Meanwhile, another Florida retail REIT, North Miami Beach-based Equity One Inc., posted FFO of $57.9 million for the first quarter, up 77% from $32.7 million a year earlier. The latest results include those of DIM Vastgoed NV, a Dutch investment company that owns 21 shopping centers in the Southeast in which Equity One acquired a controlling interest Jan. 14.
Regency's first-quarter net income was $19.6 million, down 27% from $26.7 million over the past year. It also posted a 2% decrease in same-store net operating income along with a 1% increase in same-space rental rate growth.
During the quarter, Regency sold two operating properties from its co-investment partnerships and one recently completed, wholly owned development for $36.5 million with a weighted average cap rate of 7.6%. It also sold four outparcels, grossing $3.2 million.
No new developments were started by Regency during the first quarter, though Regency has 47 projects under way for an estimated total net investment at completion of $974.5 million and an expected return of 8% on net development costs after partner participation. The in-process developments are 79% funded and 86% leased and committed.
Equity One's net income for the first quarter more than doubled over the year, to $43.8 million from $20.9 million. Occupancy for the company's portfolio, excluding DIM, declined slightly to 91.5%, while same-property net operating income declined 2.7% over the year because of lower occupancy and rent plus higher bad debt expense.
The company reported approximately $35.2 million of active development and $8.8 million of redevelopment projects under way as of March 31. The estimated remaining cost to complete these projects is approximately $5.5 million.
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