Regency completed the acquisition of UBP on August 18, 2023, acquiring 74 properties representing 5.3 million square feet of GLA. The acquisition is expected to enhance Regency's portfolio of high-quality shopping centers.

Estimated Pro-rata project costs of current in process development and redevelopment projects totaled $468.1 million, compared to $300.9 million at the end of 2022. Projects completed in 2023 represented $87.4 million of estimated net project costs.

The company's strategy includes investing in high-quality shopping centers leased to market-leading grocers, category-leading anchors, specialty retailers, and restaurants in areas with above-average household incomes and population densities.

Regency executed 1,839 new and renewal leasing transactions representing 6.9 million Pro-rata SF with positive rent spreads of 10.0% during 2023. The average base rent of new leases signed during 2023 was $29.89 PSF, higher than expiring leases.

At December 31, 2023, the Pro-rata net debt-to-operating EBITDAre ratio on a trailing 12-month basis was 5.4x, compared to 5.0x at the end of 2022. The company continues to focus on cost-effective funding and managing debt maturities.

The Company employs a tiered structure of management and oversight for cybersecurity, characterized by distinct layers of responsibility and decision making, which includes operation staff, management, and senior management and board-level governance.

The Board of Governors of the Federal Reserve System raised its benchmark federal funds rate during 2022 and 2023, leading to numerous increases in interest rates. Higher interest rates may negatively impact consumer spending, tenant businesses, and the cost of borrowing.

The success of tenants is impacted by economic challenges such as inflation, labor shortages, supply chain constraints, and decreasing consumer confidence. Macroeconomic and geopolitical risks exacerbate market conditions, including the potential for a recession.

Disruption or instability in the banking and financial services industry could impair access to capital, delay access to deposits, or cause actual loss of funds. This could result in less favorable commercial financing terms or systemic limitations on access to credit and liquidity sources.

The company faces competition from other shopping center owners, grocery store chains that own shopping centers, and alternative shopping and delivery methods. Competitive advantages are driven by market areas, quality of shopping centers, demographics, tenant relationships, leadership team, and development capabilities.

The company's net income and cash flow may be adversely affected by the loss of revenues and incurrence of additional costs in the event a significant Anchor Tenant becomes bankrupt or insolvent, experiences a downturn in its business, shifts its capital allocation away from brick and mortar formats, etc.

Retailers are increasingly impacted by e-commerce and changes in customer buying habits, including shopping from home and the delivery or curbside pick-up of items ordered online. This shift may adversely impact the percent leased and rental rates, which would impact results of operations and cash flows.

Total operating expenses increased to $854.3 million in 2023 from $751.7 million in 2022. This increase was due to higher depreciation and amortization, property operating expense, real estate taxes, and general and administrative expenses.

The company is focused on managing costs and improving efficiency in its operations, as evidenced by its efforts to mitigate the impact of rising costs and supply chain constraints.

All of the company's properties are required to comply with the Americans with Disabilities Act (“ADA”), which generally requires that buildings be made accessible to people with disabilities. Compliance with ADA requirements may require removal of access barriers, and noncompliance may result in imposition of fines by the U.S. government or an award of damages to private litigants, or both.

Sensitive, proprietary, or confidential information of the Company, its tenants and employees, could be leaked, disclosed, or revealed as a result of or in connection with the use of generative AI technologies by our employees or vendors. Moreover, generative AI or machine learning models may create incomplete, inaccurate, or otherwise flawed outputs, some of which may appear correct.

Capital is being allocated towards acquisitions, development and redevelopment projects, and debt repayment. The success of the merger will depend, in part, on Regency's ability to realize the anticipated benefits from successfully combining its and Urstadt Biddle's businesses.

To qualify as a REIT, the Parent Company must, among other things, distribute to its stockholders each year at least 90% of its REIT taxable income (excluding any net capital gains). Because of these distribution requirements, the company may not be able to fund all future capital needs with income from operations.

Ownership of more than 7% by value of our outstanding capital stock is prohibited, with certain exceptions, by the Parent Company's articles of incorporation, for the purpose of maintaining its qualification as a REIT. This 7% limitation may discourage a change in control.

Corporate responsibility, including a focus on ESG practices that support and enhance the business, is a foundational strategy of Regency. Alignment of strategy and business sustainability is critical to the long-term success of the Company, shareholders, the environment, and the communities in which it operates.

The company continues to make progress towards its target to reduce GHG emissions and collaborate closely with tenants to minimize their operational environmental impact. Aligned with the Science Based Targets initiative (SBTi), the target aims to reduce absolute Scope 1 and 2 GHG emissions by 28% by 2030.

In 2023, the company continued implementing its comprehensive diversity, equity, and inclusion (“DEI”) strategy focused on promoting and advancing diversity across the organization. The goals of this strategy are to attract, recruit, and retain a diverse group of employees to grow, develop, and succeed.

Therefore, the company's performance and operating results are directly linked to the economic and market conditions occurring in the retail industry. We are subject to the risks that, upon expiration, leases for space in our properties are not renewed by existing tenants, vacant space is not leased to new tenants, and/or tenants demand modified lease terms, including costs for renovations or concessions.

A significant number of the company's properties are located in areas that are susceptible to earthquakes, tropical storms, hurricanes, tornadoes, wildfires, sea-level rise, and other natural disasters. Therefore, as a result of the geographic concentration of our properties, we face risks, including disruptions to our business and the businesses of our tenants and higher costs, such as uninsured property losses, higher insurance premiums, and potential additional regulatory requirements by government agencies in response to perceived risks.

The success of the company's business, and the businesses of our tenants, largely depends on consumer spending. While we currently own no shopping centers or other assets outside of the U.S. nor have meaningful direct international supply chain exposure, geopolitical challenges and their potential impact on the global macroeconomic environment could impact aspects of the U.S. economy and, therefore, consumer spending.