2016 Annual Report To Our Fellow Shareholders: 2016 was a remarkable year for Regency Centers. We continued our positive momentum in each key facet of our business, further positioning our company as a blue-chip REIT. The outstanding execution of our strategy in 2016 resulted in our third consecutive year of 7%- plus growth in per-share core funds from operations (FFO), our fifth consecutive year of growth in same property net operating income (NOI) of 3.5% or more, and nearly $600 million of new investments into the development and acquisition of exceptional retail centers. We entered the year with one of the strongest balance sheets in our peer group, and by astutely taking advantage of favorable capital markets during the year we emerged from 2016 with one of the best balance sheets in the REIT industry. Regency’s seasoned and dedicated team of top-notch professionals made these accomplishments happen.
Core FFO Per Share Growth
% $3.40 8.2 8.4%
$3.30 8.2% % 7.8 8.0% $3.20 7.8% $3.10 7.6% $3.00 7.2 % $3.29 7.4% $2.90 $ 7.2% $2.80 3.04 7.0% $ $2.70 2.82 6.8%
$2.60 6.6% 2014 2015 2016 Core FFO per Share % Growth (rt. axis)
Importantly, we ended the year by announcing a proposed merger with Equity One, which owned one of the highest-quality shopping center portfolios in the country that is incredibly complementary to our assets. You’ve heard me articulate in the past – bigger is better, but better is best. This was the lens we used when pursuing the opportunity. The combination of Regency and Equity One not only creates a bigger company, but also clearly the best national owner, operator, and developer of neighborhood and community shopping centers in the industry.
Creating the Preeminent National Shopping Center Company This transaction increases Regency’s portfolio to more than 425 properties and nearly 60 million square feet under management—featuring properties in the best markets in the U.S., with attractive demographics, and anchored by the most productive grocers and retailers. The merger, which on a pro forma basis is accretive to core FFO per share while preserving a conservative balance sheet:
Q Substantially increases the average population density and purchasing power of the affluent and infill target trade areas where our centers are located.
Q Significantly expands our presence in high priority target metro areas of Miami-Ft. Lauderdale, New York, San Francisco, Los Angeles, and Boston.
Q Maintains our grocery-anchored focus: nearly 80% of our combined portfolio is anchored by highly-productive grocers. Q Enhances future prospects to grow same property NOI.
Q Creates more opportunities for our best-in-class national development and leasing platform to unlock value within the combined portfolio, including outstanding redevelopment projects In sum, the Regency-Equity One combination creates the leading neighborhood and community shopping center REIT, a company exceptionally well-positioned to deploy the best team in the industry to harvest value from our stellar portfolio, to harness Regency’s financial strength to profit from opportunities, and most importantly, to deliver superior shareholder value. You can see why we are so excited that the Equity One Board agreed to merge with Regency.
Executing on All Fronts in 2016 We continued to deliver gratifying financial results in 2016, extending a run of sector-leading performance. Our financial highlights for the year included:
Q Core FFO per share grew 8.2%.
Q The same property portfolio ended the year over 96% leased, with small-shop leasing continuing its impressive trend to 93% leased, the highest small-shop occupancy level in Regency’s history.
Q Total rent growth topped 11%, with new shop rent growth a strong 16.6% for the year.
Q Despite the headwinds from retailer bankruptcies and historically high occupancy levels, our same property NOI growth was still an outstanding 3.5%.
Q Development and redevelopment starts of exceptional shopping centers exceeded $200 million. Moreover, our shadow pipeline remains robust at more than half a billion dollars of projects of comparable high quality.
Q Debt to EBITDA, a reliable proxy for balance sheet strength, was reduced to 4.4 times, one of the lowest among all REITS. These accomplishments combined to grow value for our investors as evidenced by Regency’s total shareholder return, outpacing the shopping center peer average for one, three, five and ten years.
Cumulative Total Return - REG vs. Peers
116.4% 120%
105% 88.4% 90%
75% 63.1%
60% 39.7% 45%
30%
15% 4.0% 3.4%
0% 5-Year Return 3-Year Return 1-Year Return
REG Peer Avg. Development: Creating Value and Premier Shopping Centers Regency has long been recognized as one of our industry’s most astute and forward-thinking developers. Our development and redevelopment program is an important core competency and a competitive advantage, creating premier shopping centers and exceptional value for our shareholders. Since 2000, we have completed more than 200 developments with an estimated value creation of nearly $1 billion. Our disciplined approach, which has been honed by our experience during both expansions and recessions, is particularly relevant today due to the maturity of the current cycle. Several new developments and redevelopments stand out as emblematic of Regency’s activities in 2016. These include:
Village at Tustin Legacy | Tustin, CA
Q The Village at Tustin Legacy, in Orange County, California—a ground-up development started in the third quarter of 2016—is already over 80% leased. Situated within a master- planned community and with an average household income of $105,000 and a 210,000 population within a three-mile radius, Tustin Legacy is a perfect example of the kind of projects we undertake. Aventura Shopping Center | Aventura, FL
Q In Miami, Florida, we are in the process of a complete tear-down and rebuild of the Aventura Shopping Center, which is located on some of the most desirable in-fill real estate in South Florida. In its place will be a new contemporary center, anchored by a podium- format Publix featuring parking underneath the store.
Encina Grande | Walnut Creek, CA
Q We completed the $18 million redevelopment of our Encina Grande shopping center this past November. Located along the busy commuter corridor of Walnut Creek, California, Encina’s trade area includes a three-mile household income of $110,000. The project included the replacement of a tired grocer space with Whole Foods, the relocation of a Walgreens including an added drive thru, and a full façade remodel and upgrades featuring oudoor dining and plaza areas. The center is 100% leased. Executing our Strategy to Enhance a Strong Balance Sheet and Portfolio Quality During the year Regency once again prudently applied a key component of our disciplined funding strategy. Our formula involves using dispositions of non-core properties, free cash flow and equity when priced favorable to our view of net asset value to fund compelling investment opportunities. When the equity market during the first half of 2016 was kind to REIT stocks, including ours, we completed two successful offerings. These financings funded two outstanding acquisitions with superior growth prospects and further strengthend our balance sheet, which is among the most conservative in the REIT sector. At the same time our Core FFO growth rate was accelerated. One of the purchases represented the largest single property acquisition in our history, Market Common Clarendon. Clarendon is an iconic mixed-use center in the heart of one of Washington DC’s most affluent suburbs. The 300,000 square foot retail center is anchored by Whole Foods, Apple and Williams Sonoma. We teamed up on the $406 million transaction with one of the top multi-family real estate companies, AvalonBay, which purchased the 300 apartments. Apportioning the multi-family component to a best-in-class apartment company like AvalonBay exemplifies our approach to mixed- use properties.
Market Common Clarendon | Arlington, VA
Positioned to Thrive in the Face of Disrupters The benefits from our capital funding strategies together with the experience of our management team are why the current challenging environment for many retailers has not dampened my optimism for Regency’s future. During the 40 years I have been in the business, retail bankruptcies and store closures have been integral parts of the landscape. Failing retailers, recessions, shifting demographic and ethnic trends, competition, consolidation, and changing formats have all played significant roles in causing vacancies. Time and again our management team has demonstrated its skill in navigating these storms whether it be failing grocers such as Dominick’s, Haggen and A&P, or drug stores moving from in-line to out-parcels. However, it is clear that technology, particularly the impacts of online shopping and alternate delivery, is now the largest threat to many retailers and, in turn, to retail real estate. Technology will combine with the other risks to accelerate disruption, which will continue the increase in store rationalization for some retailers. As a result a number of retail centers will either struggle or not even survive. At the same time “the winners,” those retailers who know how to connect with their customers, which includes the effective use of technology, will prosper and continue to need bricks and mortar space to service and sell to their customers. We believe that by continuing to strictly adhere to our investment strategy, the vast majority of the centers in our portfolio will not only survive, but also thrive – for the simple reason that the better retailers and restaurants will want to continue to locate where their business will succeed. Regency’s portfolio abounds with those sought-after places - centers that enjoy compelling demographics in the affluent suburbs and near-urban trade areas, and a merchandising mix that features productive anchors. So when some future disrupter causes a retailer in our portfolio to rationalize its store count, we have found that our centers tend to remain on that retailer’s roster of locations. In those cases in which the user vacates, we are oftentimes afforded the ability to attract a better replacement tenant at higher rent. Although from time to time our portfolio will not be totally immune to short-term pain from disrupters, our portfolio management strategies will further ensure that our centers remain in demand to the leading national, regional, and local retailers. In addition we believe that our portfolio provides insulation from the growth in e-commerce, given its convenience to the neighborhoods and communities that we serve and the fact that an extremely high percentage of our tenants include grocers, restaurants and service providers.
