Brixmor Property (BRX) 13 Feb 182017 Q4 Earnings call transcript

Good morning, and welcome to the Brixmor Property Group Inc. Fourth Quarter 2017 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 Stacy Slater. ahead. go Please

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

$X.XX morning, $X.XX for to growth per Good nonrecurring and you our which at this thank Stacy. same-store full you, everyone great first With of year and another of report pleased thank quarter includes FFO items. full I'm team. Well, extraordinarily share for joining X.X% and call. year

these provide well a my outlook. our as Following results as Angela deep dive financial will into remarks,

deliver how to volatility, growth. our the backdrop drive on will we to balanced current continue down into However, market I'd durable and to and how we plan have against like of drill

sector leasing, with where our to leading year into continued end. start production Let's accelerate

cash a feet which our of spread the X.X merged was deals, new in the productive and renewable we million executed years. quarter of quarter For XX% few past

lease were of XX% you new trailing terms or new $XX as achieved productivity spreads firm. over created also TIs importantly X.X% those our we've of and of quarters, at over bought, the We over look spreads rent our total million four declined and When lease not ABR.

ABR terms anchor average market million $XX.XX below in renewable new for quarter of continues of record foot. our we new ABR a leases Our and to and $XX set driving quarter shop set and rents this this in small $X.X also our over XX new deals record new a place with which demonstrate was ABR a

work counts are and that growing Our there sector, weighted rents I million first, intrinsic lease store of looking drive to X.X in environment allows stands their for us importantly, are leases retailers with portfolio XX% a average feet that that a over at growth, and terms three me versus We platform terms, at average on rents. quality drive tenants live. million environment. all within that better on options to with this are near remains better this open-air leasing investment getting centers square about better grow ability where Folks, proven pipeline What the sign how this XXX ability over embedded our X%. robust open-air intrinsic only $XX productivity. with containing comprising focused pause ours tenants leases X.X% increasingly to primary it forward like to real that your you underscores believe strongly factors; outperformance? is better located on measure the our apart of a put, closer to rent continues and our to it growth believe in And of based Simply and of only allow that the not ABR. this better begins estate improved moment customers

covers over success with XX,XXX our regional net they we're team and And over these accounts having national XXX retailers' stores. Our share national growing the which importantly, tenants market year coming tremendous estimates new as expand. of over openings

Plasma, example, the store Maxx. for for for For at with Fitness openings deals House, XX% many, X% X% Shack, Burlington, for of also Kirkland's, Yard we've XX% are we and deals, Sprouts captured Dave now XX% this executed & with ever Market, three more. [ph] X% and Panera, where many Busters, first LA Roth, for [indiscernible], T.J. HomeSense, new for Lucky's We've company Shake

tenants our outperformance driver main they counts, than profitability. costs these four-wall focused and more to The grow is while occupancy looking ever that of are second are their store on

and to locations for low growth. allows us the still tenants in proven place best very rents compete effectively average while driving Our

on I've ABR this in in tremendous liability As environment. said be many a our calls, high prior place can

of Finally, the Overall XX with trust these landlord of signed spec enjoy the growth, landlords prototype in difficulty XX therefore through quarter new the the retailers and is leases, and smaller and for record timing competing. restaurant Fitness best a retailers, X our opening. [ph] growing delivering deals, in retailers upright apparel of these means home greater industry. stores demand new certainty execution, record share have and the We outstanding which the we outstanding track many trust planning in which grocers. proposed not position are new track That only it's to deals, also X evident further further both an in critically specialty as very X evident largest our out market some against

this Some new leasing should smaller Louis shops Sports box. follow-on the upgrades tenants that strong albeit in the these again Sears St. small [indiscernible] were backfilled centers, replaced last former bankrupt of on substantial visibility Arapahoe replaced growth. in Houston Authority that that included impacted Each drive in of the is and which the Denver at our quarter Gordmans, the Crossing format Burlington in specific Fitness LA box the new wins the

drag approaching XX%. we NOI us Speaking the XX space basis strong of bankruptcies by spreads rent results over recaptured on points the we year will this backfilling with line, have to continue which estimate

dropped the out centers as to and from of our at all locations Kmart ABR today now reduced from Sears top XX XX our as XX year total the we've of and Sears Importantly, of is tenants XX the bps. beginning our below has now

level element as strong space, at accretive proactively space well both Our productivity this our plan, leasing to as draw bankruptcy recaptured business the of we've property continues recaptured reinvestment. through second

quarter process we which the our X%. to added million incremental of totals yield $XXX projects pipeline During average now at an XX in

Again, quarter schedule and under of that return creating incremental of adjusting at incremental also delivered not we we our from further over very return. team been proud assets lease included growth I'm repositioned projects without delivering original ahead value is how XX% shop that $XX rate. Importantly, these of we million capitalize an as million budget in small expect have up cap now. of at on the during $XX pipeline the value the

in the we continues Our reach shadow steady $XXX also make expect target the this highlighted we progress delivery of spend million our grow at as to pipeline year. end million in of which towards to of $XXX supplement annual to

the Investor center of Beneva As being serve. or Westchester such us in our these communities each projects, Day, towards moves we at of the we Mamaroneck Houston, our the as in Braes Village Center Heights purpose discussed in Sarasota, new of

average operations in our the standards increased and scorecards planned of third implementation forward. we've paid and of has new in dividends closely company highlighted of driving our has the reducing with aligns and centers tenant over of of coordination and at function The between The with occupancy tenants days. Investor substantially in as Day appearance reinvestment leasing our built average XX property downtime significant element and our goodwill terms lease

