Regency Centers to sell 8 million shares of stock

AP News
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Posted: Dec 03, 2009 5:53 PM

Regency Centers Corp. said Thursday it plans to sell 8 million shares of common stock in a public offering.

The shopping center developer plans to use the proceeds to repay or refinance debt coming due next year, including its share of debt related to a joint venture, and for general corporate purposes.

Separately, the company said it does not expect the offering to impact its 2010 earnings forecast, because of the interest savings it expects from paying down its existing term loan.

The real estate investment trust said it will grant the underwriters a 30-day option to purchase up to an additional 1.2 million shares to cover over-allotments, if any. Regency currently has about 80.3 million shares outstanding.

JPMorgan and Wells Fargo Securities are acting as joint book-running managers for the offering.

On Wednesday, the company said it expects to post funds from operations per share between $2.59 and $2.64 for 2009, and between $2.12 and $2.34 for 2010.

Analysts polled by Thomson Reuters, on average, expect FFO of $1.05 per share for 2009, with estimates ranging from 66 cents to $1.13. For 2010, analysts expect an average of $2.38 per share, with estimates ranging from $2.21 to $2.57 per share.

Regency Center shares closed Thursday trading down 56 cents at $32.98. The new offering's potential dilution to current shareholders' stakes drove investors to send the stock down 5 percent after-hours.