Brixmor Property (BRX) 1 May 182018 Q1 Earnings call transcript

Good day, and welcome to the Brixmor Property Group Inc’s.

First Quarter 2018 Earnings Conference Call and Webcast. 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 first 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

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

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

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

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

I’d entire by to Thanks, gratitude execution expressing for to balance and comments the fund. business our another delivering deep outstanding good like Stacy begin everyone. quarter my of morning funded my the and Brixmor soft team yet

we capitalizing value importantly, flow team’s and in we on the Our earn and performance what are how unlock to this growth and cash sustainable control. drive demonstrates environment embedded

Let’s leading of the million million again and cash XX.X% average leases We X XX.X%. which of look cash of with new spreads at feet facts. feet over at a volume once included delivered spreads of renewable a new sector leases, of

since both churn purchased CapEx was held that Importantly, and not cash growth average steady.

a place shop executed leases terms also record of feet few that of in set company. the in also XXX,XXX A with rents the to of you new grew rent records footage $XX.XX, and square for small we in square anchorage anchor average $XX.XX our We quarter. an of noticed also

growth. setting our are future up Importantly, we

not is months, signed million which generated but $XX ABR Over growth over yet ABR million the signed of X.X% we’ve our XX leases drive new forward These confidence commenced. total of our trailing or and of $XX outlook.

up significant on demonstrate On space strong tenant redevelopment our both we unlocking not XXXX, longer-term and execution until centers commence our we further don’t for bankruptcies. are rents fronts, setting are or only those of XX% for fact, growth. recaptured In they from value,

we completed. where been centers repositioning redevelopment realize fact, an has or to in In anchor for gains occupancy significant shop small continue

expect so backdoor we that these the generating Authority can boxes of actively to did we outperform Looking have NOI forward, as regain of XX we control with faces year. toys this the and and Sports last leases quarter, been

As I times rely having or have the measure drive we many real apart. we that a believe that ca mentioned stand ABR you regard, to on In growth, estate your inflation compression. without quality investment based rate before, to of ability on

Hopdoddy's to the We others. Bar also among to bring Valley great continue as Prince [Indiscernible] Burger portfolio, users many new such market

share to the continue we strongest in with and today. While better retailers drive terms market-leading industry the capture and lease intrinsic

pipeline feet million XXX our with remains leasing forward robust over and million over of $XX X.X very Additionally, leases comprising ABR.

X.X As plan the of $XX at a drive million with without to achieved sustainable the long-term $X.XX of about next feet which options over to over the months out expiring, last leases we we rents average years excited average compares growth. four even XX rents more our of get anchor look foot,

return. to drive redevelopment reinvestment, we pipeline added our projects at incremental continue million also leasing accretive a strong Our and XXX X% new active bringing as to

with Importantly, XX% $XX total eight projects of we a investment return. also delivered a million at

on XX the of goal right, of the our million. XX annual million For another accelerate to million, value of and pace we continue reinvestments that’s close XXX standard book creation quarter, as that deliver

facility. we proceeds only recycling year credit quarter market billion Iowa, very to out had Fairview contract to acquire of reducing At cap maturities as liquidity feel strategy. another where to putting Hermitage on million million at XXX on and for to being to long have attractive on such our assets XXX in volume leverage we and drawn Illinois Dubuque our ours. as also at last even Tennessee. hit We exceed under year. We to raised of assets Heights rates, and this their We year-to-date, of share in call Closing about ability remaining more and recycled We X.X cap sale end, of XXX continue goals rate pace such see repurchases. greatly term a markets and this us nothing demonstrate our year’s not good an X.X% attractive this continue dispositions million a capital pricing core average our

We also during our of reducing we recycle In recaptured view stock repurchased a share on $XX.XX, we XX Expected capitalize for quarter, prices of the trading NAV leverage. the X.X so which shares doing, price million the at while capital. window. to also nearly of plan was open to current low common continue below importantly as discount, million

FFO As Angela, guidance. year and our reaffirmed we same-store also current

the with plan. our of I’m in the of results XXXX we proud day to investor that which our at in short, on remain we’ve In own and facets in are current outlook, entrusted with. plan Angela? what as we value control and results team been the capitalize Our deliver extraordinarily of quarter this plan. we importantly, disciplined delivering track now confident all opportunities with achieving underscores detailed our execution and our very that remain we ongoing continues embedded our across capitals December the we

