to continue to meet obligations under their existing leases.
Loss of our key personnel may adversely affect our business and operations.
The success of our business depends, in part, on the leadership and performance of our executive management team and key employees, and our ability to attract, retain and motivate talented employees may significantly impact our future performance. Competition for these individuals is intense, and we cannot be assured that we will retain all of our executive management team and other key employees or that we will be able to attract and retain other highly qualified individuals for these positions in the future. Losing any one or more of these persons may have a material adverse effect on us.
We face competition from numerous sources, including other REITs and other real estate owners.
The ownership of shopping centers is highly fragmented. We face competition from other public REITs, large private investors, institutional investors, and from numerous small owners in the acquisition, ownership, and leasing of shopping centers. We also compete to develop shopping centers with other REITs engaged in development activities as well as with local, regional, and national real estate developers. This competition may:

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reduce the number of properties available for acquisition or development;
increase the cost of properties available for acquisition or development; and
hinder our ability to attract and retain tenants, leading to increased vacancy rates and/or reduced rents.
If we cannot successfully compete in our targeted markets, our cash flow, and therefore distributions to stock and unit holders, may be adversely affected.
Costs of environmental remediation may reduce our cash flow available for distribution to stock and unit holders.
Under various federal, state, and local laws, an owner or manager of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on the property. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of hazardous or toxic substances. The cost of any required remediation may exceed the value of the property and/or the aggregate assets of the owner or the responsible party. The presence of, or the failure to properly remediate, hazardous or toxic substances may adversely affect our ability to sell or lease a contaminated property or to use the property as collateral for a loan. We can provide no assurance that we are aware of all potential environmental liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to us; that our properties will not be affected by tenants or nearby properties or other unrelated third parties; and that future uses or conditions, or changes in environmental laws and regulations will not result in additional material environmental liabilities to us.
Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make unintended expenditures.
All of our properties are required to comply with the Americans with Disabilities Act (“ADA”), which generally requires that buildings be made accessible to people with disabilities. Compliance with ADA requirements may require removal of access barriers, and noncompliance may result in imposition of fines by the U.S. government or an award of damages to private litigants, or both. While the tenants to whom we lease space in our properties are obligated by law to comply with the ADA provisions, and typically under tenant leases are obligated to cover costs associated with compliance, if required changes involve greater expenditures than anticipated, or if the changes must be made on a more accelerated basis than anticipated, the ability of these tenants to cover costs may be adversely affected. In addition, we are required to operate the properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental entities and become applicable to the properties. We may be required to make substantial capital expenditures to comply with these requirements, and these expenditures may have a material adverse effect on our ability to meet our financial obligations and make distributions to our stock and unit holders.
The unauthorized access, use, theft or destruction of tenant or employee personal, financial or other data or of Regency’s proprietary or confidential information stored in our information systems or by third parties on our behalf could impact our reputation and brand and expose us to potential liability and loss of revenues.
Many of our information technology systems (including those we use for administration, accounting, and communications, as well as the systems of our co-investment partners and other third-party business partners and service providers, whether cloud-based or hosted in proprietary servers) contain personal, financial or other information that is entrusted to us by our tenants and employees. Many of our information technology systems also contain proprietary Regency information and other confidential information related to our business. We are frequently subject to attempts to compromise our information technology systems. To the extent we or a third party were to experience a material breach of our or such third party’s information technology systems that result in the unauthorized access, theft, use, destruction or other compromises of tenants’ or employees' data or confidential information of the Company stored in such systems, including through cyber-attacks or other external or internal methods, such a breach may damage our reputation and cause us to lose tenants and revenues, generate third party claims and the potential disruption to our business and plans. Such security breaches also could result in a violation of applicable U.S. privacy and other laws, and subject us to private consumer, business partner, or securities litigation and governmental investigations and proceedings, any of which could result in our exposure to material civil or criminal liability, and we may not be able to recover these expenses from our service providers, responsible parties, or insurance carriers.
The techniques and sophistication used to conduct cyber-attacks and breaches of information technology systems, as well as the sources and targets of these attacks, change frequently and are often not recognized until such attacks are launched or have been in place for a period of time. The Company manages cyber risk by evaluating the impact of a potential cyber breach on our business and determining the level of investment in the prevention, detection and response to a breach. We continue to make significant investments in technology, third-party services and personnel to develop and implement systems and processes that are designed to anticipate cyber-attacks and to prevent or minimize breaches of our information technology systems or data loss, but these security measures cannot provide assurance that we will be successful in preventing such breaches or data loss.

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Risk Factors Related to Our Partnerships and Joint Ventures
We do not have voting control over properties owned in our co-investment partnerships and joint ventures, so we are unable to ensure that our objectives will be pursued.
We have invested substantial capital as a partner in a number of partnerships and joint ventures to acquire, own, lease, develop or redevelop properties. These activities are subject to the same risks as our investments in our wholly-owned properties. These investments, and other future similar investments may involve risks that would not be present were a third party not involved, including the possibility that partners or other owners might become bankrupt, suffer a deterioration in their creditworthiness, or fail to fund their share of required capital contributions. Partners or other owners may have economic or other business interests or goals that are inconsistent with our own business interests or goals, and may be in a position to take actions contrary to our policies or objectives.
These investments, and other future similar investments, also have the potential risk of creating impasses on decisions, such as a sale or financing, because neither we nor our partner or other owner has full control over the partnership or joint venture. Disputes between us and partners or other owners might result in litigation or arbitration that may increase our expenses and prevent management from focusing their time and efforts on our business. Consequently, actions by, or disputes with, partners or other owners might result in subjecting properties owned by the partnership or joint venture to additional risk. In addition, we risk the possibility of being liable for the actions of our partners or other owners. These factors may limit the return that we receive from such investments or cause our cash flows to be lower than our estimates.
The termination of our partnerships may adversely affect our cash flow, operating results, and our ability to make distributions to stock and unit holders.
If partnerships owning a significant number of properties were dissolved for any reason, we could lose the asset, property management, leasing and construction management fees from these partnerships, which may adversely affect our operating results and our cash available for distribution to stock and unit holders.
Risk Factors Related to Funding Strategies and Capital Structure
Higher market capitalization rates and lower NOI at our properties may adversely impact our ability to sell properties and fund developments and acquisitions, and may dilute earnings.
As part of our funding strategy, we sell operating properties that no longer meet our investment standards or those with a limited future growth profile. These sales proceeds are used to fund the construction of new developments, redevelopments, and repay debt and acquisitions. An increase in market capitalization rates or a decline in NOI may cause a reduction in the value of centers identified for sale, which would have an adverse impact on the amount of cash generated. In order to meet the cash requirements of our development program, we may be required to sell more properties than initially planned, which may have a negative impact on our earnings. Additionally, the sale of properties resulting in significant tax gains may require higher distributions to our stockholders or payment of additional income taxes in order to maintain our REIT status. We intend to utilize 1031 exchanges to mitigate taxable income, however there can be no assurance that we will identify properties that meet our investment objectives for acquisitions.
We depend on external sources of capital, which may not be available in the future on favorable terms or at all.
To qualify as a REIT, the Parent Company must, among other things, distribute to its stockholders each year at least 90% of its REIT taxable income (excluding any net capital gains). Because of these distribution requirements, we may not be able to fund all future capital needs with income from operations. We therefore will have to rely on third-party sources of capital, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market's perception of our growth potential and our current and potential future earnings. Our access to debt depends on our credit rating, the willingness of creditors to lend to us and conditions in the capital markets. In addition to finding creditors willing to lend to us, we are dependent upon our joint venture partners to contribute their pro rata share of any amount needed to repay or refinance existing debt when lenders reduce the amount of debt our partnerships and joint ventures are eligible to refinance.
In addition, our existing debt arrangements also impose covenants that limit our flexibility in obtaining other financing. Additional equity offerings may result in substantial dilution of stockholders' interests and additional debt financing may substantially increase our degree of leverage.
Without access to external sources of capital, we would be required to pay outstanding debt with our operating cash flows and proceeds from property sales. Our operating cash flows may not be sufficient to pay our outstanding debt as it comes due and real estate investments generally cannot be sold quickly at a return we believe is appropriate. If we are required to

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deleverage our business with operating cash flows and proceeds from property sales, we may be forced to reduce the amount of, or eliminate altogether, our distributions to stock and unit holders or refrain from making investments in our business.
Our debt financing may adversely affect our business and financial condition.
Our ability to make scheduled payments or to refinance our indebtedness will depend primarily on our future performance, which to a certain extent is subject to economic, financial, competitive and other factors beyond our control. In addition, we do not expect to generate sufficient operating cash flow to make balloon principal payments on our debt when due. If we are unable to refinance our debt on acceptable terms, we may be forced (i) to dispose of properties, which might result in losses, or (ii) to obtain financing at unfavorable terms, either of which may reduce the cash flow available for distributions to stock and unit holders. If we cannot make required mortgage payments, the mortgagee may foreclose on the property securing the mortgage.
Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition.
Our unsecured notes, unsecured term loans, and unsecured line of credit contain customary covenants, including compliance with financial ratios, such as ratio of total debt to gross asset value and fixed charge coverage ratio. Fixed charge coverage ratio is defined as earnings before interest, taxes, depreciation and amortization ("EBITDA") divided by the sum of interest expense and scheduled mortgage principal paid to our lenders plus dividends paid to our preferred stockholders, if any. These covenants may limit our operational flexibility and our acquisition activities. Moreover, if we breach any of the covenants in our debt agreements, and do not cure the breach within the applicable cure period, our lenders may require us to repay the debt immediately, even in the absence of a payment default. Many of our debt arrangements, including our unsecured notes, unsecured term loans, and unsecured line of credit are cross-defaulted, which means that the lenders under those debt arrangements can put us in default and require immediate repayment of their debt if we breach and fail to cure a default under certain of our other material debt obligations. As a result, any default under our debt covenants may have an adverse effect on our financial condition, our results of operations, our ability to meet our obligations, and the market value of our stock.
The interest rates on our Unsecured Credit facilities as well as on our variable rate mortgages and interest rate swaps might change based on changes to the method in which LIBOR or its replacement rate is determined.
LIBOR, the London Interbank Offered Rate, is the basic rate of interest used in lending transactions between banks on the London interbank market, and is widely used as a reference for setting the interest rate on loans globally. We have Unsecured Credit facilities, variable rate mortgages, and interest rate swaps with variable interest rates or options for such that are based upon an annual rate of LIBOR plus a spread. LIBOR rates charged on such debt and swaps change monthly.
On July 27, 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to phase out LIBOR by the end of 2021. The Alternative Reference Rates Committee ("ARRC"), a steering committee comprised of large U.S. financial institutions, has proposed replacing USD-LIBOR with a new index calculated by short term repurchase agreements - the Secured Overnight Financing Rate ("SOFR"). The replacement for LIBOR at this time is still uncertain.
If LIBOR ceases to exist, the Administrative Agent under our line of credit may, to the extent practicable (and with our consent but subject to certain objection rights on the part of the line lenders) establish a replacement rate for LIBOR, which must be determined generally in accordance with similar situations in other transactions in which it is serving as administrative agent or otherwise consistent with market practice generally). Establishing a replacement rate for LIBOR in this manner may result in interest obligations which are more than or do not otherwise correlate over time with the payments that would have been made on the line if LIBOR was available in its current form. Our other debt based upon LIBOR will experience similar types of adjustments. Such adjustments could have an adverse impact on our financing costs.
Increases in interest rates would cause our borrowing costs to rise and negatively impact our results of operations.
Although a significant amount of our outstanding debt has fixed interest rates, we do borrow funds at variable interest rates under our credit facilities and term loans. As of December 31, 2018, 4.9% of our outstanding debt was variable rate debt. Increases in interest rates would increase our interest expense on any variable rate debt to the extent we have not hedged our exposure to changes in interest rates. In addition, increases in interest rates will affect the terms under which we refinance our existing debt as it matures, to the extent we have not hedged our exposure to changes in interest rates. This would reduce our future earnings and cash flows, which may adversely affect our ability to service our debt and meet our other obligations and also may reduce the amount we are able to distribute to our stock and unit holders.

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Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us.
From time to time, we manage our exposure to interest rate volatility by using interest rate hedging arrangements that involve risk, such as the risk that counterparties may fail to honor their obligations under these arrangements, and that these arrangements may not be effective in reducing our exposure to interest rate changes. There can be no assurance that our hedging arrangements will qualify for hedge accounting or that our hedging activities will have the desired beneficial impact on our results of operations. Should we desire to terminate a hedging agreement, there may be significant costs and cash requirements involved to fulfill our obligations under the hedging agreement. Failure to hedge effectively against interest rate changes may adversely affect our results of operations.
We may acquire properties or portfolios of properties through tax-deferred contribution transactions, which may result in stockholder dilution and limit our ability to sell such assets.
We may acquire properties or portfolios of properties through tax deferred contribution transactions in exchange for partnership interests in our operating partnership, which may result in stockholder dilution. This acquisition structure may have the effect of, among other things, reducing the amount of tax depreciation we may deduct over the tax life of the acquired properties, and may require that we agree to protect the contributors’ ability to defer recognition of taxable gain through restrictions on our ability to dispose of the acquired properties and/or the allocation of partnership debt to the contributors to maintain their tax bases. These restrictions may limit our ability to sell an asset at a time, or on terms, that would be favorable absent such restrictions.
Risk Factors Related to our Company and the Market Price for Our Securities
Changes in economic and market conditions may adversely affect the market price of our securities.
The market price of our debt and equity securities may fluctuate significantly in response to many factors, many of which are out of our control, including:
actual or anticipated variations in our operating results;
changes in our funds from operations or earnings estimates;
publication of research reports about us or the real estate industry in general and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REIT's;
the ability of our tenants to pay rent and meet their other obligations to us under current lease terms and our ability to re-lease space as leases expire;
increases in market interest rates that drive purchasers of our stock to demand a higher dividend yield;
changes in market valuations of similar companies;
adverse market reaction to any additional debt we incur in the future;
any future issuances of equity securities;
additions or departures of key management personnel;
strategic actions by us or our competitors, such as acquisitions or restructurings;
actions by institutional stockholders;
changes in our dividend payments;
potential tax law changes on REITs;
speculation in the press or investment community; and
general market and economic conditions.
These factors may cause the market price of our securities to decline, regardless of our financial condition, results of operations, business or prospects. It is impossible to ensure that the market price of our securities, including our common stock, will not fall in the future. A decrease in the market price of our common stock may reduce our ability to raise additional equity in the public markets. Selling common stock at a decreased market price would have a dilutive impact on existing stockholders.
There is no assurance that we will continue to pay dividends at historical rates.
Our ability to continue to pay dividends at historical rates or to increase our dividend rate will depend on a number of factors, including, among others, the following:
our financial condition and results of future operations;
the terms of our loan covenants; and
our ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates.

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If we do not maintain or periodically increase the dividend on our common stock, it may have an adverse effect on the market price of our common stock and other securities.
Corporate responsibility, specifically related to environmental, social and governance factors, may impose additional costs and expose us to new risks.
Regency, as well as investors, are focused on corporate responsibility, specifically related to environmental, social and governance factors. Some investors may use these factors to guide their investment strategies. Third-party providers of corporate responsibility ratings and reports on companies have increased to meet growing investor demand for measurement of corporate responsibility performance. Although we have scored highly in these metrics to date, there can be no assurance that we will continue to score highly in the future. In addition, the criteria by which companies are rated may change, which could cause us to perform worse than in the past. We may face reputational damage in the event our corporate responsibility procedures or standards do not meet the standards set by various constituencies. Furthermore, should our competitors outperform us in such metrics, potential or current investors may elect to invest with our competition instead. The occurrence of any of the foregoing could have an adverse effect on the price of our shares and our business, financial condition and results of operations, including increased capital expenditures and or increased operating expenses.
Risk Factors Related to Laws and Regulations
If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates.
We believe that the Parent Company qualifies for taxation as a REIT for federal income tax purposes, and we plan to operate so that we can continue to meet the requirements for taxation as a REIT. If the Parent Company continues to qualify as a REIT, it generally will not be subject to federal income tax on income that we distribute to our stockholders. Many REIT requirements, however, are highly technical and complex. The determination that the Parent Company is a REIT requires an analysis of various factual matters and circumstances, some of which may not be totally within our control and some of which involve questions of interpretation. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, like rent, that are itemized in the REIT tax laws. There can be no assurance that the Internal Revenue Service (“IRS”) or a court would agree with the positions we have taken in interpreting the REIT requirements. We are also required to distribute to our stockholders at least 90% of our REIT taxable income, excluding capital gains. We will be subject to U.S. federal income tax on our undistributed taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. The fact that we hold many of our assets through co-investment partnerships and their subsidiaries further complicates the application of the REIT requirements. Furthermore, Congress and the IRS might make changes to the tax laws and regulations, and the courts might issue new rulings, that make it more difficult for the Parent Company to remain qualified as a REIT.
Also, unless the IRS granted relief under certain statutory provisions, the Parent Company would remain disqualified as a REIT for four years following the year it first failed to qualify. If the Parent Company failed to qualify as a REIT (currently and/or with respect to any tax years for which the statute of limitations has not expired), we would have to pay significant income taxes, reducing cash available to pay dividends, which would likely have a significant adverse effect on the value of our securities. In addition, we would no longer be required to pay any dividends to stockholders in order to maintain our REIT status. Although we believe that the Parent Company qualifies as a REIT, we cannot be assured that the Parent Company will continue to qualify or remain qualified as a REIT for tax purposes.
Even if the Parent Company qualifies as a REIT for federal income tax purposes, we are required to pay certain federal, state, and local taxes on our income and property. For example, if we have net income from “prohibited transactions,” that income will be subject to a 100% tax. In general, prohibited transactions include sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we have undertaken a significant number of asset sales in recent years, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise.
New legislation, as well as new regulations, administrative interpretations, or court decisions may be introduced, enacted, or promulgated from time to time, that may change the tax laws or interpretations of the tax laws regarding qualification as a REIT, or the federal income tax consequences of that qualification, in a manner that is adverse to our stockholders.

15



Recent changes to the U.S. tax laws may have a significant negative impact on the overall economy, our tenants, our investors, and our business.
The Tax Cuts and Jobs Act made significant changes to the Internal Revenue Code of 1986, as amended (the "Code"). While the changes in the Tax Cuts and Jobs Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or our stockholders, including our taxable income, the amount of distributions to our stockholders required in order to maintain our REIT status, and our relative tax advantage as a REIT. The long-term impact of the Tax Cuts and Jobs Act on the overall economy, government revenues, our tenants, us, and the real estate industry cannot be reliably predicted at this stage of the new law’s implementation. Furthermore, the Tax Cuts and Jobs Act may negatively impact certain of our tenants’ operating results, financial condition, and future business plans. The Tax Cuts and Jobs Act may also result in reduced government revenues, and therefore reduced government spending, which may negatively impact some of our tenants that rely on government funding. There can be no assurance that the Tax Cuts and Jobs Act will not negatively impact our operating results, financial condition, and future business operations.
Dividends paid by REITs generally do not qualify for reduced tax rates.
Subject to limited exceptions, dividends paid by REITs (other than distributions designated as capital gain dividends, qualified dividends or returns of capital) are not eligible for reduced rates for qualified dividends paid by "C" corporations and are taxable at ordinary income tax rates. The more favorable rates applicable to regular corporate qualified dividends may cause investors who are individuals, trusts and estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which may adversely affect the value of the shares of REITs, including the shares of our capital stock.
Under the recently passed Tax Cuts and Jobs Act, the rate brackets for non-corporate taxpayer’s ordinary income are adjusted, the top tax rate is reduced from 39.6% to 37% (excluding the 3.8% Medicare tax on net investment income), and ordinary REIT dividends are taxed at even lower effective rates. Under the Tax Cuts and Jobs Act, for taxable years beginning after December 31, 2017 and before January 1, 2026, distributions from REITs that are treated as dividends but are not designated as qualified dividends or capital gain dividends are generally taxed as ordinary income after deducting 20% of the amount of the dividend in the case of non-corporate stockholders. At the maximum ordinary income tax rate of 37% applicable for taxable years beginning after December 31, 2017 and before January 1, 2026, the maximum tax rate on ordinary REIT dividends for non-corporate stockholders is generally 29.6% (plus the 3.8% Medicare tax on net investment income).
Foreign stockholders may be subject to U.S. federal income tax on gain recognized on a disposition of our common stock if we do not qualify as a "domestically controlled" REIT.
A foreign person disposing of a U.S. real property interest, including shares of a U.S. corporation whose assets consist principally of U.S. real property interests is generally subject to U.S. federal income tax on any gain recognized on the disposition. This tax does not apply, however, to the disposition of stock in a REIT if the REIT is "domestically controlled." In general, we will be a domestically controlled REIT if at all times during the five-year period ending on the applicable stockholder’s disposition of our stock, less than 50% in value of our stock was held directly or indirectly by non-U.S. persons. If we were to fail to qualify as a domestically controlled REIT, gain recognized by a foreign stockholder on a disposition of our common stock would be subject to U.S. federal income tax unless our common stock was traded on an established securities market and the foreign stockholder did not at any time during a specified testing period directly or indirectly own more than 10% of our outstanding common stock.
Legislative or other actions affecting REITs may have a negative effect on us.
The rules dealing with federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury. Changes to the tax laws, with or without retroactive application, may adversely affect Regency or our investors. We cannot predict how changes in the tax laws might affect Regency or our investors. New legislation, Treasury Regulations, administrative interpretations or court decisions may significantly and negatively affect our ability to qualify as a REIT or the federal income tax consequences of such qualification, or the federal income tax consequences of an investment in us. Also, the law relating to the tax treatment of other entities, or an investment in other entities, may change, making an investment in such other entities more attractive relative to an investment in a REIT.
Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.
The REIT provisions of the Code limit our ability to hedge our liabilities. Generally, income from a hedging transaction that constitutes “qualifying income” for purposes of the 75% or 95% gross income tests applicable to REITs, does not constitute “gross income” for purposes of the 75% or 95% gross income tests, provided that we properly identify the

16



hedging transaction pursuant to the applicable sections of the Code and Treasury Regulations. To the extent that we enter into other types of hedging transactions, or fail to make the proper tax identifications, the income from those transactions is likely to be treated as non-qualifying income for purposes of both gross income tests. As a result of these rules, we may need to limit our use of otherwise advantageous hedging techniques or implement those hedges through a taxable REIT subsidiary ("TRS").
Changes in accounting standards may impact our financial results.
The Financial Accounting Standards Board ("FASB"), in conjunction with the SEC, has several key projects recently completed that will impact how we currently account for our material transactions, including lease accounting. Accounting Standards Codification ("ASC") Topic 842, Leases, will be adopted by the Company on January 1, 2019 and, as further described in note 1(o), is expected to have an impact on our financial statements when adopted to require all of our operating leases for office, ground and equipment leases to be recorded on our balance sheet. Also, we will no longer capitalize internal leasing compensation costs and legal costs associated with leasing activities under the new standard, which will result in an increase in our general and administrative costs and a direct reduction to our net income.
Restrictions on the ownership of the Parent Company's capital stock to preserve its REIT status may delay or prevent a change in control.
Ownership of more than 7% by value of our outstanding capital stock is prohibited, with certain exceptions, by the Parent Company's articles of incorporation, for the purpose of maintaining its qualification as a REIT. This 7% limitation may discourage a change in control and may also (i) deter tender offers for our capital stock, which offers may be attractive to our stockholders, or (ii) limit the opportunity for our stockholders to receive a premium for their capital stock that might otherwise exist if an investor attempted to assemble a block in excess of 7% of our outstanding capital stock or to affect a change in control.
The issuance of the Parent Company's capital stock may delay or prevent a change in control.
The Parent Company's articles of incorporation authorize our Board of Directors to issue up to 30,000,000 shares of preferred stock and 10,000,000 shares of special common stock and to establish the preferences and rights of any shares issued. The issuance of preferred stock or special common stock may have the effect of delaying or preventing a change in control. The provisions of the Florida Business Corporation Act regarding affiliated transactions may also deter potential acquisitions by preventing the acquiring party from consummating a merger or other extraordinary corporate transaction without the approval of our disinterested stockholders.

Item 1B. Unresolved Staff Comments
None.

17




Item 2. Properties
The following table is a list of the shopping centers, summarized by state and in order of largest holdings, presented for Consolidated Properties (excludes properties owned by unconsolidated co-investment partnerships):
 
 
December 31, 2018
 
December 31, 2017
Location
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total GLA
 
Percent Leased
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total GLA
 
Percent Leased
Florida
 
90

 
10,745

 
28.3
%
 
94.7
%
 
96

 
11,255

 
29.1
%
 
94.7
%
California
 
54

 
8,168

 
21.5
%
 
96.6
%
 
56

 
8,549

 
22.1
%
 
96.5
%
Texas
 
23

 
3,019

 
8.0
%
 
97.3
%
 
23

 
3,018

 
7.8
%
 
97.4
%
Georgia
 
21

 
2,048

 
5.4
%
 
95.5
%
 
21

 
2,047

 
5.3
%
 
95.2
%
Connecticut
 
14

 
1,453

 
3.8
%
 
95.6
%
 
14

 
1,458

 
3.8
%
 
96.9
%
Colorado
 
14

 
1,146

 
3.0
%
 
96.2
%
 
14

 
1,146

 
3.0
%
 
97.2
%
New York
 
11

 
1,367

 
3.6
%
 
97.8
%
 
9

 
1,198

 
3.1
%
 
99.0
%
North Carolina
 
10

 
895

 
2.3
%
 
96.8
%
 
10

 
895

 
2.3
%
 
97.0
%
Massachusetts
 
9

 
907

 
2.4
%
 
98.9
%
 
9

 
907

 
2.3
%
 
99.1
%
Ohio
 
8

 
1,205

 
3.2
%
 
99.4
%
 
8

 
1,196

 
3.1
%
 
99.5
%
Virginia
 
8

 
1,332

 
3.5
%
 
83.8
%
 
8

 
1,420

 
3.7
%
 
86.3
%
Washington
 
7

 
825

 
2.2
%
 
99.4
%
 
7

 
825

 
2.1
%
 
99.4
%
Oregon
 
7

 
741

 
2.0
%
 
96.1
%
 
7

 
741

 
1.9
%
 
94.8
%
Illinois
 
6

 
1,075

 
2.8
%
 
91.2
%
 
6

 
1,069

 
2.8
%
 
88.3
%
Louisiana
 
5

 
753

 
2.0
%
 
92.8
%
 
5

 
753

 
1.9
%
 
94.2
%
Missouri
 
4

 
408

 
1.1
%
 
100.0
%
 
4

 
408

 
1.1
%
 
99.7
%
Maryland
 
3

 
372

 
1.0
%
 
85.4
%
 
3

 
372

 
1.0
%
 
86.6
%
Tennessee
 
3

 
318

 
0.8
%
 
99.1
%
 
3

 
317

 
0.8
%
 
97.6
%
Pennsylvania
 
3

 
317

 
0.8
%
 
98.1
%
 
3

 
317

 
0.8
%
 
93.2
%
Indiana
 
1

 
254

 
0.7
%
 
98.4
%
 
1

 
254

 
0.7
%
 
97.7
%
Delaware
 
1

 
232

 
0.6
%
 
95.6
%
 
1

 
232

 
0.6
%
 
95.6
%
New Jersey
 
1

 
218

 
0.6
%
 
96.9
%
 
1

 
218

 
0.6
%
 
86.7
%
Michigan
 
1

 
97

 
0.3
%
 
100.0
%
 
1

 
97

 
0.3
%
 
98.6
%
South Carolina
 
1

 
51

 
0.1
%
 
94.8
%
 
1

 
51

 
0.1
%
 
71.2
%
Total
 
305

 
37,946

 
100.0
%
 
95.5
%
 
311

 
38,743

 
100.0
%
 
95.5
%
Certain Consolidated Properties are encumbered by mortgage loans of $525.2 million, excluding debt issuance costs and premiums and discounts, as of December 31, 2018.
The weighted average annual effective rent for the consolidated portfolio of properties, net of tenant concessions, is $21.51 and $21.01 PSF as of December 31, 2018 and 2017, respectively.

18



The following table is a list of the shopping centers, summarized by state and in order of largest holdings, presented for Unconsolidated Properties (includes properties owned by unconsolidated co-investment partnerships):
 
 
December 31, 2018
 
December 31, 2017
Location
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total GLA
 
Percent Leased
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total GLA
 
Percent Leased
California
 
22

 
3,017

 
19.3
%
 
94.2
%
 
21

 
2,791

 
18.4
%
 
97.0
%
Virginia
 
17

 
2,403

 
15.4
%
 
94.8
%
 
18

 
2,554

 
16.9
%
 
94.3
%
Maryland
 
11

 
1,184

 
7.6
%
 
96.2
%
 
11

 
1,184

 
7.8
%
 
95.8
%
Florida
 
10

 
1,045

 
6.7
%
 
98.8
%
 
10

 
1,040

 
6.9
%
 
97.4
%
North Carolina
 
9

 
1,417

 
9.1
%
 
94.1
%
 
8

 
1,326

 
8.8
%
 
91.6
%
Texas
 
7

 
933

 
6.0
%
 
98.2
%
 
7

 
933

 
6.2
%
 
97.4
%
Washington
 
7

 
859

 
5.5
%
 
95.1
%
 
5

 
621

 
4.1
%
 
96.5
%
Colorado
 
6

 
854

 
5.5
%
 
93.2
%
 
5

 
836

 
5.5
%
 
96.2
%
Pennsylvania
 
6

 
666

 
4.2
%
 
94.4
%
 
6

 
666

 
4.4
%
 
95.7
%
Minnesota
 
5

 
665

 
4.2
%
 
99.0
%
 
5

 
674

 
4.4
%
 
98.3
%
Illinois
 
4

 
671

 
4.3
%
 
97.1
%
 
4

 
671

 
4.4
%
 
95.5
%
New Jersey
 
4

 
353

 
2.3
%
 
96.4
%
 
3

 
287

 
1.9
%
 
98.2
%
Massachusetts
 
2

 
726

 
4.6
%
 
98.4
%
 
2

 
726

 
4.8
%
 
95.7
%
Indiana
 
2

 
139

 
0.9
%
 
100.0
%
 
2

 
139

 
0.9
%
 
99.1
%
District of Columbia
 
2

 
40

 
0.3
%
 
84.4
%
 
2

 
40

 
0.3
%
 
91.8
%
Connecticut
 
1

 
186

 
1.2
%
 
80.1
%
 
1

 
186

 
1.2
%
 
100.0
%
New York
 
1

 
141

 
0.9
%
 
100.0
%
 
1

 
141

 
0.9
%
 
100.0
%
Oregon
 
1

 
93

 
0.6
%
 
100.0
%
 
1

 
93

 
0.6
%
 
98.4
%
Georgia
 
1

 
86

 
0.5
%
 
83.8
%
 
1

 
86

 
0.6
%
 
97.5
%
South Carolina
 
1

 
80

 
0.5
%
 
100.0
%
 
1

 
80

 
0.5
%
 
100.0
%
Delaware
 
1

 
64

 
0.4
%
 
90.1
%
 
1

 
64

 
0.4
%
 
90.1
%
    Total
 
120

 
15,622

 
100.0
%
 
95.4
%
 
115

 
15,138

 
100.0
%
 
95.6
%
Certain Unconsolidated Properties are encumbered by non-recourse mortgage loans of $1.6 billion, excluding debt issuance costs and premiums and discounts, as of December 31, 2018.
The weighted average annual effective rent for the unconsolidated portfolio of properties, net of tenant concessions, is $21.46 and $20.63 PSF as of December 31, 2018 and 2017, respectively.

19



The following table summarizes the largest tenants occupying our shopping centers for Consolidated Properties plus our pro-rata share of Unconsolidated Properties, as of December 31, 2018, based upon a percentage of total annualized base rent (GLA and dollars in thousands):
Tenant
 
GLA
 
Percent of Company Owned GLA
 
Annualized Base Rent
 
Percent of Annualized Base Rent
 
Number of Leased Stores
Publix
 
2,839
 
6.5%
 
$
29,341

 
3.2%
 
70
Kroger Co.
 
2,855
 
6.6%
 
27,632

 
3.0%
 
56
Albertsons Companies, Inc.
 
1,833
 
4.2%
 
25,871

 
2.8%
 
47
Whole Foods
 
1,053
 
2.4%
 
21,845

 
2.4%
 
32
TJX Companies
 
1,282
 
3.0%
 
21,277

 
2.3%
 
59
CVS
 
662
 
1.5%
 
14,222

 
1.6%
 
57
Ahold/Delhaize
 
563
 
1.3%
 
13,202

 
1.4%
 
16
Bed Bath & Beyond
 
594
 
1.4%
 
9,956

 
1.1%
 
22
Nordstrom
 
320
 
0.7%
 
8,755

 
1.0%
 
9
Ross Dress For Less
 
551
 
1.3%
 
8,548

 
0.9%
 
25
PETCO
 
352
 
0.8%
 
8,443

 
0.9%
 
43
L.A. Fitness Sports Club
 
423
 
1.0%
 
8,389

 
0.9%
 
12
Trader Joe's
 
258
 
0.6%
 
8,039

 
0.9%
 
26
JAB Holding Company (1)
 
181
 
0.4%
 
6,733

 
0.7%
 
62
Starbucks
 
140
 
0.3%
 
6,697

 
0.7%
 
101
Wells Fargo Bank
 
132
 
0.3%
 
6,620

 
0.7%
 
52
Gap
 
196
 
0.5%
 
6,592

 
0.7%
 
15
Walgreens
 
288
 
0.7%
 
6,412

 
0.7%
 
27
Target
 
570
 
1.3%
 
6,365

 
0.7%
 
6
Bank of America
 
119
 
0.3%
 
6,167

 
0.7%
 
40
JPMorgan Chase Bank
 
108
 
0.2%
 
5,940

 
0.7%
 
34
H.E.B.
 
344
 
0.8%
 
5,844

 
0.6%
 
5
Kohl's
 
612
 
1.4%
 
5,645

 
0.6%
 
8
Dick's Sporting Goods
 
340
 
0.8%
 
5,388

 
0.6%
 
7
Ulta
 
169
 
0.4%
 
5,049

 
0.6%
 
19
Top 25 Tenants
 
16,784
 
38.7%
 
278,972
 
30.4%
 
850
 
 
 
 
 
 
 
 
 
 
 
(1) JAB Holding Company includes Panera, Einstein Bros Bagels, Peet's' Coffee & Tea, and Krispy Kreme
Our leases for tenant space under 10,000 square feet generally have initial terms ranging from three to seven years. Leases greater than 10,000 square feet generally have initial lease terms in excess of five years, mostly comprised of anchor tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. Our leases typically provide for the payment of fixed minimum rent, the tenant's pro-rata share of real estate taxes, insurance, and common area maintenance (“CAM”) expenses, and reimbursement for utility costs if not directly metered.

20



The following table summarizes pro-rata lease expirations for the next ten years and thereafter, for our Consolidated and Unconsolidated Properties, assuming no tenants renew their leases (GLA and dollars in thousands):
Lease Expiration Year
 
Number of Tenants with Expiring Leases
 
Pro-rata Expiring GLA
 
Percent of Total Company GLA
 
In Place Base Rent Expiring Under Leases
 
Percent of Base Rent
 
Pro-rata Expiring Average Base Rent
(1)
 
549

 
321

 
0.8
%
 
$
8,569

 
1.0
%
 
$
26.72

2019
 
1,014

 
3,146

 
7.7
%
 
65,555

 
7.4
%
 
20.84

2020
 
1,335

 
4,815

 
11.9
%
 
103,395

 
11.7
%
 
21.47

2021
 
1,301

 
5,102

 
12.6
%
 
105,970

 
11.9
%
 
20.77

2022
 
1,271

 
5,535

 
13.6
%
 
121,984

 
13.8
%
 
22.04

2023
 
1,136

 
4,456

 
11.0
%
 
106,188

 
12.0
%
 
23.83

2024
 
620

 
3,573

 
8.8
%
 
78,781

 
8.9
%
 
22.05

2025
 
373

 
1,888

 
4.6
%
 
49,747

 
5.6
%
 
26.35

2026
 
325

 
1,972

 
4.8
%
 
48,486

 
5.4
%
 
24.59

2027
 
291

 
1,892

 
4.7
%
 
42,762

 
4.8
%
 
22.60

2028
 
359

 
2,182

 
5.4
%
 
50,727

 
5.7
%
 
23.25

Thereafter
 
351

 
5,738

 
14.1
%
 
104,319

 
11.8
%
 
18.18

Total
 
8,925

 
40,620

 
100.0
%
 
$
886,483

 
100.0
%
 
$
21.82

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Leases currently under month-to-month rent or in process of renewal.
During 2019, we have a total of 1,014 leases expiring, representing 3.1 million square feet of GLA. These expiring leases have an average base rent of $20.84 PSF. The average base rent of new leases signed during 2018 was $27.15 PSF. During periods of recession or when occupancy is low, tenants have more bargaining power, which may result in rental rate declines on new or renewal leases. In periods of recovery and/or when occupancy levels are high, landlords have more bargaining power, which generally results in rental rate growth on new and renewal leases. Based on current economic trends and expectations, the quality and mix of tenants in our centers, and pro-rata percent leased of 95.6%, we expect average base rent on new and renewal leases during 2019 to meet or exceed average rental rates on leases expiring in 2019. Exceptions may arise in certain geographic areas or at specific shopping centers based on the local economic situation, competition, location, quality, and size of the space being leased, among other factors. Additionally, significant changes or uncertainties affecting micro- or macroeconomic climates may cause significant changes to our current expectations.


21



See the following property table and also see Item 7, Management's Discussion and Analysis, for further information about our Consolidated and Unconsolidated Properties.

Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
200 Potrero
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
1928
 
$—
 
31
 
100.0%
 
$12.98
 
--
4S Commons Town Center
 
San Diego-Carlsbad
 
CA
 
85%
 
2004
 
2004
 
85,000
 
240
 
100.0%
 
33.67
 
Ralphs, Jimbo's...Naturally!
Amerige Heights Town Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2000
 
2000
 
 
89
 
100.0%
 
29.75
 
Albertsons, (Target)
Balboa Mesa Shopping Center
 
San Diego-Carlsbad
 
CA
 
 
 
2012
 
1969
 
 
207
 
100.0%
 
25.83
 
Von's Food & Drug, Kohl's
Bayhill Shopping Center
 
San Francisco-Oakland-Hayward
 
CA
 
40%
 
2005
 
1990/2018
 
19,964
 
122
 
95.7%
 
25.02
 
Mollie Stone's Market
Blossom Valley
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
20%
 
1999
 
1990
 
22,300
 
93
 
96.7%
 
26.77
 
Safeway
Brea Marketplace (6)
 
Los Angeles-Long Beach-Anaheim
 
CA
 
40%
 
2005
 
1987
 
45,026
 
352
 
99.2%
 
19.24
 
Sprout's Markets, Target, 24 Hour Fitness
Circle Center West
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2017
 
1989
 
9,864
 
64
 
100.0%
 
27.67
 
--
Clayton Valley Shopping Center
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2003
 
2004
 
 
260
 
91.5%
 
22.29
 
Grocery Outlet, Orchard Supply Hardware
Corral Hollow
 
Stockton-Lodi
 
CA
 
25%
 
2000
 
2000
 
 
167
 
100.0%
 
17.48
 
Safeway, Orchard Supply & Hardware
Costa Verde Center
 
San Diego-Carlsbad
 
CA
 
 
 
1999
 
1988
 
 
179
 
89.5%
 
34.68
 
Bristol Farms
Culver Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2017
 
1950
 
 
217
 
95.7%
 
31.59
 
Ralphs, Best Buy, LA Fitness
Diablo Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1982
 
 
63
 
100.0%
 
40.11
 
(Safeway)
El Camino Shopping Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1995
 
 
136
 
97.7%
 
37.41
 
Bristol Farms, Trader Joe's
El Cerrito Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2000
 
2000
 
 
256
 
97.0%
 
29.83
 
(Lucky's), Trader Joe's
El Norte Pkwy Plaza
 
San Diego-Carlsbad
 
CA
 
 
 
1999
 
1984
 
 
91
 
97.0%
 
18.53
 
Von's Food & Drug
Encina Grande
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1965
 
 
106
 
100.0%
 
31.43
 
Whole Foods
Five Points Shopping Center
 
Santa Maria-Santa Barbara
 
CA
 
40%
 
2005
 
1960
 
25,495
 
145
 
98.7%
 
28.66
 
Smart & Final
Folsom Prairie City Crossing
 
Sacramento--Roseville--Arden-Arcade
 
CA
 
 
 
1999
 
1999
 
 
90
 
100.0%
 
20.90
 
Safeway
French Valley Village Center
 
Riverside-San Bernardino-Ontario
 
CA
 
 
 
2004
 
2004
 
 
99
 
98.6%
 
26.79
 
Stater Bros.
Friars Mission Center
 
San Diego-Carlsbad
 
CA
 
 
 
1999
 
1989
 
 
147
 
99.1%
 
35.09
 
Ralphs
Gateway 101
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2008
 
2008
 
 
92
 
100.0%
 
32.05
 
(Home Depot), (Best Buy), Target, Nordstrom Rack
Gelson's Westlake Market Plaza
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
2002
 
2002
 
 
85
 
95.7%
 
27.98
 
Gelson's Markets
Golden Hills Plaza
 
San Luis Obispo-Paso Robles-Arroyo Grande
 
CA
 
 
 
2006
 
2006
 
 
244
 
97.5%
 
7.58
 
Lowe's
Granada Village
 
Los Angeles-Long Beach-Anaheim
 
CA
 
40%
 
2005
 
1965
 
50,000
 
226
 
98.8%
 
23.88
 
Sprout's Markets
Hasley Canyon Village
 
Los Angeles-Long Beach-Anaheim
 
CA
 
20%
 
2003
 
2003
 
16,000
 
66
 
100.0%
 
25.43
 
Ralphs
Heritage Plaza
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1981
 
 
230
 
100.0%
 
37.39
 
Ralphs
Jefferson Square
 
Riverside-San Bernardino-Ontario
 
CA
 
 
 
2007
 
2007
 
 
38
 
48.9%
 
16.07
 
--
Laguna Niguel Plaza
 
Los Angeles-Long Beach-Anaheim
 
CA
 
40%
 
2005
 
1985
 
 
42
 
100.0%
 
28.54
 
(Albertsons)
Marina Shores
 
Los Angeles-Long Beach-Anaheim
 
CA
 
20%
 
2008
 
2001
 
10,489
 
68
 
100.0%
 
36.21
 
Whole Foods
Mariposa Shopping Center
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
40%
 
2005
 
1957/2018
 
19,309
 
127
 
97.7%
 
19.98
 
Safeway
Morningside Plaza
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1996
 
 
91
 
95.7%
 
23.12
 
Stater Bros.
Navajo Shopping Center
 
San Diego-Carlsbad
 
CA
 
40%
 
2005
 
1964
 
7,870
 
102
 
100.0%
 
14.55
 
Albertsons
Newland Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1985
 
 
152
 
100.0%
 
26.17
 
Albertsons

22




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Oak Shade Town Center
 
Sacramento--Roseville--Arden-Arcade
 
CA
 
 
 
2011
 
1998
 
7,570
 
104
 
96.3%
 
22.67
 
Safeway
Oakbrook Plaza
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
1999
 
1982
 
 
83
 
98.8%
 
20.83
 
Gelson's Markets
Parnassus Heights Medical
 
San Francisco-Oakland-Hayward
 
CA
 
50%
 
2017
 
1968
 
 
146
 
99.6%
 
83.75
 
Central Parking System
Persimmon Place
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2014
 
2014
 
 
153
 
100.0%
 
35.03
 
Whole Foods, Nordstrom Rack
Plaza Escuela
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
2002
 
 
155
 
98.8%
 
44.89
 
--
Plaza Hermosa
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1984
 
 
95
 
92.8%
 
26.11
 
Von's Food & Drug
Pleasant Hill Shopping Center
 
San Francisco-Oakland-Hayward
 
CA
 
40%
 
2005
 
1970
 
50,000
 
227
 
100.0%
 
22.77
 
Target, Burlington
Pleasanton Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
1981
 
 
163
 
76.8%
 
11.08
 
JCPenney
Point Loma Plaza
 
San Diego-Carlsbad
 
CA
 
40%
 
2005
 
1987
 
24,901
 
205
 
98.8%
 
22.70
 
Von's Food & Drug
Potrero Center
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
1968
 
 
227
 
83.5%
 
33.82
 
Safeway
Powell Street Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2001
 
1987
 
 
166
 
91.2%
 
34.56
 
Trader Joe's
Raley's Supermarket
 
Sacramento--Roseville--Arden-Arcade
 
CA
 
20%
 
2007
 
1964
 
 
63
 
100.0%
 
12.50
 
Raley's
Ralphs Circle Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2017
 
1983
 
 
60
 
100.0%
 
18.33
 
Ralphs
Rancho San Diego Village
 
San Diego-Carlsbad
 
CA
 
40%
 
2005
 
1981
 
21,468
 
153
 
94.6%
 
22.23
 
Smart & Final
Rona Plaza
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1989
 
 
52
 
100.0%
 
21.04
 
Superior Super Warehouse
San Carlos Marketplace
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
1999
 
 
154
 
100.0%
 
35.23
 
TJ Maxx, Best Buy
Scripps Ranch Marketplace
 
San Diego-Carlsbad
 
CA
 
 
 
2017
 
2017
 
27,000
 
132
 
100.0%
 
30.49
 
Vons
San Leandro Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1982
 
 
50
 
100.0%
 
36.54
 
(Safeway)
Seal Beach
 
Los Angeles-Long Beach-Anaheim
 
CA
 
20%
 
2002
 
1966
 
2,200
 
97
 
95.7%
 
25.62
 
Von's Food & Drug
Sequoia Station
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1996
 
 
103
 
100.0%
 
40.70
 
(Safeway)
Serramonte Center
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
1968
 
 
1,074
 
97.4%
 
24.74
 
Macy's, Target, Dick's Sporting Goods, JCPenney, Dave & Buster's, Nordstrom Rack
Shoppes at Homestead
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
 
