Item 8. Consolidated Financial Statements and Supplementary Data

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Item 8. Consolidated Financial Statements and Supplementary Data

Regency Centers Corporation and Regency Centers, L.P.

Index to Financial Statements


Reports of Independent Registered Public Accounting Firm	60

Regency Centers Corporation:
Consolidated Balance Sheets as of December 31, 2020 and 2019	66
Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018	67
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019, and 2018	68
Consolidated Statements of Equity for the years ended December 31, 2020, 2019, and 2018	69
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018	71

Regency Centers, L.P.:
Consolidated Balance Sheets as of December 31, 2020 and 2019	73
Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018	74
Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019, and 2018	75
Consolidated Statements of Capital for the years ended December 31, 2020, 2019, and 2018	76
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018	78

Notes to Consolidated Financial Statements	80

Financial Statement Schedule
Schedule III - Consolidated Real Estate and Accumulated Depreciation - December 31, 2020	115

All other schedules are omitted because of the absence of conditions under which they are required, materiality or because information required therein is shown in the consolidated financial statements or notes thereto.

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Regency Centers Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Regency Centers Corporation and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III – Consolidated Real Estate and Accumulated Depreciation (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 17, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has changed its method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Codification Topic 842, Leases.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Identification and assessment of real estate property impairment indicators

As discussed in Note 1 to the consolidated financial statements and presented on the consolidated balance sheet, real estate assets, less accumulated depreciation was $9.1 billion as of December 31, 2020. The Company evaluates real estate properties for impairment whenever there are indicators, including property operating performance and general market conditions, that the carrying value of the real estate properties may not be recoverable.

We identified the identification and assessment of real estate property impairment indicators as a critical audit matter. A high degree of subjective auditor judgment was required to evaluate the Company’s judgments regarding the identification and assessment of potential indicators that the carrying value of the real estate properties may not be recoverable. Changes in assumptions regarding property conditions, occupancy rates, net operating income and the rate of cash collections from tenants,

and anticipated hold periods could have an impact on the determination to further evaluate the real estate properties for impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter, including controls related to the identification and assessment of potential indicators of impairment. Using property financial and leasing data, we performed an assessment of changes in occupancy rates, net operating income and the rate of cash collections for individual real estate properties and compared the results to the Company’s assessment. In addition, to identify a change in property condition or a shortened hold period we inquired of Company officials, attended Company quarterly meetings and inspected documents such as meeting minutes of the Company’s board of directors.

/s/ KPMG LLP

We have served as the Company's auditor since 1993.

Jacksonville, Florida

February 17, 2021

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Regency Centers Corporation:

Opinion on Internal Control Over Financial Reporting

We have audited Regency Centers Corporation’s and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III – Consolidated Real Estate and Accumulated Depreciation (collectively, the consolidated financial statements), and our report dated February 17, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Jacksonville, Florida

February 17, 2021

Report of Independent Registered Public Accounting Firm

The Board of Directors of Regency

Centers Corporation, and the

Partners of Regency Centers, L.P.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Regency Centers, L.P. and subsidiaries (the Partnership) as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III – Consolidated Real Estate and Accumulated Depreciation (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Partnership’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 17, 2021 expressed an unqualified opinion on the effectiveness of the Partnership’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Partnership has changed its method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Codification Topic 842, Leases.

Basis for Opinion

These consolidated financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) related to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate a opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Identification and assessment of real estate property impairment indicators

As discussed in Note 1 to the consolidated financial statements and presented on the consolidated balance sheet, real estate assets, less accumulated depreciation was $9.1 billion as of December 31, 2020. The Partnership evaluates real estate properties for impairment whenever there are indicators, including property operating performance and general market conditions, that the carrying value of the real estate properties may not be recoverable.

We identified the identification and assessment of real estate property impairment indicators as a critical audit matter. A high degree of subjective auditor judgment was required to evaluate the Partnership’s judgments regarding the identification and assessment of potential indicators that the carrying value of the real estate properties may not be recoverable. Changes in

assumptions regarding property conditions, occupancy rates, net operating income and the rate of cash collections from tenants, and anticipated hold periods could have an impact on the determination to further evaluate the real estate properties for impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter, including controls related to the identification and assessment of potential indicators of impairment. Using property financial and leasing data, we performed an assessment of changes in occupancy rates, net operating income and the rate of cash collections for individual real estate properties and compared the results to the Partnership’s assessment. In addition, to identify a change in property condition or a shortened hold period we inquired of Partnership officials, attended Partnership quarterly meetings and inspected documents such as meeting minutes of the general partners’ board of directors.

/s/ KPMG LLP

We have served as the Partnership's auditor since 1998.

Jacksonville, Florida

February 17, 2021

Report of Independent Registered Public Accounting Firm

The Board of Directors of Regency

Centers Corporation, and the

Partners of Regency Centers, L.P.:

Opinion on Internal Control Over Financial Reporting

We have audited Regency Centers, L.P.’s and subsidiaries’ (the Partnership) internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Partnership as of December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III – Consolidated Real Estate and Accumulated Depreciation (collectively, the consolidated financial statements), and our report dated February 17, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Definition and Limitations of Internal Control Over Financial Reporting

/s/ KPMG LLP

Jacksonville, Florida

February 17, 2021

REGENCY CENTERS CORPORATION

Consolidated Balance Sheets

December 31, 2020 and 2019

(in thousands, except share data)

	2020
Assets
Real estate assets, at cost (note 1):	$	11,101,858		11,095,294
Less: accumulated depreciation		1,994,108		1,766,162
Real estate assets, net		9,107,750		9,329,132
Investments in real estate partnerships (note 4)		467,155		469,522
Properties held for sale		33,934		45,565
Cash, cash equivalents, and restricted cash, including $2,377 and $2,542 of restricted cash at December 31, 2020 and 2019, respectively (note 1)		378,450		115,562
Tenant and other receivables (note 1)		143,633		169,337
Deferred leasing costs, less accumulated amortization of $113,959 and $108,381 at December 31, 2020 and 2019, respectively		67,910		76,798
Acquired lease intangible assets, less accumulated amortization of $284,880 and $259,310 at December 31, 2020 and 2019, respectively (note 6)		188,799		242,822
Right of use assets, net		287,827		292,786
Other assets (note 5)		261,446		390,729
Total assets	$	10,936,904		11,132,253
Liabilities and Equity
Liabilities:
Notes payable (note 9)	$	3,658,405		3,435,161
Unsecured credit facilities (note 9)		264,679		484,383
Accounts payable and other liabilities		302,361		213,705
Acquired lease intangible liabilities, less accumulated amortization of $145,966 and $131,676 at December 31, 2020 and 2019, respectively (note 6)		377,712		427,260
Lease liabilities		220,390		222,918
Tenants’ security, escrow deposits and prepaid rent		55,210		58,865
Total liabilities		4,878,757		4,842,292
Commitments and contingencies (note 16)		—		—
Equity:
Stockholders’ equity (note 12):
Common stock $0.01 par value per share, 220,000,000 shares authorized; 169,680,138 and 167,571,218 shares issued at December 31, 2020 and 2019, respectively		1,697		1,676
Treasury stock at cost, 459,828 and 440,574 shares held at December 31, 2020 and 2019, respectively		(24,436	)	(23,199	)
Additional paid-in capital		7,792,082		7,654,930
Accumulated other comprehensive loss		(18,625	)	(11,997	)
Distributions in excess of net income		(1,765,806	)	(1,408,062	)
Total stockholders’ equity		5,984,912		6,213,348
Noncontrolling interests (note 12):
Exchangeable operating partnership units, aggregate redemption value of $34,878 and $47,092 at December 31, 2020 and 2019, respectively		35,727		36,100
Limited partners’ interests in consolidated partnerships (note 1)		37,508		40,513
Total noncontrolling interests		73,235		76,613
Total equity		6,058,147		6,289,961
Total liabilities and equity	$	10,936,904		11,132,253

See accompanying notes to consolidated financial statements.

REGENCY CENTERS CORPORATION

Consolidated Statements of Operations

For the years ended December 31, 2020, 2019, and 2018

(in thousands, except per share data)

	2020
Revenues:
Lease income	$	980,166		1,094,301		1,083,770
Other property income		9,508		9,201		8,711
Management, transaction, and other fees		26,501		29,636		28,494
Total revenues		1,016,175		1,133,138		1,120,975
Operating expenses:
Depreciation and amortization		345,900		374,283		359,688
Operating and maintenance		170,073		169,909		168,034
General and administrative		75,001		74,984		65,491
Real estate taxes		143,004		136,236		137,856
Other operating expenses		12,642		7,814		9,737
Total operating expenses		746,620		763,226		740,806
Other expense (income):
Interest expense, net		156,678		151,264		148,456
Goodwill impairment		132,128		—		—
Provision for impairment of real estate, net of tax		18,536		54,174		38,437
Gain on sale of real estate, net of tax		(67,465	)	(24,242	)	(28,343	)
Early extinguishment of debt		21,837		11,982		11,172
Net investment (income) loss		(5,307	)	(5,568	)	1,096
Total other expense (income)		256,407		187,610		170,818
Income from operations before equity in income of investments in real estate partnerships		13,148		182,302		209,351
Equity in income of investments in real estate partnerships (note 4)		34,169		60,956		42,974
Net income		47,317		243,258		252,325
Noncontrolling interests:
Exchangeable operating partnership units		(203	)	(634	)	(525	)
Limited partners’ interests in consolidated partnerships		(2,225	)	(3,194	)	(2,673	)
Income attributable to noncontrolling interests		(2,428	)	(3,828	)	(3,198	)
Net income attributable to common stockholders	$	44,889		239,430		249,127
Income per common share - basic (note 15)	$	0.27		1.43		1.47
Income per common share - diluted (note 15)	$	0.26		1.43		1.46

See accompanying notes to consolidated financial statements.

REGENCY CENTERS CORPORATION

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2020, 2019, and 2018

(in thousands)

	2020
Net income	$	47,317		243,258		252,325
Other comprehensive (loss) income:
Effective portion of change in fair value of derivative instruments:
Effective portion of change in fair value of derivative instruments		(19,187	)	(15,585	)	402
Reclassification adjustment of derivative instruments included in net income		11,262		3,269		5,342
Unrealized gain (loss) on available-for-sale securities		320		315		(95	)
Other comprehensive (loss) income		(7,605	)	(12,001	)	5,649
Comprehensive income		39,712		231,257		257,974
Less: comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests		2,428		3,828		3,198
Other comprehensive (loss) income attributable to noncontrolling interests		(977	)	(931	)	299
Comprehensive (loss) income attributable to noncontrolling interests		1,451		2,897		3,497
Comprehensive income attributable to the Company	$	38,261		228,360		254,477

See accompanying notes to consolidated financial statements.

REGENCY CENTERS CORPORATION

Consolidated Statements of Equity

For the years ended December 31, 2020, 2019, and 2018

(in thousands, except per share data)

	Stockholders' Equity																				Noncontrolling Interests
	Preferred Stock		Common Stock			Treasury Stock			Additional Paid In Capital			Accumulated Other Comprehensive Loss			Distributions in Excess of Net Income			Total Stockholders’ Equity			Exchangeable Operating Partnership Units			Limited Partners’ Interest in Consolidated Partnerships			Total Noncontrolling Interests			Total Equity
Balance at December 31, 2017	$	—		1,714			(18,307	)		7,873,104			(6,289	)		(1,158,170	)		6,692,052			10,907			30,095			41,002			6,733,054
Adjustment due to change in accounting policy (note 1)		—		—			—			—			12			30,889			30,901			—			2			2			30,903
Adjusted balance at January 1, 2018		—		1,714			(18,307	)		7,873,104			(6,277	)		(1,127,281	)		6,722,953			10,907			30,097			41,004			6,763,957
Net income		—		—			—			—			—			249,127			249,127			525			2,673			3,198			252,325
Other comprehensive income:
Other comprehensive income before reclassifications		—		—			—			—			36			—			36			—			271			271			307
Amounts reclassified from accumulated other comprehensive income		—		—			—			—			5,314			—			5,314			11			17			28			5,342
Deferred compensation plan, net		—		—			(1,527	)		1,514			—			—			(13	)		—			—			—			(13	)
Restricted stock issued, net of amortization		—		2			—			16,743			—			—			16,745			—			—			—			16,745
Common stock redeemed for taxes withheld for stock based compensation, net		—					—			(6,373	)		—			—			(6,373	)		—			—			—			(6,373	)
Common stock issued under dividend reinvestment plan		—		—			—			1,333			—			—			1,333			—			—			—			1,333
Common stock issued, net of issuance costs		—		—			—			10			—			—			10			—			—			—			10
Common stock repurchased and retired		—		(37	)		—			(213,814	)		—			—			(213,851	)		—			—			—			(213,851	)
Contributions from partners		—		—			—			—			—			—			—			—			13,000			13,000			13,000
Distributions to partners		—		—			—			—			—			—			—			—			(4,526	)		(4,526	)		(4,526	)
Cash dividends declared:
Common stock/unit ($2.22 per share)		—		—			—			—			—			(377,311	)		(377,311	)		(777	)		—			(777	)		(378,088	)
Balance at December 31, 2018	$	—		1,679			(19,834	)		7,672,517			(927	)		(1,255,465	)		6,397,970			10,666			41,532			52,198			6,450,168
Net income		—		—			—			—			—			239,430			239,430			634			3,194			3,828			243,258
Other comprehensive income:
Other comprehensive income before reclassifications		—		—			—			—			(14,388	)		—			(14,388	)		(31	)		(851	)		(882	)		(15,270	)
Amounts reclassified from accumulated other comprehensive income		—		—			—			—			3,318			—			3,318			12			(61	)		(49	)		3,269
Deferred compensation plan, net		—		—			(3,365	)		3,365			—			—			—			—			—			—			—
Restricted stock issued, net of amortization		—		2			—			16,252			—			—			16,254			—			—			—			16,254
Common stock redeemed for taxes withheld for stock based compensation, net		—		—			—			(5,794	)		—			—			(5,794	)		—			—			—			(5,794	)
Common stock issued under dividend reinvestment plan		—		1			—			1,428			—			—			1,429			—			—			—			1,429
Common stock repurchased and retired		—		(6	)		—			(32,772	)		—			—			(32,778	)		—			—			—			(32,778	)
Reallocation of limited partners' interest		—		—			—			(66	)		—			—			(66	)		—			66			66			—
Contributions from partners		—		—			—			—			—			—			—			—			2,151			2,151			2,151
Issuance of exchangeable operating partnership units		—		—			—			—			—			—			—			25,870			—			25,870			25,870
Distributions to partners		—		—			—			—			—			—			—			—			(5,518	)		(5,518	)		(5,518	)
Cash dividends declared:
Common stock/unit ($2.34 per share)		—		—			—			—			—			(392,027	)		(392,027	)		(1,051	)		—			(1,051	)		(393,078	)
Balance at December 31, 2019	$	—		1,676			(23,199	)		7,654,930			(11,997	)		(1,408,062	)		6,213,348			36,100			40,513			76,613			6,289,961

	Stockholders' Equity																			Noncontrolling Interests
	Preferred Stock		Common Stock		Treasury Stock			Additional Paid In Capital			Accumulated Other Comprehensive Loss			Distributions in Excess of Net Income			Total Stockholders’ Equity			Exchangeable Operating Partnership Units			Limited Partners’ Interest in Consolidated Partnerships			Total Noncontrolling Interests			Total Equity
Balance at December 31, 2019	$	—		1,676		(23,199	)		7,654,930			(11,997	)		(1,408,062	)		6,213,348			36,100			40,513			76,613			6,289,961
Net income		—		—		—			—			—			44,889			44,889			203			2,225			2,428			47,317
Other comprehensive loss
Other comprehensive loss before reclassifications		—		—		—			—			(17,589	)		—			(17,589	)		(79	)		(1,199	)		(1,278	)		(18,867	)
Amounts reclassified from accumulated other comprehensive loss		—		—		—			—			10,961			—			10,961			50			251			301			11,262
Deferred compensation plan, net		—		—		(1,237	)		1,237			—			—			—			—			—			—			—
Restricted stock issued, net of amortization		—		2		—			14,246			—			—			14,248			—			—			—			14,248
Common stock redeemed for taxes withheld for stock based compensation, net		—		—		—			(5,059	)		—			—			(5,059	)		—			—			—			(5,059	)
Common stock issued under dividend reinvestment plan		—		—		—			1,139			—			—			1,139			—			—			—			1,139
Common stock issued, net of issuance costs		—		19		—			125,589			—			—			125,608			—			—			—			125,608
Contributions from partners		—		—		—			—			—			—			—			—			606			606			606
Issuance of exchangeable operating partnership units		—		—		—			—			—			—			—			1,275			—			1,275			1,275
Distributions to partners		—		—		—			—			—			—			—			—			(4,888	)		(4,888	)		(4,888	)
Cash dividends declared:
Common stock/unit ($2.38 per share)		—		—		—			—			—			(402,633	)		(402,633	)		(1,822	)		—			(1,822	)		(404,455	)
Balance at December 31, 2020	$	—		1,697		(24,436	)		7,792,082			(18,625	)		(1,765,806	)		5,984,912			35,727			37,508			73,235			6,058,147

See accompanying notes to consolidated financial statements.

