Hap Stein, chairman and CEO of Regency Centers Corp. (NYSE: REG), joined REIT.com for a CEO Spotlight video interview at REITWorld 2013: NAREIT’s Annual Convention for All Things REIT at the San Francisco Marriott Marquis.
Stein discussed Regency Centers’ development program, which has been a major story for the company this year.
“We feel that with development, which is core capability that Regency has, we can create high-quality shopping centers at very attractive returns on invested capital,” he said. “As a matter of fact, these shopping centers would be almost impossible to buy on the open market and a lot more expensive. A key part of our development strategy is using those capabilities on our existing shopping centers, enhancing the value of those through redevelopments.”
Stein also discussed Regency Centers’ involvement in the investment fund business. Earlier this year, a portfolio sale triggered the dissolution of one of the company’s funds. Stein said the fund’s investors wanted a liquidity event and viewed it as a good time to exit the fund. Stein said the company four investment partnerships remain “integral to Regency’s strategy.”
“It provides us with an alternative source of capital and enables us to have a profitable platform in key markets like Washington, D.C.,” he said.
Stein previewed the primary goals for Regency Centers in 2014.
“The primary goal for Regency Centers in 2014 is to continue to enhance our position as the best-in-class grocery-anchored shopping center company,” he said. We’re going to do that by sustaining growth in net operating income through our high-quality portfolio - that’s our holy grail, our number one focus. Second is utilizing those core capabilities of development to create value and great shopping centers. And thirdly, on a more opportunistic basis, continue to build a wonderful balance sheet that is going to be a balance sheet for all seasons.”