Intrinsic value of Regency Centers - REG

Previous Close

$68.76

  Intrinsic Value

$3.81

stock screener

  Rating & Target

str. sell

-94%

Previous close

$68.76

 
Intrinsic value

$3.81

 
Up/down potential

-94%

 
Rating

str. sell

Our model is not good at valuating stocks of financial companies, such as REG.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of REG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.72
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  614
  982
  1,518
  2,270
  3,293
  4,647
  6,388
  8,575
  11,259
  14,488
  18,299
  22,723
  27,781
  33,486
  39,842
  46,847
  54,494
  62,772
  71,669
  81,169
  91,258
  101,923
  113,153
  124,939
  137,276
  150,162
  163,600
  177,593
  192,153
  207,291
  223,026
Variable operating expenses, $m
 
  643
  994
  1,487
  2,157
  3,044
  4,184
  5,616
  7,375
  9,489
  11,986
  14,884
  18,197
  21,933
  26,096
  30,685
  35,694
  41,116
  46,943
  53,165
  59,774
  66,759
  74,115
  81,835
  89,916
  98,356
  107,158
  116,324
  125,860
  135,776
  146,082
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  422
  643
  994
  1,487
  2,157
  3,044
  4,184
  5,616
  7,375
  9,489
  11,986
  14,884
  18,197
  21,933
  26,096
  30,685
  35,694
  41,116
  46,943
  53,165
  59,774
  66,759
  74,115
  81,835
  89,916
  98,356
  107,158
  116,324
  125,860
  135,776
  146,082
Operating income, $m
  193
  339
  524
  783
  1,136
  1,603
  2,204
  2,958
  3,884
  4,998
  6,313
  7,840
  9,585
  11,553
  13,745
  16,162
  18,800
  21,656
  24,726
  28,003
  31,484
  35,163
  39,038
  43,104
  47,360
  51,806
  56,442
  61,270
  66,293
  71,515
  76,944
EBITDA, $m
  355
  598
  923
  1,381
  2,004
  2,827
  3,886
  5,217
  6,850
  8,814
  11,133
  13,825
  16,902
  20,373
  24,239
  28,501
  33,154
  38,190
  43,603
  49,382
  55,520
  62,009
  68,841
  76,012
  83,517
  91,357
  99,532
  108,046
  116,904
  126,114
  135,687
Interest expense (income), $m
  83
  77
  131
  209
  318
  467
  664
  917
  1,235
  1,626
  2,095
  2,650
  3,293
  4,029
  4,859
  5,783
  6,802
  7,915
  9,119
  10,413
  11,795
  13,262
  14,814
  16,447
  18,162
  19,956
  21,831
  23,785
  25,821
  27,938
  30,141
Earnings before tax, $m
  120
  262
  393
  574
  818
  1,136
  1,540
  2,041
  2,649
  3,373
  4,218
  5,190
  6,291
  7,524
  8,887
  10,379
  11,998
  13,742
  15,607
  17,590
  19,689
  21,901
  24,224
  26,657
  29,199
  31,850
  34,611
  37,485
  40,472
  43,577
  46,803
Tax expense, $m
  0
  71
  106
  155
  221
  307
  416
  551
  715
  911
  1,139
  1,401
  1,699
  2,031
  2,399
  2,802
  3,239
  3,710
  4,214
  4,749
  5,316
  5,913
  6,540
  7,197
  7,884
  8,599
  9,345
  10,121
  10,927
  11,766
  12,637
Net income, $m
  118
  191
  287
  419
  597
  829
  1,124
  1,490
  1,934
  2,462
  3,079
  3,789
  4,593
  5,492
  6,487
  7,577
  8,759
  10,032
  11,393
  12,841
  14,373
  15,988
  17,684
  19,459
  21,315
  23,250
  25,266
  27,364
  29,545
  31,811
  34,166

