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Regency Affiliates Declares Quarterly Dividend

Regency Affiliates, Inc. has recently declared a quarterly dividend of 7.8 cents per common share, highlighting its ongoing commitment to return value to shareholders. The dividend will be paid on April 7, 2025, to those on record as of March 31, 2025. This reflects a 4% increase compared to the previous year, signaling the company's robust financial health.

Chairman, CEO, and CFO Laurence Levy expressed enthusiasm about the dividend, noting how the company continues to benefit from strong cash flows generated by its portfolio of self-storage facilities located in and around Harrisburg, Pennsylvania. "We are pleased to declare this quarterly dividend... reflecting our confidence in our business model and growth prospects," Levy stated.

A Growing Portfolio

Regency currently owns five separate self-storage facilities in the Harrisburg area, purchased for a combined total of $35 million. Of this, $25.3 million was financed through a non-recourse loan maturing in 2026. This financial structure, coupled with a fixed interest rate of 5% per annum, provides a stable operational foundation. Thanks to consistent occupancy rates at these facilities, Regency has managed to maintain attractive cash flows, which are pivotal for sustaining dividends over time.

In October 2024, Regency's subsidiary secured a $5 million loan to fund the acquisition of minority interests in these self-storage facilities. This financing is designed to bolster their operational capacity and support general corporate functions, including the repurchase of shares in the company. This not only enhances shareholder value but also increases control over their assets.

Investment in Security West

Another noteworthy aspect of Regency's operations is their investment in Security West, which comprises a 50% limited partnership interest in a property previously leased by the U.S. General Services Administration (GSA). However, on September 30, 2021, they were notified by GSA of lease termination, set to take effect on November 1, 2023. The future of this investment now hangs in the balance, but there remains optimism as the management team explores new potential uses for the site, such as developing a data center.

The partnership is currently debt-free, holding over $6.2 million in cash, which offers significant financial flexibility in navigating upcoming challenges. Regency is maintaining a proactive approach, constantly reviewing investment opportunities that align with their strategic goals and financial criteria.

Commitment to Shareholders

Regency Affiliates emphasizes its intent to keep shareholders informed about developments at Security West and its overall strategic direction. They are committed to evaluating new investment opportunities while ensuring cost reduction to strengthen the company's financial footing.

This announcement indicates Regency's commitment to its shareholders and their ongoing efforts to explore growth avenues in a challenging market landscape. For shareholders, the rising dividend represents a favorable return on their investments, reflecting Regency Affiliates' robust operational strategy and financial management.

For shareholders holding shares in certificate form, management advises contacting their transfer agent to confirm registration information to facilitate smooth processing of the dividend.

About Regency Affiliates

Regency Affiliates, Inc. is an investment firm focused on generating attractive and sustainable capital returns. With a current portfolio that includes a wholly owned collection of self-storage facilities and a significant partnership in Security West, the company continues to position itself as a competitive player in its sector.