Our Future: Great Promise, Realizing our Potential As I look ahead, Regency’s path to continue to build a great company has never been more certain. We have the pieces in place to thrive even in the face of accelerating store rationalization. Our portfolio is better than it has ever been, with exceptional demographics and better retailers. We have a new vista of opportunity to continue to pursue our disciplined approach to development and redevelopment. Our pristine balance sheet affords us the flexibility to capitalize on compelling investment opportunities. Our industry-leading operating systems, including our Fresh Look® merchandising and placemaking philosophy, together with our Greengenuity® sustainability practices, are forward looking. And most importantly, we have an incredible team guided by Regency’s special culture to lead the way. 2017 will be a busy year, one not without its own challenges, as we execute our plan to integrate Equity One and a number of its talented professionals. The goal is to bring together two terrific companies so that the combination equals a world class REIT. Regency will also benefit from the addition of three astute directors to our exceptional board – Chaim Katzman, Joe Azrack, and Peter Linneman. We remain committed to executing on our time-tested strategy and maintaining the same high level of excellence our constituencies have come to expect from us, which we know will deliver growth in earnings, NAV, and shareholder value. With the best team of shopping center professionals in the business, we will move forward with a clear purpose and with our eyes very much focused on the long game of building and sustaining a great company. On behalf of our entire team and board, I’d like to thank our shareholders, tenants, partners and communities for their trust in us.
Sincerely,
Martin E. Stein, Jr. Chairman and Chief Executive Officer UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Securities registered pursuant to Section 12(b) of the Act:
Regency Centers Corporation
Title of each class Name of each exchange on which registered Common Stock, $.01 par value New York Stock Exchange 6.625% Series 6 Cumulative Redeemable Preferred Stock, $.01 par value New York Stock Exchange 6.000% Series 7 Cumulative Redeemable Preferred Stock, $.01 par value New York Stock Exchange
Regency Centers, L.P.
Title of each class Name of each exchange on which registered None N/A ______
Securities registered pursuant to Section 12(g) of the Act:
Regency Centers Corporation: None
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UHSXWDWLRQDOKDUPGXHWRWKHDGYHUVHSHUFHSWLRQRIDQ\IDLOXUHWRVXFFHVVIXOO\FRPSOHWHWKHPHUJHU 6 ,IWKHPHUJHULVQRWFRPSOHWHGZHFDQQRWDVVXUHRXUVWRFNKROGHUVWKDWWKHVHULVNVZLOOQRWPDWHULDOL]HRUZLOOQRW PDWHULDOO\DIIHFWWKHEXVLQHVVILQDQFLDOUHVXOWVDQGRXUVWRFNSULFHV The merger agreement contains provisions that could discourage a potential competing acquirer of Regency Centers or could result in any competing proposal being at a lower price than it might otherwise be. 7KHPHUJHUDJUHHPHQWFRQWDLQVSURYLVLRQVWKDWVXEMHFWWROLPLWHGH[FHSWLRQVUHVWULFWWKHDELOLW\RIHDFKRI5HJHQF\ &HQWHUVDQG(TXLW\2QHWRLQLWLDWHVROLFLWSURSRVHNQRZLQJO\HQFRXUDJHRUIDFLOLWDWHFRPSHWLQJWKLUGSDUW\SURSRVDOVWRHIIHFW DPRQJRWKHUWKLQJVDPHUJHUUHRUJDQL]DWLRQVKDUHH[FKDQJHFRQVROLGDWLRQRUWKHVDOHRIRUPRUHRIWKHVWRFNRU FRQVROLGDWHGQHWUHYHQXHVQHWLQFRPHRUWRWDODVVHWVRI5HJHQF\&HQWHUVRU(TXLW\2QH,QDGGLWLRQHLWKHU5HJHQF\&HQWHUVRU (TXLW\2QHJHQHUDOO\KDVDQRSSRUWXQLW\WRRIIHUWRPRGLI\WKHWHUPVRIWKHPHUJHUDJUHHPHQWLQUHVSRQVHWRFHUWDLQFRPSHWLQJ 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,QFRQQHFWLRQZLWKWKHSHQGLQJPHUJHUVRPHRIRXUDQG(TXLW\2QH¶VWHQDQWVRUYHQGRUVPD\GHOD\RUGHIHUGHFLVLRQV ZKLFKFRXOGDGYHUVHO\DIIHFWWKHUHYHQXHVHDUQLQJVIXQGVIURPRSHUDWLRQVFDVKIORZVDQGH[SHQVHVRI5HJHQF\&HQWHUVDQG (TXLW\2QHUHJDUGOHVVRIZKHWKHUWKHPHUJHULVFRPSOHWHG6LPLODUO\FXUUHQWDQGSURVSHFWLYHHPSOR\HHVRI5HJHQF\&HQWHUV DQG(TXLW\2QHPD\H[SHULHQFHXQFHUWDLQW\DERXWWKHLUIXWXUHUROHVZLWK5HJHQF\&HQWHUVIROORZLQJWKHPHUJHUZKLFKPD\ PDWHULDOO\DGYHUVHO\DIIHFWRXUDQG(TXLW\2QH¶VDELOLW\WRDWWUDFWDQGUHWDLQNH\SHUVRQQHOGXULQJWKHSHQGHQF\RIWKHPHUJHU ,QDGGLWLRQGXHWRLQWHULPRSHUDWLQJFRYHQDQWVLQWKHPHUJHUDJUHHPHQWZHDQG(TXLW\2QHPD\EHXQDEOH ZLWKRXWWKHRWKHU SDUW\¶VSULRUZULWWHQFRQVHQW GXULQJWKHSHQGHQF\RIWKHPHUJHUWRSXUVXHVWUDWHJLFWUDQVDFWLRQVXQGHUWDNHVLJQLILFDQWFDSLWDO SURMHFWVXQGHUWDNHFHUWDLQVLJQLILFDQWILQDQFLQJWUDQVDFWLRQVDQGRWKHUZLVHSXUVXHRWKHUDFWLRQVHYHQLIVXFKDFWLRQVZRXOG SURYHEHQHILFLDO Risks Relating to Regency Centers after Completion of the Merger We expect to incur substantial expenses related to the merger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ollowing the merger, we may be unable to integrate the business of Equity One successfully or realize the anticipated synergies and related benefits of the merger or do so within the anticipated time frame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¶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¶VDWWHQWLRQ FDXVHGE\FRPSOHWLQJWKHPHUJHUDQGLQWHJUDWLQJWKHFRPSDQLHV¶RSHUDWLRQV )RUDOOWKHVHUHDVRQV\RXVKRXOGEHDZDUHWKDWLWLVSRVVLEOHWKDWWKHLQWHJUDWLRQSURFHVVFRXOGUHVXOWLQWKHGLVWUDFWLRQ RIRXUPDQDJHPHQWWKHGLVUXSWLRQRIRXURQJRLQJEXVLQHVVRULQFRQVLVWHQFLHVLQRXUVHUYLFHVVWDQGDUGVFRQWUROVSURFHGXUHV DQGSROLFLHVDQ\RIZKLFKFRXOGDGYHUVHO\DIIHFWWKHDELOLW\RI5HJHQF\&HQWHUVWRPDLQWDLQUHODWLRQVKLSVZLWKWHQDQWVYHQGRUV DQGHPSOR\HHVRUWRDFKLHYHWKHDQWLFLSDWHGEHQHILWVRIWKHPHUJHURUFRXOGRWKHUZLVHDGYHUVHO\DIIHFWRXUEXVLQHVVDQG ILQDQFLDOUHVXOWV Following the merger, we may be unable to retain key employees. 2XUVXFFHVVDIWHUWKHPHUJHUZLOOGHSHQGLQSDUWXSRQRXUDELOLW\WRUHWDLQNH\5HJHQF\DQG(TXLW\2QHHPSOR\HHV .H\HPSOR\HHVPD\GHSDUWHLWKHUEHIRUHRUDIWHUWKHPHUJHUEHFDXVHRILVVXHVUHODWLQJWRWKHXQFHUWDLQW\DQGGLIILFXOW\RI LQWHJUDWLRQRUDGHVLUHQRWWRUHPDLQZLWK5HJHQF\&HQWHUVIROORZLQJWKHPHUJHU$FFRUGLQJO\QRDVVXUDQFHFDQEHJLYHQWKDW ZHZLOOEHDEOHWRUHWDLQNH\HPSOR\HHVWRWKHVDPHH[WHQWDVLQWKHSDVW Our future operating results will suffer if we do not effectively manage our operations following the merger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he trading price of shares of our common stock following the merger may be affected by factors different from those affecting the price of shares of our common stock before the merger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ollowing the merger, we will have a substantial amount of indebtedness and may need to incur more in the future. :HKDYHVXEVWDQWLDOLQGHEWHGQHVVDQGLQFRQQHFWLRQZLWKWKHPHUJHUZLOOLQFXUDGGLWLRQDOLQGHEWHGQHVV7KH 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H[SRVLQJ5HJHQF\&HQWHUVWRSRWHQWLDOHYHQWVRIGHIDXOW LIQRWFXUHGRUZDLYHG XQGHUFRYHQDQWVFRQWDLQHGLQRXUGHEW LQVWUXPHQWVWKDWFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGRSHUDWLQJUHVXOWV 8 LQFUHDVLQJRXUYXOQHUDELOLW\WRDGRZQWXUQLQJHQHUDOHFRQRPLFFRQGLWLRQV DQG OLPLWLQJRXUDELOLW\WRUHDFWWRFKDQJLQJPDUNHWFRQGLWLRQVLQLWVLQGXVWU\ 7KHLPSDFWRIDQ\RIWKHVHSRWHQWLDODGYHUVHFRQVHTXHQFHVFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUUHVXOWVRI RSHUDWLRQVILQDQFLDOFRQGLWLRQDQGOLTXLGLW\ At the effective time of the merger, the Gazit Parties will become significant stockholders of Regency Centers and may have interests that are different from, or are in addition to, Regency Centers or our other stockholders in the future. $WWKHHIIHFWLYHWLPHRIWKHPHUJHU0U&KDLP.DW]PDQDQG*D]LW*OREH/WGDQGFHUWDLQRILWVDIILOLDWHGHQWLWLHV WKH *D]LW3DUWLHV ZLOORZQDSSUR[LPDWHO\RIRXWVWDQGLQJVKDUHVRIRXUFRPPRQVWRFNEDVHGRQWKHLURZQHUVKLSRI DSSUR[LPDWHO\RIWKH(TXLW\2QHFRPPRQVWRFNDVRI1RYHPEHU7KLVFRQFHQWUDWLRQRIRZQHUVKLSLQRQHJURXS 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³$JUHHPHQWVZLWKWKH*D]LW3DUWLHV*RYHUQDQFH$JUHHPHQW´ Counterparties to certain agreements with Regency Centers or Equity One may exercise contractual rights under such agreements in connection with the merger. :HDQG(TXLW\2QHDUHHDFKSDUW\WRFHUWDLQDJUHHPHQWVWKDWJLYHWKHFRXQWHUSDUW\FHUWDLQULJKWVIROORZLQJD³FKDQJH LQFRQWURO´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isk Factors Related to Our Industry and Real Estate Investments A shift in retail shopping from brick and mortar stores to e-commerce may have an adverse impact on our revenues and cash flow. 0DQ\UHWDLOHUVRSHUDWLQJEULFNDQGPRUWDUVWRUHVKDYHPDGHHFRPPHUFHVDOHVDYLWDOSLHFHRIWKHLUEXVLQHVV$OWKRXJK PDQ\RIWKHUHWDLOHUVLQRXUVKRSSLQJFHQWHUVHLWKHUSURYLGHVHUYLFHVRUVHOOJURFHULHVVXFKWKDWWKHLUFXVWRPHUEDVHGRHVQRW 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WKHJURZWKRIVXSHUFHQWHUVDQGZDUHKRXVHFOXEUHWDLOHUVVXFKDVWKRVHRSHUDWHGE\:DO0DUWDQG&RVWFRDQGWKHLU DGYHUVHHIIHFWRQWUDGLWLRQDOJURFHU\FKDLQV WKHLPSDFWRIFKDQJLQJHQHUJ\FRVWVRQFRQVXPHUVDQGLWVFRQVHTXHQWLDOHIIHFWRQUHWDLOVSHQGLQJ DQG FRQVHTXHQFHVRIDQ\DUPHGFRQIOLFWLQYROYLQJRUWHUURULVWDWWDFNDJDLQVWWKH8QLWHG6WDWHV 7RWKHH[WHQWWKDWDQ\RIWKHVHFRQGLWLRQVRFFXUWKH\DUHOLNHO\WRLPSDFWPDUNHWUHQWVIRUUHWDLOVSDFHRFFXSDQF\LQ WKHRSHUDWLQJSRUWIROLRRXUDELOLW\WRVHOODFTXLUHRUGHYHORSSURSHUWLHVDQGRXUFDVKDYDLODEOHIRUGLVWULEXWLRQVWRVWRFNDQG XQLWKROGHUV Our revenues and cash flow could be adversely affected if economic or market conditions deteriorate where our properties are geographically concentrated, which may impede our ability to generate sufficient income to pay expenses and maintain our properties. 