New Accounting Rules Affect Regency

JACKSONVILLE, FL-New rules issued in July by the Financial Accounting Standards Board and clarification of the definition of funds from operations by the National Association of Real Estate Investment Trusts will impact Regency Centers Corp.’s calculation of net income and FFO in the fourth quarter, Martin E. Stein Jr., the REIT’s chairman and CEO, says in a prepared statement.

But the recalculations aren’t affecting the company’s general financial health, Stein says. “These accounting pronouncements do not impact the solid fundamentals of Regency’s business and have no effect on the strategic direction or management’s future outlook for the company,” the CEO says.

Following FASB’s newly issued Rule 150, Regency will reduce net income by about $9.5 million. “In accordance with NAREIT’s definition of FFO and the treatment of cumulative effects of accounting changes, the initial impact of Statement 150 will be added back to net income to calculate FFO for the third quarter,” according to the Regency statement.