Brixmor Property (BRX) 31 Oct 172017 Q3 Earnings call transcript

Good morning, and welcome to the Brixmor Property Group Inc.

Third Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ms. Slater. Stacy ahead. go Please

Angela Q&A. and Executive call. all be President, call for With Chief Officer; well Finnegan, President; Jim operator, Chief Brian President third Officer and President Financial today joining who and quarter Leasing, available Taylor, as and and Officer conference me Mark Executive Vice Executive thank you, will Vice for and Horgan, you, as, Brixmor's are Aman, Vice Thank Executive on Investment the Chief

Before will to statements. me contain of statements to measures are to certain of We let GAAP use and uncertainties of we comments refer to forward-looking that our regarding future filings are Further Relations SEC Investor and and actual measures on certain these available our materially. measures. disclosure some the assume any release begin, as Also, website. portion results these that non-GAAP no everyone our information of today remind and financial our update supplemental earnings differ described based today on obligation subject forward-looking our may the risks assumptions in results in inherent and are reconciliations may we

ask Given or on call, the that to the number questions you two we of your kindly limit person. participants one per

additional have please re-queue. pleasure Taylor. Jim At the you questions If quarter, my regarding introduce this time, to it's

FFO redevelopment our to and capital balance recycling has growth. accelerate our our current and leasing progress, and ranges and per substantial very plan and everyone That you us productivity, joining quarter cash growth progress which sector-leading accelerated for morning, as our in facets Good thank report continue all we is share. of long-term to to to our pleased activity, am and Stacy. that our flow our value to call. continue on Thanks, I NOI led investment improved sheet year maximize strengthening our third merchandizing, unlock tighten reflected ramping we our update make

dig X.X cash options, which with and new for you trailing ABR. anchor total begins of a an XX also new skew towards When foot, we and X.X where ABR perspective, feet rent of of million leasing, square X.X% executed this into renewal include that Let’s timing executed as spread a XXXX $XX.XX additional rent lease leases, team. we the created of leases square our into per is for feet we record square they early million through a and million those is which a XX%. record and progress. at XXXX months, $XX It new commenced signed or incremental deals. From With

As cost we’ve or more on rent commencement with increased. the older ones replacing relevant basis in anchors investment focused

merchandizing to California Pizza Yagers, Be New desirability our bringing in Importantly, our centers of and Vallejo upgrade team. These Nanuet, York. Shack uses Good as in new such strong Shake MOD our and restaurants to parcel deals performance we of continue in portfolio executed and the the underscore

standpoint, primarily the drive was to this the decline growth who while on important the merchandizing will serve. sequential occupancy our an over positioning communities and XX by such It’s uses note in Marlton, specialty space increase to remain growth year-over-year New plus our of as XXX These restaurants, signed centers to commitment to Jersey. executed traffic advance more tenants additional follow-through drive also during and factors. in delight and specialty right here long-term From focused that we driven expanding the our reinvestment fitness, to value tenancy We quarter Mamaroneck, These they simply our occupancy. centers grocers leases selling York previously to uses quarter versus and our the getting home, engage small with new chase and New highlight two projects stated stop deals, two grocery. occupancy

First, points. drove future pipeline drag our basis a year-over-year XX over ramping of redevelopment

of stabilized drag a to delivery to get spend we XXXX. that expect until to increase continue We in and late level

Second, highlighted last rueXX. make pleased we primarily outside am and basis I progress of the strong recaptured quarter, redevelopment we that bankruptcies impact leasing that experienced to report Payless a pool, space. the continue we XX to on from

those of is of fact, XXXX are we’ve XX% In a the are under and new north where DOA executed for XX%. bankruptcy LOI results spaces spreads lease rent

on we trying in while also saw as occupancy the impact expect from redevelopment capital negative XXXX ramping downtime. always And a team is don’t later rents commence and until not recycling significant to interestingly, recent that slightly However, as as the in our we minimize of bankruptcies, laser-focused activity.

at square Despite As we put a ABR. average feet total from at million of or continued months. has leased and $XX in the grow capital million on just at us additional an pipeline the allocation XX maximize sold purposely on From retail perspective, our the million XX proceeds assets last XX% to occupancy to X in drove nearly value. of over comprising currently headlines space, leasing forward XXX leases while and spaces stands

overall growth for which productivity company. outstanding a in to the Our continues is ABR XX.XX up record foot, leasing also X% per our drive year-over-year to

in accretive we about continues growth to average and we that open space. for turn That driving opportunities. growth about with the portfolio same the that leasing reflects minute. intrinsically entire think reinvestment place tenants and of best for air production Now the the a are XX% very unlock significant in It rent importantly which annually also

as a pre-leased. at ten comprising X%. new before, projects risk said pipeline This an reinvestment growing we That incremental quarter, investment $XX average perspective it’s apart and active of return substantially of I’ve million added because stands from

markets on York move City, Cudahy, to activity XX redevelopment based access like that pipeline our Redford shadow projects to that pipeline also Michigan, in leasing will and added Hampshire. Garden California, New new soon Concord We New