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  13
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,489
  7,171
  11,079
  16,568
  24,040
  33,917
  46,628
  62,589
  82,183
  105,749
  133,570
  165,863
  202,784
  244,423
  290,815
  341,946
  397,766
  458,193
  523,130
  592,472
  666,114
  743,961
  825,931
  911,962
  1,002,015
  1,096,076
  1,194,157
  1,296,301
  1,402,575
  1,513,075
  1,627,926
Adjusted assets (=assets-cash), $m
  4,476
  7,171
  11,079
  16,568
  24,040
  33,917
  46,628
  62,589
  82,183
  105,749
  133,570
  165,863
  202,784
  244,423
  290,815
  341,946
  397,766
  458,193
  523,130
  592,472
  666,114
  743,961
  825,931
  911,962
  1,002,015
  1,096,076
  1,194,157
  1,296,301
  1,402,575
  1,513,075
  1,627,926
Revenue / Adjusted assets
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
Average production assets, $m
  3,768
  6,029
  9,315
  13,930
  20,212
  28,516
  39,203
  52,622
  69,097
  88,911
  112,301
  139,453
  170,494
  205,503
  244,508
  287,498
  334,429
  385,234
  439,831
  498,132
  560,048
  625,500
  694,417
  766,750
  842,463
  921,546
  1,004,010
  1,089,889
  1,179,241
  1,272,147
  1,368,710
Working capital, $m
  0
  -21
  -32
  -48
  -69
  -98
  -134
  -180
  -236
  -304
  -384
  -477
  -583
  -703
  -837
  -984
  -1,144
  -1,318
  -1,505
  -1,705
  -1,916
  -2,140
  -2,376
  -2,624
  -2,883
  -3,153
  -3,436
  -3,729
  -4,035
  -4,353
  -4,684
Total debt, $m
  1,642
  2,784
  4,441
  6,769
  9,937
  14,125
  19,514
  26,282
  34,589
  44,582
  56,378
  70,070
  85,724
  103,379
  123,049
  144,729
  168,397
  194,018
  221,551
  250,952
  282,176
  315,184
  349,939
  386,416
  424,598
  464,480
  506,067
  549,376
  594,436
  641,288
  689,985
Total liabilities, $m
  1,898
  3,040
  4,697
  7,025
  10,193
  14,381
  19,770
  26,538
  34,845
  44,838
  56,634
  70,326
  85,980
  103,635
  123,305
  144,985
  168,653
  194,274
  221,807
  251,208
  282,432
  315,440
  350,195
  386,672
  424,854
  464,736
  506,323
  549,632
  594,692
  641,544
  690,241
Total equity, $m
  2,591
  4,130
  6,381
  9,543
  13,847
  19,536
  26,858
  36,051
  47,337
  60,911
  76,936
  95,537
  116,803
  140,787
  167,509
  196,961
  229,113
  263,919
  301,323
  341,264
  383,682
  428,522
  475,736
  525,290
  577,161
  631,340
  687,835
  746,669
  807,883
  871,531
  937,685
Total liabilities and equity, $m
  4,489
  7,170
  11,078
  16,568
  24,040
  33,917
  46,628
  62,589
  82,182
  105,749
  133,570
  165,863
  202,783
  244,422
  290,814
  341,946
  397,766
  458,193
  523,130
  592,472
  666,114
  743,962
  825,931
  911,962
  1,002,015
  1,096,076
  1,194,158
  1,296,301
  1,402,575
  1,513,075
  1,627,926
Debt-to-equity ratio
  0.634
  0.670
  0.700
  0.710
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
Adjusted equity ratio
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  118
  191
  287
  419
  597
  829
  1,124
  1,490
  1,934
  2,462
  3,079
  3,789
  4,593
  5,492
  6,487
  7,577
  8,759
  10,032
  11,393
  12,841
  14,373
  15,988
  17,684
  19,459
  21,315
  23,250
  25,266
  27,364
  29,545
  31,811
  34,166
Depreciation, amort., depletion, $m
  162
  259
  400
  598
  867
  1,224
  1,683
  2,258
  2,966
  3,816
  4,820
  5,985
  7,317
  8,820
  10,494
  12,339
  14,353
  16,534
  18,877
  21,379
  24,036
  26,845
  29,803
  32,908
  36,157
  39,551
  43,091
  46,776
  50,611
  54,599
  58,743
Funds from operations, $m
  318
  450
  687
  1,017
  1,465
  2,053
  2,807
  3,748
  4,899
  6,278
  7,899
  9,774