accounts, XX comparison recent we months. from FFO difficult points driven XXX proactive successful accomplished basis realization Base year-over-year recoveries over of which Thanks, total was share the NOI despite in guidance. expectations provision in highlights written leasing first revenues, provision and same Jim for on basis drag further unlike and basis of activity and based offset line proactive the during the of was announced morning. quarter by termination. outside last the attraction prior in productivity quarter to We’ve historical was sector approximately discussed and The our the same-property fully basis quarter rent the negatively due by same-property of termination points with of growth doubtful XXXX recognized growth basis XX growth the both last of which the growth leading you bankruptcy period. primarily a $X.XX a growth property first per XXXX reserved, quarter the impacted points points. gross NOI longer-term off impact rent in the was contributed and points previously quarter, in was associated rent to good level. XXX anticipated and strong The XX FFO XX base affirmed with bankruptcy current approximately by with activity our Base

acceleration weighted On over we property progress enhancing year. million progress to As previously our $XX for space, impacted rent the last of second expected the call, of on indicative continued during half. openings XXXX, and highlighted I and the our half pipeline. in were you reinvestment second These not of only an this earnings year and the guidance communicated, quarter’s commencements the assumes bankruptcy also growth last the addressing same anchor NOI are but value making

such projects to but phase the down, Sagamore the weeks driven [Indiscernible] including progress commencements it projects redevelopment will also and by relates significant a village, XXXX, in village where to pool later completion just in through Messa Plaza of of our growth accelerate this until year, opening Specifically we Gateway expect meaningfully pipeline, both we sprouts summer. at few this Center, Park first the fully by and rent process at be stabilization assets and as of we stabilizing within the Ventura as as Maple not

moderating in associated prepared second year-over-year before being the in with addition, the half In redevelopment year. office will quarter future second the drag the of for peak currently that are

the excess that and year is redevelopment second the to next Food hhgregg of of and important While we the the moderate growth of lose [ph] vacancy sight drag also an on and stage note the year. portfolio bankruptcies setting it’s to in relates begin consideration, important not to as we this in these continue associated XXXX activity fact finalize center our plans as to beyond. including the for with at in growth the the in the majority XXXX, that would carry execute will throughout the it also XXXX trajectory wave of our of I half Gordmans Ultra will

the even third the drag we though realized overall half comments of Toys expected from were sold an then in At by leases of fully the the moderation the fourth until and be Since in Center Us with not lease was bankruptcy Arborland second XXXX. the in acquired in expect April. toys the XX a activity in portfolio. our As we do quarter, had to associated Brixmor the result, is January "R" impact quarter, Galleria end

for a in through quarter. of the As bankruptcy outcome remaining end not or process. the still way second rent remaining locations leases increases eventual working we the that timing today on have we But are have our clarity all locations the towards perfect their at assumed XX guidance we result, that the do had

today are business cash and generating flow our As revolving significant approximately plans after facility our credit sit on undrawn redevelopment. overall of we of flexibility execute into remains We deploying a billion with dividend liquidity, to of are accretively we which $X.XX million sheet facets priority. key strengthen our $XXX including balance we

dispositions XXXX, repurchase from used be run with million that, repaid maturities can the significant it’s be proceeds continue reduce a of disposition I'll proceeds turn that pipeline, in loan rate even of majority the execute call required level Q&A. to term enhancing at any to over operator will allowing our remaining maturities Accordingly, at sustain the our of stock. which to as As the to spend. on flexibility penalty leverage worth be asset us XXXX are we a and annual will to our only with only debt And noting result, million deleverage With for comprised $XXX time of small amount value of $XXX of sale.

Samir first [Operator comes The from Khanal Evercore. Instructions] question from

– into getting last Jim. are and at sort categories up I guess folks – Investor We’ve picking out mean and becoming morning. growth know XXXX about of seen factor how few are of of X% Good over of back the of fair view months X% got your in does growth as to there I concerned more more Hi, NOI? same-store that amount you that, you Day laid closures sort that to increasingly you’ve a toys

of right that of You appreciate and generally very types actively I’ll we risk you our we’ve to question. know, tenancy years of tell look the you at managing which now, over to. at couple I are the last exposure reduce have categories to confident the been our remain composition the and

that you top So you our just risk. in at naming some see if tenants, that look that managing can a tenants, movement reflects real on specific without XX focus

better about doing, as XXX we leasing rent what of XX which that of over million that as coming about back in yet we commencing space and lease remarks when mentioned basis are out we a of which between XXXX. able look its we are widest value, get tenant also until when unlocking I continually look build rent get is isn’t my it that the today to you amount new in year it’s the for at So that again, at about of the that points, do represents not tremendous so and gap factor XX% commenced, to at signed

a the which and I’m risk releasing importantly, I team proactively very the that industry, relative are So concept in moderate, gives the with leasing, well. think at tendency, shop replacing really benefit relevant really and proud tenants of as been small to being in are to space is how about as releasing as we about it to less which proactive small when us you alluded shop has relevant you managing better also others side a I that increase a more one doing, momentum in follow-on,

does on pipeline my compare guess sold in of you how where contract; second is of rates light have interest Okay, million on would that the in you mean to question first know helpful. sort be what versus that’s then the sort and the maybe pricing I XXX that’s gone around in of a that quarter I