REGENCY CENTERS CORPORATION

Consolidated Statements of Cash Flows

For the years ended December 31, 2020, 2019, and 2018

(in thousands)

	2020
Cash flows from operating activities:
Net income	$	47,317		243,258			252,325
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		345,900		374,283			359,688
Amortization of deferred loan costs and debt premiums		9,023		11,170			10,476
(Accretion) and amortization of above and below market lease intangibles, net		(40,540	)	(43,867	)		(33,330	)
Stock-based compensation, net of capitalization		13,581		14,339			13,635
Equity in income of investments in real estate partnerships		(34,169	)	(60,956	)		(42,974	)
Gain on sale of real estate, net of tax		(67,465	)	(24,242	)		(28,343	)
Provision for impairment, net of tax		18,536		54,174			38,437
Goodwill impairment		132,128		—			—
Early extinguishment of debt		21,837		11,982			11,172
Distribution of earnings from investments in real estate partnerships		47,703		56,297			54,266
Settlement of derivative instrument		—		(6,870	)		—
Deferred compensation expense		4,668		5,169			(1,085	)
Realized and unrealized gain on investments		(5,519	)	(5,433	)		1,177
Changes in assets and liabilities:
Tenant and other receivables		16,944		(4,690	)		(26,374	)
Deferred leasing costs		(6,973	)	(6,777	)		(8,366	)
Other assets		(1,200	)	(1,570	)		(1,410	)
Accounts payable and other liabilities		997		4,175			(760	)
Tenants’ security, escrow deposits and prepaid rent		(3,650	)	829			11,793
Net cash provided by operating activities		499,118		621,271			610,327
Cash flows from investing activities:
Acquisition of operating real estate		(16,867	)	(222,444	)		(85,289	)
Advance deposits refunded (paid) on acquisition of operating real estate		100		(125	)		—
Real estate development and capital improvements		(180,804	)	(200,012	)		(226,191	)
Proceeds from sale of real estate investments		189,444		137,572			250,445
Proceeds from property insurance casualty claims		7,957		9,350			—
(Issuance) collection of notes receivable		(1,340	)	(547	)	.	15,648
Investments in real estate partnerships		(51,440	)	(66,921	)		(74,238	)
Return of capital from investments in real estate partnerships		32,125		63,693			14,647
Dividends on investment securities		353		660			531
Acquisition of investment securities		(25,155	)	(23,458	)		(23,164	)
Proceeds from sale of investment securities		19,986		19,539			21,587
Net cash used in investing activities		(25,641	)	(282,693	)		(106,024	)

	2020
Cash flows from financing activities:
Net proceeds from common stock issuance		125,608		—		—
Repurchase of common shares in conjunction with equity award plans		(5,512	)	(6,204	)	(6,772	)
Proceeds from sale of treasury stock		269		9		99
Common shares repurchased through share repurchase program		—		(32,778	)	(213,851	)
Distributions to limited partners in consolidated partnerships, net		(2,770	)	(3,367	)	(4,526	)
Distributions to exchangeable operating partnership unit holders		(1,366	)	(1,051	)	(777	)
Dividends paid to common stockholders		(300,537	)	(390,598	)	(375,978	)
Repayment of fixed rate unsecured notes		(300,000	)	(250,000	)	(150,000	)
Proceeds from issuance of fixed rate unsecured notes, net		598,830		723,571		299,511
Proceeds from unsecured credit facilities		610,000		560,000		575,000
Repayment of unsecured credit facilities		(830,000	)	(785,000	)	(490,000	)
Proceeds from notes payable		—		—		1,740
Repayment of notes payable		(67,189	)	(55,680	)	(113,037	)
Scheduled principal payments		(11,104	)	(9,442	)	(9,964	)
Payment of loan costs		(5,063	)	(7,019	)	(9,448	)
Early redemption costs		(21,755	)	(10,647	)	(10,491	)
Net cash used in financing activities		(210,589	)	(268,206	)	(508,494	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		262,888		70,372		(4,191	)
Cash, cash equivalents, and restricted cash at beginning of the year		115,562		45,190		49,381
Cash, cash equivalents, and restricted cash at end of the year	$	378,450		115,562		45,190
Supplemental disclosure of cash flow information:
Cash paid for interest (net of capitalized interest of $4,355, $4,192, and $7,020 in 2020, 2019, and 2018, respectively)	$	151,338		136,139		136,645
Cash paid for income taxes, net of refunds	$	1,870		1,225		5,455
Supplemental disclosure of non-cash transactions:
Exchangeable operating partnership units issued for acquisition of real estate	$	1,275		25,870		—
Acquisition of real estate previously held within investments in real estate partnerships	$	5,986		—		—
Mortgage loans for the acquisition of real estate	$	16,359		26,152		9,700
Mortgage loan assumed by purchaser with the sale of real estate	$	8,250		—		—
Change in fair value of securities	$	315		660		(206	)
Change in accrued capital expenditures	$	12,166		10,704		—
Common stock issued for dividend reinvestment plan	$	1,139		1,429		1,333
Stock-based compensation capitalized	$	1,119		2,325		3,509
Common stock and exchangeable operating partnership dividends declared but not yet paid	$	101,412		—		—
(Distributions to) Contributions from limited partners in consolidated partnerships, net	$	(1,512	)	66		13,000
Common stock issued for dividend reinvestment in trust	$	819		987		841
Contribution of stock awards into trust	$	1,524		2,582		1,314
Distribution of stock held in trust	$	1,052		197		524

See accompanying notes to consolidated financial statements.

REGENCY CENTERS, L.P.

Consolidated Balance Sheets

December 31, 2020 and 2019

(in thousands, except unit data)

	2020
Assets
Real estate assets, at cost (note 1):	$	11,101,858		11,095,294
Less: accumulated depreciation		1,994,108		1,766,162
Real estate assets, net		9,107,750		9,329,132
Investments in real estate partnerships (note 4)		467,155		469,522
Properties held for sale		33,934		45,565
Cash, cash equivalents, and restricted cash, including $2,377 and $2,542 of restricted cash at December 31, 2020 and 2019, respectively (note 1)		378,450		115,562
Tenant and other receivables (note 1)		143,633		169,337
Deferred leasing costs, less accumulated amortization of $113,959 and $108,381 at December 31, 2020 and 2019, respectively		67,910		76,798
Acquired lease intangible assets, less accumulated amortization of $284,880 and $259,310 at December 31, 2020 and 2019, respectively (note 6)		188,799		242,822
Right of use assets, net		287,827		292,786
Other assets (note 5)		261,446		390,729
Total assets	$	10,936,904		11,132,253
Liabilities and Capital
Liabilities:
Notes payable (note 9)	$	3,658,405		3,435,161
Unsecured credit facilities (note 9)		264,679		484,383
Accounts payable and other liabilities		302,361		213,705
Acquired lease intangible liabilities, less accumulated amortization of $145,966 and $131,676 at December 31, 2020 and 2019, respectively (note 6)		377,712		427,260
Lease liabilities		220,390		222,918
Tenants’ security, escrow deposits and prepaid rent		55,210		58,865
Total liabilities		4,878,757		4,842,292
Commitments and contingencies (note 16)		—		—
Capital:
Partners’ capital (note 12):
General partner; 169,680,138 and 167,571,218 units outstanding at December 31, 2020 and 2019, respectively		6,003,537		6,225,345
Limited partners; 765,046 and 746,433 units outstanding at December 31, 2020 and 2019		35,727		36,100
Accumulated other comprehensive (loss)		(18,625	)	(11,997	)
Total partners’ capital		6,020,639		6,249,448
Noncontrolling interests: Limited partners’ interests in consolidated partnerships		37,508		40,513
Total capital		6,058,147		6,289,961
Total liabilities and capital	$	10,936,904		11,132,253

See accompanying notes to consolidated financial statements.

REGENCY CENTERS, L.P.

Consolidated Statements of Operations

For the years ended December 31, 2020, 2019, and 2018

(in thousands, except per unit data)

	2020
Revenues:
Lease income	$	980,166		1,094,301		1,083,770
Other property income		9,508		9,201		8,711
Management, transaction, and other fees		26,501		29,636		28,494
Total revenues		1,016,175		1,133,138		1,120,975
Operating expenses:
Depreciation and amortization		345,900		374,283		359,688
Operating and maintenance		170,073		169,909		168,034
General and administrative		75,001		74,984		65,491
Real estate taxes		143,004		136,236		137,856
Other operating expenses		12,642		7,814		9,737
Total operating expenses		746,620		763,226		740,806
Other expense (income):
Interest expense, net		156,678		151,264		148,456
Goodwill impairment		132,128		—		—
Provision for impairment of real estate, net of tax		18,536		54,174		38,437
Gain on sale of real estate, net of tax		(67,465	)	(24,242	)	(28,343	)
Early extinguishment of debt		21,837		11,982		11,172
Net investment (income) loss		(5,307	)	(5,568	)	1,096
Total other expense (income)		256,407		187,610		170,818
Income from operations before equity in income of investments in real estate partnerships		13,148		182,302		209,351
Equity in income of investments in real estate partnerships (note 4)		34,169		60,956		42,974
Net income		47,317		243,258		252,325
Limited partners’ interests in consolidated partnerships		(2,225	)	(3,194	)	(2,673	)
Net income attributable to common unit holders	$	45,092		240,064		249,652
Income per common unit - basic (note 15):	$	0.27		1.43		1.47
Income per common unit - diluted (note 15):	$	0.26		1.43		1.46

See accompanying notes to consolidated financial statements.

REGENCY CENTERS, L.P.

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2020, 2019, and 2018

(in thousands)

	2020
Net income	$	47,317		243,258		252,325
Other comprehensive (loss) income:
Effective portion of change in fair value of derivative instruments:
Effective portion of change in fair value of derivative instruments		(19,187	)	(15,585	)	402
Reclassification adjustment of derivative instruments included in net income		11,262		3,269		5,342
Unrealized gain (loss) on available-for-sale securities		320		315		(95	)
Other comprehensive (loss) income		(7,605	)	(12,001	)	5,649
Comprehensive income		39,712		231,257		257,974
Less: comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests		2,225		3,194		2,673
Other comprehensive (loss) income attributable to noncontrolling interests		(948	)	(912	)	288
Comprehensive (loss) income attributable to noncontrolling interests		1,277		2,282		2,961
Comprehensive income attributable to the Company	$	38,435		228,975		255,013

See accompanying notes to consolidated financial statements.

REGENCY CENTERS, L.P.

Consolidated Statements of Capital

For the years ended December 31, 2020, 2019, and 2018

(in thousands)

	General Partner Preferred and Common Units
Balance at December 31, 2017	$	6,698,341		10,907		(6,289	)	6,702,959		30,095		6,733,054
Adjustment due to change in accounting policy (note 1)		30,889		—		12		30,901		2		30,903
Adjusted balance at January 1, 2018		6,729,230		10,907		(6,277	)	6,733,860		30,097		6,763,957
Net income		249,127		525		—		249,652		2,673		252,325
Other comprehensive income
Other comprehensive income before reclassifications		—		—		36		36		271		307
Amounts reclassified from accumulated other comprehensive income		—		11		5,314		5,325		17		5,342
Deferred compensation plan, net		(13	)	—		—		(13	)	—		(13	)
Contributions from partners		—		—		—		—		13,000		13,000
Distributions to partners		(377,311	)	(777	)	—		(378,088	)	(4,526	)	(382,614	)
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization		16,745		—		—		16,745		—		16,745
Common units repurchased and retired as a result of common stock repurchased and retired by Parent Company		(213,851	)	—		—		(213,851	)	—		(213,851	)
Common units repurchased as a result of common stock repurchased by Parent Company, net of issuances		(5,030	)	—		—		(5,030	)	—		(5,030	)
Balance at December 31, 2018	$	6,398,897		10,666		(927	)	6,408,636		41,532		6,450,168
Net income		239,430		634		—		240,064		3,194		243,258
Other comprehensive income
Other comprehensive income before reclassifications		—		(31	)	(14,388	)	(14,419	)	(851	)	(15,270	)
Amounts reclassified from accumulated other comprehensive income		—		12		3,318		3,330		(61	)	3,269
Contributions from partners		—		—		—		—		2,151		2,151
Issuance of exchangeable operating partnership units		—		25,870		—		25,870		—		25,870
Distributions to partners		(392,027	)	(1,051	)	—		(393,078	)	(5,518	)	(398,596	)
Reallocation of limited partners' interest		(66	)	—		—		(66	)	66		—
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization		16,254		—		—		16,254		—		16,254
Common units repurchased and retired as a result of common stock repurchased and retired by Parent Company		(32,778	)	—		—		(32,778	)	—		(32,778	)
Common units repurchased and retired as a result of common stock repurchased and retired by Parent Company		(4,365	)	—		—		(4,365	)	—		(4,365	)
Balance at December 31, 2019	$	6,225,345		36,100		(11,997	)	6,249,448		40,513		6,289,961

	General Partner Preferred and Common Units
Balance at December 31, 2019	$	6,225,345		36,100		(11,997	)	6,249,448		40,513		6,289,961
Net income		44,889		203		—		45,092		2,225		47,317
Other comprehensive loss
Other comprehensive loss before reclassifications		—		(79	)	(17,589	)	(17,668	)	(1,199	)	(18,867	)
Amounts reclassified from accumulated other comprehensive loss		—		50		10,961		11,011		251		11,262
Contributions from partners		—		—		—		—		606		606
Issuance of exchangeable operating partnership units		—		1,275		—		1,275		—		1,275
Distributions to partners		(402,633	)	(1,822	)	—		(404,455	)	(4,888	)	(409,343	)
Restricted units issued as a result of restricted stock issued by Parent Company, net of amortization		14,248		—		—		14,248		—		14,248
Common units issued as a result of common stock issued by Parent Company, net of issuance costs		125,608		—		—		125,608		—		125,608
Common units redeemed as a result of common stock redeemed by Parent Company, net of issuances		(3,920	)	—		—		(3,920	)	—		(3,920	)
Balance at December 31, 2020	$	6,003,537		35,727		(18,625	)	6,020,639		37,508		6,058,147

See accompanying notes to consolidated financial statements.

REGENCY CENTERS, L.P.

Consolidated Statements of Cash Flows

For the years ended December 31, 2020, 2019, and 2018

(in thousands)

	2020
Cash flows from operating activities:
Net income	$	47,317		243,258		252,325
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		345,900		374,283		359,688
Amortization of deferred loan costs and debt premiums		9,023		11,170		10,476
(Accretion) and amortization of above and below market lease intangibles, net		(40,540	)	(43,867	)	(33,330	)
Stock-based compensation, net of capitalization		13,581		14,339		13,635
Equity in income of investments in real estate partnerships		(34,169	)	(60,956	)	(42,974	)
Gain on sale of real estate, net of tax		(67,465	)	(24,242	)	(28,343	)
Provision for impairment, net of tax		18,536		54,174		38,437
Goodwill impairment		132,128		—		—
Early extinguishment of debt		21,837		11,982		11,172
Distribution of earnings from investments in real estate partnerships		47,703		56,297		54,266
Settlement of derivative instrument		—		(6,870	)	—
Deferred compensation expense		4,668		5,169		(1,085	)
Realized and unrealized gain on investments		(5,519	)	(5,433	)	1,177
Changes in assets and liabilities:
Tenant and other receivables		16,944		(4,690	)	(26,374	)
Deferred leasing costs		(6,973	)	(6,777	)	(8,366	)
Other assets		(1,200	)	(1,570	)	(1,410	)
Accounts payable and other liabilities		997		4,175		(760	)
Tenants’ security, escrow deposits and prepaid rent		(3,650	)	829		11,793
Net cash provided by operating activities		499,118		621,271		610,327
Cash flows from investing activities:
Acquisition of operating real estate		(16,867	)	(222,444	)	(85,289	)
Advance deposits refunded (paid) on acquisition of operating real estate		100		(125	)	—
Real estate development and capital improvements		(180,804	)	(200,012	)	(226,191	)
Proceeds from sale of real estate investments		189,444		137,572		250,445
Proceeds from property insurance casualty claims		7,957		9,350		—
(Issuance) collection of notes receivable		(1,340	)	(547	)	15,648
Investments in real estate partnerships		(51,440	)	(66,921	)	(74,238	)
Return of capital from investments in real estate partnerships		32,125		63,693		14,647
Dividends on investment securities		353		660		531
Acquisition of investment securities		(25,155	)	(23,458	)	(23,164	)
Proceeds from sale of investment securities		19,986		19,539		21,587
Net cash used in investing activities		(25,641	)	(282,693	)	(106,024	)

	2020
Cash flows from financing activities:
Net proceeds from common stock issuance		125,608		—		—
Repurchase of common units in conjunction with tax withholdings on equity award plans		(5,512	)	(6,204	)	(6,772	)
Proceeds from treasury units issued as a result of treasury stock sold by Parent Company		269		9		99
Common shares repurchased through share repurchase program		—		(32,778	)	(213,851	)
Distributions to limited partners in consolidated partnerships, net		(2,770	)	(3,367	)	(4,526	)
Distributions to partners		(301,903	)	(391,649	)	(376,755	)
Repayment of fixed rate unsecured notes		(300,000	)	(250,000	)	(150,000	)
Proceeds from issuance of fixed rate unsecured notes, net		598,830		723,571		299,511
Proceeds from unsecured credit facilities		610,000		560,000		575,000
Repayment of unsecured credit facilities		(830,000	)	(785,000	)	(490,000	)
Proceeds from notes payable		—		—		1,740
Repayment of notes payable		(67,189	)	(55,680	)	(113,037	)
Scheduled principal payments		(11,104	)	(9,442	)	(9,964	)
Payment of loan costs		(5,063	)	(7,019	)	(9,448	)
Early redemption costs		(21,755	)	(10,647	)	(10,491	)
Net cash used in financing activities		(210,589	)	(268,206	)	(508,494	)
Net increase (decrease) in cash and cash equivalents and restricted cash		262,888		70,372		(4,191	)
Cash, cash equivalents, and restricted cash at beginning of the year		115,562		45,190		49,381
Cash, cash equivalents, and restricted cash at end of the year	$	378,450		115,562		45,190
Supplemental disclosure of cash flow information:
Cash paid for interest (net of capitalized interest of $4,355, $4,192, and $7,020 in 2020, 2019, and 2018, respectively)	$	151,338		136,139		136,645
Cash paid (received) for income taxes, net of refunds	$	1,870		1,225		5,455
Supplemental disclosure of non-cash transactions:
Common stock issued by Parent Company for partnership units exchanged	$	1,275		25,870		—
Acquisition of real estate previously held within investments in real estate partnerships	$	5,986		—		—
Mortgage loans for the acquisition of real estate	$	16,359		26,152		9,700
Mortgage loan assumed by purchaser with the sale of real estate	$	8,250		—		—
Change in fair value of securities available-for-sale	$	315		660		(206	)
Change in accrued capital expenditures	$	12,166		10,704		—
Common stock issued by Parent Company for dividend reinvestment plan	$	1,139		1,429		1,333
Stock-based compensation capitalized	$	1,119		2,325		3,509
Common stock and exchangeable operating partnership dividends declared but not yet paid	$	101,412		—		—
(Distributions to) Contributions from limited partners in consolidated partnerships, net	$	(1,512	)	66		13,000
Common stock issued for dividend reinvestment in trust	$	819		987		841
Contribution of stock awards into trust	$	1,524		2,582		1,314
Distribution of stock held in trust	$	1,052		197		524

See accompanying notes to consolidated financial statements.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

1.	Summary of Significant Accounting Policies

	(a)	Organization and Principles of Consolidation

General

Regency Centers Corporation (the “Parent Company”) began its operations as a REIT in 1993 and is the general partner of Regency Centers, L.P. (the “Operating Partnership”). The Parent Company primarily engages in the ownership, management, leasing, acquisition, development and redevelopment of shopping centers through the Operating Partnership, has no other assets other than through its investment in the Operating Partnership, and its only liabilities are $200 million of unsecured private placement notes, which are co-issued and guaranteed by the Operating Partnership. The Parent Company guarantees all of the unsecured debt of the Operating Partnership.

As of December 31, 2020, the Parent Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis (the “Company” or “Regency”) owned 297 properties and held partial interests in an additional 114 properties through unconsolidated Investments in real estate partnerships (also referred to as “joint ventures” or “co-investment partnerships”).

Estimates, Risks, and Uncertainties

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of commitments and contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates in the Company’s financial statements relate to the net carrying values of its real estate investments, collectibility of lease income, goodwill, and acquired lease intangible assets and acquired lease intangible liabilities. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken.

COVID-19 Pandemic

On March 11, 2020, the novel coronavirus disease (“COVID-19”) was declared a pandemic (“COVID-19 pandemic” or the “pandemic”) by the World Health Organization as the disease spread throughout the world. The pandemic continues to evolve, making the broader implications on the Company’s future results of operations and overall financial performance uncertain at this time. While much of the Company’s lease income is derived from contractual rent payments, the tenants’ ability to meet their lease obligations have been negatively impacted by the disruptions and uncertainties of the pandemic. The tenants’ ability to respond to these disruptions, including adapting to governmental orders or recommendations and changes in their customers’ shopping habits and behaviors, will influence the tenants’ ability to survive and ultimately fulfill their lease obligations. While the announcement of vaccine approvals by the U.S. Food and Drug Administration (“FDA”) in early December 2020 was a positive development, at about the same time, several states and many localities reinstituted mandatory business limitations and closures as cases spiked again, in advance of full scale vaccine deployment. Further, forced closures may occur as cases spike or additional strains of the virus emerge, while the speed of vaccine rollout remains uncertain.

Due to the pandemic, certain tenants have requested rent concessions or have sought to renegotiate future rents based on changes to the economic environment. Other tenants have chosen not to reopen or honor the terms of their existing lease agreements. In addition, in 2020 we saw a meaningful spike in the number of bankruptcy filings by our tenants versus prior years, which in certain cases can lead to a tenant “rejecting” (terminating) one or more of our leases as permitted by applicable bankruptcy law, or seeking to negotiate reduced rent as part of the bankruptcy reorganization process.