team in area. and with of return $X returns capital The forward of success at on low recycling fourth by driven million invested our tenets. rolling driven look centric pleased tenant lighting three with in teens. continued to assets the Finally, I'm execution have key planned cost growth over and this this LED we our our great element very the programs out is year ops

prudent to The first key sustainable growth. is that is delivering harvesting

to can retails drive to the in is first on clustering a long-term investments outperformance for disposing the assets markets respect discounts continue $XXX with leverage be is million ABR volatility included which don’t the basis. dark our XX programmatic NAV second the long-term to the dark vibrant that public support strong we neutral of plan, The fit assets three proceeds seemed of third tenet or find in for With the nodes and liquidity recapture in boxes. Kmart quarter

in income or of our And in were for of centers on Tuscaloosa note demography, News Austin current asset and the strong growth, markets that single place remains at bottom cap Minnesota, the and pipeline average Alabama, bottom were assets like importantly, Kentucky, terms track. operating portfolio our in quartile ROI rates these X.X%. the Michigan, Our Newport Virginia. We potential. Glasgow disposition Shelby and exited Please

our Day, coming internally also focus cash fifth on building balanced as rents business average asset below-market importantly ramp and critical our we completed of Day funded Upland with at asset plan our opportunistically liquidity accessing three assets focuses only extend growth in quarters. Venice that successful to element $X plan Also the with is of opportunistic balance acquisition December through and mass have EBITDA limited is drive repurchases, debt As on window repurchase sales attractive with that potential. a California, million our expected business and generated also Investor discussed the sales, markets perspective unsecured the Clemente grocery San and ample we we we market flexible Because in in launched centers million in in a our current significantly sheet harvest with flows $XXX and final of share our center through those Florida, submarkets flexibility. growth. ensuring activity California, Investor and to sheet of strong program. we completed our and balance NAV strong coincident of a but continuing our valuations The from Because weighted

flexibility the and asset value reduce We weighted to average at to maximum level. of cost drive continue leverage the have

now over strengthen I to detail drive our capitalizing purpose delivering and some delivering. in of Angela? per provide importantly In next plan. context centers our continue historical where as $X.X as plan, our debt in Angela, will times, this each delivering now cash is we debt-to-EBITDA this revolving on billion towards summary, the are and on year facet striking sustainable We we serve will forward team and from plan our we execute our has communities credit a this more balance on to underscore, company outlook our have five results have reduced started facility. results transformation X.X is tender on of and a and the current the years expect being who to on for our also have sheet drawn That nothing environment weighted-average disruption our our share. provide flow to of how our growth of

like dive fourth on good per performance share to or highlighted remarks XXXX deeper in fourth and was before strong share outlook firmed the I'd for FFO and for into the per the quarter Thanks in XXXX. a morning. touching full his that provide $X.XX Jim $X.XX our quarter year.

or above despite was expansion noncash cap same bankruptcies adjustments strong of retailer reflecting drag was additional growth which our fees, range and share net was FFO by termination Excluding guidance growth lease per from activity. our two program. X.X% income the top the also X.X% experienced NOI growth redevelopment last midpoint the quarter to XXXX as offset smaller for fourth over the rents full-year XXXX property the net for in Same ancillary rental percentage drive property meaningful NOI debt and the disposition original as during X% to from made but addition we recoveries across other years anticipated, the our enhancements platform our and tangible from line of re-accelerated items. we that of contributions results In and in contributions continue and all to have quarter line XXXX slightly

NOI We guidance XXXX have property in at provided FFO the day we've same December. affirmed and investor our

downsize or occupancy throughout first rent downsizes number which Sears, at and quarter recovery Downs of at in DeLand and the including expected terminations Kissimmee be Anchor Florida. and Shopping [indiscernible] occurred result Orlando, a Creek half as [ph] proactive impacted XXXX a Florida, in a year-end at Los Plaza XXXX base by terminations at Dark net of of and the will termination During Kmart in XXXX Angeles, as in Office Depot first Ventura Northgate Hunter's an Center an

Anchor and executed repositioning as active been All of with these are centers now new redevelopment leases projects or vibrant fitness. including users specialty already have grocery

leases We annualized have rent weighted these year. with second at on million executed in across reinvestment XXXX to value of of $XX the base strong from half visibility commencements the anchor approximately rents online projects pipeline our enhancing coming

expected property the of NOI the below result, re-acceleration year with our the guidance of our back to first range half in be year. a is full-year X.X% growth in X% same As half the to

As points of our assumptions discussed at basis our guidance activity base basis or approximately Day, which for NOIs XX XX expected point of to during Investor XXXX. is incorporates bankruptcy detract rent

XX As of one specifically impact XX, it end. had Us, quarter December we locations of disposed relates with to location Toys the subsequent "R" at to

Our XX in per believe below-market. we remaining only locations place have well foot of which an square rent is $X.XX

while ability we note to also a and lease also each Toys six of We embedded at removed acquisitions remaining X.X we've shortened of adjustments Center options key as long-term future we expect Arborland next our in asset. million Arbor result near-term with the of "R" and cash that space NOI rejection term at two the the of Michigan adjustments current based and flow we a the to growth ensuring acquired six approximately preserving negotiations upside opportunity with place Ann space over to the control creation In that the In we detraction early will rent rejection Us dollars the on in status value in lease I XXXX. Arborland, rent the the experience would on locations the case saw this one the which locations at drive of of meaningful a of component XXXX in saw accelerates the years.

As highlighted, are liquidity of key financial the we us strength balance remains sheet and entering and XXXX priority a with the Jim substantial for flexibility.

