Regency Centers - Words for the Wise

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Words for the Wise NAME

ABBR.

DESCRIPTION

Anchor Tenant

Any Tenant occupying at least 10,000 square feet at a shopping center.

Base Rent

BR

The minimum monthly rent that a tenant is obligated to pay under a Lease. Base Rent is most often quoted as an annual dollar amount per square foot based on the square footage that a Tenant occupies at the center.

Basic Info REIT

BR

A file maintained by the Lease Administration team that includes pertinent Lease and Tenant information for every active Lease in Regency’s portfolio. The file is updated monthly.

BOD

An elected group of individuals that represents our shareholders and serve as trusted advisors to our company. Regency’s Executive Committee regularly consults with and reports company information to the BOD.

Capital Allocation Committee

CAC

The Regency committee that determines the most efficient and effective use of Regency’s capital. The committee reviews and approves investment opportunities including potential acquisitions, groundup developments and redevelopments.

Capitalization Rate

CAP RATE

The expected rate of return at a specific point in time based on a property’s forecasted 12 months of NOI and an Estimated Property Value.

Code of Business Conduct and Ethics

CODE

The set of principles that guides us, our employees and our independent contractors in all business dealings.

CAM

The work performed by the Landlord to operate and maintain the common area of a property (e.g., parking lot sweeping, external lighting, security, landscaping, etc.). These expenses may be reimbursable or nonreimbursable by the Tenants at a center.

CAGR

The rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits are reinvested at the end of each year of the investment’s lifespan.

Board of Directors

Common Area Maintenance

Compound Annual Growth Rate (CAGR)


Words for the Wise NAME

Core Operating Earnings

ABBR.

COE

DESCRIPTION A performance measure used by Regency that is most reflective of the core operating performance of our portfolio. COE excludes certain non-cash and noncomparable items that are included in Nareit FFO such as transaction related income/expenses, gains/losses from the early extinguishment of debt, and non-cash components of earnings from above/below market rent amortization or mark-to-market debt adjustments.

Dark Tenant

A space in a shopping center that is currently leased to a Tenant, but that Tenant is no longer physically occupying that space.

Downtime

The amount of time lapsed (expressed in number of months) between the date a Tenant that last occupied a space moved out and the date a new Tenant commences paying rent in that space.

DNA

Regency’s asset grading system. Each property is graded on demographic and shopping center characteristics and given a corresponding score and rank of Premier, High Quality, Commodity or Lower Quality.

Development in Process

An owned property with new construction that is currently in process.

Earnings Before Interest, Taxes, Depreciation & Amortization

EBITDA

A metric used to evaluate a company’s operating performance .

Earnings Guidance

Estimates provided to shareholders by public companies on the financial results they expect to achieve in the upcoming quarter or fiscal year.

Estimated Property Value

The current value of a property if it were to be sold/acquired in fair market conditions.

Executive Committee

EC

A Regency committee comprised of the President & Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operating Officer (COO).

Final Investment Memorandum

FIM

A document containing relevant project information that is published once an approved investment has been either (i) purchased (acquisitions) or (ii) construction has commenced (re/developments).

FreshLook

A Regency philosophy that aims to create desirable shopping center locations and gathering areas with best-in-class retailers representative of the communities we serve. FreshLook is made up of three pillars: Merchandising, Placemaking and Connecting.


Words for the Wise NAME

ABBR.

Generally Accepted Accounting Principle

GAAP

Gross Leasable Area

GLA

DESCRIPTION A set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices. The square footage that is available to be leased.

A Lease of the land only; the physical structures on the land are owned and maintained by the Tenant

Ground Lease

Internal Rate of Return

IRR

The projected annual rate of return of an investment over a specific period of time.

International Council of Shopping Centers

ICSC

The premier global trade association of the shopping center industry.

Investment Committee

JD Edwards

IC

JDE

A subcommittee of Regency’s Board of Directors. This committee of BOD members reviews and approves all investments that exceed the Capital Allocation Committee’s approval authority. Approval of the full Board of Directors is required for investments that are outside of the Investment Committee’s approval authority. The primary accounting software used by Regency.

Joint Venture

JV

A partnership with another entity that is commonly used in real estate matters where two or more companies co-invest capital to undertake development or acquire an operating property. (A Regency JV is classified as an Unconsolidated JV if Regency’s ownership share is 50%. A Regency JV is classified as a Consolidated JV if Regency’s ownership share is >50%.).

Landlord

LL

The owner of a property that leases space to a Tenant; also referred to as the lessor.

Lease

A legal document agreement between the Landlord and Tenant that stipulates the payment and conditions under which the Tenant may possess a designated premises for a specified period of time.

Market Rent

The current fair rental value of a given space on the open market.


Words for the Wise NAME

ABBR.

DESCRIPTION

Mixed-Use Development

A blend of multiple property type uses in a single development (e.g., retail, office, residential, hotel, etc.)

