May 01, 2018 • 11:00 am ET

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Presentation
Operator
Operator

Greetings and welcome to Regency Centers First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to turn the conference over to your host, Laura Clark. Thank you. You may begin.

Executive
Laura Clark

Good morning, and welcome to Regency's first quarter 2018 earnings conference call. Joining me today are Hap Stein, our Chairman and CEO; Lisa Palmer, our President and CFO; Mac Chandler, EVP of Investments; Jim Thompson, EVP of Operations; Mike Mas, Managing Director of Finance; and Chris Leavitt, SVP and Treasurer.

I would like to begin by stating that we may discuss forward-looking statements on this call. Such statements involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to our filings with the SEC, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.

On today's call, we will also reference certain non-GAAP financial measures. We've provided a reconciliation of these measures to their comparable GAAP measures in our earnings release and financial supplement, which can be found on our Investor Relations website.

Before turning the call over to Hap, I would like to highlight two additions to our supplemental. First, the enhanced disclosure of leasing capitals on page 19. And second, an added page that outlines the components of NAV on page 30. In addition, we have added a section to our Investor Relations website for fixed income investors that features a fixed income quarterly supplemental. We hope that you find these enhancements valuable.

Hap?

Executive
Martin Stein

Thanks, Laura. Good morning, everyone. The constant change in the retail business is nothing new. The imbalance and divergence between driving, surviving and losing retailers continues to accelerate. While the heightened store closures of retailers that suffered from a combination of weak merchandising, poor service and overleveraged balance sheets are getting a lot of well-deserved publicity, what's not getting the appropriate amount of attention is the success of many retailers.

All of the evidence clearly demonstrates that physical stores will remain a critical component for successful operators. This includes digital retailers that are investing heavily in bricks and mortar and expanding that platform as evidenced by Amazon's purchase of Whole Foods last year and its recently announced partnership with Best Buy.

Winning retailers are continuing to report strong results, offering their customers compelling value, service and experience, investing in technology and, yes, expanding into new brick-and-mortar locations. It's rarely reported that last year, there were roughly 4,000 more store openings than closings across almost every category except for department stores. Publix opened over 40 new stores and redeveloped another 132 last year. This year, TJX plans to open more than 170 locations. Ulta, 100 stores, and Starbucks, over 900. And these are just a few examples.

Although disruption and change have forever characterized the world