Regency Affiliates announces $1 million stock buyback, suspends dividend

Published 25/06/2025, 14:14
Regency Affiliates announces $1 million stock buyback, suspends dividend

NEW YORK - Regency Affiliates, Inc. (OTC Pink:RAFI) announced Wednesday it will initiate a stock buyback program of up to $1 million while suspending its quarterly dividend. The stock, currently trading at $3.03, has declined over 32% year-to-date. According to InvestingPro analysis, the company’s shares are trading at significantly low multiples, with a price-to-book ratio of just 0.25.

The buyback program, set to begin after June 26, will be executed through open-market purchases or privately negotiated transactions, according to a company press release.

Laurence Levy, Chairman, CEO and CFO of Regency, said the buyback represents "a more effective use of Regency’s cash resources" than continuing the quarterly dividend program that has been in place for several years.

Regency owns five self-storage facilities near Harrisburg, Pennsylvania, acquired for $35 million. The properties were financed with a $25.3 million non-recourse debt arrangement at 5% interest, maturing May 2026. With a debt-to-capital ratio of 0.67 and total revenue of $5.04 million in the last twelve months, InvestingPro identifies 14 additional key insights about the company’s financial position and market performance.

In October 2024, a Regency subsidiary borrowed $5 million to acquire its minority partner’s interests in these self-storage facilities. This loan carries a 10% interest rate and is also due in May 2026.

The company additionally holds a 50% limited partnership interest in the Security West Complex in Woodlawn, Maryland. The 34.3-acre property has been vacant since November 2023 after the expiration of a U.S. General Services Administration lease.

In May, Regency amended the Security West partnership agreement to include a market-based management fee structure. The company reports that marketing efforts to redevelop the site as a data center are underway, with a local utility providing assurances for 150 MW of power supply to the location.

As of March 31, the Security West partnership held over $6 million in cash and was debt-free.

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