The Company is closely monitoring its cash collections from its tenants which significantly declined from historic levels at the start of the pandemic but have since gradually improved. As of February 8, 2021, we experienced sequential improvement in our collection rates of Pro-rata base rent billed by quarter in 2020 as follows:

		Q2			Q3			Q4
Base Rent Collections		79%			89%			92%

Since the pandemic began, the Company has executed approximately 1,600 rent deferral agreements within its consolidated and unconsolidated real estate portfolio. The weighted average deferral period of these agreements is approximately 3.3 months, with repayment periods of approximately 9.7 months beginning in December 2020. The Company expects to continue to work with tenants to address the adverse impacts of the pandemic, which may result in further rent deferrals, concessions or abatements. As a result, there can be no assurance that our base rent collection percentages will continue at or

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

above Q4 2020 levels, or that cash flows from operations will be sufficient to sustain and fund the Company’s dividend payments without the benefit of other sources of capital or changes to its current dividend levels. In the event of a surge in COVID-19 cases or new governmental restrictions causing our tenants to reduce their operations or close, our base rent collection percentages and percent leased could decline from recent 2020 levels.

New leasing activity declined in 2020 and is expected to remain below 2019 levels into 2021 as businesses delay executing leases amidst the immediate and uncertain future economic impacts of the pandemic. This, coupled with tenant failures and bankruptcies, may result in decreased demand for space in our centers, which could result in pricing pressure on rents. Additionally, if construction of tenant improvements are delayed due to the impacts of the pandemic, it may take longer before new tenants are able to open and commence rent payments, or attract new tenants.

The pandemic has adversely impacted the Company’s ability to start or complete tenant buildouts, new ground up development, or redevelopment of existing properties. The pandemic has also impacted the Company’s ability to timely source materials for construction and has caused labor shortages which have impacted its ability to complete construction projects on anticipated schedules. In the event a surge in new cases resulting in additional lockdowns occurs, similar impacts to the Company’s supply chain may arise which could have a material adverse effect on the Company’s business, financial condition and results of operation. The Company continues to closely monitor its projects, which has resulted in prudently delaying, phasing or curtailing certain in-process and planned development, redevelopment and capital expenditure projects.

The duration and severity of the pandemic across the United States will continue to negatively impact many of the Company’s tenants, and their ability to meet their rent obligations under their lease agreements with the Company. As such, the impact from the pandemic could still negatively impact the Company’s results of operations and financial condition in the future.

Our business continuity and disaster recovery plan enabled us to continue operating productively during the pandemic. We have maintained, and expect to continue to maintain, without interruption, our financial reporting systems as well as our internal controls over our financial reporting and disclosure controls and procedures.

Consolidation

The accompanying consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, its wholly-owned subsidiaries, and consolidated partnerships in which the Company has a controlling interest. Investments in real estate partnerships not controlled by the Company are accounted for under the equity method. All significant inter-company balances and transactions are eliminated in the consolidated financial statements.

The Company consolidates properties that are wholly owned or properties where it owns less than 100%, but which it has control over the activities most important to the overall success of the partnership. Control is determined using an evaluation based on accounting standards related to the consolidation of variable interest entities (“VIEs”) and voting interest entities. For joint ventures that are determined to be a VIE, the Company consolidates the entity where it is deemed to be the primary beneficiary. Determination of the primary beneficiary is based on whether an entity has (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Ownership of the Parent Company

The Parent Company has a single class of common stock outstanding.

Ownership of the Operating Partnership

The Operating Partnership's capital includes general and limited common Partnership Units. As of December 31, 2020, the Parent Company owned approximately 99.6%, or 169,680,138, of the 170,445,184 outstanding common Partnership Units of the Operating Partnership, with the remaining limited common Partnership Units held by third parties (“Exchangeable operating partnership units” or “EOP units”). Each EOP unit is exchangeable for cash or one share of common stock of the Parent Company, at the discretion of the Parent Company, and the unit holder cannot require redemption in cash or other assets (i.e. registered shares of the Parent). The Parent Company has evaluated the conditions as specified under Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity as it relates to exchangeable operating partnership units outstanding and concluded that it has the right to satisfy the redemption requirements of the units by delivering unregistered common stock. Accordingly, the Parent Company classifies EOP units as permanent equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity and Comprehensive Income. The Parent Company serves as general partner of the Operating Partnership. The EOP unit holders have limited rights over the Operating Partnership such that they do not have the power to direct the activities of the Operating Partnership. As such, the Operating Partnership is considered a VIE, and the Parent Company, which consolidates it, is the primary beneficiary. The Parent Company's only investment is the Operating Partnership. Net income and distributions of the Operating Partnership are allocable to the general and limited common Partnership Units in accordance with their ownership percentages.

Real Estate Partnerships

Regency has a partial ownership interest in 124 properties through partnerships, of which 10 are consolidated. Regency's partners include institutional investors and other real estate developers and/or operators (the “Partners” or “Limited Partners”). Regency has a variable interest in these entities through its equity interests. As managing member, Regency maintains the books and records and typically provides leasing and property and asset management services to the partnerships. The Partners’ level of involvement in these partnerships varies from protective decisions (debt, bankruptcy, selling primary asset(s) of business) to participating involvement such as approving leases, operating budgets, and capital budgets. The assets of these partnerships are restricted to the use of the partnerships and cannot be used by general creditors of the Company. And similarly, the obligations of these partnerships can only be settled by the assets of these partnerships or additional contributions by the partners.

	•	Those partnerships for which the Partners are involved in the day to day decisions and do not have any other aspects that would cause them to be considered VIEs, are evaluated for consolidation using the voting interest model.

	o	Those partnerships in which Regency has a controlling financial interest are consolidated and the limited partners’ ownership interest and share of net income is recorded as noncontrolling interest.

	o	Those partnerships in which Regency does not have a controlling financial interest are accounted for using the equity method and Regency's ownership interest is recognized through single-line presentation as Investments in real estate partnerships, in the Consolidated Balance Sheet, and Equity in income of investments in real estate partnerships, in the Consolidated Statements of Operations. Cash distributions of earnings from operations from Investments in real estate partnerships are presented in Cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows. Cash distributions from the sale of a property or loan proceeds received from the placement of debt on a property included in Investments in real estate partnerships are presented in Cash flows provided by investing activities in the accompanying Consolidated Statements of Cash Flows. Distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment has resulted in a negative investment balance for one partnership, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.

The net difference in the carrying amount of investments in real estate partnerships and the underlying equity in net assets is accreted to earnings and recorded in Equity in income of investments in real estate partnerships in the accompanying Consolidated Statements of Operations over the expected useful lives of the properties and other intangible assets, which range in lives from 10 to 40 years.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

	•	Those partnerships for which the Partners only have protective rights are considered VIEs under ASC Topic 810, Consolidation. Regency is the primary beneficiary of these VIEs as Regency has power over these partnerships, and they operate primarily for the benefit of Regency. As such, Regency consolidates these entities and reports the limited partners’ interest as noncontrolling interests.

The majority of the operations of the VIEs are funded with cash flows generated by the properties, or in the case of developments, with capital contributions or third party construction loans.

The major classes of assets, liabilities, and noncontrolling equity interests held by the Company's consolidated VIEs, exclusive of the Operating Partnership, are as follows:

(in thousands)	December 31, 2020
Assets
Net real estate investments (1)	$	127,240	325,464
Cash, cash equivalents, and restricted cash (1)		4,496	57,269
Liabilities
Notes payable		6,340	17,740
Equity
Limited partners’ interests in consolidated partnerships		28,685	30,655

	(1)	Included in the December 31, 2019 balances were real estate assets and cash held in Section 1031 like-kind exchanges, of which none remained at December 31, 2020.

Noncontrolling Interests

Noncontrolling Interests of the Parent Company

The consolidated financial statements of the Parent Company include the following ownership interests held by owners other than the common stockholders of the Parent Company: (i) the limited Partnership Units in the Operating Partnership held by third parties (“Exchangeable operating partnership units”) and (ii) the minority-owned interest held by third parties in consolidated partnerships (“Limited partners' interests in consolidated partnerships”). The Parent Company has included all of these noncontrolling interests in permanent equity, separate from the Parent Company's stockholders' equity, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity. The portion of net income or comprehensive income attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income of the Parent Company.

Limited partners' interests in consolidated partnerships are not redeemable by the holders. The Parent Company also evaluated its fiduciary duties to itself, its shareholders, and, as the managing general partner of the Operating Partnership, to the Operating Partnership, and concluded its fiduciary duties are not in conflict with each other or the underlying agreements. Therefore, the Parent Company classifies such units and interests as permanent equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity.

Noncontrolling Interests of the Operating Partnership

The Operating Partnership has determined that limited partners' interests in consolidated partnerships are noncontrolling interests. Subject to certain conditions and pursuant to the terms of the partnership agreements, the Company generally has the right, but not the obligation, to purchase the other member’s interest or sell its own interest in these consolidated partnerships. The Operating Partnership has included these noncontrolling interests in permanent capital, separate from partners' capital, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Capital. The portion of net income (loss) or comprehensive income (loss) attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements Comprehensive Income of the Operating Partnership.

	(b)	Revenues and Tenant Receivable

Leasing Income and Tenant Receivables

The Company leases space to tenants under agreements with varying terms that generally provide for fixed payments of base rent, with stated increases over the term of the lease. Some of the lease agreements contain provisions that provide for

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

additional rents based on tenants' sales volume (“percentage rent”), which are recognized when the tenants achieve the specified targets as defined in their lease agreements. Additionally, most lease agreements contain provisions for reimbursement of the tenants' share of actual real estate taxes, insurance and common area maintenance (“CAM”) costs (collectively “Recoverable Costs”) incurred.

Lease terms generally range from three to seven years for tenant space under 10,000 square feet (“Shop Space”) and in excess of five years for spaces greater than 10,000 square feet (“Anchor Space”). Many leases also provide the option for the tenants to extend their lease beyond the initial term of the lease. If a tenant does not exercise its option or otherwise negotiate to renew, the lease expires and the lease contains an obligation for the tenant to relinquish its space, allowing it to be leased to a new tenant. This generally involves some level of cost to prepare the space for re-leasing, which is capitalized and depreciated over the shorter of the life of the subsequent lease or the life of the improvement.

On January 1, 2019, the Company adopted the new accounting guidance in Accounting Standards Codification (“ASC”) Topic 842, Leases, including all related Accounting Standard Updates (“ASU”). Prior to that, the Company applied ASC Topic 840, Leases, which required similar straight line lease income and expense recognition, and allowed initial indirect leasing costs to be deferred, but did not require balance sheet recognition of Right of use assets or Lease liabilities.

Classification

Under Topic 842, new leases or modifications thereto must be evaluated against specific classification criteria, which, based on the customary terms of the Company’s leases, are classified as operating leases, similar to the Company’s lease classification under the previous Topic 840. However, certain longer-term leases (both lessee and lessor leases) may be classified as direct financing or sales type leases, which may result in selling profit and an accelerated pattern of earnings recognition. At December 31, 2020, all of the Company’s leases were classified as operating leases. See the pandemic discussion that follows for unique considerations amidst the pandemic.

Recognition and Presentation

CAM is a non-lease component of the lease contract under Topic 842, and therefore recognition for these CAM expenses would be accounted for under Topic 606, Revenue from Contracts with Customers, and presented separate from Lease income in the Consolidated Statements of Operations, based on an allocation of the overall consideration in the lease contract, which is not necessarily the amount that would be billable to the tenants for CAM reimbursements per the terms of the lease contract. As the timing and pattern of providing the CAM service to the tenant is the same as the timing and pattern of the tenants' use of the underlying lease asset, the Company elected, as part of an available practical expedient, to combine CAM with the remaining lease components, along with tenants' reimbursement of real estate taxes and insurance, and recognize them together as Lease income in the accompanying Consolidated Statements of Operations.

Collectibility

Lease income for operating leases with fixed payment terms is recognized on a straight-line basis over the expected term of the lease for all leases for which collectibility is considered probable at the commencement date. At lease commencement, the Company generally expects that collectibility of substantially all payments due under the lease is probable due to the Company’s credit checks on tenants and other creditworthiness analysis undertaken before entering into a new lease; therefore, income from most operating leases is initially recognized on a straight-line basis. For operating leases in which collectibility of Lease income is not considered probable, Lease income is recognized on a cash basis and all previously recognized straight-line rent receivables are reversed in the period in which the Lease income is determined not to be probable of collection. In addition to the lease-specific collectibility assessment performed under Topic 842, the Company may also recognize a general reserve, as a reduction to Lease income, for its portfolio of operating lease receivables which are not expected to be fully collectible based on the Company’s historical collection experience.

The Company estimates the collectibility of the accounts receivable related to base rents, straight-line rents, recoveries from tenants, and other revenue taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. Beginning with the adoption of ASC 842, Leases, on January 1, 2019, uncollectible lease income is a direct charge against Lease income. Prior to 2019, uncollectible lease income was recorded in Other operating expenses, while uncollectible straight line rent was recorded as a charge to Lease income.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

COVID-19 Pandemic and Rent Concessions

During 2020, in response to the pandemic and the resulting entry into agreements for rent concessions between tenants and landlords, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities could elect not to apply lease modification accounting with respect to such lease concessions, and instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the right of the lessor or the obligations of the lessee. The Company has elected to treat concessions that satisfy this criteria as though the concession was part of the existing contract and therefore not treated like a lease modification.

Since the pandemic began, the Company has executed approximately 1,600 rent deferral agreements representing $40.8 million of rent or 4.6% of Pro-rata annual base rent, within its consolidated and unconsolidated real estate portfolio. The weighted average deferral period of these agreements is approximately 3.3 months, with repayment periods of approximately 9.7 months beginning in December 2020. The Company will continue to negotiate with some tenants, which may result in further rent concessions as determined necessary and appropriate. Collectibility assessment of these concessions generally includes consideration of the tenants’ business performance, ability to sustain their business in the current environment, as well as an assessment of their credit worthiness and ability to repay such amounts in the future.

The following table represents the components of Tenant and other receivables, net of amounts considered uncollectible, in the accompanying Consolidated Balance Sheets:

	December 31,
(in thousands)	2020		2019
Tenant receivables	$	39,658		35,526
Straight-line rent receivables		86,615		107,087
Other receivables (1)		17,360		26,724
Total tenant and other receivables, net	$	143,633		169,337

	(1)	Other receivables include construction receivables, insurance receivables, and amounts due from real estate partnerships for Management, transaction and other fee income.

Real Estate Sales

The Company accounts for sales of nonfinancial assets under Subtopic 610-20, whereby the Company derecognizes real estate and recognizes a gain or loss on sales when a contract exists and control of the property has transferred to the buyer. Control of the property, including controlling financial interest, is generally considered to transfer upon closing through transfer of the legal title and possession of the property. Any retained noncontrolling interest is measured at fair value at that time. The adoption this Subtopic 610-20 on January 1, 2018, resulted in the recognition, through opening retained earnings, of $30.9 million of previously deferred gains from property sales to the Company's Investments in real estate partnerships.

Management Services and Other Property Income

The Company recognizes revenue under Topic 606, Revenue from Contracts with Customers, when or as control of the promised services are transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The following is a description of the Company's revenue from contracts with customers within the scope of Topic 606.

Property and Asset Management Services

The Company is engaged under agreements with its joint venture partnerships, which are generally perpetual in nature and cancellable through unanimous partner approval, absent an event of default. Under these agreements, the Company is to provide asset and property management and leasing services for the joint ventures' shopping centers. The fees are market-based, generally calculated as a percentage of either revenues earned or the estimated values of the properties managed or the proceeds received, and are recognized over the monthly or quarterly periods as services are rendered. Property management and asset management services represent a series of distinct daily services. Accordingly, the Company satisfies its performance obligation as service is rendered each day and the variability associated with that compensation is resolved each day. Amounts due from the partnerships for such services are paid during the month following the monthly or quarterly service periods.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Several of the Company’s partnership agreements provide for incentive payments, generally referred to as “promotes” or “earnouts,” to Regency for appreciation in property values in Regency's capacity as manager. The terms of these promotes are based on appreciation in real estate value over designated time intervals or upon designated events. The Company evaluates its expected promote payout at each reporting period, which generally does not result in revenue recognition until the measurement period has completed, when the amount can be reasonably determined and the amount is not probable of significant reversal. The Company did not recognize any promote revenue during the years ended December 31, 2020, 2019, or 2018.

Leasing Services

Leasing service fees are based on a percentage of the total rent due under the lease. The leasing service is considered performed upon successful execution of an acceptable tenant lease for the joint ventures’ shopping centers, at which time revenue is recognized. Payment of the first half of the fee is generally due upon lease execution and the second half is generally due upon tenant opening or rent payments commencing.

Transaction Services

The Company also receives transaction fees, as contractually agreed upon with each joint venture, which include acquisition fees, disposition fees, and financing service fees. Control of these services is generally transferred at the time the related transaction closes, which is the point in time when the Company recognizes the related fee revenue. Any unpaid amounts related to transaction-based fees are included in Tenant and other receivables within the Consolidated Balance Sheets.

Other Property Income

Other property income includes parking fee and other incidental income from the properties and is generally recognized at the point in time that the performance obligation is met.

All income from contracts with the Company’s real estate partnerships is included within Management, transaction and other fees on the Consolidated Statements of Operations. The primary components of these revenue streams, the timing of satisfying the performance obligations, and amounts are as follows:

		Year ended December 31,
(in thousands)	Timing of satisfaction of performance obligations	2020		2019		2018
Management, transaction, and other fees:
Property management services	Over time	$	14,444		14,744		14,663
Asset management services	Over time		6,963		7,135		7,213
Leasing services	Point in time		3,150		3,692		4,044
Other transaction fees	Point in time		1,944		4,065		2,574
Total management, transaction, and other fees		$	26,501		29,636		28,494

The accounts receivable for management services, which are included within Tenant and other receivables in the accompanying Consolidated Balance Sheets, are $9.9 million and $11.6 million, as of December 31, 2020 and 2019, respectively.

	(c)	Real Estate Investments

The following table details the components of Real estate assets in the Consolidated Balance Sheets:

(in thousands)	December 31, 2020		December 31, 2019
Land	$	4,230,989	$	4,288,695
Land improvements		630,264		607,624
Buildings		5,083,660		5,101,061
Building and tenant improvements		997,704		946,034
Construction in progress		159,241		151,880
Total real estate assets	$	11,101,858		11,095,294

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Capitalization and Depreciation

Maintenance and repairs that do not improve or extend the useful lives of the respective assets are recorded in operating and maintenance expense.

As part of the leasing process, the Company may provide the lessee with an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and recorded as tenant improvements, and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of Lease income. Factors considered during this evaluation include, among other things, who holds legal title to the improvements as well as other controlling rights provided by the lease agreement and provisions for substantiation of such costs (e.g. unilateral control of the tenant space during the build-out process). Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease.

Depreciation is computed using the straight-line method over estimated useful lives of approximately 15 years for land improvements, 40 years for buildings and improvements, and the shorter of the useful life or the remaining lease term subject to a maximum of 10 years for tenant improvements, and three to seven years for furniture and equipment.

Development and Redevelopment Costs

Land, buildings, and improvements are recorded at cost. All specifically identifiable costs related to development and redevelopment activities are capitalized into Real estate assets in the accompanying Consolidated Balance Sheets, and are included in Construction in progress within the above table. The capitalized costs include pre-development costs essential to the development or redevelopment of the property, development / redevelopment costs, construction costs, interest costs, real estate taxes, and allocated direct employee costs incurred during the period of development or redevelopment.