set that are spend our of ramping return with million are delivered we With XX%. towards and million pipeline we over an incremental $X pre-leasing, by accretive am ground million market the value projects average XXXX. absolute pleased only in very to end annual shadow helping at million quarter we also and achieve $XXX Brown leader this value-accretive $XXX the not the an is created, underway and efforts execution goal velocity of as Bill goal running in the being delivery. of leadership our of but Finally, who here now I $XXXX of actively with the us reinvestment of of a marching

nine $XXX value, at this or harvested unlocking report of of million an sales share Speaking quarter average asset we X%. to cap I also at that am happy XXX in our rate another

plan efforts execute this asset currently Campbellsville We continue ramp contract sell to to upstate demonstrate on York our liquidity to on markets markets Three assets discussed and and We singe non-core calls. several assets I’ve additional New and our included to for as have Kentucky. prior exit for to dispositions quarter. our under continue which

Let me execution for our pause a on here moment.

quartile least points We in trading hard are sales. job of we and testament valuations by tighter and also – truly are than XXX put In at the achieving the portfolio, today. are are basis individual bottom Mark cap if to as a are we but than team, their to on that do a non-core them assets rates that where asset you would willing work – outstanding an our exist the liquidity

intentional those the balance front, that and capital are hold and plan reducing all average careful assets balance will continue long-term clear of stands tenor From selective on and weighted sheet. part including a This X.X on million we sheet over our strength which existing now IRRs our highly and to reduce to flexibility $XXX remain at a execution of years, we is our with focusing our compelling. Our by leverage demonstrates acquisition quarter. debt the and only maximize perspective, stewardship upside this of our extend markets

reflects share fact of FFO that the top-end assets will net our of ramping year increasing forward, redevelopment. which drag Looking reduced the have guidance we this the of and our per disclosure

a and allow more to Before impact me discussion briefly of to and turning Harvey detailed call the Irma. our of over the results outlook, Angela on touch hurricanes for

As past two assets that the a of in well over were XXX you we know, these may storms. had

reopen the could mitigated getting that Matt prepositioning been have much our get centers quickly. worse. on Their cleaner to outstanding supplies, rock impact Holly, running teams sheet led Our job efforts did and ground and even Julie, tenants much, hanging back and Jason, spaces by an helping quickly, outstanding an up

Tour in Houston, volunteers XX,XXX in in and meals – running insurance employee so centered in many many children the is you we by our of efforts Houston. am I impacted back little very over there. were turned habitats a Florida. core BPS are expected impacted whom donated supplies estate by of to first-hand by of of the send to efforts over how to and community covered Those consistent for we serve. broader team we the South the of the opportunity outstanding. excited in contributions centers to contributions back, the am drive both helped in are our and XX,XXX responded, and and efforts Food our of most to you downtime storms. Houston seeing our purpose those real truly mostly Simply XXX,XXX including put, with to the Florida me of we up with to our continue of am very growth. to as that with much impacted to districts make I little themselves breadth And you quarter. school closing, let XX these over Board also team and say see Property donated All on I of included displaced assist proud not over South be through the our In contributions XXX,XXX damages forward more displaced families NOI local communities or plan fourth storms, worth these with that’s assist members NAREIT being looking for of the proud to at severely Bank, building to our most have Dallas our

speak seeing deliver you where Angela. Investor many and the it to With also coming meet are our looking our of to larger we our at Day December also our years. tenants performance receive some you’ll early forward team, the of We over guidance expect over have I’ll to that, broader turn opportunity how in with for to

early and growth executed pleased portfolio gain in contributing extinguishment for NOI our basis, year-to-date additional of range quarter X% quarter is growth both a X% adjustments of the bankruptcy to by of X% impact revision Thanks, debt in other secured fees. below NOI rental Same-property same-property range rent to guidance representing drag we current primarily our during share in the delays a the the Jim high to year-to-date of year for growth GAAP strategy. pipeline gave debt. growth previous year-to-date share operational revised results primarily $XX and FFO was part rental the excluding related quarter, in of representing same-property facilitate rent lease report activity, points. which have FFO redevelopment XXX X.X% $X.XX basis growth cost good On termination Based commencement occupancy per portfolio, and of non-cash days per our The expectations repayment of demonstrate lease of on $X.XX million and of points was growth XXX our same-property basis, the on low-end excluding across range adjustments that period proactive This from of forward was morning. was quarter. X% expansion another quarter’s our and I fully performance long-term well performance fourth points. execution the same-property quarter basis part NOI am XXX leases. to consistent to be with likely growth or and the the fourth as financial driven order on and due NOI call successful for on we a that health GAAP basis strong X.X% NOI last in vacancies would large with contributing guidance rate the X.X% the to at of of range in the On full the non-tax to to the attributable base X%. a termination third indication growth fees created to third due on the was detracted certain with base a as and XQ the rent remerchandising

reflects to during $XXX third a previously sheet, million range the for used revised on from impact closed activity. term announced, unsecured term loan $XXX balance we our expectations With year unsecured respect maturities. of loan seven the addition, financial current proceeds hurricane to and the the million, as In quarter, XXXX our repay