It’s of liquidity, actually terms the we again better our the visibility getting that cap for driven strategy. to but good particularly in what’s assets by in pipeline, very aren’t mix core that the the feel about it’s we of And are our rates.

consider know exiting you my in remarks. that the as So highlighted some markets of we I

right finding might the in that of some future, just for those back be and value our at but now recycling We are compelling. our acquisitions, in right and shares reducing in recycling are leverage that shares now point liquidity as good course into is you pleased the see too we assets we’ll

much. very thanks Okay,

bet. You

question next comes from with of Craig America. The Smith Bank

anchoring these I other obviously kinds not and there XX another am plan grocer? so backup I morning. good of for report, the Southeastern and they your top can that Well focus grocers, showing just XX is with What wanted about on I’m to centers. anybody the in replace worried made grocers. I’m leases as Southeastern much your the sort ABR you than

yes is Brian. Craig, this

range As that May, of credit the pretty and perspective, we within here on approved get a that to mentioned, we to and This to a bankruptcy expected we the and back we call, so year, terms in comfortable feel from had as two have are be you are last that. so guidance it we locations Southeastern, prepackaged is guarantees mentioned about expect we limited exposure us. in

thriving great and established the upside some other actual of terms In opportunities the some in we there grocer the been trying traditional have few that them grocers we opportunities, to grocers value, are categories They feel other space. that these out back. home been about get opportunities, expanding traditional users are locations, so pretty locations if good were to look those the for there opportunities; we’ve And in there’s ultimately time, rents. from seeing this and are basically are and in marketability of

So pretty overall, there. opportunity about we the feel good

a or you be public Great. or somebody? like expansion like meaning are Would the Sprouts

mean share to interesting would interesting point is him of or in Both this both an to would operators and both locations be are be greet seen on used and traditional specialty have specially who that like in giant, gain call with. meaningless a an like grocers the additional Publix Publix infill Operators to I you pleased things expense somebody point with environment have on is like been sprouts we’ve we we’re and that would operators disruption seen we and say. are discussions some to the finding one markets. operators it’s say it’s it have public I I

start pleased it’s with to here been year. things we’ve pleasantly of the the So one that

you. thank Okay,

Citi. with question next Christine comes The from McElroy

To XX growth a morning occupancy down just start, rate despite that around about good basis will year-over-year. – sharp sharp space lease drivers do still environment. everyone. shop us up remind grow runway to have point XX% perceive your your and the you of for main occupancy peers And of tougher that the you forward. be many going is for Can and level, continued Hey that

and significant about the in growth than small as look repositioning, there’s Christine do let shop we’ve and Yes that. at what lower it when the that see basis points XXX XXX points basis opportunity We answer first a for redevelopment holds importantly to me overall. moved of part occupancy you

on we driving the So meaningfully overall average, have just what in us the is and pool Brian.

growth what expect bring point basis by points the we as Yes, and XX centers occupancy had tremendous been months, point we to as And we of think we a potential Payless rue. To do the opportunity we Jim the so us. XXX we a that more of also we portfolio here. XX basis basis that points the for shop making drag at growth as below point growth average have tremendous small last see is online, But XXX and that similar from is in XX driving see drag. it’s rest about I these basis main that in redeveloped, projects to we are close still as look

number? into in without from it the And see X% much range a me, of half. to much deliveries, we we the comment should then NOI reaffirming of same-store so like through Okay. you then you growth redevelopment half, space second know it redevelopment just comments your to sort in And the shouldn’t to team, X% get sounded expect difference as the it just also Angela, second some in up how sounds impact seeking a sense had by you with into impact just like move offline, there on have as XXXX, to offset sounds following but you we the and wanted that is your a you’ll are remarks redevelopment about little made like that redevelopment

course the in this second move seeing completions. the of stabilization and the redevelopment as we deliveries I as that Christine, terms in year, which before from the you going half of moderating in future mean I did call through year, know thanks those you and out second see were in expectations supplemental remarks its half at then pieces I projects to mentioned projects assets most the XXXX, of the the in Yes, and well. those can think Both, from but completing from again drag the be in start share, year, current quarter you page second prepared will stabilizing I also widest the actually year. point the is of significantly But aren’t over some but significant my on are that the of as the you’ll XXXX. stabilizing and see growth commitments and from from till of that

we of In quantified terms In thought ABR with comfortable point I XXXX, day had are at still we XXXX, be we very impacts XXX that to would think of basis redevelopment investor that on XX the level. growth.