  11,910
  14,312
  16,981
  19,915
  23,112
  26,565
  30,270
  34,220
  38,409
  42,833
  47,487
  52,367
  57,472
  62,802
  68,357
  74,140
  80,156
  86,410
  92,909
Change in working capital, $m
  29
  -8
  -11
  -16
  -21
  -28
  -37
  -46
  -56
  -68
  -80
  -93
  -106
  -120
  -133
  -147
  -161
  -174
  -187
  -199
  -212
  -224
  -236
  -248
  -259
  -271
  -282
  -294
  -306
  -318
  -330
Cash from operations, $m
  289
  458
  698
  1,033
  1,486
  2,082
  2,843
  3,794
  4,956
  6,346
  7,979
  9,867
  12,016
  14,432
  17,115
  20,063
  23,272
  26,739
  30,457
  34,419
  38,621
  43,057
  47,723
  52,615
  57,731
  63,072
  68,639
  74,434
  80,462
  86,728
  93,240
Maintenance CAPEX, $m
  0
  -162
  -259
  -400
  -598
  -867
  -1,224
  -1,683
  -2,258
  -2,966
  -3,816
  -4,820
  -5,985
  -7,317
  -8,820
  -10,494
  -12,339
  -14,353
  -16,534
  -18,877
  -21,379
  -24,036
  -26,845
  -29,803
  -32,908
  -36,157
  -39,551
  -43,091
  -46,776
  -50,611
  -54,599
New CAPEX, $m
  -334
  -2,261
  -3,286
  -4,615
  -6,282
  -8,304
  -10,687
  -13,419
  -16,474
  -19,814
  -23,391
  -27,151
  -31,042
  -35,009
  -39,005
  -42,990
  -46,931
  -50,805
  -54,597
  -58,301
  -61,916
  -65,451
  -68,918
  -72,332
  -75,714
  -79,083
  -82,464
  -85,879
  -89,352
  -92,905
  -96,563
Cash from investing activities, $m
  -410
  -2,423
  -3,545
  -5,015
  -6,880
  -9,171
  -11,911
  -15,102
  -18,732
  -22,780
  -27,207
  -31,971
  -37,027
  -42,326
  -47,825
  -53,484
  -59,270
  -65,158
  -71,131
  -77,178
  -83,295
  -89,487
  -95,763
  -102,135
  -108,622
  -115,240
  -122,015
  -128,970
  -136,128
  -143,516
  -151,162
Free cash flow, $m
  -121
  -1,965
  -2,847
  -3,982
  -5,394
  -7,090
  -9,068
  -11,307
  -13,777
  -16,434
  -19,228
  -22,105
  -25,010
  -27,894
  -30,710
  -33,421
  -35,998
  -38,419
  -40,674
  -42,758
  -44,674
  -46,430
  -48,041
  -49,521
  -50,890
  -52,168
  -53,376
  -54,536
  -55,667
  -56,789
  -57,922
Issuance/(repayment) of debt, $m
  -210
  1,142
  1,657
  2,328
  3,168
  4,188
  5,389
  6,767
  8,308
  9,992
  11,796
  13,692
  15,654
  17,655
  19,670
  21,680
  23,667
  25,621
  27,533
  29,401
  31,224
  33,007
  34,755
  36,477
  38,182
  39,882
  41,587
  43,309
  45,060
  46,852
  48,697
Issuance/(repurchase) of shares, $m
  550
  1,361
  1,964
  2,743
  3,706
  4,860
  6,197
  7,703
  9,352
  11,112
  12,946
  14,813
  16,674
  18,492
  20,235
  21,875
  23,393
  24,774
  26,011
  27,100
  28,045
  28,852
  29,531
  30,094
  30,555
  30,929
  31,229
  31,471
  31,669
  31,837
  31,988
Cash from financing (excl. dividends), $m  
  319
  2,503
  3,621
  5,071
  6,874
  9,048
  11,586
  14,470
  17,660
  21,104
  24,742
  28,505
  32,328
  36,147
  39,905
  43,555
  47,060
  50,395
  53,544
  56,501
  59,269
  61,859
  64,286
  66,571
  68,737
  70,811
  72,816
  74,780
  76,729
  78,689
  80,685
Total cash flow (excl. dividends), $m
  198
  539
  775
  1,088
  1,481
  1,958
  2,519
  3,163
  3,883
  4,671
  5,514
  6,400
  7,317
  8,253
  9,195
  10,134
  11,063
  11,976
  12,870
  13,743
  14,595
  15,429
  16,246
  17,051
  17,848
  18,642
  19,439
  20,244
  21,063
  21,900
  22,763
Retained Cash Flow (-), $m
  -537
  -1,552
  -2,251
  -3,162
  -4,304
  -5,689
  -7,322
  -9,193
  -11,286
  -13,574
  -16,025
  -18,601
  -21,266
  -23,984
  -26,722
  -29,452
  -32,152
  -34,806
  -37,404
  -39,941
  -42,418
  -44,840
  -47,215
  -49,554
  -51,870
  -54,179
  -56,495
  -58,835
  -61,214
  -63,648
  -66,154
Prev. year cash balance distribution, $m
 
