Fitch Ratings, the global credit rating firm, has reaffirmed the
credit rating of BBB for
Regency Centers Corporation
(
REG
), a real estate investment trust (REIT). The BBB-rating denotes a
fairly stable outlook with a relatively strong credit quality, low
default risk, and adequate capacity to meet current financial
commitments.
While reaffirming Regency's credit rating, Fitch has considered
its high quality asset portfolio, solid past operating performance,
strong liquidity, adequate debt service coverage, manageable debt
maturity schedule and its ability to access capital from varied
sources.
Jacksonville, Florida-based Regency owns, operates and develops
grocery-anchored retail shopping centers in the U.S. The average
household income in the markets in which Regency has a significant
presence is over $100,000. With properties in high income,
high-barrier markets, Regency's retail strip center portfolio is
among the best in the sector, which allows it to continually
perform at the top-end of its peer group.
Regency maintains a conservative capital structure and follows a
self-funding capital strategy to fund its growth, which includes
disposal of non-strategic assets and a continued focus on
industry-leading co-investment partnership programs.
During fourth quarter 2011, the company closed a $250 million
unsecured term loan to increase its liquidity and fund its huge
development pipeline. The five-year term loan is scheduled to
mature in December 2016 and includes an accordion feature that
would enable Regency to repay it fully before maturity without any
prepayment charges.
At year-end 2011, Regency had cash and cash equivalents of about
$17.5 million with a debt of $2.0 billion. Pro rata leverage (net
debt divided by recurring operating EBITDA) was 6.4x at year-end
2011 compared to 6.7x at year-end 2010. In addition, pro-rata
fixed-charge coverage ratio was 1.9x at year-end 2011, which was
unchanged from that of the year-earlier period.
We presently have a Neutral rating on Regency, which currently
has a Zacks #3 Rank that translates into a short-term Hold
recommendation. We also have a Neutral recommendation and a Zacks
#3 Rank for
Kimco Realty Corporation
(
KIM
), a competitor of Regency.
KIMCO REALTY CO (
KIM
): Free Stock Analysis Report
REGENCY CTRS CP (
REG
): Free Stock Analysis Report
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