May 01, 2018 • 11:00 am ET

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Presentation
Executive
Martin Stein

of retail, the importance of having stores conveniently located to neighborhoods and communities with substantial purchasing power will remain relevant. This is why through this accelerating retail evolution, Regency is well positioned because we provide one of the critical ingredients of what retailers need to be successful.

This is evident in the ongoing performance of our portfolio and Company. Year-to-date, same property NOI growth was 4%. Occupancy is nearly 96%. Regency's in-process developments and redevelopments continue to perform well. Four premier centers were acquired. We executed on our share repurchase program and successfully completed a 10-year bond offering and expanded our line of credit.

The ongoing cumulative impact of our capital recycling program enhances the quality of our portfolio through sales, value-add development, redevelopment and acquisitions, ensuring we own the must-have locations. Most importantly, especially in this environment, our talented team executes our plan while we preserve our conservative balance sheet.

We are confident that Regency's unequaled combination of strategic advantages will enable us to meet the challenges of the ever-changing retail environment and grow earnings and dividends by an average of 5% to 7%, which will approximate a 10% total shareholder return over the long term. Jim?

Executive
James Thompson

Thanks, Hap. Regency's pre-eminent portfolio continues to demonstrate impressive results despite challenges in the retail landscape. Even with decisions and rent commencements taking longer as retailers more aggressively negotiate terms and carefully evaluate impacts on existing locations, our high-quality portfolio is more than holding its own at nearly 96% leased. In addition, new rent growth was 15% for the quarter. We continue to have success executing annual rent bumps, setting the table for future same property NOI growth. Our annual rent increases on all leasing activities are averaging nearly 2%. This quarter, we did experience a sequential decline in percent leased in the same property portfolio. This decline was expected as a result of seasonal moveouts as well as strategic anchor releasing, enabling us to remerchandise our centers with top brands, including Whole Foods, HomeGoods and Ulta.

Moveouts still remain at very low levels. The impact from bankruptcy and retailer closures continues to be minimal. We had no Southeastern grocery locations on the closure list and our five locations, which are significantly below market, are expected to remain operating.

Turning to toys. As a reminder, we had five locations, which represent 30 bps in pro rata annual base rent. We have recaptured four of our five locations, One of which we were the winning bidder at auction and the fifth is awaiting final auction in early June. We have very solid backfill prospects that include HomeGoods, Nordstrom Rack and Burlington as well as Publix and Whole Foods. I'm very pleased with our ability to regain control of this real estate and the enhancements these remerchandising opportunities will offer our shopping centers going forward. Lisa?

Executive
Lisa Palmer

Thank you, Jim. Good morning, everyone. I'll start by providing an overview of this quarter's balance sheet and capital allocation updates and then turn to same property NOI