you. Thank

The next with Sandler O’Neill. question from Alexander comes Goldfarb

questions. Hey over I two good there. morning had

just you can comment Angela, stock the on First, activity. buyback

that based thoughts or that do you fund. you it flow so guys are to did are on to debt sounds you down, you buyback give mix, and really it can re-developments this guys, You X.X that the have little up, in income selling to billion more repayment, about just your debt pay you from lot talk got a Can bit, on leverage ebb funding? you’ve you just you and rates bit know a XX redevelopment you is the limit that comments a guys to call on cap at quarter the like of XXX going whether Jim’s little want and let’s you that need stock to

I it’s Investor like think about we question. Yes, I great at mean a Day, Alex talked

that amount funded emphasize cash we be a today, needs really investor tried both of to redevelopment at outside flow. very and to know that free small remarks of my there day is You in

know will to for between So at commitment are any execution you be executing of buyback that while also on it’s forward, the question the from the to buyback. the disposition as and on really and think disposition programmatic both most the demonstrates a proceeds going of our point quarter said based the methodical of will first year, I of time. And and deleveraging really small, in portion split way day proceeds level this this we redevelopment know in pipeline, fourth stock proceeds investor to point pretty go it your you and at means that which quarter given dispositions,

Christy and pressure the and goes lot backup you question, in about guys been through is really talk the on market, long that back Okay, second asking acceleration of sort a lot for that's recovery. was a half A then there’s follow before lot XXXX. this a what and to time. obviously of of of staple a server relent companies of than mean, I into hopes

were did of went by elements confident As that your maintaining out accelerating guys that really were true your allow any everything Or replaced when in no you outlook? from you whether to a day that other through much portfolio where maybe Investor there been pretty you bit, has underwriting, through be budgeting stayed the parts things sell in the planning in has this deviation? your but there

always move consistent. moves a remarkably I'd say bankruptcy things as been budget-to-budget, bit. little so timing of the forecast-to-forecast, It's

the that been of productive lease time a more of leasing perspective recommencement. side On other in compressing and more and signing successful between from the we've

the even have yet round. I we're and the we're feeling that that So commence, the leasing Alex, particularly, on more rents given to balance in mentioned that feeling visibility on confident

you. Okay. Thank

You bet.

Capital Thomas comes with next The question from KeyBanc Todd Markets.

Hi. Thanks.

morning. Good

morning. Good

the the of regarding landscape backfills nature provide about at just options spaces, So talk wondering new it's looking around surgical competition a more these bit these you anchor approach a the that little backfills just would maybe for that color it's multiple could and the repositionings? you're say you competitive for as whether the activity that you're little the bit and pursuing; space leasing you some some if

relates for part the intentional center of types in that of Well, it very uses putting question. as the last were the we're our

that term, using the And before data to as trade. we precise at most the ask to that not at asset about think more the about are that intentional sub-market and use off we're do we to drive we're data we're side cellphone the needed at on leaving more to trading, and in area but ourselves what's using a are we've level really actually overlooking in properties look never we how properly sale particular rings, So simply done particular [ph] that trade look to centers that highest and competition then of being on generally is of the going that public us where all think a that sale. our not can Remember uses other standpoint competitive much owners. be a but each draw rather private from marketing that relevant lot

I centers to the are XX% think of REIT. institutional the XX% probably of by open-air owned that quality there

And it's remarks So environment it's my scale leading driving still and in that we universe. that incredibly importantly that alluded measuring. with retailers and a And in these building built pretty share. also to I is this disaggregated trust the are we're we something market it relationships important. the

we with the think execute. market leading we tenants within I thriving will trust lot have of we the that a share today. who are And

are net types tenants these different looking going downsizing, of of looking that. a relocating, many are we at formats, as beneficiary of increasingly into So,

local that So, that uses. markets. space we're that make confident that accounts exposure Much sure them, and as national outperforming that of are have as forward alluded reducing these we're the to we in market have that we coverage being terms leveraging great going with then, we have about much to compete in of local our we're to more and each we knowledge targeted we earlier marketing I that the both those vacant uses more less plus, how intentional

throughout that that of what for wondering balance I from expect that does was ahead? quick you how in the And year? the for two points with the in expectations. quarter, the Angela, then How Okay. that just if full to quarters on drag just you in XX was additional compared accounts, quarter, And questions the same Thanks. guidance? recognize the store line the just about think in to should impairments also doubtful year and And the we that provision for think was taken then detraction the do the trending basis comment mentioned could impairment

Thanks, Sure. Todd.

would when XX the In gross terms if expected NOI components the Investor the drag our line the point year. that of you remember I the property, for probably we XXXX points given I drag XX note guidance Day across whole did it’s full difficult quantify year, guidance, same from the from at of debt, we basis with quarter we so most the back the that was think right in comparison QX, December. first had in

terms of the of impairment the for the $XX.X $XX.X did impairments we we quarter this part recognize In were on the million to over bookings, million expect quarter completed quarter two. the that recognize during also complete impairment, during transactions based or of were transaction the most next or

Okay. Thank you.