sheet. of FFO the our approximately to during the from X.X of of going representing our $X.XXX level in share In an $XX that fund strengthen as net value of our FFO the under X%. maturities in facility. to $X.XX have to liquidity between night, our the factor a and to dividend that $X.XX on The to share ratio at dividend addition, of last we we’ve are an well of XXXX XX% our million capital volume The with quarterly balance in same-property of in overall capital expectations retain we rate. per $X.XX debt end With Directors our our continue reinvestment quarter activity prepaid times, the public. capacity revolving the interest we years. per third during ability acceleration This pipeline a a the recycling now important million yield and significant next lowest we growth efforts X.X% From announced payout range disposition our Board secured standpoint, $XXX X.X% undrawn guidance, with of per $X.XX revised impact creating leverage has on previous accretive low of our respect third shareholder only ample NOI we sector increase range our credit will from billion a completed additional revised dividend change now to sheet The as at $X.XX balance the and company’s lowest debt of we share the assess increase approved EBITDA the capacity reflects quarter. one an be several and over level since Last $X.XX share. to to night, in drive an range, per to annualized had

As moderate discussed will in prior continue over adjustments calls, non-cash GAAP rental to time.

next at an current adjustment While the in purposes, rental that million our remains lower quarter and guidance a XXXX runrate for these represents year be million, significantly will unchanged expect to for total items for that believe GAAP line $XX we $XX non-cash appropriate do XXXX. modeling

guidance for Q&A. at Day that, more with specific over We our December. on in XXXX expectations for call operator will the And turn provide Early the our Investor I’ll to

[Operator of comes Instructions] Please from Our first Schmidt question Bank go with ahead. America. Craig

is this Justin Craig. for on Jim, Hi,

as just question year And earnings see quick may that we been dilutive quite forward? here XXXX have a on you had has was impact thinking and next how year? what that Just We on looking should curious predicted any about dispositions. be I if

will that And prepared really sale that standpoint more not compelling see for asset we Let I’ve from said guidance give have recycling the broadly our our here from And we again, to we have are think a – that on are inside Mark me ramp core team and under overall that, comment rates on is to strategy contract. trading continue doing the I efforts next at and today. and very in and really year, value our are the as that pipeline this point based we to assets market. time. we the are capital efforts certainly of of important capitalize again, well It one we disposition we before, to point able harvest in remains continuing cap to long-term are on and a environment really what at where compelling that while assets growth to

to that on to we that just And I was excited to – what the XQ, need there then, or weren’t start guess, do that. – acquisitions other are forward again? and something guess, getting thinking side things, any about in come of on noticed a I you I about of acquisitions, how see looking sign Appreciate acquisitions on is

Thanks for question. the

be are in As not environment. going disposers this said we I’ve to before,

those looking or lot existing only are are lots. at our opportunity and because got very are We are that markets and reinvestment single-digit, to remain where where disciplined that’s to to upside, we’ve acquire growth environment double-digit in grow in pre-leasing a and of low terms our we a to properties high we in on is of adjacent of continuing of producing an returns some pipeline assets going see we

our of as where and we in today. versus the capital, prudent values trading our So, paying market is that assets emphasize grow about think thing allocation are most investment to for think we regard

you. thank Great,

You bet.

Please from Our is next ahead. Citi. Christine go question McElroy with

everyone. morning good Hi,

morning. Good

that’s so driven the on CapEx It guidance, value that greater and it’s drag causing and is NOI. than in you Just it’s the that unchanged. looking by guess the ramping but the ramping redevelopment, I same-store quickly months at just sounds is change that three expected pipeline like fact enhancing then ago, more

to can capital to is pipeline immediately driving you reconcile sort maybe So help the it And downtime what’s greater for work? greater ramp that, just that of expected?

the Christy. I we there it. New space down. redevelopment example question, driving this And to what’s that we thanks in is excited the taken that we’ve for really sprout. backfill Well, the is to taking What’s driving about for trigger that are demand it Marlton, drag back the space am with have Jersey the

So space, that Supermarket. another mentioned with the two Creek grocer in quarter. at for Mamaroneck. did one I down We’ve we We the back example to there in did taken this specialty redevelopment deals launch Lucky Hunters Florida

by So, the board, space do anchors is hit that, some we course, relevant are and is, these leadership across to replace also on seeing to what the team. back. with I of got opportunity we what the of am increasingly Bill to And to center more uses Brown’s particularly an encouraged that

it. it quarter, We’ve asset accelerating assets projects we there active active shadow into make right. pipeline. we benefit we to follow-on substantially we we the projects as and expect think want show folks you’ll them really pre-leased, this and the been deliver touch centers the I so And of that the continuing Hammer really it that Home doesn’t pipeline ten pipeline is, remerchandize pipeline out the that and added the these to other shadow Christy, moving element from more reflect are we is is, which rate are moved is, I the at are what And fully and We notice into or better. with

with we we’ve big that, our where consistent in compelling, example, on capital is pop and are as we in New think shop these some demand redevelopment relative to fact Marlton, into long-term should it. the basis, that plan sprouts, very that a the when do that sales, coupled about that’s Jersey, deploy But this tenant returns. it factored we the generating bring For around from a we expect not asset we but at with got the of is small rents

