Regency Affiliates Announces Quarterly Dividend Increase to 7.8 Cents

NEW YORK, March 24, 2025 /PRNewswire/ — Regency Affiliates, Inc. RAFI (“Regency”) has announced a quarterly dividend payment of 7.8 cents per common share. This payment is scheduled for April 7, 2025, to shareholders who hold shares at the close of trading on March 31, 2025.

Management’s Commentary on Dividend and Performance

Chairman, CEO, and CFO Laurence Levy remarked, “We are pleased to declare a quarterly dividend of 7.8 cents per common share, reflecting a 4% increase from the dividend paid in April 2024. We remain confident in maintaining this dividend level, particularly as we benefit from the cash flows generated by our self-storage portfolio in the Harrisburg, Pennsylvania area.”

Regency’s portfolio includes five stand-alone self-storage facilities around Harrisburg. These facilities were acquired for a total of $35 million, of which $25.3 million was financed through a non-recourse, ten-year debt that ended its four-year interest-only period in May 2020. The fixed interest rate on this debt is 5% annually, and it matures on May 6, 2026.

Recent Funding and Financial Decisions

On October 8, 2024, Regency’s subsidiary secured a $5 million loan from an unrelated third party. Proceeds from this loan funded the acquisition of a minority partner’s interests in the self-storage facilities, covered related expenses, and supported stock repurchases. The loan, accruing interest at 10% per annum, is due on May 7, 2026, unless fully repaid sooner.

The $5 million loan is prepayable without penalty and secured by Regency’s interests in its self-storage properties. Additionally, there is a clause granting the lender the first opportunity to purchase the facilities if Regency decides to sell.

Updates on Security West Investment

Regency holds a 50% limited partnership interest in the Security West Complex, previously leased to the U.S. General Services Administration (“GSA”). The GSA has opted to terminate the lease, effective November 1, 2023.

Despite uncertainties stemming from the lease termination, the management team is optimistic. They are exploring potential new uses for the property, including developing a data center, leveraging the site’s substantial power supply. Proposed amendments to the partnership may allow for management fees and incentive compensation based on property value thresholds; however, success in these endeavors is not guaranteed.

As of December 31, 2024, the partnership was debt-free and held over $6.2 million in cash, affording financial flexibility. Security West’s management believes there is still market interest for the property from private sector tenants or investors. Updates regarding this property will be shared with shareholders as developments unfold.

Future Investments and Strategy

Regency is actively exploring further investment and cost-reduction opportunities while seeking to grow by acquiring or investing in additional long-term businesses that meet specific investment criteria.

To ensure efficient dividend processing, management encourages all shareholders with certificate-held shares to confirm their registration details with our transfer agent, Transfer Online, Inc. at (503) 227-2950.

About Regency Affiliates

Regency Affiliates, Inc. focuses on investments that yield attractive, predictable, and sustainable returns. Currently, we are invested in:

1. A wholly owned portfolio of five stand-alone self-storage facilities in the Harrisburg, Pennsylvania area, encompassing approx. 337,000 square feet and over 2,500 climate-controlled and non-climate-controlled storage units.
2. A 50% limited partnership interest in the Security West Complex located on 34.3 acres in Maryland.

Forward-Looking Statements

This press release contains forward-looking statements about future events or performance. Such statements can be identified by terms like “may,” “anticipate,” “believe,” and “expect.” Actual results may differ materially due to risks such as property defaults, the ability to raise capital, and competition for investment opportunities. Regency does not undertake any obligation to update these forward-looking statements, which are current only as of the release date. For more details on potential risks, please visit our website at www.regencyaffiliates.com.

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SOURCE Regency Affiliates, Inc.