The next Markets. with Jeremy question comes Metz BMO from Capital

I here. to want go Good morning. Hey. just to Toys back

laid another is the year out You at here rents initial guidance same-store start on six. when but above timing the of the expectations in talked which the the and This XQ. at get terms back of assumed you also all one you about the you're time uncertainty of process that now assumed rent your lower in you ceases

these Or NOI low-end the expected of thinking today? it So larger repositionings? the lease kickoff range? relative really leaving better initial I'm wondering just the of you we about same-store in store same range any if stores commencements is you're you as is should confident to Or your than be expectations removing from as

we last the quarter Jeremy you're communicate. Yes. question. thanks Toys right would on I did say, for

later of during now We but locations first at one much We quarter. beginning year in the earlier the will Obviously rejection towards not expected back, we happen the locations. did to we until rejection that's and are going release six other rent in mentioned that that happen year. all anticipating rent as and we the much to really expect release guidance in

similar impact to our the XXXX So net actually original relative expectations. pretty on was

Okay.

a of And removed so repositionings? these will be none larger for

remember point, our that mean, Yes. guidance includes thing that full that only NOI all I is would redevelopment. say same property On the I

or So we given basis. give nothing out redevelopment pool is including of impacts the on comes the guidance since that

the there. in be So would drag

Okay.

the mounting with give wondering supply sticking the like Brian, that commentary, the is pet leasing color there Just in stores. of on if some I'm there particularly conversations you your brick-and-mortar pressure us Feels with stores. on

they're can So just us earlier, for color and rent you you any if provide to out trying coming wondering get would any of looking any or great? leases relief be

No, be thanks continue Petco. major our the operators continue PetSmart pets partners; to be and Jeremy, good and They store to for question.

pet those operators a discussion. types done the the of tremendous of would new done throughout haven't portfolio. say We We've amount haven't smaller more I we overall had of leases.

tremendous our we from an hasn't of activity portfolio a in amount expansion So new standpoint from seen haven't them.

Thanks.

with Our UBS. Nick next question from Yulico is

for Greg This Nick. good McGinniss is Hi, morning.

Just another Us cut traditionally regarding they and mostly market? potential I do you those envision in for benefit there's question the up, low rents know, When "R" from demand the it releasing pay box or will pretty leases. you size do the the be still boxes? Toys see economic

great Yes. It’s question. a

So we're number a of looking different at ways.

feel share got XX with broad a that fitness Ulta to in the upside looking Wine to got our rent backfill And leases expand. would we upside hour we're are In of that the who terms the operators we to be XXX and a fact good the pretty We've operators and at that continue mix. then looking LA foot categories and really as about we're the board the that LOIs categories home. range it. cut will in value increasing negotiating looking as addition of expecting we're been boxes up. Total far, in Those we We've at to and so XX% be we're the across to smaller those higher operators like those the be range the interestingly XX% at rents we're that Fitness. spaces got like if traditional And

on the So, we boxes good had activity far. and pretty about the we so feel the demand that

the current then or does or And single for was how progressing. Thanks. the exit exposure moving now? to asset such right market Does plan this as densify remain asset asset focus type the dispositions dispositions, matter plan power is Great. center more shifting a

to then It's And really make for decision a view help markets cap Every is well, market strategy it that hold it us. is not. focused long-term lines, us through on or as hold allocation grow the IRR. relates we market that we and

asset single very past of markets So, that look the more methodically made you and liquidity I'm in the we've several found getting we and of in pleased that markets. getting out very out particular quarter we if with progress been these this completing, at been that those we've dispositions

cluster other a your reinvest our markets now that a it's for too to like long-term the to the least justify question, right we densify to and is at On in acquisition. stock much while value of in, us side priority compelling

of expect other buying So recycling every terms and focus side reducing redevelopment, quarter. as on stock that our leverage be capital opportunistically back more in the we us disciplined much our to of

Jim. Thanks, Great.

You bet.

Bin The next SunTrust. Kim from question comes with Ki

Good morning.

Hey, Ki Bin.