So, that’s the – carrying specifically are that we question recapturing if more you vacancy space it’s answer redevelopment. more really, Christy, will that associated with the just and a as lot

Got at back what sounds okay. driving guidance you issues to are delayed it, And impact top-end like same-store there? of get bigger do dates the of the the commencement and rent those it was at from there pushed some of dates, think what some least some range is

there cost we which And That’s time begins changing of that on paying has something closely with quality get doing recaptured grown and and downtime focus of tenants to that rent trend and paying higher as what you see reposition are of simply different rent. specialty a of sort part of follow-on of it in we doing shop we impact that also measuring ultimately a doing the commencement, between type tenants lease and rent And of to the the very of fitness once cost better is small underlying we proportion a I track that it underlying the the want it a are than use think before. use or period which in grocer another intentionally, uses, deals it’s is merchandizing, that very is really anchors. deals and box bringing larger we signed a of are was make because, the factor the that we’ve we of other anchor

that commencement function in those both So, cost. that increase rent it’s a that’s – it’s driving really things of of

much. so Thanks

bet. You

ahead. question Our next with Kim from Please is go Ki Bin SunTrust.

Bin. Ki Hey,

that occupancy good follow-on morning should of pace new follow-up Tie we should the question, are to ramping the how Hi, okay, small with next you previous shop year when gains up that and about especially we throughout given guys. that expect think benefit?

think that us make to I next progress on the quarters. you throughout should several consistent see expect

been driving are more the small that With to weighted. sure we things back-end that steady focused through a given that bit of see the that is activity team. redevelopment outparcel making are several and a A going build deals of themselves, are right the time next those that on progress metric has a we And an should restaurant I intentionally tenants. bit lot the for themselves be example we shop projects from are outs little think longer again, driving But a consistent and doing. been progress And in perspective, really throughout other lead lot our the we’ve quarters. pretty you

development? And part that time? one the over been talk scope is there growing, of about total that’s a parcel Okay. looks Can like you story and development the what a little more

I can am question? sorry, repeat Ki Bin, the you

Parcel developments.

interesting to throughout part. outparcels was XXX the didn’t I hear company had XXX was of harvested. been outparcels what really when never scope Sure, share that I to into came the the me portfolio over that

brought opportunity focused Tommy and a on we make way portfolio. on mentioned that are a the phenomenal we past so harvesting And across the led in we by sure that are Creekmore team as in to new I’ve doing so,

Pete's the sometimes we’ve of on for done example our we we over Shake value the downsized Chickie's a into are a driving deals outparcel. and we XX and putting are tenants portions adding again, where exciting off Burlington, Good a with redevelopments, in income, Shack centers and a We are broader it’s Pizza Marlton and previously tying a or sprout Food have at as underutilized traffic Be & LOI of and like we’ve or that MOD

opportunity. excited double-digits drive very often those the The in can investments. am deals returns outparcel I are that that on So, they we smaller and about are

shorter and duration. relative overhauls the to entire returns smaller center higher So, generally complete investments, of

in to the we So, in the that underway. broader repositioning addition expect center see do that anchor to continue have redevelopment to us

how you space? is so but XXX that demand outparcels, or mentioned for the So type about of

standing have was What, Brian? underway now as and from really leases over mentioned, LOIs XX start a I we and that

Yes, Ki pipeline. the management since just board XX on we will Bin, I had came projects have in add team the

mentioned that seeing, very continue the tenant We’ve added of XX%. are redevelopment are demand, best this as as As returns we well at also & we to upfront. as of mentioned you do this we’ve to that to QSR concepts, good Pete's seeing because the local Chickie's down from some uses But number strong multi-tenant demand interesting the restaurants, buildings ramp resources can. we we we up see accelerate did that restaurant Jim are well in for Marlton a as other

Panera. drive-through seeing opportunities lot a like are We and Starbucks, from tenants of

to space. as So, in that demand I that we have about the good really continue plans, feel those we accelerate

that’s demand-driven. even Yes,

our stuff will project fact, all pre-leasing going in are pipeline until shadow small that some In our moving the of actually pipeline an open occasionally and think we we a pipeline we that shops we’ll I is things be redevelopment it’s not is that’s the that couple it entire the move on done. and healthy active demand-driven are forward. our done seeing in substantially Frequently, as in leave

I that’s which mean, the stuff REIT. same of mean the is I lot not your is for case is point, every Yes, preleased

you. all right, thank So,

bet. You

with Yulico is next UBS. ahead. go from Nick Please Our question

erosion the but expect the And this good what we the seems like repositioning to the main is It a redevelopment looks further for should bit as come you drivers [Indiscernible] Nick. for just decline? Hi, pipeline? be morning move into deeper on down, and

are it’s No, mix I the adding. a that we projects of think just of function the

average range. of by mix. I think, can the driven to to continue in XX% Nick, deliver XX% it it’s X%, you long-term, us Part expect the turns weighted to

tend larger redevelopments single-digit of to have high Some the yields.

