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Presentation

Operator: Greetings, and welcome to the Regency Centers Corporation First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Christy McElroy. Please go ahead.

Christy McElroy: Good morning, and welcome to Regency Centers Corporation’s First Quarter 2026 Earnings Conference Call. Joining me today are Lisa Palmer, President and Chief Executive Officer; Michael J. Mas, Chief Financial Officer; Alan Roth, East Region President and Chief Operating Officer; and Nicholas Andrew Wibbenmeyer, East West Region President and Chief Investment Officer. As a reminder, today’s discussion may contain forward-looking statements about the company’s views of future business and financial performance, including forward earnings guidance and future market conditions. These are based on the current beliefs and expectations of management and are subject to various risks and uncertainties. It is possible that actual results may differ materially from those suggested by these forward-looking statements we may make.

Factors and risks that could cause actual results to differ materially from these statements may be included in our presentation today and are described in more detail in our filings with the SEC, specifically in our most recent Form 10-Ks and 10-Q filings. In our discussion today, we will also reference certain non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter’s earnings materials, which are posted on our Investor Relations website. Please note that we have also posted a presentation on our website with additional information, including disclosures related to forward earnings guidance. Our caution on forward-looking statements also applies to these presentation materials. As a reminder, given the number of participants we have on the call today, we respectfully ask that you limit your questions to one.

Please rejoin the queue if you have additional follow-up questions. Lisa?

Lisa Palmer: Thank you, Christy. Good morning, everyone, and thank you for joining us. We are off to an outstanding start to the year, building on the positive momentum from last year. In the first quarter, we delivered strong same-property NOI and earnings growth, driven by robust operating fundamentals and accretive capital allocation. Our results demonstrate the durability of our portfolio, the strength of our platform, and the execution of our team. Our tenants are performing well in our centers, supported by the resiliency and spending power of consumers in our strong suburban trade areas, as well as our focus on essential retail anchored by top-performing grocers. It is this combination of high-quality trade areas and our concentration of necessity-based, value-oriented, convenience retail that positions our portfolio to perform consistently even in uncertain macroeconomic environments.

We also continue to see significant momentum across our investment platform. Our track record of success in ground-up development is one of Regency’s greatest differentiators and is a key driver of our external growth strategy. In an environment with very little new retail supply, our ability to source, execute, and deliver high-quality developments across the country really sets Regency apart. Our project deliveries will translate into meaningful NOI contribution in 2026 and beyond, boosting total NOI growth and driving earnings and NAV accretion. As we look ahead, I am really energized by our strong start to the year and by the opportunities in front of us. I want to reiterate just how distinct Regency’s growth story is. Our portfolio of high-quality, grocery-anchored neighborhood and community centers located in some of the strongest trade areas in the country has consistently delivered durable cash flows across economic cycles.

Our leading national development platform is creating meaningful value for shareholders at a time when few others can compete with our relationships and proven results. Our strong balance sheet gives us flexibility and the capacity to be opportunistic with low cost and substantial access to capital. And most importantly, we have the best team in the business. With this foundation, Regency is exceptionally well positioned to continue delivering strong and sustainable growth for our shareholders. Alan?

Alan Roth: Thank you, Lisa, and good morning, everyone. We delivered another excellent quarter to start the year, following what was a record-breaking year for us in 2025. The fundamentals across our portfolio remain strong, and I could not be more proud of our team’s execution. Tenant demand continues to be robust across nearly all categories and regions, spanning both anchor and shop space. Grocers, restaurants, health and wellness concepts, and off-price retailers are among the most active, but the breadth of engagement across our portfolio is really impressive. The availability of high-quality space is increasingly scarce, both at our centers and in our trade areas, and that dynamic is working in our favor. Our same-property percent leased, which is approaching 97%, was up 10 basis points over the fourth quarter.

A sequential uptick in Q1 is seasonally unusual, and it really speaks to the strength of the demand we are experiencing and to the durability of our occupancy. Leased occupancy is now close to our prior peak, though I am confident further upside is achievable, particularly in anchor leasing, where we continue to have meaningful engagement with leading national retailers. What is especially encouraging is the nature of our activity today. We continue having success proactively leasing occupied space, upgrading merchandising, bringing in new and vibrant concepts, and replacing outdated or underperforming uses. Our same-property commenced rate also increased 20 basis points in the quarter, as we made meaningful progress commencing tenants within our SNO pipeline.

