According to Ross Nussbaum, an analyst with Banc ofAmerica Securities, fee income was five cents per share aboveexpectations. The REIT says it expects to generateabout $10.5 million to $12.5 million in third-partymanagement fees in 2005.
In addition to the huge increase in management fees,Regency Centers also posted funds from operationsgrowth and rental growth as well. On a year over yearbasis, the REIT posted FFO of $200.9 million for 2004,an increase of nearly 7% compared to 2003's FFO of$181.8 million. Similarly, rent growth increase 10.1%in 2004, compared to 9.5% in 2003. During 2004, Regencycompleted 1,267 lease transactions for a total of morethan 3.8 million sf.
Regency Center's strong FFO growth and flexiblebalance sheet, which is burdened with just 41%leverage, has generated rumors that the REIT is closeto making a deal to acquire Washington Realty Trustand CalPERS' 97-property, $2.8-billion shopping centerportfolio.
Stein addressed the rumors by saying: "We've obviouslylooked at and have interest in the portfolio."However, he noted that there are several interestedparties evaluating the portfolio, but declined toanswer any specific questions about a possibleacquisition. Moreover, Stuart Halpert, chairman of WashingtonRealty Trust, told GlobeSt.com recently that the rumors werejust that.
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