 
1999
 
1983
 
 
113
 
100.0%
 
23.10
 
(Orchard Supply Hardware)
Silverado Plaza
 
Napa
 
CA
 
40%
 
2005
 
1974
 
9,639
 
85
 
99.0%
 
17.77
 
Nob Hill
Snell & Branham Plaza
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
40%
 
2005
 
1988
 
12,867
 
92
 
100.0%
 
19.20
 
Safeway
South Bay Village
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2012
 
2012
 
 
108
 
100.0%
 
20.31
 
Wal-Mart, Orchard Supply Hardware
Talega Village Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2017
 
2007
 
 
102
 
100.0%
 
22.43
 
Ralphs
Tassajara Crossing
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1990
 
 
146
 
99.3%
 
24.29
 
Safeway
The Hub Hillcrest Market
 
San Diego-Carlsbad
 
CA
 
 
 
2012
 
1990
 
 
149
 
95.2%
 
38.78
 
Ralphs, Trader Joe's
The Marketplace Shopping Ctr
 
Sacramento--Roseville--Arden-Arcade
 
CA
 
 
 
2017
 
1990
 
 
111
 
96.7%
 
24.80
 
Safeway
Town and Country Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
9.4%
 
2018
 
1962/1992
 
90,000
 
230
 
40.0%
 
38.88
 
Whole Foods
Tustin Legacy
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2016
 
2017
 
 
112
 
100.0%
 
31.57
 
Stater Bros.
Twin Oaks Shopping Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
40%
 
2005
 
1978/2018
 
9,507
 
98
 
98.2%
 
20.16
 
Ralphs
Twin Peaks
 
San Diego-Carlsbad
 
CA
 
 
 
1999
 
1988
 
 
208
 
100.0%
 
20.84
 
Target, Atlas International Market
Valencia Crossroads
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2002
 
2003
 
 
173
 
100.0%
 
26.63
 
Whole Foods, Kohl's
Village at La Floresta
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2014
 
2014
 
 
87
 
100.0%
 
33.89
 
Whole Foods
Von's Circle Center
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
2017
 
1972
 
7,699
 
151
 
100.0%
 
21.87
 
Von's, Ross Dress for Less
West Park Plaza
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
 
 
1999
 
1996
 
 
88
 
100.0%
 
18.13
 
Safeway

23




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Westlake Village Plaza and Center
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
1999
 
1975
 
 
201
 
97.4%
 
45.50
 
Von's Food & Drug and Sprouts
Willows Shopping Center (6)
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
2017
 
2015
 
 
249
 
88.9%
 
29.53
 
--
Woodman Van Nuys
 
Los Angeles-Long Beach-Anaheim
 
CA
 
 
 
1999
 
1992
 
 
108
 
100.0%
 
15.90
 
El Super
Woodside Central
 
San Francisco-Oakland-Hayward
 
CA
 
 
 
1999
 
1993
 
 
81
 
98.5%
 
25.08
 
(Target)
Ygnacio Plaza
 
San Francisco-Oakland-Hayward
 
CA
 
40%
 
2005
 
1968
 
26,179
 
110
 
100.0%
 
37.44
 
Sports Basement
Applewood Shopping Center
 
Denver-Aurora-Lakewood
 
CO
 
40%
 
2005
 
1956
 
 
353
 
90.9%
 
13.27
 
King Soopers, Hobby Lobby
Alcove On Arapahoe (fka Arapahoe Village)
 
Boulder
 
CO
 
40%
 
2005
 
1957
 
13,428
 
159
 
95.0%
 
18.53
 
Safeway
Belleview Square
 
Denver-Aurora-Lakewood
 
CO
 
 
 
2004
 
1978
 
 
117
 
100.0%
 
20.06
 
King Soopers
Boulevard Center
 
Denver-Aurora-Lakewood
 
CO
 
 
 
1999
 
1986
 
 
79
 
74.2%
 
30.47
 
(Safeway)
Buckley Square
 
Denver-Aurora-Lakewood
 
CO
 
 
 
1999
 
1978
 
 
116
 
96.4%
 
11.40
 
King Soopers
Centerplace of Greeley III Phase I
 
Greeley
 
CO
 
 
 
2007
 
2007
 
 
119
 
100.0%
 
12.07
 
Hobby Lobby
Cherrywood Square
 
Denver-Aurora-Lakewood
 
CO
 
40%
 
2005
 
1978
 
4,145
 
97
 
96.3%
 
10.24
 
King Soopers
Crossroads Commons
 
Boulder
 
CO
 
20%
 
2001
 
1986
 
15,922
 
143
 
98.7%
 
27.55
 
Whole Foods
Crossroads Commons II
 
Boulder
 
CO
 
20%
 
2018
 
1995
 
 
20
 
47.0%
 
29.24
 
(Whole Foods, Barnes & Noble)
Falcon Marketplace
 
Colorado Springs
 
CO
 
 
 
2005
 
2005
 
 
22
 
93.8%
 
23.01
 
(Wal-Mart)
Hilltop Village
 
Denver-Aurora-Lakewood
 
CO
 
 
 
2002
 
2003
 
 
100
 
100.0%
 
11.23
 
King Soopers
Kent Place
 
Denver-Aurora-Lakewood
 
CO
 
50%
 
2011
 
2011
 
8,250
 
48
 
100.0%
 
20.76
 
King Soopers
Littleton Square
 
Denver-Aurora-Lakewood
 
CO
 
 
 
1999
 
1997
 
 
99
 
95.4%
 
10.36
 
King Soopers
Lloyd King Center
 
Denver-Aurora-Lakewood
 
CO
 
 
 
1998
 
1998
 
 
83
 
98.3%
 
12.06
 
King Soopers
Marketplace at Briargate
 
Colorado Springs
 
CO
 
 
 
2006
 
2006
 
 
29
 
90.0%
 
32.24
 
(King Soopers)
Monument Jackson Creek
 
Colorado Springs
 
CO
 
 
 
1998
 
1999
 
 
85
 
100.0%
 
12.10
 
King Soopers
Ralston Square Shopping Center
 
Denver-Aurora-Lakewood
 
CO
 
40%
 
2005
 
1977
 
4,145
 
83
 
97.0%
 
11.48
 
King Soopers
Shops at Quail Creek
 
Denver-Aurora-Lakewood
 
CO
 
 
 
2008
 
2008
 
 
38
 
92.5%
 
28.91
 
(King Soopers)
Stroh Ranch
 
Denver-Aurora-Lakewood
 
CO
 
 
 
1998
 
1998
 
 
93
 
100.0%
 
13.32
 
King Soopers
Woodmen Plaza
 
Colorado Springs
 
CO
 
 
 
1998
 
1998
 
 
116
 
94.4%
 
13.21
 
King Soopers
22 Crescent Road
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1984
 
 
4
 
100.0%
 
60.00
 
--
91 Danbury Road
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1965
 
 
5
 
100.0%
 
27.45
 
--
Black Rock
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
1996
 
20,000
 
98
 
97.8%
 
29.14
 
--
Brick Walk (6)
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
2007
 
33,000
 
123
 
88.3%
 
47.76
 
--
Brookside Plaza
 
Hartford-West Hartford-East Hartford
 
CT
 
 
 
2017
 
1985
 
 
217
 
91.4%
 
14.57
 
ShopRite
Compo Acres Shopping Center
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1960
 
 
43
 
100.0%
 
49.45
 
Trader Joe's
Copps Hill Plaza
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1979
 
13,293
 
185
 
100.0%
 
14.19
 
Stop & Shop, Kohl's
Corbin's Corner
 
Hartford-West Hartford-East Hartford
 
CT
 
40%
 
2005
 
1962
 
37,899
 
186
 
80.1%
 
34.53
 
Trader Joe's, Best Buy, The Tile Shop
Danbury Green
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1985
 
 
124
 
100.0%
 
23.99
 
Trader Joe's
Darinor Plaza (6)
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1978
 
 
153
 
100.0%
 
18.96
 
Kohl's
Fairfield Center (6)
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
2000
 
 
94
 
89.6%
 
34.74
 
--
Post Road Plaza
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1978
 
 
20
 
100.0%
 
53.92
 
Trader Joe's

24




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Southbury Green
 
New Haven-Milford
 
CT
 
 
 
2017
 
1979
 
 
156
 
96.4%
 
22.66
 
ShopRite
The Village Center
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1973
 
13,434
 
90
 
84.5%
 
40.72
 
The Fresh Market
Walmart Norwalk
 
Bridgeport-Stamford-Norwalk
 
CT
 
 
 
2017
 
1956
 
 
142
 
100.0%
 
0.56
 
Wal-Mart
Shops at The Columbia
 
Washington-Arlington-Alexandria
 
DC
 
25%
 
2006
 
2006
 
 
23
 
85.8%
 
41.19
 
Trader Joe's
Spring Valley Shopping Center
 
Washington-Arlington-Alexandria
 
DC
 
40%
 
2005
 
1930
 
12,008
 
17
 
82.4%
 
113.49
 
--
Pike Creek
 
Philadelphia-Camden-Wilmington
 
DE
 
 
 
1998
 
1981
 
 
232
 
95.6%
 
14.88
 
Acme Markets, K-Mart
Shoppes of Graylyn
 
Philadelphia-Camden-Wilmington
 
DE
 
40%
 
2005
 
1971
 
 
64
 
90.1%
 
23.78
 
--
Alafaya Village
 
Orlando-Kissimmee-Sanford
 
FL
 
 
 
2017
 
1986
 
 
38
 
93.9%
 
21.93
 
(Lucky's)
Anastasia Plaza
 
Jacksonville
 
FL
 
 
 
1993
 
1988
 
 
102
 
95.9%
 
13.67
 
Publix
Atlantic Village
 
Jacksonville
 
FL
 
 
 
2017
 
1984
 
 
105
 
92.5%
 
16.88
 
LA Fitness
Aventura Shopping Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1994
 
1974
 
 
97
 
98.9%
 
36.74
 
Publix
Aventura Square (6)
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1991
 
7,083
 
144
 
79.3%
 
37.88
 
Bed, Bath & Beyond
Banco Popular Building
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1971
 
 
33
 
33.4%
 
25.74
 
--
Berkshire Commons
 
Naples-Immokalee-Marco Island
 
FL
 
 
 
1994
 
1992
 
 
110
 
97.5%
 
14.29
 
Publix
Bird 107 Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1962
 
 
40
 
100.0%
 
20.25
 
--
Bird Ludlum
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1988
 
 
192
 
98.5%
 
23.22
 
Winn-Dixie
Bloomingdale Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1998
 
1987/2018
 
 
254
 
90.8%
 
15.34
 
Publix, Bealls
Bluffs Square Shoppes
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1986
 
 
124
 
96.3%
 
14.33
 
Publix
Boca Village Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1978
 
 
92
 
97.6%
 
22.19
 
Publix Greenwise
Boynton Lakes Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1997
 
1993
 
 
110
 
94.9%
 
16.62
 
Publix
Boynton Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1978
 
 
105
 
94.4%
 
21.59
 
Publix
Brooklyn Station on Riverside
 
Jacksonville
 
FL
 
 
 
2013
 
2013
 
 
50
 
100.0%
 
26.21
 
The Fresh Market
Caligo Crossing
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2007
 
2007
 
 
11
 
35.0%
 
54.73
 
(Kohl's)
Carriage Gate
 
Tallahassee
 
FL
 
 
 
1994
 
1978
 
 
73
 
100.0%
 
22.60
 
Trader Joe's
Cashmere Corners
 
Port St. Lucie
 
FL
 
 
 
2017
 
2001
 
 
86
 
83.7%
 
13.65
 
Wal-Mart
Charlotte Square
 
Punta Gorda
 
FL
 
 
 
2017
 
1980
 
 
91
 
78.3%
 
10.38
 
Wal-Mart
Chasewood Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1993
 
1986
 
 
151
 
99.0%
 
25.60
 
Publix
Concord Shopping Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1962
 
27,750
 
309
 
95.4%
 
12.22
 
Winn-Dixie, Home Depot
Coral Reef Shopping Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1968
 
 
75
 
98.8%
 
31.12
 
Aldi
Corkscrew Village
 
Cape Coral-Fort Myers
 
FL
 
 
 
2007
 
1997
 
 
82
 
95.3%
 
13.84
 
Publix
Country Walk Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
30%
 
2017
 
1985
 
16,000
 
101
 
91.0%
 
19.85
 
Publix
Countryside Shops
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1986
 
 
193
 
93.2%
 
18.65
 
Publix, Stein Mart
Courtyard Shopping Center
 
Jacksonville
 
FL
 
 
 
1993
 
1987
 
 
137
 
100.0%
 
3.50
 
(Publix), Target
Fleming Island
 
Jacksonville
 
FL
 
 
 
1998
 
2000
 
 
132
 
97.5%
 
15.96
 
Publix, (Target)
Fountain Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2013
 
2013
 
 
177
 
96.4%
 
25.80
 
Publix, (Target)
Garden Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1997
 
1991
 
 
90
 
100.0%
 
18.01
 
Publix
Glengary Shoppes
 
North Port-Sarasota-Bradenton
 
FL
 
 
 
2017
 
1995
 
 
93
 
100.0%
 
21.93
 
Best Buy

25




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Shoppes of Grande Oak
 
Cape Coral-Fort Myers
 
FL
 
 
 
2000
 
2000
 
 
79
 
100.0%
 
16.26
 
Publix
Greenwood Shopping Centre
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1982
 
 
133
 
92.0%
 
15.32
 
Publix
Hammocks Town Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1987
 
 
184
 
98.7%
 
17.22
 
Publix, Metro-Dade Public Library, (Kendall Ice Arena)
Hibernia Pavilion
 
Jacksonville
 
FL
 
 
 
2006
 
2006
 
 
51
 
89.6%
 
15.95
 
Publix
Homestead McDonald's
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
2014
 
 
4
 
100.0%
 
27.74
 
--
John's Creek Center
 
Jacksonville
 
FL
 
20%
 
2003
 
2004
 
9,000
 
75
 
100.0%
 
15.35
 
Publix
Julington Village
 
Jacksonville
 
FL
 
20%
 
1999
 
1999
 
10,000
 
82
 
100.0%
 
16.19
 
Publix
Kirkman Shoppes
 
Orlando-Kissimmee-Sanford
 
FL
 
 
 
2017
 
1973
 
 
115
 
96.7%
 
23.34
 
LA Fitness
Lake Mary Centre
 
Orlando-Kissimmee-Sanford
 
FL
 
 
 
2017
 
1988
 
 
360
 
93.7%
 
15.65
 
Academy Sports, Hobby Lobby, LA Fitness
Lantana Outparcels
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1976
 
 
17
 
100.0%
 
18.28
 
--
Mandarin Landing
 
Jacksonville
 
FL
 
 
 
2017
 
1976
 
 
140
 
90.0%
 
18.06
 
Whole Foods
Millhopper Shopping Center
 
Gainesville
 
FL
 
 
 
1993
 
1974
 
 
83
 
100.0%
 
17.40
 
Publix
Naples Walk Shopping Center
 
Naples-Immokalee-Marco Island
 
FL
 
 
 
2007
 
1999
 
 
125
 
91.8%
 
16.42
 
Publix
Newberry Square
 
Gainesville
 
FL
 
 
 
1994
 
1986
 
 
181
 
91.5%
 
7.70
 
Publix, K-Mart
Nocatee Town Center
 
Jacksonville
 
FL
 
 
 
2007
 
2007
 
 
107
 
100.0%
 
19.77
 
Publix
Northgate Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
1995
 
 
75
 
100.0%
 
15.02
 
Publix
Oakleaf Commons
 
Jacksonville
 
FL
 
 
 
2006
 
2006
 
 
74
 
98.1%
 
14.96
 
Publix
Ocala Corners (6)
 
Tallahassee
 
FL
 
 
 
2000
 
2000
 
4,148
 
87
 
98.6%
 
14.90
 
Publix
Old St Augustine Plaza
 
Jacksonville
 
FL
 
 
 
1996
 
1990
 
 
256
 
100.0%
 
9.97
 
Publix, Burlington Coat Factory, Hobby Lobby
Pablo Plaza
 
Jacksonville
 
FL
 
 
 
2017
 
1974
 
 
158
 
100.0%
 
16.63
 
Whole Foods
Pavillion
 
Naples-Immokalee-Marco Island
 
FL
 
 
 
2017
 
1982
 
 
168
 
90.2%
 
21.23
 
LA Fitness
Shoppes of Pebblebrook Plaza
 
Naples-Immokalee-Marco Island
 
FL
 
50%
 
2000
 
2000
 
 
77
 
100.0%
 
15.27
 
Publix
Pine Island
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1999
 
 
255
 
96.9%
 
14.58
 
Publix, Burlington Coat Factory
Pine Ridge Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1986
 
 
118
 
97.0%
 
17.86
 
The Fresh Market
Pine Tree Plaza
 
Jacksonville
 
FL
 
 
 
1997
 
1999
 
 
63
 
90.4%
 
14.07
 
Publix
Pinecrest Place (6) (7)
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
2017
 
 
70
 
87.3%
 
38.79
 
Whole Foods, (Target)
Plaza Venezia
 
Orlando-Kissimmee-Sanford
 
FL
 
20%
 
2016
 
2000
 
36,500
 
202
 
99.5%
 
26.29
 
Publix
Point Royale Shopping Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1970
 
 
202
 
98.2%
 
15.28
 
Winn-Dixie, Burlington Coat Factory
Prosperity Centre
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1993
 
 
124
 
93.5%
 
21.54
 
Bed, Bath & Beyond
Regency Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1993
 
1986
 
 
352
 
97.5%
 
18.48
 
AMC Theater, (Best Buy), (Macdill)
Ryanwood Square
 
Sebastian-Vero Beach
 
FL
 
 
 
2017
 
1987
 
 
115
 
88.8%
 
11.25
 
Publix
Salerno Village
 
Port St. Lucie
 
FL
 
 
 
2017
 
1987
 
 
5
 
100.0%
 
16.53
 
--
Sawgrass Promenade
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1982
 
 
107
 
91.5%
 
12.51
 
Publix
Seminole Shoppes
 
Jacksonville
 
FL
 
50%
 
2009
 
2009
 
8,865
 
87
 
98.4%
 
22.85
 
Publix
Sheridan Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1973
 
 
506
 
94.1%
 
18.21
 
Publix, Kohl's, LA Fitness
Shoppes @ 104
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1998
 
1990/2018
 
 
112
 
100.0%
 
18.93
 
Winn-Dixie

26




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Shoppes at Bartram Park
 
Jacksonville
 
FL
 
50%
 
2005
 
2004
 
 
134
 
99.0%
 
20.26
 
Publix, (Kohl's)
Shoppes at Lago Mar
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1995
 
 
83
 
95.8%
 
15.51
 
Publix
Shoppes at Sunlake Centre
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2017
 
2008
 
 
98
 
100.0%
 
21.11
 
Publix
Shoppes of Jonathan's Landing
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1997
 
 
27
 
100.0%
 
24.61
 
(Publix)
Shoppes of Oakbrook
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1974
 
4,626
 
200
 
98.2%
 
16.69
 
Publix, Stein Mart
Shoppes of Silver Lakes
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1995
 
 
127
 
92.6%
 
19.06
 
Publix
Shoppes of Sunset
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1979
 
 
22
 
77.7%
 
25.95
 
--
Shoppes of Sunset II
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1980
 
 
28
 
67.6%
 
22.92
 
--
Shops at John's Creek
 
Jacksonville
 
FL
 
 
 
2003
 
2004
 
 
15
 
100.0%
 
23.11
 
--
Shops at Skylake
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1999
 
 
287
 
91.4%
 
22.44
 
Publix, LA Fitness
South Beach Regional
 
Jacksonville
 
FL
 
 
 
2017
 
1990
 
 
308
 
98.8%
 
14.97
 
Trader Joe's, Home Depot, Steain Mart
South Point
 
Sebastian-Vero Beach
 
FL
 
 
 
2017
 
2003
 
 
65
 
95.7%
 
16.80
 
Publix
Starke (6)
 
Other
 
FL
 
 
 
2000
 
2000
 
 
13
 
100.0%
 
25.56
 
--
Suncoast Crossing (6)
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
2007
 
 
118
 
97.6%
 
5.29
 
Kohl's, (Target)
Tamarac Town Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1987
 
 
125
 
73.8%
 
12.97
 
Publix
The Grove
 
Orlando-Kissimmee-Sanford
 
FL
 
30%
 
2017
 
2004
 
22,500
 
152
 
100.0%
 
16.77
 
Publix, LA Fitness
The Plaza at St. Lucie West
 
Port St. Lucie
 
FL
 
 
 
2017
 
2006
 
 
27
 
81.7%
 
24.02
 
--
The Village at Hunter's Lake (7)
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2018
 
2018
 
 
72
 
68.4%
 
21.54
 
0
Town and Country
 
Orlando-Kissimmee-Sanford
 
FL
 
 
 
2017
 
1993
 
 
78
 
100.0%
 
10.54
 
Ross Dress for Less
Town Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1997
 
1999
 
 
44
 
100.0%
 
31.91
 
--
Treasure Coast Plaza
 
Sebastian-Vero Beach
 
FL
 
 
 
2017
 
1983
 
2,746
 
134
 
94.7%
 
16.12
 
Publix
Unigold Shopping Center
 
Orlando-Kissimmee-Sanford
 
FL
 
 
 
2017
 
1987
 
 
115
 
95.0%
 
14.91
 
Lucky's
University Commons (6)
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2015
 
2001
 
36,425
 
180
 
100.0%
 
31.62
 
Whole Foods, Nordstrom Rack
Veranda Shoppes
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
30%
 
2017
 
2007
 
9,000
 
45
 
100.0%
 
27.50
 
Publix
Village Center
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1995
 
1993
 
 
187
 
95.7%
 
20.15
 
Publix
Waterstone Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
2005
 
 
61
 
100.0%
 
16.69
 
Publix
Welleby Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1996
 
1982
 
 
110
 
97.0%
 
13.55
 
Publix
Wellington Town Square
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
1996
 
1982
 
 
112
 
100.0%
 
25.46
 
Publix
West Bird Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1977
 
 
100
 
86.5%
 
18.38
 
Publix
West Lake Shopping Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1984
 
 
101
 
95.8%
 
18.84
 
Winn-Dixie
Westchase
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
1998
 
 
79
 
100.0%
 
16.73
 
Publix
Westport Plaza
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
2002
 
2,651
 
47
 
100.0%
 
18.93
 
Publix
Willa Springs
 
Orlando-Kissimmee-Sanford
 
FL
 
20%
 
2000
 
2000
 
16,700
 
90
 
100.0%
 
21.07
 
Publix
Young Circle Shopping Center
 
Miami-Fort Lauderdale-West Palm Beach
 
FL
 
 
 
2017
 
1962
 
 
65
 
94.8%
 
15.12
 
Publix
Ashford Place
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1993
 
 
53
 
100.0%
 
21.75
 
--
Briarcliff La Vista
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1962
 
 
43
 
100.0%
 
20.43
 
--
Briarcliff Village (6)
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1990
 
 
190
 
98.4%
 
16.38
 
Publix

27




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Bridgemill Market
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
2000
 
5,109
 
89
 
86.1%
 
16.03
 
Publix
Brighten Park
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1986
 
 
137
 
95.7%
 
25.90
 
The Fresh Market
Buckhead Court
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1984
 
 
49
 
98.2%
 
26.44
 
--
Buckhead Station
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
1996
 
 
234
 
100.0%
 
24.12
 
Nordstrom Rack, TJ Maxx, Bed, Bath & Beyond
Cambridge Square
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1996
 
1979
 
 
71
 
100.0%
 
15.59
 
Kroger
Chastain Square
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
1981
 
 
92
 
98.4%
 
21.83
 
Publix
Cornerstone Square
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1990
 
 
80
 
100.0%
 
17.24
 
Aldi
Sope Creek Crossing
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1998
 
1991
 
 
99
 
91.9%
 
16.24
 
Publix
Dunwoody Hall
 
Atlanta-Sandy Springs-Roswell
 
GA
 
20%
 
1997
 
1986
 
13,800
 
86
 
83.8%
 
19.89
 
Publix
Dunwoody Village
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1975
 
 
121
 
94.3%
 
19.93
 
The Fresh Market
Howell Mill Village (6)
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2004
 
1984
 
 
92
 
98.6%
 
22.81
 
Publix
Paces Ferry Plaza (6)
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1987
 
 
82
 
99.9%
 
36.70
 
365 by Whole Foods
Piedmont Peachtree Crossing
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
1978
 
 
152
 
84.3%
 
21.30
 
Kroger
Powers Ferry Square
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1987
 
 
101
 
100.0%
 
31.67
 
--
Powers Ferry Village
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1997
 
1994
 
 
79
 
100.0%
 
10.89
 
Publix
Russell Ridge
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
1994
 
1995
 
 
101
 
98.6%
 
13.17
 
Kroger
Sandy Springs
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2012
 
2006
 
 
116
 
92.2%
 
22.79
 
Trader Joe's
The Shops at Hampton Oaks
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
2009
 
 
21
 
56.3%
 
11.18
 
--
Williamsburg at Dunwoody
 
Atlanta-Sandy Springs-Roswell
 
GA
 
 
 
2017
 
1983
 
 
45
 
81.3%
 
25.48
 
--
Civic Center Plaza
 
Chicago-Naperville-Elgin
 
IL
 
40%
 
2005
 
1989
 
22,000
 
265
 
97.1%
 
11.29
 
Super H Mart, Home Depot
Clybourn Commons
 
Chicago-Naperville-Elgin
 
IL
 
 
 
2014
 
1999
 
 
32
 
83.3%
 
37.09
 
--
Glen Oak Plaza
 
Chicago-Naperville-Elgin
 
IL
 
 
 
2010
 
1967
 
 
63
 
96.6%
 
23.98
 
Trader Joe's
Hinsdale
 
Chicago-Naperville-Elgin
 
IL
 
 
 
1998
 
1986
 
 
179
 
93.7%
 
15.43
 
Whole Foods
Mellody Farm (7)
 
Chicago-Naperville-Elgin
 
IL
 
 
 
2017
 
2017
 
 
259
 
78.1%
 
26.46
 
Whole Foods
Riverside Sq & River's Edge
 
Chicago-Naperville-Elgin
 
IL
 
40%
 
2005
 
1986
 
14,369
 
169
 
94.6%
 
17.88
 
Mariano's Fresh Market
Roscoe Square
 
Chicago-Naperville-Elgin
 
IL
 
40%
 
2005
 
1981
 
10,847
 
140
 
100.0%
 
21.43
 
Mariano's Fresh Market
Stonebrook Plaza Shopping Center
 
Chicago-Naperville-Elgin
 
IL
 
40%
 
2005
 
1984
 
7,676
 
96
 
96.9%
 
12.34
 
Jewel-Osco
Westchester Commons
 
Chicago-Naperville-Elgin
 
IL
 
 
 
2001
 
1984
 
 
139
 
91.5%
 
17.95
 
Mariano's Fresh Market
Willow Festival (6)
 
Chicago-Naperville-Elgin
 
IL
 
 
 
2010
 
2007
 
39,505
 
404
 
98.2%
 
17.92
 
Whole Foods, Lowe's
Shops on Main
 
Chicago-Naperville-Elgin
 
IN
 
93%
 
2013
 
2013
 
 
254
 
98.4%
 
15.81
 
Whole Foods, Dick's Sporting Goods
Willow Lake Shopping Center
 
Indianapolis-Carmel-Anderson
 
IN
 
40%
 
2005
 
1987
 
 
86
 
100.0%
 
17.48
 
(Kroger)
Willow Lake West Shopping Center
 
Indianapolis-Carmel-Anderson
 
IN
 
40%
 
2005
 
2001
 
10,000
 
53
 
100.0%
 
25.99
 
Trader Joe's
Ambassador Row
 
Lafayette
 
LA
 
 
 
2017
 
1980
 
 
195
 
93.5%
 
12.17
 
--
Ambassador Row Courtyards
 
Lafayette
 
LA
 
 
 
2017
 
1986
 
 
150
 
81.2%
 
10.03
 
Bed Bath & Beyond
Bluebonnet Village
 
Baton Rouge
 
LA
 
 
 
2017
 
1983
 
 
102
 
88.7%
 
13.54
 
Rouses Market
Elmwood Oaks Shopping Center
 
New Orleans-Metairie
 
LA
 
 
 
2017
 
1989
 
 
136
 
100.0%
 
10.11
 
Academy Sports
Siegen Village
 
Baton Rouge
 
LA
 
 
 
2017
 
1988
 
 
170
 
98.9%
 
11.28
 
--

28




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Fellsway Plaza
 
Boston-Cambridge-Newton
 
MA
 
75%
 
2013
 
1959
 
37,500
 
155
 
100.0%
 
23.19
 
Stop & Shop
Northborough Crossing
 
Worcester
 
MA
 
30%
 
2017
 
2011
 
61,964
 
646
 
98.2%
 
13.13
 
Wegmans, BJ's Wholesale Club, Kohl's,Dick's Sporting Goods, Pottery Barn Outlet
Old Connecticut Path
 
Boston-Cambridge-Newton
 
MA
 
30%
 
2017
 
1994
 
 
80
 
100.0%
 
21.30
 
Stop & Shop
Shaw's at Plymouth
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1993
 
 
60
 
100.0%
 
17.58
 
Shaw's
Shops at Saugus
 
Boston-Cambridge-Newton
 
MA
 
 
 
2006
 
2006
 
 
87
 
94.7%
 
29.69
 
Trader Joe's
Star's at Cambridge
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1953
 
 
66
 
100.0%
 
37.44
 
Star Market
Star's at Quincy
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1965
 
 
101
 
100.0%
 
21.48
 
Star Market
Star's at West Roxbury
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1973
 
 
76
 
100.0%
 
24.71
 
Star Market
The Abbot (fka The Collection at Harvard Square)
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1906
 
 
41
 
86.9%
 
58.16
 
--
Twin City Plaza
 
Boston-Cambridge-Newton
 
MA
 
 
 
2006
 
2004
 
 
285
 
100.0%
 
20.19
 
Shaw's, Marshall's
Whole Foods at Swampscott
 
Boston-Cambridge-Newton
 
MA
 
 
 
2017
 
1967
 
 
36
 
100.0%
 
24.95
 
Whole Foods
Burnt Mills (6)
 
Washington-Arlington-Alexandria
 
MD
 
20%
 
2013
 
2004
 
7,000
 
31
 
89.1%
 
37.65
 
Trader Joe's
Cloppers Mill Village
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1995
 
 
137
 
99.0%
 
18.23
 
Shoppers Food Warehouse
Festival at Woodholme
 
Baltimore-Columbia-Towson
 
MD
 
40%
 
2005
 
1986
 
19,964
 
81
 
98.5%
 
39.03
 
Trader Joe's
Firstfield Shopping Center
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1978
 
 
22
 
100.0%
 
40.29
 
--
King Farm Village Center
 
Washington-Arlington-Alexandria
 
MD
 
25%
 
2004
 
2001
 
 
118
 
93.5%
 
25.38
 
Safeway
Parkville Shopping Center
 
Baltimore-Columbia-Towson
 
MD
 
40%
 
2005
 
1961
 
11,077
 
165
 
89.9%
 
16.71
 
Giant Food
Southside Marketplace
 
Baltimore-Columbia-Towson
 
MD
 
40%
 
2005
 
1990
 
13,773
 
125
 
95.5%
 
20.79
 
Shoppers Food Warehouse
Takoma Park
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1960
 
 
104
 
99.2%
 
13.44
 
Shoppers Food Warehouse
Valley Centre
 
Baltimore-Columbia-Towson
 
MD
 
40%
 
2005
 
1987
 
18,024
 
220
 
97.3%
 
16.99
 
Aldi, TJ Maxx
Village at Lee Airpark (6)
 
Baltimore-Columbia-Towson
 
MD
 
 
 
2005
 
2005
 
 
117
 
99.0%
 
28.95
 
Giant Food, (Sunrise)
Watkins Park Plaza
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1985
 
 
111
 
98.5%
 
26.31
 
LA Fitness
Westwood - Manor Care
 
Washington-Arlington-Alexandria
 
MD
 
 
 
2017
 
1976
 
 
41
 
—%
 
 
--
Westwood Shopping Center
 
Washington-Arlington-Alexandria
 
MD
 
 
 
2017
 
1960
 
 
213
 
94.3%
 
51.30
 
Giant Food
Woodmoor Shopping Center
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1954
 
5,985
 
69
 
98.1%
 
32.37
 
--
Fenton Marketplace
 
Flint
 
MI
 
 
 
1999
 
1999
 
 
97
 
100.0%
 
8.43
 
Family Farm & Home
Apple Valley Square
 
Minneapolis-St. Paul-Bloomington
 
MN
 
25%
 
2006
 
1998
 
 
176
 
100.0%
 
14.72
 
 Jo-Ann Fabrics, Experience Fitness, (Burlington Coat Factory)
Calhoun Commons
 
Minneapolis-St. Paul-Bloomington
 
MN
 
25%
 
2011
 
1999
 
667
 
66
 
100.0%
 
24.46
 
Whole Foods
Colonial Square
 
Minneapolis-St. Paul-Bloomington
 
MN
 
40%
 
2005
 
1959
 
9,282
 
93
 
98.6%
 
24.28
 
Lund's
Rockford Road Plaza
 
Minneapolis-St. Paul-Bloomington
 
MN
 
40%
 
2005
 
1991
 
20,000
 
204
 
100.0%
 
12.99
 
Kohl's
Rockridge Center
 
Minneapolis-St. Paul-Bloomington
 
MN
 
20%
 
2011
 
2006
 
14,500
 
125
 
95.9%
 
13.89
 
Cub Foods
Brentwood Plaza
 
St. Louis
 
MO
 
 
 
2007
 
2002
 
 
60
 
100.0%
 
10.81
 
Schnucks
Bridgeton
 
St. Louis
 
MO
 
 
 
2007
 
2005
 
 
71
 
100.0%
 
12.13
 
Schnucks, (Home Depot)
Dardenne Crossing
 
St. Louis
 
MO
 
 
 
2007
 
1996
 
 
67
 
100.0%
 
10.93
 
Schnucks
Kirkwood Commons
 
St. Louis
 
MO
 
 
 
2007
 
2000
 
8,742
 
210
 
100.0%
 
10.14
 
Wal-Mart, (Target), (Lowe's)

29




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Cameron Village
 
Raleigh
 
NC
 
30%
 
2004
 
1949
 
60,000
 
558
 
98.1%
 
23.13
 
Harris Teeter, The Fresh Market
Carmel Commons
 
Charlotte-Concord-Gastonia
 
NC
 
 
 
1997
 
1979
 
 
133
 
98.5%
 
20.75
 
The Fresh Market
Cochran Commons
 
Charlotte-Concord-Gastonia
 
NC
 
20%
 
2007
 
2003
 
4,691
 
66
 
97.4%
 
16.43
 
Harris Teeter
Market at Colonnade Center
 
Raleigh
 
NC
 
 
 
2009
 
2009
 
 
58
 
100.0%
 
27.47
 
Whole Foods
Glenwood Village
 
Raleigh
 
NC
 
 
 
1997
 
1983
 
 
43
 
100.0%
 
16.68
 
Harris Teeter
Harris Crossing
 
Raleigh
 
NC
 
 
 
2007
 
2007
 
 
65
 
96.0%
 
8.98
 
Harris Teeter
Holly Park
 
Raleigh
 
NC
 
99%
 
2013
 
1969
 
 
160
 
89.6%
 
17.33
 
Trader Joe's
Lake Pine Plaza
 
Raleigh
 
NC
 
 
 
1998
 
1997
 
 
88
 
96.8%
 
12.73
 
Kroger
Midtown East (7)
 
Raleigh
 
NC
 
50%
 
2017
 
2017
 
14,384
 
174
 
84.8%
 
19.02
 
Wegmans
Phillips Place
 
Charlotte-Concord-Gastonia
 
NC
 
50%
 
2012
 
2005
 
40,000
 
133
 
84.3%
 
33.81
 
--
Providence Commons
 
Charlotte-Concord-Gastonia
 
NC
 
25%
 
2010
 
1994
 
 
74
 
100.0%
 
18.55
 
Harris Teeter
Ridgewood Shopping Center
 
Raleigh
 
NC
 
20%
 
2018
 
1951
 
10,182
 
93
 
90.4%
 
16.99
 
Whole Foods
Shops at Erwin Mill
 
Durham-Chapel Hill
 
NC
 
55%
 
2012
 
2012
 
10,000
 
87
 
100.0%
 
18.10
 
Harris Teeter
Shoppes of Kildaire
 
Raleigh
 
NC
 
40%
 
2005
 
1986
 
20,000
 
145
 
96.7%
 
18.69
 
Trader Joe's, Aldi
Southpoint Crossing
 
Durham-Chapel Hill
 
NC
 
 
 
1998
 
1998
 
 
103
 
100.0%
 
16.34
 
Kroger
Sutton Square
 
Raleigh
 
NC
 
20%
 
2006
 
1985
 
 
101
 
98.7%
 
19.36
 
The Fresh Market
Village Plaza
 
Durham-Chapel Hill
 
NC
 
20%
 
2012
 
1975/2018
 
8,000
 
73
 
86.8%
 
19.77
 
Whole Foods
Willow Oaks Crossing
 
Charlotte-Concord-Gastonia
 
NC
 
 
 
2014
 
2014
 
 
69
 
94.9%
 
17.13
 
Publix
Woodcroft Shopping Center
 
Durham-Chapel Hill
 
NC
 
 
 
1996
 
1984
 
 
90
 
98.4%
 
13.45
 
Food Lion
Chimney Rock (6)
 
New York-Newark-Jersey City
 
NJ
 
 
 
2016
 
2016
 
 
218
 
96.9%
 
34.56
 
Whole Foods, Nordstrom Rack
District at Metuchen (6)
 
New York-Newark-Jersey City
 
NJ
 
20%
 
2018
 
2017
 
16,000
 
67
 
100.0%
 
29.29
 
0
Haddon Commons
 
Philadelphia-Camden-Wilmington
 
NJ
 
40%
 
2005
 
1985
 
 
54
 
100.0%
 
13.78
 
Acme Markets
Plaza Square
 
New York-Newark-Jersey City
 
NJ
 
40%
 
2005
 
1990
 
12,887
 
104
 
92.9%
 
22.51
 
Shop Rite
Riverfront Plaza
 
New York-Newark-Jersey City
 
NJ
 
30%
 
2017
 
1997
 
24,000
 
129
 
95.9%
 
25.45
 
ShopRite
101 7th Avenue
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
1930
 
 
57
 
100.0%
 
79.13
 
Barney's New York
1175 Third Avenue
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
1995
 
 
25
 
100.0%
 
116.62
 
The Food Emporium
1225-1239 Second Ave
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
1964
 
 
18
 
100.0%
 
116.47
 
--
90 - 30 Metropolitan Avenue
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
2007
 
 
60
 
93.9%
 
34.27
 
Trader Joe's
Broadway Plaza (6)
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
2014
 
 
147
 
97.2%
 
35.59
 
Aldi
Clocktower Plaza Shopping Ctr (6)
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
1985
 
 
79
 
93.6%
 
48.09
 
Stop & Shop
Gallery At Westbury Plaza
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
2013
 
 
312
 
99.5%
 
48.47
 
Trader Joe's, Nordstrom Rack
Hewlett Crossing I & II
 
New York-Newark-Jersey City
 
NY
 
 
 
2018
 
1954
 
9,559
 
53
 
96.3%
 
35.75
 
Petco
Rivertowns Square
 
New York-Newark-Jersey City
 
NY
 
 
 
2018
 
2016
 
 
116
 
89.8%
 
35.97
 
Brooklyn Harvest Market, Ipic Theaters
The Point at Garden City Park (6)
 
New York-Newark-Jersey City
 
NY
 
 
 
2016
 
1965
 
 
105
 
97.8%
 
21.37
 
King Kullen
Lake Grove Commons
 
New York-Newark-Jersey City
 
NY
 
40%
 
2012
 
2008
 
50,000
 
141
 
100.0%
 
33.96
 
Whole Foods, LA Fitness
The Gallery at Westbury Plaza
 
New York-Newark-Jersey City
 
NY
 
 
 
2017
 
1993
 
88,000
 
394
 
100.0%
 
24.45
 
Wal-Mart, Costco, Marshalls, Total Wine and More
Cherry Grove
 
Cincinnati
 
OH
 
 
 
1998
 
1997
 
 
196
 
98.2%
 
12.04
 
Kroger

30




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
East Pointe
 
Columbus
 
OH
 
 
 
1998
 
1993
 
 
107
 
100.0%
 
10.53
 
Kroger
Hyde Park
 
Cincinnati
 
OH
 
 
 
1997
 
1995
 
 
397
 
99.5%
 
16.29
 
Kroger, Remke Markets
Kroger New Albany Center
 
Columbus
 
OH
 
50%
 
1999
 
1999
 
 
93
 
100.0%
 
12.78
 
Kroger
Northgate Plaza (Maxtown Road)
 
Columbus
 
OH
 
 
 
1998
 
1996
 
 
114
 
100.0%
 
11.51
 
Kroger, (Home Depot)
Red Bank Village
 
Cincinnati
 
OH
 
 
 
2006
 
2006
 
 
176
 
100.0%
 
7.51
 
Wal-Mart
Regency Commons
 
Cincinnati
 
OH
 
 
 
2004
 
2004
 
 
34
 
95.2%
 
25.46
 
--
West Chester Plaza
 
Cincinnati
 
OH
 
 
 
1998
 
1988
 
 
88
 
100.0%
 
9.95
 
Kroger
Corvallis Market Center
 
Corvallis
 
OR
 
 
 
2006
 
2006
 
 
85
 
100.0%
 
21.18
 
Trader Joe's
Greenway Town Center
 
Portland-Vancouver-Hillsboro
 
OR
 
40%
 
2005
 
1979
 
11,311
 
93
 
100.0%
 
14.61
 
Whole Foods
Murrayhill Marketplace
 
Portland-Vancouver-Hillsboro
 
OR
 
 
 
1999
 
1988
 
 
150
 
86.0%
 
18.59
 
Safeway
Northgate Marketplace
 
Medford
 
OR
 
 
 
2011
 
2011
 
 
81
 
100.0%
 
23.40
 
Trader Joe's
Northgate Marketplace Ph II
 
Medford
 
OR
 
 
 
2015
 
2015
 
 
177
 
96.2%
 
16.08
 
 Dick's Sporting Goods
Sherwood Crossroads
 
Portland-Vancouver-Hillsboro
 
OR
 
 
 
1999
 
1999
 
 
88
 
98.4%
 
11.35
 
Safeway
Tanasbourne Market (6)
 
Portland-Vancouver-Hillsboro
 
OR
 
 
 
2006
 
2006
 
 
71
 
100.0%
 
30.11
 
Whole Foods
Walker Center
 
Portland-Vancouver-Hillsboro
 
OR
 
 
 
1999
 
1987
 
 
90
 
100.0%
 
21.08
 
Bed, Bath & Beyond
Allen Street Shopping Center
 
Allentown-Bethlehem-Easton
 
PA
 
40%
 
2005
 
1958
 
 
46
 
100.0%
 
15.10
 
Ahart's Market
City Avenue Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1960
 
 
162
 
94.2%
 
21.08
 
Ross Dress for Less
Gateway Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
 
 
2004
 
1960
 
 
221
 
97.9%
 
31.86
 
Trader Joe's
Hershey (6)
 
Other
 
PA
 
 
 
2000
 
2000
 
 
6
 
100.0%
 
28.00
 
--
Lower Nazareth Commons
 
Allentown-Bethlehem-Easton
 
PA
 
 
 
2007
 
2007
 
 
90
 
98.7%
 
25.74
 
(Wegmans), (Target)
Mercer Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1988
 
10,454
 
91
 
96.7%
 
24.12
 
Weis Markets
Newtown Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1970
 
10,273
 
143
 
88.2%
 
18.71
 
Acme Markets
Stefko Boulevard Shopping Center (6)
 
Allentown-Bethlehem-Easton
 
PA
 
40%
 
2005
 
1976
 
 
134
 
96.1%
 
10.58
 
Valley Farm Market
Warwick Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1999
 
9,192
 
90
 
97.1%
 
21.24
 
Giant Food
Indigo Square (7)
 
Charleston-North Charleston
 
SC
 
 
 
2017
 
2017
 
 
51
 
94.8%
 
28.59
 
--
Merchants Village
 
Charleston-North Charleston
 
SC
 
40%
 
1997
 
1997
 
9,000
 
80
 
100.0%
 
16.68
 
Publix
Harpeth Village Fieldstone
 
Nashville-Davidson--Murfreesboro--Franklin
 
TN
 
 
 
1997
 
1998
 
 
70
 
100.0%
 
15.59
 
Publix
Northlake Village
 
Nashville-Davidson--Murfreesboro--Franklin
 
TN
 
 
 
2000
 
1988
 
 
138
 
98.0%
 
13.98
 
Kroger
Peartree Village
 
Nashville-Davidson--Murfreesboro--Franklin
 
TN
 
 
 
1997
 
1997
 
 
110
 
100.0%
 
19.84
 
Kroger
Alden Bridge
 
Houston-The Woodlands-Sugar Land
 
TX
 
20%
 
2002
 
1998
 
26,000
 
139
 
98.8%
 
20.26
 
Kroger
Bethany Park Place
 
Dallas-Fort Worth-Arlington
 
TX
 
20%
 
1998
 
1998
 
10,200
 
99
 
100.0%
 
11.83
 
Kroger
CityLine Market
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2014
 
2014
 
 
81
 
100.0%
 
27.35
 
Whole Foods
CityLine Market Phase II
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2014
 
2015
 
 
22
 
100.0%
 
26.66
 
--
Cochran's Crossing
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2002
 
1994
 
 
138
 
95.5%
 
18.86
 
Kroger
Hancock
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1998
 
 
410
 
98.9%
 
16.09
 
H.E.B., Sears
Hickory Creek Plaza
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2006
 