Hey.

to back at I the "R" the square than foot bucks is if going square to per question, So, certainly a ABR Toys look spaces foot. PetSmart the before XX higher XX Us

already So spaces how type the and today, demand contingency hold done be is kind planning, you've like some look of sure my would overall? you does I'm question to of those for backlog rent able flat

very the say have in large lines. to retailers the open good those high. relief from this Again, locations box demand question not those the really any comment I about XX,XXX in for finding earlier demand rent would it's spaces along where foot XX,XXX board real. been or that To anything device and the square back we're we across striving have are that not us we're getting remains And environment.

our of those we're stores. what all So tenants conversations exposure on like looks as we out, our constant really in in look with of national terms

where we we good with them So pretty today. feel about sit

a of retailers it's in a sense have data, how Okay. just And time? are this centers operating question is well you get and but across margin and in probably broader sales over to hard your your volume terms this portfolio know I doing do

grocer reporting. our importantly are broader we very remains average. it we And good, we much grocer about sales where have very and relative remains a segment performance focused chain the good Actually, lot and talk on to very

also those tracking not We who productivity, are leases. for responsible under then report key our required national tenants account team hold sales to

reasonable what we the going very occupancy decisions occupancy cost, where we those So estimates, importantly and are performance lease that there there's situation releasing sort the that's good the forward. back with sales to the what And than higher across cost, decisions seeing prioritizes be every board. in believe check those as marketing allows our we're to time determine represent we really healthy event on which well where than of us generally portfolio an

retailers make looking further in opening XX we're retailers store are the for that finding beyond that an planning we're months, and this on we're prior XXXX I've XXXX. importantly So, where we're to today are even months XX the really ahead environment said and capitalizing further and next out. but planning and also out note out calls you'll that just not looking staying sure in of months, XX it

board our of would well. tendency, look So cost of They're constant and our any doing tenants across you we at well portfolio of the determine sales we good occupancy they're risk it, tracking tell we can at communication this, some is done importantly healthy and capitalize pretty I growth but estimate with the showing can doing proactive where are by ahead these getting ahead best and we're that and that being us. on to you've of research locations in everything about the in generally our locations doing have and same-store we're get obviously to some

asset that preceded in what to So where quarter drop in the next environment there's demonstrating our concern demand net-net take pipeline. we're a of think our what keep in going this given and And backdrop them. basis to great net putting it shoe about yet interesting actually fearing we're money make I after and quarter we're to to usage the we We're able going environment seeing better demonstrating are rent low our to for continue demonstrate be. is this that disruption than space, and of we're

think that's about there's because at value disruption So occurring. capitalizes excitement on of and this it's within of lot creating platform how I time least we're this that some interesting a and unlocking an actually company

Okay. Thanks, Jim.

You bet.

The next question with from Deutsche comes Vincent Bank. Chao

morning Good Hi. everyone.

Good morning.

market a liquidity forms. capital Quick little it number peers the of improved new indicated be question the a bit that may seems your as conditions that little bit, maybe side, have improved on are private

you at XX with a think that's that curious what it's And think I consistent guidance way on to away disposition you the is looking about that over from do trying Just you XX year XXX terms if of markets? particular give get then time, number, you're in to plan? know don't seeing are a plans where down today. but about in reasonable the just private to assets the

It's unreasonable. not

the And I plan of of if think talk we're is that, an open to going very to part Day, Investor take liquidity. much the a windows advantage you going as asset well, asset an to our it hold sales about be IRR. decision continuing we are really we always Vince, on decision because and investment of market focus hold

capitalize ongoing the the be we As maybe to we the year about larger an alluded expect we Day, disposition you Investor We than the let there. see is liquidity we to that do front this do to on basis. market. at little on Mark, talk private bit on I'll

Yes.

I think we that. concur would

financing the can space, coming to demand demand private the open-air by We to work tenancy see it's from what for centers putting think is talking the when that for you type. giving of Brian and continue they're bind formation and wide-open See capital Brian retail the commentary. environment, the with lot into capital base is space today. and about you I centers open-air for really driven of lot

think Okay. deleveraging will has there's sitting be concern another we're on and level repurchases longest some of one used side, largely dispositions market been efforts fund the share demand very is in – overall the of positive either to in and And out just that here recoveries or the and that pretty then still question, longest in store of you history. the commentary I closures clear elevated there the

a deleveraging deployed two? guess there I repurchases is do is towards as you so the away. concern too how the versus share recession that And far weigh about next not dollar you think

for Well, as portfolio. an perspective, the doing and talked market is from of have significant that the activity portfolio to we're reinvestment while cash in a well we're generating EBITDA flow we've about we most below fund that

think that first, So that we very about pretty think do background. about from net that said we position We're to be as growth. a right. dividend proceeds disposition the of I And is we unlock in conservative deleveraging covered we to well and think some continue beyond standpoint our well, by

we've maturities steps of joining the efficient flexibility this since fixed our that If that debt we're an out almost I to sheet think you taken fact pay nearly basis. the in with to raised look point. we have Angela capital – at term future XXX% $X at to to billion balance down some we've alluded

balance So we have. managing flexible that strongest and we most are constantly sheet towards the can

flows then you deleveraging we what but beyond did So I signal. a quarter back. if you you important When look is an quality, estate the part. We what the the real sends growing And that is embedded we think and a it in opportunities stock portfolio visibility bought and about this delever look at clear think this investor then to. pretty also cash on which is

now. incredibly is cheap stock right Our

we're importantly the systematically we're the and our prudent visibility to we future trading basis implied to on very multiple cap bases market on for have, what evaluate use try relative a do think is rate buyback where the we're trading where trading where recycle with share on a we with this and remaining growth. but So to to capital we the as not capital define ability us that we

