Regency Centers Corp. Reports Operating Results (10-Q)
Regency Centers Corp. has a market cap of $3.59 billion; its shares were traded at around $43.69 with a P/E ratio of 17.2 and P/S ratio of 7.3. The dividend yield of Regency Centers Corp. stocks is 4.1%.REG is in the portfolios of Chris Davis of Davis Selected Advisers, Pioneer Investments, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates.
Highlight of Business Operations: At September 30, 2010, we directly owned 215 shopping centers (the Consolidated Properties) located in 23 states representing 22.9 million square feet of gross leasable area (GLA). Our cost of these shopping centers and those under development is $4.0 billion before depreciation. Through co-investment partnerships, we own partial ownership interests in 184 shopping centers (the Unconsolidated Properties) located in 25 states and the District of Columbia representing 22.2 million square feet of GLA. Our investment in the partnerships that own the Unconsolidated Properties is $462.8 million. Certain portfolio information described below is presented (a) on a Combined Basis, which is a total of the Consolidated Properties and the Unconsolidated Properties, (b) for our Consolidated Properties only and (c) for the Unconsolidated Properties that we own through co-investment partnerships. We believe that presenting the information under these methods provides a more complete understanding of the properties that we wholly-own versus those that we indirectly own through entities we do not control, but for which we provide asset management, property management, leasing, investing, and financing services. The shopping center portfolio that we manage, on a Combined Basis, represents 399 shopping centers located in 28 states and the District of Columbia and contains 45.1 million square feet of GLA.
We strive to cost effectively and opportunistically strengthen our balance sheet, which should allow us to access various sources of capital to fund our future commitments. We endeavor to continue improving our key financial ratios and to maintain a high percentage of unencumbered assets: 82.9% of our consolidated real estate assets at September 30, 2010 are unencumbered. Such assets allow us to access the secured and unsecured debt markets and maintain significant availability on our $713.8 million line of credit commitment, which had an outstanding balance of $110.0 million at September 30, 2010. Our debt to asset ratio (before the effect of accumulated depreciation), including our pro-rata share of the debt and assets of joint ventures is 46.6% at September 30, 2010, and is higher than our ratio at December 31, 2009 of 45.9%; a result of increasing our ownership in the real estate joint venture with Global Retail Investors LLC (GRI) discussed further below. Our coverage ratio including our pro-rata share of our partnerships was 2.0 times at September 30, 2010 and December 31, 2009. We define our coverage ratio as EBITDA divided by the sum of the gross interest and scheduled mortgage principal paid to our lenders plus dividends paid to our preferred stockholders. We plan to grow EBITDA through growth in net operating income by returning the occupancy percentages in our shopping centers back to historic levels and by acquiring or developing shopping centers, which in combination with a conservative capital structure should favorably impact our coverage ratio on a long-term basis.
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