2006
 
 
28
 
100.0%
 
26.79
 
(Kroger)

31




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Hillcrest Village
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1991
 
 
15
 
100.0%
 
47.33
 
--
Indian Springs Center
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2002
 
2003
 
 
137
 
100.0%
 
24.38
 
H.E.B.
Keller Town Center
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1999
 
 
120
 
99.0%
 
16.09
 
Tom Thumb
Lebanon/Legacy Center
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2000
 
2002
 
 
56
 
96.5%
 
26.33
 
(Wal-Mart)
Market at Preston Forest
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1990
 
 
96
 
98.9%
 
20.77
 
Tom Thumb
Market at Round Rock
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1987
 
 
123
 
98.6%
 
18.44
 
Sprout's Markets
Market at Springwoods Village
 
Houston-The Woodlands-Sugar Land
 
TX
 
53%
 
2016
 
2016
 
10,309
 
167
 
94.3%
 
15.88
 
Kroger
Mockingbird Common
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1987
 
 
120
 
93.8%
 
17.92
 
Tom Thumb
North Hills
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1995
 
 
144
 
96.4%
 
22.81
 
H.E.B.
Panther Creek
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2002
 
1994
 
 
166
 
98.6%
 
22.81
 
Randall's Food
Prestonbrook
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1998
 
1998
 
 
92
 
93.1%
 
14.08
 
Kroger
Preston Oaks (6)
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2013
 
1991
 
 
104
 
99.5%
 
33.58
 
H.E.B. Central Market
Shiloh Springs
 
Dallas-Fort Worth-Arlington
 
TX
 
20%
 
1998
 
1998
 
 
110
 
91.8%
 
14.21
 
Kroger
Shops at Mira Vista
 
Austin-Round Rock
 
TX
 
 
 
2014
 
2002
 
225
 
68
 
100.0%
 
22.86
 
Trader Joe's
Southpark at Cinco Ranch
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2012
 
2012
 
 
265
 
98.8%
 
13.61
 
Kroger, Academy Sports
Sterling Ridge
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2002
 
2000
 
 
129
 
98.5%
 
20.79
 
Kroger
Sweetwater Plaza
 
Houston-The Woodlands-Sugar Land
 
TX
 
20%
 
2001
 
2000
 
10,489
 
134
 
100.0%
 
17.79
 
Kroger
Tech Ridge Center
 
Austin-Round Rock
 
TX
 
 
 
2011
 
2001
 
5,694
 
185
 
96.6%
 
23.91
 
H.E.B.
The Village at Riverstone (7)
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2016
 
2016
 
 
167
 
91.3%
 
14.97
 
Kroger
Weslayan Plaza East
 
Houston-The Woodlands-Sugar Land
 
TX
 
40%
 
2005
 
1969
 
 
169
 
100.0%
 
19.87
 
Berings
Weslayan Plaza West
 
Houston-The Woodlands-Sugar Land
 
TX
 
40%
 
2005
 
1969
 
36,288
 
186
 
96.8%
 
20.26
 
Randall's Food
Westwood Village
 
Houston-The Woodlands-Sugar Land
 
TX
 
 
 
2006
 
2006
 
 
187
 
96.4%
 
19.43
 
(Target)
Woodway Collection
 
Houston-The Woodlands-Sugar Land
 
TX
 
40%
 
2005
 
1974
 
8,321
 
97
 
100.0%
 
29.06
 
Whole Foods
Ashburn Farm Market Center
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2000
 
2000
 
 
92
 
98.3%
 
26.50
 
Giant Food
Ashburn Farm Village Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1996
 
 
89
 
100.0%
 
14.66
 
Global Food
Belmont Chase
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2014
 
2014
 
 
91
 
100.0%
 
30.78
 
Whole Foods
Braemar Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
25%
 
2004
 
2004
 
10,558
 
96
 
97.9%
 
22.26
 
Safeway
Carytown Exchange (7)
 
Richmond
 
VA
 
8%
 
2018
 
2018
 
 
107
 
46.3%
 
14.37
 
0
Centre Ridge Marketplace
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1996
 
12,726
 
107
 
98.9%
 
19.34
 
---
Point 50 (fka Fairfax Shopping Center)
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2007
 
1955
 
 
48
 
62.4%
 
22.00
 
365 by Whole Foods
Festival at Manchester Lakes (6)
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1990
 
22,079
 
169
 
93.9%
 
28.02
 
Shoppers Food Warehouse
Fox Mill Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1977
 
15,286
 
103
 
98.1%
 
25.19
 
Giant Food
Gayton Crossing
 
Richmond
 
VA
 
40%
 
2005
 
1983
 
 
158
 
86.3%
 
16.12
 
(Kroger)
Greenbriar Town Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1972
 
47,853
 
340
 
98.0%
 
26.32
 
Giant Food
Hanover Village Shopping Center
 
Richmond
 
VA
 
40%
 
2005
 
1971
 
 
90
 
100.0%
 
9.18
 
Aldi
Kamp Washington Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1960
 
 
72
 
99.1%
 
37.67
 
Earth Fare
Kings Park Shopping Center (6)
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1966
 
12,917
 
93
 
98.0%
 
29.14
 
Giant Food

32




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SF
Lorton Station Marketplace
 
Washington-Arlington-Alexandria
 
VA
 
20%
 
2006
 
2005
 
9,875
 
132
 
90.5%
 
23.76
 
Shoppers Food Warehouse
Market Common Clarendon
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2016
 
2001
 
 
422
 
71.5%
 
33.63
 
Whole Foods, Crate & Barrel
Saratoga Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1977
 
10,544
 
113
 
100.0%
 
20.78
 
Giant Food
Shops at County Center
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2005
 
2005
 
 
97
 
87.8%
 
19.64
 
Harris Teeter
Shops at Stonewall
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2007
 
2011
 
 
308
 
100.0%
 
18.36
 
Wegmans, Dick's Sporting Goods
The Field at Commonwealth
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2017
 
2017
 
 
167
 
95.8%
 
20.92
 
Wegmans
Town Center at Sterling Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1980
 
 
187
 
85.6%
 
21.71
 
Giant Food
Village Center at Dulles
 
Washington-Arlington-Alexandria
 
VA
 
20%
 
2002
 
1991
 
39,118
 
301
 
92.6%
 
27.87
 
Gold's Gym, Giant
Village Shopping Center
 
Richmond
 
VA
 
40%
 
2005
 
1948
 
15,064
 
111
 
93.8%
 
24.42
 
Publix
Willston Centre I
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1952
 
 
105
 
90.8%
 
26.07
 
--
Willston Centre II
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1986
 
26,588
 
136
 
99.1%
 
25.78
 
Safeway, (Target)
Aurora Marketplace
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1991
 
10,917
 
107
 
100.0%
 
16.37
 
Safeway
Ballard Blocks I
 
Seattle-Tacoma-Bellevue
 
WA
 
50%
 
2018
 
2007
 
 
132
 
94.6%
 
23.89
 
Trader Joe's, LA Fitness
Ballard Blocks II (7)
 
Seattle-Tacoma-Bellevue
 
WA
 
50%
 
2018
 
2018
 
 
114
 
79.1%
 
33.60
 
PCC Community Markets
Broadway Market (6)
 
Seattle-Tacoma-Bellevue
 
WA
 
20%
 
2014
 
1988
 
21,500
 
140
 
98.4%
 
24.40
 
Quality Food Centers
Cascade Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
20%
 
1999
 
1999
 
13,672
 
206
 
95.6%
 
12.20
 
Safeway
Eastgate Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1956
 
9,733
 
79
 
100.0%
 
27.50
 
Safeway
Grand Ridge Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
2012
 
2012
 
 
331
 
100.0%
 
24.64
 
Safeway, Regal Cinemas
Inglewood Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1985
 
 
17
 
93.7%
 
40.38
 
--
Klahanie Shopping Center
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
2016
 
1998
 
 
67
 
98.4%
 
32.60
 
(QFC)
Overlake Fashion Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1987
 
 
81
 
100.0%
 
24.92
 
(Sears)
Pine Lake Village
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1989
 
 
103
 
97.0%
 
24.01
 
Quality Food Centers
Roosevelt Square
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
2017
 
2017
 
 
148
 
100.0%
 
23.21
 
Whole Foods
Sammamish-Highlands
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1992
 
 
101
 
100.0%
 
33.80
 
(Safeway)
Southcenter
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1990
 
 
58
 
100.0%
 
29.95
 
(Target)
Regency Centers Total
 
 
 
 
 
 
 
 
 
 
 
$2,145,538
 
53,568
 
95.6%
 
$21.82
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) CBSA refers to Core Based Statistical Area.
(2) Represents our ownership interest in the property, if not wholly owned.
(3) Includes properties where we have not yet incurred at least 90% of the expected costs to complete and 95% occupied or the anchor has not yet been open for at least two calendar years ("development properties" or "properties in development"). If development properties are excluded, the total percentage leased would be 95.9% for our Combined Portfolio of shopping centers.
(4) Average base rent PSF is calculated based on annual minimum contractual base rent per the tenant lease, excluding percentage rent and recovery revenue.
(5) Retailers in parenthesis are shadow anchors at our centers. We have no ownership or leasehold interest in their space, which is within or adjacent to our property.
(6) The ground underlying the building and improvements is not owned by Regency or its unconsolidated real estate partnerships, but is subject to a ground lease.
(7) Property in development.

33



Item 3. Legal Proceedings
We are a party to various legal proceedings that arise in the ordinary course of our business. We are not currently involved in any litigation, nor to our knowledge is any litigation threatened against us, the outcome of which would, in our judgment based on information currently available to us, have a material adverse effect on our financial position or results of operations.

Item 4. Mine Safety Disclosures
None.


PART II
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Since November 13, 2018, our common stock has traded on NASDAQ under the symbol "REG." Before November 13, 2018, our common stock traded on the NYSE, also under the symbol "REG".
As of February 7, 2019, there were 70,487 holders of common equity.
We intend to pay regular quarterly distributions to Regency Centers Corporation's common stockholders. Future distributions will be declared and paid at the discretion of our Board of Directors and will depend upon cash generated by operating activities, our financial condition, capital requirements, annual dividend requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as our Board of Directors deems relevant. In order to maintain Regency Centers Corporation's qualification as a REIT for federal income tax purposes, we are generally required to make annual distributions at least equal to 90% of our real estate investment trust taxable income for the taxable year. Under certain circumstances, which we do not expect to occur, we could be required to make distributions in excess of cash available for distributions in order to meet such requirements. We have a dividend reinvestment plan under which shareholders may elect to reinvest their dividends automatically in common stock. Under the plan, we may elect to purchase common stock in the open market on behalf of shareholders or may issue new common stock to such stockholders.
Under the revolving credit agreement of our line of credit, in the event of any monetary default, we may not make distributions to stockholders except to the extent necessary to maintain our REIT status.
There were no unregistered sales of equity securities during the quarter ended December 31, 2018.
The following table represents information with respect to purchases by the Parent Company of its common stock during the months in the three month period ended December 31, 2018:
Period
 
Total number of shares purchased (1)
 
Total number of shares purchased as part of publicly announced plans or programs (2)
 
Average price paid per share
 
Maximum number or approximate dollar value of shares that may yet be purchased under the plans or programs (2)
October 1, 2018, through October 31, 2018
 
 
 
$

 
$125,009,963
November 1, 2018, through November 30, 2018
 
 
 
$

 
$125,009,963
December 1, 2018, through December 31, 2018
 
 
2,107,124
 
$
57.70

 
$3,371,220
 
 
 
 
 
 
 
 
 
(1) Represents shares repurchased to cover payment of withholding taxes in connection with restricted stock vesting by participants under Regency's Long-Term Omnibus Plan.
(2) On February 7, 2018, the Company's Board authorized a common share repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million of its outstanding common stock through open market purchases and/or in privately negotiated transactions. Any shares purchased will be retired. The program is scheduled to expire on February 6, 2020. Through December 31, 2018, the Company has repurchased 4,252,333 shares for $246.5 million. On February 5, 2019, the Company's Board authorized a new repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million under terms and conditions similar to the predecessor plan. Any additional shares purchased will be under the new program.

34



The performance graph furnished below shows Regency's cumulative total stockholder return to the S&P 500 Index, the FTSE NAREIT Equity REIT Index, and the FTSE NAREIT Equity Shopping Centers index since December 31, 2013. The stock performance graph should not be deemed filed or incorporated by reference into any other filing made by us under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that we specifically incorporate the stock performance graph by reference in another filing.

graph.jpg
 
 
12/31/13
12/31/14
12/31/15
12/31/16
12/31/17
12/31/18
 
 
 
 
 
 
 
 
Regency Centers Corporation
 
$
100.00

142.54

156.83

163.05

168.90

148.61

S&P 500
 
100.00

113.69

115.26

129.05

157.22

150.33

FTSE NAREIT Equity REITs
 
100.00

130.14

134.30

145.74

153.36

146.27

FTSE NAREIT Equity Shopping Centers
 
100.00

129.96

136.10

141.10

125.06

106.87



35



Item 6. Selected Financial Data
The following table sets forth Selected Financial Data for the Company on a historical basis for the five years ended December 31, 2018 (in thousands, except per share and unit data, number of properties, and ratio of earnings to fixed charges). This historical Selected Financial Data has been derived from the audited consolidated financial statements. This information should be read in conjunction with the consolidated financial statements of Regency Centers Corporation and Regency Centers, L.P. (including the related notes thereto) and Management's Discussion and Analysis of the Financial Condition and Results of Operations, each included elsewhere in this Form 10-K.
Parent Company
 
 
2018
 
2017 (1)
 
2016
 
2015
 
2014
Operating data:
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,120,975

 
984,326

 
614,371

 
569,763

 
537,898

Operating expenses
 
740,806

 
744,763

 
403,152

 
365,098

 
353,348

Total other expense (income)
 
170,818

 
113,661

 
100,745

 
74,630

 
27,969

Income from operations before equity in income of investments in real estate partnerships and income taxes
 
209,351

 
125,902

 
110,474

 
130,035

 
156,581

Equity in income of investments in real estate partnerships
 
42,974

 
43,341

 
56,518

 
22,508

 
31,270

Deferred income tax benefit of taxable REIT subsidiary
 

 
(9,737
)
 

 

 
(996
)
Net income
 
252,325

 
178,980

 
166,992

 
152,543

 
188,847

Income attributable to noncontrolling interests
 
(3,198
)
 
(2,903
)
 
(2,070
)
 
(2,487
)
 
(1,457
)
Net income attributable to the Company
 
249,127

 
176,077

 
164,922

 
150,056

 
187,390

Preferred stock dividends and issuance costs
 

 
(16,128
)
 
(21,062
)
 
(21,062
)
 
(21,062
)
Net income attributable to common stockholders
 
$
249,127

 
159,949

 
143,860

 
128,994

 
166,328

Income per common share - diluted
 
$
1.46

 
1.00

 
1.42

 
1.36

 
1.80

NAREIT FFO (2)
 
652,857

 
494,843

 
277,301

 
276,515

 
269,149

Other information:
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities (3)
 
$
610,327

 
469,784

 
297,177

 
285,543

 
277,742

Net cash used in investing activities (3)
 
(106,024
)
 
(1,007,230
)
 
(408,632
)
 
(139,346
)
 
(210,290
)
Net cash (used in) provided by financing activities (3)
 
(508,494
)
 
568,948

 
88,711

 
(223,117
)
 
(34,360
)
Dividends paid to common stockholders and unit holders
 
376,755

 
323,285

 
201,336

 
181,691

 
172,900

Common dividends declared per share
 
2.22

 
2.10

 
2.00

 
1.94

 
1.88

Common stock outstanding including exchangeable operating partnership units
 
168,254

 
171,715

 
104,651

 
97,367

 
94,262

Balance sheet data:
 
 
 
 
 
 
 
 
 
 
Real estate investments before accumulated depreciation
 
$
11,326,163

 
11,279,125

 
5,230,198

 
4,852,106

 
4,743,053

Total assets
 
10,944,663

 
11,145,717

 
4,488,906

 
4,182,881

 
4,197,170

Total debt
 
3,715,212

 
3,594,977

 
1,642,420

 
1,864,285

 
2,021,357

Total liabilities
 
4,494,495

 
4,412,663

 
1,864,404

 
2,100,261

 
2,260,688

Total stockholders’ equity
 
6,397,970

 
6,692,052

 
2,591,301

 
2,054,109

 
1,906,592

Total noncontrolling interests
 
52,198

 
41,002

 
33,201

 
28,511

 
29,890

 
 
 
 
 
 
 
 
 
 
 
(1) 2017 reflects the results of our merger with Equity One on March 1, 2017, and therefore only includes ten months of operating results for the Equity One portfolio, but also includes merger and integration related costs within Operating expenses.
(2) See Item 1, Defined Terms, for the definition of NAREIT FFO and Item 7, Supplemental Earnings Information, for a reconciliation to the nearest GAAP measure.
(3) On January 1, 2018, the Company retrospectively adopted Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which changed the classification and presentation of changes in the total of cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows. Amounts presented for the years ended December 31, 2017 and 2016 were restated to conform presentation.

36



Operating Partnership
 
 
2018
 
2017 (1)
 
2016
 
2015
 
2014
Operating data:
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
1,120,975

 
984,326

 
614,371

 
569,763

 
537,898

Operating expenses
 
740,806

 
744,763

 
403,152

 
365,098

 
353,348

Total other expense (income)
 
170,818

 
113,661

 
100,745

 
74,630

 
27,969

Income from operations before equity in income of investments in real estate partnerships and income taxes
 
209,351

 
125,902

 
110,474

 
130,035

 
156,581

Equity in income of investments in real estate partnerships
 
42,974

 
43,341

 
56,518

 
22,508

 
31,270

Deferred income tax (benefit) of taxable REIT subsidiary
 

 
(9,737
)
 

 

 
(996
)
Net income
 
252,325

 
178,980

 
166,992

 
152,543

 
188,847

Income attributable to noncontrolling interests
 
(2,673
)
 
(2,515
)
 
(1,813
)
 
(2,247
)
 
(1,138
)
Net income attributable to the Partnership
 
249,652

 
176,465

 
165,179

 
150,296

 
187,709

Preferred unit distributions and issuance costs
 

 
(16,128
)
 
(21,062
)
 
(21,062
)
 
(21,062
)
Net income attributable to common unit holders
 
$
249,652

 
160,337

 
144,117

 
129,234

 
166,647

Income per common unit - diluted:
 
$
1.46

 
1.00

 
1.42

 
1.36

 
1.80

NAREIT FFO (2)
 
652,857

 
494,843

 
277,301

 
276,515

 
269,149

Other information:
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities (3)
 
$
610,327

 
469,784

 
297,177

 
285,543

 
277,742

Net cash used in investing activities (3)
 
(106,024
)
 
(1,007,230
)
 
(408,632
)
 
(139,346
)
 
(210,290
)
Net cash (used in) provided by financing activities (3)
 
(508,494
)
 
568,948

 
88,711

 
(223,117
)
 
(34,360
)
Distributions paid on common units
 
376,755

 
323,285

 
201,336

 
181,691

 
172,900

Balance sheet data:
 
 
 
 
 
 
 
 
 
 
Real estate investments before accumulated depreciation
 
$
11,326,163

 
11,279,125

 
5,230,198

 
4,852,106

 
4,743,053

Total assets
 
10,944,663

 
11,145,717

 
4,488,906

 
4,182,881

 
4,197,170

Total debt
 
3,715,212

 
3,594,977

 
1,642,420

 
1,864,285

 
2,021,357

Total liabilities
 
4,494,495

 
4,412,663

 
1,864,404

 
2,100,261

 
2,260,688

Total partners’ capital
 
6,408,636

 
6,702,959

 
2,589,334

 
2,052,134

 
1,904,678

Total noncontrolling interests
 
41,532

 
30,095

 
35,168

 
30,486

 
31,804

 
 
 
 
 
 
 
 
 
 
 
(1) 2017 reflects the results of our merger with Equity One on March 1, 2017, and therefore only includes ten months of operating results for the Equity One portfolio, but also includes merger and integration related costs within Operating expenses.
(2) See Item 1, Defined Terms, for the definition of NAREIT FFO and Item 7, Supplemental Earnings Information, for a reconciliation to the nearest GAAP measure.
(3) On January 1, 2018, the Company retrospectively adopted Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which changed the classification and presentation of changes in the total of cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows. Amounts presented for the years ended December 31, 2017 and 2016 were restated to conform presentation.


37



Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executing on our Strategy
We reported Net income attributable to common stockholders of $249.1 million during the year ended December 31, 2018, as compared to $159.9 million, net of $80.7 million of merger costs, during the same period in 2017.
We sustained superior same property NOI growth:
We achieved pro-rata same property NOI growth, as adjusted, excluding termination fees, of 3.4%.
We executed 1,802 leasing transactions representing 6.2 million pro-rata SF of new and renewal leasing, with trailing twelve month rent spreads of 8.3% on comparable retail operating property spaces.
At December 31, 2018, our total property portfolio was 95.6% leased, while our same property portfolio was 96.1% leased.
We developed and redeveloped high quality shopping centers at attractive returns on investment:
We started three new developments representing a total pro-rata project investment of $80.5 million upon completion, with a weighted average projected return on investment of 7.1%.
We started eight new redevelopments representing a total pro-rata project investment of $112.2 million upon completion, with a weighted average projected return on investment of 8.3%.
Including these new projects, a total of 19 properties were in the process of development or redevelopment, representing a pro-rata investment upon completion of $389.9 million.
We completed four new developments representing a total pro-rata project investment of $167.7 million, with a weighted average return on investment of 7.4%.
We completed twelve new redevelopments representing a total pro-rata project investment of $184.4 million, with a weighted average return on investment of 6.9%.
We maintained a conservative balance sheet providing financial flexibility to cost effectively fund investment opportunities and debt maturities:
On March 9, 2018, the Company received proceeds from the sale of $300.0 million of 4.125% senior unsecured public notes, which priced at 99.837% and mature in March 2028. $60 million of the proceeds was used to repay our unsecured revolving credit facility (the “Line”) and $163.2 million was used, in April, to early redeem our $150.0 million 6.0% senior unsecured public notes originally due June 2020, including accrued and unpaid interest through the redemption date and a make-whole amount. We used the remainder of the proceeds to repay 2018 mortgage maturities and for general corporate purposes.
On March 26, 2018, we amended and restated our Line. The amendment and restatement increases the size of the Line to $1.25 billion from $1.0 billion and extends the maturity date to March 23, 2022, with options to extend maturity for two additional six-month periods. Borrowings will bear interest at an annual rate of LIBOR plus 87.5 basis points, subject to our credit ratings, compared to a rate of 92.5 basis points under the previous facility. An annual facility fee of 15 basis points, subject to our credit ratings, applies to the Line.
During 2018, we repurchased $246.5 million of our common stock at a weighted average price per share of $57.97.
At December 31, 2018, our annualized net debt-to-operating EBITDAre ratio on a pro-rata basis was 5.3x.

38




Leasing Activity and Significant Tenants
We believe our high-quality, grocery anchored shopping centers located in densely populated, desirable infill trade areas create attractive spaces for retail tenants.
Pro-rata Occupancy
The following table summarizes pro-rata occupancy rates of our combined Consolidated and Unconsolidated shopping center portfolio:
 
 
December 31, 2018
 
December 31, 2017
% Leased – All properties
 
95.6%
 
95.5%
Anchor space
 
98.4%
 
98.1%
Shop space
 
90.9%
 
91.1%
The decline in shop space percent leased is driven by strategic vacancies in preparation for redevelopments.
Pro-rata Leasing Activity
The following table summarizes leasing activity, including our pro-rata share of activity within the portfolio of our co-investment partnerships:
Year ended December 31, 2018
 
 
Leasing Transactions (1)
 
SF (in thousands)
 
Base Rent PSF
 
Tenant Allowance and Landlord Work PSF
 
Leasing Commissions PSF
Anchor Leases
 
 
 
 
 
 
 
 
 
 
New
 
38
 
625
 
$
18.75

 
$
29.78

 
$
6.96

Renewal
 
99
 
2,886
 
15.18

 
0.60

 
0.35

Total Anchor Leases (1)
 
137
 
3,511
 
$
15.82

 
$
5.79

 
$
1.52

Shop Space
 
 
 
 
 
 
 
 
 
 
New
 
519
 
890
 
$
33.05

 
$
28.17

 
$
13.86

Renewal
 
1,146
 
1,838
 
33.65

 
0.83

 
2.13

Total Shop Space Leases (1)
 
1,665
 
2,728
 
$
33.45

 
$
9.75

 
$
5.96

Total Leases
 
1,802
 
6,239
 
$
23.53

 
$
7.52

 
$
3.46

 
 
 
 
 
 
 
 
 
 
 
(1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share.
 
Year ended December 31, 2017
 
 
Leasing Transactions (1)(2)
 
SF (in thousands)
 
Base Rent PSF
 
Tenant Allowance and Landlord Work PSF
 
Leasing Commissions PSF
Anchor Leases
 
 
 
 
 
 
 
 
 
 
New
 
39
 
895
 
$
17.34

 
$
29.56

 
$
4.92

Renewal
 
87
 
2,465
 
14.47

 
0.02

 
0.46

Total Anchor Leases (1)
 
126
 
3,360
 
$
15.24

 
$
7.89

 
$
1.65

Shop Space
 
 
 
 
 
 
 
 
 
 
New
 
548
 
952
 
$
32.45

 
$
26.81

 
$
13.17

Renewal
 
1,175
 
2,005
 
31.31

 
1.47

 
2.40

Total Shop Space Leases (1)
 
1,723
 
2,957
 
$
31.68

 
$
9.63

 
$
5.87

Total Leases
 
1,849
 
6,317
 
$
22.93

 
$
8.70

 
$
3.62

 
 
 
 
 
 
 
 
 
 
 
(1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share.
 
(2) For the year ending December 31, 2017, amounts include leasing activity of properties acquired from Equity One beginning March 1, 2017.
 

39



Total weighted average base rent on signed shop space leases during 2018 was $33.45 PSF and exceeds the average annual base rent of all shop space leases due to expire during the next 12 months of $30.62 PSF.
Significant Tenants and Concentrations of Risk
We seek to reduce our operating and leasing risks through geographic diversification and by avoiding dependence on any single property, market, or tenant. The following table summarizes our most significant tenants, based on their percentage of annualized base rent:
 
 
December 31, 2018
Anchor
 
Number of
Stores
 
Percentage of
Company-
owned GLA (1)
 
Percentage of
Annualized
Base Rent (1) 
Publix
 
70
 
6.5%
 
3.2%
Kroger Co.
 
56
 
6.6%
 
3.0%
Albertsons Companies, Inc.
 
47
 
4.2%
 
2.8%
Whole Foods
 
32
 
2.4%
 
2.4%
TJX Companies
 
59
 
3.0%
 
2.3%
 
 
 
 
 
 
 
(1) Includes Regency's pro-rata share of Unconsolidated Properties and excludes those owned by anchors.
Bankruptcies and Credit Concerns
Our management team devotes significant time to researching and monitoring retail trends, consumer preferences, customer shopping behaviors, changes in retail delivery methods, and changing demographics in order to anticipate the challenges and opportunities impacting the retail industry. A greater shift to e-commerce, large-scale retail business failures, unemployment, and tight credit markets could negatively impact consumer spending and have an adverse effect on our results of operations. We seek to mitigate these potential impacts through tenant diversification, re-tenanting weaker tenants with stronger operators, anchoring our centers with market leading grocery stores that drive foot traffic, and maintaining a presence in affluent suburbs and dense infill trade areas. As a result of our research and findings, we may reduce new leasing, suspend leasing, or curtail allowances for construction of leasehold improvements within a certain retail category or to a specific retailer in order to reduce our risk from bankruptcies and store closings.
We closely monitor the operating performance and rent collections of tenants in our shopping centers as well as those retailers experiencing significant changes to their business models as a result of reduced customer traffic in their stores and increased competition from e-commerce sales. Retailers who are unable to withstand these and other business pressures may file for bankruptcy. Although base rent is supported by long-term lease contracts, tenants who file 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 recover our claim and to release the vacated space. In the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and cancels its leases, we could experience a significant reduction in our revenues. Tenants who have filed for bankruptcy and continue to occupy space at December 31, 2018 in our shopping centers represent an aggregate of 0.4% of our annual base rent on a pro-rata basis.

40



Results from Operations
Comparison of the years ended December 31, 2018 and 2017:
Results from operations for the year ended December 31, 2017 reflect the results of our merger with Equity One on March 1, 2017, and therefore only includes ten months of operating results for the Equity One portfolio in 2017.
Our total revenues increased as summarized in the following table:
(in thousands)
 
2018
 
2017
 
Change
Minimum rent
 
$
818,483

 
728,078

 
90,405

Percentage rent
 
7,486

 
6,635

 
851

Recoveries from tenants
 
245,196

 
206,675

 
38,521

Other income
 
21,316

 
16,780

 
4,536

Management, transaction, and other fees
 
28,494

 
26,158

 
2,336

Total revenues
 
$
1,120,975

 
984,326

 
136,649

Minimum rent changed as follows:
$14.1 million increase from rent commencing at development properties;
$12.6 million increase from acquisitions of operating properties; and
$77.4 million increase at same properties, including $64.1 million from properties acquired through our merger with Equity One which only includes ten months of 2017 operating results. The remaining increase is driven by redevelopments, rental rate growth on new and renewal leases, and rent commencements;
reduced by $13.7 million from the sale of operating properties.    
Recoveries from tenants represent reimbursements to us for tenants' pro-rata share of the operating, maintenance, and real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased as follows:
$4.4 million increase from rent commencing at development properties;
$2.9 million increase from acquisitions of operating properties; and
$34.4 million increase from same properties, including $26.7 million from properties acquired through our merger with Equity One which only includes ten months of 2017 operating results. The remaining increase is associated with higher recoverable costs;
reduced by $3.2 million from the sale of operating properties.
Other income, which consists of incidental income earned at our centers, increased $4.5 million from same properties, including $2.7 million from properties acquired through our merger with Equity One, primarily from termination and assignment fees.
Management, transaction and other fees increased $2.3 million due partially to an increase in development fees from active developments within unconsolidated partnerships, along with an increase in leasing and property management fees earned from unconsolidated partnerships.

41



Changes in our operating expenses are summarized in the following table:
(in thousands)
 
2018
 
2017
 
Change
Depreciation and amortization
 
$
359,688

 
334,201

 
25,487

Operating and maintenance
 
168,034

 
143,990

 
24,044

General and administrative
 
65,491

 
67,624

 
(2,133
)
Real estate taxes
 
137,856

 
109,723

 
28,133

Other operating expenses
 
9,737

 
89,225

 
(79,488
)
Total operating expenses
 
$
740,806

 
744,763

 
(3,957
)
Depreciation and amortization costs changed as follows:
$6.4 million increase as we began depreciating costs at development properties where tenant spaces were completed and became available for occupancy;
$6.0 million net increase from acquisitions of operating properties; and
$20.4 million net increase at same properties, including $15.9 million from properties acquired through our merger with Equity One which only includes ten months of 2017 operating results. The remaining increase is primarily attributable to redevelopment assets being placed in service;
reduced by $7.3 million from the sale of operating properties.
Operating and maintenance costs changed as follows:
$6.3 million increase from operations commencing at development properties;
$2.1 million increase from acquisitions of operating properties; and
$18.2 million increase at same properties, including $15.1 million from properties acquired through our merger with Equity One which only includes ten months of 2017 operating results. The remaining increase is primarily attributable to increases in recoverable costs;
reduced by $2.6 million from the sale of operating properties.
General and administrative changed as follows:
$4.9 million decrease in the value of participant obligations within the deferred compensation plan; and
$1.6 million net decrease in compensation and management consulting costs; offset by
$3.8 million increase from decreased leasing overhead capitalization due to the different mix of leasing transactions; and
$500,000 increase from lower development overhead capitalization based on the timing and size of current development and redevelopment projects.
Real estate taxes changed as follows:
$2.8 million increase from development properties where capitalization ceased as tenant spaces became available for occupancy;
$2.3 million increase from acquisitions of operating properties; and
$24.4 million increase at same properties, including $19.9 million from properties acquired through the Equity One merger which only includes ten months of 2017 operating results. The remaining increase is from increased tax assessments;
reduced by $1.4 million from the sale of operating properties.
Other operating expenses decreased $79.5 million, primarily attributable to transaction costs related to the Equity One merger in 2017.

42



The following table presents the components of other expense (income):
(in thousands)
 
2018
 
2017
 
Change
Interest expense, net
 
 
 
 
 
 
Interest on notes payable
 
$
129,299

 
119,301

 
9,998

Interest on unsecured credit facilities
 
18,999

 
14,677

 
4,322

Capitalized interest
 
(7,020
)
 
(7,946
)
 
926

Hedge expense
 
8,408

 
8,408

 

Interest income
 
(1,230
)
 
(1,811
)
 
581

Interest expense, net
 
148,456

 
132,629

 
15,827

Provision for impairment
 
38,437

 

 
38,437

Gain on sale of real estate, net of tax
 
(28,343
)
 
(27,432
)
 
(911
)
Early extinguishment of debt
 
11,172

 
12,449

 
(1,277
)
Net investment income
 
1,096

 
(3,985
)
 
5,081

Total other expense (income)
 
$
170,818

 
113,661

 
57,157

The $15.8 million net increase in total interest expense is due to:
$10.0 million net increase in interest on notes payable primarily due to:
$7.6 million increase from the issuances of $950 million of new unsecured debt during 2017. The debt proceeds were used as follows:
$325 million used to redeem all of our preferred stock,
$415 million used to fund consideration paid to Equity One to repay its credit facilities not assumed by the Company in the merger, and
$210 million used to retire mortgage loans and to reduce the outstanding balance on the Line;
$3.4 million net increase from the issuance of $300 million of new unsecured debt in March 2018 to redeem $150 million of unsecured debt in April 2018, and to repurchase common stock;
$3.2 million of additional interest on notes payable assumed with the Equity One merger; and
$725,000 increase from amortization of additional debt premiums and loan costs from above debt issuances; offset by
$4.9 million net decrease in mortgage interest expense primarily due to mortgage payoffs during 2018 and 2017.
further increased by $4.3 million in interest on unsecured credit facilities related to higher average balances primarily related to the Equity One merger and higher interest rates.
During 2018, we recognized $38.4 million of impairment losses, including $12.6 million of goodwill impairment, on ten operating properties and two land parcels, eight of which have been sold. Of the four remaining properties, three are included in Properties held for sale as of December 31, 2018. We did not recognize any impairments during 2017.
During 2018, we early redeemed $150 million of 6% senior unsecured notes resulting in $11.0 million of debt extinguishment costs. During 2017, we repaid nine mortgages with a portion of the proceeds from our unsecured public debt offering, and recognized $12.4 million of debt extinguishment costs.
Net investment income decreased $5.1 million, driven by valuation changes in the stock market, primarily attributable to investments held within the non-qualified deferred compensation plan.

43



Our equity in income of investments in real estate partnerships decreased as follows:
(in thousands)
 
Regency's Ownership
 
2018
 
2017
 
Change
GRI - Regency, LLC (GRIR)
 
40.00%
 
$
29,614

 
27,440

 
2,174

Equity One JV Portfolio LLC (NYC)
 
30.00%
 
490

 
686

 
(196
)
Columbia Regency Retail Partners, LLC (Columbia I)
 
20.00%
 
1,311

 
3,620

 
(2,309
)
Columbia Regency Partners II, LLC (Columbia II)
 
20.00%
 
4,673

 
1,530

 
3,143

Cameron Village, LLC (Cameron)
 
30.00%
 
943

 
850

 
93

RegCal, LLC (RegCal)
 
25.00%
 
1,542

 
1,403

 
139

US Regency Retail I, LLC (USAA)
 
20.01%
 
937

 
4,456

 
(3,519
)
Other investments in real estate partnerships
 
9.375% - 50.00%
 
3,464

 
3,356

 
108

Total equity in income of investments in real estate partnerships
$
42,974

 
43,341

 
(367
)
The $367,000 decrease in total Equity in income in investments in real estate partnerships is attributed to:
$2.2 million increase within GRIR primarily due to an increase in minimum rent across the portfolio of properties and reduced depreciation;
$2.3 million decrease within Columbia I due to our $2.4 million share of gains on the sale of real estate recognized in 2017;
$3.1 million increase within Columbia II due to our $3.1 million share of gains on the sale of real estate recognized in 2018; and
$3.5 million decrease within USAA due to our $3.3 million share of gains on the sale of real estate recognized in 2017.
The following represents the remaining components that comprise net income attributable to the common stockholders and unit holders:
(in thousands)
 
2018
 
2017
 
Change
Income from operations
 
$
252,325

 
169,243

 
83,082

Deferred income tax benefit
 

 
9,737

 
(9,737
)
Income attributable to noncontrolling interests
 
(3,198
)
 
(2,903
)
 
(295
)
Preferred stock dividends and issuance costs
 

 
(16,128
)
 
16,128

Net income attributable to common stockholders
 
$
249,127

 
159,949

 
89,178

Net income attributable to exchangeable operating partnership units
525

 
388

 
137

Net income attributable to common unit holders
 
$
249,652

 
160,337

 
89,315

The $9.7 million income tax benefit during 2017 was due to revaluing the net deferred tax liability at a TRS entity acquired through the Equity One merger, as a result of the change in corporate tax rates from the 2017 Tax Cuts and Jobs Act.
During 2017, we redeemed all of our outstanding preferred stock.


44



Comparison of the years ended December 31, 2017 and 2016:
Results from operations for the year ended December 31, 2017 reflect the results of our merger with Equity One on March 1, 2017, and therefore only includes ten months of operating results for the Equity One portfolio in 2017.
Our total revenues increased as summarized in the following table:
(in thousands)
 
2017
 
2016
 
Change
Minimum rent
 
$
728,078

 
444,305

 
283,773

Percentage rent
 
6,635

 
4,128

 
2,507

Recoveries from tenants
 
206,675

 
127,677

 
78,998

Other income
 
16,780

 
12,934

 
3,846

Management, transaction, and other fees
 
26,158

 
25,327

 
831

Total revenues
 
$
984,326

 
614,371

 
369,955

Minimum rent changed as follows:
$7.2 million increase from development properties;
$5.2 million increase from acquisitions of operating properties;
$15.1 million increase at same properties reflecting an increase from rental rate growth on new and renewal leases, contractual rent steps, and our redevelopment properties; and
$261.4 million increase from properties acquired through the Equity One merger;
reduced by $5.2 million from the sale of operating properties.    
Percentage rent increased $2.5 million primarily as a result of properties acquired through the Equity One merger.
Recoveries from tenants represent reimbursements to us for tenants' pro-rata share of the operating, maintenance, and real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased as follows:
$1.7 million increase from rent commencing at development properties;
$1.9 million increase from acquisitions of operating properties;
$8.4 million increase from same properties associated with higher recoverable costs and an improvement in recovery rates; and
$68.6 million increase from properties acquired through the Equity One merger;
reduced by $1.7 million from the sale of operating properties.
Other income, which consists of incidental income earned at our centers, increased $3.8 million as follows:
$354,000 increase from development properties;
$1.0 million from acquisitions of operating properties; and
$3.9 million from properties acquired through the Equity One merger;
reduced by $1.4 million in same properties primarily due to other fee income in 2016.

45



Changes in our operating expenses are summarized in the following table:
(in thousands)
 
2017
 
2016
 
Change
Depreciation and amortization
 
$
334,201

 
162,327

 
171,874

Operating and maintenance
 
143,990

 
95,022

 
48,968

General and administrative
 
67,624

 
65,327

 
2,297

Real estate taxes
 
109,723

 
66,395

 
43,328

Other operating expenses
 
89,225

 
14,081

 
75,144

Total operating expenses
 
$
744,763

 
403,152

 
341,611

Depreciation and amortization costs changed as follows:
$2.8 million increase as we began depreciating costs at development properties where tenant spaces were completed and became available for occupancy;
$2.7 million increase from acquisitions of operating properties and corporate assets;
$2.2 million increase at same properties, attributable primarily to redevelopments; and
$165.9 million increase from properties acquired through the Equity One merger;
reduced by $1.8 million from the sale of operating properties.
Operating and maintenance costs changed as follows:
$1.4 million increase from operations commencing at development properties;
$1.5 million increase from acquisitions of operating properties;
$1.0 million net increase from claims losses within the company's wholly-owned captive insurance program;
$1.0 million increase at same properties primarily attributable to recoverable costs; and
$45.3 million increase from properties acquired through the Equity One merger;
reduced by $1.2 million from the sale of operating properties.
General and administrative changed as follows:
$2.2 million increase in the value of participant obligations within the deferred compensation plan; and
$4.6 million increase in compensation costs related to additional staffing and incentive compensation as a result of the Equity One merger;
reduced by $4.5 million primarily from greater development overhead capitalization based on the progress and size of current development and redevelopment projects.
Real estate taxes changed as follows:
$782,000 increase from development properties where capitalization ceased as tenant spaces became available for occupancy;
$1.3 million increase from acquisitions of operating properties;
$3.6 million increase at same properties from increased tax assessments; and
$38.6 million increase from properties acquired through the Equity One merger;
reduced by $1.0 million from sold properties.
Other operating expenses increased as follows:
$1.8 million increase in corporate expenses due to an increase in franchise taxes; and
$73.3 million increase primarily attributable to transaction costs related to the Equity One merger in March 2017.

46



The following table presents the components of other expense (income):
(in thousands)
 
2017
 
2016
 
Change
Interest expense, net
 
 
 
 
 
 
Interest on notes payable
 
$
119,301

 
81,330

 
37,971

Interest on unsecured credit facilities
 
14,677

 
5,635

 
9,042

Capitalized interest
 
(7,946
)
 
(3,481
)
 
(4,465
)
Hedge expense
 
8,408

 
8,408

 

Interest income
 
(1,811
)
 
(1,180
)
 
(631
)
Interest expense, net
 
$
132,629

 
90,712

 
41,917

Provision for impairment
 

 
4,200

 
(4,200
)
Gain on sale of real estate, net of tax
 
(27,432
)
 
(47,321
)
 
19,889

Early extinguishment of debt
 
12,449

 
14,240

 
(1,791
)
Net investment income
 
(3,985
)
 
(1,672
)
 
(2,313
)
Loss on derivative instruments
 

 
40,586

 
(40,586
)
Total other expense (income)
 
$
113,661

 
100,745

 
12,916

The $41.9 million net increase in total interest expense is due to:
$38.0 million increase in interest on notes payable due to:
$26.0 million of additional interest on notes payable assumed with the Equity One merger; and
$29.7 million increase in interest attributable to the issuance of $950 million of new unsecured debt in 2017. The debt proceeds were used as follows:
$325 million used to redeem all of our preferred stock,
$415 million used to fund consideration paid to Equity One to repay its credit facilities not assumed by the Company in the merger, and
$210 million used to retire mortgage loans and to reduce the outstanding balance on the Line;
offset by $6.9 million decrease in mortgage interest expense primarily due to the payoff of nine mortgages loans; and
$10.8 million decrease due to the early redemption of our $300 million notes during 2016;
$9.0 million increase in interest on unsecured credit facilities related to higher average balances primarily related to the Equity One merger;
offset by $4.5 million decrease from higher capitalization of interest based on the size and progress of development and redevelopment projects in process.
We did not recognize any impairments during 2017. During 2016, we recognized $4.2 million of impairment losses on two operating properties and two land parcels, all of which have since been sold.
During 2017, we sold six operating properties and nine land parcels resulting in gains of $27.4 million, compared to gains of $47.3 million from the sale of eleven operating properties and sixteen land parcels during 2016.
During 2017, we repaid nine mortgages with a portion of the proceeds from our unsecured public debt offering in June 2017, and recognized $12.4 million of debt extinguishment costs. In 2016, we recognized a $14.2 million charge in connection with the early redemption of the $300 million unsecured notes.
Net investment income increased $2.3 million, attributable primarily to realized and unrealized gains on investments held within the non-qualified deferred compensation plan.
During 2016, we recognized a $40.6 million charge to settle $220 million of forward starting interest rate swaps related to new debt previously expected to be issued in 2017.

47



Our equity in income of investments in real estate partnerships decreased as follows:
(in thousands)
 
Regency's Ownership
 
2017
 
2016
 
Change
GRI - Regency, LLC (GRIR)
 
40.00%
 
$
27,440

 
29,791

 
(2,351
)
Equity One JV Portfolio LLC (NYC)
 
30.00%
 
686

 

 
686

Columbia Regency Retail Partners, LLC (Columbia I)
 
20.00%
 
3,620

 
4,180

 
(560
)
Columbia Regency Partners II, LLC (Columbia II)
 
20.00%
 
1,530

 
3,240

 
(1,710
)
Cameron Village, LLC (Cameron)
 
30.00%
 
850

 
695

 
155

RegCal, LLC (RegCal)
 
25.00%
 
1,403

 
1,080

 
323

US Regency Retail I, LLC (USAA)
 
20.01%
 
4,456

 
1,180

 
3,276

Other investments in real estate partnerships
 
50.00%
 
3,356

 
16,352

 
(12,996
)
Total equity in income of investments in real estate partnerships
 
$
43,341

 
56,518

 
(13,177
)
The $13.2 million decrease in our total Equity in income in investments in real estate partnerships is largely attributed to:
$2.4 million decrease within GRIR driven by gains on sale of real estate that were recognized in 2016, offset by lower depreciation expense in 2017 related to assets that became fully depreciated in 2016;
$1.7 million decrease within Columbia II due to gains on sale of real estate that were recognized in 2016;
$3.3 million increase within USAA due to gains on sale of real estate recognized in 2017; and
$13.0 million decrease within Other investments in real estate partnerships due to our pro-rata share of gains on sale of real estate recognized in these partnerships in 2016.
The following represents the remaining components that comprise net income attributable to the common stockholders and unit holders:
(in thousands)
 
2017
 
2016
 
Change
Income from operations
 
$
169,243

 
166,992

 
2,251

Deferred income tax benefit
 
(9,737
)
 

 
(9,737
)
Income attributable to noncontrolling interests
 
(2,903
)
 
(2,070
)
 
(833
)
Preferred stock dividends and issuance costs
 
(16,128
)
 
(21,062
)
 
4,934

Net income attributable to common stockholders
 
$
159,949

 
143,860

 
16,089

Net income attributable to exchangeable operating partnership units
388

 
257

 
131

Net income attributable to common unit holders
 
$
160,337

 
144,117

 
16,220

The $9.7 million income tax benefit during 2017 was due to revaluing the net deferred tax liability at a taxable REIT subsidiary acquired through the Equity One merger, as a result of the change in corporate tax rates from the 2017 Tax Cuts and Jobs Act.
During 2017, we redeemed both our Series 6 and Series 7 preferred stock, resulting in a decrease to preferred stock dividends, offset by a charge upon writing off issuance costs.