The pipeline continues to be a significant tailwind to future NOI growth, representing approximately $42 million of incremental base rent. We achieved robust cash re-leasing spreads in the first quarter, and GAAP spreads were near a record high. These results reflect our ability to achieve compelling mark-to-market rent increases, in addition to embedding meaningful contractual rent steps into our leases. That success is the basis for our ability to drive strong, sustainable rent growth within our portfolio over the long term. Same-property NOI growth of 4.4% in the first quarter was reflective of these strong operating trends, along with the substantial progress we have made raising occupancy and completing redevelopment projects. In closing, the trends we are seeing in leasing activity, tenant sales, collections, and foot traffic remain very favorable.

We are positioned for success and continued growth ahead, and I am excited about what our team will accomplish. With that, I will hand it over to Nick.

Nicholas Andrew Wibbenmeyer: Thank you, Alan, and good morning, everyone. We continue to have significant momentum within our investments platform, evident in an active first quarter of accretive investment activity. Our team is successfully executing on and delivering projects within our in-process pipeline, and we continue to source attractive new ground-up projects. During the first quarter, we completed $42 million of projects, including Oakley Shops at Laurel Fields, a Safeway-anchored neighborhood center we developed ground up in the Bay Area. Our team did an exceptional job bringing this project to fruition in less than 18 months, one of the quickest ground-up deliveries that I can recall. We also started another $73 million of new projects this quarter, including Crystal Brook Corner, a redevelopment on Long Island.

We acquired this underutilized piece of real estate and are transforming it into a Whole Foods-anchored neighborhood center. This project demonstrates our ability to look at acquisition opportunities through a differentiated lens, leveraging Regency’s platform, our relationships, and our development expertise to drive near-term value creation. Our in-process pipeline now exceeds $600 million with exceptional leasing momentum and blended returns above 9%. The team has been executing these projects on time and on budget, which I want to emphasize is a direct result of the substantial risk mitigation we undertake before we break ground. Within our ground-up development platform, we continue to see remarkable results. An example includes Ellis Village in Northern California, which we started in 2025.

The project is already 100% leased, with an anticipated anchor opening later this year. Our Sunbed and Stonebridge ground-up projects in the Northeast each celebrated Whole Foods openings during the first quarter, both with strong community reception. As Lisa discussed, ground-up development remains a substantial differentiator for Regency, and our brand as a developer has never been stronger. We are the only national developer of high-quality grocery-anchored shopping centers at scale in an environment of otherwise limited new supply. Our teams are actively sourcing new projects, and we continue to have visibility to a potential of more than $1 billion of project starts over the next three years. Leading grocers across the country remain engaged and eager to expand with us, and shop tenants are excited to be part of our projects.

Landowners trust us to deliver given our proven track record and the strength of our grocer relationships, particularly among master plan developers, where our retail projects are providing a significant amenity and value to their communities. This positive momentum continues to enhance our success, strategically positioning us to capitalize on additional opportunities. We are creating real value for shareholders at meaningful spreads to market cap rates, and we are excited about the opportunities for continued growth in our investments platform. Mike?

Michael J. Mas: Thank you, Nick. Good morning, everyone. Regency delivered another strong quarter to start the year, a testament to our team’s continued execution on our strategy and the favorable conditions of our markets. Same-property NOI growth was 4.4% in the first quarter, including 3.5% of base rent growth. Recall last quarter, we discussed that Q1 would be above and that Q2 would fall below our full-year guidance range, with this quarter driven by the uneven nature of other income, and next quarter driven by a tough comp relative to last year’s favorable expense reconciliation performance. Most importantly, base rent continues to grow at very healthy levels, benefiting from increasing rents commencing in our SNO pipeline and delivering on our accretive redevelopment projects.

Looking through the variables in first and second quarters, we are maintaining guidance for full-year same-property NOI growth of 3.5% to 3.75%, as well as for growth in core operating earnings and NAREIT FFO per share, each at 4.5% at the midpoint. We continue to expect total NOI growth north of 6%, reflecting meaningful contributions from ground-up development deliveries and the substantial acquisitions we completed last year. We did make a few minor assumption changes within our outlook. We modestly increased development and redevelopment spend as a result of increased starts expectations, as well as our acquisitions guidance to now include known transactions. These changes reflect continued strong investment activity and support positive momentum in external growth and value creation.

