Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (211229)	7/20/2009 9:28:37 AM
From: Perspective	Read Replies (1) \| Respond to of 306849

I thought it must have been posted, but searching turned up no reference on our thread. The proximate cause for the IYR underperformance was the downward guidance offered by REG: reuters.com Supposedly they weren't all that surprised at the full-year FFO cut; what left jaws agape was the cut in occupancy rates and the impairments. Of course there's no mention of what the occupancy rates were cut to. UPDATE 2-Regency cuts Q2 FFO, may up stake in partnership Fri Jul 17, 2009 2:57pm EDT * Cuts Q2 FFO to $0.60/shr to $0.62/shr * Says may increase stake in partnership to 40 pct * Shares down 12 pct (Adds details, analysts' comments) By Biswarup Gooptu BANGALORE, July 17 (Reuters) - Regency Centers Corp (REG.N: Quote, Profile, Research, Stock Buzz) cut its second-quarter funds from operations (FFO), citing impairment charges and the impact of disposition fees in a co-investment partnership vehicle, sending its shares down more than 12 percent. The retail-focused real estate investment trust now expects second-quarter FFO of between 60 cents and 62 cents a share, compared with its previous forecast of 74 cents to 79 cents a share. Excluding impairment charges, the company expects FFO of 23 cents to 25 cents a share. The cut in outlook was a reflection of how much the operating environment had worsened, compared with Regency's expectations, Macquarie Research analyst David Wigginton said. The credit freeze has dealt a double blow to the shopping center sector. It has stifled the consumer and has forced some retailers out of business and others to cut down on their demand for new stores. Regency also slashed its full-year FFO outlook to $2.76 to $2.90 a share from $3.03 to $3,28 a share in May. Excluding an impairment charge of 37 cents a share, it expects 2009 FFO of $2.39 to $2.53 a share. The Benchmark Co's William Acheson said the cut in full-year outlook was not unexpected, given that the U.S. economy was yet to pull out of the depression tailspin. The severity of reduction in Regency's occupancy and net operating income had come as a surprise, considering it had a grocery store-anchored portfolio, Acheson said. "Regency's portfolio tends to have a better tenant profile... making the portfolio's performance more difficult to understand," he added. Regency also announced that it now has the option of increasing its stake in its existing partnership joint venture, Macquarie CountryWide-Regency II LLC, to 40 percent from the current 25 percent. This follows a day after its investment partner Macquarie CountryWide Trust said it had agreed to sell its interest in the partnership to Global Retail Investors. The development could be seen as a positive for Regency, Benchmark's Acheson said. "Worrying about the solvency of your JV partner, and having to, potentially, pick up the debt maturity schedule from them, was something that was weighing on them," he added. Global Retail Investors LLC is a joint venture between the California Public Employees' Retirement System (Calpers), the biggest U.S. public pension fund, and an affiliate of First Washington Realty Inc. Regency Centers, expects to recognize an impairment charge of 37 cents a share related to the sale of properties in its partnership with Macquarie CountryWide Trust. "I did not expect to see the impairment charges until the third or the fourth-quarter of this year. I thought they would delay it as long as possible, Wigginton told Reuters, adding however that the charge itself was not unexpected. Shares of Regency Centers were trading down $4.32 at $29.79 in afternoon trade on the New York Stock Exchange. (Editing by Anil D'Silva, Jarshad Kakkrakandy) `BC