Regency Centers Sees Profit Drop, Cuts Dividend

Shopping center developer Regency Centers(REG Quote), posted a 27% decline in first-quarter earnings and slashed its quarterly dividend on Wednesday.

During the quarter, the company earned $19.6 million, or 28 cents a share, compared to $26.7 million, or 38 cents, last year.

Funds from operations, a key measure of the real estate industry, decreased to $55 million, or 78 cents a share, compared to $61.2 million, or 87 cents, in the year-ago period.

Regency cut its quarterly cash dividend by 36% to 46 cents a share, or $1.85 on an annualized basis, from an annual dividend of $2.90 a share.

Last month the company closed a public offering of 10 million shares of common stock priced at $32.50 a share. Regency expects to earn about $311.2 million from the offering, which it will use to pay down debt and other company needs.

The company lowered its FFO guidance to the range of $3.03 to $3.28, compared to previous outlook of $3.25 to $3.50 a share.

Shares of the company closed up 5% to $37.19.