Regency Centers Corporation

Strong Q3 operating performance + portfolio health (investor “good”): - Same-property NOI: +5.1% in Q3; +4.4% YTD (a key driver of earnings growth). - Leasing/occupancy momentum: 97% leased (historic high) and 94.6% shop occupancy (record); commenced occupancy 95.1% (historic high), reflecting active conversion of SNO (scheduled non-occupied) space. - Rent growth: Cash rent spreads +12% in the quarter (~15% on renewals); GAAP rent spreads +22%. - Tenant health indicators: collections strong; receivables below historic levels; bankruptcy impacts minimal; foot traffic/tenant sales “solid.”

Guidance raised for 2026; early read-through for 2027 (investor “good”): - Company raised 2026 guidance again: - Same-property NOI growth midpoint now ~4.75%+. - Core operating EPS midpoint raised, implying ~+5.7% full-year growth at the midpoint. - 2027 early indication: expects same-property NOI growth in the mid-3% range (not another 4–5% year), driven by moderation of occupancy gains plus some expense-bad-debt normalization assumptions. - Guidance approach: will hold detailed 4Q 2026 guidance for the next quarter call; more detail on 2027 in February.

Key puts-and-takes for 2027 deceleration (investor “good + watch-outs”): - Occupancy benefits still positive but moderating: they expect continued maintenance of very high occupancy, but incremental gains slow as the portfolio approaches historical highs. (Management cited prior improvements in commenced occupancy and expects smaller incremental improvements going forward.) - Expense recovery assumed elevated: expects ~87–88% expense recovery, consistent with historical highs. - Bad debt normalization is the main downside: currently very low bad debt expense (noted around ~25 bps this year, with Q3 particularly low); management plans for a return toward historical average (~~50 bps)—incorporated into the ~3.5% planning area embedded in the mid-3% outlook. - No stated tenant distress trend: they emphasized they aren’t seeing evidence of tenant health concerns—this is positioned as a prudential normalization.