Our billion maturities and facility of credit we $XXX over next debt XX revolving $X.XX undrawn is have months. only the million

repurchase the with continue that, to and activity to sheet for proceeds disposition to will stock balance We the operator strategic cash further acquisition projects significant pursue reinvestment our portfolio, I'll over Q&A. and and accretive across solidify turn utilize And selectively our the from free value flow the opportunity. call

[Operator Jeff ahead. of Instructions] Please Donnelly The go from first comes question Fargo. Wells

folks. Jim, question morning, allocation. a Good just on capital

rate. of and your portfolio, assets your in You noncore accelerate you think initiative that the a argument said reduce at concentrate to redevelopment, laid cap north should down The since out Day your then X trade, monetizing growth, I shares risk. Analyst think fund XX% for are know you I

more expenditures feel least temporarily how Just redevelopment at aggressively these do on shares about repurchasing at levels? you incremental shelving and favor

sight end Jeff are more it's know, at much our for right, repurchase you the growing fundamental and opportunistic the flows level share. you to Well, a day us we that of cash is never product lose per

in returns So also to redevelopment attractive bit growth and that a we're And very be future redevelopments But delivered, see assets. we up of we those earning example that also with for those of setting pipeline lead tremendous creating longer still forward. tends going you incremental million million leasing you projects that $XX productivity $XX we the it it quarter value. and delivered the this time see in the allowing, over that's think drives

towards on said, to ticket difficult moment's price think where notice the a is a it's is turn where share shift repurchase at emphasis we to on much relative are and opportunistic see repurchases our where and expect the we us levels higher basis. announced share price the off is. and So certainly on we share With today at share plan the based today than that acquisitions

perspective, be about the think going acquisitions, today best we As not to as and our stock how from fund responsible we be in think and if want. it. we're redevelopment the we Jeff like We're levels by do of is we acquisitions you ramp us it a ATM prudent to a reverse about expect going of certainly clear I that of market certainly so terms buy sort our timers and indicate think to mean while one

rents a having followup, income know one valuations the are open just forums centers in and if stock their in general some just talk more the values. you asset seeing are or get concerned? there where assets think market pricing Can out is people reason in you we you're in and comfort. maybe figure sustainability all I of the comment, of trying placed moment are to that on where contrast and maybe and you that you is the feel Understood, resilience be with spectrum questioning assets are where markets property types implying will, about markets a mall air to and of B see

to that are clearly – great and I and comment continue in these minute, want we we very know, are You our see what not closing really point the our quarter you we're get to we've We're basis. year-to-date to on consistent We're him that make and secondary an achieving really Mark what markets think assets on highlighted hypothetically in talking long-term in do and I'll that we that that many cap rates plan. that that. are actually cases markets valuations both about strong for I want liquidity with hold about ongoing in to talking what as Jeff. know execution in did we assets not the we're this a tertiary And done underscores

As assets. pricing Day, at weakness Investor for have from the an we asset alluded we larger standpoint seen to

assets In for and as $XX demand. shop of $XX such somewhat, million, the $XX to the you grocery importantly $XX also we great are Investor seeing box know are with above we're that anchored centers and community typically at continued as mix small highlighted the million the more Day million which fact, ones type Mark? but assets to we're million volumes decline for transaction smaller selling

about months of a we've very continuing liquid yes assets. over good assets last closed I and a the question, I our it's for mean active but say see we're of market couple so sale Jeff, XX the Sure, to would

of amount a you and less in level what in different is in of a saw my time deal I level sorry, have know, smaller and happen really fair we in land. of bid and when smaller difficult equity liquidity deals small over checks, I really liquidity be the spent highlighted and I over in see think market, that's B-Mall lot larger of really would quite B-Mall you saw end is larger wind what happening previous different was role the size, the think matters more we different this this as quite really that I'm you checks. because seeing Jim less is equity we're

a you see today and easy continue We that or these market are liquidity. so have you frankly see deals less you are due there think I really those out to bid smaller movement underwrite larger debt for rate just when vibrant larger than see just some deals those much to to seen frankly are cap

majority One of interesting was New of back ICSC, the to really currently of meeting vast about I centers. back that as had to retail focus buy the at the the seeking market really power things stable meeting is smaller the with on the assets look I new capital were York a

space open range formation X I rates air in and seeing air reasons it rates, open retails stabilized what the on lower saw formation apparent spread think power like some looks of space we to quality. have of retail in space we're X the in for cap Once capital grocers the centers the or in and power anchors years. cap particular I last and power capital is in because between couple feeling depending the so really really think the you're B-Mall is Given than center center over the which different again

From into centers. our as as buyers concerned less rate cap translate So power movement. bid perspective, like about are it seeing larger looks we're what today not for

had we a sold [indiscernible] offers there. pushing the terrible over price and Road bidders outside we of we multiple power example, XX had For center Hall

own into mentioned, anchored on in strong demand grocer get primarily the markets assets. just obviously pricing and past really Xs that equation the really you As you this can grocery not grocery gets that's And strong a small when for pricing really this markets Jim both when portfolio continue those markets, you we across and markets. like quarter. cluster achieved in side It's large down own of strong a we is across great and see to few that clear get you it's

Thanks guys.

