Regency Affiliates Declares Dividend of 7.8 Cents for Fourth Quarter

Dividend Notice: 7.8 Cents Per Share

NEW YORK, Dec. 19, 2024 /PRNewswire/ — Regency Affiliates, Inc. (OTC Pink: RAFI) (“Regency”) has announced a quarterly dividend of 7.8 cents per common share. This payment will be made on January 7, 2025 to shareholders on record by the close of trading on December 31, 2024.

Insights from Management

Chairman, CEO, and CFO Laurence Levy commented on the dividend increase, stating, “We are pleased to declare a quarterly dividend of 7.8 cents per common share, reflecting a 4% increase over the amount paid in January 2024. Our confidence in this dividend level is supported by the cash flows generated from our self-storage assets around Harrisburg, Pennsylvania and our solid cash resources.”

Regency’s portfolio includes five self-storage facilities near Harrisburg, acquired for a total of $35 million. Of this, $25.3 million is under non-recourse financing for a term of ten years, with a four-year interest-only period concluding in May 2020 and moving to a thirty-year amortization schedule thereafter. This debt has a fixed interest rate of 5% and matures on May 6, 2026. Regency reports stable occupancy and cash flows from these facilities.

On October 8, 2024, a Regency subsidiary secured a $5 million loan from a third party to acquire additional interests in the self-storage properties and for general corporate expenses. The loan carries a monthly interest of 10% and is due by May 7, 2026. Importantly, this loan is prepayable without penalties and is secured by Regency’s interests in the facilities.

The company also holds a 50% limited partnership stake in the Security West investment, previously leased to the General Services Administration (GSA). GSA ended its lease, effective November 1, 2023, bringing uncertainty to this investment. However, as of September 30, 2024, the partnership is debt-free with over $6.5 million in cash, allowing for future flexibility. This partnership is exploring various options, such as selling the property or possibly developing a data center on the site.

Regency is actively looking for ways to invest in and grow its operations, aiming to acquire additional attractive long-term business opportunities.

To ensure timely processing of dividends, shareholders holding physical certificates are encouraged to verify their registration information with our transfer agent, Transfer Online, Inc., at (503) 227-2950.

About Regency Affiliates

Regency Affiliates, Inc. focuses on investments that generate reliable and sustainable returns. The company currently has two primary assets:

1. A wholly owned portfolio of five self-storage facilities near Harrisburg, Pennsylvania, covering around 337,000 square feet with over 2,500 climate-controlled and standard storage units;
2. A 50% limited partnership in the Security West Complex, located on 34.3 acres in Woodlawn, Maryland.

Forward-Looking Statements

This press release contains forward-looking statements, predictable in nature and often indicated by words such as “may,” “will,” “anticipate,” and similar terms. These statements carry risks and uncertainties that may cause actual results to differ. Important risks include potential defaults involving properties, ability to raise additional capital, and competition for investment opportunities. Regency provides no obligation to update these statements, and further details can be found on our website www.regencyaffiliates.com.

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SOURCE Regency Affiliates, Inc.