7KHHFRQRPLFFRQGLWLRQVLQPDUNHWVLQZKLFKRXUSURSHUWLHVDUHFRQFHQWUDWHGJUHDWO\LQIOXHQFHRXUILQDQFLDO SHUIRUPDQFH'XULQJWKH\HDUHQGHG'HFHPEHURXUSURSHUWLHVLQ&DOLIRUQLD)ORULGDDQG7H[DVDFFRXQWHGIRU 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f we do not maintain the security of tenant-related information, we could incur substantial costs and become subject to litigation. :HUHFHLYHFHUWDLQLQIRUPDWLRQDERXWRXUWHQDQWVWKDWGHSHQGVXSRQVHFXUHWUDQVPLVVLRQVRIFRQILGHQWLDOLQIRUPDWLRQ 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he termination of our co-investment partnerships could adversely affect our cash flow, operating results, and our ability to make distributions to stock and unit holders. ,IFRLQYHVWPHQWSDUWQHUVKLSVRZQLQJDVLJQLILFDQWQXPEHURISURSHUWLHVZHUHGLVVROYHGIRUDQ\UHDVRQZHZRXOGORVH WKHDVVHWDQGSURSHUW\PDQDJHPHQWIHHVIURPWKHVHFRLQYHVWPHQWSDUWQHUVKLSVZKLFKFRXOGDGYHUVHO\DIIHFWRXURSHUDWLQJ UHVXOWVDQGRXUFDVKDYDLODEOHIRUGLVWULEXWLRQWRVWRFNDQGXQLWKROGHUV Risk Factors Related to Funding Strategies and Capital Structure Higher market capitalization rates for our properties could adversely impact our ability to sell properties and fund developments and acquisitions, and could dilute earnings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capital stock could delay or prevent a change in control. 7KH3DUHQW&RPSDQ\ VDUWLFOHVRILQFRUSRUDWLRQDXWKRUL]HRXU%RDUGRI'LUHFWRUVWRLVVXHXSWRVKDUHVRI SUHIHUUHGVWRFNDQGVKDUHVRIVSHFLDOFRPPRQVWRFNDQGWRHVWDEOLVKWKHSUHIHUHQFHVDQGULJKWVRIDQ\VKDUHVLVVXHG 7KHLVVXDQFHRISUHIHUUHGVWRFNRUVSHFLDOFRPPRQVWRFNFRXOGKDYHWKHHIIHFWRIGHOD\LQJRUSUHYHQWLQJDFKDQJHLQFRQWURO 7KHSURYLVLRQVRIWKH)ORULGD%XVLQHVV&RUSRUDWLRQ$FWUHJDUGLQJDIILOLDWHGWUDQVDFWLRQVFRXOGDOVRGHWHUSRWHQWLDODFTXLVLWLRQV E\SUHYHQWLQJWKHDFTXLULQJSDUW\IURPFRQVXPPDWLQJDPHUJHURURWKHUH[WUDRUGLQDU\FRUSRUDWHWUDQVDFWLRQZLWKRXWWKH DSSURYDORIRXUGLVLQWHUHVWHGVWRFNKROGHUV Item 1B. Unresolved Staff Comments 1RQH 19 Item 2. 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Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 2XUFRPPRQVWRFNLVWUDGHGRQWKH1HZ 2016 2015 Cash Cash Dividends Dividends Quarter Ended High Price Low Price Declared High Price Low Price Declared 0DUFK -XQH 6HSWHPEHU 'HFHPEHU 33 :HKDYHGHWHUPLQHGWKDWWKHGLYLGHQGVSDLGGXULQJDQGRQRXUFRPPRQVWRFNTXDOLI\IRUWKHIROORZLQJWD[ WUHDWPHQW Qualified Dividends Total Total Capital (included in Distribution Ordinary Gain Nontaxable Ordinary Unrecapt Sec 1250 per Share Dividends Distributions Distributions Dividends) Gain ²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mong Regency Centers Corporation, the S&P 500 Index, the FTSE NAREIT Equity REITs Index, and the FTSE NAREIT Equity Shopping Centers Index $250 $200 $150 $100 $50 $0 12/11 12/12 12/13 12/14 12/15 12/16 Regency Centers Corporation S&P 500 FTSE NAREIT Equity REITs FTSE NAREIT Equity Shopping Centers *$100 invested on 12/31/11 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2017 Standard & Poor's, a division of S&P Global. All rights reserved. 12/11 12/12 12/13 12/14 12/15 12/16 Regency Centers Corporation 100.00 130.37 132.73 189.19 208.15 216.42 S&P 500 100.00 116.00 153.58 174.60 177.01 198.18 FTSE NAREIT Equity REITs 100.00 118.06 120.97 157.43 162.46 176.30 FTSE NAREIT Equity Shopping Centers 100.00 125.02 131.26 170.59 178.64 185.21 35 Item 6. Selected Financial Data (in thousands, except per share and unit data, number of properties, and ratio of earnings to fixed charges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diluted (note 12): &RQWLQXLQJRSHUDWLRQV 'LVFRQWLQXHGRSHUDWLRQV ² ² ² 1HWLQFRPH ORVV DWWULEXWDEOHWRFRPPRQXQLWKROGHUV Other information: 1HWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV 1HWFDVK XVHGLQ SURYLGHGE\LQYHVWLQJDFWLYLWLHV 1HWFDVKSURYLGHGE\ XVHGLQ ILQDQFLQJDFWLYLWLHV 'LVWULEXWLRQVSDLGRQFRPPRQXQLWV 5DWLRRIHDUQLQJVWRIL[HGFKDUJHV 5DWLRRIFRPELQHGIL[HGFKDUJHVDQGSUHIHUHQFHGLYLGHQGVWRHDUQLQJV Balance sheet data: 5HDOHVWDWHLQYHVWPHQWVEHIRUHDFFXPXODWHGGHSUHFLDWLRQ 7RWDODVVHWV 7RWDOGHEW 7RWDOOLDELOLWLHV 7RWDOSDUWQHUV¶FDSLWDO 7RWDOQRQFRQWUROOLQJLQWHUHVWV 'XULQJWKH\HDUHQGHG'HFHPEHUWKH2SHUDWLQJ3DUWQHUVKLSUHFRJQL]HGDPLOOLRQFKDUJHWRVHWWOH PLOOLRQRIIRUZDUGVWDUWLQJLQWHUHVWUDWHVZDSVUHODWHGWRQHZGHEWSUHYLRXVO\H[SHFWHGWREHLVVXHGLQ$VDUHVXOWRILWV -XO\HTXLW\RIIHULQJDQGWKHHDUO\UHGHPSWLRQRIWKHPLOOLRQQRWHVLQ$XJXVWWKH2SHUDWLQJ3DUWQHUVKLS EHOLHYHGWKDWWKHLVVXDQFHRIQHZIL[HGUDWHGHEWZLWKLQWKHUHPDLQLQJSHULRGRIWKHIRUZDUGVWDUWLQJVZDSVZDVSUREDEOHWRQR ORQJHURFFXU$FFRUGLQJO\WKH2SHUDWLQJ3DUWQHUVKLSFHDVHGKHGJHDFFRXQWLQJDQGUHFODVVLILHGWKHPLOOLRQSDLGWRVHWWOH WKHIRUZDUGVWDUWLQJVZDSVIURP$FFXPXODWHGRWKHUFRPSUHKHQVLYHORVVWRHDUQLQJV 'XULQJWKH\HDUHQGHG'HFHPEHUWKH2SHUDWLQJ3DUWQHUVKLSUHFRJQL]HGDJDLQRQUHPHDVXUHPHQWRILQYHVWPHQWLQ UHDOHVWDWHSDUWQHUVKLSRIPLOOLRQZKLFKLVLQFOXGHGLQ7RWDORWKHUH[SHQVH LQFRPH DQG,QFRPHIURPRSHUDWLRQVXSRQ WKHDFTXLVLWLRQRIWKHUHPDLQLQJLQWHUHVWLQDVLQJOHRSHUDWLQJSURSHUW\UHVXOWLQJLQFRQVROLGDWLRQRIWKHSURSHUW\DVD EXVLQHVVFRPELQDWLRQ7KHJDLQRQUHPHDVXUHPHQWZDVFDOFXODWHGEDVHGRQWKHGLIIHUHQFHEHWZHHQWKHFDUU\LQJYDOXHDQGWKH IDLUYDOXHRIWKHSUHYLRXVO\KHOGHTXLW\LQWHUHVW 2Q-DQXDU\WKH2SHUDWLQJ3DUWQHUVKLSSURVSHFWLYHO\DGRSWHG)LQDQFLDO$FFRXQWLQJ6WDQGDUGV%RDUG )$6% $FFRXQWLQJ6WDQGDUGV8SGDWH $68 1R3UHVHQWDWLRQRI)LQDQFLDO6WDWHPHQWV 7RSLF DQG3URSHUW\3ODQWDQG (TXLSPHQW 7RSLF 5HSRUWLQJ'LVFRQWLQXHG2SHUDWLRQVDQG'LVFORVXUHVRI'LVSRVDOVRI&RPSRQHQWVRIDQ(QWLW\ZKLFK FKDQJHVWKHUHTXLUHPHQWVIRUUHSRUWLQJGLVFRQWLQXHGRSHUDWLRQV8QGHUWKHQHZJXLGDQFHRQO\GLVSRVDOVUHSUHVHQWLQJD VWUDWHJLFVKLIWLQRSHUDWLRQVVKRXOGEHSUHVHQWHGDVGLVFRQWLQXHGRSHUDWLRQV1RSURSHUW\GLVSRVDOVVLQFHDGRSWLRQRIWKLV$68 TXDOLI\DVGLVFRQWLQXHGRSHUDWLRQVWKHUHIRUHSULRUSHULRGDPRXQWVZHUHQRWUHFODVVLILHGIRUSURSHUW\VDOHVVLQFHDGRSWLRQ 38 6HH,WHPDefined Terms IRUWKHGHILQLWLRQRI1$5(,7))2DQG&RUH))2DQG,WHPSupplemental Earnings InformationIRUDUHFRQFLOLDWLRQWRWKHQHDUHVW*$$3PHDVXUH 6HH([KLELWIRUDGGLWLRQDOLQIRUPDWLRQUHJDUGLQJWKHFRPSXWDWLRQVRIUDWLRRIHDUQLQJVWRIL[HGFKDUJHVDQGUDWLRRI HDUQLQJVWRFRPELQHGIL[HGFKDUJHVDQGSUHIHUHQFHGLYLGHQGV 39 Item 7. 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community and neighborhood shopping centers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evelop new, high quality shopping centers and redevelop existing centers at attractive returns on investment from a disciplined development program. :HFDSLWDOL]HRQRXUGHYHORSPHQWFDSDELOLWLHVPDUNHWSUHVHQFHDQGDQFKRUUHODWLRQVKLSVE\LQYHVWLQJLQQHZ 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7RWDO/HDVHV Year ended December 31, 2015 Tenant Leasing Leasing SF (in Base Rent Improvements Commissions Transactions (1) thousands) PSF (2) PSF (2) PSF (2) $QFKRU/HDVHV 1HZ 5HQHZDO 7RWDO$QFKRU/HDVHV 6KRS6SDFH 1HZ 5HQHZDO 7RWDO6KRS6SDFH/HDVHV 7RWDO/HDVHV 1XPEHURIOHDVLQJWUDQVDFWLRQVUHSRUWHGDW DOORWKHUVWDWLVWLFVUHSRUWHGDWSURUDWDVKDUH 7RWDOVIRUEDVHUHQWWHQDQWLPSURYHPHQWVDQGOHDVLQJFRPPLVVLRQVUHIOHFWWKHZHLJKWHGDYHUDJH36) 7RWDODYHUDJHEDVHUHQWVLJQHGRQRXUVKRSVSDFHOHDVHVRI LQFUHDVHGLQFRPSDUHGWRDQGH[FHHGV WKHDYHUDJHDQQXDOEDVHUHQWRIDOOVKRSVSDFHOHDVHVGXHWRH[SLUHGXULQJWKHQH[WWZHOYHPRQWKVRI 36)E\ Significant Tenants and Concentrations of Risk :HVHHNWRUHGXFHRXURSHUDWLQJDQGOHDVLQJULVNVWKURXJKJHRJUDSKLFGLYHUVLILFDWLRQDQGE\DYRLGLQJGHSHQGHQFHRQ DQ\VLQJOHSURSHUW\PDUNHWRUWHQDQW7KHIROORZLQJWDEOHVXPPDUL]HVRXUIRXUPRVWVLJQLILFDQWWHQDQWVEDVHGRQWKHLU SHUFHQWDJHRIDQQXDOL]HGEDVHUHQWHDFKRIZKLFKLVDJURFHU\WHQDQW December 31, 2016 Percentage of Percentage of Number of Company- Annualized Grocery Anchor Stores (1) 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6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 71 REGENCY CENTERS CORPORATION Consolidated Statements of Equity For the years ended December 31, 2016, 2015, and 2014 (in thousands, except per share data) Noncontrolling Interests Limited Accumulated Exchangeable Partners’ Additional Other Distributions Total Operating Interest in Total Preferred Common Treasury Paid In Comprehensive in Excess of Stockholders’ Partnership Consolidated Noncontrolling Total Stock Stock Stock Capital Loss Net Income Equity Units Partnerships Interests Equity Balance at December 31, 2013 $ 325,000 923 (16,726) 2,426,477 (17,404) (874,916) 1,843,354 (1,426) 19,206 17,780 1,861,134 1HWLQFRPH ² ² ² ² ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² ² ² ² ² 'HIHUUHGFRPSHQVDWLRQSODQQHW ² ² ² ² ² ² ² ² ² $PRUWL]DWLRQRIUHVWULFWHGVWRFNLVVXHG ² ² ² ² ² ² ² ² &RPPRQVWRFNUHGHHPHGIRUWD[HVZLWKKHOG IRUVWRFNEDVHGFRPSHQVDWLRQQHW ² ² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUGLYLGHQG UHLQYHVWPHQWSODQ ² ² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUVWRFNRIIHULQJV QHWRILVVXDQFHFRVWV ² ² ² ² ² ² ² 72 5HGHPSWLRQRISUHIHUUHGXQLWV ²² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUSDUWQHUVKLSXQLWV H[FKDQJHG ² ² ² ² ² ² ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² ² ² ² ² 'LVWULEXWLRQVWRSDUWQHUV ² ² ² ² ² ² &DVKGLYLGHQGVGHFODUHG 3UHIHUUHGVWRFNXQLW ² ² ² ² ² ² ² ² &RPPRQVWRFNXQLW SHUVKDUH ² ² ² ² ² ² Balance at December 31, 2014 $ 325,000 941 (19,382) 2,540,153 (57,748) (882,372) 1,906,592 (1,914) 31,804 29,890 1,936,482 1HWLQFRPH ² ² ² ² ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² ² ² ² ² 'HIHUUHGFRPSHQVDWLRQSODQQHW ² ² ² ² ² ² ² ² ² $PRUWL]DWLRQRIUHVWULFWHGVWRFNLVVXHG ² ² ² ² ² ² ² ² &RPPRQVWRFNUHGHHPHGIRUWD[HVZLWKKHOG IRUVWRFNEDVHGFRPSHQVDWLRQQHW ² ² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUGLYLGHQG UHLQYHVWPHQWSODQ ² ² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUVWRFNRIIHULQJV QHWRILVVXDQFHFRVWV ² ² ² ² ² ² ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² ² ² ² ² REGENCY CENTERS CORPORATION Consolidated Statements of Equity For the years ended December 31, 2016, 2015, and 2014 (in thousands, except per share data) Noncontrolling Interests