You bet, Jeff.

question Please Bin next ahead. Ki of SunTrust. comes go Kim from Your

morning. Good

morning. Good

Good morning.

place, on them were So that rate a cap on or they noticed basis stabilized a not was just in of asset X.X% lot full sales, that occupancy?

but obviously place that in Not the Ki seemed it. would which dark to and dark be Kmart it's excluded from all were Bin have boxes skewed

so guidance, months at And thoughts and I and retailers only know incremental been you context on all like since Firm's that of that you new basis tying mean expect points maybe portfolio the up wrap XX things maybe basis how risk Toys“R”Us and points XXXX it's rent itself provided for but you into BKs [indiscernible] could because [ph] is from it two I us? put for that any right? maybe could you shaping track the around into Toys“R”Us just are Mattress guys XX kind And

what Yes, is basis full in terms all we with timing for remember no of points the today here substantially what importantly, that below-market. in believe we're that but and we adjusted spaces have line weakness saying we're expected year though retailer bankruptcies And been addressing are surprises. the that and is XX

we're $X what lot of in space rent space. know, a us that which Our terms back. of more is a toys backfill very, get Angela we in some gives range retailers compete it gives as for And when average generally, us advantage occupancy we to on in competitive which very optionality highlighted place you cost, of focused with that the seeing is boxes low we do

You Angela? know,

anything to echo surprised to Jim December. would are said, out generally evolve I line continue in think think date everything that things expectations I us. with the has in and we I don’t evolving laid no Yes,

I The continue in dark same-store my XX in basis be it's basis I over it's I really to quoted the NOI. and going included prepared and environment. remarks points pool bottom on was know monitor you XX we the NOI be a would it's number of which quite the actively are than impact of bit toys, the the smaller the and line Oracle terms on be terms a in won't forward bit of for align note Arborland impactful can points, the obviously just number be there to prepared there, points So the number land bit in little over little pool on not XX basis included quoted you line remarks to on my ally same-store referring Arbor little going which part bottom just a to. an

And I'd and operate continuing of We Ki just in this say tone year. the saw going that's a into terms momentum lot great Bin, we of year end of frankly the as

optimistic the up So and we're cautiously guidance terms we appropriately that current believe of environment. the in end where for given year reflects that we've

that closures portfolio, [indiscernible] for year? figure in your into is Firm, conservatively Mattress retailers part a reserve announced it you for like for Do of that and XX that how those just So retailers like guidance? or do your precisely haven’t that

that year think and our we in capture environment reflected what in you're that's it this not [indiscernible] tenants what plans operated. and particular have might had tenants location outcomes getting great utilized and list in productivity centers composite particular our as guidance. for mentioned you to as what a and I at get stress for improving Well, then better relates back and know are And we allows in doing that us because but where And and to the take rent job to in with that's where the back visibility likely team it them doing Brian those better we're is we're important of test done terms with think which retailers the of a a you and it's likely of demonstrated really we're outperforming relationship the what process only great space we come a door ahead in back. portfolio the to launch of different which and be look our it the gives

wanting So a anchor we're taking simple environment just assets it's the whether or our a redevelopment, or them, you're be lease. repo and which upgrading seeing this simple

have particularly portfolio just would add outparcels. high that I some the Bin spaces Ki and matches of from and on the caps, profile we the are Yes locations these most in

do pretty at So and been strong. the them if locations demand those get has when back for actually we expiration

thank you. Okay

You bet.

question is Please next McElroy Citigroup. Your go from of ahead. Christine

morning, good Hey, guys.

on there four over following about tenant you time. of ongoing discussions following about sort had stores specifically you're know remaining boxes scene, retailer just closed an Kmart exposure address you've of Just more on provide of QX, the the Can thinking of with continue I update Sears but gradual in along regard opportunities sort the and your recapturing sort to just down? rest the that multiple how that wind with

Christine, hey. This is Brian.

for we've we've have done $X.X our a number in importantly out opening the more that with it's $X to midpoint XX, in us I from date date. mentioned in generated with think ABR. great X point our opportunity to by million tenant I XX Sears to locations remark exposure what've IPO done Jim ABR mean, list and to at projects Sears XX. We've number since reduced from million and incremental our taken

has been a has ours. team done of the a Sears think great tremendous I partner So, job and

them we a on we’re with of locations. discussions our number as out to look remaining in exposure So,

what those out really from on feel good looking are the pipeline as our timing about like a standpoint boxes to and looks We redevelopment our we execute at ability them. execution as demand and for well

in with forward. they discussions we continue good a overall be continue be them So, going to partner to and

we did quarter don’t the we opportunity great that’s think that have and we retain. we if three think you Yes, And that opportunity look have Christine, to incremental also by I much balance XX as of mostly team but this an you progress over on the we returns, tremendous boxes months. particularly where last in the great know get

transactions, under and dispositions more be following year-to-date? you can have the acquisitions Okay, further thanks for completed the to was did on sense you just and might get you today us the contract know that tell rate for a what on immediate say that, you just for just and also pipeline, cap on dispositions up question what then average

of end in year what yet, that are have given last but we closed about that we year-to-date haven’t it’s are on we $XX actually only we million. line guidance giving which the with at No, saw transactions and

what for sense no today? So, might under contract be

of the plan. tell for Day that up I'll lot the Christy taking towards we our Well, we and very assets are talked we’re and additional believe you remained Investor I pipeline executing well about strong sale at as

a get thanks for trying Okay, just Thanks. timing. lot, a sense to

You bet.