The strength of our balance sheet is an important element of this ability to accretively allocate capital. We have worked strategically over time to position the company with low leverage, strong liquidity, and dependable access to attractively priced capital. In February, we issued $450 million of seven-year unsecured notes at a 4.5% coupon, achieving the lowest credit spread in Regency’s history. This execution represents one of the most favorable costs of debt in the REIT sector and is a direct reflection of our A credit ratings from both Moody’s and S&P. Leverage remains near the low end of our target range of 5 to 5.5 times. We have nearly full availability on our credit facility, and our strong free cash flow generation allows us to fund our development pipeline with no current need to raise equity or sell properties.

In closing, we are gratified by another strong quarter and look forward to continued success as our teams execute our differentiated strategy through the balance of the year. With that, we welcome your questions.

Lisa Palmer: Thank you.

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Operator: We will now be conducting a question-and-answer session. Please limit yourself to one question. It may be necessary to pick up your handset before pressing the star key. Our first question will come from Cooper Clark with Wells Fargo.

Operator: Super. Cooper, your line is open. Okay.

Operator: With that, moving on to Michael Goldsmith with UBS.

Michael Goldsmith: Good morning. Thanks a lot for taking my question. Mike, can you walk us through the non-cash revenue component? You guided to $51 million for the year, so pro-rated that would have been—if you just split it to $51 million—probably would have been about $12.75 million for the first quarter. You came in at like $9 million-ish. Can you walk through what drives the difference there from a pro-rated number to the lumpiness that is natural with the non-cash revenues and how you expect the rest of the year to play out? Thanks.

Lisa Palmer: Michael, before you finish, for some reason you are breaking up. If you could start from the beginning, that would be great.

Michael Goldsmith: Hi, Lisa. Sorry about that. Is this any better?

Lisa Palmer: Yes. Much better. Thanks, Michael.

Michael Goldsmith: Great. So I wanted to walk through the non-cash revenue component. You guided to $51 million for the year, so pro-rated that would have been about $12.75 million for the first quarter. You came in at about $9 million. Can you walk through what drives the difference there and how you expect the rest of the year to play out?

Michael J. Mas: Thank you, Michael. As you said, non-cash can be uneven by itself, and straight-lining of our guidance range would have led to a little bit of a higher expectation for Q1. We had a couple of things going on. One, we did make an adjustment to a single-tenant, one lease where we moved that lease to cash basis, so that results in a reserve on straight-line rent that is booked in the quarter. That is probably the largest component driving that variance today. We have not taken our eyesight off full-year guidance at $51 million. I would also say last year, just as a reminder, you can get fits and starts with tenant terminations and the acceleration of below-market rents. That can also be a driver of changes to the cadence of non-cash.

One more quick commercial for why we use core operating earnings to really tell the story of how we grow cash flow at Regency: we eliminate non-cash, we eliminate nonrecurring. I think that core operating earnings number is really valuable as we think about the earnings potential of the company.

Michael Goldsmith: Thanks, very helpful. Thank you.

Michael J. Mas: Thank you.

Operator: Our next question comes from Samir Upadhyay Khanal with Bank of America.

Samir Upadhyay Khanal: Good morning, everybody. Maybe to start, high level. Grocers are stable. Can you provide color on small shop tenant health given the macro and higher prices? Talk about occupancy costs. Have you seen any differences among categories among the shop tenants—discretionary retail or restaurants—given higher prices and the macro? Thanks.

Lisa Palmer: Thanks, Samir. I will start and then I will have Alan color it up specific to our portfolio. As you have heard us say many, many times, we are really well positioned to perform throughout economic cycles because of the format of our shopping centers—necessity, value, convenience. Even in tougher times, we are well aware of the pressures on consumers with the rise in gas prices. There is often a trade-down effect, and Alan can color that up with our foot traffic. We start to see even more traffic at our centers as a result of that. On top of that, layer in the trade areas in which we operate, and our consumers are more resilient and more able to withstand these price increases and pressures. Our tenants are healthy. We are seeing that in every metric within the portfolio. I will have Alan color that up a little bit more.

Alan Roth: Good morning, Samir. To talk about the tenants being healthy, the first place I look is sales, and they do remain healthy within our portfolio. The next spot is collections, and we are continuing to be near record lows on bad debt. Foot traffic is very resilient. Looking at Q1 results, we are up 2.3%. To your point of the recent macro environment and higher fuel prices, what does April look like? When we look at the portfolio in April, foot traffic is actually up 3% more than it was in Q1 during this time period of increased fuel prices. We continue to feel good, and I would bring that back to Lisa’s comment about the consumers and the trade areas in which we are operating. We will continue to keep a watchful eye on things, but things remain certainly positive from all metrics that we have access to.

Operator: Moving on to Craig Mailman with Citi.