Limited Accumulated Exchangeable Partners’ Additional Other Distributions Total Operating Interest in Total Preferred Common Treasury Paid In Comprehensive in Excess of Stockholders’ Partnership Consolidated Noncontrolling Total Stock Stock Stock Capital Loss Net Income Equity Units Partnerships Interests Equity 'LVWULEXWLRQVWRSDUWQHUV ² ² ² ² ² ² &DVKGLYLGHQGVGHFODUHG 3UHIHUUHGVWRFNXQLW ² ² ² ² ² ² ² ² &RPPRQVWRFNXQLW SHUVKDUH ² ² ² ² ² ² Balance at December 31, 2015 $ 325,000 972 (19,658) 2,742,508 (58,693) (936,020) 2,054,109 (1,975) 30,486 28,511 2,082,620 1HWLQFRPH ² ² ² ² ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² ² ² ² ² 'HIHUUHGFRPSHQVDWLRQSODQQHW ² ² ² ² ² ² ² ² ² $PRUWL]DWLRQRIUHVWULFWHGVWRFNLVVXHG ² ² ² ² ² ² ² &RPPRQVWRFNUHGHHPHGIRUWD[HVZLWKKHOG IRUVWRFNEDVHGFRPSHQVDWLRQQHW ² ² ² ² ² ² ² ² 73 &RPPRQVWRFNLVVXHGIRUGLYLGHQG UHLQYHVWPHQWSODQ ² ² ² ² ² ² ² ² &RPPRQVWRFNLVVXHGIRUVWRFNRIIHULQJV QHWRILVVXDQFHFRVWV ² ² ² ² ² ² ² 5HDOORFDWLRQRIOLPLWHGSDUWQHUV LQWHUHVW ² ² ² ² ² ² ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² ² ² ² ² 'LVWULEXWLRQVWRSDUWQHUV ²² ² ² ² ² ² ² &DVKGLYLGHQGVGHFODUHG 3UHIHUUHGVWRFNXQLW ² ² ² ² ² ² ² ² &RPPRQVWRFNXQLW SHUVKDUH ² ² ² ² ² ² Balance at December 31, 2016 $ 325,000 1,045 (17,062) 3,294,923 (18,346) (994,259) 2,591,301 (1,967) 35,168 33,201 2,624,502 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV REGENCY CENTERS CORPORATION Consolidated Statements of Cash Flows For the years ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 &DVKIORZVIURPRSHUDWLQJDFWLYLWLHV 1HWLQFRPH $GMXVWPHQWVWRUHFRQFLOHQHWLQFRPHWRQHWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ $PRUWL]DWLRQRIGHIHUUHGORDQFRVWDQGGHEWSUHPLXP $PRUWL]DWLRQDQG DFFUHWLRQ RIDERYHDQGEHORZPDUNHWOHDVHLQWDQJLEOHVQHW 6WRFNEDVHGFRPSHQVDWLRQQHWRIFDSLWDOL]DWLRQ (TXLW\LQLQFRPHRILQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV *DLQRQUHPHDVXUHPHQWRILQYHVWPHQWLQUHDOHVWDWHSDUWQHUVKLS ² ² *DLQRQVDOHRIUHDOHVWDWHQHWRIWD[ 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Consolidated Statements of Cash Flows For the years ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 &DVKIORZVIURPILQDQFLQJDFWLYLWLHV 1HWSURFHHGVIURPFRPPRQVWRFNLVVXDQFH 3URFHHGVIURPVDOHRIWUHDVXU\VWRFN ² ² $FTXLVLWLRQRIWUHDVXU\VWRFN ² ² 5HGHPSWLRQRISUHIHUUHGVWRFNDQGSDUWQHUVKLSXQLWV ² ² 'LVWULEXWLRQVWROLPLWHGSDUWQHUVLQFRQVROLGDWHGSDUWQHUVKLSVQHW 'LVWULEXWLRQVWRH[FKDQJHDEOHRSHUDWLQJSDUWQHUVKLSXQLWKROGHUV 'LYLGHQGVSDLGWRFRPPRQVWRFNKROGHUV 'LYLGHQGVSDLGWRSUHIHUUHGVWRFNKROGHUV 5HSD\PHQWRIIL[HGUDWHXQVHFXUHGQRWHV 3URFHHGVIURPLVVXDQFHRIIL[HGUDWHXQVHFXUHGQRWHVQHW ² 3URFHHGVIURPXQVHFXUHGFUHGLWIDFLOLWLHV 5HSD\PHQWRIXQVHFXUHGFUHGLWIDFLOLWLHV 3URFHHGVIURPQRWHVSD\DEOH 5HSD\PHQWRIQRWHVSD\DEOH 6FKHGXOHGSULQFLSDOSD\PHQWV 3D\PHQWRIORDQFRVWV (DUO\UHGHPSWLRQFRVWV ² 1HWFDVKSURYLGHGE\ XVHGLQ ILQDQFLQJDFWLYLWLHV 1HWGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRIWKH\HDU &DVKDQGFDVKHTXLYDOHQWVDWHQGRIWKH\HDU 6XSSOHPHQWDOGLVFORVXUHRIFDVKIORZLQIRUPDWLRQ &DVKSDLGIRULQWHUHVW 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CENTERS, L.P. Consolidated Balance Sheets December 31, 2016 and 2015 (in thousands, except unit data) 2016 2015 Assets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iabilities and Capital /LDELOLWLHV 1RWHVSD\DEOH QRWH 8QVHFXUHGFUHGLWIDFLOLWLHV QRWH $FFRXQWVSD\DEOHDQGRWKHUOLDELOLWLHV $FTXLUHGOHDVHLQWDQJLEOHOLDELOLWLHVOHVVDFFXPXODWHGDPRUWL]DWLRQRIDQGDW 'HFHPEHUDQGUHVSHFWLYHO\ QRWH 7HQDQWV¶VHFXULW\DQGHVFURZGHSRVLWVDQGSUHSDLGUHQW 7RWDOOLDELOLWLHV &RPPLWPHQWVDQGFRQWLQJHQFLHV QRWHVDQG ² ² &DSLWDO 3DUWQHUV¶FDSLWDO QRWH 3UHIHUUHGXQLWVRIJHQHUDOSDUWQHUSDUYDOXHSHUXQLWXQLWVLVVXHGDQGRXWVWDQGLQJDW 'HFHPEHUDQGUHVSHFWLYHO\OLTXLGDWLRQSUHIHUHQFHRISHUXQLW *HQHUDOSDUWQHU DQG XQLWVRXWVWDQGLQJDW'HFHPEHUDQG UHVSHFWLYHO\ /LPLWHGSDUWQHUV XQLWVRXWVWDQGLQJDW'HFHPEHUDQG $FFXPXODWHGRWKHUFRPSUHKHQVLYHORVV 7RWDOSDUWQHUV¶FDSLWDO 1RQFRQWUROOLQJLQWHUHVWV QRWH /LPLWHGSDUWQHUV¶LQWHUHVWVLQFRQVROLGDWHGSDUWQHUVKLSV 7RWDOQRQFRQWUROOLQJLQWHUHVWV 7RWDOFDSLWDO 7RWDOOLDELOLWLHVDQGFDSLWDO 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 77 REGENCY CENTERS, L.P. Consolidated Statements of Operations For the years ended December 31, 2016, 2015, and 2014 (in thousands, except per unit data) 2016 2015 2014 5HYHQXHV 0LQLPXPUHQW 3HUFHQWDJHUHQW 5HFRYHULHVIURPWHQDQWVDQGRWKHULQFRPH 0DQDJHPHQWWUDQVDFWLRQDQGRWKHUIHHV 7RWDOUHYHQXHV 2SHUDWLQJH[SHQVHV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ 2SHUDWLQJDQGPDLQWHQDQFH *HQHUDODQGDGPLQLVWUDWLYH 5HDOHVWDWHWD[HV 2WKHURSHUDWLQJH[SHQVHV 7RWDORSHUDWLQJH[SHQVHV 2WKHUH[SHQVH LQFRPH ,QWHUHVWH[SHQVHQHWRILQWHUHVWLQFRPHRI DQGLQ DQGUHVSHFWLYHO\ 3URYLVLRQIRULPSDLUPHQW ² (DUO\H[WLQJXLVKPHQWRIGHEW 1HWLQYHVWPHQWLQFRPHLQFOXGLQJXQUHDOL]HG JDLQV ORVVHVRI DQG LQDQGUHVSHFWLYHO\ QRWHV *DLQRQUHPHDVXUHPHQWRILQYHVWPHQWLQUHDOHVWDWHSDUWQHUVKLS ² ² /RVVRQGHULYDWLYHLQVWUXPHQWV ² ² 7RWDORWKHUH[SHQVH LQFRPH ,QFRPHIURPRSHUDWLRQVEHIRUHHTXLW\LQLQFRPHRILQYHVWPHQWVLQUHDOHVWDWH SDUWQHUVKLSV (TXLW\LQLQFRPHRILQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV QRWH ,QFRPHWD[ EHQHILW RIWD[DEOH5(,7VXEVLGLDU\ ² ² ,QFRPHIURPRSHUDWLRQV *DLQRQVDOHRIUHDOHVWDWHQHWRIWD[ 1HWLQFRPH /LPLWHGSDUWQHUV¶LQWHUHVWVLQFRQVROLGDWHGSDUWQHUVKLSV 1HWLQFRPHDWWULEXWDEOHWRWKH3DUWQHUVKLS 3UHIHUUHGXQLWGLVWULEXWLRQV 1HWLQFRPHDWWULEXWDEOHWRFRPPRQXQLWKROGHUV ,QFRPHSHUFRPPRQXQLWEDVLF QRWH ,QFRPHSHUFRPPRQXQLWGLOXWHG QRWH 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 78 REGENCY CENTERS, L.P. Consolidated Statements of Comprehensive Income For the years ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 1HWLQFRPH 2WKHUFRPSUHKHQVLYH ORVV LQFRPH (IIHFWLYHSRUWLRQRIFKDQJHLQIDLUYDOXHRIGHULYDWLYHLQVWUXPHQWV (IIHFWLYHSRUWLRQRIFKDQJHLQIDLUYDOXHRIGHULYDWLYHLQVWUXPHQWV 5HFODVVLILFDWLRQDGMXVWPHQWRIGHULYDWLYHLQVWUXPHQWVLQFOXGHGLQQHWLQFRPH 8QUHDOL]HGJDLQ ORVV RQDYDLODEOHIRUVDOHVHFXULWLHV /HVV UHDOL]HGJDLQVRQVDOHRIDYDLODEOHIRUVDOHVHFXULWLHVUHFRJQL]HGLQQHWLQFRPH ² ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV &RPSUHKHQVLYHLQFRPH /HVV FRPSUHKHQVLYHLQFRPH ORVV DWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV 1HWLQFRPHDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV 2WKHUFRPSUHKHQVLYHLQFRPH ORVV DWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV &RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV &RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWRWKH3DUWQHUVKLS 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 79 REGENCY CENTERS, L.P. Consolidated Statements of Capital For the years ended December 31, 2016, 2015, and 2014 (in thousands) Noncontrolling Interests in Accumulated Limited Partners’ General Partner Other Total Interest in Preferred and Limited Comprehensive Partners’ Consolidated Total Common Units Partners Loss Capital Partnerships Capital Balance at December 31, 2013 $ 1,860,758 (1,426) (17,404) 1,841,928 19,206 1,861,134 1HWLQFRPH ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² 'LVWULEXWLRQVWRSDUWQHUV ² 5HGHPSWLRQRISUHIHUUHGXQLWV ² ² ² 3UHIHUUHGXQLWGLVWULEXWLRQV ² ² ² 5HVWULFWHGXQLWVLVVXHGDVDUHVXOWRIDPRUWL]DWLRQRIUHVWULFWHGVWRFN LVVXHGE\3DUHQW&RPSDQ\ ² ² ² 80 &RPPRQXQLWVH[FKDQJHGIRUFRPPRQVWRFNRIWKH3DUHQW&RPSDQ\ ² ² ² ² &RPPRQXQLWVLVVXHGDVDUHVXOWRIFRPPRQVWRFNLVVXHGE\3DUHQW &RPSDQ\QHWRIUHSXUFKDVHV ² ² ² Balance at December 31, 2014 $ 1,964,340 (1,914) (57,748) 1,904,678 31,804 1,936,482 1HWLQFRPH ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² 'LVWULEXWLRQVWRSDUWQHUV ² 3UHIHUUHGXQLWGLVWULEXWLRQV ² ² ² 5HVWULFWHGXQLWVLVVXHGDVDUHVXOWRIDPRUWL]DWLRQRIUHVWULFWHGVWRFN LVVXHGE\3DUHQW&RPSDQ\ ² ² ² &RPPRQXQLWVLVVXHGDVDUHVXOWRIFRPPRQVWRFNLVVXHGE\3DUHQW &RPSDQ\QHWRIUHSXUFKDVHV ² ² ² Balance at December 31, 2015 $ 2,112,802 (1,975) (58,693) 2,052,134 30,486 2,082,620 1HWLQFRPH ² 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ² &RQWULEXWLRQVIURPSDUWQHUV ² ² ² ² 'LVWULEXWLRQVWRSDUWQHUV ² 5HDOORFDWLRQRIOLPLWHGSDUWQHUV LQWHUHVW ² ² ² REGENCY CENTERS, L.P. Consolidated Statements of Capital For the years ended December 31, 2016, 2015, and 2014 (in thousands) Noncontrolling Interests in Accumulated Limited Partners’ General Partner Other Total Interest in Preferred and Limited Comprehensive Partners’ Consolidated Total Common Units Partners Loss Capital Partnerships Capital 5HGHPSWLRQRISUHIHUUHGXQLWV ²² ² ² ² ² 3UHIHUUHGXQLWGLVWULEXWLRQV ² ² ² 5HVWULFWHGXQLWVLVVXHGDVDUHVXOWRIDPRUWL]DWLRQRIUHVWULFWHGVWRFN LVVXHGE\3DUHQW&RPSDQ\ ² ² ² &RPPRQXQLWVLVVXHGDVDUHVXOWRIFRPPRQVWRFNLVVXHGE\3DUHQW &RPSDQ\QHWRIUHSXUFKDVHV ² ² ² Balance at December 31, 2016 $ 2,609,647 (1,967) (18,346) 2,589,334 35,168 2,624,502 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 81 REGENCY CENTERS, L.P. Consolidated Statements of Cash Flows For the years ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 &DVKIORZVIURPRSHUDWLQJDFWLYLWLHV 1HWLQFRPH $GMXVWPHQWVWRUHFRQFLOHQHWLQFRPHWRQHWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ $PRUWL]DWLRQRIGHIHUUHGORDQFRVWDQGGHEWSUHPLXP $PRUWL]DWLRQDQG DFFUHWLRQ RIDERYHDQGEHORZPDUNHWOHDVHLQWDQJLEOHVQHW 6WRFNEDVHGFRPSHQVDWLRQQHWRIFDSLWDOL]DWLRQ (TXLW\LQLQFRPHRILQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV *DLQRQUHPHDVXUHPHQWRILQYHVWPHQWLQUHDOHVWDWHSDUWQHUVKLS ² ² *DLQRQVDOHRIUHDOHVWDWHQHWRIWD[ 3URYLVLRQIRULPSDLUPHQW ² (DUO\H[WLQJXLVKPHQWRIGHEW 'HIHUUHGLQFRPHWD[H[SHQVHRIWD[DEOH5(,7VXEVLGLDU\ ² ² ² 'LVWULEXWLRQRIHDUQLQJVIURPRSHUDWLRQVRILQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV 6HWWOHPHQWRIGHULYDWLYHLQVWUXPHQWV ² *DLQRQGHULYDWLYHLQVWUXPHQWV ² ² 'HIHUUHGFRPSHQVDWLRQH[SHQVH 5HDOL]HGDQGXQUHDOL]HGJDLQRQLQYHVWPHQWV QRWH &KDQJHVLQDVVHWVDQGOLDELOLWLHV 5HVWULFWHGFDVK $FFRXQWVUHFHLYDEOHQHW 6WUDLJKWOLQHUHQWUHFHLYDEOHQHW 'HIHUUHGOHDVLQJFRVWV 2WKHUDVVHWV $FFRXQWVSD\DEOHDQGRWKHUOLDELOLWLHV 7HQDQWV¶VHFXULW\DQGHVFURZGHSRVLWVDQGSUHSDLGUHQW 1HWFDVKSURYLGHGE\RSHUDWLQJDFWLYLWLHV &DVKIORZVIURPLQYHVWLQJDFWLYLWLHV $FTXLVLWLRQRIRSHUDWLQJUHDOHVWDWH $GYDQFHGHSRVLWVSDLGRQDFTXLVLWLRQRIRSHUDWLQJUHDOHVWDWH ² 