Evercore next ISI. question comes of ahead. from go The Samir Khanal Please

points, good Angela, around know, looking can Hi, that? at up the by I basis provide color but flat expenses in you they quarter XXX were recoveries morning. guess were you some

the some We Thanks recovery ratio question. real from during benefit the estate did wins our for tax Samir. benefited definitely perspective. appeal that refunds quarter quarter the and Sure from

Is of complete any on should that more we happen showed to roll quarters of in up that here? kind the further expect or

We state trying make appeal we managing expense the sure to real and effectively. are on that aggressively tax science always

move that and embedded I certainly think forward guidance. next fully we they into __ are or additional you from refunds on had that hopeful as wins know working we something some year in that’s upside are that not

the we as achieved over the course next year. are So, they will you of recognize know those just

I at now, put second regards Got it, we in of that $XX to anticipate to million it liabilities any are expenses is, whether trying from guess that? settlement mean seemed and trying the out was question I me just our point further am NAV further then to I understand, figure I know or in insurance they any should this there

additional clear is case this what need think settlement. see I particular to liabilities at in and based don’t on No, we that there any point

thank great, you. Okay,

from KeyBanc question Capital Todd next go ahead. Thomas is Markets. of The Please

buyers you latest bio Question be morning. good Mark, the and CMBS on thanks financing context assets of demand just may that capital pool working or all at the that discussed for lender changes lending the the you are spreads of within for all? in availability there the LTVs any in read what’s Hi, for the at or at underwritings the with, the all are

relationships. so local availability Well debt certainly at continue focused good and but we as pricing seen haven’t we think rate a we that’s to debt on bidding, and bank sign. foresee robust interest we've us or CMBS And movement, re-trade no banks outside demand the the pricing, assets from see I are looked other on

closed to assets, dramatic with recently yet the CMBS any debt. product we haven’t market change but using so bid for finance have see our in We to that seen continue better

just an little commencements, can touched may think was Angela, that delays in actually I'm bit, annualized quantify some just seeing just you the can that fourth the And you update P&L? leasing if quarter, a Okay, moving you of curious there? then you recognized the rent in much I how and over be quarter and on rent that provide to rent last much hit how quarter commenced were in

what with just tenants growing, we the Angela happening about and talking lot us and of first address we forward terms the and importantly out, it part signed me getting of are ultimate tenants Angela is to referred the commencements ramp rent signed associated what’s what’s between and paying deals XXXX. million were that that the see of is Let this deals those happening further a signing $XX signed alluded visibility gives with in rent in as leases think point, redevelopments. I to downtime that to year further related that we're lease the of so costs but later

and standpoint to that an out. stores I alluded giving better that my gives retailers think basis remarks us which further us as from visibility And planning further it's I out So, interesting compete. further are from to in as

fourth can to you that, out. This further pushing delays after commencements out terms planning in was to is the we store and get again, their rent these days but on tenants with openings. associated the of In back call specific further aren’t or and more new tenants more about ramp quarter get what execution really the

thank Okay, got right, you. all it,

You bet.

The ahead. is go Please next from America. Smith Bank of Craig question of

Craig? Hi,

of do for target I sense XXXX? leasing shop you. a year-end had small by the wondering was a thank this you Hey,

several given haven’t what seeing great material are hundred on that anchor guidance we reposition points and our positive We any momentum momentum of line shown occupancy the basis in but targets, we've increases a delivered of within there. redevelopment with projects in delivery. projects in are that are we've couple historically years we And importantly, good seeing

to to they will improve Craig, think those the make way. simply leasing community centers and improve importantly but better serve. space the to center So, I that sales And at this of and better that we to in drive centers leasing tenants by mean metric the drive make do occupancy, the better, I expect productivity continue right year not that them

our really that’s focus. So,

to we guidance giving year, So, if expect while as and shop you we're not will that do ramp specific redevelopments. small repose these on to we continue were delivering

Okay, and can running around maintain it looks have like the renewals you in that in been the space XX%, under XXXX? XX,XXX

as recognize are names quality we feel in we position that Jim to the a good we value adding portfolio, to like operators. Jim’s point Craig, absolutely. are in the to went further. position tenants drive of like more us bring and through the We good we particularly were in that feel

you. thank Okay,

You bet.

is Morgan. question from Please ahead. Michael of The JP next Miller go

hi. Yes,

Mike. Hey

this the but that due it term apologize what’s missed loan on plans coming can Angela over to that’s going I refinance is as $XXX or in I million, about July, there? talk think Hello, I you

for the of amortization in secured about $XXX We it’s term loan. is, and scheduled on million maturity million maturing do $XXX have debt $XXX of about million on Sure, little course our of year remaining. out, over debt total other further a bit that so, the

You is is when address our maturity billion, know to that, later which completely but I it multiple year. would that do debt obviously execute credit would well under due from ways we probably certainly as also we of as if comes facility opportunistic asset capital remind $X.XX markets combination on the to were to some know, say, term that I be have we we and sales you downs an a window there are going certainly revolving you watching would so pay it’s loan drawn this

that was Got Thank it, it. you. okay,

ahead. of next go Brian Please Capital The comes from question [indiscernible] RBC Markets.

expectations? can how regards with have have the you to performed relative the tenants to talk reserved bad Hi, about for debt, been categories

Sure, I than a has rate been course debt yes, historical has think on what during run of ’XX basis. from a obviously bad our been lower perspective the

course and as that recoveries, number it a had term previous was historical at versus basis points longer points. of debt have and basis the XX the during The looked really ran about basis the year. percentage talked points call a over we've total lower share we I calls total on XX XXXX reflects you about revenues XXX of If bad XXXX run between rate including

points we’ve As the on say monitored our and into but to that perspective expect do the that as tenants don't forward, so expect we've aggressively from it of for I of and think first a debt overall number retailer sort previously we portfolio call XXX XXXX environment. terms specifically necessarily our should relates note are we and did have expect we health as should of the the you to it's been within as XXXX, wins level environment the Investor announced XXXX reserved that it XX We aging and had written-off so of basis Day announced in which at deterioration the course XX points a denote reverse or important to the pursued and far year. we that like over to going had and look of in the XXXX front debt collections receivables historical more be wouldn't basis move into the I'll bad the level any

reserved of the time had remember, to fewer one items recoveries that for important just would reflect but really sort in been it's think specific past. I of

kind time seem there within you than so tenants better or perform certain expectations. that of or outperform categories Sure, yes any

identification at retailer every relative that there perspective. previously for from and conclusions receivable specific are balance are category to amounts many I we've tenant category to reserved a themes our so across think perspective, a wins know while certainly looking don't there to don't portfolio draw any I had really the processes draw specific from some every