48



Supplemental Earnings Information
We use certain non-GAAP performance measures, in addition to certain performance metrics determined under GAAP, as we believe these measures improve the understanding of the Company's operating results. We manage our entire real estate portfolio without regard to ownership structure, although certain decisions impacting properties owned through partnerships require partner approval. Therefore, we believe presenting our pro-rata share of operating results regardless of ownership structure, along with other non-GAAP measures, may assist in comparing the Company's operating results to other REITs. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. See "Defined Terms" in Part I, Item 1.
Pro-Rata Same Property NOI:
For purposes of evaluating same property NOI on a comparative basis, and in light of the merger with Equity One on March 1, 2017, we are presenting our same property NOI on a pro forma basis for the year ended December 31, 2017, as if the merger had occurred January 1, 2017. This perspective allows us to evaluate same property NOI growth over a comparable period. The pro forma same property NOI as adjusted is not necessarily indicative of what the actual same property NOI and growth would have been if the merger had occurred on January 1, 2017, nor does it purport to represent the same property NOI and growth for future periods.
Our pro-rata same property NOI as adjusted, excluding termination fees, changed as follows:
(in thousands)
 
2018
 
2017 (1)
 
Change
Base rent
 
$
824,238

 
795,836

 
28,402

Percentage rent
 
8,574

 
9,065

 
(491
)
Recoveries from tenants
 
266,274

 
244,082

 
22,192

Other income
 
20,826

 
16,994

 
3,832

Operating expenses
 
327,563

 
299,507

 
28,056

Pro-rata same property NOI, as adjusted
 
$
792,349

 
766,470

 
25,879

Less: Termination fees
 
1,222

 
990

 
232

Pro-rata same property NOI, as adjusted, excluding termination fees
 
$
791,127

 
765,480

 
25,647

Pro-rata same property NOI growth, as adjusted, excluding termination fees
 
 
 
 
 
3.4
%
 
 
 
 
 
 
 
(1) Adjusted for Equity One operating results prior to the merger for this period. For additional information and details about the Equity One operating results included herein, refer to the Same Property NOI reconciliation at the end of the Supplemental Earnings section.
Base rent increased $28.4 million, driven by increases in rental rate growth on new and renewal leases, contractual rent steps in existing leases, and rent commencements.
Recoveries from tenants increased $22.2 million, as a result of increases in recoverable costs, as noted below.
Other income increased $3.8 million, due to an increase in parking income, land rental, temporary tenants.
Operating expenses increased $28.1 million, primarily due to a $17.6 million increase in real estate tax assessments and $8.8 million increase in common area maintenance costs.

49



Same Property Rollforward:
Our same property pool includes the following property count, pro-rata GLA, and changes therein:
 
2018
 
2017
(GLA in thousands)
Property Count
GLA
 
Property Count
GLA
Beginning same property count
395

40,601

 
289

26,392

Acquired properties owned for entirety of comparable periods
7

917

 
1

180

Developments that reached completion by beginning of earliest comparable period presented
8

512

 
2

331

Disposed properties
(11
)
(1,178
)
 
(7
)
(546
)
Properties acquired through Equity One merger


 
110

14,181

SF adjustments (1)

14

 

63

Ending same property count
399

40,866

 
395

40,601

 
 
 
 
 
 
(1) SF adjustments arise from remeasurements or redevelopments.
NAREIT FFO:
Our reconciliation of net income attributable to common stock and unit holders to NAREIT FFO is as follows:
(in thousands, except share information)
 
2018
 
2017
Reconciliation of Net income to NAREIT FFO
 
 
 
 
Net income attributable to common stockholders
 
$
249,127

 
159,949

Adjustments to reconcile to NAREIT FFO: (1)
 
 
 
 
Depreciation and amortization (excluding FF&E)
 
390,603

 
364,908

Provision for impairment to operating properties
 
37,895

 

Gain on sale of operating properties, net of tax
 
(25,293
)
 
(30,402
)
Exchangeable operating partnership units
 
525

 
388

NAREIT FFO attributable to common stock and unit holders
 
$
652,857

 
494,843

 
 
 
 
 
(1) Includes Regency's pro-rata share of unconsolidated investment partnerships, net of pro-rata share attributable to noncontrolling interests.

50



Reconciliation of Same Property NOI to Nearest GAAP Measure:
Our reconciliation of Net income attributable to common stockholders to Same Property NOI, on a pro-rata basis, is as follows:
 
 
2018
 
2017
(in thousands)
 
Same Property
 
Other (1)
 
Total
 
Same Property
 
Other (1)
 
Total
Net income (loss) attributable to common stockholders
 
$
416,657

 
(167,530
)
 
249,127

 
344,386

 
(184,437
)
 
159,949

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Management, transaction, and other fees
 

 
28,494

 
28,494

 

 
26,158

 
26,158

Gain on sale of real estate, net of tax
 

 
28,343

 
28,343

 

 
27,432

 
27,432

Other (2)
 
45,377

 
11,529

 
56,906

 
37,812

 
9,545

 
47,357

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
333,001

 
26,687

 
359,688

 
320,090

 
14,111

 
334,201

General and administrative
 

 
65,491

 
65,491

 

 
67,624

 
67,624

Other operating expense, excluding provision for doubtful accounts
 
727

 
4,017

 
4,744

 
1,066

 
74,430

 
75,496

Other expense (income)
 
33,701

 
165,460

 
199,161

 
44,627

 
96,466

 
141,093

Equity in income of investments in real estate excluded from NOI (3)
 
53,640

 
3,040

 
56,680

 
51,351

 
1,939

 
53,290

Net income attributable to noncontrolling interests
 

 
3,198

 
3,198

 

 
2,903

 
2,903

Preferred stock dividends and issuance costs
 

 

 

 

 
16,128

 
16,128

Same Property NOI for non-ownership periods of Equity One (4)
 

 

 

 
42,762

 

 
42,762

Pro-rata NOI, as adjusted
 
$
792,349

 
31,997

 
824,346

 
766,470

 
26,029

 
792,499

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes revenues and expenses attributable to non-same property, sold property, development properties, corporate activities, and noncontrolling interests.
(2) Includes straight-line rental income and expense, net of reserves, above and below market rent amortization, other fees, and noncontrolling interest.
(3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties.
(4) NOI from Equity One prior to the merger was derived from the accounting records of Equity One without adjustment. Equity One's financial information for the two month period ended February 28, 2017 was subject to a limited internal review by Regency. The table below provides Same Property NOI detail for the non-ownership period of Equity One.
(in thousands)
 
Two Months Ended February 2017
Base rent
 
$
44,390

Percentage rent
 
1,265

Recoveries from tenants
 
13,863

Other income
 
611

Operating expenses
 
17,367

Pro-rata same property NOI, as adjusted
 
42,762

Less: Termination fees
 
30

Pro-rata same property NOI, as adjusted, excluding termination fees
 
$
42,732



51



Liquidity and Capital Resources
General
We use cash flows generated from operating, investing, and financing activities to strengthen our balance sheet, finance our development and redevelopment projects, fund our investment activities, and maintain financial flexibility. We continuously monitor the capital markets and evaluate our ability to issue new debt or equity, to repay maturing debt, or fund our capital commitments.
Except for $500 million of unsecured public and private placement debt, our Parent Company has no capital commitments other than its guarantees of the commitments of our Operating Partnership. The Operating Partnership is a co-issuer and a guarantor on the $500 million of outstanding debt of our Parent Company. All remaining debt is held by our Operating Partnership or by our co-investment partnerships. The Parent Company will from time to time access the capital markets for the purpose of issuing new equity and will simultaneously contribute all of the offering proceeds to the Operating Partnership in exchange for additional partnership units. Based upon our available sources of capital, our current credit ratings, and the number of high quality, unencumbered properties we own, we believe our available capital resources are sufficient to meet our expected capital needs.
In addition to our $42.5 million of unrestricted cash at December 31, 2018, the Company has the following additional sources of capital available:
(in thousands)
 
December 31, 2018
ATM equity program (see note 11 to our Consolidated Financial Statements)
 
 
Original offering amount
 
$
500,000

Available capacity
 
$
500,000

 
 
 
Line of Credit (the "Line") (see note 8 to our Consolidated Financial Statements)
 
 
Total commitment amount
 
$
1,250,000

Available capacity (1)
 
$
1,095,612

Maturity (2)
 
March 23, 2022

 
 
 
(1) Net of letters of credit.
(2) The Company has the option to extend the maturity for two additional six-month periods.
Our dividend distribution policy is set by our Board of Directors, who monitors our financial position. Our Board of Directors recently declared a common stock dividend of $0.585 per share, payable on March 7, 2019, to shareholders of record as of February 25, 2019. Future dividends will be declared at the discretion of our Board of Directors and will be subject to capital requirements and availability. We plan to continue paying an aggregate amount of distributions to our stock and unit holders that, at a minimum, meet the requirements to continue qualifying as a REIT for federal income tax purposes.
We expect to generate sufficient cash flow from operations to fund our dividend distributions. We generated cash flow from operations of approximately $610.3 million and $469.8 million for the years ended December 31, 2018 and 2017, respectively. We paid $376.8 million and $328.3 million to our common and preferred stock and unit holders for the years ended December 31, 2018 and 2017, respectively. We currently do not have any preferred shares or units issued and outstanding.
To meet our additional cash requirements beyond our dividend, we will utilize the following:
remaining cash generated from operations after dividends paid,
proceeds from the sale of real estate,
available borrowings from our Line, and
when the capital markets are favorable, proceeds from the sale of equity or the issuance of new long-term debt.

52



During the next twelve months, we estimate that we will require approximately $171.8 million of cash to fund the following:
$143.7 million to complete in-process developments and redevelopments,
$13.2 million to repay maturing debt, and
$14.9 million to fund our pro-rata share of estimated capital contributions to our co-investment partnerships for repayment of maturing debt.
If we start new developments, redevelop additional shopping centers, commit to new acquisitions, prepay debt prior to maturity, or repurchase shares of our common stock, our cash requirements will increase. If we refinance maturing debt, our cash requirements will decrease. In addition, we have a contractual commitment to purchase, through December 2019, up to an additional 90.6% ownership interest in an operating shopping center. We currently expect the seller to require us to purchase an additional 25.6% ownership interest in the property by December 2019 for approximately $27.5 million.
We endeavor to maintain a high percentage of unencumbered assets. As of December 31, 2018, 87.8% of our wholly-owned real estate assets were unencumbered. Such assets allow us to access the secured and unsecured debt markets and to maintain availability on the Line. Our annualized Fixed charge coverage ratio, including our pro-rata share of our partnerships, was 4.2 and 4.1 times for the periods ended December 31, 2018 and 2017, respectively.
Our Line, Term Loans, and unsecured loans require that we remain in compliance with various covenants, which are described in note 8 to the Consolidated Financial Statements. We are in compliance with these covenants at December 31, 2018 and expect to remain in compliance.
Summary of Cash Flow Activity
The following table summarizes net cash flows related to operating, investing, and financing activities of the Company:
(in thousands)
 
2018
 
2017
 
Change
Net cash provided by operating activities
 
$
610,327

 
469,784

 
140,543

Net cash used in investing activities
 
(106,024
)
 
(1,007,230
)
 
901,206

Net cash (used in) provided by financing activities
 
(508,494
)
 
568,948

 
(1,077,442
)
Net (decrease) increase in cash and cash equivalents and restricted cash
 
(4,191
)
 
31,502

 
(35,693
)
Total cash and cash equivalents and restricted cash
 
$
45,190

 
49,381

 
(4,191
)
Net cash provided by operating activities:
Net cash provided by operating activities increased by $140.5 million due to:
$119.3 million increase in cash from operating income, including the additional cash flows from properties acquired through the Equity One merger in March 2017, net of merger costs;
$764,000 increase in operating cash flow distributions from our unconsolidated real estate partnerships; and,
$20.5 million net increase in cash due to timing of cash receipts and payments related to operating activities.

53



Net cash used in investing activities:
Net cash used in investing activities changed by $901.2 million as follows:
(in thousands)
 
2018
 
2017
 
Change
Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
$
(85,289
)
 
(124,727
)
 
39,438

Advance deposits paid on acquisition of operating real estate
 

 
(4,917
)
 
4,917

Acquisition of Equity One, net of cash and restricted cash acquired of $74,507
 

 
(646,790
)
 
646,790

Real estate development and capital improvements
 
(226,191
)
 
(346,857
)
 
120,666

Proceeds from sale of real estate investments
 
250,445

 
110,015

 
140,430

Proceeds from (issuance of) notes receivable
 
15,648

 
(5,236
)
 
20,884

Investments in real estate partnerships
 
(74,238
)
 
(23,529
)
 
(50,709
)
Distributions received from investments in real estate partnerships
 
14,647

 
36,603

 
(21,956
)
Dividends on investment securities
 
531

 
365

 
166

Acquisition of investment securities
 
(23,164
)
 
(23,535
)
 
371

Proceeds from sale of investment securities
 
21,587

 
21,378

 
209

Net cash used in investing activities
 
$
(106,024
)
 
(1,007,230
)
 
901,206

Significant investing and divesting activities included:
We invested $85.3 million in 2018 to acquire three operating properties. Other than those included with the Equity One merger, we invested $124.7 million in 2017 to acquire two operating properties and two real estate parcels at existing operating properties.
We issued 65.5 million shares of common stock to the shareholders of Equity One valued at $4.5 billion in a stock for stock exchange and merged Equity One into the Company on March 1, 2017. As part of the merger, we paid $646.8 million, net of cash and restricted cash acquired, to repay credit facilities not assumed with the merger at the closing date.
We invested $120.7 million less in 2018 than 2017 on real estate development, redevelopment, and capital improvements, as further detailed in a table below.
We received proceeds of $250.4 million from the sale of ten shopping centers and nine land parcels in 2018, compared to $110.0 million for six shopping centers and nine land parcels in 2017.
We invested $74.2 million in our real estate partnerships during 2018, including:
$48.8 million to fund our share of acquiring four operating properties,
$1.3 million to acquire an interest in one land parcel for development,
$21.9 million to fund our share of development and redevelopment activities, and
$2.2 million to fund our share of maturing debt.
During the same period in 2017, we invested $23.5 million in our real estate partnerships, including:
$8.8 million to acquire an interest in one land parcel for development,
$7.8 million to fund our share of development and redevelopment activities, and
$6.9 million to fund our share of maturing debt.

54



Distributions from our unconsolidated real estate partnerships include return of capital from sales or financing proceeds. The $14.6 million received in 2018 is driven by the sale of one land parcel and one operating property plus our share of proceeds from financing activities at two operating properties. During the same period in 2017, we received $36.6 million from the sale of three operating properties and one land parcel plus our share of proceeds from refinancing certain operating properties within the partnerships.
Acquisition of securities and proceeds from sale of securities pertain to investments held in our captive insurance company and our deferred compensation plan.
We plan to continue developing and redeveloping shopping centers for long-term investment purposes. During 2018, we deployed capital of $226.2 million for the development, redevelopment, and improvement of our real estate properties as comprised of the following:
(in thousands)
 
2018
 
2017
 
Change
Capital expenditures:
 
 
 
 
 
 
Land acquisitions for development / redevelopment
 
$
2,787

 
24,775

 
(21,988
)
Building and tenant improvements
 
68,463

 
54,200

 
14,263

Redevelopment costs
 
51,351

 
133,597

 
(82,246
)
Development costs
 
86,800

 
109,601

 
(22,801
)
Capitalized interest
 
6,303

 
7,946

 
(1,643
)
Capitalized direct compensation
 
10,487

 
16,738

 
(6,251
)
Real estate development and capital improvements
 
$
226,191

 
346,857

 
(120,666
)
During 2018 we acquired three land parcels for new development and redevelopment projects as compared to four land parcels acquired during 2017.
Building and tenant improvements increased $14.3 million during the year ended December 31, 2018 primarily related to the overall increase in the size of our portfolio from the merger with Equity One in March 2017.
Redevelopment expenditures were lower during 2018 due to the timing, magnitude, and number of projects currently in process. We intend to continuously improve our portfolio of shopping centers through redevelopment which can include adjacent land acquisition, existing building expansion, facade renovations, new out-parcel building construction, and redevelopment related tenant improvement costs. The size and magnitude of each redevelopment project varies with each redevelopment plan.
Development expenditures were lower in 2018 due to the progress towards completion of our development projects currently in process. At December 31, 2018 and 2017, we had six and eight consolidated development projects, respectively, that were either under construction or in lease up. See the tables below for more details about our development projects.
Interest is capitalized on our development and redevelopment projects and is based on cumulative actual costs expended. We cease interest capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would we capitalize interest on the project beyond 12 months after the anchor opens for business.
We have a staff of employees who directly support our development program, which includes redevelopment of our existing properties. We currently expect that our development activity will approximate our recent historical averages, although the amount of activity by type will vary and likely shift towards more redevelopment in the near future. Internal compensation costs directly attributable to these activities are capitalized as part of each project. Changes in the level of future development activity could adversely impact results of operations by reducing the amount of internal costs for development projects that may be capitalized. A 10% reduction in development activity without a corresponding reduction in development related compensation costs could result in an additional charge to net income of $1.5 million per year.

55



The following table summarizes our in-process consolidated development projects:
(in thousands, except cost PSF)
December 31, 2018
Property Name
 
Market
 
Start Date
 
Estimated/Actual Anchor Opens
 
Estimated Net Development Costs (1)
 
% of Costs Incurred (1)
 
GLA
 
Cost PSF GLA (1)
The Village at Riverstone
 
Houston, TX
 
Q4-16
 
Sept-18
 
$
30,658

 
86
%
 
167

 
184

Pinecrest Place (2)
 
Miami, FL
 
Q1-17
 
Jan-18
 
16,373

 
88
%
 
70

 
234

Mellody Farm
 
Chicago, IL
 
Q2-17
 
Sept-18
 
103,939

 
80
%
 
259

 
401

Indigo Square
 
Charleston, SC
 
Q4-17
 
Mar-19
 
16,808

 
81
%
 
51

 
330

Carytown Exchange (3)
 
Richmond, VA
 
Q4-18
 
Nov-20
 
26,360

 
3
%
 
107

 
246

The Village at Hunter's Lake
 
Tampa, FL
 
Q4-18
 
Apr-20
 
21,999

 
7
%
 
72

 
306

Total
 
 
 
 
 
 
 
$
216,137

 
67
%
 
726

 
$
298

(1) Includes leasing costs and is net of tenant reimbursements.
(2) Estimated Net Development Costs for Pinecrest Place excludes the cost of land, which the Company has leased long term.
(3) Estimated Net Development Costs for Carytown Exchange excludes the cost of land, which was contributed by a partner.
The following table summarizes our pro-rata share of in-process unconsolidated development projects:
(in thousands, except cost PSF)
December 31, 2018
Property Name
 
Market
 
Start Date
 
Estimated/Actual Anchor Opens
 
Estimated Net Development Costs (1)
 
% of Costs Incurred (1)
 
GLA
 
Cost PSF GLA (1)
Midtown East
 
Raleigh, NC
 
Q4-17
 
Sept-19
 
$
22,639

 
67
%
 
87

 
$
260

Ballard Blocks II
 
Seattle, WA
 
Q1-18
 
Oct-19
 
32,161

 
43
%
 
57

 
$
564

Total
 
 
 
 
 
 
 
$
54,800

 
54
%
 
144

 
381

(1) Includes leasing costs and is net of tenant reimbursements.
The following table summarizes our completed consolidated development projects:
(in thousands, except cost PSF)
December 31, 2018
Property Name
 
Market
 
Completion Date
 
Net Development Costs (1)
 
GLA
 
Cost PSF GLA (1)
Chimney Rock Crossing
 
New York, NY
 
Q2-18
 
$
70,105

 
218

 
$
322

Northgate Marketplace Ph II
 
Medford, OR
 
Q2-18
 
40,791

 
177

 
230

Market at Springwoods Village (2)
 
Houston, TX
 
Q4-18
 
25,373

 
167

 
152

The Field at Commonwealth
 
Metro DC
 
Q4-18
 
43,378

 
167

 
260

Total
 
 
 
 
 
$
179,647

 
729

 
$
246

 
 
 
 
 
 
 
 
 
 
 
(1) Includes leasing costs and is net of tenant reimbursements.
(2) Estimated Net Development Costs are reported at full project cost. Our ownership interest in this consolidated property is 53%.

56



Net cash (used in) provided by financing activities:
Net cash flows generated from financing activities changed during 2018, as follows:
(in thousands)
 
2018
 
2017
 
Change
Cash flows from financing activities:
 
 
 
 
 
 
Equity issuances
 
$

 
88,458

 
(88,458
)
Repurchase of common shares in conjunction with equity award plans
 
(6,772
)
 
(18,649
)
 
11,877

Common shares repurchased through share repurchase program
 
(213,851
)
 

 
(213,851
)
Preferred stock redemption
 

 
(325,000
)
 
325,000

Distributions to limited partners in consolidated partnerships, net
 
(4,526
)
 
(8,139
)
 
3,613

Dividend payments and operating partnership distributions
 
(376,755
)
 
(328,314
)
 
(48,441
)
Borrowings on unsecured credit facilities, net
 
85,000

 
345,000

 
(260,000
)
Proceeds from debt issuance
 
301,251

 
1,084,184

 
(782,933
)
Debt repayments, including early redemption costs
 
(283,492
)
 
(255,421
)
 
(28,071
)
Payment of loan costs
 
(9,448
)
 
(13,271
)
 
3,823

Proceeds from sale of treasury stock, net
 
99

 
100

 
(1
)
Net cash (used in) provided by financing activities
 
$
(508,494
)
 
568,948

 
(1,077,442
)
Significant financing activities during the years ended December 31, 2018 and 2017 include the following:
We had no equity issuances during 2018. During December 2017, we raised $88.5 million upon settling the remaining 1,250,000 shares under the forward equity offering.
We repurchased for cash a portion of the common stock related to vested stock based compensation awards to satisfy employee federal and state tax withholding requirements. The 2017 repurchases were higher due to the vesting of Equity One's stock-based compensation program as a result of the merger.
We paid $213.9 million to repurchase 3,689,104 common shares in 2018 through our repurchase program. Additionally, we repurchased 563,229 shares in December 2018 that settled for $32.8 million in January 2019.
We paid $325.0 million in 2017 to redeem all of our preferred stock.
Net distributions to Limited partners in consolidated partnerships decreased $3.6 million primarily due to proceeds from property refinancings distributed during 2017.
We paid $48.4 million more in dividends during 2018 as a result of issuing common shares as merger consideration to acquire Equity One in 2017, combined with an increase in our dividend rate from $2.10 per share during 2017 to $2.22 per share during 2018.
We had the following debt related activity during 2018:
We borrowed, net of payments, an additional $85.0 million on our Line.
We received proceeds of $299.5 million upon issuance, in March, of $300.0 million of senior unsecured public notes and drew $1.7 million on a construction loan to fund an in-process development project.
We paid $160.5 million, including a make-whole premium, to early redeem our senior unsecured public notes originally due June 2020 and $123.0 million to pay scheduled principal mortgage payments and mortgages maturities.
We paid $9.4 million of loan costs in connection with our public note offering above and expanding our Line commitment.

57



We had the following debt related activity during 2017:
We borrowed, net of payments, an additional $45.0 million on our Line.
We received proceeds of $300.0 million upon closing a new term loan related to the merger with Equity One.
We received proceeds of $1.1 billion from debt issuances including
*
$953.1 million, including debt premiums, from our $950.0 million senior unsecured public note issuances in 2017. The debt proceeds were used as follows:
*
$325 million used to redeem all of our preferred stock,
*
$415 million used to fund consideration paid to Equity One to repay its credit facilities not assumed by the Company in the merger, and
*
$213.1 million used to retire mortgage loans and to reduce the outstanding balance on the Line;
*
$122.5 million from mortgage loans, and
*
$8.6 million in construction loan proceeds.
We paid $255.4 million to repay or refinance mortgage loans and to pay scheduled principal payments.
We paid $13.3 million of loan costs in connection with the new debt issued above, including expanding our Line commitment.

58




Contractual Obligations
We have debt obligations related to our mortgage loans, unsecured notes, unsecured credit facilities and interest rate swap obligations as described further below and in note 8, note 9, and note 16 to the Consolidated Financial Statements. We have shopping centers that are subject to non-cancelable long-term ground leases where a third party owns and has leased the underlying land to us to construct and/or operate a shopping center. We also have non-cancelable operating leases pertaining to office space from which we conduct our business. In addition, at December 31, 2018, we have a contractual commitment to purchase, through December 2019, up to an additional 90.6% ownership interest in an operating shopping center. We currently expect the seller to require us to purchase an additional 25.6% ownership interest in the property by December 2019 for approximately $27.5 million.
The following table of Contractual Obligations summarizes our debt maturities, including our pro-rata share of obligations within co-investment partnerships as of December 31, 2018, and excludes the following:
Recorded debt premiums or discounts and issuance costs that are not obligations;
Obligations related to construction or development contracts, since payments are only due upon satisfactory performance under the contracts;
Letters of credit of $9.4 million issued to cover our captive insurance program and performance obligations on certain development projects, which the latter will be satisfied upon completion of the development projects; and
Obligations for retirement savings plans due to uncertainty around timing of participant withdrawals, which are solely within the control of the participant, and are further discussed in note 13 to the Consolidated Financial Statements.
 
 
Payments Due by Period
 
 
(in thousands)
 
2019
 
2020
 
2021
 
2022
 
2023
 
Beyond 5 Years
 
Total
Notes payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency (1)
 
$
163,223

 
523,669

 
457,680

 
827,419

 
156,771

 
2,806,715

 
$
4,935,477

Regency's share of joint ventures (1) (2)
 
46,303

 
122,512

 
119,233

 
80,113

 
73,424

 
196,027

 
637,612

Operating leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency - office leases
 
4,982

 
4,908

 
3,858

 
2,893

 
2,189

 
5,944

 
24,774

Subleases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency - office leases
 
(577
)
 
(614
)
 
(309
)
 

 

 

 
(1,500
)
Ground leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency
 
10,672

 
10,439

 
10,344

 
10,258

 
10,369

 
461,762

 
513,844

Regency's share of joint ventures
 
393

 
394

 
394

 
394

 
394

 
18,073

 
20,042

Purchase commitment
 
27,547

 

 

 

 

 

 
27,547

U.S. Treasury rate lock
 
5,491

 

 

 

 

 

 
5,491

Total
 
$
258,034

 
661,308

 
591,200

 
921,077

 
243,147

 
3,488,521

 
$
6,163,287

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes interest payments.
(2) We are obligated to contribute our pro-rata share to fund maturities if they are not refinanced. We believe that our partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, we would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call.

59




Critical Accounting Estimates
Knowledge about our accounting policies is necessary for a complete understanding of our financial statements. The preparation of our financial statements requires that we make certain estimates that impact the balance of assets and liabilities as of a financial statement date and the reported amount of income and expenses during a financial reporting period. These accounting estimates are based upon, but not limited to, our judgments about historical and expected future results, current market conditions, and interpretation of industry accounting standards. They are considered to be critical because of their significance to the financial statements and the possibility that future events may differ from those judgments, or that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness; however, the amounts we may ultimately realize could differ from such estimates.
Accounts Receivable and Straight Line Rent
Minimum rent, percentage rent, and expense recoveries from tenants for common area maintenance costs, insurance and real estate taxes are the Company's principal source of revenue. As a result of generating this revenue, we will routinely have accounts receivable due from tenants. We are subject to tenant defaults and bankruptcies that may affect the collection of outstanding receivables. To address the collectability of these receivables, we analyze historical tenant collection rates, write-off experience, tenant credit-worthiness and current economic trends when evaluating the adequacy of our allowance for doubtful accounts and straight line rent reserve. Although we estimate uncollectible receivables and provide for them through charges against income, actual experience may differ from those estimates.

60



Real Estate Investments
Acquisition of Real Estate Investments
Upon acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases and in-place leases), assumed debt, and any noncontrolling interest in the acquiree at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the estimated fair value to the applicable assets and liabilities. If the acquisition is determined to be a business combination, any excess consideration above the fair value allocated to the applicable assets and liabilities results in goodwill. Fair value is determined based on an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Transaction costs associated with asset acquisitions are capitalized, while such costs are expensed for business combinations in the period incurred.
We strategically co-invest with partners to own, manage, acquire, develop and redevelop operating properties. We analyze our investments in real estate partnerships in order to determine whether the entity should be consolidated. The Company consolidates partnerships in which it owns less than 100%, but which it controls. Control is determined using an evaluation based on accounting standards related to the consolidation of variable interest entities ("VIEs") and voting interest entities. For joint ventures that are determined to be a VIE, the Company consolidates the entity where it is deemed to be the primary beneficiary. Determination of the primary beneficiary is based on whether an entity has (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. Management uses its judgment when making these determinations. We use the equity method of accounting for investments in real estate partnerships when we have significant influence but do not have a controlling financial interest. Under the equity method, we record our investments in and advances to these entities as Investments in real estate partnerships in our Consolidated Balance Sheets, and our proportionate share of earnings or losses earned by the partnership is recognized in Equity in income (loss) of investments in real estate partnerships in our Consolidated Statements of Operations.
Development and Redevelopment of Real Estate Assets and Cost Capitalization
We have a development program, which includes redevelopment of our existing properties. We capitalize the acquisition of land, the construction of buildings, and other specifically identifiable development costs incurred by recording them in Real estate assets, at cost, in our accompanying Consolidated Balance Sheets. Other specifically identifiable development costs include pre-development costs essential to the development process, as well as, interest, real estate taxes, and direct employee costs incurred during the development period. Once a development property is substantially complete and held available for occupancy, these indirect costs are no longer capitalized.
Pre-development costs are incurred prior to land acquisition during the due diligence phase and include contract deposits, legal, engineering, and other professional fees related to evaluating the feasibility of developing a shopping center. If we determine it is probable that a specific project undergoing due diligence will not be developed, we immediately expense all related capitalized pre-development costs not considered recoverable.
Interest costs are capitalized to each development project based on applying our weighted average borrowing rate to that portion of the actual development costs expended. We cease interest cost capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would we capitalize interest on the project beyond 12 months after the anchor opens for business. During the years ended December 31, 2018, 2017, and 2016, we capitalized interest of $7.0 million, $7.9 million, and $3.5 million, respectively, on our development projects.
Real estate taxes are capitalized to each development project over the same period as we capitalize interest.
We have a staff of employees who directly support our development program. All direct internal costs attributable to these development activities are capitalized as part of each development project. The capitalization of costs is directly related to the actual level of development activity occurring. During the years ended December 31, 2018, 2017, and 2016, we capitalized $17.1 million, $17.6 million, and $13.0 million, respectively, of direct internal costs incurred to support our development program.

61



Valuation of Real Estate Investments
In accordance with GAAP, we evaluate our real estate for impairment whenever there are indicators, including property operating performance and general market conditions, that the carrying value of our real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. If such indicators occur, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated hold period, comparable sales information, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and the resulting impairment, if any, could differ from the actual gain or loss recognized upon ultimate sale in an arm's length transaction. If the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value. Changes in our disposition strategy or changes in the marketplace may alter the hold period of an asset or asset group, which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. In estimating the fair value of undeveloped land, we generally use market data and comparable sales information.
We evaluate our investments in real estate partnerships for impairment whenever there are indicators, including underlying property operating performance and general market conditions, that the value of our investments in real estate partnerships may be impaired. An investment in a real estate partnerships is considered impaired only if we determine that its fair value is less than the net carrying value of the investment in that real estate partnerships on an other-than-temporary basis. Cash flow projections for the investments consider property level factors, such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. We consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary. These factors include the age of the real estate partnerships, our intent and ability to retain our investment in the entity, and the financial condition and long-term prospects of the entity. If we believe that the decline in the fair value of the investment is temporary, no impairment charge is recorded. If our analysis indicates that there is an other-than-temporary impairment related to the investment in a particular real estate partnership, the carrying value of the investment will be adjusted to an amount that reflects the estimated fair value of the investment.

Recent Accounting Pronouncements
See Note 1 to Consolidated Financial Statements.

Environmental Matters
We are subject to numerous environmental laws and regulations as they apply to our shopping centers pertaining primarily to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks. We believe that the tenants who currently operate dry cleaning plants or gas stations do so in accordance with current laws and regulations. Generally, we use all legal means to cause tenants to remove dry cleaning plants from our shopping centers or convert them to more environmentally friendly systems. Where available, we have applied and been accepted into state-sponsored environmental programs. We have a blanket environmental insurance policy for third-party liabilities and remediation costs on shopping centers that currently have no known environmental contamination. We have also placed environmental insurance, where possible, on 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.
As of December 31, 2018 we and our Investments in real estate partnerships had accrued liabilities of $8.7 million for our pro-rata share of environmental remediation. We believe that the ultimate disposition of currently known environmental matters will not have a material effect on our financial position, liquidity, or results of operations; however, we can give no assurance that existing environmental studies on our shopping centers have revealed all potential environmental liabilities; 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.

Off-Balance Sheet Arrangements
We do not have off-balance sheet arrangements, financings, or other relationships with other unconsolidated entities (other than our unconsolidated investment partnerships) or other persons, also known as variable interest entities, not previously discussed. Our unconsolidated investment partnership properties have been financed with non-recourse loans. We have no guarantees related to these loans.

Inflation/Deflation
Inflation has been historically low and has had a minimal impact on the operating performance of our shopping centers; however, inflation may become a greater concern in the near future. Most all of our long-term leases contain provisions designed to mitigate the adverse impact of inflation, which require tenants to pay their pro-rata share of operating expenses, including common-area maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation. In addition, many of our leases are for terms of less than ten years, which permits us to seek increased rents upon re-rental at market rates. However, during deflationary periods or periods of economic weakness, minimum rents and percentage rents will decline as the supply of available retail space exceeds demand and consumer spending declines. Occupancy declines will result in lower recovery rates of our operating expenses.

62




Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are exposed to two significant components of interest rate risk:
We have a Line commitment, as further described in note 8 to the Consolidated Financial Statements, which has a variable interest rate that is based upon an annual rate of LIBOR plus 0.875%. LIBOR rates charged on our Line change monthly and the spread on the Line is dependent upon maintaining specific credit ratings. If our credit ratings are downgraded, the spread on the Line would increase, resulting in higher interest costs. The interest rate spread based on our credit rating ranges from LIBOR plus 0.700% to LIBOR plus 1.550%.
We are also exposed to changes in interest rates when we refinance our existing long-term fixed rate debt. The objective of our interest rate risk management program is to limit the impact of interest rate changes on earnings and cash flows. To achieve these objectives, we borrow primarily at fixed interest rates and may enter into derivative financial instruments such as interest rate swaps, caps, or treasury locks in order to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes. Our interest rate swaps are structured solely for the purpose of interest rate protection.
We continuously monitor the capital markets and evaluate our ability to issue new debt, to repay maturing debt, or fund our commitments. Based upon the current capital markets, our current credit ratings, our current capacity under our unsecured credit facilities, and the number of high quality, unencumbered properties that we own which could collateralize borrowings, we expect that we will be able to successfully issue new secured or unsecured debt to fund these debt obligations.
Our interest rate risk is monitored using a variety of techniques. The table below presents the principal cash flows, weighted average interest rates of remaining debt, and the fair value of total debt as of December 31, 2018 (dollars in thousands). The table is presented by year of expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes. Although the average interest rate for variable rate debt is included in the table, those rates represent rates that existed as of December 31, 2018 and are subject to change on a monthly basis. In addition, the Company continually assesses the market risk for its floating rate debt and believes that a 1% increase in interest rates would decrease future earnings and cash flows by approximately $1.8 million per year based on $38.1 million of floating rate mortgage debt and $145.0 million of floating rate line of credit debt outstanding at December 31, 2018. If the Company increases its line of credit balance in the future, additional decreases to future earnings and cash flows would occur.
Further, the table below incorporates only those exposures that exist as of December 31, 2018 and does not consider exposures or positions that could arise after that date. Since firm commitments are not presented, the table has limited predictive value. As a result, our ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period, our hedging strategies at that time, and actual interest rates.
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
 
Fair Value
Fixed rate debt
 
$22,734
 
389,866

 
300,600

 
582,646

 
69,418
 
2,186,859

 
3,552,123

 
3,489,384

Average interest rate for all fixed rate debt (1)
 
3.81
%
 
3.86
%
 
3.74
%
 
3.93
%
 
3.94
%
 
3.98
%
 

 

Variable rate LIBOR debt
 
$

 

 
38,059

 
145,000

 

 

 
183,059

 
183,287

Average interest rate for all variable rate debt (1)
 
3.27
%
 
3.27
%
 
3.22
%
 
%
 
%
 
%
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Weighted average interest rates at the end of each year presented.

63




Item 8. Consolidated Financial Statements and Supplementary Data
Regency Centers Corporation and Regency Centers, L.P.
Index to Financial Statements
 
 
Regency Centers Corporation:
 
 
 
Regency Centers, L.P.:
 
 
 
 
 
Financial Statement Schedule
 
All other schedules are omitted because of the absence of conditions under which they are required, materiality or because information required therein is shown in the consolidated financial statements or notes thereto.


64




Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Regency Centers Corporation:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Regency Centers Corporation and subsidiaries (the “Company”) as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three‑year period ended December 31, 2018, and the related notes and the financial statement schedule III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 21, 2019, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the Company's auditor since 1993.
Jacksonville, Florida
February 21, 2019


65




Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Regency Centers Corporation:
Opinion on Internal Control Over Financial Reporting
We have audited Regency Centers Corporation and subsidiaries' (the “Company”) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement schedule III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”), and our report dated February 21, 2019, expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP
Jacksonville, Florida
February 21, 2019


66




Report of Independent Registered Public Accounting Firm

To the Partners
Regency Centers, L.P.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Regency Centers, L.P. and subsidiaries (the “Partnership”) as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three‑year period ended December 31, 2018, and the related notes and the financial statement schedule III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Partnership’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 21, 2019, expressed an unqualified opinion on the effectiveness of the Partnership’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the Partnership's auditor since 1998.
Jacksonville, Florida
February 21, 2019


67




Report of Independent Registered Public Accounting Firm

To the Partners
Regency Centers, L.P.:
Opinion on Internal Control Over Financial Reporting
We have audited Regency Centers, L.P. and subsidiaries' (the “Partnership“) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Partnership as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement schedule III - Real Estate and Accumulated Depreciation (collectively, the “consolidated financial statements”), and our report dated February 21, 2019, expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP
Jacksonville, Florida
February 21, 2019


68




REGENCY CENTERS CORPORATION
Consolidated Balance Sheets
December 31, 2018 and 2017
(in thousands, except share data)
 
 
2018
 
2017
Assets
 
 
 
 
Real estate assets, at cost (notes 1, 2 and 3):
 
$
10,863,162

 
10,892,821

Less: accumulated depreciation
 
1,535,444

 
1,339,771

Real estate assets, net
 
9,327,718

 
9,553,050

Investments in real estate partnerships (note 4)
 
463,001

 
386,304

Properties held for sale, net
 
60,516

 

Cash and cash equivalents
 
42,532

 
45,370

Restricted cash
 
2,658

 
4,011

Tenant and other receivables, net (note 1)
 
172,359

 
170,985

Deferred leasing costs, less accumulated amortization of $101,093 and $93,291 at December 31, 2018 and 2017, respectively
 
84,983

 
80,044

Acquired lease intangible assets, less accumulated amortization of $219,689 and $148,280 at December 31, 2018 and 2017, respectively (note 6)
 
387,069

 
478,826

Other assets (note 5)
 
403,827

 
427,127

Total assets
 
$
10,944,663

 
11,145,717

Liabilities and Equity
 
 
 
 
Liabilities:
 
 
 
 
Notes payable (note 8)
 
$
3,006,478

 
2,971,715

Unsecured credit facilities (note 8)
 
708,734

 
623,262

Accounts payable and other liabilities
 
224,807

 
234,272

Acquired lease intangible liabilities, less accumulated amortization of $92,746 and $56,550 at December 31, 2018 and 2017, respectively (note 6)
 
496,726

 
537,401

Tenants’ security, escrow deposits and prepaid rent
 
57,750

 
46,013

Total liabilities
 
4,494,495

 
4,412,663

Commitments and contingencies (notes 15 and 16)
 

 

Equity:
 
 
 
 
Stockholders’ equity (note 11):
 
 
 
 
Common stock $0.01 par value per share, 220,000,000 shares authorized; 167,904,593 and 171,364,908 shares issued at December 31, 2018 and 2017, respectively
 
1,679

 
1,714

Treasury stock at cost, 390,163 and 366,628 shares held at December 31, 2018 and 2017, respectively
 
(19,834
)
 
(18,307
)
Additional paid-in capital
 
7,672,517

 
7,873,104

Accumulated other comprehensive loss
 
(927
)
 
(6,289
)
Distributions in excess of net income
 
(1,255,465
)
 
(1,158,170
)
Total stockholders’ equity
 
6,397,970

 
6,692,052

Noncontrolling interests (note 11):
 
 
 
 
Exchangeable operating partnership units, aggregate redemption value of $20,532 and $24,206 at December 31, 2018 and 2017, respectively
 
10,666

 
10,907

Limited partners’ interests in consolidated partnerships
 
41,532

 
30,095

Total noncontrolling interests
 
52,198

 
41,002

Total equity
 
6,450,168

 
6,733,054

Total liabilities and equity
 
$
10,944,663

 
11,145,717

 
 
 
 
 
See accompanying notes to consolidated financial statements.


