Regency Centers Corp. (REG), a leading operator and developer of grocery-anchored and community shopping centers across the U.S., recently completed the sale of $150 million senior unsecured notes.
The 10-year senior unsecured notes are scheduled to mature on Jun 15, 2020, with interest payable semiannually in June and December. The notes were priced at 99.1%. Regency Centers intends to utilize the proceeds from the offer to repay short-term debt and for other general corporate purposes.
Regency Centers seeks to own assets in high-income in-fill markets that are tenanted by market-dominant grocers, category-leading anchors, specialty retailers and restaurants. The average household income in the markets where the company has a significant presence is over $90,000, nearly 30% higher than the national average. As of Mar 31, 2010, Regency Centers owned 399 retail properties, including properties held in joint ventures, spanning 53.2 million square feet.
Regency Centers maintains a conservative capital structure and follows a self-funding capital strategy to fund its growth, which includes disposal of non-strategic assets and a continued focus on industry-leading co-investment partnership programs.
In addition, the company’s dominant anchor tenants are grocery stores, which are comparatively less affected during recession. Consequently, Regency Centers has a relatively steady source of revenue. Our long-term recommendation for the company is Neutral as we anticipate it to perform in line with the broader market.
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