During the quarter, roughly $200 million worth of new developments were stabilized with net operating income yields of 11.5% and nine new developments and redevelopments totaling $90 million were started. The new starts are expected to have a net operating income yield of 10.1% at completion, Stein said.
Currently, Regency has $550 million worth of projects under development and expects the fourth quarter to be productive. "Our development pipeline has never been stronger," he contended, adding that the "shadow pipeline" is worth $1.4 billion with a yield of nearly 10%.
In an effort to focus more resources on building the pipeline, Regency recently promoted Brian Smith to chief investment officer. "We want to continue to grow our development program," Stein said, noting that the REIT's joint-venture initiatives will help take the program to the next level.
During the third quarter, the REIT's FFO increased to $54.2 million, or 80 cents per diluted share, compared to $51.3 million and 82 cents per diluted share for the same period last year.
Net income for the quarter was $27.6 million, or 41 cents per diluted share, compared to $35.6 million and 58 cents per diluted share for the same period last year.
The REIT, which owns 389 retail properties, posted same-store net operating income growth of 3.2% for the first nine months of the year. Moreover, the same-store rental-rate growth was 10.4%.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