Craig Mailman: Hey. Good morning, everyone. You guys bumped the increased start expectations a bit here. Can you talk about which projects are now slated to start this year, and the overall leasing activity? Maybe anything else on the horizon that was not included in this new starts, but could potentially start later this year? Can you talk about the overall environment of your different projects?

Michael J. Mas: Craig, I appreciate the question. Let me start, and I will give it to Nick real quick because I want to just clear up something. We guide on development spend, but we are highlighting that we have some added visibility to added starts that will drive that spend this year. But I want it to be clear that the guidance is spend guidance, not starts guidance. Nick will take it from there.

Nicholas Andrew Wibbenmeyer: Yeah, Craig. I appreciate the question. As we said in our opening remarks, we feel really good about our ground-up development program. Over the last three years, we have started just over $800 million, and as we look forward, we expect our investment platform to invest over $1 billion over the next three years. You can see continued upward momentum as our team does a tremendous job uncovering these opportunities around the country. We continue to be bullish about that opportunity set; therefore, we are raising our eyesight regarding what that spend will be based on an expectation of higher starts than previously anticipated.

Operator: We will go next to Juan Carlos Sanabria with BMO Capital Markets.

Juan Carlos Sanabria: Hi. Good morning. Just piggybacking off of Craig’s question on the greenfield starts. You mentioned master plan communities being a good source of opportunities. With the uncertainty on single-family build-for-rent with the Road to Housing Act, is that creating a temporary pause by some developers, and has that had any changes to the prospects of that line of business for Regency’s future development pipeline?

Nicholas Andrew Wibbenmeyer: Great question. The reality is our program to date has not been heavily involved in the build-to-rent type communities. The master plan developers we are working with and continue to work with around the country are single-family for-sale communities, and/or they have other aspects with townhomes or apartment buildings. We have not seen any impact to the master plan communities we are working on in terms of their appetite and desire to continue to push forward to build retail within their communities at this point.

Lisa Palmer: Thank you, Juan.

Operator: Todd Michael Thomas with KeyBanc Capital Markets has our next question.

Todd Michael Thomas: Hi, thanks. Sticking with ground-up development, can you talk about the cadence of starts during the balance of the year? And also discuss how yields are trending on new ground-up projects you are underwriting relative to prior yields, and whether future master plan starts would look similar or potentially have a different yield profile?

Nicholas Andrew Wibbenmeyer: I appreciate the question, Todd. In terms of timing, if you want to talk about lumpy developments—where it gets the lumpiest is timing. That is because our focus is not hitting some timeline; our focus is absolutely making sure we de-risk these opportunities before we close. We want to make sure we are fully through entitlements; we want to make sure we have pre-leasing done with our anchors; we want to make sure we have drawings done and bids in hand. We want to make sure we have visibility to executing on these projects, and as you can appreciate, that is an extremely complicated process. You are always one phone call away from a delay from any different outside input on that process. We are excited about the program—it is building—but it will always be lumpy.

That said, we continue to have good visibility to an increased amount of starts this year, and that is why we increased our projected spend. Although lumpy and a little back-end weighted likely this year, we still feel really confident in the overall trajectory.

Michael J. Mas: To double down on Craig’s earlier question, that guidance is spend. Consider that to be ratable throughout the year from a spend standpoint. To Nick’s point, we do think starts are growing, and they will probably be more back-end loaded, which is setting this up great for deliveries in 2027 and beyond.

Nicholas Andrew Wibbenmeyer: On yields, we are not changing our eyesight. As you have seen, our development yields are firmly in the 7%+ range, and that is where our eyesight continues to be. We feel really good about achieving those returns.

Michael J. Mas: Thanks, Todd.

Operator: We will go next to Michael Griffin with Evercore ISI.

Michael Griffin: Great, thanks. Alan, I appreciated your comment on the leasing pipeline. It looks like it is another strong year ahead with high same-property leased as well as commenced occupancy. On the rent bumps you are embedding—I realize that is more on the small shop side—but has anything changed in terms of leverage for anchor leases? A lot of grocers have effectively flat leases with multiple option periods. Whether it is taking back control earlier through shorter options, embedding greater escalators—can you talk about leverage on the negotiating side for anchor boxes and where you are able to push rents there? Thank you.