Pre-development costs represent the costs the Company incurs prior to land acquisition or pursuing a redevelopment including contract deposits, as well as legal, engineering, and other external professional fees related to evaluating the feasibility of developing or redeveloping a shopping center. As of December 31, 2020 and 2019, the Company had nonrefundable deposits and other pre development costs of approximately $25.3 million and $17.7 million, respectively. If the Company determines that the development or redevelopment of a particular shopping center is no longer probable, any related pre-development costs previously capitalized are immediately expensed. During the years ended December 31, 2020, 2019, and 2018, the Company expensed pre-development costs of approximately $10.5 million, $2.5 million, and $1.9 million, respectively, in Other operating expenses in the accompanying Consolidated Statements of Operations.

Interest costs are capitalized into each development and redevelopment project based upon applying the Company's weighted average borrowing rate to that portion of the actual development or redevelopment costs expended. The Company discontinues interest and real estate tax capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would the Company capitalize interest on the project beyond 12 months after substantial completion of the building shell. During the years ended December 31, 2020, 2019, and 2018, the Company capitalized interest of $4.4 million, $4.2 million, and $7.0 million, respectively, on our development and redevelopment projects.

We have a staff of employees directly supporting our development and redevelopment program. All direct internal costs attributable to these development activities are capitalized as part of each development and redevelopment project. The capitalization of costs is directly related to the actual level of development activity occurring. During the years ended December 31, 2020, 2019, and 2018, we capitalized $10.2 million, $20.4 million, and $17.1 million, respectively, of direct internal costs incurred to support our development and redevelopment program.

Acquisitions

The Company generally accounts for operating property acquisitions as asset acquisitions. The Company capitalizes transaction costs associated with asset acquisitions and expenses transaction costs associated with business combinations. Both asset acquisitions and business combinations require that the Company recognize and measure the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the operating property acquired (“acquiree”).

The Company's methodology includes estimating an “as-if vacant” fair value of the physical property, which includes land, building, and improvements. In addition, the Company determines the estimated fair value of identifiable intangible assets and liabilities, considering the following categories: (i) value of in-place leases, and (ii) above and below-market value of in-place leases.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The value of in-place leases is estimated based on the value associated with the costs avoided in originating leases compared to the acquired in-place leases as well as the value associated with lost rental and recovery revenue during the assumed lease-up period. The value of in-place leases is recorded to Depreciation and amortization expense in the Consolidated Statements of Operations over the remaining expected term of the respective leases.

Above-market and below-market in-place lease values for acquired properties are recorded based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for comparable in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, including below-market renewal options, if applicable. The value of above-market leases is amortized as a reduction of Lease income over the remaining terms of the respective leases and the value of below-market leases is accreted to Lease income over the remaining terms of the respective leases, including below-market renewal options, if applicable. The Company does not assign value to customer relationship intangibles if it has pre-existing business relationships with the major retailers at the acquired property since they do not provide incremental value over the Company's existing relationships.

Held for Sale

The Company classifies land, an operating property, or a property in development as held-for-sale upon satisfaction of the following criteria: (i) management commits to a plan to sell a property (or group of properties), (ii) the property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such properties, (iii) an active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated, (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year, (v) the property is being actively marketed for sale, and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Properties held-for-sale are carried at the lower of cost or fair value less costs to sell.

Impairment

We evaluate whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. For those properties with such indicators, management evaluates recoverability of the property's carrying amount. Through the evaluation, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, expected leasing activity, costs of tenant improvements, leasing commissions, anticipated hold period, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and could differ materially from actual results. Changes in our disposition strategy or changes in the marketplace may alter the hold period of an asset or asset group which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. To the extent that the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value. If such indicators are not identified, management will not assess the recoverability of a property's carrying value. If a property previously classified as held and used is changed to held for sale, the Company estimates fair value, less expected costs to sell, which could cause the Company to determine that the property is impaired.

The fair value of real estate assets is subjective and is determined through comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization method or the discounted cash flow approach. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors, and therefore is subject to management judgment and changes in those factors could impact the determination of fair value. In estimating the fair value of undeveloped land, the Company generally uses market data and comparable sales information.

A loss in value of investments in real estate partnerships under the equity method of accounting, other than a temporary decline, must be recognized in the period in which the loss occurs. If management identifies indicators that the value of the Company's investment in real estate partnerships may be impaired, it evaluates the investment by calculating the fair value of the investment by discounting estimated future cash flows over the expected term of the investment.

Tax Basis

The net book basis of the Company's real estate assets exceeds the net tax basis by approximately $2.7 billion and $2.8 billion at December 31, 2020 and 2019, respectively, primarily due to the tax free merger with Equity One and inheriting lower carryover tax basis.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

	(d)	Cash, Cash Equivalents, and Restricted Cash

Any instruments which have an original maturity of 90 days or less when purchased are considered cash equivalents. As of December 31, 2020 and 2019, $2.4 million and $2.5 million, respectively, of cash was restricted through escrow agreements and certain mortgage loans.

	(e)	Other Assets

Goodwill

Goodwill represents the excess of the purchase price consideration from the Equity One merger in 2017 over the fair value of the assets acquired and liabilities assumed. The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles - Goodwill and Other, and allocates its goodwill to its reporting units, which have been determined to be at the individual property level. The Company performs an impairment evaluation of its goodwill at least annually, in November of each year, or more frequently as triggers occur. See note 5.

The goodwill impairment evaluation is completed using either a qualitative or quantitative approach. Under a qualitative approach, the impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that the reporting unit’s fair value is less than its carrying value, including goodwill. If a qualitative approach indicates it is more likely-than-not that the estimated carrying value of a reporting unit (including goodwill) exceeds its fair value, or if the Company chooses to bypass the qualitative approach for any reporting unit, the Company will perform the quantitative approach described below.

The quantitative approach consists of estimating the fair value of each reporting unit using discounted projected future cash flows and comparing those estimated fair values with the carrying values, which include the allocated goodwill. If the estimated fair value is less than the carrying value, the Company would then recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Investments

The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. The fair value of securities is determined using quoted market prices.

Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized through earnings in Investment income in the Consolidated Statements of Operations. Debt securities not classified as held to maturity or as trading, are classified as available-for-sale, and are carried at fair value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in the Consolidated Statements of Comprehensive Income.

Equity securities with readily determinable fair values are measured at fair value with changes in the fair value recognized through net income and presented within Investment income in the Consolidated Statements of Operations.

	(f)	Deferred Leasing Costs

Deferred leasing costs consist of costs associated with leasing the Company's shopping centers, and are presented net of accumulated amortization. Such costs are amortized over the period through lease expiration. If the lease is terminated early, the remaining leasing costs are written off.

The adoption of Topic 842 on January 1, 2019, changed the treatment of leasing costs, such that non-contingent internal leasing and legal costs associated with leasing activities can no longer be capitalized. The Company, as a lessor, may only defer as initial direct costs the incremental costs of a tenant’s operating lease that would not have been incurred if the lease had not been obtained. These costs generally consist of third party broker payments.

	(g)	Derivative Financial Instruments

The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or future payment of known and uncertain cash amounts, the amount of which are determined by interest rates. The Company's

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash payments principally related to the Company's borrowings.

All derivative instruments, whether designated in hedging relationships or not, are recorded on the accompanying Consolidated Balance Sheets at their fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company uses interest rate swaps to mitigate its interest rate risk on a related financial instrument or forecasted transaction, and the Company designates these interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges generally involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company may also utilize cash flow hedges to lock U.S. Treasury rates in anticipation of future fixed-rate debt issuances. The gains or losses resulting from changes in fair value of derivatives that qualify as cash flow hedges are recognized in Accumulated other comprehensive income (loss) (“AOCI”). Upon the settlement of a hedge, gains and losses remaining in AOCI are amortized through earnings over the underlying term of the hedged transaction. The cash receipts or payments related to interest rate swaps are presented in cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. The Company assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows and/or forecasted cash flows of the hedged items.

In assessing the valuation of the hedges, the Company uses standard market conventions and techniques such as discounted cash flow analysis, option pricing models, and termination costs at each balance sheet date. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

	(h)	Income Taxes

The Parent Company believes it qualifies, and intends to continue to qualify, as a REIT under the Code. As a REIT, the Parent Company will generally not be subject to federal income tax, provided that distributions to its stockholders are at least equal to REIT taxable income. All wholly-owned corporate subsidiaries of the Operating Partnership have elected to be a TRS or qualify as a REIT. The TRS's are subject to federal and state income taxes and file separate tax returns. As a pass through entity, the Operating Partnership generally does not pay taxes, but its taxable income or loss is reported by its partners, of which the Parent Company, as general partner and approximately 99.6% owner, is allocated its Pro-rata share of tax attributes.

The Company accounts for income taxes related to its TRS’s under the asset and liability approach, which requires the recognition of the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company records net deferred tax assets to the extent it believes it is more likely than not that these assets will be realized. A valuation allowance is recorded to reduce deferred tax assets when it is believed that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company considers all available positive and negative evidence, including forecasts of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards, tax planning strategies and recent and projected results of operations in order to make that determination.

In addition, tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open tax years (2016 and forward for federal and state) based on an assessment of many factors including past experience and interpretations of tax laws applied to the facts of each matter.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into U.S. law on March 27, 2020 and provided an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the U.S. economy. The assistance includes tax relief and government loans, grants and investments for entities in affected industries. The Company is currently evaluating the programs and tax benefits that may apply to its operations including the corporate net operating loss carryback, increases in the interest expense limitation, employee retention credit, and deferrals of both employer payroll taxes and corporate estimated taxes.

	(i)	Lease Obligations

The Company has certain properties within its consolidated real estate portfolio that are either partially or completely on land subject to ground leases with third parties, which are all classified as operating leases. Accordingly, the Company owns only a long-term leasehold or similar interest in these properties. The building and improvements constructed on the leased land are capitalized as Real estate assets in the accompanying Consolidated Balance Sheets and depreciated over the shorter of the useful life of the improvements or the lease term.

In addition, the Company has non-cancelable operating leases pertaining to office space from which it conducts its business. Leasehold improvements are capitalized as tenant improvements, included in Other assets in the Consolidated Balance Sheets, and depreciated over the shorter of the useful life of the improvements or the lease term.

Upon the adoption of Topic 842, the Company recognized Lease liabilities on its Consolidated Balance Sheets for its ground and office leases of $225.4 million at January 1, 2019, and corresponding Right of use assets of $297.8 million, net of or including the opening balance for straight-line rent and above / below market ground lease intangibles related to these same ground and office leases. A key input in estimating the Lease liabilities and resulting Right of use assets is establishing the discount rate in the lease, which since the rates implicit in the lease contracts are not readily determinable, requires additional inputs for the longer-term ground leases, including market-based interest rates that correspond with the remaining term of the lease, the Company's credit spread, and a securitization adjustment necessary to reflect the collateralized payment terms present in the lease. This discount rate is applied to the remaining unpaid minimum rental payments for each lease to measure the operating lease liabilities.

The ground and office lease expenses continue to be recognized on a straight-line basis over the term of the leases, including management's estimate of expected option renewal periods. For ground leases, the Company generally assumes it will exercise options through the latest option date of that shopping center's anchor tenant lease.

	(j)	Earnings per Share and Unit

Basic earnings per share of common stock and unit are computed based upon the weighted average number of common shares and units, respectively, outstanding during the period. Diluted earnings per share and unit reflect the conversion of obligations and the assumed exercises of securities including the effects of shares issuable under the Company's share-based payment arrangements, if dilutive. Dividends paid on the Company's share-based compensation awards are not participating securities as they are forfeitable.

	(k)	Stock-Based Compensation

The Company grants stock-based compensation to its employees and directors. The Company recognizes the cost of stock-based compensation based on the grant-date fair value of the award, which is expensed over the vesting period.

When the Parent Company issues common stock as compensation, it receives a like number of common units from the Operating Partnership. The Company is committed to contributing to the Operating Partnership all proceeds from the share-based awards granted under the Parent Company's Long-Term Omnibus Plan (the “Plan”). Accordingly, the Parent Company's ownership in the Operating Partnership will increase based on the amount of proceeds contributed to the Operating Partnership for the common units it receives. As a result of the issuance of common units to the Parent Company for stock-based compensation, the Operating Partnership records the effect of stock-based compensation for awards of equity in the Parent Company.

	(l)	Segment Reporting

The Company's business is investing in retail shopping centers through direct ownership or partnership interests. The Company actively manages its portfolio of retail shopping centers and may from time to time make decisions to sell lower performing properties or developments not meeting its long-term investment objectives. The proceeds from sales are generally reinvested into higher quality retail shopping centers, through acquisitions, new developments, or redevelopment of existing centers, which management believes will generate sustainable revenue growth and attractive returns. It is

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

management's intent that all retail shopping centers will be owned or developed for investment purposes; however, the Company may decide to sell all or a portion of a development upon completion. The Company's revenues and net income are generated from the operation of its investment portfolio. The Company also earns fees for services provided to manage and lease retail shopping centers owned through joint ventures.

The Company's portfolio is located throughout the United States. Management does not distinguish or group its operations on a geographical basis for purposes of allocating resources or capital. The Company reviews operating and financial data for each property on an individual basis; therefore, the Company defines an operating segment as its individual properties. The individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the centers, tenants and operational processes, as well as long-term average financial performance.

	(m)	Business Concentration

Grocer anchor tenants represent approximately 20% of Pro-rata annual base rent. No single tenant accounts for 5% or more of revenue and none of the shopping centers are located outside the United States.

	(n)	Fair Value of Assets and Liabilities

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows:

	•	Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

	•	Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

	•	Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity.

The Company also remeasures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent periods if a remeasurement event occurs.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

	(o)	Recent Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements and expected impact on our financial statements:

Standard	Description	Date of adoption	Effect on the financial statements or other significant matters
Recently adopted:
Accounting Standard Updates (“ASU”) 2016-13, June 2016, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU also applies to how the Company evaluates impairments of any available-for-sale debt securities and any non-operating lease receivables arising from leases classified as sales-type or direct finance leases.	January 2020	The Company has completed its evaluation and adoption of this standard, which resulted in changes in evaluating impairment of its available-for-sale debt securities. Declines in fair value below amortized cost resulting from credit related factors will be reflected in earnings, within Net investment income in the accompanying Consolidated Statements of Operations. Changes in value from market related factors continue to be recognized in Other comprehensive income (“OCI”). The Company’s investments in available-for-sale debt securities are invested in investment grade quality holdings or U.S. government backed securities, and are well diversified. During the year ended December 31, 2020, the Company did not recognize any allowance for credit loss. Additionally, the Company’s non-operating lease receivables experienced no credit losses during the year ended December 31, 2020, and the Company has no other financial instruments, such as lease receivables arising from sales-type or direct finance leases, subject to this ASU.

ASU 2018-19, November 2018: Codification Improvements to Topic 326, Financial Instruments - Credit Losses	This ASU clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases.	January 2020	The Company has completed its evaluation and adoption of this standard with no additional changes in its accounting for operating leases and related receivables.

ASU 2018-13, August 2018: Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	This ASU modifies the disclosure requirements for fair value measurements within the scope of Topic 820, Fair Value Measurements, including the removal and modification of certain existing disclosures, and the additional of new disclosures.	January 2020	The Company has completed its evaluation and adoption of this new standard. The Company does not have any assets or liabilities measured to fair value requiring modified disclosures at December 31, 2020. See note 11 for fair value disclosures

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Standard	Description	Date of adoption	Effect on the financial statements or other significant matters


Recently adopted:





ASU 2018-15, August 2018, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract	The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU provides further clarification of the appropriate presentation of capitalized costs, the period over which to recognize the expense, the presentation within the Statements of Operations and Statements of Cash Flows, and the disclosure requirements.	January 2020	The Company has completed its evaluation and adoption of this standard. Qualifying implementation costs incurred in a cloud computing arrangement that is a service contract are no longer expensed as incurred but rather are deferred within Other assets and amortized to earnings, within General and administrative expense in the accompanying Consolidated Statements of Operations, over the term of the arrangement. Cash flows attributable to the service arrangements, including implementation thereof, are reflected as Operating cash flows within the Consolidated Statements of Cash Flows.

ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives, and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur.	March 2020 through December 31, 2022	The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. As additional index changes in the market occur, the Company will evaluate the impact of the guidance and may apply other elections as applicable.

Not yet adopted:

ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes		The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes, and also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. Notable changes of potential impact include income-based franchise taxes and interim period recognition of enacted changes in tax laws or rates.		January 2021		The Company has evaluated this update and determined it will not have a material impact to its financial condition, results of operations, cash flows or related footnote disclosures.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

2.Real Estate Investments

Acquisitions

The following tables detail consolidated shopping centers acquired or land acquired for development or redevelopment for the periods set forth below:

(in thousands)				December 31, 2020
Date Purchased		Property Name		City/State		Property Type		Ownership			Purchase Price				Debt Assumed, Net of Premiums				Intangible Assets				Intangible Liabilities
1/1/20		Country Walk Plaza (1)		Miami, FL		Operating		100%			$	39,625				16,359				3,294				2,452

(1)	The purchase price presented above reflects the purchase price for 100% of the property, of which the Company previously owned a 30% equity interest prior to acquiring the other partner’s interest and gaining control.

(in thousands)		December 31, 2019
Date Purchased	Property Name	City/State	Property Type	Ownership	Purchase Price		Debt Assumed, Net of Premiums		Intangible Assets		Intangible Liabilities
1/8/19	Pablo Plaza (1)	Jacksonville, FL	Operating	100%	$	600		—		—		—
2/8/19	Melrose Market	Seattle, WA	Operating	100%		15,515		—		941		358
6/18/19	The Field at Commonwealth Ph II (2)	Chantilly, VA	Development	100%		4,083		—		—		—
6/21/19	Culver Public Market	Culver City, CA	Development	100%		1,279		—		—		—
6/28/19	6401 Roosevelt	Seattle, WA	Operating	100%		3,550		—		—		—
7/1/19	The Pruneyard	Campbell, CA	Operating	100%		212,500		—		16,991		5,833
9/17/19	Circle Marina Center	Long Beach, CA	Operating	100%		50,000		—		3,717		962
Total property acquisitions					$	287,527		—		21,649		7,153

(1)	The Company purchased a 0.17 acre land parcel adjacent to the Company's existing operating Pablo Plaza for redevelopment.

(2)	The Company purchased The Field at Commonwealth Ph II, which is land adjacent to an existing operating property, for future development

3.	Property Dispositions

Dispositions

The following table provides a summary of consolidated shopping centers and consolidated land parcels disposed of during the periods set forth below:

	Year ended December 31,
(in thousands, except number sold data)	2020			2019			2018
Net proceeds from sale of real estate investments	$	189,444	(1)		137,572			250,445
Gain on sale of real estate, net of tax	$	67,465			24,242			28,343
Provision for impairment of real estate sold	$	958			1,836			31,041
Number of operating properties sold		6			7			10
Number of land parcels sold		11			6			9
Percent interest sold	50% - 100%				100	%		100	%

	(1)	Includes proceeds from repayment of a short-term note on the sale of one of the properties, issued at closing and repaid during the same three months ended March 31, 2020.