Some than of as higher can repositioning much, the be much deals. can outparcel the anchor deals that and

yields in Okay, but commented do redevelopment clarify, and may on Christy’s you this question, include the uplift? you response to to expected just impact from have those occupancy thank

highlighting No, they Thank don’t. they you that, for don’t.

giving on addressing. space give a the return, are you we return that when we are that redevelopment we you So

So point occupancies that the example we Marlton. in hold for if at is are being and sometimes there that, shop conservative a small we’ll lower center,

from So a and and that range we’ve the a rents, for to that new $XX $XX range, we sprout example, because new small taking see shop can great to there start $XX got in the restaurant tenants outparcel. higher

that really are the center. overall we a those are are transforming important touching. spaces on report we And we point. When that’s we reporting returns the returns, So, those

on The have We only don’t have activity are in but time tenant not there we it betting are another we we’ll space the comp. speculative if for addressing yet. is a

Okay, thanks.

so, XXX still months? recent BPS most shops case to the uplifts in that And as XXX small

we balance the cost really trying Yes, is, size. strong importantly, that trend and centers tenant our are the demand has we are continued and of environment, and really this matters what the do able to in in to backdrop occupancy for of in reasonable which growth drive through follow

Thanks, Jim. right. All

You bet.

Todd ahead. Thomas go Capital Markets. with from question next Please is KeyBanc Our

Todd. Hey

Hi, morning. thanks. Good

that of on when temporary, drag Just begin much getting some point do next become drag sticking might somewhat you it for a to you some that space redevelopment, attributed larger that tailwind? occupancy I offline basis and impact with ready the sort but the that over and that become it’s holding of or redevelopment. year to may and realize sense anticipate narrow any how XX

to Well, at quarter expect get next you to of year. and well level we look, the are in fourth activity, going until you which a we happen to of that really specific But, level that Day. spend our give ramp of Investor drag the as you deliver, on stabilized know, increases guidance as

investing which the intentionally are that we near-term growth, of is So, cost in the drag. vacancy

these pool larger sort of and thinking about buyer between asset or asset guess, deals? Okay, characterize the you sales that I of for in the in and what just can terms are the dispositions more then, you versus in And then, portfolio assets? pricing seeing quarter gap on some execution broadly, single of transactions

Yes, me it Mark? Mark. turn over let to

a Sure, transacted had there. at interesting the plenty local funds buyer, a we focus with nationwide check. one advisors, real last the deal What’s had REIT. from and temporary couple We the both We exchange is, interest private had size fund pension of relatively local equity really questions a of we operators, in this, when in given quarter it we look market matters small sizes see you volume demand perspective. the smaller and today about deal some estate

a pricing size continue that including us on these to portfolios relatively we We because like in an With equity deals which in in active respect just – of in have to and secondary use. great the deals, come to or buyer push really versus demand which saying, deal portfolios question we in small which largest I like of one-off about need had the market was on check Maryland, assets – really to very both because some asset been the see just to deal done, sales. markets versus XXXth we was get so those markets and those a try MSA, pursue allows miles. assets an in Greenriver an which really one-off one-off basis, great the continuing we’ve continue on to one And your the some see had portfolio pricing the including Sun believe Rising saw I X,XXX MSA ten in people to

that our as I with But you some it’s to thing as assets. could drive leasing was look, work, And efforts gains regional harder teams think do right. to occupancy right it’s the imagine, our those

in In drove $XX and up remarks fact, that million drove to XX% we my prepared I an in additional mentioned value. the occupancy as

of stewards we focused being So, are good that making capital. on we sure are really

team Okay, and about continuing any like putting you like should disposition this during quarter activity? be this, markers of timeframe being with mean, this to the transaction sort terms single periods or of in sort of pace transactions I we heavier maybe that able execute out in but there goals, asset is this some around I or mean know could the of right about then, given think aren’t any I

because net Well, be expect we we haven’t sellers over to and we of assets should trading reason in really our goals are with single process. is and see can we in of sometimes a balance and given get opportunistic to we higher in you our it’s going quarter, to of to long-term remain frankly, continues very we that level pipeline it’s that net But, you’ll on those lower an low assets. where meet our think level. and guidance of you’ll also important got out But assets markets acquisition pricing between and allocation a portfolio always to our we into standpoint, requirements. these the get and capital disposer that asset realize At big that properties consistent grow dispositions don’t it’s that spread the out have only we be sheet, environment And quarters. asset be because to continue we’ve next those an redevelopment, are where think that a several from a IRRs and see we that reallocate sometimes the hold

that And acquisition. an us the volumes are you seeing see that able have you’ll need be side doing demonstrate so, embedded what probably and smaller we’ll be upside to I on make think that growth and deals to to to we

you. Thank

You bet.