69



REGENCY CENTERS CORPORATION
Consolidated Statements of Operations
For the years ended December 31, 2018, 2017, and 2016
(in thousands, except per share data)
 
 
2018
 
2017
 
2016
Revenues:
 
 
 
 
 
 
Minimum rent
 
$
818,483

 
728,078

 
444,305

Percentage rent
 
7,486

 
6,635

 
4,128

Recoveries from tenants and other income
 
266,512

 
223,455

 
140,611

Management, transaction, and other fees
 
28,494

 
26,158

 
25,327

Total revenues
 
1,120,975

 
984,326

 
614,371

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
359,688

 
334,201

 
162,327

Operating and maintenance
 
168,034

 
143,990

 
95,022

General and administrative
 
65,491

 
67,624

 
65,327

Real estate taxes
 
137,856

 
109,723

 
66,395

Other operating expenses
 
9,737

 
89,225

 
14,081

Total operating expenses
 
740,806

 
744,763

 
403,152

Other expense (income):
 
 
 
 
 
 
Interest expense, net
 
148,456

 
132,629

 
90,712

Provision for impairment
 
38,437

 

 
4,200

Gain on sale of real estate, net of tax
 
(28,343
)
 
(27,432
)
 
(47,321
)
Early extinguishment of debt
 
11,172

 
12,449

 
14,240

Net investment loss (income)
 
1,096

 
(3,985
)
 
(1,672
)
Loss on derivative instruments
 

 

 
40,586

Total other expense (income)
 
170,818

 
113,661

 
100,745

Income from operations before equity in income of investments in real estate partnerships and income taxes
 
209,351

 
125,902

 
110,474

Equity in income of investments in real estate partnerships (note 4)
 
42,974

 
43,341

 
56,518

Deferred income tax benefit of taxable REIT subsidiary
 

 
(9,737
)
 

Net income
 
252,325

 
178,980

 
166,992

Noncontrolling interests:
 
 
 
 
 
 
Exchangeable operating partnership units
 
(525
)
 
(388
)
 
(257
)
Limited partners’ interests in consolidated partnerships
 
(2,673
)
 
(2,515
)
 
(1,813
)
Income attributable to noncontrolling interests
 
(3,198
)
 
(2,903
)
 
(2,070
)
Net income attributable to the Company
 
249,127

 
176,077

 
164,922

Preferred stock dividends and issuance costs
 

 
(16,128
)
 
(21,062
)
Net income attributable to common stockholders

$
249,127

 
159,949

 
143,860

 
 
 
 
 
 
 
Income per common share - basic (note 14)
 
$
1.47

 
1.00

 
1.43

Income per common share - diluted (note 14)
 
$
1.46

 
1.00

 
1.42

 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


70



REGENCY CENTERS CORPORATION
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Net income
 
$
252,325

 
178,980

 
166,992

Other comprehensive income:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments
 
402

 
1,151

 
(10,332
)
Reclassification adjustment of derivative instruments included in net income
 
5,342

 
11,103

 
51,139

Available for sale securities
 
 
 
 
 
 
Unrealized (loss) gain on available-for-sale securities
 
(95
)
 
(8
)
 
24

Other comprehensive income
 
5,649

 
12,246

 
40,831

Comprehensive income
 
257,974

 
191,226

 
207,823

Less: comprehensive income attributable to noncontrolling interests:
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
3,198

 
2,903

 
2,070

Other comprehensive income attributable to noncontrolling interests
 
299

 
189

 
484

Comprehensive income attributable to noncontrolling interests
 
3,497

 
3,092

 
2,554

Comprehensive income attributable to the Company
 
$
254,477

 
188,134

 
205,269

 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


71



REGENCY CENTERS CORPORATION
Consolidated Statements of Equity
For the years ended December 31, 2018, 2017, and 2016
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
Preferred
Stock
 
Common
Stock
 
Treasury
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Distributions
in Excess of
Net Income
 
Total
Stockholders’
Equity
 
Exchangeable
Operating
Partnership
Units
 
Limited
Partners’
Interest  in
Consolidated
Partnerships
 
Total
Noncontrolling
Interests
 
Total
Equity
Balance at December 31, 2015
$
325,000

 
972

 
(19,658
)
 
2,742,508

 
(58,693
)
 
(936,020
)
 
2,054,109

 
(1,975
)
 
30,486

 
28,511

 
2,082,620

Net income
 

 

 

 

 

 
164,922

 
164,922

 
257

 
1,813

 
2,070

 
166,992

Other comprehensive income
 

 

 

 

 
40,347

 

 
40,347

 
58

 
426

 
484

 
40,831

Deferred compensation plan, net
 

 

 
2,596

 
(2,596
)
 

 

 

 

 

 

 

Restricted stock issued, net of amortization
 

 
2

 

 
13,419

 

 

 
13,421

 

 

 

 
13,421

Common stock redeemed for taxes withheld for stock based compensation, net
 

 

 

 
(7,789
)
 

 

 
(7,789
)
 

 

 

 
(7,789
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,070

 

 

 
1,070

 

 

 

 
1,070

Common stock issued for stock offerings, net of issuance costs
 

 
71

 

 
548,849

 

 

 
548,920

 

 

 

 
548,920

Reallocation of limited partners' interest
 

 

 

 
(538
)
 

 

 
(538
)
 

 
538

 
538

 

Contributions from partners
 

 

 

 

 

 

 

 

 
8,760

 
8,760

 
8,760

Distributions to partners
 

 

 

 

 

 

 

 

 
(6,855
)
 
(6,855
)
 
(6,855
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock/unit
 

 

 

 

 

 
(21,062
)
 
(21,062
)
 

 

 

 
(21,062
)
Common stock/unit ($2.00 per share)
 

 

 

 

 

 
(202,099
)
 
(202,099
)
 
(307
)
 

 
(307
)
 
(202,406
)
Balance at December 31, 2016
$
325,000

 
1,045

 
(17,062
)
 
3,294,923

 
(18,346
)
 
(994,259
)
 
2,591,301

 
(1,967
)
 
35,168

 
33,201

 
2,624,502

Net income
 

 

 

 

 

 
176,077

 
176,077

 
388

 
2,515

 
2,903

 
178,980

Other comprehensive income
 

 

 

 

 
12,057

 

 
12,057

 
21

 
168

 
189

 
12,246

Deferred compensation plan, net
 

 

 
(1,245
)
 
1,236

 

 

 
(9
)
 

 

 

 
(9
)
Restricted stock issued, net of amortization
 

 
2

 

 
15,293

 

 

 
15,295

 

 

 

 
15,295

Common stock redeemed for taxes withheld for stock based compensation, net
 

 
(1
)
 

 
(18,345
)
 

 

 
(18,346
)
 

 

 

 
(18,346
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,210

 

 

 
1,210

 

 

 

 
1,210

Common stock issued for stock offerings, net of issuance costs
 

 
667

 

 
4,559,810

 

 

 
4,560,477

 

 

 

 
4,560,477

Restricted stock issued upon Equity One merger
 

 
1

 

 
7,950

 

 

 
7,951

 

 

 

 
7,951

Redemption of preferred stock
 
(325,000
)
 

 

 
11,099

 

 
(11,099
)
 
(325,000
)
 

 

 

 
(325,000
)
Reallocation of limited partners' interest
 

 

 

 
(72
)
 

 

 
(72
)
 

 
72

 
72

 

Contributions from partners
 

 

 

 

 

 

 

 
13,100

 
378

 
13,478

 
13,478

Distributions to partners
 

 

 

 

 

 

 

 

 
(8,206
)
 
(8,206
)
 
(8,206
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock/unit
 

 

 

 

 

 
(5,029
)
 
(5,029
)
 

 

 

 
(5,029
)
Common stock/unit ($2.10 per share)
 

 

 

 

 

 
(323,860
)
 
(323,860
)
 
(635
)
 

 
(635
)
 
(324,495
)

72



REGENCY CENTERS CORPORATION
Consolidated Statements of Equity
For the years ended December 31, 2018, 2017, and 2016
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
Preferred
Stock
 
Common
Stock
 
Treasury
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Distributions
in Excess of
Net Income
 
Total
Stockholders’
Equity
 
Exchangeable
Operating
Partnership
Units
 
Limited
Partners’
Interest  in
Consolidated
Partnerships
 
Total
Noncontrolling
Interests
 
Total
Equity
Balance at December 31, 2017
$

 
1,714

 
(18,307
)
 
7,873,104

 
(6,289
)
 
(1,158,170
)
 
6,692,052

 
10,907

 
30,095

 
41,002

 
6,733,054

Adjustment due to change in accounting policy (note 1)
 

 

 

 

 
12

 
30,889

 
30,901

 

 
2

 
2

 
30,903

Adjusted balance at January 1, 2018
 

 
1,714

 
(18,307
)
 
7,873,104

 
(6,277
)
 
(1,127,281
)
 
6,722,953

 
10,907

 
30,097

 
41,004

 
6,763,957

Net income
 

 

 

 

 

 
249,127

 
249,127

 
525

 
2,673

 
3,198

 
252,325

Other comprehensive income
 

 

 

 

 
5,350

 

 
5,350

 
11

 
288

 
299

 
5,649

Deferred compensation plan, net
 

 

 
(1,527
)
 
1,514

 

 

 
(13
)
 

 

 

 
(13
)
Restricted stock issued, net of amortization
 

 
2

 

 
16,743

 

 

 
16,745

 

 

 

 
16,745

Common stock redeemed for taxes withheld for stock based compensation, net
 

 


 

 
(6,373
)
 

 

 
(6,373
)
 

 

 

 
(6,373
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,333

 

 

 
1,333

 

 

 

 
1,333

Common stock issued for stock offerings, net of issuance costs
 

 

 

 
10

 

 

 
10

 

 

 

 
10

Common stock repurchased and retired
 

 
(37
)
 

 
(213,814
)
 

 

 
(213,851
)
 

 

 

 
(213,851
)
Contributions from partners
 

 

 

 

 

 

 

 

 
13,000

 
13,000

 
13,000

Distributions to partners
 

 

 

 

 

 

 

 

 
(4,526
)
 
(4,526
)
 
(4,526
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock/unit ($2.22 per share)
 

 

 

 

 

 
(377,311
)
 
(377,311
)
 
(777
)
 

 
(777
)
 
(378,088
)
Balance at December 31, 2018
$

 
1,679

 
(19,834
)
 
7,672,517

 
(927
)
 
(1,255,465
)
 
6,397,970

 
10,666

 
41,532

 
52,198

 
6,450,168

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


73



REGENCY CENTERS CORPORATION
Consolidated Statements of Cash Flows
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
252,325

 
178,980

 
166,992

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
359,688

 
334,201

 
162,327

Amortization of deferred loan costs and debt premiums
 
10,476

 
9,509

 
9,762

(Accretion) and amortization of above and below market lease intangibles, net
 
(33,330
)
 
(23,144
)
 
(3,879
)
Stock-based compensation, net of capitalization
 
13,635

 
20,549

 
10,652

Equity in income of investments in real estate partnerships
 
(42,974
)
 
(43,341
)
 
(56,518
)
Gain on sale of real estate, net of tax
 
(28,343
)
 
(27,432
)
 
(47,321
)
Provision for impairment
 
38,437

 

 
4,200

Early extinguishment of debt
 
11,172

 
12,449

 
14,240

Deferred income tax benefit of taxable REIT subsidiary
 

 
(9,737
)
 

Distribution of earnings from operations of investments in real estate partnerships
 
54,266

 
53,502

 
50,361

Gain on derivative instruments
 

 
76

 

Deferred compensation expense
 
(1,085
)
 
3,844

 
1,655

Realized and unrealized gain on investments (note 13)
 
1,177

 
(3,837
)
 
(1,673
)
Changes in assets and liabilities:
 
 
 
 
 
 
Tenant and other receivables, net
 
(26,374
)
 
(26,081
)
 
(8,800
)
Deferred leasing costs
 
(8,366
)
 
(14,448
)
 
(10,349
)
Other assets (note 5)
 
(1,410
)
 
9,536

 
673

Accounts payable and other liabilities
 
(760
)
 
(2,114
)
 
5,419

Tenants’ security, escrow deposits and prepaid rent
 
11,793

 
(2,728
)
 
(564
)
Net cash provided by operating activities
 
610,327

 
469,784

 
297,177

Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
(85,289
)
 
(124,727
)
 
(333,220
)
Advance deposits paid on acquisition of operating real estate
 

 
(4,917
)
 
(750
)
Acquisition of Equity One, net of cash and restricted cash acquired of $74,507
 

 
(646,790
)
 

Real estate development and capital improvements
 
(226,191
)
 
(346,857
)
 
(233,451
)
Proceeds from sale of real estate investments
 
250,445

 
110,015

 
135,161

Proceeds from (issuances of) notes receivable
 
15,648

 
(5,236
)
 

Investments in real estate partnerships
 
(74,238
)
 
(23,529
)
 
(37,879
)
Distributions received from investments in real estate partnerships
 
14,647

 
36,603

 
58,810

Dividends on investment securities
 
531

 
365

 
330

Acquisition of investment securities
 
(23,164
)
 
(23,535
)
 
(55,223
)
Proceeds from sale of investment securities
 
21,587

 
21,378

 
57,590

Net cash used in investing activities
 
(106,024
)
 
(1,007,230
)
 
(408,632
)

74



REGENCY CENTERS CORPORATION
Consolidated Statements of Cash Flows
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Cash flows from financing activities:
 
 
 
 
 
 
Net proceeds from common stock issuance
 

 
88,458

 
548,920

Repurchase of common shares in conjunction with equity award plans
 
(6,772
)
 
(18,649
)
 
(7,984
)
Proceeds from sale of treasury stock
 
99

 
100

 
957

Acquisition of treasury stock
 

 

 
(29
)
Common shares repurchased through share repurchase program
 
(213,851
)
 

 

Redemption of preferred stock and partnership units
 

 
(325,000
)
 

Distributions to limited partners in consolidated partnerships, net
 
(4,526
)
 
(8,139
)
 
(4,213
)
Distributions to exchangeable operating partnership unit holders
 
(777
)
 
(635
)
 
(307
)
Dividends paid to common stockholders
 
(375,978
)
 
(322,650
)
 
(201,029
)
Dividends paid to preferred stockholders
 

 
(5,029
)
 
(21,062
)
Repayment of fixed rate unsecured notes
 
(150,000
)
 

 
(300,000
)
Proceeds from issuance of fixed rate unsecured notes, net
 
299,511

 
953,115

 

Proceeds from unsecured credit facilities
 
575,000

 
1,100,000

 
460,000

Repayment of unsecured credit facilities
 
(490,000
)
 
(755,000
)
 
(345,000
)
Proceeds from notes payable
 
1,740

 
131,069

 
53,446

Repayment of notes payable
 
(113,037
)
 
(232,839
)
 
(72,803
)
Scheduled principal payments
 
(9,964
)
 
(10,162
)
 
(5,860
)
Payment of loan costs
 
(9,448
)
 
(13,271
)
 
(2,233
)
Early redemption costs
 
(10,491
)
 
(12,420
)
 
(14,092
)
Net cash (used in) provided by financing activities
 
(508,494
)
 
568,948

 
88,711

Net (decrease) increase in cash and cash equivalents and restricted cash
 
(4,191
)
 
31,502

 
(22,744
)
Cash and cash equivalents and restricted cash at beginning of the year
 
49,381

 
17,879

 
40,623

Cash and cash equivalents and restricted cash at end of the year
 
$
45,190

 
49,381

 
17,879

Supplemental disclosure of cash flow information:
 
 
 
 
 
 
Cash paid for interest (net of capitalized interest of $7,020, $7,946, and $3,482 in 2018, 2017, and 2016, respectively)
 
$
136,645

 
109,956

 
82,950

Cash paid (received) for income taxes
 
$
5,455

 
(269
)
 

Supplemental disclosure of non-cash transactions:
 
 
 
 
 
 
Exchangeable operating partnership units issued for acquisition of real estate
 
$

 
13,100

 

Mortgage loans assumed for the acquisition of operating real estate
 
$
9,700

 
27,000

 

Change in fair value of securities available-for-sale
 
$
(206
)
 
(8
)
 
24

Common stock issued for dividend reinvestment plan
 
$
1,333

 
1,210

 
1,070

Stock-based compensation capitalized
 
$
3,509

 
3,210

 
2,963

Contributions from limited partners in consolidated partnerships, net
 
$
13,000

 
186

 
8,755

Common stock issued for dividend reinvestment in trust
 
$
841

 
557

 
728

Contribution of stock awards into trust
 
$
1,314

 
1,372

 
1,538

Distribution of stock held in trust
 
$
524

 
677

 
4,114

Equity One Merger:
 
 
 
 
 
 
Notes payable assumed in Equity One merger, at fair value
 
$

 
757,399

 

Common stock exchanged for Equity One shares
 
$

 
4,471,808

 

Deconsolidation of previously consolidated partnership:
 
 
 
 
 
 
Real estate, net
 
$

 

 
14,144

Investments in real estate partnerships
 
$

 

 
(3,355
)
Notes payable
 
$

 

 
(9,415
)
Other assets and liabilities
 
$

 

 
571

Limited partners' interest in consolidated partnerships
 
$

 

 
(2,099
)
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


75



REGENCY CENTERS, L.P.
Consolidated Balance Sheets
December 31, 2018 and 2017
(in thousands, except unit data)
 
 
2018
 
2017
Assets
 
 
 
 
Real estate assets, at cost (notes 1, 2 and 3):
 
$
10,863,162

 
10,892,821

Less: accumulated depreciation
 
1,535,444

 
1,339,771

Real estate assets, net
 
9,327,718

 
9,553,050

Investments in real estate partnerships (note 4)
 
463,001

 
386,304

Properties held for sale, net
 
60,516

 

Cash and cash equivalents
 
42,532

 
45,370

Restricted cash
 
2,658

 
4,011

Tenant and other receivables, net (note 1)
 
172,359

 
170,985

Deferred leasing costs, less accumulated amortization of $101,093 and $93,291 at December 31, 2018 and 2017, respectively
 
84,983

 
80,044

Acquired lease intangible assets, less accumulated amortization of $219,689 and $148,280 at December 31, 2018 and 2017, respectively (note 6)
 
387,069

 
478,826

Other assets (note 5)
 
403,827

 
427,127

Total assets
 
$
10,944,663

 
11,145,717

Liabilities and Capital
 
 
 
 
Liabilities:
 
 
 
 
Notes payable (note 8)
 
$
3,006,478

 
2,971,715

Unsecured credit facilities (note 8)
 
708,734

 
623,262

Accounts payable and other liabilities
 
224,807

 
234,272

Acquired lease intangible liabilities, less accumulated amortization of $92,746 and $56,550 at December 31, 2018 and 2017, respectively (note 6)
 
496,726

 
537,401

Tenants’ security, escrow deposits and prepaid rent
 
57,750

 
46,013

Total liabilities
 
4,494,495

 
4,412,663

Commitments and contingencies (notes 15 and 16)
 

 

Capital:
 
 
 
 
Partners’ capital (note 11):
 
 
 
 
General partner; 167,904,593 and 171,364,908 units outstanding at December 31, 2018 and 2017, respectively
 
6,398,897

 
6,698,341

Limited partners; 349,902 units outstanding at December 31, 2018 and 2017
 
10,666

 
10,907

Accumulated other comprehensive loss
 
(927
)
 
(6,289
)
Total partners’ capital
 
6,408,636

 
6,702,959

Noncontrolling interests (note 11):
 
 
 
 
Limited partners’ interests in consolidated partnerships
 
41,532

 
30,095

Total noncontrolling interests
 
41,532

 
30,095

Total capital
 
6,450,168

 
6,733,054

Total liabilities and capital
 
$
10,944,663

 
11,145,717

 
 
 
 
 
See accompanying notes to consolidated financial statements.


76



REGENCY CENTERS, L.P.
Consolidated Statements of Operations
For the years ended December 31, 2018, 2017, and 2016
(in thousands, except per unit data)
 
 
2018
 
2017
 
2016
Revenues:
 
 
 
 
 
 
Minimum rent
 
$
818,483

 
728,078

 
444,305

Percentage rent
 
7,486

 
6,635

 
4,128

Recoveries from tenants and other income
 
266,512

 
223,455

 
140,611

Management, transaction, and other fees
 
28,494

 
26,158

 
25,327

Total revenues
 
1,120,975

 
984,326

 
614,371

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
359,688

 
334,201

 
162,327

Operating and maintenance
 
168,034

 
143,990

 
95,022

General and administrative
 
65,491

 
67,624

 
65,327

Real estate taxes
 
137,856

 
109,723

 
66,395

Other operating expenses
 
9,737

 
89,225

 
14,081

Total operating expenses
 
740,806

 
744,763

 
403,152

Other expense (income):
 
 
 
 
 
 
Interest expense, net
 
148,456

 
132,629

 
90,712

Provision for impairment
 
38,437

 

 
4,200

Gain on sale of real estate, net of tax
 
(28,343
)
 
(27,432
)
 
(47,321
)
Early extinguishment of debt
 
11,172

 
12,449

 
14,240

Net investment loss (income)
 
1,096

 
(3,985
)
 
(1,672
)
Loss on derivative instruments
 

 

 
40,586

Total other expense (income)
 
170,818

 
113,661

 
100,745

Income from operations before equity in income of investments in real estate partnerships and income taxes
 
209,351

 
125,902

 
110,474

Equity in income of investments in real estate partnerships (note 4)
 
42,974

 
43,341

 
56,518

Deferred income tax benefit of taxable REIT subsidiary
 

 
(9,737
)
 

Net income
 
252,325

 
178,980

 
166,992

Limited partners’ interests in consolidated partnerships
 
(2,673
)
 
(2,515
)
 
(1,813
)
Net income attributable to the Partnership
 
249,652

 
176,465

 
165,179

Preferred unit distributions and issuance costs
 

 
(16,128
)
 
(21,062
)
Net income attributable to common unit holders
 
$
249,652

 
160,337

 
144,117

 
 
 
 
 
 
 
Income per common unit - basic (note 14):
 
$
1.47

 
1.00

 
1.43

Income per common unit - diluted (note 14):
 
$
1.46

 
1.00

 
1.42

 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


77



REGENCY CENTERS, L.P.
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Net income
 
$
252,325

 
178,980

 
166,992

Other comprehensive income:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments
 
402

 
1,151

 
(10,332
)
Reclassification adjustment of derivative instruments included in net income
 
5,342

 
11,103

 
51,139

Available for sale securities
 
 
 
 
 
 
Unrealized (loss) gain on available-for-sale securities
 
(95
)
 
(8
)
 
24

Other comprehensive income
 
5,649

 
12,246

 
40,831

Comprehensive income
 
257,974

 
191,226

 
207,823

Less: comprehensive income attributable to noncontrolling interests:
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
2,673

 
2,515

 
1,813

Other comprehensive income attributable to noncontrolling interests
 
288

 
168

 
426

Comprehensive income attributable to noncontrolling interests
 
2,961

 
2,683

 
2,239

Comprehensive income attributable to the Partnership
 
$
255,013

 
188,543

 
205,584

 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


78



REGENCY CENTERS, L.P.
Consolidated Statements of Capital
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
General Partner
Preferred and
Common Units
 
Limited
Partners
 
Accumulated
Other
Comprehensive
Loss
 
Total
Partners’
Capital
 
Noncontrolling
Interests in
Limited Partners’
Interest in
Consolidated
Partnerships
 
Total
Capital
Balance at December 31, 2015
$
2,112,802

 
(1,975
)
 
(58,693
)
 
2,052,134

 
30,486

 
2,082,620

Net income
 
164,922

 
257

 

 
165,179

 
1,813

 
166,992

Other comprehensive income
 

 
58

 
40,347

 
40,405

 
426

 
40,831

Contributions from partners
 

 

 

 

 
8,760

 
8,760

Distributions to partners
 
(202,099
)
 
(307
)
 

 
(202,406
)
 
(6,855
)
 
(209,261
)
Reallocation of limited partners' interest
 
(538
)
 

 

 
(538
)
 
538

 

Preferred unit distributions
 
(21,062
)
 

 

 
(21,062
)
 

 
(21,062
)
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization
 
13,421

 

 

 
13,421

 

 
13,421

Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
542,201

 

 

 
542,201

 

 
542,201

Balance at December 31, 2016
$
2,609,647

 
(1,967
)
 
(18,346
)
 
2,589,334

 
35,168

 
2,624,502

Net income
 
176,077

 
388

 

 
176,465

 
2,515

 
178,980

Other comprehensive income
 

 
21

 
12,057

 
12,078

 
168

 
12,246

Deferred compensation plan, net
 
(9
)
 

 

 
(9
)
 

 
(9
)
Contributions from partners
 

 
13,100

 

 
13,100

 
378

 
13,478

Distributions to partners
 
(323,860
)
 
(635
)
 

 
(324,495
)
 
(8,206
)
 
(332,701
)
Reallocation of limited partners' interest
 
(72
)
 

 

 
(72
)
 
72

 

Preferred unit distributions
 
(5,029
)
 

 

 
(5,029
)
 

 
(5,029
)
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization
 
15,295

 

 

 
15,295

 

 
15,295

Preferred stock redemptions
 
(325,000
)
 

 

 
(325,000
)
 

 
(325,000
)
Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
4,543,341

 

 

 
4,543,341

 

 
4,543,341

Restricted units issued as a result of restricted stock issued by Parent Company upon Equity One merger
 
7,951

 

 

 
7,951

 

 
7,951

Balance at December 31, 2017
$
6,698,341

 
10,907

 
(6,289
)
 
6,702,959

 
30,095

 
6,733,054


79



REGENCY CENTERS, L.P.
Consolidated Statements of Capital
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
General Partner
Preferred and
Common Units
 
Limited
Partners
 
Accumulated
Other
Comprehensive
Loss
 
Total
Partners’
Capital
 
Noncontrolling
Interests in
Limited Partners’
Interest in
Consolidated
Partnerships
 
Total
Capital
Adjustment due to change in accounting policy (note 1)
 
30,889

 

 
12

 
30,901

 
2

 
30,903

Adjusted balance at January 1, 2018
 
6,729,230

 
10,907

 
(6,277
)
 
6,733,860

 
30,097

 
6,763,957

Net income
 
249,127

 
525

 

 
249,652

 
2,673

 
252,325

Other comprehensive income
 

 
11

 
5,350

 
5,361

 
288

 
5,649

Deferred compensation plan, net
 
(13
)
 

 

 
(13
)
 

 
(13
)
Contributions from partners
 

 

 

 

 
13,000

 
13,000

Distributions to partners
 
(377,311
)
 
(777
)
 

 
(378,088
)
 
(4,526
)
 
(382,614
)
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization
 
16,745

 

 

 
16,745

 

 
16,745

Common units repurchased and retired as a result of common stock repurchased and retired by Parent Company
 
(213,851
)
 

 

 
(213,851
)
 

 
(213,851
)
Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
(5,030
)
 

 

 
(5,030
)
 

 
(5,030
)
Balance at December 31, 2018
$
6,398,897

 
10,666

 
(927
)
 
6,408,636

 
41,532

 
6,450,168

 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


80



REGENCY CENTERS, L.P.
Consolidated Statements of Cash Flows
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
252,325

 
178,980

 
166,992

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
359,688

 
334,201

 
162,327

Amortization of deferred loan costs and debt premiums
 
10,476

 
9,509

 
9,762

(Accretion) and amortization of above and below market lease intangibles, net
 
(33,330
)
 
(23,144
)
 
(3,879
)
Stock-based compensation, net of capitalization
 
13,635

 
20,549

 
10,652

Equity in income of investments in real estate partnerships
 
(42,974
)
 
(43,341
)
 
(56,518
)
Gain on sale of real estate, net of tax
 
(28,343
)
 
(27,432
)
 
(47,321
)
Provision for impairment
 
38,437

 

 
4,200

Early extinguishment of debt
 
11,172

 
12,449

 
14,240

Deferred income tax benefit of taxable REIT subsidiary
 

 
(9,737
)
 

Distribution of earnings from operations of investments in real estate partnerships
 
54,266

 
53,502

 
50,361

Gain on derivative instruments
 

 
76

 

Deferred compensation expense
 
(1,085
)
 
3,844

 
1,655

Realized and unrealized gain on investments (note 13)
 
1,177

 
(3,837
)
 
(1,673
)
Changes in assets and liabilities:
 
 
 
 
 
 
Tenant and other receivables, net
 
(26,374
)
 
(26,081
)
 
(8,800
)
Deferred leasing costs
 
(8,366
)
 
(14,448
)
 
(10,349
)
Other assets (note 5)
 
(1,410
)
 
9,536

 
673

Accounts payable and other liabilities
 
(760
)
 
(2,114
)
 
5,419

Tenants’ security, escrow deposits and prepaid rent
 
11,793

 
(2,728
)
 
(564
)
Net cash provided by operating activities
 
610,327

 
469,784

 
297,177

Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
(85,289
)
 
(124,727
)
 
(333,220
)
Advance deposits paid on acquisition of operating real estate
 

 
(4,917
)
 
(750
)
Acquisition of Equity One, net of cash and restricted cash acquired of $74,507
 

 
(646,790
)
 

Real estate development and capital improvements
 
(226,191
)
 
(346,857
)
 
(233,451
)
Proceeds from sale of real estate investments
 
250,445

 
110,015

 
135,161

Proceeds from (issuances of) notes receivable
 
15,648

 
(5,236
)
 

Investments in real estate partnerships
 
(74,238
)
 
(23,529
)
 
(37,879
)
Distributions received from investments in real estate partnerships
 
14,647

 
36,603

 
58,810

Dividends on investment securities
 
531

 
365

 
330

Acquisition of investment securities
 
(23,164
)
 
(23,535
)
 
(55,223
)
Proceeds from sale of investment securities
 
21,587

 
21,378

 
57,590

Net cash used in investing activities
 
(106,024
)
 
(1,007,230
)
 
(408,632
)

81



REGENCY CENTERS, L.P.
Consolidated Statements of Cash Flows
For the years ended December 31, 2018, 2017, and 2016
(in thousands)
 
 
2018
 
2017
 
2016
Cash flows from financing activities:
 
 
 
 
 
 
Net proceeds from common units issued as a result of common stock issued by Parent Company
 

 
88,458

 
548,920

Repurchase of common units in conjunction with tax withholdings on equity award plans
 
(6,772
)
 
(18,649
)
 
(7,984
)
Proceeds from treasury units issued as a result of treasury stock sold by Parent Company
 
99

 
100

 
957

Acquisition of treasury units as a result of treasury stock acquired by Parent Company
 

 

 
(29
)
Common shares repurchased through share repurchase program
 
(213,851
)
 

 

Redemption of preferred partnership units
 

 
(325,000
)
 

Distributions to limited partners in consolidated partnerships, net
 
(4,526
)
 
(8,139
)
 
(4,213
)
Distributions to partners
 
(376,755
)
 
(323,285
)
 
(201,336
)
Distributions to preferred unit holders
 

 
(5,029
)
 
(21,062
)
Repayment of fixed rate unsecured notes
 
(150,000
)
 

 
(300,000
)
Proceeds from issuance of fixed rate unsecured notes, net
 
299,511

 
953,115

 

Proceeds from unsecured credit facilities
 
575,000

 
1,100,000

 
460,000

Repayment of unsecured credit facilities
 
(490,000
)
 
(755,000
)
 
(345,000
)
Proceeds from notes payable
 
1,740

 
131,069

 
53,446

Repayment of notes payable
 
(113,037
)
 
(232,839
)
 
(72,803
)
Scheduled principal payments
 
(9,964
)
 
(10,162
)
 
(5,860
)
Payment of loan costs
 
(9,448
)
 
(13,271
)
 
(2,233
)
Early redemption costs
 
(10,491
)
 
(12,420
)
 
(14,092
)
Net cash (used in) provided by financing activities
 
(508,494
)
 
568,948

 
88,711

Net (decrease) increase in cash and cash equivalents and restricted cash
 
(4,191
)
 
31,502

 
(22,744
)
Cash and cash equivalents and restricted cash at beginning of the year
 
49,381

 
17,879

 
40,623

Cash and cash equivalents and restricted cash at end of the year
 
$
45,190

 
49,381

 
17,879

Supplemental disclosure of cash flow information:
 
 
 
 
 
 
Cash paid for interest (net of capitalized interest of $7,020, $7,946, and $3,482 in 2018, 2017, and 2016, respectively)
 
$
136,645

 
109,956

 
82,950

Cash paid (received) for income taxes
 
$
5,455

 
(269
)
 

Supplemental disclosure of non-cash transactions:
 
 
 
 
 
 
Common stock issued by Parent Company for partnership units exchanged
 
$

 
13,100

 

Mortgage loans assumed for the acquisition of operating real estate
 
$
9,700

 
27,000

 

Change in fair value of securities available-for-sale
 
$
(206
)
 
(8
)
 
24

Common stock issued by Parent Company for dividend reinvestment plan
 
$
1,333

 
1,210

 
1,070

Stock-based compensation capitalized
 
$
3,509

 
3,210

 
2,963

Contributions from limited partners in consolidated partnerships, net
 
$
13,000

 
186

 
8,755

Common stock issued for dividend reinvestment in trust
 
$
841

 
557

 
728

Contribution of stock awards into trust
 
$
1,314

 
1,372

 
1,538

Distribution of stock held in trust
 
$
524

 
677

 
4,114

Equity One Merger:
 
 
 
 
 
 
Notes payable assumed in Equity One merger, at fair value
 
$

 
757,399

 

Common stock exchanged for Equity One shares
 
$

 
4,471,808

 

Deconsolidation of previously consolidated partnership:
 
 
 
 
 
 
Real estate, net
 
$

 

 
14,144

Investments in real estate partnerships
 
$

 

 
(3,355
)
Notes payable
 
$

 

 
(9,415
)
Other assets and liabilities
 
$

 

 
571

Limited partners' interest in consolidated partnerships
 
$

 

 
(2,099
)
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


82


REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018

1.
Summary of Significant Accounting Policies
(a)    Organization and Principles of Consolidation
General
Regency Centers Corporation (the “Parent Company”) began its operations as a REIT in 1993 and is the general partner of Regency Centers, L.P. (the “Operating Partnership”). The Parent Company engages in the ownership, management, leasing, acquisition, development and redevelopment of shopping centers through the Operating Partnership, and has no other assets other than through its investment in the Operating Partnership. The Parent Company's only liabilities are $500 million of unsecured notes, which are co-issued and guaranteed by the Operating Partnership. The Parent Company guarantees all of the unsecured debt of the Operating Partnership. As of December 31, 2018, the Parent Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis (the "Company” or “Regency”) owned 305 properties and held partial interests in an additional 120 properties through unconsolidated Investments in real estate partnerships (also referred to as "joint ventures" or "co-investment partnerships").
On March 1, 2017, Regency completed its merger with Equity One, whereby Equity One merged with and into Regency, with Regency continuing as the surviving public company. Under the terms of the Merger Agreement, each Equity One stockholder received 0.45 of a newly issued share of Regency common stock for each share of Equity One common stock owned immediately prior to the effective time of the merger, resulting in the issuance of approximately $65.5 million shares of Regency common stock to effect the merger.
Estimates, Risks, and Uncertainties
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of commitments and contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates in the Company's financial statements relate to the net carrying values of its real estate investments, collectability of accounts receivable and straight line rent receivable, goodwill, and acquired lease intangible assets and acquired lease intangible liabilities. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken.
Consolidation
The accompanying consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, its wholly-owned subsidiaries, and consolidated partnerships in which the Company has a controlling interest. Investments in real estate partnerships not controlled by the Company are accounted for under the equity method. All significant inter-company balances and transactions are eliminated in the consolidated financial statements.
The Company consolidates properties that are wholly owned or properties where it owns less than 100%, but which it controls. Control is determined using an evaluation based on accounting standards related to the consolidation of VIEs and voting interest entities. For joint ventures that are determined to be a VIE, the Company consolidates the entity where it is deemed to be the primary beneficiary. Determination of the primary beneficiary is based on whether an entity has (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.
Ownership of the Parent Company
The Parent Company has a single class of common stock outstanding.

83

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Ownership of the Operating Partnership
The Operating Partnership's capital includes general and limited common Partnership Units. As of December 31, 2018, the Parent Company owned approximately 99.8%, or 167,904,593, of the 168,254,495 outstanding common Partnership Units of the Operating Partnership, with the remaining limited common Partnership Units held by third parties ("Exchangeable operating partnership units" or "EOP units"). The Parent Company serves as general partner of the Operating Partnership. The EOP unit holders have limited rights over the Operating Partnership such that they do not have the power to direct the activities of the Operating Partnership. Accordingly, the Operating Partnership is considered a VIE, and the Parent Company, which consolidates it, is the primary beneficiary. The Parent Company's only investment is the Operating Partnership. Net income and distributions of the Operating Partnership are allocable to the general and limited common Partnership Units in accordance with their ownership percentages.
Real Estate Partnerships
Regency has a partial ownership interest in 133 properties through partnerships, of which 13 are consolidated. Regency's partners include institutional investors, other real estate developers and/or operators, and individual parties who had a role in Regency sourcing transactions for development and investment (the "Partners" or "limited partners"). Regency has a variable interest in these entities through its equity interests. As managing member, Regency maintains the books and records and typically provides leasing and property management to the partnerships. The Partners’ level of involvement in these partnerships varies from protective decisions (debt, bankruptcy, selling primary asset(s) of business) to involvement in approving leases, operating budgets, and capital budgets. The assets of these partnerships are restricted to the use of the partnerships and cannot be used by general creditors of the Company. And similarly, the obligations of these partnerships can only be settled by the assets of these partnerships.
Those partnerships for which the Partners are involved in the day to day decisions and do not have any other aspects that would cause them to be considered VIEs, are evaluated for consolidation using the voting interest model.
Those partnerships in which Regency has a controlling financial interest are consolidated and the limited partners’ ownership interest and share of net income is recorded as noncontrolling interest.
Those partnerships in which Regency does not have a controlling financial interest are accounted for using the equity method and Regency's ownership interest is recognized through single-line presentation as Investments in real estate partnerships, in the Consolidated Balance Sheet, and Equity in income of investments in real estate partnerships, in the Consolidated Statements of Operations. Cash distributions of earnings from operations from Investments in real estate partnerships are presented in Cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows. Cash distributions from the sale of a property or loan proceeds received from the placement of debt on a property included in Investments in real estate partnerships are presented in Cash flows provided by investing activities in the accompanying Consolidated Statements of Cash Flows. Distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment has resulted in a negative investment balance for one partnership, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.
The net difference in the carrying amount of investments in real estate partnerships and the underlying equity in net assets is accreted to earnings and recorded in Equity in income of investments in real estate partnerships in the accompanying Consolidated Statements of Operations over the expected useful lives of the properties and other intangible assets, which range in lives from 10 to 40 years.
Those partnerships for which the Partners only have protective rights are considered VIEs under ASC Topic 810, Consolidation. Regency is the primary beneficiary of these VIEs as Regency has power over these partnerships and they operate primarily for the benefit of Regency. As such, Regency consolidates these entities and reports the limited partners’ interest as noncontrolling interests.

84

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The majority of the operations of the VIEs are funded with cash flows generated by the properties, or in the case of developments, with capital contributions or third party construction loans. Regency does not provide financial support to the VIEs.
The major classes of assets, liabilities, and noncontrolling equity interests held by the Company's VIEs, exclusive of the Operating Partnership as a whole, are as follows:
(in thousands)
December 31, 2018
December 31, 2017
Assets
 
 
Net real estate investments
$112,085
172,736
Cash and cash equivalents
7,309
4,993
Liabilities
 
 
Notes payable
18,432
16,551
Equity
 
 
Limited partners’ interests in consolidated partnerships
30,280
17,572
Noncontrolling Interests
Noncontrolling Interests of the Parent Company
The consolidated financial statements of the Parent Company include the following ownership interests held by owners other than the common stockholders of the Parent Company: (i) the limited Partnership Units in the Operating Partnership held by third parties ("Exchangeable operating partnership units") and (ii) the minority-owned interest held by third parties in consolidated partnerships (“Limited partners' interests in consolidated partnerships”). The Parent Company has included all of these noncontrolling interests in permanent equity, separate from the Parent Company's stockholders' equity, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity. The portion of net income or comprehensive income attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income of the Parent Company.
In accordance with ASC Topic 480, Distinguishing Liabilities from Equity, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, are to be classified as redeemable noncontrolling interests outside of permanent equity in the Consolidated Balance Sheets. The Parent Company has evaluated the conditions as specified under ASC Topic 480 as it relates to exchangeable operating partnership units outstanding and concluded that it has the right to satisfy the redemption requirements of the units by delivering unregistered common stock. Each outstanding exchangeable operating partnership unit is exchangeable for one share of common stock of the Parent Company, and the unit holder cannot require redemption in cash or other assets. Limited partners' interests in consolidated partnerships are not redeemable by the holders. The Parent Company also evaluated its fiduciary duties to itself, its shareholders, and, as the managing general partner of the Operating Partnership, to the Operating Partnership, and concluded its fiduciary duties are not in conflict with each other or the underlying agreements. Therefore, the Parent Company classifies such units and interests as permanent equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity.
Noncontrolling Interests of the Operating Partnership
The Operating Partnership has determined that limited partners' interests in consolidated partnerships are noncontrolling interests. Subject to certain conditions and pursuant to the terms of the agreement, the Company generally has the right, but not the obligation, to purchase the other member’s interest or sell its own interest in these consolidated partnerships. The Operating Partnership has included these noncontrolling interests in permanent capital, separate from partners' capital, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Capital. The portion of net income (loss) or comprehensive income (loss) attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements Comprehensive Income of the Operating Partnership.

85

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




(b)    Revenues and Tenant Receivable
Leasing Revenue and Receivables
The Company leases space to tenants under agreements with varying terms. Leases are accounted for as operating leases with minimum rent recognized on a straight-line basis over the term of the lease regardless of when payments are due.
When the Company is the owner of the leasehold improvements, recognition of straight-line lease revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements.
More than half of all of the lease agreements with anchor tenants contain provisions that provide for additional rents based on tenants' sales volume ("percentage rent"). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements. Most all lease agreements contain provisions for reimbursement of the tenants' share of real estate taxes, insurance and CAM costs. Recovery of real estate taxes, insurance, and CAM costs are recognized as the respective costs are incurred in accordance with the lease agreements.
The following table represents the components of Tenant and other receivables, net in the accompanying Consolidated Balance Sheets:
 
December 31,
(in thousands)
2018
 
2017
Billed tenant receivables
$
25,590

 
25,329

Accrued CAM, insurance and tax reimbursements
25,305

 
14,825

Other receivables
30,953

 
34,472

Straight-line rent receivables
105,677

 
93,284

Notes receivable

 
15,803

Less: allowance for doubtful accounts
(10,100
)
 
(8,040
)
Less: straight-line rent reserves
(5,066
)
 
(4,688
)
Total tenant and other receivables, net
$
172,359

 
170,985

The Company estimates the collectibility of the accounts receivable related to base rents, straight-line rents, expense reimbursements, and other revenue taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. The Company recorded the following provisions for doubtful accounts:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Gross provision for doubtful accounts
$
4,993

 
3,992

 
1,705

Provision for straight line rent reserve
$
1,741

 
1,129

 
2,271

Real Estate Sales
On January 1, 2018, the Company adopted the new accounting guidance for sales of nonfinancial assets (“Subtopic 610-20”), as discussed further in the section below, Recent Accounting Pronouncements. Upon adoption of the new standard, the Company's accounting policy for real estate sales subject to Subtopic 610-20 has been updated. Effective January 1, 2018, the Company derecognizes real estate and recognizes a gain or loss on sales of real estate when a contract exists and control of the property has transferred to the buyer. Control of the property, including controlling financial interest, is generally considered to transfer upon closing through transfer of the legal title and possession of the property. Any retained noncontrolling interest is measured at fair value. This change in accounting policy resulted in the recognition, through opening retained

86

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




earnings on January 1, 2018, of $30.9 million of previously deferred gains from property sales to the Company's Investments in real estate partnerships.
Prior to January 1, 2018, the Company recognized profits from sales of real estate under the full accrual method by the Company when: (i) a sale was consummated; (ii) the buyer's initial and continuing investment was adequate to demonstrate a commitment to pay for the property; (iii) the Company's receivable, if applicable, was not subject to future subordination; (iv) the Company had transferred to the buyer the usual risks and rewards of ownership; and (v) the Company did not have substantial continuing involvement with the property.
Management Services
On January 1, 2018, the Company adopted the new accounting guidance for revenue recognition (Topic 606 Revenue from Contracts with Customers, “Topic 606”), as discussed further in the section below, Recent Accounting Pronouncements. Upon adoption of the new standard, certain of the Company's significant accounting policies subject to Topic 606 have been updated.
The Company adopted Topic 606 using a modified retrospective approach and applied the transition practical expedients allowed by the standard. Additionally, the Company does not need to estimate variable consideration to recognize revenue and was able to apply the practical expedient related to the remaining performance obligations, because all of its performance obligations are:
satisfied at a point in time,
part of a contract that has an original expected duration of one year or less, or
considered to be a series of performance obligations where variable consideration is allocated entirely to a wholly unsatisfied distinct day of service that forms part of the series.
Subsequent to the adoption of Topic 606, the Company recognizes revenue when or as control of the promised services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The following is a description of the Company's revenue from contracts with customers which is in the scope of Topic 606.
Property and Asset Management Services
The Company is engaged under agreements with its joint venture partnerships, which are generally perpetual in nature and cancellable through unanimous partner approval, absent an event of default. Under these agreements, the Company is to provide asset management, property management, and leasing services for the joint ventures' shopping centers. The fees are market-based, generally calculated as a percentage of either revenues earned or the estimated values of the properties managed or the proceeds received, and are recognized over the monthly or quarterly periods as services are rendered. Property management and asset management services represent a series of distinct daily services. Accordingly, the Company satisfies its performance obligation as service is rendered each day and the variability associated with that compensation is resolved each day. Amounts due from the partnerships for such services are paid during the month following the monthly or quarterly service periods.
Several of the Company’s partnership agreements provide for incentive payments, generally referred to as “promotes” or “earnouts,” to Regency for appreciation in property values in Regency's capacity as manager. The terms of these promotes are based on appreciation in real estate value over designated time intervals. The Company evaluates its expected promote payout at each reporting period, which generally does not result in revenue recognition until the measurement period has completed, when the amount can be reasonably determined and the amount is not probable of significant reversal. The Company did not recognize any promote revenue during the years ended December 31, 2018, 2017, or 2016.
Leasing Services
Leasing service fees are based on a percentage of the total rent due under the lease. The leasing service is considered performed upon successful execution of an acceptable tenant lease for the joint ventures’ shopping centers, at which time revenue is recognized. Payment of the first half of the fee

87

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




is generally due upon lease execution and the second half is generally due upon tenant opening or rent payments commencing.
Transaction Services
The Company also receives transaction fees, as contractually agreed upon with each joint venture, which include acquisition fees, disposition fees, and financing service fees. Control of these services is generally transferred at the time the related transaction closes, which is the point in time when the Company recognizes the related fee revenue. Any unpaid amounts related to transaction-based fees are included in Tenant and other receivables, net, within the Consolidated Balance Sheets.
All income from management service contracts is included within Management, transaction and other fees on the Consolidated Statements of Operations, as follows:
 
 
 
 
Year ended December 31,
(in thousands)
 
Timing of satisfaction of performance obligations
 
2018
 
2017
 
2016
Property management services
 
Over time
$
14,663

 
13,917

 
13,075

Asset management services
 
Over time
 
7,213

 
7,090

 
6,746

Leasing services
 
Point in time
 
4,044

 
3,573

 
4,285

Other transaction fees
 
Point in time
 
2,574

 
1,578

 
1,221

Total management, transaction, and other fees
$
28,494

 
26,158

 
25,327

The accounts receivable for management services, which is included within Tenant and other receivables, net, in the accompanying Consolidated Balance Sheets, are $12.5 million and $8.7 million, as of December 31, 2018 and 2017.
(c)    Real Estate Investments
The following table details the components of Real estate assets in the Consolidated Balance Sheets:
(in thousands)
 
December 31, 2018
 
December 31, 2017
Land
 
$
4,205,445

 
4,235,032

Land improvements
 
613,847

 
556,140

Buildings
 
5,088,102

 
4,999,378

Building and tenant improvements
 
901,596

 
787,880

Construction in progress
 
54,172

 
314,391

Total real estate assets
 
$
10,863,162

 
10,892,821

Capitalization and Depreciation
Maintenance and repairs that do not improve or extend the useful lives of the respective assets are recorded in operating and maintenance expense.
As part of the leasing process, the Company may provide the lessee with an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and recorded as tenant improvements, and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of minimum rent. Factors considered during this evaluation include, among other things, who holds legal title to the improvements as well as other controlling rights provided by the lease agreement and provisions for substantiation of such costs (e.g. unilateral control of the tenant space during the build-out process). Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease.