At December 31, 2020, the Company also had two properties classified within Properties held for sale on the Consolidated Balance Sheets.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

4.	Investments in Real Estate Partnerships

The Company invests in real estate partnerships, which consist of the following:

	December 31, 2020
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership		Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%		67	$	179,728		1,583,097		25,425		56,244
New York Common Retirement Fund (NYC) (1)	30.00%		4		27,627		205,332		488		4,241
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%		7		8,699		136,120		1,030		5,383
Columbia Regency Partners II, LLC (Columbia II)	20.00%		13		37,882		377,246		1,045		5,103
Cameron Village, LLC (Cameron)	30.00%		1		10,108		94,551		757		2,531
RegCal, LLC (RegCal)	25.00%		6		25,908		107,283		1,296		5,397
US Regency Retail I, LLC (USAA) (2)	20.01%		7		—		85,006		790		3,948
Other investments in real estate partnerships (3)	35.00% - 50.00%		9		177,203		478,592		3,338		8,574
Total investments in real estate partnerships			114	$	467,155		3,067,227		34,169		91,421

(1)	On January 1, 2020, the Company purchased the remaining 70% of a property owned by the NYC partnership (Country Walk Plaza), as discussed in note 2, and therefore all earnings of this property are included in consolidated results from the date of acquisition and excluded from partnership earnings.

(2)	The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency’s carrying value of its investment, resulting in a negative investment balance of $4.4 million, which is recorded within Accounts Payable and other liabilities in the Consolidated Balance Sheets.

(3)	In January 2020, the Company purchased an additional 16.62% interest in Town and Country Shopping Center, bringing its total ownership interest to 35%.

	December 31, 2019
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership			Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%		68	$	187,597		1,612,459		43,536			96,721
New York Common Retirement Fund (NYC) (1)	30.00%		6		41,422		260,512		(9,967	)		(5,832	)
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%		7		9,201		139,253		1,626			8,406
Columbia Regency Partners II, LLC (Columbia II)	20.00%		13		39,453		385,960		1,748			8,742
Cameron Village, LLC (Cameron)	30.00%		1		10,641		96,101		1,062			3,572
RegCal, LLC (RegCal)	25.00%		6		26,417		109,226		3,796			16,276
US Regency Retail I, LLC (USAA) (2)	20.01%		7		—		87,231		1,028			5,137
Other investments in real estate partnerships (3)	18.38% - 50.00%		8		154,791		468,142		18,127			38,182
Total investments in real estate partnerships			116	$	469,522		3,158,884		60,956			171,204

(1)	During the third quarter of 2019, a $10.9 million impairment of real estate was recognized within the NYC partnership from changes in the expected hold periods of various properties.

(2)	The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency’s carrying value of its investment resulting in a negative investment balance of $3.9 million, which is recorded within Accounts Payable and other liabilities in the Consolidated Balance Sheets.

(3)	Includes our investment in the Town and Country shopping center, which began with an initial 9.38% ownership percent in 2018, with an additional 9.0% interest acquired during 2019.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows:

	December 31,
(in thousands)	2020		2019
Investments in real estate, net	$	2,817,713		2,917,415
Acquired lease intangible assets, net		32,607		40,549
Other assets		216,907		200,920
Total assets	$	3,067,227		3,158,884
Notes payable	$	1,557,043		1,577,467
Acquired lease intangible liabilities, net		33,223		44,387
Other liabilities		97,321		96,388
Capital - Regency		509,873		508,875
Capital - Third parties		869,767		931,767
Total liabilities and capital	$	3,067,227		3,158,884

The following table reconciles the Company's capital recorded by the unconsolidated partnerships to the Company's investments in real estate partnerships reported in the accompanying Consolidated Balance Sheet:

	December 31,
(in thousands)	2020			2019
Capital - Regency	$	509,873			508,875
Basis difference		(47,119	)		(43,296	)
Negative investment in USAA (1)		4,401			3,943
Investments in real estate partnerships	$	467,155			469,522

	(1)	The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment resulting in a negative investment balance, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.

The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows:

	Year ended December 31,
(in thousands)	2020			2019			2018
Total revenues	$	381,094			417,053			414,631
Operating expenses:
Depreciation and amortization		101,590			97,844			99,847
Operating and maintenance		65,146			65,811			66,299
General and administrative		5,870			6,201			5,697
Real estate taxes		53,747			53,410			54,119
Other operating expenses		3,126			2,709			2,700
Total operating expenses	$	229,479			225,975			228,662
Other expense (income):
Interest expense, net		66,786			75,449			73,508
Gain on sale of real estate		(7,146	)		(64,798	)		(16,624	)
Early extinguishment of debt		554			—			—
Provision for impairment, net of tax		—			9,223			—
Total other expense (income)		60,194			19,874			56,884
Net income of the Partnerships	$	91,421			171,204			129,085
The Company's share of net income of the Partnerships	$	34,169			60,956			42,974

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships during 2020, which had no such acquisitions in 2019:

(in thousands)				Year ended December 31, 2020
Date Purchased		Property Name		City/State		Property Type		Co-investment Partner		Ownership %			Purchase Price				Debt Assumed, Net of Premiums				Intangible Assets				Intangible Liabilities
11/13/20		Eastfield at Baybrook		Houston, TX		Development		Other		50.00%			$	4,491				—				—				—

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:

	Year ended December 31,
(in thousands)	2020		2019		2018
Proceeds from sale of real estate investments	$	27,974		142,754		27,144
Gain on sale of real estate	$	7,147		64,798		16,624
The Company's share of gain on sale of real estate	$	2,413		29,422		3,608
Number of operating properties sold		2		4		1
Number of land out-parcels sold		—		—		2

Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2020, were as follows:

(in thousands) Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments
2021	$	11,257	333,068		15,635	359,960		124,100
2022		7,736	254,873		—	262,609		97,465
2023		3,196	171,608		—	174,804		65,137
2024		1,796	33,690		—	35,486		14,217
2025		2,168	146,000		—	148,168		44,853
Beyond 5 Years		10,859	574,321		—	585,180		191,940
Net unamortized loan costs, debt premium / (discount)		—	(9,164	)	—	(9,164	)	(3,054	)
Total notes payable	$	37,012	1,504,396		15,635	1,557,043		534,658

These fixed and variable rate loans are all non-recourse to the partnerships, and mature through 2034, with 91.5% having a weighted average fixed interest rate of 4.1%. The remaining notes payable float over LIBOR and had a weighted average variable interest rate of 2.4% at December 31, 2020. Maturing loans will be repaid from proceeds from refinancing, partner capital contributions, or a combination thereof. The Company is obligated to contribute its Pro-rata share to fund maturities if the loans are not refinanced, and it has the capacity to do so from existing cash balances, availability on its line of credit, and operating cash flows. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call.

Management fee income

In addition to earning our Pro-rata share of net income or loss in each of these co-investment partnerships, we receive fees, as follows:

		Year ended December 31,
(in thousands)		2020				2019				2018
Asset management, property management, leasing, and investment and financing services		$	26,618				28,878				27,873

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

5.	Other Assets

The following table represents the components of Other assets in the accompanying Consolidated Balance Sheets:

(in thousands)	December 31, 2020
Goodwill	$	173,868	307,434
Investments		60,692	50,354
Prepaid and other		17,802	18,169
Derivative assets		—	2,987
Furniture, fixtures, and equipment, net		6,560	7,098
Deferred financing costs, net		2,524	4,687
Total other assets	$	261,446	390,729

The following table presents the goodwill balances and activity during the year to date periods ended:

	December 31, 2020									December 31, 2019
(in thousands)	Goodwill			Accumulated Impairment Losses			Total			Goodwill			Accumulated Impairment Losses			Total
Beginning of year balance	$	310,388			(2,954	)		307,434			316,858			(2,715	)		314,143
Goodwill allocated to Provision for impairment		—			(132,179	)		(132,179	)		—			(2,954	)		(2,954	)
Goodwill allocated to Properties held for sale		(1,191	)		1,191			—			(2,472	)		—			(2,472	)
Goodwill associated with disposed reporting units:								—									—
Goodwill allocated to Provision for impairment		—			—			—			(1,779	)		1,779			—
Goodwill allocated to Gain on sale of real estate		(1,784	)		397			(1,387	)		(2,219	)		936			(1,283	)
End of year balance	$	307,413			(133,545	)		173,868			310,388			(2,954	)		307,434

As the Company identifies properties (“reporting units”) that no longer meet its investment criteria, it will evaluate the property for potential sale. A decision to sell a reporting unit results in the need to evaluate its goodwill for recoverability and may result in impairment. Additionally, other changes impacting a reporting unit may be considered a triggering event. If events occur that trigger an impairment evaluation at multiple reporting units, a goodwill impairment may be significant.

During the three months ended March 31, 2020, the Company recognized $132.2 million of Goodwill impairment. The market disruptions related to the significant economic impacts of the pandemic triggered evaluation of reporting unit fair values for goodwill impairment. The Company’s reporting units are at the individual property level. The carrying value of long-lived assets within each of the reporting units were first tested for recoverability with no resulting impairments. Next, the fair value of each reporting unit was compared to its carrying value, including goodwill. Of the 269 reporting units with goodwill, 87 of those were determined to have fair values lower than carrying value. As such, goodwill impairment losses totaling $132.2 million were recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeded its fair value, limited to the total amount of goodwill allocated to that reporting unit. Fair values of the reporting units were determined using a discounted cash flow approach, including then current market cash flow assumptions for impacts to existing tenant contractual rent as well as prospective future rent and percent leased changes and related capital and operating expenditures. The cap rates and discount rates used in the analysis reflect management’s best estimate of market rates adjusted for the current environment. No additional Goodwill impairments were recognized after March 31, 2020, including as a result of the Company’s annual goodwill impairment evaluation in November 2020.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

6.	Acquired Lease Intangibles

The Company had the following acquired lease intangibles:

	December 31,
(in thousands)	2020			2019
In-place leases	$	414,298		$	438,188
Above-market leases		59,381			63,944
Total intangible assets		473,679			502,132
Accumulated amortization		(284,880	)		(259,310	)
Acquired lease intangible assets, net	$	188,799			242,822
Below-market leases		523,678			558,936
Accumulated amortization		(145,966	)		(131,676	)
Acquired lease intangible liabilities, net	$	377,712			427,260

The following table provides a summary of amortization and net accretion amounts from acquired lease intangibles:

	Year ended December 31,
(in thousands)	2020		2019		2018		Line item in Consolidated Statements of Operations
In-place lease amortization	$	48,297		60,250		76,649	Depreciation and amortization
Above-market lease amortization		7,658		9,112		10,433	Lease income
Below-market ground lease amortization (1)		—		—		1,688	Operating and maintenance
Acquired lease intangible asset amortization	$	55,955		69,362		88,770

Below-market lease amortization	$	50,103		54,730		45,561	Lease income
Above-market ground lease amortization (1)		—		—		94	Operating and maintenance
Acquired lease intangible liability amortization	$	50,103		54,730		45,655

	(1)	On January 1, 2019, the Company adopted the new accounting guidance in ASC Topic 842, Leases, including all related ASUs, and correspondingly reclassified Below-market ground leases and Above-market ground leases against the Company’s Right of use asset, where they continue to be amortized to Operating and maintenance in the accompanying Consolidated Statements of Operations.

The estimated aggregate amortization and net accretion amounts from acquired lease intangibles for the next five years are as follows:

(in thousands)
In Process Year Ending December 31,	Amortization of In-place lease intangibles		Net accretion of Above / Below market lease intangibles
2021	$	31,120	$	24,237
2022		24,137		22,265
2023		19,580		21,183
2024		15,364		19,122
2025		12,604		18,540

7.	Leases

Lessor Accounting

All of the Company’s leases are classified as operating leases. The Company's Lease income is comprised of both fixed and variable income. Fixed and in-substance fixed lease income includes stated amounts per the lease contract, which are primarily related to base rent, and in some cases stated amounts for CAM, real estate taxes, and insurance. Income for these amounts is recognized on a straight-line basis.

Variable lease income includes the following two main items in the lease contracts:

	(i)	Recoveries from tenants represents amounts which tenants are contractually obligated to reimburse the Company for the tenants’ portion of actual Recoverable Costs incurred. Generally the Company’s leases provide for the tenants to

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

		reimburse the Company based on the tenants’ share of the actual costs incurred in proportion to the tenants’ share of leased space in the property.

	(ii)	Percentage rent represents amounts billable to tenants based on the tenants' actual sales volume in excess of levels specified in the lease contract.

The following table provides a disaggregation of lease income recognized as either fixed or variable lease income based on the criteria specified in ASC Topic 842:

(in thousands)	December 31, 2020
Operating lease income
Fixed and in-substance fixed lease income	$	807,603		813,444
Variable lease income		247,384		247,861
Other lease related income, net:
Above/below market rent and tenant rent inducement amortization, net		42,219		45,392
Uncollectible straight line rent		(34,673	)	(7,002	)
Uncollectible amounts billable in lease income		(82,367	)	(5,394	)
Total lease income	$	980,166		1,094,301

During the year ended December 31, 2020, the Company experienced a higher rate of uncollectible lease income driven by changes in expectations of collectibility of both past due rents and recoveries and future rent steps given the impact of the pandemic on our tenants.

Future minimum rents under non-cancelable operating leases, excluding variable lease payments, are as follows:

(in thousands)
For the year ended December 31,	December 31, 2020
2021	$	754,396
2022		676,083
2023		578,023
2024		480,768
2025		372,377
Thereafter		1,329,274
Total	$	4,190,921

Lessee Accounting

The Company has shopping centers that are subject to non-cancelable, long-term ground leases where a third party owns the underlying land and has leased the land to the Company to construct and/or operate a shopping center.

The Company has 22 properties within its consolidated real estate portfolio that are either partially or completely on land subject to ground leases with third parties. Accordingly, the Company owns only a long-term leasehold or similar interest in these properties. These ground leases expire through the year 2101, and in most cases, provide for renewal options.

In addition, the Company has non-cancelable operating leases pertaining to office space from which it conducts its business. Office leases expire through the year 2029, and in many cases, provide for renewal options.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The ground and office lease expense is recognized on a straight-line basis over the term of the leases, including management's estimate of expected option renewal periods. Operating lease expense under the Company's ground and office leases was as follows, including straight-line rent expense and variable lease expenses such as CPI increases, percentage rent and reimbursements of landlord costs:

(in thousands)	December 31, 2020
Fixed operating lease expense
Ground leases	$	13,716	13,982
Office leases		4,334	4,229
Total fixed operating lease expense		18,050	18,211
Variable lease expense
Ground leases		1,044	1,693
Office leases		585	552
Total variable lease expense		1,629	2,245
Total lease expense	$	19,679	20,456
Cash paid for amounts included in the measurement of operating lease liabilities
Operating cash flows for operating leases	$	15,003	14,815

Operating lease expense under the Company's ground and office leases was $19.7 million, $20.5 million and $19.1 million for the years ended December 31, 2020, 2019, and 2018 respectively, which includes fixed and variable rent expense.

The following table summarizes the undiscounted future cash flows by year attributable to the operating lease liabilities under ground and office leases as of December 31, 2020, and provides a reconciliation to the Lease liability included in the accompanying Consolidated Balance Sheets:

(in thousands)	Lease Liabilities
For the year ended December 31,	Ground Leases			Office Leases			Total
2021	$	10,778			4,654			15,432
2022		10,837			3,379			14,216
2023		11,054			2,580			13,634
2024		11,103			2,114			13,217
2025		11,106			1,961			13,067
Thereafter		542,184			2,777			544,961
Total undiscounted lease liabilities	$	597,062			17,465			614,527
Present value discount		(392,848	)		(1,289	)		(394,137	)
Lease liabilities	$	204,214			16,176			220,390
Weighted average discount rate		5.2	%		3.8	%
Weighted average remaining term (in years)		48.1			5.0

8.	Income Taxes

The Company has elected to be taxed as a REIT under the applicable provisions of the Internal Revenue Code with certain of its subsidiaries treated as taxable REIT subsidiary (“TRS”) entities, which are subject to federal and state income taxes.

The following table summarizes the tax status of dividends paid on our common shares:

	Year ended December 31,
(in thousands)	2020				2019			2018
Dividend per share	$	2.19		(1)		2.34			2.22
Ordinary income		100	%			97	%		98	%
Capital gain		—	%			3	%		—	%
Qualified dividend income		—	%			—	%		2	%
Section 199A dividend		100	%			97	%		98	%

(1) During 2020, the Company declared four quarterly dividends, the last of which was paid on January 5, 2021, with a portion allocated to the 2020 dividend period, and the balance allocated to 2021.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Our consolidated expense (benefit) for income taxes for the years ended December 31, 2020, 2019, and 2018 was as follows:

	Year ended December 31,
(in thousands)	2020			2019			2018
Income tax expense (benefit):
Current	$	2,157			1,576			5,667
Deferred		(891	)		(331	)		(5,145	)
Total income tax expense (benefit) (1)	$	1,266			1,245			522

	(1)	Includes $(355,000), $757,000 and $706,000 of tax (benefit) expense presented within Other operating expenses during the years ended December 31, 2020, 2019, and 2018, respectively. Additionally, $1.6 million, $488,000, and ($184,000) of tax expense (benefit) is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2020, 2019, and 2018, respectively.

The TRS entities are subject to federal and state income taxes and file separate tax returns. Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate to pretax income of the TRS entities, as follows:

	Year ended December 31,
(in thousands)	2020			2019			2018
Computed expected tax (benefit) expense	$	(3,665	)		1,587			(584	)
State income tax, net of federal benefit		(593	)		650			636
Valuation allowance		1,043			(91	)		(392	)
Permanent items		5,079			(819	)		1,067
All other items		(598	)		(82	)		(205	)
Total income tax expense (1)		1,266			1,245			522
Income tax expense attributable to operations (1)	$	1,266			1,245			522

	(1)	Includes ($355,000), $757,000, and $706,000 of tax (benefit) expense presented within Other operating expenses during the years ended December 31, 2020, 2019, and 2017, respectively. Additionally, $1.6 million, $488,000, and ($184,000) of tax expense (benefit) is presented within Gain on sale of real estate (or Provision for impairment), net of tax, during the years ended December 31, 2020, 2019 and 2018, respectively.

The tax effects of temporary differences (included in Accounts payable and other liabilities in the accompanying Consolidated Balance Sheets) are summarized as follows:

	December 31,
(in thousands)	2020			2019
Deferred tax assets
Provision for impairment	$	508			—
Deferred interest expense		—			1,341
Fixed assets		1,077			—
Net operating loss carryforward		109			106
Other		771			88
Deferred tax assets		2,465			1,535
Valuation allowance		(2,465	)		(680	)
Deferred tax assets, net	$	—			855
Deferred tax liabilities
Straight line rent	$	(88	)		(100	)
Fixed assets		(12,943	)		(14,404	)
Deferred tax liabilities		(13,031	)		(14,504	)
Net deferred tax liabilities	$	(13,031	)		(13,649	)

The net deferred tax liability decreased during 2020 due to sales and depreciation of properties at TRS entities. The Company believes it is more likely than not that the remaining deferred tax assets will not be realized unless tax planning strategies are implemented.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

9.	Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consists of the following:

	Maturing Through	Weighted Average Contractual Rate	Weighted Average Effective Rate	December 31,
(in thousands)				2020		2019
Notes payable:
Fixed rate mortgage loans	10/1/2036	4.3%	4.0%	$	272,749	$	342,020
Variable rate mortgage loans (1)	6/2/2027	2.8%	2.9%		146,046		148,389
Fixed rate unsecured public and private debt	3/15/2049	3.8%	4.0%		3,239,609		2,944,752
Total notes payable				$	3,658,404		3,435,161
Unsecured credit facilities:
Line of Credit (2)	3/23/2022	1.0%	1.4%	$	—	$	220,000
Term Loan (3)	1/5/2022	2.0%	2.1%		264,680		264,383
Total unsecured credit facilities				$	264,680		484,383
Total debt outstanding				$	3,923,084		3,919,544

(1)	Includes six mortgages with interest rates that vary on LIBOR based formulas. Four of these variable rate loans have interest rate swaps in place to fix the interest rates. The effective fixed rates of the loans range from 2.5% to 4.1%.