Okay, thank you.

go Vince Tibone The Green next Street question ahead. Advisors. from of Please comes

lease the color I Toys“R”Us appreciated? any were closing that not bit Hi, put good the more there just out color be for modifications morning. stores actually would little on a more you mentioned

is Brian. this Sure,

leases Angela a did that excited to particularly has remove signing earlier flow Jim options, rent we we for the reduce have, we number co-tendencies, anchor tremendous. remarks, in and As a fuels the her market trade while provide close we asset. Orlando mentioned we $XX purchased any the control we're very term, these some point been assets of at short that of the term XXX land we're demand locations we're saw that cash to so foot spaces those far the that get Angela’s we basically about these are maintain to when mentioned a on a relief any at so roughly opportunity upside as and able

of get flow so and plus forward really execute quick could those to place. order and cash in boxes them on So going we made we control these deals these make that sure we keeping can plan the in on that's

be the the boxes, any leases, boxes those portfolio. That've to on modifications near in modifications Toys“R”Us are or the that are to are any there accepted ones going the were those just Right, there going to in leases the term? re-tenanted stay

these in controlled as of place, so just Yes, it and many we market again much as I while to think short In of much don't let's much goal the choose, point, sure as spaces of could. looked make as was pick Jim’s a leases we these put and this the term that really able entire and it as portfolio as I think we were control wasn't can. if boxes our maintain we get and at we cash as flow we was to

the that did sort time the for that think be reductions adjustment. at were There some no any in may to any either early sample differently. term Yes, gave rent going XXXX. of we or We we and are where rent to full for early term our ’XX frame at point leases or shorten assume

you. Okay, helpful. that’s Thank

You bet.

there just ’XX? bill direct appetite post space or seeing you've any or tax one on then seen the for notice behavior changes any you one, have And of tenant impact passage in another quick the

in in that Not competitive ICSC now presence do term more certainly benefit going a us additional how tax at today in the think York we was we put as they their new to to as did a and concern were and people terms about in we what stores, an me, commit like I growth leaning to versus bit investing to into tax finding changes. months ago by human month law stores maybe was to and of or recognizing seeing just several driven really last also to saw in yet, environment get that at net XX not there maybe is is which to their today. excuse a the their was we talk this the this compete changes. willing than sales. an investing New really the tax more opening capital it see compete we’re were the store ICR openings on plans of what heard being and I and which of based conference difference more a to lot was was in lot expect larger the more and benefit way opportunity me It environment increased striking But years and really the saying appreciation retailers that an to capital retailers in of their December into environment that tone their ago for change store integrated think XX I there

I have. That’s Great, thanks. all

You bet.

question Jeremy comes The Markets. of go from Metz ahead. next BMO Capital Please

of discussions you’re now? with that right I going it’s of back piece and a maybe an one your they if to guys, of us seem but issues wondering on kind not seem they huge highlighted you review portfolio the the can be Southeastern was having I give that just what of some to be know larger update given to Hey Grocers, list, them proactive doing peers through watch going wondering business the

what relative We locations look weaker have that we will discussions are had the survive active where and few we had as with productivity good in them. productive, with and a think long-term do at our have locations aren’t of us we time to we gives locations position that assess those pretty guarantees to also them to we a which want and

making shape. that I with that but issue the we us dialog forward-plans I location will So like over with certainly but and for comment what not understand feel really a sure tell in by to ongoing big been locations, I we’ve really are in of we’re respect pretty all location good you them that their can’t terms one

Okay.

some back outlook you expected XXXX So in of get spaces sort fair? none of your that for is that or of necessary to the closings

for in our is unexpected think mean but at where our That’s is we see guidance. with Southeastern do fair. I room it encompassed in guidance today I we have again grocers least happening fully some what

looking remaining that. And space in anchored two, And deals more you you then seeing some I doing the mentioned broadly, box absent of point any the guess, here net for shorter no then are terms appreciate rolling right, next just those many tenants term in the of increase in or options? those are larger leases how renewals Toys, with year with shorter All this on at size?

on at and new weighted average terms. mean look see we at that held anchors is of average I that pretty they leasing did we held you lease our capital on just we that on and shops firm have X.X leases rollover kept tenant both growth our small those that which so balance drove tenant, mix results and and our weighted We’ve mixed at years, firm we XX% our both

emphasize you You you year can deals more without after with schedule we've to just we’re look expiration lease about that our within naturally to shows and trying talked at options. by would what what I What expiring we and as have lot than supplement before expires. the get a

a the after underwriting. them in up we are lease capture value to included more how those I'll because we than toys box lot we’ve beyond of it the a real particularly boxes in terms where with our go opportunity sits those is redevelopment see thrilled opens get referred center shorten and the that original So positive to and to as and inherent

should So after continue leases and to continue ahead flow get the expect that the us of upgrading solid can you growth. to tenancy portfolio, good we proactively driving upgrading so cash term

Thanks James.