5HDOHVWDWHGHYHORSPHQWDQGFDSLWDOLPSURYHPHQWV 3URFHHGVIURPVDOHRIUHDOHVWDWHLQYHVWPHQWV &ROOHFWLRQRIQRWHVUHFHLYDEOH ² ² ,QYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV 'LVWULEXWLRQVUHFHLYHGIURPLQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV 'LYLGHQGVRQLQYHVWPHQWVHFXULWLHV $FTXLVLWLRQRIVHFXULWLHV 3URFHHGVIURPVDOHRIVHFXULWLHV 1HWFDVKXVHGLQLQYHVWLQJDFWLYLWLHV 82 REGENCY CENTERS, L.P. Consolidated Statements of Cash Flows For the years ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 &DVKIORZVIURPILQDQFLQJDFWLYLWLHV 1HWSURFHHGVIURPFRPPRQXQLWVLVVXHGDVDUHVXOWRIFRPPRQVWRFNLVVXHGE\3DUHQW &RPSDQ\ 3URFHHGVIURPWUHDVXU\XQLWVLVVXHGDVDUHVXOWRIWUHDVXU\VWRFNVROGE\3DUHQW&RPSDQ\ ² ² $FTXLVLWLRQRIWUHDVXU\XQLWVDVDUHVXOWRIWUHDVXU\VWRFNDFTXLUHGE\3DUHQW&RPSDQ\ ² ² 5HGHPSWLRQRISUHIHUUHGSDUWQHUVKLSXQLWV ² ² 'LVWULEXWLRQVWROLPLWHGSDUWQHUVLQFRQVROLGDWHGSDUWQHUVKLSVQHW 'LVWULEXWLRQVWRSDUWQHUV 'LVWULEXWLRQVWRSUHIHUUHGXQLWKROGHUV 5HSD\PHQWRIIL[HGUDWHXQVHFXUHGQRWHV 3URFHHGVIURPLVVXDQFHRIIL[HGUDWHXQVHFXUHGQRWHVQHW ² 3URFHHGVIURPXQVHFXUHGFUHGLWIDFLOLWLHV 5HSD\PHQWRIXQVHFXUHGFUHGLWIDFLOLWLHV 3URFHHGVIURPQRWHVSD\DEOH 5HSD\PHQWRIQRWHVSD\DEOH 6FKHGXOHGSULQFLSDOSD\PHQWV 3D\PHQWRIORDQFRVWV (DUO\UHGHPSWLRQFRVWV ² 1HWFDVKSURYLGHGE\ XVHGLQ ILQDQFLQJDFWLYLWLHV 1HWGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRIWKH\HDU &DVKDQGFDVKHTXLYDOHQWVDWHQGRIWKH\HDU 6XSSOHPHQWDOGLVFORVXUHRIFDVKIORZLQIRUPDWLRQ &DVKSDLGIRULQWHUHVW QHWRIFDSLWDOL]HGLQWHUHVWRIDQGLQ DQGUHVSHFWLYHO\ &DVKSDLGIRULQFRPHWD[HV ² 6XSSOHPHQWDOGLVFORVXUHRIQRQFDVKWUDQVDFWLRQV &RPPRQVWRFNLVVXHGE\3DUHQW&RPSDQ\IRUSDUWQHUVKLSXQLWVH[FKDQJHG ² ² 0RUWJDJHORDQVDVVXPHGIRUWKHDFTXLVLWLRQRIUHDOHVWDWH ² &KDQJHLQIDLUYDOXHRIVHFXULWLHVDYDLODEOHIRUVDOH ² ,QLWLDOIDLUYDOXHRIQRQFRQWUROOLQJLQWHUHVWUHFRUGHGDWDFTXLVLWLRQ ² ² $FTXLVLWLRQRISUHYLRXVO\XQFRQVROLGDWHGUHDOHVWDWHLQYHVWPHQWV ² ² &KDQJHLQIDLUYDOXHRIGHULYDWLYHLQVWUXPHQWV &RPPRQVWRFNLVVXHGE\3DUHQW&RPSDQ\IRUGLYLGHQGUHLQYHVWPHQWSODQ 6WRFNEDVHGFRPSHQVDWLRQFDSLWDOL]HG &RQWULEXWLRQVIURPOLPLWHGSDUWQHUVLQFRQVROLGDWHGSDUWQHUVKLSVQHW &RPPRQVWRFNLVVXHGIRUGLYLGHQGUHLQYHVWPHQWLQWUXVW &RQWULEXWLRQRIVWRFNDZDUGVLQWRWUXVW 'LVWULEXWLRQRIVWRFNKHOGLQWUXVW 'HFRQVROLGDWLRQRISUHYLRXVO\FRQVROLGDWHGSDUWQHUVKLS 5HDOHVWDWHQHW ² ² ,QYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV ² ² 1RWHVSD\DEOH ² ² 2WKHUDVVHWVDQGOLDELOLWLHV ²² /LPLWHGSDUWQHUV LQWHUHVWLQFRQVROLGDWHGSDUWQHUVKLSV ² ² 6HHDFFRPSDQ\LQJQRWHVWRFRQVROLGDWHGILQDQFLDOVWDWHPHQWV 83 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. 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Notes to Consolidated Financial Statements December 31, 2016 PDWHULDOWR&RPSDQ\LQGLYLGXDOO\RULQWKHDJJUHJDWH5HVXOWVRIRSHUDWLRQVUHODWHGWRWKHDFTXLVLWLRQRI0DUNHW &RPPRQ&ODUHQGRQUHVXOWHGLQWKHIROORZLQJLPSDFWWR5HYHQXHVDQG1HWLQFRPHDWWULEXWDEOHWRFRPPRQ VWRFNKROGHUVDVIROORZV LQWKRXVDQGV Year ended December 31, 2016 ,QFUHDVHLQWRWDOUHYHQXHV ,QFUHDVHLQQHWLQFRPHDWWULEXWDEOHWRFRPPRQVWRFNKROGHUV ,QFOXGHVPLOOLRQRIWUDQVDFWLRQFRVWVGXULQJWKH\HDUHQGHG'HFHPEHUZKLFKDUHUHFRUGHGLQ 2WKHURSHUDWLQJH[SHQVHVLQWKHDFFRPSDQ\LQJ&RQVROLGDWHG6WDWHPHQWVRI2SHUDWLRQV 7KHIROORZLQJXQDXGLWHGSURIRUPDILQDQFLDOGDWDLQFOXGHVWKHLQFUHPHQWDOUHYHQXHVRSHUDWLQJH[SHQVHVGHSUHFLDWLRQ DQGDPRUWL]DWLRQDQGFRVWVRIILQDQFLQJWKH0DUNHW&RPPRQ&ODUHQGRQDFTXLVLWLRQDVLILWKDGRFFXUUHGRQ-DQXDU\ 3UR)RUPD Year ended December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eighted Average Amortization Period $VVHWV (in years) ,QSODFHOHDVHV /LDELOLWLHV $FTXLUHGOHDVHLQWDQJLEOHOLDELOLWLHV Pending Merger with Equity One )RUPRUHLQIRUPDWLRQDERXWWKHVKDUHKROGHUDSSURYHGEXWQRW\HWFRQVXPPDWHGPHUJHUVHHQRWH6XEVHTXHQW (YHQWV 98 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 3URSHUW\'LVSRVLWLRQV Dispositions 7KHIROORZLQJWDEOHSURYLGHVDVXPPDU\RIFRQVROLGDWHGVKRSSLQJFHQWHUVDQGODQGSDUFHOVGLVSRVHGRI Year ended December 31, LQWKRXVDQGV 2016 2015 2014 1HWSURFHHGVIURPVDOHRIUHDOHVWDWHLQYHVWPHQWV *DLQRQVDOHRIUHDOHVWDWHQHWRIWD[ 3URYLVLRQIRULPSDLUPHQWRIUHDOHVWDWHVROG ² 1XPEHURIRSHUDWLQJSURSHUWLHVVROG 1XPEHURIODQGRXWSDUFHOVVROG ,QFOXGHVFDVKGHSRVLWVUHFHLYHGLQWKHSUHYLRXV\HDU ,QYHVWPHQWVLQ5HDO(VWDWH3DUWQHUVKLSV 7KH&RPSDQ\LQYHVWVLQUHDOHVWDWHSDUWQHUVKLSVZKLFKFRQVLVWRIWKHIROORZLQJ December 31, 2016 The Company's Share of Net Number Total Assets Net Income Income of Regency's of Total of the of the the LQWKRXVDQGV Ownership Properties Investment Partnership Partnership Partnership *5,5HJHQF\//& *5,5 &ROXPELD5HJHQF\5HWDLO3DUWQHUV//& &ROXPELD, &ROXPELD5HJHQF\3DUWQHUV,,//& &ROXPELD,, &DPHURQ9LOODJH//& &DPHURQ 5HJ&DO//& 5HJ&DO 865HJHQF\5HWDLO,//& 86$$ 2WKHULQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV 7RWDOLQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV December 31, 2015 The Company's Share of Net Number Total Assets Net Income Income of Regency's of Total of the of the the LQWKRXVDQGV Ownership Properties Investment Partnership Partnership Partnership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otes to Consolidated Financial Statements December 31, 2016 7KHVXPPDUL]HGEDODQFHVKHHWLQIRUPDWLRQIRUWKHLQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSVRQDFRPELQHGEDVLVLVDV IROORZV December 31, LQWKRXVDQGV 2016 2015 ,QYHVWPHQWVLQUHDOHVWDWHQHW $FTXLUHGOHDVHLQWDQJLEOHDVVHWVQHW 2WKHUDVVHWV 7RWDODVVHWV 1RWHVSD\DEOH $FTXLUHGOHDVHLQWDQJLEOHOLDELOLWLHVQHW 2WKHUOLDELOLWLHV &DSLWDO5HJHQF\ &DSLWDO7KLUGSDUWLHV 7RWDOOLDELOLWLHVDQGFDSLWDO 7KHIROORZLQJWDEOHUHFRQFLOHVWKH&RPSDQ\ VFDSLWDOUHFRUGHGE\WKHXQFRQVROLGDWHGSDUWQHUVKLSVWRWKH&RPSDQ\ V LQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSVUHSRUWHGLQWKHDFFRPSDQ\LQJFRQVROLGDWHGEDODQFHVKHHW December 31, LQWKRXVDQGV 2016 2015 &DSLWDO5HJHQF\ OHVV ,PSDLUPHQWRILQYHVWPHQWLQUHDOHVWDWHSDUWQHUVKLSV OHVV 2ZQHUVKLSSHUFHQWDJHRU5HVWULFWHG*DLQ0HWKRGGHIHUUDO OHVV 1HWERRNHTXLW\LQH[FHVVRISXUFKDVHSULFH ,QYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSV 7KHUHYHQXHVDQGH[SHQVHVIRUWKHLQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSVRQDFRPELQHGEDVLVDUHVXPPDUL]HGDV IROORZV Year ended December 31, LQWKRXVDQGV 2016 2015 2014 7RWDOUHYHQXHV 2SHUDWLQJH[SHQVHV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ 2SHUDWLQJDQGPDLQWHQDQFH *HQHUDODQGDGPLQLVWUDWLYH 5HDOHVWDWHWD[HV 2WKHURSHUDWLQJH[SHQVHV 7RWDORSHUDWLQJH[SHQVHV 2WKHUH[SHQVH LQFRPH ,QWHUHVWH[SHQVHQHW *DLQRQVDOHRIUHDOHVWDWH 3URYLVLRQIRULPSDLUPHQW ² (DUO\H[WLQJXLVKPHQWRIGHEW ² 2WKHUH[SHQVH LQFRPH 7RWDORWKHUH[SHQVH LQFRPH 1HWLQFRPHRIWKH3DUWQHUVKLSV 7KH&RPSDQ\ VVKDUHRIQHWLQFRPHRIWKH 3DUWQHUVKLSV 100 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 Acquisitions 7KHIROORZLQJWDEOHSURYLGHVDVXPPDU\RIVKRSSLQJFHQWHUVDQGODQGSDUFHOVDFTXLUHGWKURXJKRXUXQFRQVROLGDWHG UHDOHVWDWHSDUWQHUVKLSVZKLFKKDGQRDFTXLVLWLRQVIRUWKH\HDUHQGHG'HFHPEHU LQWKRXVDQGV Year ended December 31, 2016 Debt Assumed, Date Co-investment Ownership Purchase Net of Intangible Intangible Purchased Property Name City/State Property Type Partner % Price Premiums Assets Liabilities $SSOHZRRG 9LOODJH6KRSV 'HQYHU&2 2SHUDWLQJ *5,5 ² ² ² 3OD]D9HQH]LD 2UODQGR)/ 2SHUDWLQJ &ROXPELD,, Total property acquisitions /DQGSDUFHOVSXUFKDVHGDVDGGLWLRQVWRWKHRSHUDWLQJSURSHUW\ Dispositions 7KHIROORZLQJWDEOHSURYLGHVDVXPPDU\RIVKRSSLQJFHQWHUVDQGODQGRXWSDUFHOVGLVSRVHGRIWKURXJKRXU XQFRQVROLGDWHGUHDOHVWDWHSDUWQHUVKLSV Year ended December 31, LQWKRXVDQGV 2016 2015 2014 3URFHHGVIURPVDOHRIUHDOHVWDWHLQYHVWPHQWV *DLQRQVDOHRIUHDOHVWDWH 7KH&RPSDQ\ VVKDUHRIJDLQRQVDOHRIUHDOHVWDWH 1XPEHURIRSHUDWLQJSURSHUWLHVVROG 1XPEHURIODQGRXWSDUFHOVVROG ² Notes Payable 6FKHGXOHGSULQFLSDOUHSD\PHQWVRQQRWHVSD\DEOHKHOGE\RXUXQFRQVROLGDWHGLQYHVWPHQWVLQUHDOHVWDWHSDUWQHUVKLSVDV RI'HFHPEHUZHUHDVIROORZV Scheduled Regency’s Principal Mortgage Loan Unsecured Pro-Rata Scheduled Principal Payments and Maturities by Year: Payments Maturities Maturities Total Share ² ² ² ² ²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Notes to Consolidated Financial Statements December 31, 2016 7KHHVWLPDWHGDJJUHJDWHDPRUWL]DWLRQDQGQHWDFFUHWLRQDPRXQWVIURPDFTXLUHGOHDVHLQWDQJLEOHVIRUWKHQH[WILYH\HDUV DUHDVIROORZV LQWKRXVDQGV In Process Year Ending Amortization December 31, Expense Net Accretion 1RWHV3D\DEOHDQG8QVHFXUHG&UHGLW)DFLOLWLHV 7KH&RPSDQ\¶VRXWVWDQGLQJGHEWFRQVLVWVRIWKHIROORZLQJ December 31, LQWKRXVDQGV 2016 2015 1RWHVSD\DEOH )L[HGUDWHPRUWJDJHORDQV 9DULDEOHUDWHPRUWJDJHORDQV )L[HGUDWHXQVHFXUHGSXEOLFGHEW 7RWDOQRWHVSD\DEOH 8QVHFXUHGFUHGLWIDFLOLWLHV /LQH ² 7HUP/RDQ 7RWDOXQVHFXUHGFUHGLWIDFLOLWLHV 7RWDOGHEWRXWVWDQGLQJ ,QFOXGHVWKUHHPRUWJDJHVZKRVHLQWHUHVWYDULHVRQD/,%25EDVHGIRUPXOD(DFKRIWKHVHYDULDEOHUDWH ORDQVKDYHLQWHUHVWUDWHVZDSVLQSODFHWRIL[WKHLQWHUHVWUDWHVDWDUDQJHRIWR Notes Payable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nterest Rates Maturing Weighted Average Weighted Average Through Minimum Maximum Effective Rate Contractual Rate 0RUWJDJHORDQV )L[HGUDWHXQVHFXUHGSXEOLF GHEW 103 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. 