(2)	Weighted average effective rate for the Line is calculated based on a fully drawn Line balance. During February 2021, the Company amended its Line agreement to extend the maturity to March 23, 2025 retaining the same overall borrowing capacity of $1.25 billion and credit-based interest rate spread over LIBOR currently equal to 0.875%.

(3)	In January 2021, the Company repaid in full the $265 million Term Loan, using cash on hand.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public and private debt. Mortgage loans may be repaid before maturity, but could be subject to yield maintenance premiums, and are generally due in monthly installments of principal and interest or interest only. Unsecured public debt may be repaid before maturity subject to accrued and unpaid interest through the proposed redemption date and a make-whole premium. Interest on unsecured public and private debt is payable semi-annually.

The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2020, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

Unsecured Credit Facilities

At December 31, 2020, the Company had an unsecured line of credit commitment (the “Line”) and an unsecured term loan (the “Term Loan”) under separate credit agreements with a syndicate of banks.

At December 31, 2020, the Line had a borrowing capacity of $1.25 billion, which is reduced by the balance of outstanding borrowings and commitments from issued letters of credit. The Line bears interest at a variable rate of LIBOR plus 0.875% and is subject to a commitment fee of 0.15%, both of which are based on the Company's corporate credit rating.

On February 9, 2021, the Company entered into an Amended and Restated Credit Agreement, which among other items, i) retains a borrowing capacity of $ 1.25 billion, ii) includes a $125 million sublimit for swingline loans and $50 million available for issuance of letters of credits, iii) extends the maturity date to March 23, 2025 and iv) includes an option to extend the maturity date for two six-month periods. The existing financial covenants under the Line remained unchanged.

The Term Loan bears interest at a variable rate based on LIBOR plus 0.95% and has an interest rate swap in place to fix the interest rate at 2.0%, as discussed further in note 10. During January 2021, the Company repaid in full the $265 million Term Loan, and settled its related interest rate swap, as discussed in Note 10.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Ratio of Indebtedness to Total Asset Value (“TAV”), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted EBITDA to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2020, the Company is in compliance with all financial covenants for the Line and Term Loan.

Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:

(in thousands)	December 31, 2020
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities (1)				Total
2021	$	11,598	$	31,562	$	—				43,160
2022		11,797		5,848		265,000		(2)		282,645
2023		10,124		65,724		—				75,848
2024		5,301		90,744		250,000				346,045
2025		4,207		40,000		250,000				294,207
Beyond 5 Years		17,505		121,303		2,775,000				2,913,808
Unamortized debt premium/(discount) and issuance costs		—		3,082		(35,711	)			(32,629	)
Total notes payable	$	60,532		358,263		3,504,289				3,923,084

	(1)	Includes unsecured public and private debt and unsecured credit facilities.

	(2)	In January 2021, the Company repaid in full the $265 million Term Loan.

The Company has $31.6 million of debt maturing over the next twelve months, which is in the form of non-recourse mortgage loans. The Company currently intends to repay the maturing balances and leave the properties unencumbered. The Company has sufficient capacity on its Line to repay the maturing debt, if necessary.

10.	Derivative Financial Instruments

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors, and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings. The Company does not anticipate that any of the counterparties will fail to meet their obligations.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets:

								Fair Value at December 31,
(in thousands)								Assets (Liabilities) (1)
Effective Date	Maturity Date	Notional Amount		Bank Pays Variable Rate of	Regency Pays Fixed Rate of			2020			2019
8/1/16	1/5/22 (2)	$	265,000	1 Month LIBOR with Floor		1.053	%	$	(2,472	)		2,674
4/7/16	4/1/23		19,405	1 Month LIBOR		1.303	%		(494	)		148
12/1/16	11/1/23		32,369	1 Month LIBOR		1.490	%		(1,181	)		84
9/17/19	3/17/25		24,000	1 Month LIBOR		1.542	%		(1,288	)		81
6/2/17	6/2/27		36,592	1 Month LIBOR with Floor		2.366	%		(3,856	)		(1,515	)
Total derivative financial instruments								$	(9,291	)		1,472

(1)	Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities.

(2)	In January 2021, the Company early settled the $265 million interest rate swap in connection with its repayment of the Term Loan.

These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and, as of December 31, 2020, does not have any derivatives that are not designated as hedges.

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:

Location and Amount of Gain (Loss) Recognized in OCI on Derivative									Location and Amount of Gain (Loss) Reclassified from AOCI into Income							Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
	Year ended December 31,									Year ended December 31,							Year ended December 31,
(in thousands)	2020			2019			2018			2020		2019		2018			2020		2019		2018
Interest rate swaps	$	(19,187	)		(15,585	)		402	Interest expense, net	$	8,790		3,269		5,342	Interest expense, net	$	156,678		151,264		148,456
									Early extinguishment of debt (1)	$	2,472		—		—	Early extinguishment of debt	$	21,837		11,982		11,172

(1)	At December 31, 2020, based on intent to repay the Term Loan in January 2021, the Company recognized the Accumulated other comprehensive loss for the Term Loan swap in earnings within Early extinguishment of debt.

As of December 31, 2020, the Company expects approximately $3.7 million of accumulated comprehensive losses on derivative instruments in AOCI, including the Company's share from its Investments in real estate partnerships, to be reclassified into earnings during the next 12 months.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

11.	Fair Value Measurements

	(a)	Disclosure of Fair Value of Financial Instruments

All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management's estimation, reasonably approximates their fair values, except for the following:

	December 31,
	2020				2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Notes payable	$	3,658,405		4,102,382	$	3,435,161		3,688,604
Unsecured credit facilities	$	264,679		265,226	$	484,383		489,496

The above fair values represent management's estimate of the amounts that would be received from selling those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants as of December 31, 2020 and 2019, respectively. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company's own judgments about the assumptions that market participants would use in pricing the asset or liability.

The Company develops its judgments based on the best information available at the measurement date, including expected cash flows, appropriately risk-adjusted discount rates, and available observable and unobservable inputs. Service providers involved in fair value measurements are evaluated for competency and qualifications on an ongoing basis. As considerable judgment is often necessary to estimate the fair value of these financial instruments, the fair values presented above are not necessarily indicative of amounts that will be realized upon disposition of the financial instruments.

	(b)	Fair Value Measurements

The following financial instruments are measured at fair value on a recurring basis:

Securities

The Company has investments in marketable securities that are included within Other assets on the accompanying Consolidated Balance Sheets. The fair value of the securities was determined using quoted prices in active markets, which are considered Level 1 inputs of the fair value hierarchy. Changes in the value of securities are recorded within Net investment (income) loss in the accompanying Consolidated Statements of Operations, and includes unrealized (gains) losses of ($3.0) million, ($3.8) million, and $3.3 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Available-for-Sale Debt Securities

Available-for-sale debt securities consist of investments in certificates of deposit and corporate bonds, and are recorded at fair value using matrix pricing methods to estimate fair value, which are considered Level 2 inputs of the fair value hierarchy. Unrealized gains or losses on these debt securities are recognized through other comprehensive income.

Interest Rate Derivatives

The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.

The following tables present the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis:

	Fair Value Measurements as of December 31, 2020
(in thousands)	Balance			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities	$	44,986			44,986		—			—
Available-for-sale debt securities		15,706			—		15,706			—
Total	$	60,692			44,986		15,706			—
Liabilities:
Interest rate derivatives	$	(9,291	)		—		(9,291	)		—

	Fair Value Measurements as of December 31, 2019
(in thousands)	Balance			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities	$	39,599			39,599		—			—
Available-for-sale debt securities		10,755			—		10,755			—
Interest rate derivatives		2,987			—		2,987			—
Total	$	53,341			39,599		13,742			—
Liabilities:
Interest rate derivatives	$	(1,515	)		—		(1,515	)		—

The following tables present the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a non-recurring basis:

		Fair Value Measurements as of December 31, 2020
(in thousands)		Balance				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total Gains (Losses)
Operating properties		$	25,000				—				25,000				—				(17,532	)

		Fair Value Measurements as of December 31, 2019
(in thousands)		Balance				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total Gains (Losses)
Operating properties		$	71,131				—				28,131				43,000				(50,553	)

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

During the years ended December 31, 2020 and 2019, the Company recorded Provision for impairment of $17.5 million and $40.3 million, respectively, on one operating property which is classified as held and used. The property, which is located in the Manhattan market of New York City, was impaired during 2019 as a result of a fair value analysis performed based on lease up expectations after its single retail tenant declared bankruptcy. As the pandemic continued to impact the leasing market, limiting visibility for replacement prospects for this property, the hold period probabilities shifted triggering further evaluation of the current fair value resulting in the additional impairment charge during the fourth quarter of 2020.

The 2019 fair value was derived using a discounted cash flow model, which included assumptions around redevelopment of the asset to its highest and best use as a mixed-use project and re-leasing the space. The discount rate of 8.58% and terminal capitalization rate of 4.75% used in the discounted cash flow model are considered significant inputs and assumptions to estimating the fair value of the property, which is considered a Level 3 input per the fair value hierarchy. The 2020 fair value was based on third-party offers for the property and is reflected in the above Level 2 fair value hierarchy.

During the year ended December 31, 2019, the Company also recorded a $10.2 million Provision for impairment on one operating property which was classified as held and used and resulted in a fair value of $28.1 million. That operating property is classified as held for sale at December 31, 2020. The property was remeasured to fair value based on its expected selling price and is reflected in the above Level 2 fair value hierarchy.

12.	Equity and Capital

Common Stock of the Parent Company

At the Market (“ATM”) Program

Under the Parent Company's ATM equity offering program, the Parent Company may sell up to $500.0 million of common stock at prices determined by the market at the time of sale. There were no shares issued under the ATM equity program during the year ended December 31, 2020. As of December 31, 2020, all $500 million of common stock authorized under the ATM program remained available for issuance.

Under a previous ATM equity program which expired on March 31, 2020, the Company sold shares through forward sale agreements, which the Company settled during March 2020. At settlement, the Company issued 1,894,845 shares of its common stock, receiving $125.8 million of net proceeds which were used for working capital and general corporate purposes.

Share Repurchase Program

On February 4, 2020, the Company's Board authorized a common share repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million of shares of its outstanding common stock through open market purchases or in privately negotiated transactions. Any shares purchased, if not retired, will be treated as treasury shares. The program is set to expire on February 5, 2021, but may be modified at the discretion of the Board. The timing and actual number of shares purchased under the program depend upon marketplace conditions, liquidity needs, and other factors. Through December 31, 2020, no shares have been repurchased under this program.

On February 3, 2021, the Company’s Board authorized a new common share repurchase program under which the Company may purchase, from time to time, up to a maximum of $250 million of its outstanding common stock through open market purchases or in privately negotiated transactions. Any shares purchased, if not retired, will be treated as treasury shares. This new program is set to expire on February 3, 2023.

Common Units of the Operating Partnership

Common units of the operating partnership are issued or redeemed and retired for each of the shares of Parent Company common stock issued or repurchased and retired, as described above.

In January 2020, the Operating Partnership issued 18,613 exchangeable operating partnership units, valued at $1.3 million, as partial purchase price consideration for the acquisition of an additional 16.62% interest in an operating shopping center.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

General Partners

The Parent Company, as general partner, owned the following Partnership Units outstanding:

	December 31,
(in thousands)	2020			2019
Partnership units owned by the general partner		169,680			167,571
Partnership units owned by the limited partners		765			746
Total partnership units outstanding		170,445			168,317
Percentage of partnership units owned by the general partner		99.6	%		99.6	%

13.	Stock-Based Compensation

The Company recorded stock-based compensation in General and administrative expenses in the accompanying Consolidated Statements of Operations, the components of which are further described below:

	Year ended December 31,
(in thousands)	2020			2019			2018
Restricted stock (1)	$	14,248			16,254			16,745
Directors' fees paid in common stock		452			410			399
Capitalized stock-based compensation (2)		(1,119	)		(2,325	)		(3,509	)
Stock-based compensation, net of capitalization	$	13,581			14,339			13,635

	(1)	Includes amortization of the grant date fair value of restricted stock awards over the respective vesting periods.

	(2)	Includes compensation expense specifically identifiable to development and redevelopment activities. During 2018, these amounts also include compensation expense specifically identifiable to leasing activities, as non-contingent internal leasing costs were capitalizable prior to the adoption of Topic 842, Leases, on January 1, 2019.

The Company established its Omnibus Incentive Plan (the “Plan”) under which the Board of Directors may grant stock options and other stock-based awards to officers, directors, and other key employees. The Plan allows the Company to issue up to 5.4 million shares in the form of the Parent Company's common stock or stock options. As of December 31, 2020, there were 4.7 million shares available for grant under the Plan either through stock options or restricted stock awards.

Restricted Stock Awards

The Company grants restricted stock under the Plan to its employees as a form of long-term compensation and retention. The terms of each restricted stock grant vary depending upon the participant's responsibilities and position within the Company. The Company's stock grants can be categorized as either time-based awards, performance-based awards, or market-based awards. All awards are valued at fair value, earn dividends throughout the vesting period, and have no voting rights. Fair value is measured using the grant date market price for all time-based or performance-based awards. Market based awards are valued using a Monte Carlo simulation to estimate the fair value based on the probability of satisfying the market conditions and the projected stock price at the time of payout, discounted to the valuation date over a three year performance period. Assumptions include historic volatility over the previous three year period, risk-free interest rates, and Regency's historic daily return as compared to the market index. Since the award payout includes dividend equivalents and the total shareholder return includes the value of dividends, no dividend yield assumption is required for the valuation. Compensation expense is measured at the grant date and recognized on a straight-line basis over the requisite vesting period for the entire award.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

The following table summarizes non-vested restricted stock activity:

	Year ended December 31, 2020
	Number of Shares			Intrinsic Value (in thousands)		Weighted Average Grant Price
Non-vested as of December 31, 2019		623,090
Time-based awards granted (1) (4)		144,497				$	57.17
Performance-based awards granted (2) (4)		8,898				$	62.04
Market-based awards granted (3) (4)		109,030				$	73.54
Change in market-based awards earned for performance (3)		22,906				$	62.39
Vested (5)		(244,694	)			$	58.94
Forfeited		(44,792	)			$	63.45
Non-vested as of December 31, 2020 (6)		618,935		$	28,217

	(1)	Time-based awards vest beginning on the first anniversary following the grant date over a one or four year service period. These grants are subject only to continued employment and are not dependent on future performance measures. Accordingly, if such vesting criteria are not met, compensation cost previously recognized would be reversed.

	(2)	Performance-based awards are earned subject to future performance measurements. Once the performance criteria are achieved and the actual number of shares earned is determined, shares vest over a required service period. The Company considers the likelihood of meeting the performance criteria based upon management's estimates from which it determines the amounts recognized as expense on a periodic basis.

	(3)	Market-based awards are earned dependent upon the Company's total shareholder return in relation to the shareholder return of a NAREIT index over a three-year period. Once the performance criteria are met and the actual number of shares earned is determined, the shares are immediately vested and distributed. The probability of meeting the criteria is considered when calculating the estimated fair value on the date of grant using a Monte Carlo simulation. These awards are accounted for as awards with market criteria, with compensation cost recognized over the service period, regardless of whether the performance criteria are achieved and the awards are ultimately earned. The significant assumptions underlying determination of fair values for market-based awards granted were as follows:

	Year ended December 31,
	2020			2019			2018
Volatility		18.50	%		19.30	%		19.20	%
Risk free interest rate		1.30	%		2.43	%		2.26	%

	(4)	The weighted-average grant price for restricted stock granted during the years is summarized below:

		Year ended December 31,
		2020				2019				2018
Weighted-average grant price for restricted stock		$	64.14			$	65.11			$	63.50

	(5)	The total intrinsic value of restricted stock vested during the years is summarized below (in thousands):

		Year ended December 31,
		2020				2019				2018
Intrinsic value of restricted stock vested		$	14,423			$	17,684			$	17,306

	(6)	As of December 31, 2020, there was $12.9 million of unrecognized compensation cost related to non-vested restricted stock granted under the Parent Company's Plan. When recognized, this compensation results in additional paid in capital in the accompanying Consolidated Statements of Equity of the Parent Company and in general partner preferred and common units in the accompanying Consolidated Statements of Capital of the Operating Partnership. This unrecognized compensation cost is expected to be recognized over the next three years. The Company issues new restricted stock from its authorized shares available at the date of grant.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

14.	Saving and Retirement Plans

401(k) Retirement Plan

The Company maintains a 401(k) retirement plan covering substantially all employees and permits participants to defer eligible compensation up to the maximum allowable amount determined by the IRS. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to a maximum of $5,000 of their eligible compensation, is fully vested and funded as of December 31, 2020. Additionally, an annual profit sharing contribution may be made, which vests over a three year period. Costs for Company contributions to the plan totaled $3.5 million, $3.5 million, and $3.9 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Non-Qualified Deferred Compensation Plan (“NQDCP”)

The Company maintains a NQDCP which allows select employees and directors to defer part or all of their cash bonus, director fees, and vested restricted stock awards. All contributions into the participants' accounts are fully vested upon contribution to the NQDCP and are deposited in a Rabbi trust.

The following table reflects the balances of the assets and deferred compensation liabilities of the Rabbi trust and related participant account obligations in the accompanying Consolidated Balance Sheets, excluding Regency stock:

	Year ended December 31,
(in thousands)	2020		2019		Location in Consolidated Balance Sheets
Assets:
Securities	$	40,964		36,849	Other assets
Liabilities:
Deferred compensation obligation	$	40,962		36,755	Accounts payable and other liabilities

Realized and unrealized gains and losses on securities held in the NQDCP are recognized within Net investment income in the accompanying Consolidated Statements of Operations. Changes in participant obligations, which is based on changes in the value of their investment elections, is recognized within General and administrative expenses within the accompanying Consolidated Statements of Operations.

Investments in shares of the Company's common stock are included, at cost, as Treasury stock in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of General partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. The participant's deferred compensation liability attributable to the participants' investments in shares of the Company's common stock are included, at cost, within Additional paid in capital in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of General partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. Changes in participant account balances related to the Regency common stock fund are recorded directly within stockholders' equity.

15.	Earnings per Share and Unit

Parent Company Earnings per Share

The following summarizes the calculation of basic and diluted earnings per share:

	Year ended December 31,
(in thousands, except per share data)	2020		2019		2018
Numerator:
Income attributable to common stockholders - basic	$	44,889	$	239,430		249,127
Income attributable to common stockholders - diluted	$	44,889	$	239,430		249,127
Denominator:
Weighted average common shares outstanding for basic EPS		169,231		167,526		169,724
Weighted average common shares outstanding for diluted EPS (1) (2)		169,460		167,771		170,100
Income per common share – basic	$	0.27	$	1.43		1.47
Income per common share – diluted	$	0.26	$	1.43		1.46

	(1)	Includes the dilutive impact of unvested restricted stock.

	(2)	Using the treasury stock method, 2019 weighted average common shares outstanding for basic and diluted earnings per share exclude 1.9 million shares issuable under the forward ATM equity offering as they would be anti-dilutive. These shares are included in 2020 weighted average common shares outstanding as they were settled in March 2020.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and exchangeable Operating Partnership units have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average exchangeable Operating Partnership units outstanding for the years ended December 31, 2020, 2019, and 2018, were 765,046, 464,286, and 349,902, respectively.