Thanks. Okay.

next comes from St. Haendel The question

Mizuho. with Juste

Haendel.

morning good Jim. Hey, there. Hey,

away. they So, forward I grocer, them requires the guess hey, will I It guess portfolio. be format right? an – they're are important what's provide to from I their you. seems capital many how storage a to which looking from the your like of going guess -- format, to going on get So help question – element right certainly willingness in your them

but for that time, free not to In in a fact, the do it grocer with risk to allow center neighboring long right space. losing to thing

is see more something think that is spend forward going increase So anchored fields all loss re-debt the that we economic should field? we'll type where and these leader

the conversations putting the the put look ClickList, initiatives specialty will and continue and of to at a what continue our I done then the doing that customer then been further. over you like can with and drive different past you stores their best how location like Look, traffic to with engage and the tremendous technology our our any has got best our than Kroger centers them position that in them. succeed operators with the in to And part they're the portion grocers helping redevelopment grocers Brian. with caring constantly don't them it's been in expansions see really where look trying down are the they be they we're is to to pipeline pipeline Kroger operators the think trying This can are the that that that to Publix prototype were coming Hey. at Sarasota new be market. to to position in integrate with whether other it's in that we've and with into years, we've building in their

we So feel if and anything if with good to our the about its going to really part have plan these operators. fact do dialogue continue we be the we of

in making conjunction Haendel, expect center existing note the also I store would grocers capital. investing shopping in And in that the their to leverage with that oftentimes broader just off investments we're seeing through will be improvement that increasingly which we're they that the

are grocers their sales the driving aligned making Brian great these and with – and that important. is on partner sure growth spot with we relationship So but

capital And done on spend. that that in you been highlighted our think I most what has for and pipeline really activity we returns driving redevelopment of we've been accretive

Okay, okay. Thanks that. for

million I On back better question. going to to you're alluding the the guess under guess contract. what's to transaction side, pricing I'm XXX for driving an earlier respond your I the curious

five You grocers. first first six centers quarter, still six the in the in new

new portfolio So demand, just there the any among are no better are centers market? in you power with Are the seeing mix that. buyers better

better as Just about expectation that pricing? driving what's curious to

really XXX,XXX sort at much with most sell to center. really move to with we're still with we Its across But are said, we're we're And closing. traditional boxy to were happened grocery board field able first then in what And foot really grocery we're half and terms early marketing more your the traditional you half in square of And seeing the the XXX,XXX, anchored still that demand implied its asset. on them to talked question, in of lot a component we see we're hold cap more choosing ultimately themselves IRR. where first quarter, and remains centers of more pricing a what's the when our rate we mix from on in assets indications the while a interesting we round anchored what of of for are sort assets focused look traditional the and and power that them specific strong. what based what closing that we're rates competitive success about grocery bidding

So they take grow is to we're is NOI being in where us we're it focused assess kind cap of capital and not to than on will as on most overly attractive that we're that that focused today. hold particular assuming will because rate. What that trying what less intuition NOI conservative of achieve are think would going it where place IRR or importantly be keep they be and in terms cap we with rate what as we reversionary the

growth matters. accretive markets were centers see in of non-core that we opportunities. only growth So selling et limited are that not cetera, And terms but

that. Appreciate

And challenges grocer if anchored? then follow-up still are guess financing side? the the a portfolio could. for Just you – any I seeing emerging buyers center I there any at least Thanks. maybe on Are power

to strategy assets To portfolio pricing. starting things. attractive maximize seeing continues on selling quotes we're environment attractive the CMBS seeing see wide-open; continue to we're really and buyers I be market the one is to we're With in and to It's that we're on smaller we but point off be emerged our on selling what first think portfolio both bank portfolio, financing very can more transacting that we that so the get basis, that been respect financing side interest to are market. to of pricing

grocery the That's mean for right. I the side, power centers..?

you where rent. where power we below for market on rents pricing in demand is frankly our then real centers centers market portfolio below good are seeing you have certainly and rents? key In We're power center well the No. power the think the have side well and

might really be whether you're I think referencing. You some indications you trust pricing or the get very financing you good and good not seeing where of that that's

And matters really then to there. it's that point

that in kind Assets higher mid-XXXX developed to array rent. in tend XXXX that price were of have

XX Our age is asset years. average about

generally by below low definition where our So market. are rents and think we

Thank you, guys. Appreciate it.

