CALIFORNIA OVERVIEW

October 2006

21898-101206

� Most Populous State

� 36 million people (12% of US)

� High Density

� 217.2 persons per sq. mile (vs. 79.6 persons per sq. mile for US)

WHY CALIFORNIA?Abundant population and high growth

1

persons per sq. mile for US)

� Tremendous Growth

� 550,000 to 600,000 people added per year

� Highest population growth rates have occurred mainly in the Central Valley and foothill counties, and in Riverside and San Bernardino Counties in Southern California

� The five Southern California counties account for 55% of California’s total population in 2004, and 59% of the total increase in population since 1999

Source: US Census Bureau, The State of California Legislation Office.

21898-101206

� Economic Powerhouse

� World’s 8th largest economy - larger than Spain, Canada, Brazil, and India

� Accounts for over 13% of the nation’s total economic output

3 of the 4 busiest ports in the nation

WHY CALIFORNIA?

CALIFORNIA'S WORLD RANKING 2005 GROSS PRODUCT (US$)Rank Countries ($ billions)

1 UNITED STATES $12,4552 Japan 4,506 3 Germany 2,782 4 China (excluding Hong Kong) 2,229 5 United Kingdom 2,193 6 France 2,110 7 Italy 1,723 8 CALIFORNIA 1,622

Strong and diverse economy

2

� 3 of the 4 busiest ports in the nation

� Highly Diversified

8 CALIFORNIA 1,622 9 Spain 1,124 10 Canada 1,115 11 Brazil 794 12 Korea, Rep. 788 13 India 785 14 Mexico 768 15 Russian Federation 764 16 Australia 701 17 Netherlands 595 18 Switzerland 366 19 Belgium 365 20 Turkey 363 21 Sweden 354 22 Saudi Arabia 310 23 Austria 305 24 Poland 299 25 Indonesia 287

Source: World Bank: World Development Indicators (July 2006), The State of California Legislation Office.

21898-101206

WHY CALIFORNIA?Strong job growth

� Net new jobs in California = 23% of US total

� California has added about 2.4 million jobs over the past decade, an annual growth rate of 1.8%

3

rate of 1.8%� The fastest growing sector

has been construction, which has grown at an average rate just under 6% per year

Source: Economy.com, The State of California Legislation Office, California Department of Finance.

Top Employers

Kaiser Permanente 91,562

University of California 89,319

AT&T Corporation 48,484

Naval Base Coronado (incl. North Island NAS) 35,969

The Boeing Company 33,643

Wells Fargo & Company 26,106

Northrop Grumman Corporation 25,048

Walt Disney Company 21,000

Target Corporation 19,820

Safeway, Inc. 18,615

21898-101206

WHY CALIFORNIA?Superior demographics and high barriers to entry

Median HH Avg HHState Population Income IncomeCalifornia 36,270,872 $59,925 $74,424Texas 23,330,288 50,921 62,568New York 19,289,744 54,783 70,089

� California’s household income profile is the highest in the nation:

4

Florida 18,115,876 48,783 61,643Illinois 12,847,576 52,286 63,990Pennsylvania 12,486,184 49,646 60,620Ohio 11,489,665 46,241 55,847Michigan 10,201,722 48,402 58,179Georgia 9,226,173 52,760 64,491North Carolina 8,765,782 48,031 58,937

� Strong Development Barriers� Political barriers

� Long and cumbersome zoning and entitlement process

� Geographic barriers

� Limited supply of developable land

Source: Claritas.

21898-101206

WHY CALIFORNIA?Strong retail fundamentals

� 8 out of the top 42 retail markets ranked by Marcus & Millichap are located in California:

Rank Rank Rank RankMSA 2006 2005 MSA 2006 2005San Diego 1 1 Chicago 22 24Orange County 2 2 Orlando 23 19Oakland 3 10 Denver 24 26New York City-Manhattan 4 8 Tampa 25 22Phoenix 5 11 Dallas/Fort Worth 26 29

5

Phoenix 5 11 Dallas/Fort Worth 26 29Washington, D.C. 6 3 Sacramento 27 23San Francisco 7 7 Philadelphia 28 28Seattle 8 15 Houston 29 32Fort Lauderdale 9 4 Minneapolis-St. Paul 30 27Riverside-San Bernardino 10 6 Jacksonville 31 31Austin 11 17 San Antonio 32 33West Palm Beach 12 5 New Haven 33 34Atlanta 13 14 Salt Lake City 34 30Los Angeles 14 9 Charlotte 35 38Boston 15 13 Milwaukee 36 37Northern New Jersey 16 18 Indianapolis 37 41San Jose 17 21 Detroit 38 35Tucson 18 20 Kansas City 39 NewLas Vegas 19 12 Cleveland 40 36Miami 20 16 Columbus 41 39Portland 21 25 Cincinnati 42 40

Source: Marcus & Millichap 2006 Annual Retail Research Report. California markets are highlighted in yellow.

21898-101206

REGENCY IN CALIFORNIAGrowth in Regency’s California investment

California MarketInvestment

December 1999 3Investment June 2006 3

REG Pro-rata Investment June 2006

Los Angeles1 $159,070,164 $402,613,806 $252,281,634

Orange County $150,369,217 $219,579,927 $118,282,812

6

Source: Regency.1 Includes Ventura for 1999 Investment, but includes Ventura and Santa Barbara for 2006 Investment.2 Includes Oakland for 1999 Investment, but includes Oakland and San Jose for 2006 Investment.3 Includes joint ventures at 100%.

Riverside-San Bernardino $0 $53,165,429 $37,461,127

Sacramento/Stockton $34,423,729 $109,989,311 $40,267,082

San Diego $111,423,526 $284,201,073 $182,502,051

San Francisco Bay Area2 $169,256,893 $479,413,175 $266,935,996

Totals $624,543,529 $1,548,962,721 $897,730,703

21898-101206

REGENCY IN CALIFORNIACalifornia in context

# of Properties 1 % Leased GLA Rent Growth 2SS NOI Growth 2

Regency (total) 356 95.5% 42,023,363 12.7% 3.2%

� Regency’s California properties have outperformed the greater Regency portfolio

7

Source: Regency.Note: Includes joint ventures at 100%.1 Operating properties only.2 12 months ended 6/30/2006.

California 58 98.7% 7,375,702 14.1% 3.7%

21898-101206

REGENCY IN CALIFORNIASuperior markets

Regency's California Markets% of Regency's

Tota l NOI% of California

NOI

3-Mile Estimated Household Income - June

30, 3006 (Regency)San Francisco Bay Area 5.5% 22.9% $99,270 San Diego 4.7% 19.5% $71,830 Los Angeles 4.5% 18.7% $93,604 Orange County 3.4% 14.0% $83,689 San Jose 1.6% 6.5% $107,152

8Source: Regency.Note: Includes joint ventures at 100%.

San Jose 1.6% 6.5% $107,152 Ventura 1.4% 5.7% $106,994 Riverside-San Bernardino 1.0% 4.0% $82,254 Sacramento 1.0% 4.0% $80,720 Santa Barbara 0.7% 2.7% $83,714 Stockton 0.5% 1.9% $81,691

Tota ls 24.1% 100.0%