You bet.

go Please Nick is The Yulico from question ahead. next UBS. of

Hey good morning, this Nick. is for [indiscernible] on

come should like XX% believe bankruptcies XXXX sounds slow? are down level from so we new the replacing if driven bankrupt primarily the expect with by you said so the to lease spreads, new it I tenants spreads, on lease Regarding XX% regarding spreads they

the pretty new of in years the spreads leases. the consistent value and done range the if in think in of over it terms look a Look teams been mid I portfolio great this for XX% job has you recognizing again

as our forward, feel of ability bring we So to leases look very we to confident to market. deals

a the kind with deals. our of our long-term but obviously very changes to where and is and the Now opportunity ability on tenants basis of quarter-by-quarter pool quality rents with happy we're those drive

we good about feel So forward. pretty going it

Okay.

backfilling backfilling a in long-term underscore the that relevance with we is will redevelopment take this really space, think We'll exceeding my I of and self-funded less sure way point our drive we exceeding and to our important, want Yes to repo space not just our at really spreads we about take looking And making remarks, and this returns. as free work overall to spreads. our our able put again pipeline flows, we're center. was and in not tenants attractive really is that we’re portfolio and the cash the to make that importantly and think that simply are tenants in growth incremental capital pipeline, back very these to

to growth environment, as to not So the have well. it that the that ability to just do a today. basis we sitting way we're is this inflated capitalize why ABR that center underlying on a not But we long-term not chance on underscores have right on drives sort in the of replaceable a grow, but instead mark-to-market of in static unique

Right, thanks Jim.

closer to we're $XXX the would fits expectation bankruptcy that into redevelopment you with in shelve these the those level capital the there through the strong a risk plans but entering especially about funding or there's how is troubled reactive there there, and the plans And vacancies? focus curious so and the Toys redevelopment growing the on and work million built pipeline that the that you if necessary putting anchors with to clear I'm potential on Steers pipeline other proactive a

below sold make capital of to incremental our was hold drive of to two capital. I didn't want we’re and three opportunity think IRR Why? the an it. our or putting as work we we've great where with on boxes cost great We see returns the demonstrated returns, we to Kmart

and it back right recapture you our it we're more long-term coal that is of the was of see excited overall space we And increased than a the coming doing the how less with million I'm sweet term Jeremy, activity to up drive pace be with I So on the think delivery, the basis we're alluding how long-term I states by level million is in making to ramping for is incremental to what terms I get going important growth, year, don't going furnace after. does in at of as the the redevelopment drive just getting but which those of provide investment how our it decisions certainly we're about annual expected spot will if $XXX states we're longer end of $XXX into to to value. spend

Okay, thank very you much.

bet. You

from Goldfarb of The Sandler go next question is Please Alexander O'Neill. ahead.

about the you talk morale general results seem that over would the be for questions the could you overall despite first the the weeks, over one down on me, the stock fact last just team Santos Dan XX% Two how keeping it’s market posting, doesn't hey credit? the been guys if team is XX Hey guys Alex. positive the you are you you of guys from giving say the is motivated to despite how much morale and have

what annual delivering cheap we're the the if beatings shares or on morale terms awarded I of the incredibly that Well, believes the results mean plan the think driving we anything improve terms of the that improvements and No, shares continue. get is that buyers. in I truth we're of we're at team seeing in the is will keep and centers the will telling value team an basis, we're the and on I are executing team and

a So in look it pretty say long-term at that standpoint from value. a good we instance, this is

that all It importantly has do been to I've but our in unparalleled. So about a attract talent you ability what kidding in the seriousness strong. I continue and aside new morale worry remarkably think to remains company, something and is seen

we're in like feel a spot now. right So good I

one you helpful deploy your stock stock common to that's then how from gain and can buyback? dividend asset on of first sales the buybacks, much quick Okay, follow-up shelter via just

good it’s question. a Yes,

paying the minimum. plan In terms gains so or, asset we been last have This effectively before of the or and over statutory out game, we've not losses talked basically that sales ended return small year we about part on component tax transactions on of XXXX. the lost of a have because did we just we of in decision of year pool up closed a based during capital dividend the the

you amount could probably forward, the as to to and or may gains to that there will able such small close some dividends Going XXXX manage as we're the paying the gains. be execute out portfolio, some of absorbed a the current amount. are have we look of going be I trying across that be certainly within we losses. to gains, have But tax pretty We gains the remember way, profile overall look before minimum we're that some to but think going losses,

is that look basis you and gains issued on if XXXX the gains the book IPO given our losses at far simply we've you balance and for you tax at timing assets. Yes, in acute the a recognized us they've the of been slightly through as we've that where from programs, see is in basis which these see gone those off not less can

to flexibility continue in the monitor given basis obviously think perspective have others our closely will assets. from but we more tax a than do So that I

you. thank Perfect,

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

morning. good Thanks

you're back the priorities, price with or still year the to plan the disposition up this decline capital the know on in volumes stock Just allocation given you and going of move wide to but you're increasing said stock? of you buybacks, a us the at volumes all you've kind emphasis more about, in sale, acquisitions for the taking I range your think in putting given are

planned to that stockiest what price. originally it's sense volume environment with in acquisition of really standpoint from right we make where track given and this our you're a a on We're difficult and

close obviously some may hold our that So towards pretty liquidity, darn standalone year. or is XXXX mean is we acquisitions adjunct a as may clear any to we very I that center of stock emphasize looked our San strategic at be think sense We decision won't attractive have the sheet priority our year balance in really the allocation making to think we're stock make focused about acquisitions however capital We've and versus some been on we is such be that about an I'm but during of the want so our just XXX use today. but is stock IRRs pretty our it as always very our instances in acquisition where disciplined making much bias about over makes in acquisitions smaller decision on capital it's basis appropriately at easier. that where as acquisitions allocation We acquisition it's proceeds going make doesn't make makes and with that we're to opportunities it Clemente confused, hard point. sense last that we it sure, reinvesting that there in

trends activity months in months or have you been it's estimate same-store had the but last two XXXX? the since My put retailer impact NOI out the I that. for X% for leasing know growth to Day the second Thanks few Investor X% question only on any the

as then elements and seeing I year going and and success No, through I today mean to great leasing alluded we're our the into all momentum good with plan. of

you. much very Thanks

You bet.

from is St. Haendel question next The

Please of Mizuho. Juste go ahead.