88

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Depreciation is computed using the straight-line method over estimated useful lives of approximately 15 years for land improvements, 40 years for buildings and improvements, and the shorter of the useful life or the remaining lease term subject to a maximum of 10 years for tenant improvements, and three to seven years for furniture and equipment.
Development Costs
Land, buildings, and improvements are recorded at cost. All specifically identifiable costs related to development activities are capitalized into Real estate assets in the accompanying Consolidated Balance Sheets, and are included in Construction in progress within the above table. The capitalized costs include pre-development costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, and allocated direct employee costs incurred during the period of development. Interest costs are capitalized into each development project based upon applying the Company's weighted average borrowing rate to that portion of the actual development costs expended. The Company discontinues interest and real estate tax capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would the Company capitalize interest on the project beyond 12 months after substantial completion of the building shell.
Pre-development costs represent the costs the Company incurs prior to land acquisition including contract deposits, as well as legal, engineering, and other external professional fees related to evaluating the feasibility of developing a shopping center. As of December 31, 2018 and 2017, the Company had deposits of approximately $550,000 and $3.5 million, respectively, included in Construction in progress. If the Company determines that the development of a particular shopping center is no longer probable, any related pre-development costs previously capitalized are immediately expensed. During the years ended December 31, 2018, 2017, and 2016, the Company expensed pre-development costs of approximately $1.9 million, $1.5 million, and $1.5 million, respectively, in Other operating expenses in the accompanying Consolidated Statements of Operations.
Acquisitions
Through June 30, 2017, the Company and its real estate partnerships accounted for operating property acquisitions as business combinations using the acquisition method. Effective July 1, 2017, upon the adoption of Accounting Standards Update ("ASU") 2017-01: Business Combinations (Topic 805) - Clarifying the Definition of a Business, operating property acquisitions are generally considered asset acquisitions. The Company expenses transaction costs associated with business combinations in the period incurred and capitalizes transaction costs associated with asset acquisitions. Both business combinations and asset acquisitions require that the Company recognize and measure the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the operating property acquired ("acquiree").
The Company's methodology includes estimating an “as-if vacant” fair value of the physical property, which includes land, building, and improvements. In addition, the Company determines the estimated fair value of identifiable intangible assets and liabilities, considering the following categories: (i) value of in-place leases, and (ii) above and below-market value of in-place leases.
The value of in-place leases is estimated based on the value associated with the costs avoided in originating leases compared to the acquired in-place leases as well as the value associated with lost rental and recovery revenue during the assumed lease-up period. The value of in-place leases is recorded to Depreciation and amortization expense in the Consolidated Statements of Operations over the remaining expected term of the respective leases.
Above-market and below-market in-place lease values for acquired properties are recorded based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for comparable in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, including below-market renewal options, if applicable. The value of above-market leases is amortized as a reduction of minimum rent over the remaining terms of the respective leases and the value of below-market leases is accreted to minimum rent over the remaining terms of the respective leases, including below-market renewal options, if applicable. The Company does not assign value to customer

89

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




relationship intangibles if it has pre-existing business relationships with the major retailers at the acquired property since they do not provide incremental value over the Company's existing relationships.
Held for Sale
The Company classifies land, an operating property, or a property in development as held-for-sale upon satisfaction of the following criteria: (i) management commits to a plan to sell a property (or group of properties), (ii) the property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such properties, (iii) an active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated, (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year, (v) the property is being actively marketed for sale, and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Properties held-for-sale are carried at the lower of cost or fair value less costs to sell.
Impairment
We evaluate whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. For those properties with such indicators, management evaluates recoverability of the property's carrying amount. Through the evaluation, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated hold period, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and could differ materially from actual results. Changes in our disposition strategy or changes in the marketplace may alter the hold period of an asset or asset group which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. To the extent that the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value. If such indicators are not identified, management will not assess the recoverability of a property's carrying value. If a property previously classified as held and used is changed to held-for-sale, the Company estimates fair value, less expected costs to sell, which could cause the Company to determine that the property is impaired.
The fair value of real estate assets is subjective and is determined through comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization method or the traditional discounted cash flow approach. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors, and therefore is subject to management judgment and changes in those factors could impact the determination of fair value. In estimating the fair value of undeveloped land, the Company generally uses market data and comparable sales information.
A loss in value of investments in real estate partnerships under the equity method of accounting, other than a temporary decline, must be recognized in the period in which the loss occurs. If management identifies indicators that the value of the Company's investment in real estate partnerships may be impaired, it evaluates the investment by calculating the fair value of the investment by discounting estimated future cash flows over the expected term of the investment.
Tax Basis
The net book basis of the Company's real estate assets exceeds the net tax basis by approximately $2.8 billion at both December 31, 2018 and 2017, primarily due to the tax free merger with Equity One and inheriting lower carryover tax basis.

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




(d)    Cash and Cash Equivalents and Restricted Cash
Any instruments which have an original maturity of 90 days or less when purchased are considered cash equivalents. As of December 31, 2018 and 2017, $2.7 million and $4.0 million, respectively, of cash was restricted through escrow agreements and certain mortgage loans, and are presented as Restricted cash in the Consolidated Balance Sheets.
(e)    Other Assets
Goodwill
Goodwill represents the excess of the purchase price consideration for the Equity One merger over the fair value of the assets acquired and liabilities assumed. The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles - Goodwill and Other, and allocates its goodwill to its reporting units, which have been determined to be at the individual property level. The Company performs an impairment evaluation of its goodwill at least annually, in November of each year, or more frequently as triggers occur.
The goodwill impairment evaluation is completed using either a qualitative or quantitative approach. Under a qualitative approach, the impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that the reporting unit’s fair value is less than its carrying value, including goodwill. If a qualitative approach indicates it is more likely-than-not that the estimated carrying value of a reporting unit (including goodwill) exceeds its fair value, or if the Company chooses to bypass the qualitative approach for any reporting unit, the Company will perform the quantitative approach described below.
The quantitative approach consists of estimating the fair value of each reporting unit using discounted projected future cash flows and comparing those estimated fair values with the carrying values, which include the allocated goodwill. If the estimated fair value is less than the carrying value, the Company would then recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
Investments
The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. The fair value of securities is determined using quoted market prices.
Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized through earnings in Investment income in the Consolidated Statements of Operations. Debt securities not classified as held to maturity or as trading, are classified as available-for-sale, and are carried at fair value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in the Consolidated Statements of Comprehensive Income.
Equity securities with readily determinable fair values are measured at fair value with changes in the fair value recognized through net income and presented within Investment income in the Consolidated Statements of Operations.
(f)    Deferred Leasing Costs
Deferred leasing costs consist of internal and external commissions and legal costs associated with leasing the Company's shopping centers, and are presented net of accumulated amortization. Such costs are amortized over the period through lease expiration. If the lease is terminated early, the remaining leasing costs are written off. See note 1(o), Recent Accounting Pronouncements, for expected changes in 2019 upon adoption of a new accounting standard.

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




(g)    Derivative Financial Instruments
The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or future payment of known and uncertain cash amounts, the amount of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash payments principally related to the Company's borrowings.
All derivative instruments, whether designated in hedging relationships or not, are recorded on the accompanying Consolidated Balance Sheets at their fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
The Company uses interest rate swaps to mitigate its interest rate risk on a related financial instrument or forecasted transaction, and the Company designates these interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges generally involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company also utilizes cash flow hedges to lock U.S. Treasury rates in anticipation of future fixed-rate debt issuances. The gains or losses resulting from changes in fair value of derivatives that qualify as cash flow hedges are recognized in Accumulated other comprehensive income (“AOCI”). Upon the settlement of a hedge, gains and losses remaining in AOCI are amortized through earnings over the underlying term of the hedged transaction. The cash receipts or payments related to interest rate swaps are presented in cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows.
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows and/or forecasted cash flows of the hedged items.
In assessing the valuation of the hedges, the Company uses standard market conventions and techniques such as discounted cash flow analysis, option pricing models, and termination costs at each balance sheet date. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.
(h)    Income Taxes
The Parent Company believes it qualifies, and intends to continue to qualify, as a REIT under the Code. As a REIT, the Parent Company will generally not be subject to federal income tax, provided that distributions to its stockholders are at least equal to REIT taxable income. Each wholly-owned corporate subsidiary of the Operating Partnership has elected to be a TRS as defined in Section 856(l) of the Code. The TRS's are subject to federal and state income taxes and file separate tax returns. As a pass through entity, the Operating Partnership generally does not pay taxes, but its taxable income or loss is reported by its partners, of which the Parent Company, as general partner and approximately 99.8% owner, is allocated its pro-rata share of tax attributes.
The Company accounts for income taxes related to its TRS’s under the asset and liability approach, which requires the recognition of the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in

92

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




effect for the year in which the differences are expected to reverse. The Company records net deferred tax assets to the extent it believes it is more likely than not that these assets will be realized. A valuation allowance is recorded to reduce deferred tax assets when it is believed that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company considers all available positive and negative evidence, including forecasts of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards, tax planning strategies and recent and projected results of operations in order to make that determination.
In addition, tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open tax years (2015 and forward for federal and state) based on an assessment of many factors including past experience and interpretations of tax laws applied to the facts of each matter.
The Tax Cuts and Jobs Act (the “Act”) was signed into law in December 2017. Key provisions in the Act have significant financial statement effects. These effects include remeasurement of deferred taxes, recognition of liabilities for taxes on mandatory deemed repatriation and certain other foreign income, and reassessment of the realizability of deferred tax assets. Because the asset and liability approach under ASC 740 requires companies to recognize the effect of tax law changes in the period of enactment, the effects were recognized in the Company's December 2017 financial statements, even though the effective date of the law for most provisions is January 1, 2018. The Company calculated the tax impact of the change in tax law. The revaluation of the deferred tax assets and liabilities at the appropriate tax rate resulted in a $9.7 million benefit recognized in earnings for 2017. To the extent that all information necessary was not available, prepared or analyzed, companies were allotted a measurement period to make adjustments for the effect of the law. The Company completed its analysis of the Act during 2018 and recorded an immaterial benefit in earnings.
(i)    Earnings per Share and Unit
Basic earnings per share of common stock and unit are computed based upon the weighted average number of common shares and units, respectively, outstanding during the period. Diluted earnings per share and unit reflect the conversion of obligations and the assumed exercises of securities including the effects of shares issuable under the Company's share-based payment arrangements, if dilutive. Dividends paid on the Company's share-based compensation awards are not participating securities as they are forfeitable.
(j)    Stock-Based Compensation
The Company grants stock-based compensation to its employees and directors. The Company recognizes the cost of stock-based compensation based on the grant-date fair value of the award, which is expensed over the vesting period.
When the Parent Company issues common stock as compensation, it receives a like number of common units from the Operating Partnership. The Company is committed to contributing to the Operating Partnership all proceeds from the share-based awards granted under the Parent Company's Long-Term Omnibus Plan (the “Plan”). Accordingly, the Parent Company's ownership in the Operating Partnership will increase based on the amount of proceeds contributed to the Operating Partnership for the common units it receives. As a result of the issuance of common units to the Parent Company for stock-based compensation, the Operating Partnership records the effect of stock-based compensation for awards of equity in the Parent Company.
(k)    Segment Reporting
The Company's business is investing in retail shopping centers through direct ownership or partnership interests. The Company actively manages its portfolio of retail shopping centers and may from time to time make decisions to sell lower performing properties or developments not meeting its long-term investment objectives. The proceeds from sales are generally reinvested into higher quality retail shopping centers, through acquisitions, new developments, or redevelopment of existing centers, which management believes will generate sustainable revenue growth and attractive returns. It is management's intent that all retail shopping centers will be owned or developed for investment purposes; however, the Company may decide to

93

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




sell all or a portion of a development upon completion. The Company's revenues and net income are generated from the operation of its investment portfolio. The Company also earns fees for services provided to manage and lease retail shopping centers owned through joint ventures.
The Company's portfolio is located throughout the United States. Management does not distinguish or group its operations on a geographical basis for purposes of allocating resources or capital. The Company reviews operating and financial data for each property on an individual basis; therefore, the Company defines an operating segment as its individual properties. The individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the centers, tenants and operational processes, as well as long-term average financial performance.
(l)    Business Concentration
Grocer anchor tenants represent approximately 18% of pro-rata annual base rent. No single tenant accounts for 5% or more of revenue and none of the shopping centers are located outside the United States.
(m)    Fair Value of Assets and Liabilities
Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.
Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity.
The Company also remeasures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent periods if a remeasurement event occurs.
(n)    Reclassifications
Certain amounts included in the Consolidated Balance Sheets for 2017 have been reclassified to conform to the 2018 financial statement presentation as a result of changes in presentation of Real estate assets, at cost.



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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




(o)    Recent Accounting Pronouncements
The following table provides a brief description of recent accounting pronouncements and expected impact on our financial statements:
Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
Recently adopted:
 
 
 
 
 
 
 
 
 
 
 
 
 
ASU 2017-12, August 2017, Targeted Improvements to Accounting for Hedging Activities
 
This ASU provides updated guidance to better align a company’s financial reporting for hedging activities with the economic objectives of those activities.

The adoption method requires the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update.
 
January 2018
 
The Company adopted this ASU using a modified retrospective transition method, which resulted in an immaterial adjustment to opening retained earnings and accumulated other comprehensive income for previously recognized hedge ineffectiveness from off-market hedges.
 
 
 
 
 
 
 
ASU 2016-01, January 2016, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
 
This ASU amends the guidance on equity securities with readily determinable fair values to no longer require classification as either trading or available-for-sale and now requires equity securities to be measured at fair value with changes in the fair value recognized through net income. Equity investments accounted for under the equity method are not included in the scope of this amendment.

 
January 2018
 
The Company's adoption of this standard did not have a significant impact on its results of operations, financial condition or cash flows as the Company had, at January 1, 2018, an insignificant amount of equity securities within the scope of this standard.
The adoption did not result in a material impact to the Company's fair value disclosures.
 
 
 
 
 
 
 
ASU 2016-15, August 2016, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
 
This ASU makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows.
 
January 2018
 
The adoption of this ASU did not result in a change to the Company's Consolidated Statements of Cash Flows.
 
 
 
 
 
 
 

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
ASU 2016-18, November 2016, Statement of Cash Flows (Topic 230): Restricted Cash
 
This ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. The amendments in this ASU are applied using a retrospective transition method to each period presented.
 
January 2018
 
The adoption of this ASU resulted in a change to the classification and presentation of changes in restricted cash on its cash flow statement, which was not material. There was no change to the Company's financial condition or results of operations as a result of adopting this ASU.

Upon adoption, and for the years ended December 31, 2017 and 2016, net cash provided by operating activities decreased by $1.4 million and $298,000, and net cash used in investing activities increased by $749,000 and decreased $1.2 million, respectively, with a corresponding increase in cash and cash equivalents and restricted cash within the Consolidated Statements of Cash Flows.
 
 
 
 
 
 
 
ASU 2017-05, February 2017, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (Subtopic 610-20)
 
ASU 2017-05 clarifies that ASC 610-20 applies to all nonfinancial assets (including real estate) for which the counterparty is not a customer and requires an entity to derecognize a nonfinancial asset in a partial sale transaction when it ceases to have a controlling financial interest in the asset and has transferred control of the asset. Once an entity transfers control of the nonfinancial asset, the entity is required to measure any noncontrolling interest it receives or retains at fair value.

Under the current guidance, a partial sale is recognized and carryover basis is used for the retained interest resulting in only partial gain recognition by the entity, however, the new guidance eliminates the use of carryover basis and generally requires the full gain be recognized.

 
January 2018
 
Sales of real estate assets are now accounted for under Subtopic 610-20, which provides for revenue recognition based on transfer of control.

For normal arms length property sales to unrelated parties, where Regency has no retained interest in the property, the Company will continue to recognize the full gain or loss upon transfer of control. For property sales in which Regency retains a noncontrolling interest in the property, fair value recognition for the retained noncontrolling interest is now required, which will result in full gain recognition upon loss of control.

The Company applied the modified retrospective adoption method, and on January 1, 2018, recognized through opening retained earnings $30.9 million of previously deferred gains from property sales to entities in which Regency had continuing involvement, resulting in a corresponding increase to the value of the Company's investment in those partnerships.
 
 
 
 
 
 
 

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
Revenue from Contracts with Customers (Topic 606) and related updates:

ASU 2014-09, May 2014,
Revenue from Contracts with Customers (Topic 606)

ASU 2016-08, March 2016, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations

ASU 2016-10, April 2016,
Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing

ASU 2016-12, May 2016,
Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients

ASU 2016-19, December 2016,
Technical Corrections and Improvements

ASU 2016-20, December 2016,
Technical Corrections and Improvements to Topic 606 Revenue from Contracts With Customers
 
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of Topic 606 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It supersedes most of the existing revenue guidance, including industry-specific guidance. The core principal of this new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying Topic 606, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized.

Topic 606 applies to all contracts with customers except those that are within the scope of other topics in the FASB's accounting standards codification. As a result, Topic 606 does not apply to revenue from lease contracts. The Company's lease contracts will be subject to Topic 842, in January 2019.
 
January 2018
 
The Company utilized the modified retrospective method of adoption, applying the standard to only 2018, and not restating prior periods presented in future financial statements.

The majority of the Company's revenue originates from lease contracts and will be subject to Topic 842 to be adopted in January 2019.

Beyond revenue from lease contracts, the Company's primary revenue stream subject to Topic 606 is Management, transaction, and other fees from the Company's real estate partnerships, primarily in the form of property management services, asset management services, and leasing services. The Company evaluated all partnership service relationships and did not identify any changes in the timing or amount of revenue recognition from these revenue streams.

The adoption of Topic 606 resulted in additional disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, as seen in Note 1(b).
 
 
 
 
 
 
 

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
Not yet adopted:
 
 
 
 
 
 
Leases (Topic 842) and related updates:

ASU 2016-02, February 2016,
Leases (Topic 842)

ASU 2018-10, July 2018:
 Codification Improvements to Topic 842, Leases

ASU 2018-11, July 2018, Leases (Topic 842):
Targeted Improvements
ASU 2018-20, December 2018, Leases (Topic 842): Narrow-Scope Improvements for Lessors
 
Topic 842 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. It also makes targeted changes to lessor accounting.

The provisions of these ASUs are effective as of January 1, 2019, with early adoption permitted. Topic 842 provides a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief or an additional transition method, allowing for initial application at the date of adoption and a cumulative-effect adjustment to opening retained earnings.
 
January 2019
 
The Company continues to evaluate the impact this standard will have on its financial statements and related disclosures. Based on adoption and implementation efforts to date, management has identified expected changes from the new standard from its perspective as both a lessee and a lessor, as noted in the following pages.
 
 
 
 
 
 
 

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
Topic 842, Leases (continued)
 
Lessee Accounting:
The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparable period presented in the financial statements as its date of initial application. The Company will elect option 1 and only present as of the effective date.

The new standard provides a number of optional practical expedients in transition. The Company expects to elect the “package of practical expedients”, which allows the Company not to reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs.

The new standard will also provide significant new disclosures about the Company’s leasing activities.
 
 
 

The Company has ground lease agreements in which the Company is the lessee for land beneath all or a portion of the buildings at certain consolidated shopping centers. The Company also has office leases for its headquarters and field offices.

Based on current estimates, the Company anticipates recognizing operating lease liabilities for its ground and office leases, with a corresponding ROU asset, of less than 5% of total assets. For these existing operating leases, the Company will continue to recognize a single lease expense for its existing ground and office operating leases, currently included in Operating and maintenance expenses and General and administrative expenses, respectively, in the Consolidated Statements of Operations.

Future ground leases entered into or acquired subsequent to the adoption date may be classified as operating or finance leases, based on specific classification criteria. Finance leases would result in a slightly accelerated impact to earnings, using the effective interest method, and different classification of the expense.
 
 
 
 
 
 
 

99

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
Topic 842, Leases (continued)
 
Lessor Accounting:
Topic 842 requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases.

The new standard also includes a change to the treatment of internal leasing costs and legal costs, which can no longer be capitalized. Only incremental costs of a lease that would not have been incurred if the lease had not been obtained may be deferred as initial direct costs.

Additionally, the new standard requires lessors to allocate the consideration in a contract between the lease component (right to use an underlying asset) and non-lease component (transfer of a good or service that is not a lease). However, lessors are provided with a practical expedient, elected by class of underlying asset, to account for lease and non-lease components of a contract as a single lease component if certain criteria are met. Lessors that make these elections will be required to provide additional disclosures.
 
 
 

The Company's existing lessor leases will continue to be classified as operating leases. Leases entered into after the effective date of the new standard may be classified as operating or sales-type leases, based on specific classification criteria. Operating leases will continue to have a similar patter of recognition as under current GAAP. Sales-type lease accounting, however, will result in the recognition of selling-profit at lease commencement, with interest income recognized over the life of the lease.

The terms of the Company's leases generally provide that the Company is entitled to receive reimbursements from tenants for operating expenses such as real estate taxes, insurance and CAM, in addition to the base rental payments for use of the underlying asset (e.g. unit of the shopping center). Under the new standard, CAM is considered a non-lease component of a lease contract, which would be accounted for under Topic 606. However, the Company expects to apply the practical expedient to account for its lease and non-lease components as a single, combined operating lease component. While the timing of recognition should remain the same, the Company expects to no longer present Minimum rent and Recoveries from tenants separately in our Consolidated Statements of Operations beginning January 1, 2019.

Capitalization of indirect internal leasing costs and legal costs will no longer be permitted upon the adoption of this standard, which will result in an increase in Total operating expenses in the Consolidated Statements of Operations in the period of adoption and prospectively.
Previous capitalization of internal leasing costs was $6.5 million, $10.4 million, and $10.5 million during the years ended December 31, 2018, 2017, and 2016, respectively.

Previous capitalization of legal costs was $1.6 million, $1.2 million, and $0.7 million during the years ended December 31, 2018, 2017 and 2016, respectively, including our pro rata share recognized through Equity in income of investments in real estate partnerships.

The Company will continue its evaluation of the accounting standard, additional impacts of adoption, and changes in presentation and disclosure requirements.
 
 
 
 
 
 
 

100

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Standard
 
Description
 
Date of adoption
 
Effect on the financial statements or other significant matters
ASU 2018-15, August 2018, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
 
The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU provides further clarification of the appropriate presentation of capitalized costs, the period over which to recognize the expense, the presentation within the Statements of Operations and Statements of Cash Flows, and the disclosure requirements.

Early adoption of the standard is permitted.
 
January 2020
 
The Company is currently evaluating the accounting standard, but does not expect the adoption to have a material impact on its financial position, results of operations, or cash flows.
 
 
 
 
 
 
 
ASU 2016-13, June 2016, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
 
This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

This ASU also applies to how the Company determines its allowance for doubtful accounts on tenant receivables.
 
January 2020
 
The Company is evaluating the alternative methods of adoption and the impact it will have on its financial statements and related disclosures.
 
 
 
 
 
 
 
ASU 2018-13, August 2018, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
 
This ASU modifies the disclosure requirements for fair value measurements within the scope of Topic 820, Fair Value Measurement, including the removal and modification of certain existing disclosures, and the addition of new disclosures.
 
January 2020
 
The Company is currently evaluating the impact of adopting this new accounting standard, which is expected to only impact fair value measurement disclosures and therefore should have minimal impact on the Company's financial position, results of operations, or cash flows.


101

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




2.
Real Estate Investments
Acquisitions
The following tables detail the shopping centers acquired or land acquired or leased for development.
(in thousands)
 
December 31, 2018
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
01/10/18
 
Hewlett Crossing I & II
 
Hewlett, NY
 
Operating
 
$
30,900

 
9,700

 
3,114

 
1,868

04/03/18
 
Rivertowns Square
 
Dobbs Ferry, NY
 
Operating
 
68,933

 

 
4,993

 
5,554

12/14/18
 
Pablo Plaza (1)
 
Jacksonville, FL
 
Operating
 
1,310

 

 

 

12/27/18
 
The Village at Hunter's Lake
 
Tampa, FL
 
Development
 
1,812

 

 

 

12/31/18
 
Carytown Exchange (2)
 
Richmond, VA
 
Development
 
13,284

 

 
264

 

Total property acquisitions
 
$
116,239

 
9,700

 
8,371

 
7,422

(1) The Company purchased a 5,000 square foot building adjacent to the Company's existing operating Pablo Plaza for redevelopment.
(2)  The Company closed on the Carytown Exchange development, with a partner contributing land valued at $13 million which is recorded within Limited partners' interest in consolidated partnerships in the accompanying Consolidated Balance Sheets. Regency is contributing the capital to fund the development, which is currently estimated to be approximately $26 million.
(in thousands)
 
December 31, 2017
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
03/06/17
 
The Field at Commonwealth
 
Chantilly, VA
 
Development
 
$
9,500

 

 

 

03/08/17
 
Pinecrest Place (1)
 
Miami, FL
 
Development
 

 

 

 

04/13/17
 
Mellody Farm (2)
 
Chicago, IL
 
Development
 
26,200

 

 

 

06/28/17
 
Concord outparcel (3)
 
Miami, FL
 
Operating
 
350

 

 

 

07/20/17
 
Aventura Square outparcel (4)
 
Miami, FL
 
Operating
 
1,750

 

 
90

 
9

11/15/17
 
Indigo Square
 
Mount Pleasant, SC
 
Development
 
3,900

 

 

 

12/21/17
 
Scripps Ranch Marketplace
 
San Diego, CA
 
Operating
 
81,600

 
27,000

 
4,997

 
9,551

12/28/17
 
Roosevelt Square
 
Seattle, WA
 
Operating
 
68,084

 

 
3,842

 
8,002

Total property acquisitions
 
$
191,384

 
27,000

 
8,929

 
17,562

(1) The Company leased 10.67 acres for a ground up development.
(2) The Operating Partnership issued 195,732 partnership units valued at $13.1 million as partial consideration for the purchase price.
(3) The Company purchased a 0.67 acre vacant outparcel adjacent to the Company's existing operating Concord Shopping Plaza.
(4) The Company purchased a 0.06 acre outparcel improved with a leased building adjacent to the Company's existing operating Aventura Square.
Equity One Merger
General
On March 1, 2017, Regency completed its merger with Equity One, a NYSE listed shopping center company, whereby Equity One merged with and into Regency, with Regency continuing as the surviving public company. Under the terms of the Merger Agreement, each Equity One stockholder received 0.45 of a newly issued share of Regency common stock for each share of Equity One common stock owned immediately prior to the effective time of the merger resulting in approximately 65.5 million Regency common shares being issued to effect the merger.

102

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The following table provides the components that make up the total purchase price for the Equity One merger:
(in thousands, except stock price)
Purchase Price
Shares of common stock issued for merger
65,379

Closing stock price on March 1, 2017
$
68.40

Value of common stock issued for merger
$
4,471,808

Other cash payments
721,297

Total purchase price
$
5,193,105

As part of the merger, Regency acquired 121 properties, including 8 properties held through co-investment partnerships. The consolidated net assets and results of operations of Equity One are included in the consolidated financial statements from the closing date, March 1, 2017, going forward and resulted in the following impact to Revenues and Net income attributable to common stockholders:
(in thousands)
Year ended December 31, 2017
Increase in total revenues
$
337,761

Increase in net income attributable to common stockholders
$
81,766

The Company incurred $80.7 million and $6.5 million, respectively, of merger-related transaction costs during the years ended December 31, 2017 and 2016, which are recorded in Other operating expenses in the accompanying Consolidated Statements of Operations, and are not reflected in the table above.
Final Purchase Price Allocation of Merger
The Equity One merger has been accounted for using the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their acquisition date fair values and allows a measurement period, not to exceed one year from the acquisition date, to finalize the acquisition date fair values. The merger closed on March 1, 2017, and the Company finalized its purchase price allocation by March 1, 2018.
The acquired assets and assumed liabilities of an acquired operating property generally include, but are not limited to: land, buildings and improvements, identified tangible and intangible assets and liabilities associated with in-place leases, including tenant improvements, leasing costs, value of above-market and below-market leases, and value of acquired in-place leases. This methodology requires estimating an “as-if vacant” fair value of the physical property, which includes land, building, and improvements and also determining the estimated fair value of identifiable intangible assets and liabilities, considering the following categories: (i) value of in-place leases, and (ii) above and below-market value of in-place leases, and deferred taxes related to the book tax difference created through purchase accounting. The excess of the purchase price consideration over the fair value of assets acquired and liabilities assumed resulted in goodwill in the business combination. The goodwill is not deductible for tax purposes.
The fair value of the acquired operating properties is based on a valuation prepared by Regency with assistance of a third party valuation specialist. The third party used stabilized NOI and market specific capitalization and discount rates as the primary inputs in determining the fair value of the real estate assets. Management reviewed the inputs used by the third party specialist as well as the allocation of the purchase price to ensure reasonableness and that the procedures were performed in accordance with management's policy. Management and the third party valuation specialist have prepared their fair value estimates for each of the operating properties acquired, and completed the purchase price allocation during the measurement period.

103

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The following table summarizes the final purchase price allocation based on the Company's valuation, including estimates and assumptions of the acquisition date fair value of the tangible and intangible assets acquired and liabilities assumed:
(in thousands)
 
Final Purchase Price Allocation
Land
 
$
2,865,053

Building and improvements
 
2,619,163

Construction in progress
 
68,744

Properties held for sale
 
19,600

Investments in unconsolidated real estate partnerships
 
99,666

Real estate assets
 
5,672,226

Cash, accounts receivable and other assets
 
112,909

Intangible assets
 
458,877

Goodwill
 
332,384

Total assets acquired
 
6,576,396

Notes payable
 
757,399

Accounts payable, accrued expenses, and other liabilities
 
122,217

Lease intangible liabilities
 
503,675

Total liabilities assumed
 
1,383,291

Total purchase price
 
$
5,193,105

The allocation of the purchase price described above requires a significant amount of judgment and represents management's best estimate of the fair value as of the acquisition date.
The following table details the weighted average amortization and net accretion periods, in years, of the major classes of intangible assets and intangible liabilities arising from the Equity One merger:
(in years)
 
Weighted Average Amortization Period
Assets:
 
 
In-place leases
 
10.8
Above-market leases
 
7.8
Below-market ground leases
 
55.3
Liabilities:
 
 
Below-market leases
 
24.9

104

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Pro forma Information (unaudited)
The following unaudited pro forma financial data includes the incremental revenues, operating expenses, depreciation and amortization, and costs of the Equity One acquisition as if it had occurred on January 1, 2016:
 
 
 
Year ended December 31,
(in thousands, except per share data)
 
 
2017
2016
Total revenues
 
 
$
1,052,221

1,006,367

Income from operations
(1) 
 
281,393

63,907

Net income attributable to common stockholders
(1) 
 
262,270

40,868

Income per common share - basic
 
 
1.54

0.25

Income per common share - diluted
 
 
1.54

0.25

(1) The pro forma earnings for the year ended December 31, 2017, were adjusted to exclude $103.6 million of merger costs, as if they had occurred during 2016.
The pro forma financial data is not necessarily indicative of what the actual results of operations would have been assuming the transaction had been completed as set forth above, nor does it purport to represent the results of operations for future periods.
3.
Property Dispositions
Dispositions
The following table provides a summary of consolidated shopping centers and land parcels disposed of:
 
Year ended December 31,
 
(in thousands, except number sold data)
2018
 
2017
 
2016
 
Net proceeds from sale of real estate investments
$
250,445

 
110,015


135,161

'(1) 
Gain on sale of real estate, net of tax
$
28,343

 
27,432

 
47,321

 
Provision for impairment of real estate sold
$
31,041

 

 
1,700

 
Number of operating properties sold
10

 
6

 
11

 
Number of land parcels sold
9

 
9

 
16

 
 
 
 
 
 
 
 
(1) Includes cash deposits received in the previous year.
 
At December 31, 2018, the Company also had four properties classified as Properties held for sale on the Consolidated Balance Sheets, which have sold or are expected to sell subsequent to December 31, 2018.


105

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




4.
Investments in Real Estate Partnerships
The Company invests in real estate partnerships, which consist of the following:
 
December 31, 2018
(in thousands)
Regency's Ownership
 
Number of Properties
 
Total Investment
 
Total Assets of the Partnership
 
The Company's Share of Net Income of the Partnership
 
Net Income of the Partnership
GRI - Regency, LLC (GRIR)
40.00%
 
70
 
$
189,381

 
1,646,448

 
29,614

 
74,139

New York Common Retirement Fund (NYC)
30.00%
 
6
 
54,250

 
277,626

 
490

 
2,239

Columbia Regency Retail Partners, LLC (Columbia I)
20.00%
 
7
 
13,625

 
141,807

 
1,311

 
6,650

Columbia Regency Partners II, LLC (Columbia II)
20.00%
 
13
 
38,110

 
377,121

 
4,673

 
23,367

Cameron Village, LLC (Cameron)
30.00%
 
1
 
11,169

 
98,633

 
943

 
3,177

RegCal, LLC (RegCal)
25.00%
 
7
 
31,235

 
139,844

 
1,542

 
6,167

US Regency Retail I, LLC (USAA)
20.01%
 
7
 

 
89,524

 
937

 
4,685

Other investments in real estate partnerships
9.375% - 50.00%
 
9
 
125,231

 
456,828

 
3,464

 
8,661

Total investments in real estate partnerships
 
 
120
 
$
463,001

 
3,227,831

 
42,974

 
129,085

 
December 31, 2017
(in thousands)
Regency's Ownership
 
Number of Properties
 
Total Investment
 
Total Assets of the Partnership
 
The Company's Share of Net Income of the Partnership
 
Net Income of the Partnership
GRI - Regency, LLC (GRIR)
40.00%
 
70
 
$
198,521

 
1,656,068

 
27,440

 
69,211

New York Common Retirement Fund (NYC)
30.00%
 
6
 
53,277

 
284,412

 
686

 
2,757

Columbia Regency Retail Partners, LLC (Columbia I)
20.00%
 
6
 
7,057

 
130,836

 
3,620

 
18,233

Columbia Regency Partners II, LLC (Columbia II)
20.00%
 
12
 
13,720

 
329,992

 
1,530

 
7,690

Cameron Village, LLC (Cameron)
30.00%
 
1
 
11,784

 
99,808

 
850

 
2,917

RegCal, LLC (RegCal)
25.00%
 
7
 
27,829

 
138,717

 
1,403

 
5,613

US Regency Retail I, LLC (USAA)
20.01%
 
7
 

 
90,900

 
4,456

 
22,299

Other investments in real estate partnerships
50.00%
 
6
 
74,116

 
154,987

 
3,356

 
11,238

Total investments in real estate partnerships
 
 
115
 
$
386,304

 
2,885,720

 
43,341

 
139,958


106

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows:
 
 
December 31,
(in thousands)
 
2018
 
2017
Investments in real estate, net
 
$
3,001,481

 
2,682,578

Acquired lease intangible assets, net
 
57,053

 
54,021

Other assets
 
169,297

 
149,121

Total assets
 
$
3,227,831

 
2,885,720

 
 
 
 
 
Notes payable
 
$
1,609,647

 
1,514,729

Acquired lease intangible liabilities, net
 
49,501

 
42,466

Other liabilities
 
90,577

 
70,498

Capital - Regency
 
498,852

 
445,068

Capital - Third parties
 
979,254

 
812,959

Total liabilities and capital
 
$
3,227,831

 
2,885,720

The following table reconciles the Company's capital recorded by the unconsolidated partnerships to the Company's investments in real estate partnerships reported in the accompanying consolidated balance sheet:
 
 
December 31,
(in thousands)
 
2018
 
2017
Capital - Regency
 
$
498,852

 
445,068

Basis difference
 
(38,064
)
 
(37,852
)
Negative investment in USAA (1)
 
3,513

 
11,290

Impairment of investment in real estate partnerships
 
(1,300
)
 
(1,300
)
Restricted Gain Method deferral (2)
 

 
(30,902
)
Investments in real estate partnerships
 
$
463,001

 
386,304

 
 
 
 
 
(1)  The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment resulting in a negative investment balance, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.
(2)  Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains through opening retained earnings, as discussed in note 1 to the Consolidated Financial Statements.

107

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows:
 
 
Year ended December 31,
(in thousands)
 
2018
 
2017
 
2016
Total revenues
 
$
414,631

 
396,596

 
364,087

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
99,847

 
99,327

 
99,252

Operating and maintenance
 
66,299

 
58,283

 
52,725

General and administrative
 
5,697

 
5,582

 
5,342

Real estate taxes
 
54,119

 
49,904

 
42,813

Other operating expenses
 
1,003

 
2,923

 
2,356

Total operating expenses
 
$
226,965

 
216,019

 
202,488

Other expense (income):
 
 
 
 
 
 
Interest expense, net
 
73,508

 
73,244

 
69,193

Gain on sale of real estate
 
(16,624
)
 
(34,276
)
 
(70,907
)
Early extinguishment of debt
 

 

 
69

Other expense (income)
 
1,697

 
1,651

 
2,197

Total other expense (income)
 
58,581

 
40,619

 
552

Net income of the Partnerships
 
$
129,085

 
139,958

 
161,047

The Company's share of net income of the Partnerships
 
$
42,974

 
43,341

 
56,518


108

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Acquisitions
The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships:
(in thousands)
 
Year ended December 31, 2018
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Co-investment Partner
 
Ownership %
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
01/02/18
 
Ballard Blocks I
 
Seattle, WA
 
Operating
 
Other
 
49.90%
 
$
54,500

 

 
3,668

 
2,350

01/02/18
 
Ballard Blocks II
 
Seattle, WA
 
Development
 
Other
 
49.90%
 
4,000

 

 

 

01/05/18
 
The District at Metuchen
 
Metuchen, NJ
 
Operating
 
Columbia II
 
20.00%
 
33,830

 

 
3,147

 
1,905

05/18/18
 
Crossroads Commons II
 
Boulder, CO
 
Operating
 
Columbia I
 
20.00%
 
10,500

 

 
447

 
769

09/07/18
 
Ridgewood Shopping Center
 
Raleigh, NC
 
Operating
 
Columbia II
 
20.00%
 
45,800

 
10,233

 
3,372

 
2,278

12/17/18
 
Shoppes at Bartram Park
 
Jacksonville, FL
 
Operating (1)
 
Other
 
50.00%
 
984

 

 

 

12/14/18
 
Town and Country Center
 
Los Angeles, CA
 
Operating
 
Other
 
9.38%
 
197,248

 
90,000

 
3,255

 
5,650

Total property acquisitions
 
$
346,862

 
100,233

 
13,889

 
12,952

(1) Land parcels purchased as additions to the existing operating property.
 
 
 
(in thousands)
 
Year ended December 31, 2017
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Co-investment Partner
 
Ownership %
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
10/11/17
 
Midtown East
 
Raleigh, NC
 
Development
 
Other
 
50.00%
 
$
15,075

 

 

 

Total property acquisitions
 
$
15,075

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dispositions
The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:
 
 
Year ended December 31,
(in thousands)
 
2018
 
2017
 
2016
Proceeds from sale of real estate investments
 
$
27,144

 
73,122

 
174,090

Gain on sale of real estate
 
$
16,624

 
34,276

 
70,907

The Company's share of gain on sale of real estate
 
$
3,608

 
6,591

 
25,003

Number of operating properties sold
 
1

 
3

 
10

Number of land out-parcels sold
 
2

 
1

 
1


109

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Notes Payable
Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2018 were as follows:
Scheduled Principal Payments and Maturities by Year:
 
Scheduled
Principal
Payments
 
Mortgage Loan Maturities
 
Unsecured
Maturities
 
Total
 
Regency’s
Pro-Rata
Share
2019
 
$
20,062

 
65,939

 

 
86,001

 
22,294

2020
 
17,043

 
326,583

 

 
343,626

 
101,841

2021
 
11,048

 
269,942

 
19,635

 
300,625

 
104,375

2022
 
7,811

 
170,702

 

 
178,513

 
68,417

2023
 
2,989

 
171,608

 

 
174,597

 
65,096

Beyond 5 Years
 
7,353

 
529,637

 

 
536,990

 
175,032

Net unamortized loan costs, debt premium / (discount)
 

 
(10,705
)
 

 
(10,705
)
 
(3,082
)
Total notes payable
 
$
66,306

 
1,523,706

 
19,635

 
1,609,647

 
533,973

These fixed and variable rate loans are all non-recourse, and mature through 2034, with 92.4% having a weighted average fixed interest rate of 4.6%. The remaining notes payable float over LIBOR and had a weighted average variable interest rate of 4.6% at December 31, 2018. Maturing loans will be repaid from proceeds from refinancing, partner capital contributions, or a combination thereof. The Company is obligated to contribute its pro-rata share to fund maturities if the loans are not refinanced, and it has the capacity to do so from existing cash balances, availability on its line of credit, and operating cash flows. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call.
Management fee income
In addition to earning our pro-rata share of net income or loss in each of these co-investment partnerships, we receive fees, as follows:
 
 
Year ended December 31,
(in thousands)
 
2018
 
2017
 
2016
Asset management, property management, leasing, and investment and financing services
 
$
27,873

 
25,260

 
24,595



110

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




5.    Other Assets
The following table represents the components of Other assets in the accompanying Consolidated Balance Sheets:
(in thousands)
December 31, 2018
 
December 31, 2017
Goodwill
$
314,143

 
331,884

Investments
41,287

 
41,636

Prepaid and other
17,937

 
30,332

Derivative assets
17,482

 
14,515

Furniture, fixtures, and equipment, net
6,127

 
6,123

Deferred financing costs, net
6,851

 
2,637

Total other assets
$
403,827

 
427,127

The following table presents the goodwill balances and activity during the year to date periods ended:
(in thousands)
December 31, 2018
 
December 31, 2017
 
Goodwill
Accumulated Impairment Losses
Total
 
Goodwill
Accumulated Impairment Losses
Total
Beginning of year balance
$
331,884


331,884

 



Goodwill resulting from Equity One merger
500


500

 
331,884


331,884

Goodwill allocated to Provision for impairment

(12,628
)
(12,628
)
 



Goodwill allocated to Properties held for sale
(1,159
)

(1,159
)
 



Goodwill associated with disposed reporting units:
 
 

 
 
 
 
Goodwill allocated to Provision for impairment
(9,913
)
9,913


 



Goodwill allocated to Gain on sale of real estate
(4,454
)

(4,454
)
 



End of year balance
$
316,858

(2,715
)
314,143

 
331,884


331,884


During the year ended December 31, 2018, the Company recognized a $38.4 million provision for impairment, net of tax, on seven operating properties that sold or are expected to sell, including $12.6 million of goodwill. As the Company identifies properties ("reporting units") that no longer meet its investment criteria, it will evaluate the property for potential sale. A decision to sell a reporting unit results in the need to evaluate its goodwill for recoverability and may result in impairment. If events occur that trigger an impairment evaluation at multiple reporting units, a goodwill impairment may be significant.


111

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




6.
Acquired Lease Intangibles
The Company had the following acquired lease intangibles:
 
December 31,
(in thousands)
2018
 
2017
In-place leases
$
457,379

 
470,315

Above-market leases
57,294

 
64,625

Below-market ground leases
92,085

 
92,166

Total intangible assets
$
606,758


627,106

Accumulated amortization
(219,689
)
 
(148,280
)
Acquired lease intangible assets, net
$
387,069

 
478,826

 
 
 
 
Below-market leases
$
584,371

 
588,850

Above-market ground leases
5,101

 
5,101

Total intangible liabilities
589,472

 
593,951

Accumulated amortization
(92,746
)
 
(56,550
)
Acquired lease intangible liabilities, net
$
496,726

 
537,401

The following table provides a summary of amortization and net accretion amounts from acquired lease intangibles:
 
Year ended December 31,
Line item in Consolidated Statements of Operations
(in thousands)
2018
 
2017
 
2016
In-place lease amortization
$
76,649

 
88,284

 
11,533

Depreciation and amortization
Above-market lease amortization
10,433

 
9,443

 
1,742

Minimum rent
Below-market ground lease amortization
1,688

 
1,886

 
1,111

Operating and maintenance
Acquired lease intangible asset amortization
$
88,770

 
99,613

 
14,386

 
 
 
 
 
 
 
 
Below-market lease amortization
$
45,561

 
34,786

 
6,827

Minimum rent
Above-market ground lease amortization
94

 
136

 
167

Operating and maintenance
Acquired lease intangible liability amortization
$
45,655

 
34,922

 
6,994

 
The estimated aggregate amortization and net accretion amounts from acquired lease intangibles for the next five years are as follows:
(in thousands)
 
 
 
 
 
 
In Process Year Ending December 31,
 
Net accretion of Above / Below market lease intangibles
 
Amortization of In-place lease intangibles
 
Net amortization of Below / Above ground lease intangibles
2019
 
$
27,768

 
53,506

 
1,554

2020
 
26,646

 
40,528

 
1,554

2021
 
25,986

 
32,344

 
1,554

2022
 
24,239

 
24,692

 
1,554

2023
 
23,499

 
19,605

 
1,554


112

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




7.    Income Taxes
The Company has elected to be taxed as a REIT under the applicable provisions of the Code with certain of its subsidiaries treated as TRS entities, which are subject to federal and state income taxes.
The following table summarizes the tax status of dividends paid on our common shares:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Dividend per share
$2.22
 
2.10
 
2.00
Ordinary income
98%
 
86%
 
53%
Capital gain
—%
 
10%
 
8%
Return of capital
—%
 
4%
 
39%
Qualified dividend income
2%
 
—%
 
—%
Section 199A dividend
98%
 
—%
 
—%

Our consolidated expense (benefit) for income taxes for the years ended December 31, 2018, 2017, and 2016 was as follows:

 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Income tax expense (benefit):
 
 
 
 
 
Current
$
5,667

 
1,168

 
(153
)
Deferred
(5,145
)
 
(10,815
)
 

Total income tax expense (benefit) (1)
$
522

 
(9,647
)
 
(153
)
 
 
 
 
 
 
(1) Includes $706,000 and $90,000 of tax expense presented within Other operating expenses during the year ended December 31, 2018 and 2017, respectively. Additionally, $184,000 and $153,000 of tax benefit is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2018 and 2016, respectively.

The TRS entities are subject to federal and state income taxes and file separate tax returns. Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate to pretax income of the TRS entities, as follows:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Computed expected tax expense (benefit)
$
(584
)
 
1,190

 
933

State income tax, net of federal benefit
636

 
108

 
56

Valuation allowance
(392
)
 
(1,512
)
 
(1,239
)
Tax rate change

 
(9,737
)
 

Permanent items
1,067

 

 

All other items
(205
)
 
304

 
97

Total income tax expense (benefit) (1)
522

 
(9,647
)
 
(153
)
Income tax expense (benefit) attributable to operations (1)
$
522

 
(9,647
)
 
(153
)
(1) Includes $706,000 and $90,000 of tax expense presented within Other operating expenses during the year ended December 31, 2018 and 2017, respectively. Additionally, $184,000 and $153,000 of tax benefit is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2018 and 2016, respectively.


