Wednesday, Regency Centers Corporation (REG), an owner, operator and developer of community and neighborhood shopping centers, reported an increase in fourth quarter profit, significantly helped by a gain on the sale of operating properties. However, the company reported a decline in funds from operations per share, hurt by an increase in weighted average shares outstanding.
The Jacksonville, Florida-headquartered real estate investment trust's net income attributable to common stockholders surged to $25.3 million or $0.31 per share from $14.0 million or $0.20 per share in the same period last year.
Funds from Operations or FFO rose to $58 million from $50.8 million in the corresponding period last year. Yet, Funds From Operations per share declined to $0.71 from $0.72 per share in the year-ago quarter as share count increased to 81.1 million from 70.2 million in the year-ago period. On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.
Recurring Funds From Operations, which excludes transaction profits and transaction fees and other expenses, declined to $50.9 million, or $0.63 per share, from $63.6 million or $0.90 per share in the same period last year. The company attributed the decline to lower net operating income, higher interest expense and an increase in weighted average shares.
Regency said gain on sale of operating properties, including Joint ventures, surged to $20.5 million from $2.7 million a year earlier.
For the three month period, same property net operating income from wholly owned properties plus its pro-rata share of co-investment partnerships declined 7.4%, while same space rental rate decline, on a cash basis, was 0.4%. The company said it entered into 465 new and renewal lease transactions for a total of 1.5 million square feet.
During the quarter, the company sold three completed development properties at a gross sales price of $37.9 million and a weighted average cap rate of 9.59%. Regency also sold six out parcels at a gross sales price of $17.8 million.
For the twelve-month period, Recurring FFO declined to $208.0 million or $2.68 per share from $240.4 million or $3.42 per share last year. FFO slid to $85.8 million or $1.10 per share, from $263.8 million or $3.75 per share last year. Street analysts expected the company to earn $1.04 per share for 2009. Net loss was $56.4 million or $0.74 per share, compared to net income of $116.5 million and $1.66 per share in the previous year.
Regency said, on February 2, its Board declared a quarterly cash dividend of $0.4625 per share, payable on March 3 to shareholders of record on February 17. The Board also declared a quarterly cash dividend of $0.46563 per share of Series 3 Preferred stock; a quarterly cash dividend of $0.45313 per share of Series 4 Preferred stock; and a quarterly cash dividend of $0.41875 on the Series 5 Preferred stock.
REG declined $0.64 or 1.87% and closed Wednesday's regular trading session at $33.67. After hours, REG declined further $1.67 or 4.96% and traded at $32.00. The stock has traded between $20.72 and $41.71 during the past year.
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