A rates acquisitions cap you outlined the year-to-date that as I curious for could sold you was and have disposition XQ, maybe Hey, good and were if would, morning. stabilized here occupancy rates if couple you cap for the what share the what you the in Thanks. guys you cap well? quick the expectations ones in IRR rates XQ, if

on range those high in were IRR X the Well, expectations the assets.

seeing existing don't underwrite Clemente actually as these for average but around you are in if next Investor we've assets like originally San the underwriting, instance assets think XX% me, we X. what remember to California I Escondido Clemente yield excuse our experienced what we're to and better and so we're committee better are and we've so we've that unwritten. Day, reads our from the adjacent seeing going Similarly assets rents the at are early that include we're at that we is Arbor what had based three in than deals And we seeing we San the some just outperformance in weeks to was Ann relative XX% acquisitions and than or these leasing the outperforming that we're of of in Arbor what what example underwrote. last to in highlighted couple on in of in rents

a as how trading. stock we think of our in underwrote, with performing decision decisions all we're today. the relative different but terms and ago So we a those allocation that incremental pleased in then sort spot, about several months are to where is those and of assets what appreciate around of We're also the we assets capital acquisition made

think Certainly, CapEx then if some ’XX beyond you sales would maybe how maybe bit we to maintenance and for that's some certainly. quarter, in item fourth XQ during that the about line step up And and for tied you as up jumped here? should color curious pickup a fields asset

past the accelerate disposition around forward. really XXXX level it but think year It in million that's expect to where in should $XX did, we I wasn't related exactly quarter, you ended we've is which I and the and the guided in right think effectively Yes, fourth right going you're the activity.

accrued fourth lot and Haendel really it’s got A quarter. completed in done the and timing. those projects of Yes, for were

it. it, you. Got Thank got

Please from go Barclays. comes ahead. question next Linda The Tsai of

look expect you change be your comp the XX increased since dispositions four you different? portfolio at will position overall do in or your piece to when of the May Hi, of just size three or years

expect terms we've capital growth in is larger you'll what don't particularly demonstrated. or assets in those sell AVR We be continue already and us this similar I we portfolio we about as that markets over back did we've Investor you to and as about have of and in NOI some do our we see plans at but a Day probably as line done shares with recycle slides to that more do because of either the the time XXX refer assets, in think to highlighted, into smaller assets talk assets I into these

from see expect you a getting size point So, make to other that kind not recycling can particular term this four plan. is I the and capital long of hold of point want that is I to I that's a fully one Part very don't The this three what of in see any allocation of we're granular think strength think decision. perspective it years. to balanced is But We is as appreciated. portfolio. investment decision capital to an an company is part asset good to a

in trying that individual that of because with outperformance I is achieving we're the can share. decision terms not the hold the think which much respect big and objective So flow cash and flexibility of be more and in to part company as term we of long is to to of harbor supertankers goal per our out move assets sell in strength

cap a in So markets time, last I'm done we've executing that that's at we it's a rates but XX% we've XX kind in think we to that the the trying portfolio on capturing how pleased progress trust it made of about one we're that the hard execution versus it. we've really the me do executed months at so value of basis. with we've doing, exited that and XX% it in to another believe

seeking your much and though, in for at how over the they're Mall the coming seen all years that centers for we've the average and Thanks occupancy retailers couple the ratios from the then the where is mall has across it paying given past industry? centers by the the cost of space at changes lower changed being Delta and your

to five on just in it know foot. it's in depending cost air mall be center, a When occupancy you XXs, The was in bucks you're mall. typically the a can open six an the

so our of of the a and costs third So would when that's a true. can pay occupancy you are a quarter in mall. would depending just pretty it third mall you occupancy costs a what that on basically you're a twice, Mall, mall in But a to two be our pay a in are quarter what in held

you. Thank

bet. You

follow from MUFG Ford a Please ahead. The Karin Securities. up next of is question go

Hi thanks.

ones. couple a quick Just of

that supplement items, guidance some are didn't forward? page on the First I see be provides going this to additional last the side, usually it the you quarter, providing of going disclosure

that did to NOI. namely expect rent to been signs have a the and we Investor just supplemental that the the We guidance and analysis Day that on same well move disclosed to results property components No, of provide commenced FFO so page, of go as effective we on the did that overview, page guidance we same we guidance the components what move page net and basis. provided not are at three but on forward FFO property the

if this, caused the the in million you and mention impairment quarter? missed I what did sorry $XX Okay

really, it was point moving some also just equation million point from direction. portfolio basis just big the closed I it likely earlier of during pool Yes, we quarter forward. in gains other impairment against recognize a at both in and Jim's primarily small same at were some I as backdrop sides no the the of and the if of nothing, $XX.X look impairments that move see there we To quarter dispositions of the number. book the million that would of to you're was all mark-to-market and gains during though time mean outliers note there you that did $XX.X was that

you. Thank Got it.

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

everyone see us today. many joining over Thanks of next the few for We’ll weeks. you

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

disconnect. now may You