Operating Partnership Earnings per Unit

The following summarizes the calculation of basic and diluted earnings per unit:

	Year ended December 31,
(in thousands, except per share data)	2020		2019		2018
Numerator:
Income attributable to common unit holders - basic	$	45,092	$	240,064		249,652
Income attributable to common unit holders - diluted	$	45,092	$	240,064		249,652
Denominator:
Weighted average common units outstanding for basic EPU		169,997		167,990		170,074
Weighted average common units outstanding for diluted EPU (1) (2)		170,225		168,235		170,450
Income per common unit – basic	$	0.27	$	1.43		1.47
Income per common unit – diluted	$	0.26	$	1.43		1.46

	(1)	Includes the dilutive impact of unvested restricted stock.

	(2)	Using the treasury stock method, weighted average common shares outstanding for basic and diluted earnings per share exclude 1.9 million shares issuable under the forward ATM equity offering outstanding during 2019 as they would be anti-dilutive.

16.	Commitments and Contingencies

Litigation

The Company is involved in litigation on a number of matters and is subject to certain claims, which arise in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. However, no assurances can be given as to the outcome of any threatened or pending legal proceedings. Legal fees are expensed as incurred.

Environmental

The Company is subject to numerous environmental laws and regulations pertaining primarily to chemicals historically used by certain current and former dry cleaning tenants, the existence of asbestos in older shopping centers, and older underground petroleum storage tanks. The Company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations. The Company can give no assurance that existing environmental studies with respect to its shopping centers have revealed all potential environmental contaminants; that its estimate of liabilities will not change as more information becomes available; that any previous owner, occupant or tenant did not create any material environmental condition not known to the Company; that the current environmental condition of the shopping centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; and that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to the Company.

Letters of Credit

The Company has the right to issue letters of credit under the Line up to an amount not to exceed $50.0 million, which reduces the credit availability under the Line. These letters of credit are primarily issued as collateral on behalf of its captive insurance program and to facilitate the construction of development projects. As of December 31, 2020 and 2019, the Company had $9.7 million and $12.5 million, respectively, in letters of credit outstanding.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Notes to Consolidated Financial Statements

December 31, 2020

17.	Summary of Quarterly Financial Data (Unaudited)

The following table summarizes selected Quarterly Financial Data for the Company on a historical basis for the years ended December 31, 2020 and 2019:

(in thousands except per share and per unit data)	First Quarter
Year ended December 31, 2020
Operating Data:
Revenue	$	283,658		231,113	242,944	258,460
Net (loss) income attributable to common stockholders	$	(25,332	)	19,046	12,688	38,487
Net (loss) income attributable to exchangeable operating partnership units		(115	)	87	57	174
Net (loss) income attributable to common unit holders	$	(25,447	)	19,133	12,745	38,661
Net (loss) income attributable to common stock and unit holders per share and unit:
Basic	$	(0.15	)	0.11	0.07	0.23
Diluted	$	(0.15	)	0.11	0.07	0.23

Year ended December 31, 2019
Operating Data:
Revenue	$	286,257		275,872	282,276	288,733
Net income attributable to common stockholders	$	90,446		51,728	56,965	40,291
Net income attributable to exchangeable operating partnership units		190		109	157	178
Net income attributable to common unit holders	$	90,636		51,837	57,122	40,469
Net income attributable to common stock and unit holders per share and unit:
Basic	$	0.54		0.31	0.34	0.24
Diluted	$	0.54		0.31	0.34	0.24

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
101 7th Avenue	$	48,340		34,895		(57,260	)		15,378		10,597		25,975		(1,015	)		24,960		—
1175 Third Avenue		40,560		25,617		1			40,560		25,618		66,178		(2,866	)		63,312		—
1225-1239 Second Ave		23,033		17,173		(33	)		23,033		17,140		40,173		(2,044	)		38,129		—
200 Potrero		4,860		2,251		124			4,860		2,375		7,235		(278	)		6,957		—
22 Crescent Road		2,198		272		(318	)		2,152		—		2,152		—			2,152		—
4S Commons Town Center		30,760		35,830		1,518			30,812		37,296		68,108		(27,466	)		40,642		(84,191	)
6401 Roosevelt		2,685		934		2			2,685		936		3,621		(36	)		3,585		—
90 - 30 Metropolitan Avenue		16,614		24,171		133			16,614		24,304		40,918		(2,814	)		38,104		—
91 Danbury Road		732		851		—			732		851		1,583		(141	)		1,442		—
Alafaya Village		3,004		5,852		172			3,004		6,024		9,028		(941	)		8,087		—
Amerige Heights Town Center		10,109		11,288		817			10,109		12,105		22,214		(5,594	)		16,620		—
Anastasia Plaza		9,065		—		761			3,338		6,488		9,826		(3,104	)		6,722		—
Ashford Place		2,584		9,865		1,216			2,584		11,081		13,665		(8,451	)		5,214		—
Atlantic Village		4,282		18,827		1,688			4,766		20,031		24,797		(3,328	)		21,469		—
Aventura Shopping Center		2,751		10,459		11,011			9,486		14,735		24,221		(2,718	)		21,503		—
Aventura Square		88,098		20,771		1,705			89,657		20,917		110,574		(3,026	)		107,548		(4,864	)
Balboa Mesa Shopping Center		23,074		33,838		14,038			27,758		43,192		70,950		(15,913	)		55,037		—
Banco Popular Building		2,160		1,137		(32	)		2,160		1,105		3,265		(1,261	)		2,004		—
Belleview Square		8,132		9,756		3,827			8,323		13,392		21,715		(9,110	)		12,605		—
Belmont Chase		13,881		17,193		(426	)		14,372		16,276		30,648		(5,857	)		24,791		—
Berkshire Commons		2,295		9,551		2,696			2,965		11,577		14,542		(8,618	)		5,924		—
Bird 107 Plaza		10,371		5,136		(25	)		10,371		5,111		15,482		(847	)		14,635		—
Bird Ludlam		42,663		38,481		417			42,663		38,898		81,561		(5,430	)		76,131		—
Black Rock		22,251		20,815		388			22,251		21,203		43,454		(5,432	)		38,022		(19,405	)
Bloomingdale Square		3,940		14,912		20,222			8,634		30,440		39,074		(9,663	)		29,411		—
Boca Village Square		43,888		9,726		14			43,888		9,740		53,628		(1,964	)		51,664		—
Boulevard Center		3,659		10,787		2,761			3,659		13,548		17,207		(8,097	)		9,110		—
Boynton Lakes Plaza		2,628		11,236		5,018			3,606		15,276		18,882		(8,541	)		10,341		—
Boynton Plaza		12,879		20,713		104			12,879		20,817		33,696		(3,083	)		30,613		—
Brentwood Plaza		2,788		3,473		356			2,788		3,829		6,617		(1,675	)		4,942		—
Briarcliff La Vista		694		3,292		565			694		3,857		4,551		(3,155	)		1,396		—
Briarcliff Village		4,597		24,836		2,469			4,597		27,305		31,902		(20,368	)		11,534		—
Brick Walk		25,299		41,995		1,525			25,299		43,520		68,819		(9,406	)		59,413		(32,369	)
BridgeMill Market		7,521		13,306		613			7,522		13,918		21,440		(2,495	)		18,945		(4,012	)
Bridgeton		3,033		8,137		605			3,067		8,708		11,775		(3,206	)		8,569		—
Brighten Park		3,983		18,687		11,477			4,234		29,913		34,147		(19,034	)		15,113		—
Broadway Plaza		40,723		42,170		1,522			40,723		43,692		84,415		(5,789	)		78,626		—
Brooklyn Station on Riverside		7,019		8,688		126			6,998		8,835		15,833		(2,263	)		13,570		—
Brookside Plaza		35,161		17,494		406			35,161		17,900		53,061		(3,688	)		49,373		—
Buckhead Court		1,417		7,432		4,506			1,417		11,938		13,355		(8,458	)		4,897		—
Buckhead Station		70,411		36,518		1,520			70,448		38,001		108,449		(6,683	)		101,766		—

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost																Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
Buckley Square		2,970		5,978		1,366			2,970		7,344		10,314		(4,751	)		5,563		—
Caligo Crossing		2,459		4,897		144			2,546		4,954		7,500		(3,406	)		4,094		—
Cambridge Square		774		4,347		442			774		4,789		5,563		(3,176	)		2,387		—
Carmel Commons		2,466		12,548		4,975			3,422		16,567		19,989		(10,882	)		9,107		—
Carriage Gate		833		4,974		3,300			1,302		7,805		9,107		(6,751	)		2,356		—
Carytown Exchange		4,378		1,328		(54	)		4,378		1,274		5,652		(110	)		5,542		—
Cashmere Corners		3,187		9,397		263			3,187		9,660		12,847		(1,737	)		11,110		—
Centerplace of Greeley III		6,661		11,502		1,440			5,694		13,909		19,603		(6,098	)		13,505		—
Charlotte Square		1,141		6,845		1,012			1,141		7,857		8,998		(1,465	)		7,533		—
Chasewood Plaza		4,612		20,829		5,816			6,886		24,371		31,257		(19,129	)		12,128		—
Chastain Square		30,074		12,644		1,973			30,074		14,617		44,691		(2,918	)		41,773		—
Cherry Grove		3,533		15,862		4,524			3,533		20,386		23,919		(12,064	)		11,855		—
Chimney Rock		23,613		48,173		395			23,613		48,568		72,181		(9,057	)		63,124		—
Circle Center West		22,930		9,028		(22	)		22,930		9,006		31,936		(1,478	)		30,458		(9,143	)
Circle Marina Center		29,303		18,437		(1	)		29,303		18,436		47,739		(889	)		46,850		(24,000	)
CityLine Market		12,208		15,839		170			12,306		15,911		28,217		(3,992	)		24,225		—
CityLine Market Phase II		2,744		3,081		3			2,744		3,084		5,828		(710	)		5,118		—
Clayton Valley Shopping Center		24,189		35,422		3,056			24,538		38,129		62,667		(27,711	)		34,956		—
Clocktower Plaza Shopping Ctr		49,630		19,624		523			49,630		20,147		69,777		(2,757	)		67,020		—
Clybourn Commons		15,056		5,594		289			15,056		5,883		20,939		(1,588	)		19,351		—
Cochran's Crossing		13,154		12,315		1,896			13,154		14,211		27,365		(10,728	)		16,637		—
Compo Acres Shopping Center		28,627		10,395		735			28,627		11,130		39,757		(1,480	)		38,277		—
Concord Shopping Plaza		30,819		36,506		1,460			31,272		37,513		68,785		(4,893	)		63,892		(27,750	)
Copps Hill Plaza		29,515		40,673		383			29,514		41,057		70,571		(5,931	)		64,640		(11,258	)
Coral Reef Shopping Center		14,922		15,200		2,474			15,332		17,264		32,596		(2,518	)		30,078		—
Corkscrew Village		8,407		8,004		662			8,407		8,666		17,073		(3,944	)		13,129		—
Cornerstone Square		1,772		6,944		1,685			1,772		8,629		10,401		(6,262	)		4,139		—
Corvallis Market Center		6,674		12,244		470			6,696		12,692		19,388		(6,800	)		12,588		—
Costa Verde Center		12,740		26,868		1,499			12,798		28,309		41,107		(26,837	)		14,270		—
Country Walk Plaza		18,713		20,373		32			18,713		20,405		39,118		(754	)		38,364		(16,000	)
Countryside Shops		17,982		35,574		13,513			23,175		43,894		67,069		(7,352	)		59,717		—
Courtyard Shopping Center		5,867		4		3			5,867		7		5,874		(2	)		5,872		—
Culver Center		108,841		32,308		695			108,841		33,003		141,844		(5,282	)		136,562		—
Danbury Green		30,303		19,255		432			30,303		19,687		49,990		(2,692	)		47,298		—
Dardenne Crossing		4,194		4,005		704			4,343		4,560		8,903		(2,208	)		6,695		—
Darinor Plaza		693		32,140		830			711		32,952		33,663		(4,708	)		28,955		—
Diablo Plaza		5,300		8,181		2,170			5,300		10,351		15,651		(6,041	)		9,610		—
Dunwoody Village		3,342		15,934		5,092			3,342		21,026		24,368		(15,986	)		8,382		—
East Pointe		1,730		7,189		2,142			1,941		9,120		11,061		(6,348	)		4,713		—
El Camino Shopping Center		7,600		11,538		12,968			10,328		21,778		32,106		(9,753	)		22,353		—
El Cerrito Plaza		11,025		27,371		2,622			11,025		29,993		41,018		(12,499	)		28,519		—

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost																Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
El Norte Pkwy Plaza		2,834		7,370		3,308			3,263		10,249		13,512		(6,158	)		7,354		—
Encina Grande		5,040		11,572		20,063			10,518		26,157		36,675		(13,829	)		22,846		—
Fairfield Center		6,731		29,420		1,177			6,731		30,597		37,328		(6,498	)		30,830		—
Falcon Marketplace		1,340		4,168		554			1,340		4,722		6,062		(2,714	)		3,348		—
Fellsway Plaza		30,712		7,327		9,494			34,923		12,610		47,533		(6,467	)		41,066		(36,592	)
Fenton Marketplace		2,298		8,510		(8,092	)		512		2,204		2,716		(1,114	)		1,602		—
Fleming Island		3,077		11,587		3,066			3,111		14,619		17,730		(8,838	)		8,892		—
Fountain Square		29,650		29,036		(248	)		29,712		28,726		58,438		(9,600	)		48,838		—
French Valley Village Center		11,924		16,856		302			11,822		17,260		29,082		(14,190	)		14,892		—
Friars Mission Center		6,660		28,021		1,985			6,660		30,006		36,666		(16,827	)		19,839		—
Gardens Square		2,136		8,273		739			2,136		9,012		11,148		(5,480	)		5,668		—
Gateway 101		24,971		9,113		1,627			24,971		10,740		35,711		(4,421	)		31,290		—
Gateway Shopping Center		52,665		7,134		11,023			55,346		15,476		70,822		(17,675	)		53,147		—
Gelson's Westlake Market Plaza		3,157		11,153		5,908			4,654		15,564		20,218		(8,309	)		11,909		—
Glen Oak Plaza		4,103		12,951		961			4,103		13,912		18,015		(4,734	)		13,281		—
Glengary Shoppes		9,120		11,541		855			9,120		12,396		21,516		(2,097	)		19,419		—
Glenwood Village		1,194		5,381		326			1,194		5,707		6,901		(4,644	)		2,257		—
Golden Hills Plaza		12,699		18,482		3,619			11,518		23,282		34,800		(10,743	)		24,057		—
Grand Ridge Plaza		24,208		61,033		5,874			24,918		66,197		91,115		(23,405	)		67,710		—
Greenwood Shopping Centre		7,777		24,829		504			7,777		25,333		33,110		(3,912	)		29,198		—
Hammocks Town Center		28,764		25,113		696			28,764		25,809		54,573		(4,150	)		50,423		—
Hancock		8,232		28,260		1,797			8,232		30,057		38,289		(17,255	)		21,034		—
Harpeth Village Fieldstone		2,284		9,443		778			2,284		10,221		12,505		(5,890	)		6,615		—
Heritage Plaza		12,390		26,097		13,787			12,215		40,059		52,274		(19,489	)		32,785		—
Hershey		7		808		10			7		818		825		(498	)		327		—
Hewlett Crossing I & II		11,850		18,205		765			11,850		18,970		30,820		(1,906	)		28,914		(9,235	)
Hibernia Pavilion		4,929		5,065		216			4,929		5,281		10,210		(3,606	)		6,604		—
Hickory Creek Plaza		5,629		4,564		377			5,629		4,941		10,570		(5,023	)		5,547		—
Hillcrest Village		1,600		1,909		51			1,600		1,960		3,560		(1,096	)		2,464		—
Hilltop Village		2,995		4,581		3,714			3,104		8,186		11,290		(3,603	)		7,687		—
Hinsdale		5,734		16,709		11,831			8,343		25,931		34,274		(14,822	)		19,452		—
Holly Park		8,975		23,799		2,416			8,828		26,362		35,190		(6,374	)		28,816		—
Homestead McDonald's		2,229		—		—			2,229		—		2,229		(30	)		2,199		—
Howell Mill Village		5,157		14,279		2,888			5,157		17,167		22,324		(7,456	)		14,868		—
Hyde Park		9,809		39,905		6,945			9,809		46,850		56,659		(27,741	)		28,918		—
Indian Springs Center		24,974		25,903		683			25,034		26,526		51,560		(5,974	)		45,586		—
Indigo Square		8,088		9,712		58			8,088		9,770		17,858		(1,137	)		16,721		—
Inglewood Plaza		1,300		2,159		834			1,300		2,993		4,293		(1,719	)		2,574		—
Keller Town Center		2,294		12,841		901			2,404		13,632		16,036		(7,487	)		8,549		—
Kirkman Shoppes		9,364		26,243		528			9,367		26,768		36,135		(3,737	)		32,398		—
Kirkwood Commons		6,772		16,224		929			6,802		17,123		23,925		(5,611	)		18,314		(7,302	)