Alan Roth: Yes, thank you for the question. You are right on the shops. To give you the stat: 90% of our new shop leasing had three or more embedded rent steps, and about a quarter of them had 4% or greater. We are leaning in there. In terms of leverage on anchors, we are not seeing a dramatic shift in embedded steps on the anchor front, but there is still pricing power. Whether that is better control over work letters, lower TIs, or more rent up front, there are levers there. Not seeing much in the way of options being less. For us, we are willing to align as long as it is the right quality anchor retailer that can be sustainable for our project. The pipeline is strong. We signed a Publix deal for a redevelopment in the first quarter.

We signed a PGA Superstore. We are bringing our first TESO Life to a Virginia project; they are on rapid expansion. And then a lot of the obvious names you hear about—Ross, TJX, Burlington, Ulta, etc. It is robust. I feel really good about where those anchor transactions are. As I said in my opening remarks, that is where the real opportunity lies for us to get back to those peak levels, which we are not at, in terms of driving continued occupancy.

Lisa Palmer: I believe it is supply and demand. When we reach that peak occupancy and there is no space available for anchors, we already have pricing power and more leverage than in times with more vacancy. Right now, there is not a lot. As that continues to move in our favor, we will have incrementally more pricing power and leverage to push a little harder. But it also needs to be a win-win. We have to look at their businesses and margins. I also believe as these retailers get more efficient—through technology and artificial intelligence—that will enable them to pay more rent. I am really optimistic about that.

Operator: Thank you. We will go next to Haendel St. Juste with Mizuho Securities.

Ravi Vaidya: Hi, good morning. This is Ravi Vaid on the line for Haendel. Can you identify the tenant that was moved to a cash basis? Was that a bankruptcy? And how should we think about the current bad debt range, especially since you have utilized only less than 10 bps so far of the current reserve? Thank you.

Michael J. Mas: Sure. I am not going to name the tenant. It is one lease in well over 9 thousand leases where we made a judgment call on their ability to meet the terms of their future lease obligations. They are still current and paying rent in the near term. Core operating earnings is unimpacted—this is an accounting treatment of future rent increases. From a ULI perspective, we had a really good quarter and largely met our expectations. We are operating at below historical averages. We plan to operate at around to slightly below historical averages, and we are meeting that expectation today. Eyes are still pretty high. We feel really confident about the health of our tenancy and feel good about the prospects for ULI going forward.

That is a different comment from bankruptcies. Bankruptcies are move-outs. We still find ourselves in the middle of some ongoing bankruptcy filings. Breadcrumbs are out there that would indicate potentially we have some good opportunities to come out of those okay, but we are not done with those. Bankruptcies are an uncertain process, and we just need a little bit more time to have some more clarity for the normal part of our business.

Lisa Palmer: Thanks, Ravi.

Operator: Moving on to the next question from Ladenburg Thalmann.

Analyst: Good morning. Lisa, great to hear your voice. You have built over decades a track record as best-in-class shopping center developer. It differentiates your platform as you alluded to. As I recall, you also do not have a big land bank. How do you protect yourself from rising land values, which is a big input in your development? Maybe talk about your option strategy and how long in advance you work on getting land under option before you activate developments.

Lisa Palmer: Thank you. I will set it up before I pass it to Nick. Thank you for acknowledging what I know is the best development platform in the business nationally. A lot of what Nick will answer has to do with why we are the best. It is the team, the relationships, and the experience and track record. All matter and all make a difference in our success. It is a virtuous cycle. With that, I will pass it over to Nick, and again, thank you. Really appreciate the comments.

Nicholas Andrew Wibbenmeyer: Absolutely. We are doing this very efficiently, meaning we are not driving a large land bank that we are sitting on in order to drive this development program. We are definitively working with land sellers, optioning their property, and working through the process—as I articulated earlier—de-risking that process before we close. A really hard part of our job is sitting down with landowners and having conversations about the value of their land and educating them—that is what we do every day. It is the most difficult part of the development business: sitting down with landowners who may have one value in mind and educating them on the realities of the market. That is what our teams do every day, and given our track record, our access to information, and our retailer relationships, we win more than our fair share of those conversations and jump balls with landowners for exactly that reason.

I expect it to continue, but it is never easy. It is always a challenge.

Lisa Palmer: Thanks.

Operator: Moving on to Ronald Kamdem with Morgan Stanley.

Ronald Kamdem: Great, thanks for taking my question. You brought back the slide in the presentation about run rate for occupancy upside, which was interesting because it shows that your leased occupancy has already exceeded the previous peak, but the commenced has not. Do you think commenced occupancy can get to a new peak this year, and what kind of tailwind would that be for same-store NOI going forward?