  13
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,001
  -1,477
  -2,074
  -2,823
  -3,732
  -4,802
  -6,030
  -7,403
  -8,904
  -10,511
  -12,201
  -13,949
  -15,731
  -17,527
  -19,318
  -21,089
  -22,830
  -24,534
  -26,198
  -27,823
  -29,411
  -30,969
  -32,503
  -34,023
  -35,537
  -37,056
  -38,591
  -40,151
  -41,748
  -43,392
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  -932
  -1,271
  -1,639
  -2,032
  -2,426
  -2,794
  -3,111
  -3,352
  -3,500
  -3,545
  -3,489
  -3,338
  -3,107
  -2,815
  -2,485
  -2,137
  -1,790
  -1,462
  -1,164
  -902
  -682
  -501
  -359
  -249
  -169
  -111
  -70
  -43
  -26
  -15
Current shareholders' claim on cash, %
  100
  89.5
  81.0
  74.0
  68.1
  63.2
  59.0
  55.5
  52.5
  49.9
  47.7
  45.7
  44.0
  42.5
  41.2
  40.1
  39.0
  38.1
  37.3
  36.6
  35.9
  35.3
  34.8
  34.3
  33.9
  33.5
  33.1
  32.8
  32.5
  32.2
  31.9

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company's properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

FINANCIAL RATIOS  of  Regency Centers (REG)

Valuation Ratios
P/E Ratio 60.7
Price to Sales 11.7
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 24.8
Price to Free Cash Flow -159.1
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 642.2%
Cap. Spend. - 3 Yr. Gr. Rate 25.3%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 63.4%
Total Debt to Equity 63.4%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.6%
Ret/ On Assets - 3 Yr. Avg. 5.3%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3.1%
Return On Equity 5.1%
Return On Equity - 3 Yr. Avg. 6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 73.8%
Gross Margin - 3 Yr. Avg. 74.3%
EBITDA Margin 59.4%
EBITDA Margin - 3 Yr. Avg. 65.4%
Operating Margin 31.3%
Oper. Margin - 3 Yr. Avg. 33.3%
Pre-Tax Margin 19.5%
Pre-Tax Margin - 3 Yr. Avg. 21.6%
Net Profit Margin 19.2%
Net Profit Margin - 3 Yr. Avg. 21.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. -0.3%
Payout Ratio 188.1%

REG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the REG stock intrinsic value calculation we used $614 million for the last fiscal year's total revenue generated by Regency Centers. The default revenue input number comes from 2016 income statement of Regency Centers. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our REG stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for REG is calculated based on our internal credit rating of Regency Centers, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Regency Centers.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of REG stock the variable cost ratio is equal to 65.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for REG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.7% for Regency Centers.

Corporate tax rate of 27% is the nominal tax rate for Regency Centers. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the REG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for REG are equal to 613.7%.

Life of production assets of 23.3 years is the average useful life of capital assets used in Regency Centers operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for REG is equal to -2.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2591 million for Regency Centers - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 170.149 million for Regency Centers is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Regency Centers at the current share price and the inputted number of shares is $11.7 billion.

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COMPANY NEWS

▶ Curious George Store to stay in Harvard Square thanks to deal with landlord   [Nov-20-17 02:49PM  American City Business Journals]
▶ Regency Centers sells Broward shopping center for $21M   [Nov-07-17 08:58AM  American City Business Journals]
▶ Wegmans is not alone in Chantilly. Here are the restaurants joining it.   [Nov-03-17 03:03PM  American City Business Journals]
▶ Regency Centers reports 3Q results   [Nov-01-17 04:55PM  Associated Press]
▶ [$$] Regency: A REIT Safe to Hide In   [Oct-04-17 02:47PM  Barrons.com]
▶ A Look at Regency Centers Dividend Yield   [Sep-18-17 11:15AM  Market Realist]
▶ [$$] Brixmor May Have Regency Centers Beat   [Sep-13-17 11:25AM  Barrons.com]
▶ Heres how dead malls across America could be saved   [Aug-08-17 02:02PM  Yahoo Finance Video]
▶ Regency Centers Reports Second Quarter 2017 Results   [Aug-03-17 04:15PM  Business Wire]
▶ Whole Foods centers to get a boost from Amazon deal   [Jul-06-17 06:44AM  CNBC Videos]
▶ [$$] Strip-mall REITs sink on Amazon-Whole Foods deal   [11:16AM  The Wall Street Journal]
▶ First comes Wegmans. Then comes more Chantilly retail and homes to fill.   [Jun-12-17 03:10PM  American City Business Journals]
▶ Regency Centers reports 1Q results   [May-09-17 05:20PM  Associated Press]
Financial statements of REG
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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