Regency Centers And Equity One To Merge In $15.6 Billion Transaction

Regency Centers Corporation (NYSE:REG) ("Regency") and Equity One, Inc. (NYSE:EQY) today announced that they have entered into a definitive merger agreement ("Agreement") under which Equity One will merge with and into Regency, with Regency continuing as the surviving public company and creating the preeminent shopping center Real Estate Investment Trust ("REIT"). The resulting enterprise will have industry-leading operating, development, redevelopment capacities as well as an unparalleled portfolio of primarily grocery-anchored properties uniquely positioned to sustain growth in net operating income ("NOI") and create value for all of its stakeholders. The combined company is expected to have a pro forma equity market capitalization of approximately $11.7 billion and a total market capitalization of $15.6 billion, making it the largest REIT by equity value in the shopping center index.

"Bringing together these two highly complementary businesses creates a best-in-class platform capable of delivering sustained growth and value creation over the long-term," said Martin E. "Hap" Stein, Jr., Chairman and Chief Executive Officer of Regency. "Shareholders of both companies are poised to benefit from an expanded presence in top metro areas, a higher organic growth profile, expanded development and redevelopment program, and greater tenant diversity. Through this transaction we are creating the nation's preeminent shopping center REIT with excellent embedded growth potential. Importantly, we expect the transaction to be accretive to core FFO per share while preserving a sector-leading balance sheet, with greater financial flexibility to support growth initiatives."

"This merger will be a transformative event for both companies," said David Lukes, Chief Executive Officer of Equity One. "The alignment of our respective portfolios, development/redevelopment pipelines, industry-leading operations, and access to a lower cost of capital, opens us to new avenues of growth that will benefit all shareholders. Equity One shareholders are receiving an attractive valuation for the company's assets, and have the opportunity to participate in the future growth prospects of a powerful new company led by a best-in-class management team."

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