Nareit Funds From Operations

NAREIT FFO

A commonly used measure of REIT performance which Nareit defines as net income, computed in accordance with GAAP, excluding gains on sales and impairments of real estate, net of tax, plus depreciation and amortization, and after adjustments for unconsolidated Joint Ventures.

National Associate of Real Estate Investment Trusts

NAREIT

A professional organization that represents REITs and other real estate companies with an interest in US real estate.

NAV

Represents the net value of an entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities.

Net Operating Income

NOI

Equals the sum of Base Rent, Percentage Rent, recoveries from tenants (NNN reimbursements), other lease income, and other property income, less Operating Expenses, real estate taxes, ground rent, and uncollectible lease income. NOI excludes Straight-Line Rent income and expense, above and below market rent and ground rent amortization, and other fees. (NOI = Operating Revenues – Operating Expenses)

Not a Part

NAP

A contiguous portion of a Regency shopping center that Regency does not own (typically shown as an area outlined in white on a Regency site plan).

OC

A Regency committee consisting of the members of Executive Committee plus 1 national and 4 regional Managing Directors.

OC

An employee who, in addition to daily responsibilities, also supports new hire onboarding efforts and acts as a corporate liaison for their local office, department, or floor. Each field office and Jacksonville floor has a designated OC.

Net Asset Value

Operating Committee

Office Coordinator

Operating Expenses

Outparcel

OPEX

Expenses incurred from Regency’s primary business operation of owning and operating shopping centers. A piece of land that is typically separate from the shopping center (often situated on the perimeter of the property) and contains a building occupied by a Tenant or is vacant land held for sale.


Words for the Wise NAME

ABBR.

DESCRIPTION

Percent Leased

% LEASED

The percentage of the square footage of a shopping center that is under Lease agreement (has a Tenant); includes new Leases that have been signed, but may not yet be rent paying.

Percentage Rent

Rent paid to a Landlord based on a percentage of the Tenant’s sales at that specific location. Tenants may pay Percentage Rent in addition to Base Rent or in lieu of Base Rent. The calculation for Percentage Rent is governed by a Tenant’s Lease.

Quarterly Business Review

QBR

A quarterly meeting at which regional operations teams present quarterly financial results and other updates for their respective regions to Executive Committee.

REIT

A company that owns and operates income producing real estate. To qualify as a REIT, a company must have most of its assets and income tied to real estate investment and must distribute at least 90 percent of its taxable income to its shareholders annually.

Real Estate Investment Trust

An owned operating property identified for future or within process construction that is updating, repositioning, adding to, and/or remerchandising the shopping center.

Redevelopment

Rent Commencement Date

Rent Growth

Same Property Portfolio

RCD

A.K.A. RENT SPREAD

The date that the Tenant is obligated to begin paying rent to the Landlord. A metric used to measure the growth in Base Rent on a particular shopping center space from one Lease to the next. Rent Growth is generally presented as the percentage change in the new Base Rent as compared to the prior Base Rent. Properties that Regency has owned for at least one full calendar year and therefore have comparable operating results year over year. Properties excluded from this portfolio include acquisitions that have been owned less than one full calendar year, developments that have not been operating for a full calendar year, or properties that are actively pulled out of this portfolio due to specific circumstances (i.e. a natural disaster impacted the property or the property is undergoing a significant redevelopment).


Words for the Wise NAME

Same Property NOI Growth

ABBR.

DESCRIPTION

SPNOI GROWTH

This metric is measured year over year on properties within the Same Property Portfolio and provides a comparable measure of property performance by providing a growth percentage on the NOI of a consistent pool of properties. This growth metric is viewed as an important indicator of portfolio health.

Shop Tenant

Any tenant occupying less than 10,000 square feet at a shopping center.

Straight-Line Rent

The Generally Accepted Accounting Principle that requires Landlords to recognize rent on an even periodic basis over the term of the Lease. The Tenant is billed rent per its Lease and an accounting adjustment is booked to recognize the average rent, or Straight-Lined Rent, over the life of the Lease.

Tenant

Tenant Improvements

SLR

T

A person or entity that leases space from a Landlord; also referred to as the lessee.

TI

An amount paid to a Tenant or incurred by a Landlord to accommodate Tenant-specific needs to build out a space at a shopping center. TI is typically stated as a dollar amount per square foot.

Triple Net Lease

NNN

A lease agreement where the Tenant agrees to reimburse the Landlord for its pro rata share of Common Area Maintenance, real estate taxes and insurance expenses incurred at the property. These charges are in addition to any other fees that the Tenant is required to pay under the Lease agreement (Base Rent, Percentage Rent, etc.). The majority of Regency’s retail leases are NNN.

White Box

WB

An amount either paid to a Tenant or incurred by the Landlord in order to get a space to a baseline condition for a Tenant to occupy.


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