Regency, Equity One Merger Integration Proceeding Apace
Martin “Hap” Stein, chairman and CEO of Regency Centers (NYSE: REG), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.
Earlier this year, Regency completed its acquisition of Equity One, Inc. in an all-stock deal valued at approximately $4.6 billion. Stein said the integration with Equity One is going “extremely well.” Regency is on course to achieve its objectives, starting with realizing $27 million of synergies, he noted.
The merger has allowed Regency to enhance its presence in key markets and improve its net operating income (NOI) growth rate, according to Stein. As an all-stock transaction, Regency has also been able to enhance its balance sheet, he said.
“It’s been a great merger for us,” he said.
Meanwhile, Stein said Regency’s portfolio can withstand the disruptive forces playing out in the retail landscape.
“The key to being successful is quality. It’s never been more important than it is today,” Stein stressed.
In addition, Stein commented on the importance of development to Regency. He noted that since 2009, the company has completed more than $1.5 billion in development projects, with an 8 percent return. The company currently has a development pipeline of about $500 million.
Going forward, the split between new development and redevelopment will be opportunity driven, Stein said.
Published at Fri, 16 Jun 2017 13:40:05 +0000