Donnelly Jeff ahead. from with Wells is next Fargo. Please Our question go

Maybe been the to $X.XX I and guys. circling Good $X.XX revised averaging come you just apologize different back, I quarter earlier guys guidance question, think earnings certainly redevelopment $X.XX implies which FFO year. $X.XX fourth a out the way, to is to just the this on below morning

through year FFO remarks we can say earnings back-ended grow we about, guess, Just progress that given might leasing on to redevelopment that guidance as the be should also quarterly not I XXXX. year? call, be the next about it’s late Jim to presuming the of being your more in fair your drag think QX depth next

on Well, few we asset ramping dispositions, the certainly redevelopment. obviously things as to? quarter, is going you we of have are want not do look but Angela, one a on, into next the period, we next giving which guidance

a the that a have and was third share in had embedded those on guidance QX well. that been quarter Yes, in a share in number things is we as the would just about penny would which wouldn’t be the be the which income a penny termination lease then extinguishment, gain debt under QX

that tier the question the repositioning but earning given waiting that might apologize, your What actually assets, that some already opening And where seeing of just you shares how imply maybe disruption? you missed lowest I wouldn’t are you versus I of looking repurchases remarks, this shares, just returns monetizing? widening at, the guess, the your second repurchases on the the surpass a in maybe left gap now repurchasing your value are are are on many but I between

end product think the our I at that is per growing stream of of the a day cash share. flows

that strong in and the be have care allocator to making maintaining expect foremost But very focused have a position to first to share that to a stay single capital, the and As therefore, today of need an of but anything are ourselves penny which announced sure tool. we we repurchases we we externally effective as and not in We that to – don’t as could capital remark we consider and we tool on certainly underway yet, and opening first, put to tuned. very certainly, promise as my redevelopment a about But we make fund are compelling sure said what you yes, balance of of longer-term taking that be what can we upon I raise deliver tool see, that sheet box. that we we where think that’s continue the in have do a come. a

Thanks guys.

bet. You

Ford with The Securities. next ahead. question from is Please MUFG Karin go

morning. good Hi,

restaurant? been you that It’s Or on at to food the obviously are of picking the topic, casual fast remerchandising front? there. efforts, important back your to Going Today an are there that was right many about worried matter out it restaurants restaurant there article the just too Times a is and saturation pretty

growing. what years on portfolio, Times still that right be and can the restaurants this trend are you to very is concepts going being gratification, think do the picking underrepresented think the is I But a an quick but in dining several which instant fact right as and traditional very impatience have have really that’s shopping for Brian? concepts I concepts in It profitable, we struggled. article center. for are a about is which very They pick overall casual serve the concepts in and the of are highlighted important unsubsidized anchor era

just best add back those at that opportunities thing in fact have we the are operators, do we for in are space. upgrade in those the looking casual I’d and our or of that to they merchandizing portfolio the spaces terms get dining that Yes, the some of we other user restaurant

are our new this we mentioned. said, keeps we coming and Jim quarter, feel MOD through we this of Shake at and every Shack as exciting the with Jim quarter concepts, are So, and underrepresented terms like month team restaurant uses in – as

in continue So demand we there as and feel we these about get all the good the of pretty the landscape front that that’s breadth of to out opportunities. restaurant

because always Yes, we be it’s imbalance we love restaurants and the that that can an at business more with all in question, one, that look I particular, that’s volatile. know and important a

So, that we or capital me, class. as think class, the towards very are being a we the in it, about tenant think we as the operators, that excuse rate higher about is of there that put failure so doing asset we mindful that fact

through I can how XQ brings rent to NOI commences just helpful. missed X.X% walk That’s And And growth components question, in other midpoint are you us much my the there up quarter? tell of guidance? that. at this, same-store for you the that the I up Thanks fourth us what in second X% thought could from

think executed our XX% in quarter. of look I the not mean, that at of commences I late Yes, I say total pool have leases yet that think, in pretty of rent would most of the fourth sort quarter. if starts that that around commenced, you commencing I

full move going to benefit see as we are the XXXX. of into You that

we probably sort QX, top-line were on the and a to decisions again with I lot ABR in to the the impact. to QX relative where dates of think, is in terms to with on we In that biggest where and expect of should other be that’s to we biggest commencement pipeline, but that accelerating redevelopment make rent have may going do have respect range

you. thank Great,

RBC go ahead. Wes next question Capital with from The Please comes Golladay Markets.

morning good everyone. Hey,

stays consider versus Just if now the stock at looking levels, pipeline quarters, could forward pipeline? if down the stock at slowing at, few yield you buy it the a redevelopment stock, would can the the plus where would X you call the you – for, selling back the nominal these you yield buy consider going