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
Klahanie Shopping Center		14,451		20,089		552			14,451		20,641		35,092		(3,462	)		31,630		—
Kroger New Albany Center		3,844		6,599		1,396			3,844		7,995		11,839		(6,020	)		5,819		—
Lake Mary Centre		24,036		57,476		2,034			24,036		59,510		83,546		(9,501	)		74,045		—
Lake Pine Plaza		2,008		7,632		932			2,029		8,543		10,572		(5,120	)		5,452		—
Lantana Outparcels		3,710		1,004		(2,717	)		1,148		849		1,997		(141	)		1,856		—
Lebanon/Legacy Center		3,913		7,874		938			3,913		8,812		12,725		(6,458	)		6,267		—
Littleton Square		2,030		8,859		(3,572	)		2,423		4,894		7,317		(2,682	)		4,635		—
Lloyd King Center		1,779		10,060		1,277			1,779		11,337		13,116		(6,850	)		6,266		—
Lower Nazareth Commons		15,992		12,964		4,060			16,343		16,673		33,016		(10,883	)		22,133		—
Mandarin Landing		7,913		27,230		342			7,913		27,572		35,485		(4,279	)		31,206		—
Market at Colonnade Center		6,455		9,839		73			6,160		10,207		16,367		(4,833	)		11,534		—
Market at Preston Forest		4,400		11,445		1,769			4,400		13,214		17,614		(7,683	)		9,931		—
Market at Round Rock		2,000		9,676		6,614			1,996		16,294		18,290		(10,738	)		7,552		—
Market at Springwoods Village		12,590		12,781		(83	)		12,590		12,698		25,288		(2,690	)		22,598		(6,350	)
Market Common Clarendon		154,932		126,328		(3,854	)		154,932		122,474		277,406		(18,036	)		259,370		—
Marketplace at Briargate		1,706		4,885		199			1,727		5,063		6,790		(3,093	)		3,697		—
Mellody Farm		35,726		66,165		(1	)		35,726		66,164		101,890		(7,180	)		94,710		—
Melrose Market		4,451		10,807		(74	)		4,451		10,733		15,184		(1,264	)		13,920		—
Millhopper Shopping Center		1,073		5,358		5,990			1,901		10,520		12,421		(7,550	)		4,871		—
Mockingbird Commons		3,000		10,728		2,464			3,000		13,192		16,192		(7,455	)		8,737		—
Monument Jackson Creek		2,999		6,765		919			2,999		7,684		10,683		(5,965	)		4,718		—
Morningside Plaza		4,300		13,951		969			4,300		14,920		19,220		(8,615	)		10,605		—
Murrayhill Marketplace		2,670		18,401		14,460			2,903		32,628		35,531		(15,919	)		19,612		—
Naples Walk		18,173		13,554		1,821			18,173		15,375		33,548		(7,150	)		26,398		—
Newberry Square		2,412		10,150		1,270			2,412		11,420		13,832		(9,034	)		4,798		—
Newland Center		12,500		10,697		8,648			16,276		15,569		31,845		(9,589	)		22,256		—
Nocatee Town Center		10,124		8,691		8,596			11,035		16,376		27,411		(7,575	)		19,836		—
North Hills		4,900		19,774		1,517			4,900		21,291		26,191		(13,277	)		12,914		—
Northgate Marketplace		5,668		13,727		(48	)		4,995		14,352		19,347		(6,297	)		13,050		—
Northgate Marketplace Ph II		12,189		30,171		133			12,189		30,304		42,493		(6,115	)		36,378		—
Northgate Plaza (Maxtown Road)		1,769		6,652		4,961			2,840		10,542		13,382		(5,756	)		7,626		—
Northgate Square		5,011		8,692		1,053			5,011		9,745		14,756		(4,720	)		10,036		—
Northlake Village		2,662		11,284		(174	)		2,662		11,110		13,772		(6,295	)		7,477		—
Oak Shade Town Center		6,591		28,966		673			6,591		29,639		36,230		(10,268	)		25,962		(6,301	)
Oakbrook Plaza		4,000		6,668		5,756			4,766		11,658		16,424		(5,262	)		11,162		—
Oakleaf Commons		3,503		11,671		839			3,190		12,823		16,013		(7,041	)		8,972		—
Ocala Corners		1,816		10,515		528			1,816		11,043		12,859		(4,773	)		8,086		—
Old St Augustine Plaza		2,368		11,405		13,437			3,454		23,756		27,210		(9,218	)		17,992		—
Pablo Plaza		11,894		21,407		9,314			13,320		29,295		42,615		(3,973	)		38,642		—
Paces Ferry Plaza		2,812		12,639		15,553			8,378		22,626		31,004		(11,089	)		19,915		—
Panther Creek		14,414		14,748		5,837			15,212		19,787		34,999		(14,247	)		20,752		—

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
Pavillion		15,626		22,124		679			15,626		22,803		38,429		(3,869	)		34,560		—
Peartree Village		5,197		19,746		878			5,197		20,624		25,821		(13,475	)		12,346		—
Persimmon Place		25,975		38,114		(115	)		26,692		37,282		63,974		(11,634	)		52,340		—
Piedmont Peachtree Crossing		45,502		16,642		133			45,502		16,775		62,277		(2,765	)		59,512		—
Pike Creek		5,153		20,652		2,601			5,251		23,155		28,406		(13,839	)		14,567		—
Pine Island		21,086		28,123		3,113			21,086		31,236		52,322		(5,845	)		46,477		—
Pine Lake Village		6,300		10,991		1,556			6,300		12,547		18,847		(7,181	)		11,666		—
Pine Ridge Square		13,951		23,147		463			13,951		23,610		37,561		(3,656	)		33,905		—
Pine Tree Plaza		668		6,220		769			668		6,989		7,657		(4,020	)		3,637		—
Pinecrest Place		3,839		13,437		(201	)		3,638		13,437		17,075		(1,646	)		15,429		—
Plaza Escuela		24,829		104,395		1,218			24,829		105,613		130,442		(11,126	)		119,316		—
Plaza Hermosa		4,200		10,109		3,608			4,202		13,715		17,917		(7,587	)		10,330		—
Point 50		15,239		11,367		(1,040	)		15,738		9,828		25,566		(51	)		25,515		—
Point Royale Shopping Center		18,201		14,889		6,572			19,386		20,276		39,662		(4,176	)		35,486		—
Post Road Plaza		15,240		5,196		153			15,240		5,349		20,589		(786	)		19,803		—
Potrero Center		133,422		116,758		1,279			133,422		118,037		251,459		(12,894	)		238,565		—
Powell Street Plaza		8,248		30,716		3,039			8,248		33,755		42,003		(16,814	)		25,189		—
Powers Ferry Square		3,687		17,965		9,567			5,758		25,461		31,219		(18,419	)		12,800		—
Powers Ferry Village		1,191		4,672		764			1,191		5,436		6,627		(4,182	)		2,445		—
Prairie City Crossing (fka Folsom Prairie City Crossing)		4,164		13,032		729			4,164		13,761		17,925		(7,007	)		10,918		—
Preston Oaks		763		30,438		(19,425	)		569		11,207		11,776		(2,741	)		9,035		—
Prestonbrook		7,069		8,622		1,180			7,069		9,802		16,871		(7,304	)		9,567		—
Prosperity Centre		11,682		26,215		188			11,681		26,404		38,085		(3,809	)		34,276		—
Ralphs Circle Center		20,939		6,317		98			20,939		6,415		27,354		(1,167	)		26,187		—
Red Bank Village		10,336		9,500		1,938			10,514		11,260		21,774		(3,734	)		18,040		—
Regency Commons		3,917		3,616		300			3,917		3,916		7,833		(2,726	)		5,107		—
Regency Square		4,770		25,191		6,488			5,060		31,389		36,449		(24,600	)		11,849		—
Rivertowns Square		15,505		52,505		2,486			16,779		53,717		70,496		(4,513	)		65,983		—
Rona Plaza		1,500		4,917		288			1,500		5,205		6,705		(3,248	)		3,457		—
Roosevelt Square		40,371		32,108		3,731			40,382		35,828		76,210		(3,138	)		73,072		—
Russell Ridge		2,234		6,903		1,501			2,234		8,404		10,638		(5,659	)		4,979		—
Ryanwood Square		10,581		10,044		167			10,573		10,219		20,792		(2,027	)		18,765		—
Salerno Village		1,355		—		—			1,355		—		1,355		(19	)		1,336		—
Sammamish-Highlands		9,300		8,075		8,746			9,592		16,529		26,121		(10,207	)		15,914		—
San Carlos Marketplace		36,006		57,886		320			36,006		58,206		94,212		(6,559	)		87,653		—
San Leandro Plaza		1,300		8,226		713			1,300		8,939		10,239		(5,122	)		5,117		—
Sandy Springs		6,889		28,056		3,457			6,889		31,513		38,402		(8,851	)		29,551		—
Sawgrass Promenade		10,846		12,525		368			10,846		12,893		23,739		(2,216	)		21,523		—
Scripps Ranch Marketplace		59,949		26,334		688			59,949		27,022		86,971		(3,043	)		83,928		—
Sequoia Station		9,100		18,356		2,339			9,100		20,695		29,795		(11,754	)		18,041		—

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
Serramonte Center		390,106		172,652		53,680			409,840		206,598		616,438		(44,005	)		572,433		—
Shaw's at Plymouth		3,968		8,367		—			3,968		8,367		12,335		(1,392	)		10,943		—
Sheridan Plaza		82,260		97,273		6,821			82,775		103,579		186,354		(13,520	)		172,834		—
Sherwood Crossroads		2,731		6,360		1,189			2,731		7,549		10,280		(3,743	)		6,537		—
Shoppes @ 104		11,193		—		2,371			7,078		6,486		13,564		(3,098	)		10,466		—
Shoppes at Homestead		5,420		9,450		2,170			5,420		11,620		17,040		(6,650	)		10,390		—
Shoppes at Lago Mar		8,323		11,347		(82	)		8,323		11,265		19,588		(1,981	)		17,607		—
Shoppes at Sunlake Centre		16,643		15,091		318			16,643		15,409		32,052		(3,099	)		28,953		—
Shoppes of Grande Oak		5,091		5,985		581			5,091		6,566		11,657		(5,473	)		6,184		—
Shoppes of Jonathan's Landing		4,474		5,628		432			4,474		6,060		10,534		(956	)		9,578		—
Shoppes of Oakbrook		20,538		42,992		(456	)		20,538		42,536		63,074		(5,672	)		57,402		(2,654	)
Shoppes of Silver Lakes		17,529		21,829		80			17,529		21,909		39,438		(3,726	)		35,712		—
Shoppes of Sunset		2,860		1,316		53			2,860		1,369		4,229		(279	)		3,950		—
Shoppes of Sunset II		2,834		715		(39	)		2,834		676		3,510		(183	)		3,327		—
Shops at County Center		9,957		11,296		700			9,973		11,980		21,953		(10,301	)		11,652		—
Shops at Erwin Mill		9,082		6,124		256			9,087		6,375		15,462		(3,103	)		12,359		(10,000	)
Shops at John's Creek		1,863		2,014		(250	)		1,501		2,126		3,627		(1,497	)		2,130		—
Shops at Mira Vista		11,691		9,026		207			11,691		9,233		20,924		(2,491	)		18,433		(204	)
Shops at Quail Creek		1,487		7,717		704			1,448		8,460		9,908		(4,098	)		5,810		—
Shops at Saugus		19,201		17,984		(3	)		18,811		18,371		37,182		(11,141	)		26,041		—
Shops at Skylake		84,586		39,342		1,737			85,117		40,548		125,665		(7,225	)		118,440		—
Shops on Main		17,020		27,055		15,754			18,534		41,295		59,829		(12,297	)		47,532		—
Sope Creek Crossing		2,985		12,001		3,267			3,332		14,921		18,253		(9,175	)		9,078		—
South Beach Regional		28,188		53,405		783			28,188		54,188		82,376		(8,247	)		74,129		—
South Point		6,563		7,939		94			6,563		8,033		14,596		(1,399	)		13,197		—
Southbury Green		26,661		34,325		5,465			29,670		36,781		66,451		(5,018	)		61,433		—
Southcenter		1,300		12,750		2,006			1,300		14,756		16,056		(8,503	)		7,553		—
Southpark at Cinco Ranch		18,395		11,306		7,401			21,438		15,664		37,102		(7,368	)		29,734		—
SouthPoint Crossing		4,412		12,235		1,190			4,382		13,455		17,837		(7,614	)		10,223		—
Starke		71		1,683		10			71		1,693		1,764		(857	)		907		—
Star's at Cambridge		31,082		13,520		(1	)		31,082		13,519		44,601		(1,922	)		42,679		—
Star's at Quincy		27,003		9,425		1			27,003		9,426		36,429		(2,114	)		34,315		—
Star's at West Roxbury		21,973		13,386		(8	)		21,973		13,378		35,351		(1,940	)		33,411		—
Sterling Ridge		12,846		12,162		795			12,846		12,957		25,803		(10,271	)		15,532		—
Stroh Ranch		4,280		8,189		710			4,280		8,899		13,179		(6,781	)		6,398		—
Suncoast Crossing		9,030		10,764		4,553			13,374		10,973		24,347		(7,733	)		16,614		—
Talega Village Center		22,415		12,054		58			22,415		12,112		34,527		(1,734	)		32,793		—
Tamarac Town Square		12,584		9,221		838			12,584		10,059		22,643		(1,830	)		20,813		—
Tanasbourne Market		3,269		10,861		(336	)		3,149		10,645		13,794		(5,864	)		7,930		—
Tassajara Crossing		8,560		15,464		1,960			8,560		17,424		25,984		(9,571	)		16,413		—
Tech Ridge Center		12,945		37,169		3,761			13,625		40,250		53,875		(14,071	)		39,804		(3,346	)

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
The Abbot		72,910		6,086		(5,444	)		72,910		642		73,552		(85	)		73,467		—
The Field at Commonwealth		30,771		18,010		1			30,772		18,010		48,782		(3,913	)		44,869		—
The Gallery at Westbury Plaza		108,653		216,771		3,014			108,653		219,785		328,438		(27,088	)		301,350		—
The Hub Hillcrest Market		18,773		61,906		5,600			19,611		66,668		86,279		(16,702	)		69,577		—
The Marketplace		10,927		36,052		412			10,927		36,464		47,391		(4,801	)		42,590		—
The Plaza at St. Lucie West		1,718		6,204		(15	)		1,718		6,189		7,907		(873	)		7,034		—
The Point at Garden City Park		741		9,764		5,795			2,559		13,741		16,300		(2,922	)		13,378		—
The Pruneyard		112,136		86,918		900			112,136		87,818		199,954		(4,811	)		195,143		(2,200	)
The Shops at Hampton Oaks		843		372		(344	)		737		134		871		(61	)		810		—
The Village at Hunter's Lake		7,544		12,344		6			7,544		12,350		19,894		(546	)		19,348		—
The Village at Riverstone		17,164		13,142		(85	)		17,164		13,057		30,221		(1,587	)		28,634		—
Town and Country		4,664		5,207		15			4,664		5,222		9,886		(1,268	)		8,618		—
Town Square		883		8,132		209			883		8,341		9,224		(5,253	)		3,971		—
Treasure Coast Plaza		7,553		21,554		1,009			7,553		22,563		30,116		(3,445	)		26,671		(2,007	)
Tustin Legacy		13,829		23,922		(37	)		13,828		23,886		37,714		(3,793	)		33,921		—
Twin City Plaza		17,245		44,225		2,478			17,263		46,685		63,948		(18,796	)		45,152		—
Twin Peaks		5,200		25,827		1,908			5,200		27,735		32,935		(15,771	)		17,164		—
Unigold Shopping Center		5,490		5,144		6,640			5,561		11,713		17,274		(2,846	)		14,428		—
University Commons		4,070		30,785		493			4,070		31,278		35,348		(6,768	)		28,580		—
Valencia Crossroads		17,921		17,659		1,333			17,921		18,992		36,913		(16,670	)		20,243		—
Village at La Floresta		13,140		20,559		(291	)		13,156		20,252		33,408		(5,596	)		27,812		—
Village at Lee Airpark		11,099		12,973		3,341			11,803		15,610		27,413		(11,289	)		16,124		—
Village Center		3,885		14,131		9,543			5,480		22,079		27,559		(11,152	)		16,407		—
Von's Circle Center		49,037		22,618		735			49,037		23,353		72,390		(3,522	)		68,868		(6,434	)
Walker Center		3,840		7,232		4,238			3,878		11,432		15,310		(7,784	)		7,526		—
Walmart Norwalk		20,394		21,261		9			20,394		21,270		41,664		(3,576	)		38,088		—
Waterstone Plaza		5,498		13,500		57			5,498		13,557		19,055		(2,021	)		17,034		—
Welleby Plaza		1,496		7,787		1,704			1,496		9,491		10,987		(8,155	)		2,832		—
Wellington Town Square		2,041		12,131		(798	)		2,041		11,333		13,374		(6,766	)		6,608		—
West Bird Plaza		12,934		18,594		(10,423	)		11,748		9,357		21,105		(1,250	)		19,855		—
West Chester Plaza		1,857		7,572		668			1,857		8,240		10,097		(6,141	)		3,956		—
West Lake Shopping Center		10,561		9,792		157			10,561		9,949		20,510		(2,043	)		18,467		—
West Park Plaza		5,840		5,759		1,737			5,840		7,496		13,336		(4,571	)		8,765		—
Westbury Plaza		116,129		51,460		3,462			116,129		54,922		171,051		(8,659	)		162,392		(88,000	)
Westchase		5,302		8,273		1,137			5,302		9,410		14,712		(4,148	)		10,564		—
Westchester Commons		3,366		11,751		10,818			4,894		21,041		25,935		(8,980	)		16,955		—
Westlake Village Plaza and Center (fka Westlake Village Plaza)		7,043		27,195		30,063			17,620		46,681		64,301		(28,323	)		35,978		—
Westport Plaza		9,035		7,455		23			9,035		7,478		16,513		(1,361	)		15,152		(2,096	)
Westport Row (fka The Village Center)		43,597		16,428		5,329			45,260		20,094		65,354		(3,049	)		62,305		—

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

	Initial Cost							Total Cost									Net Cost
Shopping Centers (1)	Land & Land Improvements		Building & Improvements		Cost Capitalized Subsequent to Acquisition (2)			Land & Land Improvements		Building & Improvements		Total		Accumulated Depreciation			Net of Accumulated Depreciation		Mortgages
Westbard Square		127,859		21,514		(245	)		127,859		21,269		149,128		(19,686	)		129,442		—
Westwood Village		19,933		25,301		(1,759	)		18,979		24,496		43,475		(15,329	)		28,146		—
Williamsburg at Dunwoody		7,435		3,721		906			7,444		4,618		12,062		(971	)		11,091		—
Willow Festival		1,954		56,501		3,235			1,976		59,714		61,690		(18,314	)		43,376		—
Willow Oaks		6,664		7,908		(371	)		6,294		7,907		14,201		(2,556	)		11,645		—
Willows Shopping Center		51,964		78,029		974			51,992		78,975		130,967		(9,919	)		121,048		—
Woodcroft Shopping Center		1,419		6,284		1,191			1,421		7,473		8,894		(5,037	)		3,857		—
Woodman Van Nuys		5,500		7,195		418			5,500		7,613		13,113		(4,333	)		8,780		—
Woodmen Plaza		7,621		11,018		948			7,621		11,966		19,587		(11,297	)		8,290		—
Woodside Central		3,500		9,288		612			3,489		9,911		13,400		(5,697	)		7,703		—
Corporate Assets		—		—		1,325			—		1,325		1,325		(1,323	)		2		—
Land held for future development		19,426		—		(4,055	)		15,308		63		15,371		(10	)		15,361		—
Construction in progress		—		—		159,241			—		159,241		159,241		—			159,241		—
	$	4,791,532		5,546,443		763,883			4,861,253		6,240,605		11,101,858		(1,994,108	)		9,107,750		(415,713	)

(1)	See Item 2, Properties, for geographic location and year each operating property was acquired.

(2)	The negative balance for costs capitalized subsequent to acquisition could include out-parcels sold, provision for loss recorded, and demolition of part of the property for redevelopment.

See accompanying report of independent registered public accounting firm.

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.

Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2020

(in thousands)

Depreciation and amortization of the Company's investment in buildings and improvements reflected in the statements of operations is calculated over the estimated useful lives of the assets, which are up to 40 years. The aggregate cost for federal income tax purposes was approximately $8.9 billion at December 31, 2020.

The changes in total real estate assets for the years ended December 31, 2020, 2019, and 2018 are as follows:

(in thousands)	2020
Beginning balance	$	11,095,294		10,863,162		10,892,821
Acquired properties and land		39,087		268,366		113,911
Developments and improvements		154,657		193,973		213,389
Disposal of building and tenant improvements		(35,034	)	(34,824	)	(15,384	)
Sale of properties		(95,780	)	(60,195	)	(277,270	)
Properties held for sale		(38,122	)	(58,527	)	(59,438	)
Provision for impairment		(18,244	)	(76,661	)	(4,867	)
Ending balance	$	11,101,858		11,095,294		10,863,162

The changes in accumulated depreciation for the years ended December 31, 2020, 2019, and 2018 are as follows:

(in thousands)	2020
Beginning balance	$	1,766,162		1,535,444		1,339,771
Depreciation expense		278,861		295,638		264,873
Disposal of building and tenant improvements		(35,034	)	(34,824	)	(15,384	)
Sale of properties		(10,812	)	(4,643	)	(45,901	)
Accumulated depreciation related to properties held for sale		(4,357	)	(19,031	)	(7,729	)
Provision for impairment		(712	)	(6,422	)	(186	)
Ending balance	$	1,994,108		1,766,162		1,535,444

See accompanying report of independent registered public accounting firm.

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