Regency Affiliates Declares Quarterly Dividend Growth for 2025

Regency Affiliates, Inc., trading as OTC Pink: RAFI, has disclosed its plans to distribute a quarterly dividend of 7.8 cents for each common share held. This announcement comes as the company prepares to reward its shareholders on January 7, 2025, with the cutoff for eligible shareholders set for the end of trading on December 31, 2024.

The company’s CEO, Laurence Levy, expressed satisfaction with this dividend decision, highlighting a 4% increase over the same period last year. "We are confident in this dividend level, particularly thanks to the strong cash flows from our portfolio of self-storage properties and overall cash resources," he stated.

Investment Strategy and Portfolio Details

Regency's real estate investments primarily include five self-storage facilities located in and around Harrisburg, Pennsylvania. These facilities encompass approximately 337,000 square feet, accommodating more than 2,500 storage units that are climate-controlled and non-climate-controlled. The total investment for these properties amounts to $35 million, with $25.3 million financed through a non-recourse loan that has a fixed interest rate of 5% per annum, set to mature on May 6, 2026.

Levy noted the stability in occupancy rates at these facilities, which has significantly contributed to the consistent cash flows, allowing the company to sustain and incrementally increase its dividends. Furthermore, Regency recently secured a $5 million loan to buy out minority interests in the self-storage facilities as well as cover other corporate expenses, showcasing a strategic move to consolidate ownership.

Financial Flexibility and Future Plans

At the core of Regency's financial strategy is its management of the Security West investment, which represents a 50% limited partnership in a real estate project previously leased to the U.S. General Services Administration. While the GSA’s decision to terminate its lease as of November 1, 2023, adds uncertainty, Regency remains optimistic. The partnership held over $6.5 million in cash as of September 30, 2024, providing an excellent basis for potential future investments.

The general partner is currently evaluating several options, including the possibility of developing a data center at the Security West site, a move that aligns with current demand for scalable data solutions. This proactive approach depicts Regency's commitment to optimizing the value of its assets.

Continual Assessment of Opportunities

Regency's management states their ongoing focus on reviewing new investment opportunities and cost-saving measures aimed at promoting growth through strategic acquisitions. They aim to further elevate the business by identifying long-term investment targets that align with their established criteria. The announcement of the dividend reflects their confidence in the current state of affairs and their proactive approach toward growth.

In summary, the quarterly dividend announcement not only illustrates Regency’s financial stability but also indicates its readiness to capitalize on future opportunities. Shareholders are encouraged to ensure their registration details are up-to-date with their transfer agent to ensure seamless processing of the upcoming dividend.

For further information about Regency Affiliates and its strategic direction, investors and stakeholders are invited to visit the official website of the company.