113

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The tax effects of temporary differences and carryforwards (included in Accounts payable and other liabilities in the accompanying Consolidated Balance Sheets) are summarized as follows:
 
December 31,
(in thousands)
2018
 
2017
Deferred tax assets
 
 
 
Provision for impairment
3,785

 
3,785

Deferred interest expense
2,617

 
2,754

Capitalized costs under Section 263A
713

 
729

Net operating loss carryforward
166

 
373

Other
2,123

 
2,297

Deferred tax assets
9,404

 
9,938

Valuation allowance
(7,907
)
 
(8,300
)
Deferred tax assets, net
1,497

 
1,638

Deferred tax liabilities
 
 
 
Straight line rent
(565
)
 
(528
)
Fixed assets
(14,829
)
 
(19,757
)
Other

 
(7
)
Deferred tax liabilities
(15,394
)
 
(20,292
)
Net deferred tax liabilities
$
(13,897
)
 
(18,654
)
The net deferred tax liability decreased during 2018 primarily due to the sale of properties at the TRS entities. Due to uncertainty regarding the realization of certain deferred tax assets, the Company previously established valuation allowances, primarily in connection with the deferred interest and NOL carryforwards related to certain TRSs. As of December 31, 2018, the minimal projected future taxable income and unpredictable nature of potential property sales with built in losses support the conclusion that it is still more likely than not that some of the deferred tax assets will not be realized.

8.
Notes Payable and Unsecured Credit Facilities
The Company’s outstanding debt consists of the following:
 
Maturing Through
Weighted Average Contractual Rate
Weighted Average Effective Rate
 
December 31,
(in thousands)
 
2018
 
2017
Notes payable:
 
 
 
 
 
 
 
Fixed rate mortgage loans
10/1/2036
4.8%
4.3%
 
$
403,306

 
520,193

Variable rate mortgage loans (1)
6/2/2027
3.5%
3.7%
 
127,850

 
125,866

Fixed rate unsecured public and private debt
2/1/2047
4.0%
4.4%
 
2,475,322

 
2,325,656

Total notes payable
 
 
 
 
$
3,006,478

 
2,971,715

Unsecured credit facilities:
 
 
 
 
 
 
 
Line of Credit (2)
3/23/2022
3.4%
3.5%
 
145,000

 
60,000

Term Loans
1/5/2022
2.4%
2.5%
 
563,734

 
563,262

Total unsecured credit facilities
 
 
 
 
$
708,734

 
623,262

Total debt outstanding
 
 
 
 
$
3,715,212

 
3,594,977

 
 
 
 
 
 
 
 
(1) Includes five mortgages, whose interest varies on LIBOR based formulas. Three of these variable rate loans have interest rate swaps in place to fix the interest rates at a range of 2.8% to 4.1%.
(2) Maturity is subject to two six month extensions as the Company's option. The weighted average contractual and effective interest rates for the Line are calculated based on a fully drawn Line balance.

114

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Notes Payable
Notes payable consist of mortgage loans secured by properties and unsecured public and private debt. Mortgage loans may be prepaid, but could be subject to yield maintenance premiums, and are generally due in monthly installments of principal and interest or interest only. Unsecured public debt may be prepaid subject to accrued and unpaid interest through the proposed redemption date and a make-whole premium. Interest on unsecured public and private debt is payable semi-annually.
The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2018, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.
Unsecured Credit Facilities
The Company has an unsecured line of credit commitment (the "Line") and unsecured term loans (the "Term Loans") under separate credit agreements with a syndicate of banks.
The Line has a borrowing capacity of $1.25 billion, which is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit. The Line bears interest at a variable rate of LIBOR plus 0.875% and is subject to a commitment fee of 0.15%, both of which are based on the Company's corporate credit rating.
The Term Loans bear interest at a variable rate based on LIBOR plus 0.95% and have interest rate swaps in place to fix the interest, as discussed further in note 9.
The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Ratio of Indebtedness to Total Asset Value ("TAV"), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted EBITDA to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2018, management of the Company believes it is in compliance with all financial covenants for the Line and Term Loans.
Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:
(in thousands)
December 31, 2018
Scheduled Principal Payments and Maturities by Year:
Scheduled
Principal
Payments
 
Mortgage
Loan Maturities
 
Unsecured
Maturities (1)
 
Total
2019
$
9,518

 
13,216

 

 
22,734

2020
11,287

 
78,580

 
300,000

 
389,867

2021
11,599

 
77,060

 
250,000

 
338,659

2022
11,798

 
5,848

 
710,000

 
727,646

2023
10,043

 
59,375

 

 
69,418

Beyond 5 Years
27,013

 
209,845

 
1,950,000

 
2,186,858

Unamortized debt premium/(discount) and issuance costs

 
5,974

 
(25,944
)
 
(19,970
)
Total notes payable
$
81,258

 
449,898

 
3,184,056

 
3,715,212

 
 
 
 
 
 
 
 
(1) Includes unsecured public and private debt and unsecured credit facilities.
The Company has $13.2 million of debt maturing over the next twelve months, which is in the form of a non-recourse mortgage loan. The Company currently intends to payoff the maturing balance and leave the property unencumbered. The Company has sufficient capacity on its Line to repay the maturing debt, if necessary.

115

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




9.
Derivative Financial Instruments
The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets:
 
 
 
 
 
 
 
 
 
 
Fair Value at December 31,
(in thousands)
 
 
 
 
 
 
 
Assets (Liabilities) (1)
Effective Date
 
Maturity Date
 
Notional Amount
 
Bank Pays Variable Rate of
 
Regency Pays Fixed Rate of
 
2018
 
2017
12/6/18
 
6/28/19
 
$
250,000

 
30 year U.S. Treasury
 
3.147%
 
$
(5,491
)
 

4/3/17
 
12/2/20
 
300,000

 
1 Month LIBOR with Floor
 
1.824%
 
3,759

 
1,804

8/1/16
 
1/5/22
 
265,000

 
1 Month LIBOR with Floor
 
1.053%
 
10,838

 
10,744

4/7/16
 
4/1/23
 
20,000

 
1 Month LIBOR
 
1.303%
 
880

 
801

12/1/16
 
11/1/23
 
33,000

 
1 Month LIBOR
 
1.490%
 
1,376

 
1,166

6/2/17
 
6/2/27
 
37,500

 
1 Month LIBOR with Floor
 
2.366%
 
629

 
(177
)
Total derivative financial instruments
 
$
11,991

 
14,338

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities.
These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and, as of December 31, 2018, does not have any derivatives that are not designated as hedges. The Company has master netting agreements; however, the Company generally does not have multiple derivatives subject to a single master netting agreement with the same counterparties and none are offset in the accompanying Consolidated Balance Sheets.
The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in accumulated other comprehensive income ("AOCI") and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:
Location and Amount of Gain (Loss) Recognized in OCI on Derivative
 
Location and Amount of Gain (Loss) Reclassified from AOCI into Income
 
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
 
Year ended December 31,
 
 
 
Year ended December 31,
 
 
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
 
 
 
2018
 
2017
 
2016
Interest rate swaps
$
402

 
1,151

 
10,613

 
Interest expense
 
$
(5,342
)
 
(11,103
)
 
(10,553
)
 
Interest expense, net
 
$
(148,456
)
 
(132,629
)
 
(90,712
)
Interest rate swaps
$

 

 
(20,945
)
 
Loss on derivative instruments (1)
 
$

 

 
(40,586
)
 
Loss on derivative instruments (1)
 
$

 

 
40,586

(1)  During 2016, the Company completed an equity offering, rather than its previously expected issuance of new fixed rate debt, to fund the repayment of maturing debt and to settle the forward starting swaps entered in contemplation of the previously anticipated new debt transaction. As a result of the equity offering, the Company believed that the issuance of new fixed rate debt within the remaining period of the forward starting swaps was probable not to occur. Accordingly, the Company ceased hedge accounting and reclassified the $40.6 million paid to settle the forward starting swaps from Accumulated other comprehensive income to earnings during 2016.

116

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




As of December 31, 2018, the Company expects $867,000 of net deferred losses on derivative instruments in AOCI, including the Company's share from its Investments in real estate partnerships, to be reclassified into earnings during the next 12 months. Included in the reclass is $7.4 million which is related to previously settled swaps on the Company's ten year fixed rate unsecured debt.
10.
Fair Value Measurements
(a)    Disclosure of Fair Value of Financial Instruments
All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management's estimation, reasonably approximates their fair values, except for the following:
 
December 31,
 
2018
 
2017
(in thousands)
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Financial assets:
 
 
 
 
 
 
 
Notes receivable (1)
$

 

 
$
15,803

 
15,660

Financial liabilities:
 
 
 
 
 
 
 
Notes payable
$
3,006,478

 
2,961,769

 
$
2,971,715

 
3,058,044

Unsecured credit facilities
$
708,734

 
710,902

 
$
623,262

 
625,000

 
 
 
 
 
 
 
 
(1)  Notes receivable are included in Tenant and other receivables, net on the Consolidated Balance Sheets.
The above fair values represent management's estimate of the amounts that would be received from selling those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants as of December 31, 2018 and 2017. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company's own judgments about the assumptions that market participants would use in pricing the asset or liability.
The Company develops its judgments based on the best information available at the measurement date, including expected cash flows, appropriately risk-adjusted discount rates, and available observable and unobservable inputs. Service providers involved in fair value measurements are evaluated for competency and qualifications on an ongoing basis. As considerable judgment is often necessary to estimate the fair value of these financial instruments, the fair values presented above are not necessarily indicative of amounts that will be realized upon disposition of the financial instruments.
(b)    Fair Value Measurements
The following financial instruments are measured at fair value on a recurring basis:
Securities
The Company has investments in marketable securities that are included within other assets on the accompanying Consolidated Balance Sheets. The fair value of the securities was determined using quoted prices in active markets, which are considered Level 1 inputs of the fair value hierarchy. Changes in the value of securities are recorded within Net investment loss (income) in the accompanying Consolidated Statements of Operations, and includes unrealized losses (gains) of $3,314, ($1,136), and ($773) for the years ended December 31, 2018, 2017, and 2016, respectively.
Available-for-Sale Debt Securities
Available-for-sale debt securities consist of investments in certificates of deposit and corporate bonds, and are recorded at fair value using matrix pricing methods to estimate fair value, which are considered Level 2 inputs of the fair value hierarchy. Unrealized gains or losses on these debt securities are recognized through other comprehensive income.

117

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Interest Rate Derivatives
The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.
Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.
The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis:
 
Fair Value Measurements as of December 31, 2018
 
 
 
Quoted Prices in Active Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant Unobservable Inputs
(in thousands)
Balance
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Securities
$
33,354

 
33,354

 

 

Available-for-sale debt securities
7,933

 

 
7,933

 

Interest rate derivatives
17,482

 

 
17,482

 

Total
$
58,769

 
33,354

 
25,415

 

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(5,491
)
 

 
(5,491
)
 

 
Fair Value Measurements as of December 31, 2017
 
 
 
Quoted Prices in Active Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant Unobservable Inputs
(in thousands)
Balance
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Securities
$
31,662

 
31,662

 

 

Available-for-sale debt securities
9,974

 

 
9,974

 

Interest rate derivatives
14,515

 

 
14,515

 

Total
$
56,151

 
31,662

 
24,489

 

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(177
)
 

 
(177
)
 


118

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The following tables present the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis:
 
Fair Value Measurements as of December 31, 2018
 
 
 
 
 
Quoted Prices in Active Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant Unobservable Inputs
 
Total Gains
(in thousands)
Balance
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
(Losses)
Properties held for sale
42,760

 

 
42,760

 

 
(6,579
)
During the year ended December 31, 2018, the Company recognized a $38.4 million provision for impairment, net of tax, which included $31.8 million on real estate sold or held and used and $6.6 million on the above three properties classified as held for sale. The impairment of the real estate assets was determined based on the expected selling price as compared to the Company's carrying value of its investment.
There were no assets measured at fair value on a nonrecurring basis as of December 31, 2017.

11.
Equity and Capital
Common Stock of the Parent Company
At the Market ("ATM") Program
Under the Parent Company's ATM equity offering program, the Parent Company may sell up to $500.0 million of common stock at prices determined by the market at the time of sale. There were no shares issued under the ATM equity program during the years ended December 31, 2018 or 2017. As of December 31, 2018, all $500.0 million of common stock remained available for issuance under this ATM equity program.
Share Repurchase Program
On February 7, 2018, the Company's Board authorized a common share repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million of shares of its outstanding common stock through open market purchases and/or in privately negotiated transactions. Any shares purchased will be retired. The timing and actual number of shares purchased under the program depend upon marketplace conditions and other factors. The program remains subject to the discretion of the Board. Through the date of filing, the Company has repurchased $246.5 million of shares. The program was scheduled to expire on February 6, 2020; however, the program was closed upon the authorization by the Company's Board of a new share repurchase program, as further discussed below.
Share Repurchase Program - Subsequent Event
On February 5, 2019, the Company's Board authorized a new common share repurchase program under which the Company, may purchase, from time to time, up to a maximum of $250 million of shares of its outstanding common stock through open market purchases and/or in privately negotiated transactions. Any shares purchased will be retired. The program is set to expire on February 4, 2020. The timing and actual number of shares purchased under the program depend upon marketplace conditions and other factors. The program remains subject to the discretion of the Board.
Transfer of Listing
On October 25, 2018, the Company's Board approved the transfer of the Company's common stock from listing on NYSE to NASDAQ. The last day of trading on the NYSE was November 12, 2018. The Company's common stock commenced trading on NASDAQ on November 13, 2018, and continues to trade under the stock symbol "REG".

119

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




Common Units of the Operating Partnership
Common units were issued to or redeemed from the Parent Company in relation to the Parent Company's issuance or repurchase of common stock, as discussed above.
General Partners
The Parent Company, as general partner, owned the following Partnership Units outstanding:
 
 
December 31,
(in thousands)
 
2018
 
2017
Partnership units owned by the general partner
 
167,904

 
171,365

Partnership units owned by the limited partners
 
350

 
350

Total partnership units outstanding
 
168,254

 
171,715

Percentage of partnership units owned by the general partner
 
99.8%
 
99.8%
Accumulated Other Comprehensive Income (Loss)
The following table presents changes in the balances of each component of AOCI:
 
Controlling Interest
 
Noncontrolling Interest
 
Total
(in thousands)
Cash Flow Hedges
 
Unrealized gain (loss) on Available-For-Sale Securities
 
AOCI
 
Cash Flow Hedges
 
Unrealized gain (loss) on Available-For-Sale Securities
 
AOCI
 
AOCI
Balance as of December 31, 2015
$
(58,650
)
 
(43
)
 
(58,693
)
 
(785
)
 

 
(785
)
 
(59,478
)
Other comprehensive income before reclassifications
(10,587
)
 
24

 
(10,563
)
 
255

 

 
255

 
(10,308
)
Amounts reclassified from accumulated other comprehensive income
50,910

 

 
50,910

 
229

 

 
229

 
51,139

Current period other comprehensive income, net
40,323

 
24

 
40,347

 
484

 

 
484

 
40,831

Balance as of December 31, 2016
$
(18,327
)
 
(19
)
 
(18,346
)
 
(301
)
 

 
(301
)
 
(18,647
)
Other comprehensive income before reclassifications
1,134

 
(8
)
 
1,126

 
17

 

 
17

 
1,143

Amounts reclassified from accumulated other comprehensive income
10,931

 

 
10,931

 
172

 

 
172

 
11,103

Current period other comprehensive income, net
12,065

 
(8
)
 
12,057

 
189

 

 
189

 
12,246

Balance as of December 31, 2017
$
(6,262
)
 
(27
)
 
(6,289
)
 
(112
)
 

 
(112
)
 
(6,401
)
Opening adjustment due to change in accounting policy (1)
12

 

 
12

 
2

 

 
2

 
14

Adjusted balance as of January 1, 2018
(6,250
)
 
(27
)
 
(6,277
)
 
(110
)
 

 
(110
)
 
(6,387
)
Other comprehensive income before reclassifications
131

 
(95
)
 
36

 
271

 

 
271

 
307

Amounts reclassified from accumulated other comprehensive income
5,314

 

 
5,314

 
28

 

 
28

 
5,342

Current period other comprehensive income, net
5,445

 
(95
)
 
5,350

 
299

 

 
299

 
5,649

Balance as of December 31, 2018
$
(805
)
 
(122
)
 
(927
)
 
189

 

 
189

 
(738
)
(1) Upon adoption of ASU 2017-12, the Company recognized the immaterial adjustment to opening retained earnings and AOCI for previously recognized hedge ineffectiveness from off-market hedges, as further discussed in note 1.

120

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




12.
Stock-Based Compensation
The Company recorded stock-based compensation in general and administrative expenses in the accompanying Consolidated Statements of Operations, the components of which are further described below:
 
Year ended December 31,
(in thousands)
2018
 
2017
 
2016
Restricted stock (1)
$
16,745

 
15,525

 
13,422

Directors' fees paid in common stock (1)
399

 
303

 
193

Capitalized stock-based compensation (2)
(3,509
)
 
(3,210
)
 
(2,963
)
Stock based compensation attributable to post-combination service from Equity One merger

 
7,931

 

Stock-based compensation, net of capitalization
$
13,635

 
20,549

 
10,652

 
(1) Includes amortization of the grant date fair value of restricted stock awards over the respective vesting periods.
(2) Includes compensation expense specifically identifiable to development and leasing activities.
The Company established its Long Term Omnibus Plan (the "Plan") under which the Board of Directors may grant stock options and other stock-based awards to officers, directors, and other key employees. The Plan allows the Company to issue up to 4.1 million shares in the form of the Parent Company's common stock or stock options. As of December 31, 2018, there were 1.2 million shares available for grant under the Plan either through stock options or restricted stock.
Restricted Stock Awards
The Company grants restricted stock under the Plan to its employees as a form of long-term compensation and retention. The terms of each restricted stock grant vary depending upon the participant's responsibilities and position within the Company. The Company's stock grants can be categorized as either time-based awards, performance-based awards, or market-based awards. All awards are valued at fair value, earn dividends throughout the vesting period, and have no voting rights. Fair value is measured using the grant date market price for all time-based or performance-based awards. Market based awards are valued using a Monte Carlo simulation to estimate the fair value based on the probability of satisfying the market conditions and the projected stock price at the time of payout, discounted to the valuation date over a three year performance period. Assumptions include historic volatility over the previous three year period, risk-free interest rates, and Regency's historic daily return as compared to the market index. Since the award payout includes dividend equivalents and the total shareholder return includes the value of dividends, no dividend yield assumption is required for the valuation. Compensation expense is measured at the grant date and recognized on a straight-line basis over the requisite vesting period for the entire award.

121

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




The following table summarizes non-vested restricted stock activity:
 
 
Year ended December 31, 2018
 
 
Number of Shares
 
Intrinsic Value
(in thousands)
 
Weighted Average Grant Price
Non-vested as of December 31, 2017
 
570,077

 
 
 
 
Time-based awards granted (1) (4)
 
130,584

 
 
 
$61.66
Performance-based awards granted (2) (4)
 
14,935

 
 
 
$62.57
Market-based awards granted (3) (4)
 
113,126

 
 
 
$65.74
Change in market-based awards earned for performance (3)
 
64,330

 
 
 
$60.34
Vested (5)
 
(287,331
)
 
 
 
$60.23
Forfeited
 
(10,550
)
 
 
 
$68.65
Non-vested as of December 31, 2018 (6)
 
595,171

 
$34,925
 
 
 
 
 
 
 
 
 
 
(1) Time-based awards vest beginning on the first anniversary following the grant date over a three or four year service period. These grants are subject only to continued employment and are not dependent on future performance measures. Accordingly, if such vesting criteria are not met, compensation cost previously recognized would be reversed.
(2) Performance-based awards are earned subject to future performance measurements. Once the performance criteria are achieved and the actual number of shares earned is determined, shares vest over a required service period. The Company considers the likelihood of meeting the performance criteria based upon management's estimates from which it determines the amounts recognized as expense on a periodic basis.
(3) Market-based awards are earned dependent upon the Company's total shareholder return in relation to the shareholder return of a NAREIT index over a three-year period. Once the performance criteria are met and the actual number of shares earned is determined, the shares are immediately vested and distributed. The probability of meeting the criteria is considered when calculating the estimated fair value on the date of grant using a Monte Carlo simulation. These awards are accounted for as awards with market criteria, with compensation cost recognized over the service period, regardless of whether the performance criteria are achieved and the awards are ultimately earned. The significant assumptions underlying determination of fair values for market-based awards granted were as follows:
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
2018
 
2017
 
2016
 
Volatility
 
19.20%
 
18.00%
 
18.50%
 
Risk free interest rate
 
2.26%
 
1.48%
 
0.88%
 
 
 
 
 
 
 
 
(4)The weighted-average grant price for restricted stock granted during the years is summarized below:
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
2018

2017

2016
 
Weighted-average grant price for restricted stock
 
$
63.50

 
$
72.05

 
$
79.40

 
 
 
 
 
 
 
 
(5) The total intrinsic value of restricted stock vested during the years is summarized below (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
2018
 
2017
 
2016
 
Intrinsic value of restricted stock vested
 
$
17,306

 
$
14,376

 
$
15,400

 
 
 
 
 
 
 
 
(6) As of December 31, 2018, there was $13.1 million of unrecognized compensation cost related to non-vested restricted stock granted under the Parent Company's Plan. When recognized, this compensation results in additional paid in capital in the accompanying Consolidated Statements of Equity of the Parent Company and in general partner preferred and common units in the accompanying Consolidated Statements of Capital of the Operating Partnership. This unrecognized compensation cost is expected to be recognized over the next three years. The Company issues new restricted stock from its authorized shares available at the date of grant.


122

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




13.
Saving and Retirement Plans
401(k) Retirement Plan
The Company maintains a 401(k) retirement plan covering substantially all employees and permits participants to defer eligible compensation up to the maximum allowable amount determined by the IRS. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to a maximum of $5,000 of their eligible compensation, is fully vested and funded as of December 31, 2018. Additionally, an annual profit sharing contribution may be made, which vests over a three year period. Costs for Company contributions to the plan totaled $3.9 million, $4.1 million and $3.3 million for the years ended December 31, 2018, 2017, and 2016, respectively.
Non-Qualified Deferred Compensation Plan
The Company maintains a non-qualified deferred compensation plan (“NQDCP”), which allows select employees and directors to defer part or all of their cash bonus, director fees, and vested restricted stock awards. All contributions into the participants' accounts are fully vested upon contribution to the NQDCP and are deposited in a Rabbi trust.
The following table reflects the balances of the assets and deferred compensation liabilities of the Rabbi trust in the accompanying Consolidated Balance Sheets:
Non Qualified Deferred Compensation Plan Component (1)
Year ended December 31,
(in thousands)
2018
 
2017
Assets:
 
 
 
Trading securities held in trust (2)
$
31,351

 
31,662

Liabilities:
 
 
 
Accounts payable and other liabilities
$
31,166

 
31,383

 
 
 
 
(1) Assets and liabilities of the Rabbi trust are exclusive of the shares of the Company's common stock.
(2)  Included within Other assets in the accompanying Consolidated Balance Sheets.
Realized and unrealized gains and losses on securities held in the NQDCP are recognized within Net investment income in the accompanying Consolidated Statements of Operations. Changes in participant obligations, which is based on changes in the value of their investment elections, is recognized within General and administrative expenses within the accompanying Consolidated Statements of Operations.
Investments in shares of the Company's common stock are included, at cost, as treasury stock in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of general partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. The participant's deferred compensation liability attributable to the participants' investments in shares of the Company's common stock are included, at cost, within additional paid in capital in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of general partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. Changes in participant account balances related to the Regency common stock fund are recorded directly within stockholders' equity.

123

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018





14.
Earnings per Share and Unit
Parent Company Earnings per Share
The following summarizes the calculation of basic and diluted earnings per share:
 
 
Year ended December 31,
 
(in thousands, except per share data)
 
2018
 
2017
 
2016
 
Numerator:
 
 
 
 
 
 
 
Income from operations attributable to common stockholders - basic
 
$
249,127

 
159,949

 
143,860

 
Income from operations attributable to common stockholders - diluted
 
$
249,127

 
159,949

 
143,860

 
Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding for basic EPS
 
169,724

 
159,536

 
100,863

 
Weighted average common shares outstanding for diluted EPS (1)
 
170,100

 
159,960

(2) 
101,285

(2) 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
Income per common share – basic
 
$
1.47

 
1.00

 
1.43

 
Income per common share – diluted
 
$
1.46

 
1.00

 
1.42

 
 
 
 
 
 
 
 
 
(1) Includes the dilutive impact of unvested restricted stock.
(2)  Using the treasury stock method, weighted average common shares outstanding for basic and diluted earnings per share excludes 1.3 million shares issuable under the forward equity offering outstanding during 2017 and 2016, as they would be anti-dilutive.
Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and exchangeable Operating Partnership units have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average exchangeable Operating Partnership units outstanding for the years ended December 31, 2018, 2017, and 2016 were 349,902, 295,054, and 154,170 respectively.
Operating Partnership Earnings per Unit
The following summarizes the calculation of basic and diluted earnings per unit:
 
 
Year ended December 31,
 
(in thousands, except per share data)
 
2018
 
2017
 
2016
 
Numerator:
 
 
 
 
 
 
 
Income from operations attributable to common unit holders - basic
 
$
249,652

 
160,337

 
144,117

 
Income from operations attributable to common unit holders - diluted
 
$
249,652

 
160,337

 
144,117

 
Denominator:
 
 
 
 
 
 
 
Weighted average common units outstanding for basic EPU
 
170,074

 
159,831

 
101,017

 
Weighted average common units outstanding for diluted EPU (1)
 
170,450

 
160,255

(2) 
101,439

(2) 
 
 
 
 
 
 
 
 
Income per common unit – basic
 
$
1.47

 
1.00

 
1.43

 
Income per common unit – diluted
 
$
1.46

 
1.00

 
1.42

 
 
 
 
 
 
 
 
 
(1) Includes the dilutive impact of unvested restricted stock.
(2)  Using the treasury stock method, weighted average common shares outstanding for basic and diluted earnings per share excludes 1.3 million shares issuable under the forward equity offering outstanding during 2017 and 2016, as they would be anti-dilutive.


124

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




15.
Operating Leases
The Company's properties are leased to tenants under operating leases. Our leases for tenant space under 10,000 square feet generally have initial terms ranging from three to seven years. Leases greater than 10,000 square feet generally have initial lease terms in excess of five years, mostly comprised of anchor tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. Future minimum rents under non-cancelable operating leases as of December 31, 2018, excluding both tenant reimbursements of operating expenses and additional percentage rent based on tenants' sales, are as follows:
In Process Year Ending December 31,
 
Future Minimum Rents (in thousands)
2019
 
$
761,151

2020
 
693,848

2021
 
608,587

2022
 
516,369

2023
 
414,424

Thereafter
 
1,691,203

Total
 
$
4,685,582

The shopping centers' tenants primarily include national and regional supermarkets, drug stores, discount department stores, restaurants, and other retailers and, consequently, the credit risk is concentrated in the retail industry. Grocer anchor tenants represent approximately 18.0% of pro-rata annual base rent. There were no tenants that individually represented more than 5% of the Company's total annualized base rent.
The Company has shopping centers that are subject to non-cancelable, long-term ground leases where a third party owns the underlying land and has leased the land to the Company to construct and/or operate a shopping center. Ground leases expire through the year 2101, and in most cases, provide for renewal options. Buildings and improvements constructed on the leased land are capitalized and depreciated over the shorter of the useful life of the improvements or the lease term.
In addition, the Company has non-cancelable operating leases pertaining to office space from which it conducts its business. Office leases expire through the year 2029, and in most cases, provide for renewal options. Leasehold improvements are capitalized as tenant improvements, included in Other assets in the Consolidated Balance Sheets, and depreciated over the shorter of the useful life of the improvements or the lease term.
Operating lease expense under the Company's ground and office leases was $19.1 million, $18.4 million, and $13.1 million for the years ended December 31, 2018, 2017, and 2016, respectively. The following table summarizes the future obligations under non-cancelable operating leases as of December 31, 2018:
In Process Year Ending December 31,
 
Future Obligations (in thousands)
2019
 
$
15,077

2020
 
14,733

2021
 
13,893

2022
 
13,151

2023
 
12,558

Thereafter
 
467,706

Total
 
$
537,118



125

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




16.
Commitments and Contingencies
Litigation
The Company is involved in litigation on a number of matters and is subject to certain claims, which arise in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. Legal fees are expensed as incurred.
Environmental
The Company is also subject to numerous environmental laws and regulations as they apply to real estate pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks. The Company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations. The Company can give no assurance that existing environmental studies with respect to the shopping centers have revealed all potential environmental contaminants or liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to it; 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 material environmental liability to the Company.
Letters of Credit
The Company has the right to issue letters of credit under the Line up to an amount not to exceed $50.0 million, which reduces the credit availability under the Line. These letters of credit are primarily issued as collateral on behalf of its captive insurance program and to facilitate the construction of development projects. As of both December 31, 2018 and 2017, the Company had $9.4 million in letters of credit outstanding.
Purchase Commitments
The Company enters purchase and sale agreements to buy or sell real estate assets in the normal course of business, which generally provide limited recourse if either party ends the contract. In addition, at December 31, 2018, the Company has a commitment to purchase up to an additional 90.6% ownership interest in an operating shopping center by December 2019 and currently expects to acquire an additional 25.6% interest by that date.


126

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2018




17.
Summary of Quarterly Financial Data (Unaudited)
The following table summarizes selected Quarterly Financial Data for the Company on a historical basis for the years ended December 31, 2018 and 2017:
(in thousands except per share and per unit data)
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year ended December 31, 2018
 
 
 
 
 
 
 
 
Operating Data:
 
 
 
 
 
 
 
 
Revenue
 
$
276,693

 
281,412

 
278,310

 
284,560

 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
52,660

 
47,841

 
69,722

 
78,904

Net income attributable to exchangeable operating partnership units
 
111

 
100

 
147

 
167

Net income attributable to common unit holders
 
$
52,771

 
47,941

 
69,869

 
79,071

 
 
 
 
 
 
 
 
 
Net income attributable to common stock and unit holders per share and unit:
 
 
 
 
 
 
 
 
Basic
 
$
0.31

 
0.28

 
0.41

 
0.47

Diluted
 
$
0.31

 
0.28

 
0.41

 
0.46

 
 
 
 
 
 
 
 
 
Year ended December 31, 2017
 
 
 
 
 
 
 
 
Operating Data:
 
 
 
 
 
 
 
 
Revenue
 
$
196,131

 
261,305

 
262,141

 
264,749

 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
 
$
(33,223
)
 
48,368

 
59,666

 
85,138

Net (loss) income attributable to exchangeable operating partnership units
 
(19
)
 
104

 
132

 
171

Net (loss) income attributable to common unit holders
 
$
(33,242
)
 
48,472

 
59,798

 
85,309

 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stock and unit holders per share and unit:
 
 
 
 
 
 
 
 
Basic
 
$
(0.26
)
 
0.28

 
0.35

 
0.50

Diluted
 
$
(0.26
)
 
0.28

 
0.35

 
0.50



127



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
101 7th Avenue
 
$
48,340

 
34,895

 

 
48,340

 
34,895

 
83,235

 
1,834

 
81,401

 

1175 Third Avenue
 
40,560

 
25,617

 

 
40,560

 
25,617

 
66,177

 
1,371

 
64,806

 

1225-1239 Second Ave
 
23,033

 
17,173

 
45

 
23,033

 
17,218

 
40,251

 
989

 
39,262

 

200 Potrero
 
4,860

 
2,251

 
125

 
4,860

 
2,376

 
7,236

 
102

 
7,134

 

22 Crescent Road
 
2,198

 
272

 

 
2,198

 
272

 
2,470

 
39

 
2,431

 

4S Commons Town Center
 
30,760

 
35,830

 
1,286

 
30,812

 
37,064

 
67,876

 
24,513

 
43,363

 
85,000

90-30 Metropolitan Avenue
 
16,614

 
24,171

 
18

 
16,614

 
24,189

 
40,803

 
1,381

 
39,422

 

91 Danbury Road
 
732

 
851

 

 
732

 
851

 
1,583

 
67

 
1,516

 

Alafaya Village
 
3,004

 
5,852

 
109

 
3,004

 
5,961

 
8,965

 
465

 
8,500

 

Amerige Heights Town Center
 
10,109

 
11,288

 
735

 
10,109

 
12,023

 
22,132

 
4,804

 
17,328

 

Anastasia Plaza
 
9,065

 

 
688

 
3,338

 
6,415

 
9,753

 
2,593

 
7,160

 

Ashford Place
 
2,584

 
9,865

 
1,142

 
2,584

 
11,007

 
13,591

 
7,666

 
5,925

 

Atlantic Village
 
4,282

 
18,827

 
697

 
4,282

 
19,524

 
23,806

 
1,502

 
22,304

 

Aventura Shopping Center
 
2,751

 
10,459

 
10,926

 
9,407

 
14,729

 
24,136

 
943

 
23,193

 

Aventura Square
 
88,098

 
20,771

 
1,706

 
89,657

 
20,918

 
110,575

 
1,529

 
109,046

 
7,083

Balboa Mesa Shopping Center
 
23,074

 
33,838

 
14,059

 
27,758

 
43,213

 
70,971

 
11,900

 
59,071

 

Banco Popular Building
 
2,160

 
1,137

 
(33
)
 
2,160

 
1,104

 
3,264

 
70

 
3,194

 

Belleview Square
 
8,132

 
9,756

 
2,975

 
8,323

 
12,540

 
20,863

 
7,949

 
12,914

 

Belmont Chase
 
13,881

 
17,193

 
(600
)
 
14,372

 
16,102

 
30,474

 
3,637

 
26,837

 

Berkshire Commons
 
2,295

 
9,551

 
2,630

 
2,965

 
11,511

 
14,476

 
7,763

 
6,713

 

Bird 107 Plaza
 
10,371

 
5,136

 
21

 
10,371

 
5,157

 
15,528

 
423

 
15,105

 

Bird Ludlam
 
42,663

 
38,481

 
285

 
42,663

 
38,766

 
81,429

 
2,649

 
78,780

 

Black Rock
 
22,251

 
20,815

 
630

 
22,251

 
21,445

 
43,696

 
4,310

 
39,386

 
20,000

Bloomingdale Square
 
3,940

 
14,912

 
1,480

 
4,471

 
15,861

 
20,332

 
8,851

 
11,481

 

Bluffs Square Shoppes
 
7,431

 
12,053

 
874

 
7,431

 
12,927

 
20,358

 
1,203

 
19,155

 

Boca Village Square
 
43,888

 
9,726

 
(34
)
 
43,888

 
9,692

 
53,580

 
981

 
52,599

 

Boulevard Center
 
3,659

 
10,787

 
2,434

 
3,659

 
13,221

 
16,880

 
7,085

 
9,795

 

Boynton Lakes Plaza
 
2,628

 
11,236

 
4,988

 
3,606

 
15,246

 
18,852

 
7,406

 
11,446

 

Boynton Plaza
 
12,879

 
20,713

 
160

 
12,879

 
20,873

 
33,752

 
1,533

 
32,219

 

Brentwood Plaza
 
2,788

 
3,473

 
333

 
2,788

 
3,806

 
6,594

 
1,391

 
5,203

 

Briarcliff La Vista
 
694

 
3,292

 
495

 
694

 
3,787

 
4,481

 
2,884

 
1,597

 

Briarcliff Village
 
4,597

 
24,836

 
2,504

 
4,597

 
27,340

 
31,937

 
18,513

 
13,424

 


128



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Brick Walk
 
25,299

 
41,995

 
1,328

 
25,299

 
43,323

 
68,622

 
6,810

 
61,812

 
33,000

BridgeMill Market
 
7,521

 
13,306

 
292

 
7,522

 
13,597

 
21,119

 
1,184

 
19,935

 
5,109

Bridgeton
 
3,033

 
8,137

 
548

 
3,067

 
8,651

 
11,718

 
2,595

 
9,123

 

Brighten Park
 
3,983

 
18,687

 
11,471

 
4,234

 
29,907

 
34,141

 
15,933

 
18,208

 

Broadway Plaza
 
40,723

 
42,170

 
1,385

 
40,723

 
43,555

 
84,278

 
2,641

 
81,637

 

Brooklyn Station on Riverside
 
7,019

 
8,688

 
99

 
7,019

 
8,787

 
15,806

 
1,470

 
14,336

 

Brookside Plaza
 
35,161

 
17,494

 
198

 
35,161

 
17,692

 
52,853

 
1,885

 
50,968

 

Buckhead Court
 
1,417

 
7,432

 
3,856

 
1,417

 
11,288

 
12,705

 
6,929

 
5,776

 

Buckhead Station
 
70,411

 
36,518

 
616

 
70,448

 
37,097

 
107,545

 
3,109

 
104,436

 

Buckley Square
 
2,970

 
5,978

 
1,212

 
2,970

 
7,190

 
10,160

 
4,268

 
5,892

 

Caligo Crossing
 
2,459

 
4,897

 
(7
)
 
2,546

 
4,803

 
7,349

 
2,823

 
4,526

 

Cambridge Square
 
774

 
4,347

 
803

 
774

 
5,150

 
5,924

 
3,274

 
2,650

 

Carmel Commons
 
2,466

 
12,548

 
5,456

 
3,422

 
17,048

 
20,470

 
9,810

 
10,660

 

Carriage Gate
 
833

 
4,974

 
3,381

 
1,302

 
7,886

 
9,188

 
6,065

 
3,123

 

Carytown Exchange
 
4,378

 
1,328

 

 
4,378

 
1,328

 
5,706

 

 
5,706

 

Cashmere Corners
 
3,187

 
9,397

 
203

 
3,187

 
9,600

 
12,787

 
878

 
11,909

 

Centerplace of Greeley III
 
6,661

 
11,502

 
206

 
5,694

 
12,675

 
18,369

 
4,885

 
13,484

 

Charlotte Square
 
1,141

 
6,845

 
552

 
1,141

 
7,397

 
8,538

 
697

 
7,841

 

Chasewood Plaza
 
4,612

 
20,829

 
5,555

 
6,876

 
24,120

 
30,996

 
17,147

 
13,849

 

Chastain Square
 
30,074

 
12,644

 
1,340

 
30,074

 
13,984

 
44,058

 
1,344

 
42,714

 

Cherry Grove
 
3,533

 
15,862

 
4,501

 
3,533

 
20,363

 
23,896

 
10,370

 
13,526

 

Chimney Rock
 
25,666

 
46,782

 

 
25,666

 
46,782

 
72,448

 
2,587

 
69,861

 

Circle Center West
 
22,930

 
9,028

 
74

 
22,930

 
9,102

 
32,032

 
739

 
31,293

 
9,864

CityLine Market
 
12,208

 
15,839

 
153

 
12,306

 
15,894

 
28,200

 
2,264

 
25,936

 

CityLine Market Phase II
 
2,744

 
3,081

 

 
2,744

 
3,081

 
5,825

 
369

 
5,456

 

Clayton Valley Shopping Center
 
24,189

 
35,422

 
2,814

 
24,538

 
37,887

 
62,425

 
24,506

 
37,919

 

Clocktower Plaza Shopping Ctr
 
49,630

 
19,624

 
127

 
49,630

 
19,751

 
69,381

 
1,312

 
68,069

 

Clybourn Commons
 
15,056

 
5,594

 
334

 
15,056

 
5,928

 
20,984

 
1,192

 
19,792

 

Cochran's Crossing
 
13,154

 
12,315

 
1,522

 
13,154

 
13,837

 
26,991

 
9,801

 
17,190

 

Compo Acres Shopping Center
 
28,627

 
10,395

 
608

 
28,627

 
11,003

 
39,630

 
681

 
38,949

 

Concord Shopping Plaza
 
30,819

 
36,506

 
637

 
31,272

 
36,690

 
67,962

 
2,410

 
65,552

 
27,750

Copps Hill Plaza
 
29,515

 
40,673

 
203

 
29,514

 
40,877

 
70,391

 
2,842

 
67,549

 
13,293


129



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Coral Reef Shopping Center
 
14,922

 
15,200

 
565

 
14,922

 
15,765

 
30,687

 
1,100

 
29,587

 

Corkscrew Village
 
8,407

 
8,004

 
600

 
8,407

 
8,604

 
17,011

 
3,466

 
13,545

 

Cornerstone Square
 
1,772

 
6,944

 
1,682

 
1,772

 
8,626

 
10,398

 
5,619

 
4,779

 

Corvallis Market Center
 
6,674

 
12,244

 
456

 
6,696

 
12,678

 
19,374

 
5,825

 
13,549

 

Costa Verde Center
 
12,740

 
26,868

 
1,693

 
12,798

 
28,503

 
41,301

 
16,188

 
25,113

 

Countryside Shops
 
17,982

 
35,574

 
13,934

 
23,038

 
44,452

 
67,490

 
2,691

 
64,799

 

Courtyard Shopping Center
 
5,867

 
4

 
3

 
5,867

 
7

 
5,874

 
2

 
5,872

 

Culver Center
 
108,841

 
32,308

 
565

 
108,841

 
32,873

 
141,714

 
2,548

 
139,166

 

Danbury Green
 
30,303

 
19,255

 
122

 
30,303

 
19,377

 
49,680

 
1,317

 
48,363

 

Dardenne Crossing
 
4,194

 
4,005

 
393

 
4,343

 
4,249

 
8,592

 
1,814

 
6,778

 

Darinor Plaza
 
693

 
32,140

 
688

 
711

 
32,810

 
33,521

 
2,235

 
31,286

 

Diablo Plaza
 
5,300

 
8,181

 
1,641

 
5,300

 
9,822

 
15,122

 
5,258

 
9,864

 

Dunwoody Village
 
3,342

 
15,934

 
4,512

 
3,342

 
20,446

 
23,788

 
14,284

 
9,504

 

East Pointe
 
1,730

 
7,189

 
2,090

 
1,941

 
9,068

 
11,009

 
5,570

 
5,439

 

El Camino Shopping Center
 
7,600

 
11,538

 
13,155

 
10,266

 
22,027

 
32,293

 
7,581

 
24,712

 

El Cerrito Plaza
 
11,025

 
27,371

 
2,092

 
11,025

 
29,463

 
40,488

 
10,480

 
30,008

 

El Norte Parkway Plaza
 
2,834

 
7,370

 
3,373

 
3,263

 
10,314

 
13,577

 
5,399

 
8,178

 

Elmwood Oaks Shopping Center
 
5,427

 
9,255

 
386

 
5,427

 
9,641

 
15,068

 
1,152

 
13,916

 

Encina Grande
 
5,040

 
11,572

 
19,531

 
10,086

 
26,057

 
36,143

 
11,152

 
24,991

 

Fairfield Center
 
6,731

 
29,420

 
752

 
6,731

 
30,172

 
36,903

 
4,574

 
32,329

 

Falcon Marketplace
 
1,340

 
4,168

 
162

 
1,340

 
4,330

 
5,670

 
2,240

 
3,430

 

Fellsway Plaza
 
30,712

 
7,327

 
10,105

 
34,923

 
13,221

 
48,144

 
5,014

 
43,130

 
37,500

Fenton Marketplace
 
2,298

 
8,510

 
(8,151
)
 
512

 
2,145

 
2,657

 
853

 
1,804

 

Fleming Island
 
3,077

 
11,587

 
3,006

 
3,111

 
14,559

 
17,670

 
7,823

 
9,847

 

Folsom Prairie City Crossing
 
4,164

 
13,032

 
620

 
4,164

 
13,652

 
17,816

 
6,271

 
11,545

 

Fountain Square
 
29,650

 
28,984

 
39

 
29,712

 
28,961

 
58,673

 
6,477

 
52,196

 

French Valley Village Center
 
11,924

 
16,856

 
266

 
11,822

 
17,224

 
29,046

 
12,220

 
16,826

 

Friars Mission Center
 
6,660

 
28,021

 
1,810

 
6,660

 
29,831

 
36,491

 
15,045

 
21,446

 

Gardens Square
 
2,136

 
8,273

 
620

 
2,136

 
8,893

 
11,029

 
5,000

 
6,029

 

Gateway 101
 
24,971

 
9,113

 
(1,302
)
 
24,971

 
7,811

 
32,782

 
3,219

 
29,563

 

Gateway Shopping Center
 
52,665

 
7,134

 
9,603

 
55,346

 
14,056

 
69,402

 
15,180

 
54,222

 

Gelson's Westlake Market Plaza
 
3,157

 
11,153

 
5,793

 
4,654

 
15,449

 
20,103

 
6,837

 
13,266

 


130



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Glen Oak Plaza
 
4,103

 
12,951

 
863

 
4,103

 
13,814

 
17,917

 
3,858

 
14,059

 

Glengary Shoppes
 
9,120

 
11,541

 
14

 
9,120

 
11,555

 
20,675

 
1,046

 
19,629

 

Glenwood Village
 
1,194

 
5,381

 
311

 
1,194

 
5,692

 
6,886

 
4,288

 
2,598

 

Golden Hills Plaza
 
12,699

 
18,482

 
3,680

 
11,518

 
23,343

 
34,861

 
8,807

 
26,054

 

Grand Ridge Plaza
 
24,208

 
61,033

 
6,106

 
24,918

 
66,429

 
91,347

 
17,134

 
74,213

 

Greenwood Shopping Centre
 
7,777

 
24,829

 
375

 
7,777

 
25,204

 
32,981

 
1,865

 
31,116

 

Hammocks Town Center
 
28,764

 
25,113

 
(19
)
 
28,764

 
25,094

 
53,858

 
2,149

 
51,709

 

Hancock
 
8,232

 
28,260

 
2,056

 
8,232

 
30,316

 
38,548

 
16,351

 
22,197

 

Harpeth Village Fieldstone
 
2,284

 
9,443

 
620

 
2,284

 
10,063

 
12,347

 
5,293

 
7,054

 