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Notes to Consolidated Financial Statements December 31, 2016 7KHDERYHIDLUYDOXHVUHSUHVHQWPDQDJHPHQW VHVWLPDWHRIWKHDPRXQWVWKDWZRXOGEHUHFHLYHGIURPVHOOLQJWKRVHDVVHWV RUWKDWZRXOGEHSDLGWRWUDQVIHUWKRVHOLDELOLWLHVLQDQRUGHUO\WUDQVDFWLRQEHWZHHQPDUNHWSDUWLFLSDQWVDVRI 'HFHPEHUDQG7KHVHIDLUYDOXHPHDVXUHPHQWVPD[LPL]HWKHXVHRIREVHUYDEOHLQSXWV+RZHYHULQ VLWXDWLRQVZKHUHWKHUHLVOLWWOHLIDQ\PDUNHWDFWLYLW\IRUWKHDVVHWRUOLDELOLW\DWWKHPHDVXUHPHQWGDWHWKHIDLUYDOXH PHDVXUHPHQWUHIOHFWVWKH&RPSDQ\ VRZQMXGJPHQWVDERXWWKHDVVXPSWLRQVWKDWPDUNHWSDUWLFLSDQWVZRXOGXVHLQ SULFLQJWKHDVVHWRUOLDELOLW\ 7KH&RPSDQ\GHYHORSVLWVMXGJPHQWVEDVHGRQWKHEHVWLQIRUPDWLRQDYDLODEOHDWWKHPHDVXUHPHQWGDWHLQFOXGLQJ H[SHFWHGFDVKIORZVDSSURSULDWHO\ULVNDGMXVWHGGLVFRXQWUDWHVDQGDYDLODEOHREVHUYDEOHDQGXQREVHUYDEOHLQSXWV 6HUYLFHSURYLGHUVLQYROYHGLQIDLUYDOXHPHDVXUHPHQWVDUHHYDOXDWHGIRUFRPSHWHQF\DQGTXDOLILFDWLRQVRQDQRQJRLQJ EDVLV$VFRQVLGHUDEOHMXGJPHQWLVRIWHQQHFHVVDU\WRHVWLPDWHWKHIDLUYDOXHRIWKHVHILQDQFLDOLQVWUXPHQWVWKHIDLU YDOXHVSUHVHQWHGDERYHDUHQRWQHFHVVDULO\LQGLFDWLYHRIDPRXQWVWKDWZLOOEHUHDOL]HGXSRQGLVSRVLWLRQRIWKHILQDQFLDO LQVWUXPHQWV 7KHIROORZLQJPHWKRGVDQGDVVXPSWLRQVZHUHXVHGWRHVWLPDWHWKHIDLUYDOXHRIWKHVHILQDQFLDOLQVWUXPHQWV 1RWHV5HFHLYDEOH 7KHIDLUYDOXHRIWKH&RPSDQ\ VQRWHVUHFHLYDEOHLVHVWLPDWHGE\FDOFXODWLQJWKHSUHVHQWYDOXHRIIXWXUHFRQWUDFWXDO FDVKIORZVGLVFRXQWHGDWLQWHUHVWUDWHVDYDLODEOHIRUQRWHVRIWKHVDPHWHUPVDQGPDWXULWLHVDGMXVWHGIRUFRXQWHUSDUW\ VSHFLILFFUHGLWULVN7KHIDLUYDOXHRIQRWHVUHFHLYDEOHZDVGHWHUPLQHGSULPDULO\XVLQJ/HYHOLQSXWVRIWKHIDLUYDOXH KLHUDUFK\ZKLFKFRQVLGHUHGFRXQWHUSDUW\FUHGLWULVNDQGFROODWHUDOULVNRIWKHXQGHUO\LQJSURSHUW\VHFXULQJWKHQRWH UHFHLYDEOH 1RWHV3D\DEOH 7KHIDLUYDOXHRIWKH&RPSDQ\ VXQVHFXUHGGHEWLVHVWLPDWHGEDVHGRQWKHTXRWHGPDUNHWSULFHVIRUWKHVDPHRUVLPLODU LVVXHVRURQWKHFXUUHQWUDWHVRIIHUHGWRWKH&RPSDQ\IRUGHEWRIWKHVDPHUHPDLQLQJPDWXULWLHV7KHIDLUYDOXHRI WKHXQVHFXUHGGHEWZDVGHWHUPLQHGXVLQJ/HYHOLQSXWVRIWKHIDLUYDOXHKLHUDUFK\ 7KHIDLUYDOXHRIWKH&RPSDQ\ VPRUWJDJHQRWHVSD\DEOHLVHVWLPDWHGE\GLVFRXQWLQJIXWXUHFDVKIORZVRIHDFK LQVWUXPHQWDWUDWHVWKDWUHIOHFWWKHFXUUHQWPDUNHWUDWHVDYDLODEOHWRWKH&RPSDQ\IRUGHEWRIWKHVDPHWHUPVDQG PDWXULWLHV)L[HGUDWHORDQVDVVXPHGLQFRQQHFWLRQZLWKUHDOHVWDWHDFTXLVLWLRQVDUHUHFRUGHGLQWKHDFFRPSDQ\LQJ FRQVROLGDWHGILQDQFLDOVWDWHPHQWVDWIDLUYDOXHDWWKHWLPHWKHSURSHUW\LVDFTXLUHG7KHIDLUYDOXHRIWKHPRUWJDJH QRWHVSD\DEOHZDVGHWHUPLQHGXVLQJ/HYHOLQSXWVRIWKHIDLUYDOXHKLHUDUFK\ 8QVHFXUHG&UHGLW)DFLOLWLHV 7KHIDLUYDOXHRIWKH&RPSDQ\ V8QVHFXUHGFUHGLWIDFLOLWLHVLVHVWLPDWHGEDVHGRQWKHLQWHUHVWUDWHVFXUUHQWO\RIIHUHG WRWKH&RPSDQ\E\ILQDQFLDOLQVWLWXWLRQV7KHIDLUYDOXHRIWKHFUHGLWIDFLOLWLHVZDVGHWHUPLQHGXVLQJ/HYHOLQSXWV RIWKHIDLUYDOXHKLHUDUFK\ 7KHIROORZLQJLQWHUHVWUDWHVZHUHXVHGE\WKH&RPSDQ\WRHVWLPDWHWKHIDLUYDOXHRILWVILQDQFLDOLQVWUXPHQWV December 31, 2016 2015 Low High Low High 1RWHVUHFHLYDEOH 1RWHVSD\DEOH 8QVHFXUHGFUHGLWIDFLOLWLHV 107 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December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otes to Consolidated Financial Statements December 31, 2016 7KHIROORZLQJWDEOHSUHVHQWVWKHSODFHPHQWLQWKHIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVWKDWDUHPHDVXUHGDWIDLU YDOXHRQDUHFXUULQJEDVLV Fair Value Measurements as of December 31, 2016 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs LQWKRXVDQGV Balance (Level 1) (Level 2) (Level 3) Assets: 7UDGLQJVHFXULWLHVKHOGLQWUXVW ² ² $YDLODEOHIRUVDOHVHFXULWLHV ² ² ,QWHUHVWUDWHGHULYDWLYHV ² ² 7RWDO ² Liabilities: ,QWHUHVWUDWHGHULYDWLYHV ² ² Fair Value Measurements as of December 31, 2015 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs LQWKRXVDQGV Balance (Level 1) (Level 2) (Level 3) Assets: 7UDGLQJVHFXULWLHVKHOGLQWUXVW ² ² $YDLODEOHIRUVDOHVHFXULWLHV ² ² 7RWDO ² Liabilities: ,QWHUHVWUDWHGHULYDWLYHV ² ² (TXLW\DQG&DSLWDO 3UHIHUUHG6WRFNRIWKH3DUHQW&RPSDQ\ 7HUPVDQGFRQGLWLRQVRIWKHSUHIHUUHGVWRFNRXWVWDQGLQJDUHVXPPDUL]HGDVIROORZV Preferred Stock Outstanding as of December 31, 2016 and 2015 Shares Issued and Liquidation Callable Date of Issuance Outstanding Preference Distribution Rate By Company 6HULHV 6HULHV 7KH6HULHVDQGSUHIHUUHGVKDUHVDUHSHUSHWXDODEVHQWDFKDQJHLQFRQWURORIWKH3DUHQW&RPSDQ\DUHQRW FRQYHUWLEOHLQWRFRPPRQVWRFNRIWKH3DUHQW&RPSDQ\DQGDUHUHGHHPDEOHDWSDUXSRQWKH&RPSDQ\¶VHOHFWLRQ EHJLQQLQJ\HDUVDIWHUWKHLVVXDQFHGDWH1RQHRIWKHWHUPVRIWKHSUHIHUUHGVWRFNFRQWDLQDQ\XQFRQGLWLRQDO REOLJDWLRQVWKDWZRXOGUHTXLUHWKH&RPSDQ\WRUHGHHPWKHVHFXULWLHVDWDQ\WLPHRUIRUDQ\SXUSRVH Preferred Shares Redemption - Subsequent Event 6XEVHTXHQWWR'HFHPEHURQ)HEUXDU\WKH3DUHQW&RPSDQ\UHGHHPHGDOORIWKHLVVXHGDQG RXWVWDQGLQJ6HULHVFXPXODWLYHUHGHHPDEOHSUHIHUUHGVKDUHV7KHUHGHPSWLRQSULFHRISHUVKDUH LQFOXGHVDFFUXHGDQGXQSDLGGLYLGHQGVUHVXOWLQJLQDQDJJUHJDWHDPRXQWEHLQJSDLGRIPLOOLRQ7KHIXQGV 109 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 XVHWRUHGHHPWKH6HULHVSUHIHUUHGVKDUHVZHUHSURYLGHGE\WKHVHQLRUXQVHFXUHGGHEWRIIHULQJGRQHLQ-DQXDU\ DVGLVFXVVHGLQQRWH &RPPRQ6WRFNRIWKH3DUHQW&RPSDQ\ Issuances: At the Market ("ATM") Program 8QGHUWKH3DUHQW&RPSDQ\ V0DUFKSURVSHFWXVVXSSOHPHQWILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH &RPPLVVLRQZLWKUHVSHFWWRDQ$70HTXLW\RIIHULQJSURJUDPWKH3DUHQW&RPSDQ\PD\VHOOXSWRPLOOLRQ RIFRPPRQVWRFNDWSULFHVGHWHUPLQHGE\WKHPDUNHWDWWKHWLPHRIVDOH$VRI'HFHPEHUPLOOLRQ LQFRPPRQVWRFNUHPDLQHGDYDLODEOHIRULVVXDQFHXQGHUWKLV$70HTXLW\SURJUDP 7KHIROORZLQJWDEOHSUHVHQWVWKHVKDUHVWKDWZHUHLVVXHGXQGHUWKH$70HTXLW\SURJUDPZKLFKZDVXVHGWRIXQG LQYHVWPHQWDFWLYLWLHV Year ended December 31, GROODUDPRXQWVDUHLQWKRXVDQGVH[FHSWSULFHSHUVKDUHGDWD 2016 2015 6KDUHVLVVXHG :HLJKWHGDYHUDJHSULFHSHUVKDUH *URVVSURFHHGV &RPPLVVLRQV ,VVXDQFHFRVWV ² 5HIOHFWVVKDUHVWUDGHGLQ'HFHPEHUDQGVHWWOHGLQ-DQXDU\HDFK\HDU Forward Equity Offering ,Q0DUFKWKH3DUHQW&RPSDQ\HQWHUHGLQWRDIRUZDUGVDOHDJUHHPHQW WKH)RUZDUG(TXLW\2IIHULQJ WR LVVXHPLOOLRQVKDUHVRILWVFRPPRQVWRFNDWDQRIIHULQJSULFHRISHUVKDUHEHIRUHDQ\XQGHUZULWLQJ GLVFRXQWDQGRIIHULQJH[SHQVHV ,Q-XQHWKH3DUHQW&RPSDQ\SDUWLDOO\VHWWOHGLWVIRUZDUGHTXLW\RIIHULQJE\GHOLYHULQJPLOOLRQVKDUHVRI QHZO\LVVXHGFRPPRQVWRFNUHFHLYLQJPLOOLRQRIQHWSURFHHGVZKLFKZHUHXVHGWRUHSD\WKH/LQH 7KHUHPDLQLQJPLOOLRQVKDUHVPXVWEHVHWWOHGXQGHUWKHIRUZDUGVDOHDJUHHPHQWSULRUWR-XQH Equity Offering ,Q-XO\WKH3DUHQW&RPSDQ\LVVXHGPLOOLRQVKDUHVRIFRPPRQVWRFNDW SHUVKDUHUHVXOWLQJLQQHW SURFHHGVRIPLOOLRQXVHGWR L UHGHHPLQ$XJXVWPLOOLRQRIQRWHVLQFOXGLQJDPDNHZKROH SD\PHQW LL VHWWOHIRUZDUGLQWHUHVWUDWHVZDSVDQG LLL IXQGLQYHVWPHQWDFWLYLWLHVDQGJHQHUDOFRUSRUDWHSXUSRVHV Tax Status of Dividends 7KHIROORZLQJWDEOHVXPPDUL]HVWKHWD[VWDWXVRIGLYLGHQGVSDLGRQRXUFRPPRQVKDUHV Year ended December 31, 2016 2015 2014 'LYLGHQGSHUVKDUH 2UGLQDU\LQFRPH &DSLWDOJDLQ 5HWXUQRIFDSLWDO 4XDOLILHGGLYLGHQGLQFRPH ² ² 110 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 3UHIHUUHG8QLWVRIWKH2SHUDWLQJ3DUWQHUVKLS 3UHIHUUHGXQLWVIRUWKH3DUHQW&RPSDQ\DUHRXWVWDQGLQJLQUHODWLRQWRWKH3DUHQW&RPSDQ\ VSUHIHUUHGVWRFNDV GLVFXVVHGDERYH &RPPRQ8QLWVRIWKH2SHUDWLQJ3DUWQHUVKLS Issuances: &RPPRQXQLWVZHUHLVVXHGWRWKH3DUHQW&RPSDQ\LQUHODWLRQWRWKH3DUHQW&RPSDQ\ VLVVXDQFHRIFRPPRQVWRFN DVGLVFXVVHGDERYH *HQHUDO3DUWQHUV 7KH3DUHQW&RPSDQ\DVJHQHUDOSDUWQHURZQHGWKHIROORZLQJ3DUWQHUVKLS8QLWVRXWVWDQGLQJ December 31, LQWKRXVDQGV 2016 2015 3DUWQHUVKLSXQLWVRZQHGE\WKHJHQHUDOSDUWQHU 3DUWQHUVKLSXQLWVRZQHGE\WKHOLPLWHGSDUWQHUV 7RWDOSDUWQHUVKLSXQLWVRXWVWDQGLQJ 3HUFHQWDJHRISDUWQHUVKLSXQLWVRZQHGE\WKHJHQHUDOSDUWQHU $FFXPXODWHG2WKHU&RPSUHKHQVLYH,QFRPH /RVV 7KHIROORZLQJWDEOHSUHVHQWVFKDQJHVLQWKHEDODQFHVRIHDFKFRPSRQHQWRI$2&, Controlling Interest Noncontrolling Interest Total Unrealized Unrealized gain (loss) on gain (loss) on Cash Available- Cash Available- Flow For-Sale Flow For-Sale LQWKRXVDQGV Hedges Securities AOCI Hedges Securities AOCI AOCI Balance as of December 31, 2013 $ (17,404) — (17,404) (479) — (479) (17,883) 2WKHUFRPSUHKHQVLYHLQFRPHEHIRUH UHFODVVLILFDWLRQV $PRXQWVUHFODVVLILHGIURPDFFXPXODWHG RWKHUFRPSUHKHQVLYHLQFRPH &XUUHQWSHULRGRWKHUFRPSUHKHQVLYH LQFRPHQHW ² ² Balance as of December 31, 2014 $ (57,748) — (57,748) (750) — (750) (58,498) 2WKHUFRPSUHKHQVLYHLQFRPHEHIRUH UHFODVVLILFDWLRQV ² $PRXQWVUHFODVVLILHGIURPDFFXPXODWHG RWKHUFRPSUHKHQVLYHLQFRPH ² ² &XUUHQWSHULRGRWKHUFRPSUHKHQVLYH LQFRPHQHW ² Balance as of December 31, 2015 $ (58,650) (43) (58,693) (785) — (785) (59,478) 2WKHUFRPSUHKHQVLYHLQFRPHEHIRUH UHFODVVLILFDWLRQV ² $PRXQWVUHFODVVLILHGIURPDFFXPXODWHG RWKHUFRPSUHKHQVLYHLQFRPH ² ² &XUUHQWSHULRGRWKHUFRPSUHKHQVLYH LQFRPHQHW ² Balance as of December 31, 2016 $ (18,327) (19) (18,346) (301) — (301) (18,647) 111 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 7KHIROORZLQJUHSUHVHQWVDPRXQWVUHFODVVLILHGRXWRI$2&,LQWRLQFRPH Affected Line Item (s) Where Net AOCI Component Amount Reclassified from AOCI into Income Income is Presented Year ended December 31, LQWKRXVDQGV 2016 2015 2014 ,QWHUHVWH[SHQVHDQG/RVVRQ ,QWHUHVWUDWHVZDSV GHULYDWLYHLQVWUXPHQWV 5HDOL]HGJDLQVRQVDOHRI DYDLODEOHIRUVDOHVHFXULWLHV ² ² 1HWLQYHVWPHQW LQFRPH ORVV 6WRFN%DVHG&RPSHQVDWLRQ 7KH&RPSDQ\UHFRUGHGVWRFNEDVHGFRPSHQVDWLRQLQJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHVLQWKHDFFRPSDQ\LQJ &RQVROLGDWHG6WDWHPHQWVRI2SHUDWLRQVWKHFRPSRQHQWVRIZKLFKDUHIXUWKHUGHVFULEHGEHORZ Year ended December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tock Option Awards 6WRFNRSWLRQVDUHJUDQWHGXQGHUWKH3ODQZLWKDQH[HUFLVHSULFHHTXDOWRWKH3DUHQW&RPSDQ\ VVWRFN VSULFHDWWKHGDWH RIJUDQW$OOVWRFNRSWLRQVJUDQWHGKDYHWHQ\HDUOLYHVFRQWDLQYHVWLQJWHUPVRIRQHWRILYH\HDUVIURPWKHGDWHRI JUDQWDQGVRPHKDYHGLYLGHQGHTXLYDOHQWULJKWV7KHIDLUYDOXHRIHDFKRSWLRQDZDUGLVHVWLPDWHGRQWKHGDWHRIJUDQW XVLQJWKH%ODFN6FKROHV0HUWRQFORVHGIRUP ³%ODFN6FKROHV´ RSWLRQYDOXDWLRQPRGHO7KH&RPSDQ\EHOLHYHVWKDW WKHXVHRIWKH%ODFN6FKROHVPRGHOPHHWVWKHIDLUYDOXHPHDVXUHPHQWREMHFWLYHVRI)$6%$6&7RSLFDQGUHIOHFWV DOOVXEVWDQWLYHFKDUDFWHULVWLFVRIWKHLQVWUXPHQWVEHLQJYDOXHG7KHUHZHUHQRVWRFNRSWLRQVJUDQWHGGXULQJWKH\HDUV HQGHG'HFHPEHURU7KHUHZHUHQRVWRFNRSWLRQVH[HUFLVHGIRUIHLWHGRUH[SLUHGGXULQJWKH\HDUV HQGHG'HFHPEHURU 112 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December 31, 2016 7KHIROORZLQJWDEOHVXPPDUL]HVVWRFNRSWLRQVRXWVWDQGLQJ Year ended December 31, 2016 Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Value Options Price Term (in years) (in thousands) 2XWVWDQGLQJDVRI'HFHPEHU 2XWVWDQGLQJDVRI'HFHPEHU 9HVWHGDVRI'HFHPEHU ([HUFLVDEOHDVRI'HFHPEHU 7KH&RPSDQ\LVVXHVQHZVKDUHVWRIXOILOORSWLRQH[HUFLVHVIURPLWVDXWKRUL]HGVKDUHVDYDLODEOH7KHWRWDOLQWULQVLF YDOXHRIRSWLRQVH[HUFLVHGGXULQJWKH\HDUHQGHG'HFHPEHUZDVDSSUR[LPDWHO\PLOOLRQ Restricted Stock Awards 7KH&RPSDQ\JUDQWVUHVWULFWHGVWRFNXQGHUWKH3ODQWRLWVHPSOR\HHVDVDIRUPRIORQJWHUPFRPSHQVDWLRQDQG UHWHQWLRQ7KHWHUPVRIHDFKUHVWULFWHGVWRFNJUDQWYDU\GHSHQGLQJXSRQWKHSDUWLFLSDQW VUHVSRQVLELOLWLHVDQGSRVLWLRQ ZLWKLQWKH&RPSDQ\7KH&RPSDQ\ VVWRFNJUDQWVFDQEHFDWHJRUL]HGDVHLWKHUWLPHEDVHGDZDUGVSHUIRUPDQFHEDVHG DZDUGVRUPDUNHWEDVHGDZDUGV$OODZDUGVDUHYDOXHGDWIDLUYDOXHHDUQGLYLGHQGVWKURXJKRXWWKHYHVWLQJSHULRG DQGKDYHQRYRWLQJULJKWV)DLUYDOXHLVPHDVXUHGXVLQJWKHJUDQWGDWHPDUNHWSULFHIRUDOOWLPHEDVHGRUSHUIRUPDQFH EDVHGDZDUGV0DUNHWEDVHGDZDUGVDUHYDOXHGXVLQJD0RQWH&DUORVLPXODWLRQWRHVWLPDWHWKHIDLUYDOXHEDVHGRQWKH SUREDELOLW\RIVDWLVI\LQJWKHPDUNHWFRQGLWLRQVDQGWKHSURMHFWHGVWRFNSULFHDWWKHWLPHRISD\RXWGLVFRXQWHGWRWKH YDOXDWLRQGDWHRYHUDWKUHH\HDUSHUIRUPDQFHSHULRG$VVXPSWLRQVLQFOXGHKLVWRULFYRODWLOLW\RYHUWKHSUHYLRXVWKUHH \HDUSHULRGULVNIUHHLQWHUHVWUDWHVDQG5HJHQF\ VKLVWRULFGDLO\UHWXUQDVFRPSDUHGWRWKHPDUNHWLQGH[6LQFHWKH DZDUGSD\RXWLQFOXGHVGLYLGHQGHTXLYDOHQWVDQGWKHWRWDOVKDUHKROGHUUHWXUQLQFOXGHVWKHYDOXHRIGLYLGHQGVQR GLYLGHQG\LHOGDVVXPSWLRQLVUHTXLUHGIRUWKHYDOXDWLRQ&RPSHQVDWLRQH[SHQVHLVPHDVXUHGDWWKHJUDQWGDWHDQG UHFRJQL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHUHTXLVLWHYHVWLQJSHULRGIRUWKHHQWLUHDZDUG 7KHIROORZLQJWDEOHVXPPDUL]HVQRQYHVWHGUHVWULFWHGVWRFNDFWLYLW\ Year ended December 31, 2016 Intrinsic Value Weighted Average Number of Shares (in thousands) Grant Price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otes to Consolidated Financial Statements December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ear ended December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k) Retirement Plan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on-Qualified Deferred Compensation Plan 7KH&RPSDQ\PDLQWDLQVDQRQTXDOLILHGGHIHUUHGFRPSHQVDWLRQSODQ ³14'&3´ ZKLFKDOORZVVHOHFWHPSOR\HHVDQG GLUHFWRUVWRGHIHUSDUWRUDOORIWKHLUFDVKERQXVGLUHFWRUIHHVDQGYHVWHGUHVWULFWHGVWRFNDZDUGV$OOFRQWULEXWLRQV LQWRWKHSDUWLFLSDQWV DFFRXQWVDUHIXOO\YHVWHGXSRQFRQWULEXWLRQWRWKH14'&3DQGDUHGHSRVLWHGLQD5DEELWUXVW 7KHIROORZLQJWDEOHUHIOHFWVWKHEDODQFHVRIWKHDVVHWVDQGGHIHUUHGFRPSHQVDWLRQOLDELOLWLHVRIWKH5DEELWUXVWLQWKH DFFRPSDQ\LQJ&RQVROLGDWHG%DODQFH6KHHWV Non Qualified Deferred Compensation Plan Component (1) Year ended December 31, LQWKRXVDQGV 2016 2015 Assets: 7UDGLQJVHFXULWLHVKHOGLQWUXVW Liabilities: $FFRXQWVSD\DEOHDQGRWKHUOLDELOLWLHV $VVHWVDQGOLDELOLWLHVRIWKH5DEELWUXVWDUHH[FOXVLYHRIWKHVKDUHVRIWKH&RPSDQ\ VFRPPRQVWRFN 5HDOL]HGDQGXQUHDOL]HGJDLQVDQGORVVHVRQWUDGLQJVHFXULWLHVDUHUHFRJQL]HGZLWKLQLQFRPHIURPGHIHUUHG FRPSHQVDWLRQSODQLQWKHDFFRPSDQ\LQJ&RQVROLGDWHG6WDWHPHQWVRI2SHUDWLRQV&KDQJHVLQSDUWLFLSDQWREOLJDWLRQV 114 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December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arent Company Earnings per Share 7KHIROORZLQJVXPPDUL]HVWKHFDOFXODWLRQRIEDVLFDQGGLOXWHGHDUQLQJVSHUVKDUH Year ended December 31, LQWKRXVDQGVH[FHSWSHUVKDUHGDWD 2016 2015 2014 Numerator: ,QFRPHIURPRSHUDWLRQVDWWULEXWDEOHWRFRPPRQVWRFNKROGHUVEDVLF ,QFRPHIURPRSHUDWLRQVDWWULEXWDEOHWRFRPPRQVWRFNKROGHUVGLOXWHG Denominator: :HLJKWHGDYHUDJHFRPPRQVKDUHVRXWVWDQGLQJIRUEDVLF(36 :HLJKWHGDYHUDJHFRPPRQVKDUHVRXWVWDQGLQJIRUGLOXWHG(36 ,QFRPHSHUFRPPRQVKDUH±EDVLF ,QFRPHSHUFRPPRQVKDUH±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perating Partnership Earnings per Unit 7KHIROORZLQJVXPPDUL]HVWKHFDOFXODWLRQRIEDVLFDQGGLOXWHGHDUQLQJVSHUXQLW Year ended December 31, LQWKRXVDQGVH[FHSWSHUVKDUHGDWD 2016 2015 2014 Numerator: ,QFRPHIURPRSHUDWLRQVDWWULEXWDEOHWRFRPPRQXQLWKROGHUVEDVLF ,QFRPHIURPRSHUDWLRQVDWWULEXWDEOHWRFRPPRQXQLWKROGHUVGLOXWHG Denominator: :HLJKWHGDYHUDJHFRPPRQXQLWVRXWVWDQGLQJIRUEDVLF(38 :HLJKWHGDYHUDJHFRPPRQXQLWVRXWVWDQGLQJIRUGLOXWHG(38 ,QFRPHSHUFRPPRQXQLW±EDVLF ,QFRPHSHUFRPPRQXQLW±GLOXWHG ,QFOXGHVWKHGLOXWLYHLPSDFWRIXQYHVWHGUHVWULFWHGVWRFNDQGIRUZDUGHTXLW\RIIHULQJXVLQJWKHWUHDVXU\VWRFN PHWKRG 115 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Notes to Consolidated Financial Statements December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n Process Year Ending Future Minimum Rents December 31, (in thousands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n Process Year Ending Future Obligations December 31, (in thousands) 7KHUHDIWHU 7RWDO &RPPLWPHQWVDQG&RQWLQJHQFLHV 7KH&RPSDQ\LVLQYROYHGLQOLWLJDWLRQRQDQXPEHURIPDWWHUVDQGLVVXEMHFWWRFHUWDLQFODLPVZKLFKDULVHLQWKH QRUPDOFRXUVHRIEXVLQHVVQRQHRIZKLFKLQWKHRSLQLRQRIPDQDJHPHQWLVH[SHFWHGWRKDYHDPDWHULDODGYHUVHHIIHFW RQWKH&RPSDQ\ VFRQVROLGDWHGILQDQFLDOSRVLWLRQUHVXOWVRIRSHUDWLRQVRUOLTXLGLW\/HJDOIHHVDUHH[SHQVHGDV LQFXUUHG 116 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. 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Notes to Consolidated Financial Statements December 31, 2016 6XPPDU\RI4XDUWHUO\)LQDQFLDO'DWD 8QDXGLWHG 7KHIROORZLQJWDEOHVXPPDUL]HVVHOHFWHG4XDUWHUO\)LQDQFLDO'DWDIRUWKH&RPSDQ\RQDKLVWRULFDOEDVLVIRUWKH\HDUV HQGHG'HFHPEHUDQG First Second Third Fourth LQWKRXVDQGVH[FHSWSHUVKDUHDQGSHUXQLWGDWD Quarter Quarter Quarter Quarter Year ended December 31, 2016 2SHUDWLQJ'DWD 5HYHQXH 1HWLQFRPHDWWULEXWDEOHWRFRPPRQVWRFNKROGHUV 1HWLQFRPHDWWULEXWDEOHWRH[FKDQJHDEOHRSHUDWLQJSDUWQHUVKLSXQLWV 1HWLQFRPHDWWULEXWDEOHWRFRPPRQXQLWKROGHUV 1HWLQFRPHDWWULEXWDEOHWRFRPPRQVWRFNDQGXQLWKROGHUVSHUVKDUHDQGXQLW %DVLF 'LOXWHG Year ended December 31, 2015 2SHUDWLQJ'DWD 5HYHQXH 1HWLQFRPHDWWULEXWDEOHWRFRPPRQVWRFNKROGHUV 1HWLQFRPHDWWULEXWDEOHWRH[FKDQJHDEOHRSHUDWLQJSDUWQHUVKLSXQLWV 1HWLQFRPHDWWULEXWDEOHWRFRPPRQXQLWKROGHUV 1HWLQFRPHDWWULEXWDEOHWRFRPPRQVWRFNDQGXQLWKROGHUVSHUVKDUHDQGXQLW %DVLF 'LOXWHG 6XEVHTXHQW(YHQWV Approval of Merger with Equity One, Inc. 2Q1RYHPEHU5HJHQF\HQWHUHGLQWRD0HUJHU$JUHHPHQWZLWK(TXLW\2QHSXUVXDQWWRZKLFKVXEMHFWWRWKH VDWLVIDFWLRQRUZDLYHURIFHUWDLQFRQGLWLRQV(TXLW\2QHZLOOPHUJHZLWKDQGLQWRWKH&RPSDQ\ZLWK5HJHQF\EHLQJ WKHVXUYLYLQJFRUSRUDWLRQ WKH³0HUJHU´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¶V DQG(TXLW\2QH¶VUHVSHFWLYHVWRFNKROGHUV LL WKHVKDUHVRI&RPSDQ\&RPPRQ6WRFNWREHLVVXHGLQWKH0HUJHUZLOO 118 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. 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Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages 6&RPPRQV7RZQ&HQWHU $PHULJH+HLJKWV7RZQ&HQWHU $QDVWDVLD3OD]D ² ² $VKEXUQ)DUP0DUNHW&HQWHU ² $VKIRUG3HULPHWHU ² $YHQWXUD6KRSSLQJ&HQWHU ² %DOERD0HVD6KRSSLQJ&HQWHU ² %HOOHYLHZ6TXDUH ² %HOPRQW&KDVH ² ² %HUNVKLUH&RPPRQV %ODFN5RFN %ORRPLQJGDOH6TXDUH ² 120 %RXOHYDUG&HQWHU ² %R\QWRQ/DNHV3OD]D ² %UHQWZRRG3OD]D ² %ULDUFOLII/D9LVWD ² %ULDUFOLII9LOODJH ² %ULFN:DON %ULGJHWRQ ² %ULJKWHQ3DUN ² %URRNO\Q6WDWLRQRQ5LYHUVLGH ² ² %XFNKHDG&RXUW ² %XFNOH\6TXDUH ² &DOLJR&URVVLQJ ² &DPEULGJH6TXDUH ² &DUPHO&RPPRQV ² &DUULDJH*DWH ² &HQWHUSODFHRI*UHHOH\,,, ² &KDVHZRRG3OD]D ² &KHUU\*URYH ² &LW\/LQH0DUNHW ² ² &LW\/LQH0DUNHW3K,, ² ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages &OD\WRQ9DOOH\6KRSSLQJ&HQWHU ² &O\ERXUQ&RPPRQV ² &RFKUDQ V&URVVLQJ ² &RUNVFUHZ9LOODJH &RUQHUVWRQH6TXDUH ² &RUYDOOLV0DUNHW&HQWHU ² &RVWD9HUGH&HQWHU ² &RXUW\DUG/DQGFRP ² &XOSHSHU&RORQQDGH ² 'DUGHQQH&URVVLQJ ² 'HON6SHFWUXP ² 'LDEOR3OD]D ² 121 'XQZRRG\9LOODJH ² (DVW3RLQWH ² (DVW:DVKLQJWRQ3ODFH ² (O&DPLQR6KRSSLQJ&HQWHU ² (O&HUULWR3OD]D (O1RUWH3DUNZD\3OD]D ² (QFLQD*UDQGH ² )DLUID[6KRSSLQJ&HQWHU ² )DLUILHOG ² )DOFRQ ² )HOOVZD\3OD]D )HQWRQ0DUNHWSODFH ² )OHPLQJ,VODQG ² )RXQWDLQ6TXDUH ² )UHQFK9DOOH\9LOODJH&HQWHU ² )ULDUV0LVVLRQ&HQWHU ² *DUGHQ&LW\ ² *DUGHQV6TXDUH ² *DWHZD\ ² *DWHZD\6KRSSLQJ&HQWHU ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages *HOVRQ V:HVWODNH0DUNHW3OD]D ² *OHQ2DN3OD]D ² *OHQZRRG9LOODJH ² *ROGHQ+LOOV3OD]D ² *UDQG5LGJH3OD]D +DQFRFN ² +DUSHWK9LOODJH)LHOGVWRQH ² +DUULV&URVVLQJ ² +HULWDJH/DQG ² ² ² ² +HULWDJH3OD]D ² ² +HUVKH\ ² +LEHUQLD3DYLOLRQ ² 122 +LFNRU\&UHHN3OD]D ² +LOOFUHVW9LOODJH ² +LOOWRS9LOODJH ² +LQVGDOH ² +ROO\3DUN ² +RZHOO0LOO9LOODJH ² +\GH3DUN ² ,QGLDQ6SULQJV ² ,QGLR7RZQH&HQWHU ² ,QJOHZRRG3OD]D ² -HIIHUVRQ6TXDUH ² .HOOHU7RZQ&HQWHU ² .HQW3ODFH .LUNZRRG&RPPRQV .ODKDQLH6KRSSLQJ&HQWHU ² .URJHU1HZ$OEDQ\&HQWHU ² /DNH3LQH3OD]D ² /HEDQRQ/HJDF\&HQWHU ² /LWWOHWRQ6TXDUH ² /OR\G.LQJ ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages /RHKPDQQV3OD]D&DOLIRUQLD ² /RZHU1D]DUHWK&RPPRQV ² 0DUNHWDW&RORQQDGH&HQWHU ² 0DUNHWDW3UHVWRQ)RUHVW ² 0DUNHWDW5RXQG5RFN ² 0DUNHW&RPPRQ&ODUHQGRQ ² ² 0DUNHWSODFH6KRSSLQJ&HQWHU ² 0DUNHWSODFHDW%ULDUJDWH ² 0LOOKRSSHU6KRSSLQJ&HQWHU ² 0RFNLQJELUG&RPPRQV 0RQXPHQW-DFNVRQ&UHHN ² 0RUQLQJVLGH3OD]D ² 123 0XUU\KLOO0DUNHWSODFH ² 1DSOHV:DON ² 1HZEHUU\6TXDUH ² 1HZODQG&HQWHU ² 1RFDWHH7RZQ&HQWHU ² 1RUWK+LOOV ² 1RUWKJDWH0DUNHWSODFH ² 1RUWKJDWH3OD]D 0D[WRZQ5RDG ² 1RUWKJDWH6TXDUH ² 1RUWKODNH9LOODJH ² 2DN6KDGH7RZQ&HQWHU 2DNEURRN3OD]D ² 2DNOHDI&RPPRQV ² 2FDOD&RUQHUV 2OG6W$XJXVWLQH3OD]D ² 3DFHV)HUU\3OD]D ² 3DQWKHU&UHHN ² 3HDUWUHH9LOODJH 3HUVLPPRQV3ODFH ² ² 3LNH&UHHN ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages 3LQH/DNH9LOODJH ² 3LQH7UHH3OD]D ² 3OD]D+HUPRVD 3RZHOO6WUHHW3OD]D ² 3RZHUV)HUU\6TXDUH ² 3RZHUV)HUU\9LOODJH ² 3UDLULH&LW\&URVVLQJ ² 3UHVWRQEURRN 3UHVWRQ2DNV ² 5HG%DQN ² 5HJHQF\&RPPRQV ² 5HJHQF\6TXDUH ² 124 5RQD3OD]D ² 5XVVHOO5LGJH ² 6DPPDPLVK+LJKODQGV ² 6DQ/HDQGUR3OD]D ² 6DQG\6SULQJV ² 6DXJXV ² 6HTXRLD6WDWLRQ 6KHUZRRG,, ² 6KRSSHV# ² ² 6KRSSHVRI*UDQGH2DN ² 6KRSVDW$UL]RQD ² 6KRSVDW&RXQW\&HQWHU ² 6KRSVDW(UZLQ0LOO 6KRSVDW-RKQV&UHHN ² 6KRSVDW0LUD9LVWD 6KRSVDW4XDLO&UHHN ² 6KRSVRQ0DLQ ² 6RXWK%D\9LOODJH ² 6RXWKFHQWHU ² 6RXWKSDUNDW&LQFR5DQFK ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages 6RXWK3RLQW&URVVLQJ ² 6WDUNH ² 6WHUOLQJ5LGJH 6WRQHZDOO ² 6WUDZIORZHU9LOODJH ² 6WURK5DQFK ² 6XQFRDVW&URVVLQJ ² 7DQDVERXUQH0DUNHW ² 7DVVDMDUD&URVVLQJ 7HFK5LGJH&HQWHU 7KH+XE+LOOFUHVW0DUNHW ² 7RZQ6TXDUH ² 125 7ZLQ&LW\3OD]D ² 7ZLQ3HDNV ² 8QLYHUVLW\&RPPRQV 9DOHQFLD&URVVURDGV ² 9LOODJHDW/D)ORUHVWD ² ² 9LOODJHDW/HH$LUSDUN ² 9LOODJH&HQWHU ² :DONHU&HQWHU ² :HOOHE\3OD]D ² :HOOLQJWRQ7RZQ6TXDUH :HVW3DUN3OD]D ² :HVWFKDVH :HVWFKHVWHU&RPPRQV ² :HVWFKHVWHU3OD]D ² :HVWODNH3OD]DDQG&HQWHU ² :HVWZRRG9LOODJH ² :LOORZ)HVWLYDO :RRGFURIW6KRSSLQJ&HQWHU ² :RRGPDQ9DQ1X\ ² :RRGPHQDQG5DQJHZRRG ² REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation December 31, 2016 (in thousands) Initial Cost Total Cost Net Cost Cost Capitalized Net of Building & Subsequent to Building & Accumulated Accumulated Shopping Centers (1) Land Improvements Acquisition (2) Land Improvements Total Depreciation Depreciation Mortgages :RRGVLGH&HQWUDO ² 7RWDO&RUSRUDWH$VVHWV ² ² ² ² /DQGKHOGIRUIXWXUHGHYHORSPHQW ² ² ² ² 3URSHUWLHVLQ'HYHORSPHQW ² ² ² $ 1,620,365 2,790,644 522,490 1,665,755 3,267,744 4,933,499 1,124,391 3,809,108 467,093 6HH,WHPPropertiesIRUJHRJUDSKLFORFDWLRQDQG\HDUHDFKRSHUDWLQJSURSHUW\ZDVDFTXLUHG 7KHQHJDWLYHEDODQFHIRUFRVWVFDSLWDOL]HGVXEVHTXHQWWRDFTXLVLWLRQFRXOGLQFOXGHRXWSDUFHOVVROGSURYLVLRQIRUORVVUHFRUGHGDQGGHPROLWLRQRISDUWRIWKHSURSHUW\IRU UHGHYHORSPHQW 6HHDFFRPSDQ\LQJUHSRUWRILQGHSHQGHQWUHJLVWHUHGSXEOLFDFFRXQWLQJILUP 