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(JACKSONVILLE, FL) - National retail developer Regency Centers Corp. has outflanked the global economic turndown by reporting higher funds from operations and net income in its third-quarter report to shareholders.

(Regency Centers Corp. executive team, seated, Bruce Johnson and Brian Smith. Standing, from left, Mark Harrigan, Jim Thompson, Martin "Hap" Stein Jr., Mary Lou Fiala, James Buis and John Delatour.)

Regency chairman and CEO Martin "Hap" Stein Jr. said funds from operations (FFO) for the third quarter was $85.0 million, or $1.21 per diluted share, compared to $67.8 million and $0.97 per diluted share for the same period in 2007.

Martin "Hap" Stein Jr.

For the nine months ended September 30, 2008, FFO was $214.4 million or $3.05 per diluted share, compared to $212.7 million or $3.04 per diluted share for the same period last year.


Net income for common stockholders for the quarter was $54.5 million, or $0.78 per diluted share, compared to $37.0 million and $0.53 per diluted share for the same period in 2007.


Net income for the nine months ended September 30, 2008, was $113.1 million or $1.61 per diluted share, compared to $133.4 million and $1.92 per diluted share for the third quarter of 2007.

On the development side, the company started two new projects, the 469,776-square-foot Murietta Marketplace in Murrieta, CA and Gateway 101, representing $98.0 million of estimated net costs after partner participation. The land for Murrietta Marketplace was purchased by Regency in 2007.

As of September 30, 2008, the Company had 48 projects under development for an estimated total net investment at completion of $1.1 billion and an expected return of 8.80% on net development costs after partner participation.

The in-process developments are 69% funded and 78% leased and committed, including tenant-owned GLA.

Stein said that for the three months ended September 30, 2008, Regency's results for wholly-owned properties plus its pro-rata share of co-investment partnerships were:

• Same store net operating income (NOI) growth: 2.3% (2.0% including 100% of co-investment partnerships)

• Rental rate growth on a cash basis: 13.8% (13.3% including 100% of co-investment partnerships)

• Leasing transactions: 441 new and renewal lease transactions for a total of 1.5 million square feet

For the nine months ended September 30, 2008, Regency's results for wholly-owned properties and its pro-rata share of co-investment partnerships were:

• Percent leased, operating properties only: 94.3% on a pro-rata basis (94.8% including 100% of co-investment partnerships)

• Same store net operating income (NOI) growth: 2.5% (2.6% including 100% of co-investment partnerships)

• Same store rental rate growth on a cash basis: 11.6% (11.6% including 100% of co-investment partnerships)

• Leasing transactions: 1,331 new and renewal lease transactions for a total of 4.5 million square feet