Martin “Hap” Stein, chairman and CEO of Regency Centers Corp. (NYSE: REG), joined REIT.com for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Regency Centers has seen year-over-year increases in both funds from operations (FFO) and same-store net operating income (SSNOI). When asked to explain the company’s performance, Stein pointed to an occupancy rate of roughly 95 percent in the company’s portfolio and double-digit rent growth for two quarters in a row in 2014.
Looking at the company’s development program, Regency currently has seven projects in its development pipeline. The projects include two shopping centers started this year in Washington and Dallas that are anchored by Whole Foods grocery stores. Regency Centers has already leased 90 percent of the space that will be available when the shopping centers open.
“Development is a core capability that Regency has to build great shopping centers at compelling spreads to where you buy those shopping centers,” Stein said. That helps drive earnings growth and the intrinsic value of Regency’s portfolio, according to Stein. He said the company is aiming to commit upwards of $200 million or more per year to development, including redevelopment projects.
In terms of areas of focus, Stein said Regency Centers will continue to concentrate on growing net operating income, developing assets, maintaining a “rock-solid” balance sheet and keeping the company’s staff members “fully engaged and motivated.”