Michael J. Mas: Appreciate you noticing our disclosure, Ron. We feel really optimistic about the prospects for this portfolio in the current environment. We have set new records on percent leased. We have room to run on percent commenced. Our plan and expectation for the year is that we will continue to shrink that gap between leased and commenced. We will continue to drive outsized base rent growth as a result, and there will be some amplifying factor through recoveries as well. We think that will run through the balance of this year. Where we go from there is to be determined. We are also an active asset manager. We aspire to invest into our own portfolio through redevelopment. Sometimes that means managing some vacancy and taking on some vacancies. As Alan would say, we are not leasing for occupancy. We are leasing to maximize NOI over the long run. That is the approach we will take from here.

Alan Roth: The only thing I would double down on is we executed 1.5 million square feet in Q1, and our teams are full speed ahead. They hit the ground running. I am really proud of what they accomplished. It is more GLA than we executed in 2025 despite being at these peak levels. They will continue to find opportunities not just for vacant space, but to lean into better operators and upgraded merchandising where we are leasing occupied space. Appreciate the question, Ron.

Operator: We will go next to Hong Zhang with JPMorgan.

Hong Zhang: Hey. Could you touch on how you are viewing potentially tapping the equity market today, given that your stock price is higher than when you tapped it last year? You have also grown NOI since that time.

Lisa Palmer: We always take an opportunistic view of issuing equity. Currently, we have more than enough balance sheet capacity and free cash flow to meet our needs. If we were to have an opportunity that was visible to us that we could fund accretively with equity, we would take advantage of that. We have a strong track record of issuing equity judiciously and accretively. It is a tool in our toolbox and one that we will access when the opportunity presents itself. Thank you.

Operator: As a reminder, if you would like to ask a question, please press 1. We will hear next from Omotayo Okusanya from Deutsche Bank.

Omotayo Okusanya: Good morning. Hope this is a fair question, but sometimes the curse of doing very well over a long period of time is that people always expect more. Again, you had a great quarter and solid outlook, but the stock is down today. When people are looking at your name relative to peers, they may be seeing the premium valuation, which is warranted, but a really good operating backdrop for the entire industry. In that world, how do you think about still being able to outperform peers? What are investors possibly underestimating about your story that you can provide evidence of, to give confidence you can put up superior earnings growth which validates the premium valuation?

Lisa Palmer: I learned from my predecessor, who often quoted a very wise investor, that in the short term the market is a voting machine and in the long term it is a weighing machine. When you take the combination of what we refer to as our strategic advantages—the quality of our portfolio, the development platform, the balance sheet, and our team—the combination is truly unique. Over the long term, I have 100% confidence that we will be at or near the very top of the sector in same-property NOI growth. If you look back five or ten years, you will see that is the case, and that is using less capital than the rest of the sector to get that growth. If you look at investments and the accretion from investment and use of capital—whether equity or new debt—again, the returns are at or near the top of the sector.

Because of those four things—the quality of the portfolio that generates very strong same-property NOI growth, a development platform that is unequaled and will continue to create meaningful value for our shareholders over the long term, the balance sheet to fund it, and the people to execute it—I believe it is the right strategy and one that will deliver and has delivered over the long term.

Omotayo Okusanya: Fair enough, Lisa.

Operator: We will hear from Cooper Clark with Wells Fargo.

Operator: Cooper, you are back.

Cooper R. Clark: Awesome. Thank you very much. I was hoping you could talk about the portfolio trends you have seen historically during periods of higher oil prices and the impact that has on traffic levels and consumer spending trends.

Lisa Palmer: The last time we had gas prices this high was in the middle of COVID, so it was a little bit different and not necessarily a relevant historical point. Generally, I would again speak to—having been with the company for 30 years—that in the modern era of Regency, we have seen a decline in same-property NOI really twice: once during the global financial crisis and the other during COVID. Our property type—the format of our shopping centers, neighborhood and community centers—really is defensive, producing consistent, durable, steady cash flows through all cycles. I remember earlier in my career during the 1998 mini-recession and the 2001 tech bubble, we would say we choose not to participate, because we grew right through it. When you think about the quality of the portfolio, the format of the shopping centers, and the trade areas in which we operate, we are able to grow right through it. That is the expectation. Thanks, Cooper.

Operator: Thank you. This now concludes our question-and-answer session. I would like to turn the floor back over to Lisa Palmer for closing comments.

Lisa Palmer: Thank you all. I appreciate your time, and thank you to the team as well. Have a great day.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s teleconference. You may disconnect your lines and have a wonderful day.

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