126 REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P. Schedule III - Consolidated Real Estate and Accumulated Depreciation, continued December 31, 2016 (in thousands) 'HSUHFLDWLRQDQGDPRUWL]DWLRQRIWKH&RPSDQ\ VLQYHVWPHQWLQEXLOGLQJVDQGLPSURYHPHQWVUHIOHFWHGLQWKHVWDWHPHQWVRI RSHUDWLRQVLVFDOFXODWHGRYHUWKHHVWLPDWHGXVHIXOOLYHVRIWKHDVVHWVZKLFKDUHXSWR\HDUV7KHDJJUHJDWHFRVWIRUIHGHUDO LQFRPHWD[SXUSRVHVZDVDSSUR[LPDWHO\ELOOLRQDW'HFHPEHU 7KHFKDQJHVLQWRWDOUHDOHVWDWHDVVHWVIRUWKH\HDUVHQGHG'HFHPEHUDQGDUHDVIROORZV LQWKRXVDQGV 2016 2015 2014 %HJLQQLQJEDODQFH $FTXLUHGSURSHUWLHV 'HYHORSPHQWVDQGLPSURYHPHQWV 6DOHRISURSHUWLHV 3URYLVLRQIRULPSDLUPHQW ² (QGLQJEDODQFH 7KHFKDQJHVLQDFFXPXODWHGGHSUHFLDWLRQIRUWKH\HDUVHQGHG'HFHPEHUDQGDUHDVIROORZV LQWKRXVDQGV 2016 2015 2014 %HJLQQLQJEDODQFH 'HSUHFLDWLRQH[SHQVH 6DOHRISURSHUWLHV 3URYLVLRQIRULPSDLUPHQW ² ² (QGLQJEDODQFH 6HHDFFRPSDQ\LQJUHSRUWRILQGHSHQGHQWUHJLVWHUHGSXEOLFDFFRXQWLQJILUP Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 1RQH Item 9A. Controls and Procedures Controls and Procedures (Regency Centers Corporation) Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures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anagement's Report on Internal Control over Financial Reporting 7KH3DUHQW&RPSDQ\ VPDQDJHPHQWLVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJDGHTXDWHLQWHUQDOFRQWURORYHU ILQDQFLDOUHSRUWLQJDVVXFKWHUPLVGHILQHGLQ([FKDQJH$FW5XOHVD I DQGG I 8QGHUWKHVXSHUYLVLRQDQGZLWKWKH SDUWLFLSDWLRQRILWVPDQDJHPHQWLQFOXGLQJLWVFKLHIH[HFXWLYHRIILFHUDQGFKLHIILQDQFLDORIILFHUWKH3DUHQW&RPSDQ\FRQGXFWHG DQHYDOXDWLRQRIWKHHIIHFWLYHQHVVRILWVLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJEDVHGRQWKHIUDPHZRUNLQInternal Control - 127 Integrated FrameworkLVVXHGE\WKH&RPPLWWHHRI6SRQVRULQJ2UJDQL]DWLRQVRIWKH7UHDGZD\&RPPLVVLRQ%DVHGRQLWV HYDOXDWLRQXQGHUWKHIUDPHZRUNLQInternal Control - Integrated Framework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hanges in Internal Controls 7KHUHKDYHEHHQQRFKDQJHVLQWKH3DUHQW&RPSDQ\ VLQWHUQDOFRQWUROVRYHUILQDQFLDOUHSRUWLQJLGHQWLILHGLQFRQQHFWLRQ ZLWKWKLVHYDOXDWLRQWKDWRFFXUUHGGXULQJWKHIRXUWKTXDUWHURIDQGWKDWKDYHPDWHULDOO\DIIHFWHGRUDUHUHDVRQDEO\OLNHO\WR PDWHULDOO\DIIHFWLWVLQWHUQDOFRQWUROVRYHUILQDQFLDOUHSRUWLQJ Controls and Procedures (Regency Centers, L.P.) Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures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anagement's Report on Internal Control over Financial Reporting 7KH2SHUDWLQJ3DUWQHUVKLS VPDQDJHPHQWLVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJDGHTXDWHLQWHUQDOFRQWURORYHU ILQDQFLDOUHSRUWLQJDVVXFKWHUPLVGHILQHGLQ([FKDQJH$FW5XOHVD I DQGG I 8QGHUWKHVXSHUYLVLRQDQGZLWKWKH SDUWLFLSDWLRQRILWVPDQDJHPHQWLQFOXGLQJWKHFKLHIH[HFXWLYHRIILFHUDQGFKLHIILQDQFLDORIILFHURILWVJHQHUDOSDUWQHUWKH 2SHUDWLQJ3DUWQHUVKLSFRQGXFWHGDQHYDOXDWLRQRIWKHHIIHFWLYHQHVVRILWVLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJEDVHGRQWKH IUDPHZRUNLQInternal Control - Integrated FrameworkLVVXHGE\WKH&RPPLWWHHRI6SRQVRULQJ2UJDQL]DWLRQVRIWKH7UHDGZD\ &RPPLVVLRQ%DVHGRQLWVHYDOXDWLRQXQGHUWKHIUDPHZRUNLQInternal Control - Integrated Framework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hanges in Internal Controls 7KHUHKDYHEHHQQRFKDQJHVLQWKH2SHUDWLQJ3DUWQHUVKLS VLQWHUQDOFRQWUROVRYHUILQDQFLDOUHSRUWLQJLGHQWLILHGLQ FRQQHFWLRQZLWKWKLVHYDOXDWLRQWKDWRFFXUUHGGXULQJWKHIRXUWKTXDUWHURIDQGWKDWKDYHPDWHULDOO\DIIHFWHGRUDUH UHDVRQDEO\OLNHO\WRPDWHULDOO\DIIHFWLWVLQWHUQDOFRQWUROVRYHUILQDQFLDOUHSRUWLQJ 128 Item 9B. Other Information 1RWDSSOLFDEOH PART III Item 10. Directors, Executive Officers, and Corporate Governance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tem 11. Executive Compensation ,QFRUSRUDWHGKHUHLQE\UHIHUHQFHWRRXUGHILQLWLYHSUR[\VWDWHPHQWWREHILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH &RPPLVVLRQZLWKLQGD\VDIWHUWKHHQGRIWKHILVFDO\HDUFRYHUHGE\WKLV)RUP.ZLWKUHVSHFWWRWKH$QQXDO 0HHWLQJRI6WRFNKROGHUV Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Equity Compensation Plan Information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³2PQLEXV3ODQ´ DVDSSURYHGE\VWRFNKROGHUVDW RXUDQQXDOPHHWLQJSURYLGHVWKDWDQDJJUHJDWHPD[LPXPRIPLOOLRQVKDUHVRIRXUFRPPRQVWRFNDUHUHVHUYHG IRULVVXDQFHXQGHUWKH2PQLEXV3ODQ ,QIRUPDWLRQDERXWVHFXULW\RZQHUVKLSLVLQFRUSRUDWHGKHUHLQE\UHIHUHQFHWRRXUGHILQLWLYHSUR[\VWDWHPHQWWREHILOHG ZLWKWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQZLWKLQGD\VDIWHUWKHHQGRIWKHILVFDO\HDUFRYHUHGE\WKLV)RUP.ZLWK UHVSHFWWRWKH$QQXDO0HHWLQJRI6WRFNKROGHUV 129 Item 13. Certain Relationships and Related Transactions, and Director Independence ,QFRUSRUDWHGKHUHLQE\UHIHUHQFHWRRXUGHILQLWLYHSUR[\VWDWHPHQWWREHILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH &RPPLVVLRQZLWKLQGD\VDIWHUWKHHQGRIWKHILVFDO\HDUFRYHUHGE\WKLV)RUP.ZLWKUHVSHFWWRWKH$QQXDO 0HHWLQJRI6WRFNKROGHUV Item 14. Principal Accountant Fees and Services ,QFRUSRUDWHGKHUHLQE\UHIHUHQFHWRRXUGHILQLWLYHSUR[\VWDWHPHQWWREHILOHGZLWKWKH6HFXULWLHVDQG([FKDQJH &RPPLVVLRQZLWKLQGD\VDIWHUWKHHQGRIWKHILVFDO\HDUFRYHUHGE\WKLV)RUP.ZLWKUHVSHFWWRWKH$QQXDO 0HHWLQJRI6WRFNKROGHUV PART IV Item 15. Exhibits and Financial Statement Schedules D )LQDQFLDO6WDWHPHQWVDQG)LQDQFLDO6WDWHPHQW6FKHGXOHV 5HJHQF\&HQWHUV&RUSRUDWLRQDQG5HJHQF\&HQWHUV/3ILQDQFLDOVWDWHPHQWVDQGILQDQFLDOVWDWHPHQW VFKHGXOHWRJHWKHUZLWKWKHUHSRUWVRI.30*//3DUHOLVWHGRQWKHLQGH[LPPHGLDWHO\SUHFHGLQJWKHILQDQFLDO VWDWHPHQWVLQ,WHP&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVDQG6XSSOHPHQWDO'DWD E ([KLELWV In reviewing the agreements included as exhibits to this report, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about the Company, its subsidiaries or other parties to the agreements. The Agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and: should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. We acknowledge that, notwithstanding the inclusion of the foregoing cautionary statements, we are responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this report not misleading. Additional information about the Company may be found elsewhere in this report and the Company's other public files, which are available without charge through the SEC's website at http://www.sec.gov. 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ILOHGRQ-XO\ 133 M 6HFRQG$PHQGHGDQG5HVWDWHG/LPLWHG/LDELOLW\&RPSDQ\$JUHHPHQWRI0DFTXDULH&RXQWU\:LGH5HJHQF\ ,,//&GDWHGDVRI-XO\ E\DQGDPRQJ*OREDO5HWDLO,QYHVWRUV//&5HJHQF\&HQWHUV/3DQG 0DFTXDULH&RXQWU\:LGH 86 1R//& LQFRUSRUDWHGE\UHIHUHQFHWR([KLELWWRWKH&RPSDQ\ V)RUP 4ILOHGRQ1RYHPEHU L $PHQGPHQW1RWR6HFRQG$PHQGHGDQG5HVWDWH/LPLWHG/LDELOLW\&RPSDQ\$JUHHPHQW RI*5,5HJHQF\//& IRUPHUO\0DFTXDULH&RXQWU\:LGH5HJHQF\,,//& LQFRUSRUDWHG E\UHIHUHQFHWR([KLELW K L WRWKH&RPSDQ\¶V)RUP.ILOHG0DUFK N 7KH)RUZDUG6DOH$JUHHPHQWGDWHGDVRI0DUFKEHWZHHQ5HJHQF\&HQWHUV&RUSRUDWLRQDQG -30RUJDQ&KDVH%DQN1DWLRQDO$VVRFLDWLRQ/RQGRQ%UDQFK LQFRUSRUDWHGE\UHIHUHQFHWR([KLELWWR WKH&RPSDQ\¶V)RUP.ILOHGRQ0DUFK O 9RWLQJ$JUHHPHQWGDWHGDVRI1RYHPEHUE\DQGDPRQJ5HJHQF\DQGWKH*D]HOOH6WRFNKROGHUV LQFRUSRUDWHGE\UHIHUHQFHWR([KLELWWRWKH&RPSDQ\¶V)RUP.ILOHGRQ1RYHPEHU P *RYHUQDQFH$JUHHPHQWGDWHGDVRI1RYHPEHUE\DQGDPRQJ5HJHQF\DQGWKH*D]HOOH 6WRFNKROGHUV LQFRUSRUDWHGE\UHIHUHQFHWR([KLELWWRWKH&RPSDQ\¶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he certifications in this exhibit 32 are being furnished solely to accompany this report pursuant to 18 U.S.C. § 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any of the Company's filings, whether made before or after the date hereof, regardless of any general incorporation language in such filing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s/ Martin E. Stein, Jr. %\ 0DUWLQ(6WHLQ-U&KDLUPDQRIWKH%RDUGDQG&KLHI ([HFXWLYH2IILFHU )HEUXDU\ REGENCY CENTERS, L.P. %\ 5HJHQF\&HQWHUV&RUSRUDWLRQ*HQHUDO3DUWQHU /s/ Martin E. Stein, Jr. %\ 0DUWLQ(6WHLQ-U&KDLUPDQRIWKH%RDUGDQG&KLHI ([HFXWLYH2IILFHU 136 3XUVXDQWWRWKHUHTXLUHPHQWVRIWKH6HFXULWLHV([FKDQJH$FWRI WKLVUHSRUWKDVEHHQVLJQHGEHORZE\WKHIROORZLQJ SHUVRQVRQEHKDOIRIWKHUHJLVWUDQWDQGLQWKHFDSDFLWLHVDQGRQWKHGDWHVLQGLFDWHG /s/ Martin E. Stein, Jr. )HEUXDU\ 0DUWLQ(6WHLQ-U&KDLUPDQRIWKH%RDUGDQG&KLHI ([HFXWLYH2IILFHU /s/ Lisa Palmer )HEUXDU\ /LVD3DOPHU3UHVLGHQWDQG&KLHI)LQDQFLDO2IILFHU 3ULQFLSDO)LQDQFLDO2IILFHU /s/ J. Christian Leavitt )HEUXDU\ - &KULVWLDQ/HDYLWW6HQLRU9LFH3UHVLGHQWDQG7UHDVXUHU 3ULQFLSDO$FFRXQWLQJ2IILFHU )HEUXDU\ /s/ Raymond L. Bank 5D\PRQG/%DQN'LUHFWRU )HEUXDU\ /s/ Bryce Blair %U\FH%ODLU'LUHFWRU )HEUXDU\ /s/ C. Ronald Blankenship & 5RQDOG%ODQNHQVKLS'LUHFWRU )HEUXDU\ /s/ J. Dix Druce - 'L['UXFH'LUHFWRU )HEUXDU\ /s/ Mary Lou Fiala 0DU\/RX)LDOD'LUHFWRU )HEUXDU\ /s/ David P. O'Connor 'DYLG32 &RQQRU'LUHFWRU )HEUXDU\ /s/ John C. Schweitzer -RKQ&6FKZHLW]HU'LUHFWRU )HEUXDU\ /s/ Thomas G. Wattles 7KRPDV*:DWWOHV'LUHFWRU 137 Executive Officers Martin E. Stein, Jr. James D. Thompson Chairman and Chief Executive Officer Executive Vice President of Operations Lisa Palmer Dan M. Chandler, III President and Chief Financial Officer Executive Vice President of Development Board of Directors Martin E. Stein, Jr. (3) Mary Lou Fiala (3),(4) Chairman and Chief Executive Officer Former President and Chief Operating Officer Regency Centers Regency Centers Joseph F. Azrack (2) Chaim Katzman (3) Principal Chairman Azrack & Company Gazit-Globe, Ltd. Raymond L. Bank (1), (4) Peter Linneman (1) President Principal Raymond L. Bank & Associates, Inc. Linneman Associates Bryce Blair (3), (4a) David P. O'Connor (2) President Senior Managing Partner Harborview Associates, LLC High Rise Capital Partners, LLC C. Ronald Blankenship (1), (2), (3a) John C. Schweitzer (2a), (4), (5) Retired Chairman and Chief Executive Officer President Verde Realty Westgate Corporation J. Dix Druce, Jr. (1a), (3) Thomas G. Wattles (1), (3a) President and Chairman Chairman and Chief Executive Officer National P.E.T. Scan, LLC DCT Industrial Trust (1) Audit Committee (2) Compensation Committee (3) Investment Committee (4) Nominating and Corporate Governance Committee (5) Lead Director (a) Committee Chairman