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Portfolio

Security West Building

Security Land and Development Company Limited Partnership

On November 18, 1994, Regency Affiliates, Inc. acquired a limited partnership interest in Security Land and Development Company Limited Partnership. The Partnership owns the 34.3-acre Security West complex at 1500 Woodlawn Drive, Woodlawn, Md., consisting of a two-story office building and a connected six-story office tower occupied by the United States Social Security Administration Office of Disability and International Operations under a fifteen year lease, expiring in 2018. The buildings have net rentable area of approximately 717,000 square feet. The construction of the Security West buildings was completed in 1972 and the buildings have been occupied by the Social Security Administration since 1972 under prior leases between the U.S. Government and the Partnership.

Regency Power Corporation

On April 30, 2004, Regency, through a newly-formed, wholly-owned subsidiary called Regency Power Corporation, a Delaware corporation, acquired a 50% membership interest in MESC Capital, LLC, a Delaware limited liability company, from DTE Mobile, LLC. MESC Capital was formed to acquire all of the membership interests in Mobile Energy Services Company, LLC. Mobile Energy owns an on-site energy facility that supplies steam and electricity to a Kimberly-Clark tissue mill in Mobile, Alabama. The energy facility is located on approximately 11 acres of land within the Kimberly-Clark tissue mill in Mobile, Alabama. The facility supplies up to 61 megawatts of co-generated steam and electricity for use in the mill’s operations, with a power-house fueled by a combination of coal, biomass and natural gas. In connection with MESC Capital’s acquisition of Mobile Energy, Kimberly-Clark entered into a 15-year agreement with Mobile Energy pursuant to which Mobile Energy will be the exclusive steam supplier to the mill and will provide a substantial portion of the mill’s electricity requirements.

Storage Depot-Harrisburg, Pennsylvania

On April 18, 2016, Regency announced that it had completed the acquisition of a portfolio of five standalone self-storage facilities in the Harrisburg, Pennsylvania vicinity, for a total purchase price of $35,000,000. The purchase price for the facilities and related transaction expenses were financed in part with the proceeds of a $25,250,000 non-recourse debt financing with a ten year term, 4.95% fixed interest rate and 30 year amortization commencing after a four year interest only period. The balance of the purchase price and transaction expenses, and initial working capital, were financed by an approximate $11,231,000 capital contribution from Regency to the joint-venture purchaser. The facilities together comprise approximately 330,000 square feet of net rentable space consisting of in excess of 2,500 climate and non-climate controlled storage units. Revenues from the facilities are derived primarily from monthly rentals by individuals and additional revenues are earned from rentals to businesses, parking rentals, truck rentals, billboards and other administrative fees. The projected cash return to Regency is expected to be accretive to the Regency’s cash flow per common share and the cash flow from this investment is expected to largely be sheltered from income taxation for the foreseeable future.

© 2016 REGENCY AFFILIATES, INC.