It’s a good question. really

are to and our a time, lining we We here, really traders, I’d are tenants deliberate business and long-term Wes intentional could and operate pipeline think like can’t and very we that we doing has redevelopment running a but love the lead that. where

we and shops, the absolute our we compelling and the get are at small that so, the the we it’s the centers, yield. incremental what space return, from we look our we growth then And returns look of Again, the follow-on when related reporting reporting to balance even at that yields higher the from touching. to benefit when we company are actually on are that are than only the in

share. So having that’s a for maximizing like cash about capital flow important are an per tool focused any few think ago, allocation company and said repurchases that, as share I growth talked questions us I on

tuned in traders going and we terms properties are because, that mean, and Taylor think actually a the trading selling that But didn’t that we long-term don’t in and certainly are – as trading. portfolio expect you that don’t team we the stay the to gap and I debate between the but was about well be a nimble us don’t at our again, where we quartile on selling know portfolio So, looking overall had where are worth I there. whole. big see our I where we of But But markets going today know, of Kentucky is in bottom if seed demography, County. have Campbellsville that. you critical are we am as not of to are mass we internally that’s

as am growth share. but for going and of tell kind I and about redevelopment are it’s too, tool arsenal So, that hey, higher as the priorities, balance per flow have ramping cash liquidity not we stewards sheet, but you you that of doing think capital, give quarterly we’ve can and maximizing of responsible of it, got in nice to prudent phenomenal hard guidance a the and job finding some are that I specific these team to assets is on work. it’s

you Okay, is be to I guess, maybe to safe one? were and that neutral buyback the if leverage this assume would take accretive

to be safe would incredibly assume. That

a Okay, thanks lot.

Our Please next Morgan. Michael JP ahead. from with question is Miller go

little margin of could initial how Any answered, Is I or XXXX? Angela, the not drag about basis been headwind just thoughts that but, of like I comment know, just for points specifically, that redevelopment terms a headwind? asking more most comp? it at on questions guidance significantly color curious magnitude a why the accelerating could am on on of XXXX Yes, XXXX that? your much hi, but have have through the and a in it be

XXXX business think Day within like talked we to the mean, guidance context the XXXX about, out you Yes, early course I preparing of plan what’s give about in overall full I at played the are say, as would December. we over said gave in the about expect about original Investor basis we of redevelopment that XX that whereas being the drag results guidance XX we basis we that on when is be points. said we to the XXXX, had redevelopment today, QX, points, drag

redevelopments with ground, to spend basis runrate to Jim’s but order echo, terms think the of it’s that comment sort the to the us on incremental getting XXXX that points. XXXX. in reaching spend just really of impact I’d for as too been that’s XXXX. quantify point also deliveries redevelopment and stabilization But sort from of respect pipeline in-process earlier XX completed in I late in of that’s of a well course about of little and So seeing over early benefit for kicking the magnitude,

it. you. Okay. That was Thank

you, See bet. Mike. You

go van Our next Please question ahead. Dijkum is from with Boenning. Floris

Hey guys. ask way, just, different a Jim. question in maybe I a

the dispositions fourth today of will for the you close what in your quarter, In do contract expect have on you quarter? that fourth terms the

me contract a for We lot a of pipeline close, all be as under will efforts net under seller. ramp it’s more from have when $XX our and in that got behind continue you that, when over perspective contract million and but we today. it’s sit a timing really a to tough little look to those with at predict pipeline consistent the bit We’ve goal but

before is that amount, Great. a maybe have a do target debt you you buybacks? hoping more this start comfortable, or And you feel amount to more are but you share then, debt get pursuing are debt-to-EBITDA to to for Angela,

mean, I with the I we’ve made we pleased really progress think are Yes, already.

over ramp debt-to-EBITDA just that it and progress, seven set we the little last think real have activity even the the over the was I we we pleased standpoint. we Today, from momentum continue six times. recycling to some at capital time a as joined, few eights, made quarters so with

redevelopment to to also continue Jim a importantly be to sheet, asset balance of to net As the we continue down said, and some to through naturally number later matter a will work surely through the just get see what are in as see beginning of its mark-to-market as into you we the in moderation some no go And going portfolio from a continue those seller certainly amount standpoint to proceeds, EBITDA sales. But will not way you think the as growth. I across well talk the contribute result we that as of EBITDA. about going opportunity just harvesting part to are metric both as the growth leasing XXXX, pipeline

range the not which low plan, but to, the that a trying of strike are naturally standpoint. It’s always into in And consistent committed forward is to down right with a Floris, serial as we’ve balance and time. we think we a debt-to-EBITDA period be to it from about balance we what move reasonable migrate number six

guys. Okay, thanks

bet. You

ahead. Metz go Capital. question is Jeremy Please next Our BMO with from

guys. Hey

Hey, good morning.

Jim. Hey

quick one. one Just

looking think some you contract of the markets and just here, balance we asset therefore sales out quarter. opportunities you between willing asset sales the allocation hold you further and have the fourth or redeployment you shift from the back But further the are the what beyond that therefore in further and redevelopments in look with towards may as redevelopment? much sell to the I’m if be with you about – sales really on softens little a asset and in looking sales balance in the As to development

good really a question. It’s

asset we allocation came to and the delevering. the market leverage the strike as company also capital have always that amount in et neutral free fund activities add it’s on cash as growth this that to recycling right chance or we One markets, flow just the look is, into forward changes most And on through in basis, struck appropriate and balance that, that of the can market different underway we we are better about I make because things think as cetera redevelopment produces the of a fact, dispositions while we it’s activity we of cash that me leasing the decisions. that, whether really trying and company capital then the than was a fund flow,

evaluate right a going think And about IRR capital we asset decisions we those compelling seller. As hold the to to pretty what be by are really to disposition incremental that’s going market now, forward. that’s