Harris Crossing
 
7,199

 
3,687

 
(1,615
)
 
5,508

 
3,763

 
9,271

 
2,425

 
6,846

 

Heritage Plaza
 
12,390

 
26,097

 
14,098

 
12,215

 
40,370

 
52,585

 
17,549

 
35,036

 

Hershey
 
7

 
808

 
9

 
7

 
817

 
824

 
430

 
394

 

Hewlett Crossing I & II
 
11,850

 
18,205

 
680

 
11,850

 
18,885

 
30,735

 
603

 
30,132

 
9,559

Hibernia Pavilion
 
4,929

 
5,065

 
162

 
4,929

 
5,227

 
10,156

 
2,970

 
7,186

 

Hickory Creek Plaza
 
5,629

 
4,564

 
445

 
5,629

 
5,009

 
10,638

 
4,263

 
6,375

 

Hillcrest Village
 
1,600

 
1,909

 
51

 
1,600

 
1,960

 
3,560

 
997

 
2,563

 

Hilltop Village
 
2,995

 
4,581

 
3,593

 
3,104

 
8,065

 
11,169

 
2,296

 
8,873

 

Hinsdale
 
5,734

 
16,709

 
11,498

 
8,343

 
25,598

 
33,941

 
12,666

 
21,275

 

Holly Park
 
8,975

 
23,799

 
(112
)
 
8,828

 
23,834

 
32,662

 
4,366

 
28,296

 

Homestead McDonald's
 
2,229

 

 

 
2,229

 

 
2,229

 
15

 
2,214

 

Howell Mill Village
 
5,157

 
14,279

 
2,692

 
5,157

 
16,971

 
22,128

 
6,226

 
15,902

 

Hyde Park
 
9,809

 
39,905

 
3,522

 
9,809

 
43,427

 
53,236

 
25,026

 
28,210

 

Indian Springs Center
 
24,974

 
25,903

 
204

 
25,034

 
26,047

 
51,081

 
3,988

 
47,093

 

Inglewood Plaza
 
1,300

 
2,159

 
657

 
1,300

 
2,816

 
4,116

 
1,496

 
2,620

 

Jefferson Square
 
5,167

 
6,445

 
(7,219
)
 
1,894

 
2,499

 
4,393

 
797

 
3,596

 

Keller Town Center
 
2,294

 
12,841

 
666

 
2,404

 
13,397

 
15,801

 
6,787

 
9,014

 

Kent Place
 
4,855

 
3,586

 
938

 
5,269

 
4,110

 
9,379

 
986

 
8,393

 
8,250

Kirkman Shoppes
 
9,364

 
26,243

 
540

 
9,367

 
26,780

 
36,147

 
1,827

 
34,320

 

Kirkwood Commons
 
6,772

 
16,224

 
838

 
6,802

 
17,032

 
23,834

 
4,539

 
19,295

 
8,742

Klahanie Shopping Center
 
14,451

 
20,089

 
490

 
14,451

 
20,579

 
35,030

 
1,906

 
33,124

 

Kroger New Albany Center
 
3,844

 
6,599

 
1,278

 
3,844

 
7,877

 
11,721

 
5,472

 
6,249

 

Lake Mary Centre
 
24,036

 
57,476

 
576

 
24,036

 
58,052

 
82,088

 
4,546

 
77,542

 


131



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Lake Pine Plaza
 
2,008

 
7,632

 
767

 
2,029

 
8,378

 
10,407

 
4,554

 
5,853

 

Lantana Outparcels
 
3,710

 
1,004

 

 
3,710

 
1,004

 
4,714

 
157

 
4,557

 

Lebanon/Legacy Center
 
3,913

 
7,874

 
689

 
3,913

 
8,563

 
12,476

 
5,903

 
6,573

 

Littleton Square
 
2,030

 
8,859

 
(3,867
)
 
2,423

 
4,599

 
7,022

 
2,186

 
4,836

 

Lloyd King Center
 
1,779

 
10,060

 
1,213

 
1,779

 
11,273

 
13,052

 
6,224

 
6,828

 

Lower Nazareth Commons
 
15,992

 
12,964

 
3,664

 
16,343

 
16,277

 
32,620

 
8,616

 
24,004

 

Mandarin Landing
 
7,913

 
27,230

 
309

 
7,913

 
27,539

 
35,452

 
2,036

 
33,416

 

Market at Colonnade Center
 
6,455

 
9,839

 
87

 
6,160

 
10,221

 
16,381

 
3,877

 
12,504

 

Market at Preston Forest
 
4,400

 
11,445

 
1,291

 
4,400

 
12,736

 
17,136

 
6,915

 
10,221

 

Market at Round Rock
 
2,000

 
9,676

 
6,543

 
1,996

 
16,223

 
18,219

 
9,577

 
8,642

 

Market at Springwoods Village
 
12,712

 
12,351

 

 
12,712

 
12,351

 
25,063

 
988

 
24,075

 
10,309

Market Common Clarendon
 
154,932

 
126,328

 
712

 
154,932

 
127,040

 
281,972

 
14,928

 
267,044

 

Marketplace at Briargate
 
1,706

 
4,885

 
87

 
1,727

 
4,951

 
6,678

 
2,668

 
4,010

 

Mellody Farm
 
34,866

 
54,861

 

 
34,866

 
54,861

 
89,727

 
725

 
89,002

 

Millhopper Shopping Center
 
1,073

 
5,358

 
5,980

 
1,901

 
10,510

 
12,411

 
6,906

 
5,505

 

Mockingbird Commons
 
3,000

 
10,728

 
2,176

 
3,000

 
12,904

 
15,904

 
6,447

 
9,457

 

Monument Jackson Creek
 
2,999

 
6,765

 
807

 
2,999

 
7,572

 
10,571

 
5,563

 
5,008

 

Morningside Plaza
 
4,300

 
13,951

 
868

 
4,300

 
14,819

 
19,119

 
7,812

 
11,307

 

Murryhill Marketplace
 
2,670

 
18,401

 
13,193

 
2,903

 
31,361

 
34,264

 
12,791

 
21,473

 

Naples Walk
 
18,173

 
13,554

 
1,126

 
18,173

 
14,680

 
32,853

 
6,193

 
26,660

 

Newberry Square
 
2,412

 
10,150

 
834

 
2,412

 
10,984

 
13,396

 
8,302

 
5,094

 

Newland Center
 
12,500

 
10,697

 
8,247

 
16,192

 
15,252

 
31,444

 
7,894

 
23,550

 

Nocatee Town Center
 
10,124

 
8,691

 
7,358

 
10,582

 
15,591

 
26,173

 
5,312

 
20,861

 

North Hills
 
4,900

 
19,774

 
1,372

 
4,900

 
21,146

 
26,046

 
11,108

 
14,938

 

Northgate Marketplace
 
5,668

 
13,727

 
(52
)
 
4,995

 
14,348

 
19,343

 
4,786

 
14,557

 

Northgate Marketplace Phase II
 
12,189

 
30,160

 

 
12,189

 
30,160

 
42,349

 
3,105

 
39,244

 

Northgate Plaza (Maxtown Road)
 
1,769

 
6,652

 
4,899

 
2,840

 
10,480

 
13,320

 
4,766

 
8,554

 

Northgate Square
 
5,011

 
8,692

 
1,073

 
5,011

 
9,765

 
14,776

 
4,086

 
10,690

 

Northlake Village
 
2,662

 
11,284

 
1,717

 
2,686

 
12,977

 
15,663

 
6,661

 
9,002

 

Oak Shade Town Center
 
6,591

 
28,966

 
670

 
6,591

 
29,636

 
36,227

 
8,020

 
28,207

 
7,570

Oakbrook Plaza
 
4,000

 
6,668

 
5,316

 
4,756

 
11,228

 
15,984

 
4,182

 
11,802

 

Oakleaf Commons
 
3,503

 
11,671

 
256

 
3,190

 
12,240

 
15,430

 
5,844

 
9,586

 


132



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Ocala Corners
 
1,816

 
10,515

 
522

 
1,816

 
11,037

 
12,853

 
3,764

 
9,089

 
4,148

Old St Augustine Plaza
 
2,368

 
11,405

 
7,771

 
3,178

 
18,366

 
21,544

 
7,068

 
14,476

 

Pablo Plaza
 
11,894

 
21,407

 
2,322

 
12,596

 
23,027

 
35,623

 
3,338

 
32,285

 

Paces Ferry Plaza
 
2,812

 
12,639

 
14,626

 
8,318

 
21,759

 
30,077

 
8,439

 
21,638

 

Panther Creek
 
14,414

 
14,748

 
4,935

 
15,212

 
18,885

 
34,097

 
12,667

 
21,430

 

Pavilion
 
15,626

 
22,124

 
446

 
15,626

 
22,570

 
38,196

 
1,848

 
36,348

 

Peartree Village
 
5,197

 
19,746

 
873

 
5,197

 
20,619

 
25,816

 
12,325

 
13,491

 

Persimmons Place
 
25,975

 
38,114

 
187

 
26,692

 
37,584

 
64,276

 
7,514

 
56,762

 

Piedmont Peachtree Crossing
 
45,502

 
16,642

 
128

 
45,502

 
16,770

 
62,272

 
1,471

 
60,801

 

Pike Creek
 
5,153

 
20,652

 
2,555

 
5,251

 
23,109

 
28,360

 
12,453

 
15,907

 

Pine Island
 
21,086

 
28,123

 
2,432

 
21,086

 
30,555

 
51,641

 
2,772

 
48,869

 

Pine Lake Village
 
6,300

 
10,991

 
1,287

 
6,300

 
12,278

 
18,578

 
6,458

 
12,120

 

Pine Ridge Square
 
13,951

 
23,147

 
210

 
13,951

 
23,357

 
37,308

 
1,730

 
35,578

 

Pine Tree Plaza
 
668

 
6,220

 
626

 
668

 
6,846

 
7,514

 
3,682

 
3,832

 

Pinecrest Place
 
3,753

 
12,310

 

 
3,753

 
12,310

 
16,063

 
453

 
15,610

 

Plaza Escuela
 
24,829

 
104,395

 
174

 
24,829

 
104,569

 
129,398

 
5,472

 
123,926

 

Plaza Hermosa
 
4,200

 
10,109

 
3,045

 
4,202

 
13,152

 
17,354

 
6,595

 
10,759

 

Pleasanton Plaza
 
21,839

 
24,743

 
85

 
21,839

 
24,828

 
46,667

 
1,789

 
44,878

 

Point 50 (Formerly Fairfax Shopping Center)
 
15,239

 
11,367

 
(16,447
)
 
10,159

 

 
10,159

 

 
10,159

 

Point Royale Shopping Center
 
18,201

 
14,889

 
6,158

 
19,372

 
19,876

 
39,248

 
1,762

 
37,486

 

Post Road Plaza
 
15,240

 
5,196

 
152

 
15,240

 
5,348

 
20,588

 
371

 
20,217

 

Potrero Center
 
133,422

 
116,758

 

 
133,422

 
116,758

 
250,180

 
6,259

 
243,921

 

Powell Street Plaza
 
8,248

 
30,716

 
2,422

 
8,248

 
33,138

 
41,386

 
15,488

 
25,898

 

Powers Ferry Square
 
3,687

 
17,965

 
9,403

 
5,752

 
25,303

 
31,055

 
15,774

 
15,281

 

Powers Ferry Village
 
1,191

 
4,672

 
538

 
1,191

 
5,210

 
6,401

 
3,820

 
2,581

 

Preston Oaks
 
763

 
30,438

 
1,014

 
763

 
31,452

 
32,215

 
5,265

 
26,950

 

Prestonbrook
 
7,069

 
8,622

 
573

 
7,069

 
9,195

 
16,264

 
6,732

 
9,532

 

Prosperity Centre
 
11,682

 
26,215

 
(38
)
 
11,681

 
26,178

 
37,859

 
1,953

 
35,906

 

Ralphs Circle Center
 
20,939

 
6,317

 
(21
)
 
20,939

 
6,296

 
27,235

 
552

 
26,683

 

Red Bank Village
 
10,336

 
9,505

 
1,964

 
10,539

 
11,266

 
21,805

 
2,957

 
18,848

 

Regency Commons
 
3,917

 
3,616

 
307

 
3,917

 
3,923

 
7,840

 
2,525

 
5,315

 


133



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Regency Square
 
4,770

 
25,191

 
6,281

 
5,060

 
31,182

 
36,242

 
23,967

 
12,275

 

Rivertowns Square
 
15,505

 
52,505

 
586

 
15,719

 
52,877

 
68,596

 
1,198

 
67,398

 

Rona Plaza
 
1,500

 
4,917

 
259

 
1,500

 
5,176

 
6,676

 
2,983

 
3,693

 

Roosevelt Square
 
40,371

 
32,108

 
1,324

 
40,382

 
33,421

 
73,803

 
1,017

 
72,786

 

Russell Ridge
 
2,234

 
6,903

 
1,373

 
2,234

 
8,276

 
10,510

 
5,116

 
5,394

 

Ryanwood Square
 
10,581

 
10,044

 
27

 
10,581

 
10,071

 
20,652

 
974

 
19,678

 

Salerno Village
 
1,355

 

 

 
1,355

 

 
1,355

 
9

 
1,346

 

Sammamish-Highlands
 
9,300

 
8,075

 
8,180

 
9,592

 
15,963

 
25,555

 
8,286

 
17,269

 

San Carlos Marketplace
 
36,006

 
57,886

 
(6
)
 
36,006

 
57,880

 
93,886

 
3,151

 
90,735

 

San Leandro Plaza
 
1,300

 
8,226

 
615

 
1,300

 
8,841

 
10,141

 
4,594

 
5,547

 

Sandy Springs
 
6,889

 
28,056

 
2,874

 
6,889

 
30,930

 
37,819

 
6,539

 
31,280

 

Sawgrass Promenade
 
10,846

 
12,525

 
132

 
10,846

 
12,657

 
23,503

 
1,099

 
22,404

 

Scripps Ranch Marketplace
 
59,949

 
26,334

 
306

 
59,949

 
26,640

 
86,589

 
1,018

 
85,571

 
27,000

Sequoia Station
 
9,100

 
18,356

 
1,791

 
9,100

 
20,147

 
29,247

 
10,437

 
18,810

 

Serramonte Center
 
390,106

 
172,652

 
54,176

 
409,772

 
207,162

 
616,934

 
13,114

 
603,820

 

Shaw's at Plymouth
 
3,968

 
8,367

 

 
3,968

 
8,367

 
12,335

 
666

 
11,669

 

Sheridan Plaza
 
82,260

 
97,273

 
651

 
82,260

 
97,924

 
180,184

 
6,814

 
173,370

 

Sherwood Crossings
 
2,731

 
6,360

 
1,176

 
2,731

 
7,536

 
10,267

 
3,175

 
7,092

 

Shoppes @ 104
 
11,193

 

 
2,351

 
7,021

 
6,523

 
13,544

 
2,456

 
11,088

 

Shoppes at Homestead
 
5,420

 
9,450

 
2,064

 
5,420

 
11,514

 
16,934

 
5,859

 
11,075

 

Shoppes at Lago Mar
 
8,323

 
11,347

 
(36
)
 
8,323

 
11,311

 
19,634

 
985

 
18,649

 

Shoppes at Sunlake Centre
 
16,643

 
15,091

 
195

 
16,643

 
15,286

 
31,929

 
1,475

 
30,454

 

Shoppes of Grande Oak
 
5,091

 
5,985

 
489

 
5,091

 
6,474

 
11,565

 
5,067

 
6,498

 

Shoppes of Jonathan's Landing
 
4,474

 
5,628

 
149

 
4,474

 
5,777

 
10,251

 
459

 
9,792

 

Shoppes of Oakbrook
 
20,538

 
42,992

 
465

 
20,538

 
43,457

 
63,995

 
2,987

 
61,008

 
4,626

Shoppes of Silver Lakes
 
17,529

 
21,829

 
(68
)
 
17,529

 
21,761

 
39,290

 
1,812

 
37,478

 

Shoppes of Sunset
 
2,860

 
1,316

 
(21
)
 
2,860

 
1,295

 
4,155

 
146

 
4,009

 

Shoppes of Sunset II
 
2,834

 
715

 
9

 
2,834

 
724

 
3,558

 
123

 
3,435

 

Shops at County Center
 
9,957

 
11,296

 
925

 
10,254

 
11,924

 
22,178

 
8,699

 
13,479

 

Shops at Erwin Mill
 
9,082

 
6,124

 
246

 
9,082

 
6,370

 
15,452

 
2,243

 
13,209

 
10,000

Shops at John's Creek
 
1,863

 
2,014

 
(334
)
 
1,501

 
2,042

 
3,543

 
1,334

 
2,209

 


134



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Shops at Mira Vista
 
11,691

 
9,026

 
137

 
11,691

 
9,163

 
20,854

 
1,779

 
19,075

 
225

Shops at Quail Creek
 
1,487

 
7,717

 
454

 
1,458

 
8,200

 
9,658

 
3,436

 
6,222

 

Shops at Saugus
 
19,201

 
17,984

 
(120
)
 
18,811

 
18,254

 
37,065

 
9,213

 
27,852

 

Shops at Skylake
 
84,586

 
39,342

 
1,270

 
85,117

 
40,081

 
125,198

 
3,516

 
121,682

 

Shops on Main
 
17,020

 
27,055

 
10,252

 
18,555

 
35,772

 
54,327

 
7,634

 
46,693

 

Siegen Village
 
6,462

 
11,834

 
268

 
6,462

 
12,102

 
18,564

 
1,452

 
17,112

 

Sope Creek Crossing
 
2,985

 
12,001

 
3,027

 
3,332

 
14,681

 
18,013

 
8,109

 
9,904

 

South Bay Village
 
11,714

 
15,580

 
1,739

 
11,776

 
17,257

 
29,033

 
3,955

 
25,078

 

South Beach Regional
 
28,188

 
53,405

 
490

 
28,188

 
53,895

 
82,083

 
4,240

 
77,843

 

South Point
 
6,563

 
7,939

 
25

 
6,563

 
7,964

 
14,527

 
675

 
13,852

 

Southbury Green
 
26,661

 
34,325

 
1,685

 
26,686

 
35,985

 
62,671

 
2,358

 
60,313

 

Southcenter
 
1,300

 
12,750

 
2,088

 
1,300

 
14,838

 
16,138

 
7,568

 
8,570

 

Southpark at Cinco Ranch
 
18,395

 
11,306

 
7,371

 
21,438

 
15,634

 
37,072

 
5,238

 
31,834

 

SouthPoint Crossing
 
4,412

 
12,235

 
1,049

 
4,382

 
13,314

 
17,696

 
6,882

 
10,814

 

Starke
 
71

 
1,683

 
7

 
71

 
1,690

 
1,761

 
771

 
990

 

Star's at Cambridge
 
31,082

 
13,520

 

 
31,082

 
13,520

 
44,602

 
919

 
43,683

 

Star's at Quincy
 
27,003

 
9,425

 

 
27,003

 
9,425

 
36,428

 
1,011

 
35,417

 

Star's at West Roxbury
 
21,973

 
13,386

 
(9
)
 
21,973

 
13,377

 
35,350

 
922

 
34,428

 

Sterling Ridge
 
12,846

 
12,162

 
826

 
12,846

 
12,988

 
25,834

 
9,596

 
16,238

 

Stroh Ranch
 
4,280

 
8,189

 
659

 
4,280

 
8,848

 
13,128

 
6,276

 
6,852

 

Suncoast Crossing
 
9,030

 
10,764

 
4,569

 
13,374

 
10,989

 
24,363

 
6,337

 
18,026

 

Talega Village Center
 
22,415

 
12,054

 
39

 
22,415

 
12,093

 
34,508

 
930

 
33,578

 

Tamarac Town Square
 
12,584

 
9,221

 
(5
)
 
12,584

 
9,216

 
21,800

 
919

 
20,881

 

Tanasbourne Market
 
3,269

 
10,861

 
(272
)
 
3,269

 
10,589

 
13,858

 
4,958

 
8,900

 

Tassajara Crossing
 
8,560

 
15,464

 
1,630

 
8,560

 
17,094

 
25,654

 
8,550

 
17,104

 

Tech Ridge Center
 
12,945

 
37,169

 
(14
)
 
12,945

 
37,155

 
50,100

 
13,800

 
36,300

 
5,694

The Abbot (Formerly The Collection at Harvard Square)
 
72,910

 
6,086

 
14

 
72,910

 
6,100

 
79,010

 
1,984

 
77,026

 

The Field at Commonwealth
 
25,328

 
15,490

 

 
25,328

 
15,490

 
40,818

 
814

 
40,004

 

The Gallery at Westbury Plaza
 
108,653

 
216,771

 
885

 
108,653

 
217,656

 
326,309

 
12,808

 
313,501

 

The Hub Hillcrest Market
 
18,773

 
61,906

 
5,059

 
19,611

 
66,127

 
85,738

 
12,181

 
73,557

 

The Marketplace Shopping Center
 
10,927

 
36,052

 
161

 
10,927

 
36,213

 
47,140

 
2,382

 
44,758

 


135



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
The Plaza at St. Lucie West
 
1,718

 
6,204

 
(6
)
 
1,718

 
6,198

 
7,916

 
442

 
7,474

 

The Point at Garden City Park
 
741

 
9,764

 
5,444

 
2,518

 
13,431

 
15,949

 
1,331

 
14,618

 

The Shops at Hampton Oaks
 
843

 
372

 
61

 
843

 
433

 
1,276

 
54

 
1,222

 

The Shops at Stonewall
 
27,511

 
22,123

 
8,787

 
28,633

 
29,788

 
58,421

 
17,319

 
41,102

 

The Village at Riverstone
 
20,645

 
11,155

 

 
20,645

 
11,155

 
31,800

 
173

 
31,627

 

The Village Center
 
43,597

 
16,428

 
502

 
44,070

 
16,457

 
60,527

 
1,261

 
59,266

 
13,434

Town and Country
 
4,664

 
5,207

 
27

 
4,664

 
5,234

 
9,898

 
635

 
9,263

 

Town Square
 
883

 
8,132

 
378

 
883

 
8,510

 
9,393

 
5,030

 
4,363

 

Treasure Coast Plaza
 
7,553

 
21,554

 
378

 
7,553

 
21,932

 
29,485

 
1,609

 
27,876

 
2,746

Tustin Legacy
 
13,836

 
23,856

 

 
13,836

 
23,856

 
37,692

 
1,420

 
36,272

 

Twin City Plaza
 
17,245

 
44,225

 
2,295

 
17,263

 
46,502

 
63,765

 
16,382

 
47,383

 

Twin Peaks
 
5,200

 
25,827

 
1,866

 
5,200

 
27,693

 
32,893

 
13,947

 
18,946

 

Unigold Shopping Center
 
5,490

 
5,144

 
6,320

 
5,561

 
11,393

 
16,954

 
810

 
16,144

 

University Commons
 
4,070

 
30,785

 
5

 
4,070

 
30,790

 
34,860

 
4,234

 
30,626

 
36,425

Valencia Crossroads
 
17,921

 
17,659

 
1,207

 
17,921

 
18,866

 
36,787

 
15,823

 
20,964

 

Village at La Floresta
 
13,140

 
20,571

 
(272
)
 
13,156

 
20,283

 
33,439

 
3,342

 
30,097

 

Village at Lee Airpark
 
11,099

 
12,968

 
3,485

 
12,007

 
15,545

 
27,552

 
8,952

 
18,600

 

Village Center
 
3,885

 
14,131

 
8,974

 
5,480

 
21,510

 
26,990

 
9,461

 
17,529

 

Vons Circle Center
 
49,037

 
22,618

 
88

 
49,037

 
22,706

 
71,743

 
1,651

 
70,092

 
7,699

Walker Center
 
3,840

 
7,232

 
4,151

 
3,878

 
11,345

 
15,223

 
6,572

 
8,651

 

Walmart Norwalk
 
20,394

 
21,261

 

 
20,394

 
21,261

 
41,655

 
1,709

 
39,946

 

Waterstone Plaza
 
5,498

 
13,500

 
12

 
5,498

 
13,512

 
19,010

 
978

 
18,032

 

Welleby Plaza
 
1,496

 
7,787

 
1,504

 
1,496

 
9,291

 
10,787

 
7,434

 
3,353

 

Wellington Town Square
 
2,041

 
12,131

 
111

 
2,041

 
12,242

 
14,283

 
7,157

 
7,126

 

West Bird Plaza
 
12,934

 
18,594

 
(5
)
 
12,934

 
18,589

 
31,523

 
1,355

 
30,168

 

West Chester Plaza
 
1,857

 
7,572

 
483

 
1,857

 
8,055

 
9,912

 
5,566

 
4,346

 

West Lake Shopping Center
 
10,561

 
9,792

 
(16
)
 
10,561

 
9,776

 
20,337

 
1,007

 
19,330

 

West Park Plaza
 
5,840

 
5,759

 
1,590

 
5,840

 
7,349

 
13,189

 
4,117

 
9,072

 

Westbury Plaza
 
116,129

 
51,460

 
3,082

 
116,129

 
54,542

 
170,671

 
4,695

 
165,976

 
88,000

Westchase
 
5,302

 
8,273

 
964

 
5,302

 
9,237

 
14,539

 
3,582

 
10,957

 

Westchester Commons
 
3,366

 
11,751

 
10,722

 
4,894

 
20,945

 
25,839

 
7,287

 
18,552

 

Westlake Village Plaza
 
7,043

 
27,195

 
29,943

 
17,602

 
46,579

 
64,181

 
22,831

 
41,350

 


136



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2018
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land & Land Improvements
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Westport Plaza
 
9,035

 
7,455

 
9

 
9,035

 
7,464

 
16,499

 
668

 
15,831

 
2,651

Westwood - Manor Care
 
12,808

 
2,420

 

 
12,808

 
2,420

 
15,228

 
120

 
15,108

 

Westwood Shopping Center
 
115,051

 
19,095

 

 
115,051

 
19,095

 
134,146

 
4,478

 
129,668

 

Westwood Village
 
19,933

 
25,301

 
(2,075
)
 
18,733

 
24,426

 
43,159

 
13,177

 
29,982

 

Whole Foods at Swampscott
 
7,399

 
8,322

 

 
7,399

 
8,322

 
15,721

 
574

 
15,147

 

Williamsburg at Dunwoody
 
7,435

 
3,721

 
563

 
7,444

 
4,275

 
11,719

 
455

 
11,264

 

Willow Festival
 
1,954

 
56,501

 
2,994

 
1,976

 
59,473

 
61,449

 
14,757

 
46,692

 
39,505

Willow Oaks Crossing
 
6,664

 
7,833

 
6

 
6,664

 
7,839

 
14,503

 
1,538

 
12,965

 

Willows Shopping Center
 
51,964

 
78,029

 
592

 
51,992

 
78,593

 
130,585

 
4,851

 
125,734

 

Woodcroft Shopping Center
 
1,419

 
6,284

 
1,078

 
1,421

 
7,360

 
8,781

 
4,526

 
4,255

 

Woodman Van Nuys
 
5,500

 
7,195

 
293

 
5,500

 
7,488

 
12,988

 
3,953

 
9,035

 

Woodmen Plaza
 
7,621

 
11,018

 
920

 
7,621

 
11,938

 
19,559

 
10,631

 
8,928

 

Woodside Central
 
3,500

 
9,288

 
537

 
3,489

 
9,836

 
13,325

 
5,134

 
8,191

 

Young Circle Shopping Center
 
5,986

 
10,394

 
9

 
5,986

 
10,403

 
16,389

 
789

 
15,600

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Assets
 

 

 
1,667

 

 
1,667

 
1,667

 
1,615

 
52

 

Land held for future development
 
37,520

 

 
(6,636
)
 
30,875

 
9

 
30,884

 
2

 
30,882

 

Construction in progress
 

 

 
54,172

 

 
54,172

 
54,172

 

 
54,172

 

 
 
$
4,736,970

 
5,495,990

 
630,202

 
4,819,292

 
6,043,870

 
10,863,162

 
1,535,444

 
9,327,718

 
525,182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) See Item 2, Properties for geographic location and year each operating property was acquired.
(2) The negative balance for costs capitalized subsequent to acquisition could include out-parcels sold, provision for loss recorded, and demolition of part of the property for redevelopment.
See accompanying report of independent registered public accounting firm.


137



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation, continued
December 31, 2018
(in thousands)
Depreciation and amortization of the Company's investment in buildings and improvements reflected in the statements of operations is calculated over the estimated useful lives of the assets, which are up to 40 years. The aggregate cost for federal income tax purposes was approximately $8.7 billion at December 31, 2018.
The changes in total real estate assets for the years ended December 31, 2018, 2017, and 2016 are as follows (in thousands):
 
 
2018
 
2017
 
2016
Beginning balance
 
$
10,892,821

 
4,933,499

 
4,545,900

Acquired properties and land
 
113,911

 
5,772,265

 
370,010

Developments and improvements
 
198,005

 
273,871

 
148,904

Sale of properties
 
(277,270
)
 
(86,814
)
 
(126,855
)
Properties held for sale
 
(59,438
)
 

 

Provision for impairment
 
(4,867
)
 

 
(4,460
)
Ending balance
 
$
10,863,162

 
10,892,821

 
4,933,499

The changes in accumulated depreciation for the years ended December 31, 2018, 2017, and 2016 are as follows (in thousands):
 
 
2018
 
2017
 
2016
Beginning balance
 
$
1,339,771

 
1,124,391

 
1,043,787

Depreciation expense
 
249,489

 
222,395

 
115,355

Sale of properties
 
(45,901
)
 
(7,015
)
 
(32,791
)
Accumulated depreciation related to properties held for sale
 
(7,729
)
 

 

Provision for impairment
 
(186
)
 

 
(1,960
)
Ending balance
 
$
1,535,444

 
1,339,771

 
1,124,391

See accompanying report of independent registered public accounting firm.

138




Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.

Item 9A. Controls and Procedures
Controls and Procedures (Regency Centers Corporation)
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of the Parent Company's management, including its chief executive officer and chief financial officer, the Parent Company conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on this evaluation, the Parent Company's chief executive officer and chief financial officer concluded that its disclosure controls and procedures were effective as of the end of the period covered by this annual report on Form 10-K to ensure information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Parent Company in the reports it files or submits is accumulated and communicated to management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Management's Report on Internal Control over Financial Reporting
The Parent Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of its management, including its chief executive officer and chief financial officer, the Parent Company conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its evaluation under the framework in Internal Control - Integrated Framework (2013), the Parent Company's management concluded that its internal control over financial reporting was effective as of December 31, 2018.
KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this annual report on Form 10-K and, as part of their audit, has issued a report, included herein, on the effectiveness of the Parent Company's internal control over financial reporting.
The Parent Company's system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Controls
There have not been any changes in the Parent Company's internal controls over financial reporting identified in connection with this evaluation that occurred during the fourth quarter of 2018 and that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.
Controls and Procedures (Regency Centers, L.P.)
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of the Operating Partnership's management, including the chief executive officer and chief financial officer of its general partner, the Operating Partnership conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. Based on this evaluation, the chief executive officer and chief financial officer of its general partner concluded that its disclosure controls and procedures were effective as of the end of the period covered by this annual report on Form 10-K to ensure information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Operating Partnership in the reports it files or submits is accumulated and communicated to management, including the chief executive officer and chief financial officer of its general partner, as appropriate, to allow timely decisions regarding required disclosure.

139



Management's Report on Internal Control over Financial Reporting
The Operating Partnership's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of its management, including the chief executive officer and chief financial officer of its general partner, the Operating Partnership conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its evaluation under the framework in Internal Control - Integrated Framework (2013), the Operating Partnership's management concluded that its internal control over financial reporting was effective as of December 31, 2018.
KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this annual report on Form 10-K and, as part of their audit, has issued a report, included herein, on the effectiveness of the Operating Partnership's internal control over financial reporting.
The Operating Partnership's system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Controls
There have not been any changes in the Operating Partnership's internal controls over financial reporting identified in connection with this evaluation that occurred during the fourth quarter of 2018 and that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.
Item 9B. Other Information
Not applicable


PART III
Item 10. Directors, Executive Officers, and Corporate Governance
Information concerning our directors, executive officers, and corporate governance is incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2019 Annual Meeting of Stockholders. Information regarding executive officers is included in Part I of this Form 10-K as permitted by General Instruction G(3).
Code of Ethics.
We have a code of ethics applicable to our Board of Directors, principal executive officers, principal financial officer, principal accounting officer and persons performing similar functions. The text of this code of ethics may be found on our web site at www.regencycenters.com. We will post a notice of any waiver from, or amendment to, any provision of our code of ethics on our web site.

Item 11. Executive Compensation
Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2019 Annual Meeting of Stockholders.

140




Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Equity Compensation Plan Information
 
 
(a)
 
(b)
 
(c)
Plan Category
 
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1)
 



Weighted-average exercise price of outstanding options, warrants and rights(2)
 
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a) (3)
Equity compensation plans
approved by security holders
 

 
$

 
1,221,853

Equity compensation plans not approved by security holders
 
N/A
 
N/A
 
N/A
Total
 

 
$

 
1,221,853

 
 
 
 
 
 
 
(1) This column does not include 595,171 shares that may be issued pursuant to unvested restricted stock and performance share awards.
(2) The weighted average exercise price excludes stock rights awards, which we sometimes refer to as unvested restricted stock.
(3) The Regency Centers Corporation 2011 Omnibus Incentive Plan, (“Omnibus Plan”), as approved by stockholders at our 2011 annual meeting, provides that an aggregate maximum of 4.1 million shares of our common stock are reserved for issuance under the Omnibus Plan.
Information about security ownership is incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2019 Annual Meeting of Stockholders.

Item 13. Certain Relationships and Related Transactions, and Director Independence
Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2019 Annual Meeting of Stockholders.

Item 14. Principal Accountant Fees and Services
Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2019 Annual Meeting of Stockholders.

141





PART IV
Item 15. Exhibits and Financial Statement Schedules
(a)    Financial Statements and Financial Statement Schedules:
Regency Centers Corporation and Regency Centers, L.P. 2018 financial statements and financial statement schedule, together with the reports of KPMG LLP are listed on the index immediately preceding the financial statements in Item 8, Consolidated Financial Statements and Supplemental Data.
(b)    Exhibits:
In reviewing the agreements included as exhibits to this report, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about the Company, its subsidiaries or other parties to the agreements. The Agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. We acknowledge that, notwithstanding the inclusion of the foregoing cautionary statements, we are responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this report not misleading. Additional information about the Company may be found elsewhere in this report and the Company's other public files, which are available without charge through the SEC's website at http://www.sec.gov.
Unless otherwise indicated below, the Commission file number to the exhibit is No. 001-12298.
1.    Underwriting Agreement
(a)
Form of Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and the parties listed below (incorporated by reference to Exhibit 1.1 to the Company’s Form 8-K filed on May 17, 2017). The Equity Distribution Agreements listed below are substantially identical in all material respects to the Form of Equity Distribution Agreement, except for the identities of the parties, and have not been filed as exhibits to the Company’s 1934 Act reports pursuant to Instruction 2 to item 601 of Regulation S-K:
(i)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and Wells Fargo Securities, LLC;
(ii)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and J.P. Morgan Securities LLC;
(iii)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and Merrill Lynch, Pierce, Fenner & Smith Incorporated;
(iv)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and BB&T Capital Markets, a division of BB&T Securities, LLC;
(v)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and BTIG, LLC;

142



(vi)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and RBC Capital Markets, LLC;
(vii)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and SunTrust Robinson Humphrey, Inc.; and
(viii)
Equity Distribution Agreement dated May 17, 2017 among Regency Centers Corporation, Regency Centers, L.P. and Mizuho Securities USA LLC.
(b)
Form of Amendment No. 1 to the Equity Distribution Agreement, dated November 13, 2018 (incorporated by referent to Exhibit 1.1 to the Company’s Form 8-K filed on November 14, 2018). The Amendment No.1 to each of the Equity Distribution Agreements, dated November 13, 2018, and listed in Exhibit 1 (a) are substantially identical in all material respects to the Form of Amendment No. 1 to the Equity Distribution Agreement, except for the identities of the parties, and have not been filed as exhibits to the Company’s 1934 Act reports pursuant to item 601 of Regulation S-K.
(c)
Forward Master Confirmation, dated May 17, 2017, by and between Regency Centers Corporation and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 1.2 to the Company’s Form 8-K filed on May 17, 2017).
(i)
Amendment No. 1 to the Forward Master Confirmation (incorporated by reference to Exhibit 1.2 to the Company’s form 8-K filed on November 14, 2018).
(d)
Forward Master Confirmation, dated May 17, 2017, by and between Regency Centers Corporation and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 1.3 to the Company’s Form 8-K filed on May 17, 2017).
(i)
Amendment No. 1 to the Forward Master Confirmation (incorporated by reference to Exhibit 1.3 to the Company’s form 8-K filed on November 14, 2018).
(e)
Forward Master Confirmation, dated May 17, 2017, by and between Regency Centers Corporation and Bank of America, N.A. (incorporated by reference to Exhibit 1.4 to the Company’s Form 8-K filed on May 17, 2017)
(i)
Amendment No. 1 to the Forward Master Confirmation (incorporated by reference to Exhibit 1.4 to the Company’s form 8-K filed on November 14, 2018).
3.    Articles of Incorporation and Bylaws
(a)
Restated Articles of Incorporation of Regency Centers Corporation (amendment is incorporated by reference to Exhibit 3.A to the Company’s Form 10-Q filed on August 8, 2017).
(b)
Amended and Restated Bylaws of Regency Centers Corporation (amendment is incorporated by reference to Exhibit 3.B to the Company’s Form 10-Q filed on August 8, 2017).
(c)
Fifth Amended and Restated Agreement of Limited Partnership of Regency Centers, L.P., (incorporated by reference to Exhibit 3(d) to the Company's Form 10-K filed on February 19, 2014).
4.    Instruments Defining Rights of Security Holders
(a)
See Exhibits 3(a) and 3(b) for provisions of the Articles of Incorporation and Bylaws of the Company defining the rights of security holders. See Exhibits 3(c) for provisions of the Partnership Agreement of Regency Centers, L.P. defining rights of security holders.
(b)
Indenture dated December 5, 2001 between Regency Centers, L.P., the guarantors named therein and First Union National Bank, as trustee (incorporated by reference to Exhibit 4.4 to Regency Centers, L.P.'s Form 8-K filed on December 10, 2001).
(i)

143



(ii)
(iii)
(iv)
(c)
Indenture dated September 9, 1998 between the Company, as successor-by-merger to IRT Property Company, and SunTrust Bank, as trustee (incorporated by reference to Exhibit 4.2 of Form 8-K filed by IRT Property Company on September 15, 1998)
(i)
Supplemental Indenture No. 1, dated September 9, 1998, between the Company, as successor-by-merger to IRT Property Company, and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.3 of Form 8-K filed by IRT Property Company on September 15, 1998)
(ii)
Supplemental Indenture No. 2, dated November 1, 1999, between the Company, as successor-by-merger to IRT Property Company, and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.5 of Form 8-K filed by IRT Property Company on November 12, 1999)
(iii)
Supplemental Indenture No. 3, dated February 12, 2003, between the Company and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.2 of Form 8-K filed by Equity One, Inc. on February 20, 2003)
(iv)
Supplemental Indenture No. 5, dated April 23, 2004, between the Company and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.1 of Form 10-Q filed by Equity One, Inc. on May 10, 2004)
(v)
Supplemental Indenture No. 6, dated May 20, 2005, between the Company and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.2 of Form 10-Q filed by Equity One, Inc. on August 5, 2005)
(vi)
Supplemental Indenture No. 8, dated December 30, 2005, between the Company and SunTrust Bank, as Trustee (incorporated by reference to Exhibit 4.17 of Form 10-K filed by Equity One, Inc. on March 3, 2006)
(vii)
Supplemental Indenture No. 13, dated as of October 25, 2012, between the Company and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 of Form 8-K filed by Equity One, Inc. on October 25, 2012)
(viii)
(ix)

144



(d)
Assumption Agreement, dated as of March 1, 2017, by Regency Centers Corporation (incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K filed on March 1, 2017)
10.    Material Contracts (~ indicates management contract or compensatory plan)
~(a)
Form of Stock Rights Award Agreement (incorporated by reference to Exhibit 10(b) to the Company's Form 10-K filed on March 10, 2006).
~(b)
Form of 409A Amendment to Stock Rights Award Agreement (incorporated by reference to Exhibit 10(b)(i) to the Company's Form 10-K filed on March on 17, 2009).
~(c)
Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10(c) to the Company's Form 10-K filed on March 10, 2006).
~(d)
Form of 409A Amendment to Stock Option Agreement (incorporated by reference to Exhibit 10(c)(i) to the Company's Form 10-K filed on March 17, 2009).
~(e)
Amended and Restated Deferred Compensation Plan dated May 6, 2003 (incorporated by reference to Exhibit 10(k) to the Company's Form 10-K filed on March 12, 2004).
~(f)
Regency Centers Corporation 2005 Deferred Compensation Plan (incorporated by reference to Exhibit 10(s) to the Company's Form 8-K filed on December 21, 2004).
~(g)
First Amendment to Regency Centers Corporation 2005 Deferred Compensation Plan dated December 2005 (incorporated by reference to Exhibit 10(q)(i) to the Company's Form 10-K filed on March 10, 2006).
~(h)
Second Amendment to the Regency Centers Corporation Amended and Restated Deferred Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed on June 14, 2011).
~(i)
Third Amendment to the Regency Centers Corporation 2005 Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed on June 14, 2011).
~(j)
Regency Centers Corporation 2011 Omnibus Plan (incorporated by reference to Annex A to the Company's 2011 Annual Meeting Proxy Statement filed on March 24, 2011).
~(k)
Form of Director/Officer Indemnification Agreement (filed as an Exhibit to Pre-effective Amendment No. 2 to the Company's registration statement on Form S-11 filed on October 5, 1993 (33-67258), and incorporated by reference).
~(l)
~(m)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and Lisa Palmer (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K filed on July 20, 2015).
~(n)
~(o)

(p)

145



Association, as Administrative Agent, and certain lenders party thereto (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on March 26, 2018).
(q)
(i)
First Amendment to Term Loan Agreement dated as of June 19, 2012 (incorporated by reference to Exhibit 10(h)(i) to the Company's Form 10-K filed on March 1, 2013).
(ii)
Second Amendment to Term Loan Agreement dated as of December 19, 2012 (incorporated by reference to Exhibit 10(h)(ii) to the Company's Form 10-K filed on March 1, 2013).
(iii)
Third Amendment to Term Loan Agreement dated as of June 27, 2014 (incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q filed on August 8, 2014).
(iv)
Fourth Amendment to Term Loan Agreement dated as of May 13, 2015 (incorporated by reference to Exhibit 10(j)(iv) to the Company's Form 10-K filed on February 18, 2016).
(v)
Fifth Amendment to Term Loan Agreement dated as of July 7, 2016 (incorporated by reference to exhibit 10.1 to the Company's Form 8-K filed on July 7, 2016).
(vi)
(vii)
(r)
(i)
(s)
(i)
21.    Subsidiaries of Regency Centers Corporation
23.    Consents of Independent Accountants
23.1    Consent of KPMG LLP for Regency Centers Corporation.

146



23.2    Consent of KPMG LLP for Regency Centers, L.P.
31.    Rule 13a-14(a)/15d-14(a) Certifications.
31.1    Rule 13a-14 Certification of Chief Executive Officer for Regency Centers Corporation.
31.2    Rule 13a-14 Certification of Chief Financial Officer for Regency Centers Corporation.
31.3    Rule 13a-14 Certification of Chief Executive Officer for Regency Centers, L.P.
31.4    Rule 13a-14 Certification of Chief Financial Officer for Regency Centers, L.P.
32.    Section 1350 Certifications.
The certifications in this exhibit 32 are being furnished solely to accompany this report pursuant to 18 U.S.C. § 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any of the Company's filings, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
32.1    18 U.S.C. § 1350 Certification of Chief Executive Officer for Regency Centers Corporation.
32.2    18 U.S.C. § 1350 Certification of Chief Financial Officer for Regency Centers Corporation.
32.3    18 U.S.C. § 1350 Certification of Chief Executive Officer for Regency Centers, L.P.
32.4    18 U.S.C. § 1350 Certification of Chief Financial Officer for Regency Centers, L.P.
101.    Interactive Data Files
101.INS+    XBRL Instance Document
101.SCH+    XBRL Taxonomy Extension Schema Document
101.CAL+    XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF+    XBRL Taxonomy Definition Linkbase Document
101.LAB+    XBRL Taxonomy Extension Label Linkbase Document
101.PRE+    XBRL Taxonomy Extension Presentation Linkbase Document
__________________________
+Submitted electronically with this Annual Report

147



SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
February 21, 2019
REGENCY CENTERS CORPORATION
 
By:

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer


February 21, 2019
REGENCY CENTERS, L.P.
 
By:
Regency Centers Corporation, General Partner
 
By:

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer

148



Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
February 21, 2019
 

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer
February 21, 2019
 

/s/ Lisa Palmer
Lisa Palmer, President, Chief Financial Officer, and Director (Principal Financial Officer)
February 21, 2019
 

/s/ J. Christian Leavitt
J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer)
February 21, 2019
 

/s/ Joseph Azrack
Joseph Azrack, Director
February 21, 2019
 

/s/ Bryce Blair
Bryce Blair, Director
February 21, 2019
 

/s/ C. Ronald Blankenship
C. Ronald Blankenship, Director
February 21, 2019
 

/s/ Deirdre J. Evens
Deirdre J. Evens, Director
February 21, 2019
 

/s/ Mary Lou Fiala
Mary Lou Fiala, Director
February 21, 2019
 

/s/ Peter Linneman
Peter Linneman, Director
February 21, 2019
 

/s/ David P. O'Connor
David P. O'Connor, Director
February 21, 2019
 

/s/ John C. Schweitzer
John C. Schweitzer, Director
February 21, 2019
 

/s/ Thomas G. Wattles
Thomas G. Wattles, Director


149