Investments in Real Estate Partnerships

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

The Company's investments in real estate partnerships include the following:


	December 31, 2024
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership		Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40%		66	$	136,972		1,455,471		38,729		91,447
Columbia Regency Partners II, LLC (Columbia II) (1)	20%		22		63,024		623,655		3,938		20,121
Columbia Village District, LLC	30%		1		6,434		99,236		2,220		7,453
Individual Investors
Ballard Blocks	50%		2		59,596		115,784		1,028		2,380
Town & Country Center	35%		1		44,715		259,218		1,810		5,235
Others (2)	12% - 83%		11		88,303		289,793		2,569		10,027
Total investments in real estate partnerships			103	$	399,044		2,843,157		50,294		136,663

(1)

Effective September 1, 2024, Columbia Regency Retail Partners, LLC (Columbia I) merged with and into Columbia II with Columbia II being the surviving entity in the merger.

(2)

Effective January 1, 2025, we acquired our partner’s 33.3% share in a single property partnership for a total purchase price of $10.3 million. Following this acquisition, the Company now owns 100% of this property, and has been consolidated into the Company’s financial statements.


	December 31, 2023
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership		Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40%		66	$	144,371		1,475,611		35,901		84,224
Columbia Regency Retail Partners, LLC (Columbia I)	20%		7		7,045		139,224		1,630		8,559
Columbia Regency Partners II, LLC (Columbia II)	20%		14		42,994		424,672		1,743		8,769
Columbia Village District, LLC	30%		1		6,123		97,522		2,199		7,383
Individual Investors
Ballard Blocks	50%		2		62,140		120,379		1,486		3,297
Town & Country Center	35%		1		42,074		224,579		1,075		3,136
Others	12% - 67%		10		65,858		208,006		6,507		19,770
Total investments in real estate partnerships			101	$	370,605		2,689,993		50,541		135,138

The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows:


	December 31,
(in thousands)	2024		2023
Investments in real estate, net	$	2,569,765		2,432,859
Acquired lease intangible assets, net		25,164		16,723
Other assets		248,228		240,411
Total assets	$	2,843,157		2,689,993
Notes payable	$	1,564,551		1,499,702
Acquired lease intangible liabilities, net		19,045		15,112
Other liabilities		92,911		80,457
Capital - Regency		444,354		418,205
Capital - Third parties		722,296		676,517
Total liabilities and capital	$	2,843,157		2,689,993

The following table reconciles the Company's capital recorded by the unconsolidated real estate investment partnerships to the Company's investments in real estate partnerships reported in the accompanying Consolidated Balance Sheet:


	December 31,
(in thousands)	2024			2023
Capital - Regency	$	444,354			418,205
Basis difference		(45,310	)		(47,600	)
Investments in real estate partnerships	$	399,044			370,605

The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows:


	Year ended December 31,
(in thousands)	2024			2023			2022
Total revenues	$	420,281			390,843			378,096
Operating expenses:
Depreciation and amortization		96,239			88,974			86,193
Property operating expense		68,289			65,509			61,224
Real estate taxes		51,986			47,529			42,010
General and administrative		5,201			5,008			5,615
Other operating expenses		5,740			3,119			3,851
Total operating expenses	$	227,455			210,139			198,893
Other expense (income):
Interest expense, net		58,451			56,706			54,874
Gain on sale of real estate		(2,288	)		(11,140	)		(49,424	)
Loss on early extinguishment of debt		—			—			587
Total other expense (income)		56,163			45,566			6,037
Net income of the Partnerships	$	136,663			135,138			173,166
The Company's share of net income of the Partnerships	$	50,294			50,541			59,824

Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our investments in real estate partnerships for the periods set forth below:

        (in thousands)

        Year ended December 31, 2024

        Date
Purchased

        Property
Name

        City/State

        Property
Type

        Real Estate Partner

        Regency's Ownership

        Purchase Price (1)

        Debt Assumed, Net of 
Premiums (1)

        Intangible Assets (1)

        Intangible Liabilities (1)

8/30/2024

East Greenwich Square

East Greenwich, RI

Operating

Other

70%

46,650

—

5,127

1,877

10/17/2024

University Commons - Austin

Round Rock, TX

Operating

Columbia II

20%

68,751

—

6,560

5,120

Total property acquisitions

115,401

—

11,687

6,997

(1)

Amounts reflected for purchase price and allocation are reflected at 100%.

        (in thousands)

        Year ended December 31, 2023

        Date
Purchased

        Property
Name

        City/State

        Property
Type

        Real Estate Partner

        Regency's Ownership

        Purchase Price (1)

        Debt Assumed, Net of 
Premiums (1)

        Intangible Assets (1)

        Intangible Liabilities (1)

9/19/2023

Old Town Square

Chicago, IL

Operating

Other

20%

27,510

—

3,625

503

Total property acquisitions

27,510

—

3,625

503

(1)

Amounts reflected for purchase price and allocation are reflected at 100%.

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our investments in real estate partnerships:


	Year ended December 31,
(in thousands)	2024		2023		2022
Proceeds from sale of real estate investments	$	2,256		30,659		116,377
Gain on sale of real estate	$	2,288		11,140		49,424
The Company's share of gain on sale of real estate	$	907		3,161		12,748
Number of operating properties sold		—		1		4
Number of land out-parcels sold		1		—		—

Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2024, were as follows:


(in thousands) Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities			Unsecured Maturities		Total			Regency's Pro-Rata Share
2025	$	6,727		147,512			—		154,239			49,031
2026		7,393		272,963			35,800		316,156			108,765
2027		7,576		32,800			—		40,376			13,669
2028		4,267		246,605			—		250,872			92,027
2029		2,841		93,500			—		96,341			34,967
Beyond 5 Years		3,847		711,324			—		715,171			280,111
Net unamortized loan costs, debt premium / (discount)		—		(8,603	)		—		(8,603	)		(3,200	)
Total notes payable	$	32,651		1,496,101			35,800		1,564,552			575,370

These fixed and variable rate notes payable are all non-recourse to the partnerships, and mature through 2034, with 93.3% having a weighted average fixed interest rate of 3.9%. The remaining notes payable float with SOFR and had a weighted average variable interest rate of 6.8% at December 31, 2024.

As notes payable mature, they will be repaid from proceeds from new borrowings and/or partner capital contributions. Refinancing debt at maturity in the current interest rate environment could result in higher interest expense in future periods if rates remain elevated. The Company is obligated to contribute its Pro-rata share to fund maturities if the loans are not refinanced, and it has the capacity to do so from existing cash balances, availability on its line of credit, and operating cash flows. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a real estate partner was unable to fund its share of the capital requirements of the real estate partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call which would be secured by the partner's membership interest.

Management fee income

In addition to earning our share of net income or loss in each of these real estate partnerships, we receive fees as discussed in Note 1, as follows:


	Year ended December 31,
(in thousands)	2024		2023		2022
Asset management, property management, leasing, and investment and financing services	$	27,874		26,954		25,851