And that. are in the the you from me offers financing that are is of one buyers the just, terms doing, Appreciate buyers your out last or no? there putting in the transactions are in requirements and in relying

are who haven’t In last I insurance banked financial the a transactions say a working general, that buyers folks we using in as on, would with some at who’ve contracts, the buyer look use that with transacted in couple had CMBS folks at, you’ve we’re money. but bank using actively quarter, closed debt, with we working we contingencies we folks

financing good size. by important, do and to debt continuing buyers that’s think are we deal financing, driven for So see well-priced I

for size, by to take million, $XX bank smaller and million, that’s the down. free that size of some at look $XX a million you when So, deal $XX check small piece

to continue that. We operate

cash And size, and themselves. reasonable you the with market with at looking of rents but assets pretty mean, occupancy the costs, assets it’s our the I flows, relative not are to is. it’s nature only stable reasonable

you well market importantly, in assets assets, that markets, just have to, right, sense. above seeing think rents that softness but that are in-place is are disposition As and also where alluded for larger Mark has I makes the

want As good focus or towards upside. private, you your capital see where public an investor, to you

struggled that larger frankly the roll. size asset so, And had sales underlying have a of lot of and been the the to rent nature due

color. guys. Appreciate Thanks the

bet. You

with ahead. Deutsche go Our next Chao Please question is from Bank. Vincent

Hey, Vince.

XXXX which declines your guidance, everyone. just current just What’s remind escalators same-store shortly, occupancy in as the terms the be of can points provided NOI bankruptcy average redev? well? of will XXXX of plus know guidance, drag basis Without us curious the morning expected from are specifically about asking exclusive what XX I good is of you sort Hey,

within a say redev the Yes, XX basis same-property range, so basis I you bankruptcies impact. obviously properties, about just themselves the was range, XX XXXX another the by When about between were redev the a out that, points, strip would XXX, current two point XXX. over

Okay, and escalators then, the average today?

obviously The are across something we or XX escalations we’ve contractual continuing the basis XXX lease making last sure course in higher. getting on just been average number about new activity months It’s to XX of the that over very work portfolio escalators in of and the a focused are terms points. our

get bumps in our signed in and address glad terms new Brian you we Yes I'm this continue see the this embedded to we in point, momentum leases. great specifically, rent I’ll let fact, raised more but of

deal growth we’ve because pay we highest so tracking and you ever last it’s think of our something I pay that our once, that that’s environment are course of have to over at team again. has job a we’ve in never signed that’s had something we good the I XX% term speaks for for quarter, really demand team you Yes, the our of level among has of very be been the this the the mean, had done in bumps and on been focused rent to it properties. since to that

to to been we’ve we this and able are it in that be So really number that it something continues focused environment. on get and improve

embedded marginal two. a on then, rent that in And we growth are basis, seeing the

and to accreting focus are on growth metrics overall intrinsically. continue we are will in-place we the much rent as the as portfolio-embedded that we ABR So, accrete it we overall doing

are We that manufacturing growth. not

since just coming is for tenants the there just stores we then, closing to or pipeline, out something to proactively guys that replacement – certain that expirations this And about sources potential numbers not tenants breakdown much as is certain and increased in? I is tenants or the thereby okay. ramping come potentially on from maybe way even it up guess, the still finding how Right, if renew think question another just work a of of side, up. redevelopment versus to then replacement near-term choosing opening you buying is

for including them because reflected we space situations drag we tenant of our see the to in alluded it in a of are instances, term that, something Look, or don’t bankruptcies, we great do of then, bulk that but proactive coming of are up renew And take recapture getting is, intentionally where having as is of we bases box and HH that where returns. cost early lot up the better. not you’ve pay an and on we to, back, opportunities marginal makes some the old we the it open to and these a most course

ramping of balance we the probably are what that’s offer. So, a from doing that

you. thank Okay,

You bet.

from Our Santos O'Neill. with Sandler ahead. Daniel question next Please go is

should quarterly quick question. Wondering like my still Most but lease a quarter. that taking healthy It Thanks questions be have looks new been down have pretty Hey, one but we were the if for good this one they there given for from is range good looking quarter, my spreads. the of a I morning. answered, on prior volatility?

phenomenal Look, Yes, done and the rent on spreads, asking number as before, is on new the absolute don’t created. total new that. of for lease thank a the I’ve on leases just leasing XX% said focus volume and new focus you

– important. lease other. as represented it that see quarterly can’t When on look which month at you by range, I look one we level going in particular, is one the XX forward. several our can’t look also at look what But and which have XX new past, And really we phenomenal look you one the a two are or forward to quarters spreads XX deals think volatile or trailing a move you pipeline and as see can metric, quarter need forward, back basis, that’s pipeline. is our way that trailing you in our you I at also is said going you phenomenal at in it see the into

you. Thank Perfect.

You bet.

I back conference to This Stacy concludes would the closing session. remarks. for to our over question and answer any Slater turn like

for seeing joining We today. everyone look in Thanks at our Day you December forward to us Investor

presentation. now attending concluded. has for today's conference The Thank you

disconnect. now may You