You bet.

with question Karin comes next The Ford Securities. MUFG from

morning. Good Hi.

maybe there increasing bid current portfolio said shopping think capital the Given could you NAV even an centers center arrives for there as you for given Do privatization discounts? and in shopping the be buyers. small formation emerging out

finds physical we're capital earlier stores, who out environment relative are how investing you they alluded don't that the in refining prototypes space types and think it look as level see that Mark particularly pretty to when so. of in location risk-adjusted this estate today. We on returns I real but are And compelling, always at other think increasingly the and the to I available yet, their figuring towards net remaining thrive this retailers demand and from their relevant moving that to and are their either is strong they're format. leveraging they the seeing open-air

lot that open-air a seeing You the of format. know, toward the innovation is we're

So don't or I the point yes will it portfolio private a at to question, see happen. but capital see but your finds Karin real level in some it of to capital beginning that, large terms

what it's downtime the for earlier idea for I still in boxes? could question back will the that. of know but My think boxes, is be just rough us Toys process that give Thanks second you Great. you those to going a

Sure.

sure. you If be Brian, better you'd look at

months with to XX with with expected in be where we terms in consistent authority Yes. of to line rent Karin, in paying with rent of terms XX were commencements. sports

in So expecting of and and those XXXX to those expect in to rents come year early the XXXX. middle to we're the later Angela's we get back point online

I as in to the space. you'd our as to remarks that you ongoing to all importantly sort as position spaces to now we've us on my we're And we expect put alluded going give us deals of backfilled we and before how to working backfill done in outperform progress this

XX apologies. for late when that. meant I months, XXXX apologies said so early XXXX, And I Karin my XX to

sorry this you any those any Letters Right. you miss Got boxes it. have – yet? of I And of say if Did just, I'm of do Intent early.

the of now several We leases or in I place. on we them close right half LOIs to see of boxes, do do, have we

you. Great. Thank

Tibone Vince question Advisors. comes Green from next The with Street

Good morning.

Good morning.

to whether you you terms some back or up cap metric? understanding additional period us in on high cap high cap in supplemental trailing of getting disposition a Can cap better rate bridge provide rates the of you helping just color can The seven buyer the in disclosure apply rate? that quoting or a nines, and

quoting What that's to rents I place you the What would point brokers assets were market were assets they also that cap the we're rate. particular terms is that those out Yes. in. margins of in the and these lower the located what markets into underwritten would in is given in would in assets quote how sell. marketplace

assets. have So and part and obviously rate think cap a did trying Toys the off not and just underwritten that that element you we out on them factor other to of back is one they're got ABR a coming into the of the NOI the was I in box

the three Because deal think calculation market got. didn't things you when at you helps the look when about those where rend that really cap we quarter. that get in it quarters rate was underwritten that that NOI the some sign are you ABR we So understand at and there we relative the looks for have to preceding

So standard. it I we effectively kind do it that's how of ways, but that's the think industry and go both

provide to NOI? you get basis, forma cap a just trailing forward Could on XX That's month to helpful. rate right the just very pro trying the

but would for don't you're up quarter calculating, the be at quarter. would wouldn't it drilling a I this higher. be it of It higher actual points. this for think I number have basis be the on levels

buyer Okay. market portfolio active Thank active I shopping this would year far selling like few its one motivated of you single one, in so of a an opportunity buyer? maybe the then seems and one consider being some you. higher-quality assets mean your it And to and sell Publix centers last from buyers. centers to an of take deviating

Yes.

the assets further. a asset. hasn't the individual we're as yet what they finding asset than cases public portfolio to some know as want don't in We if the you Mark strong Again to are right based, I buyer few emerge for have bid the comment for sold

capital buyer transacted Publix extent are certainly asset we say had they done. with formation I downs transaction is But portfolio the that assets quality, They said into that who Yes. really continue to were we high think I don't again have great for quality best would with push some as to get them. have really that partners the to transact there. a we've would high bid

have. I Thank Okay. That's you. all

bet. You

with The next is questioner Floris van Boenning. Dijkum

asset Jim, Thanks sort guys. you're the as exit you single overall touch How or the plan how down impact this than property – market you you and Quick your question. that maybe some on year? margin upon selling efficiencies portfolio do the G&A to did as of sold And lower any portfolio? of had many alluded many

on interesting my we over or opinion know And you growth it's one go driving XX asset, the market at what you I ABR in you three in savings you two when with what's or exited back single plus done or you going when months in think be think are you the the four. to asset G&A good only less when I happening we've to XX what the is markets. own as the more as are ABR about so and last about asset not

as being transaction value that in do such markets as expenses, done efficient that investing it our part at the I becoming other trending with and on our create down, that G&A spend are is in is areas redevelopment you'll focused hasn't of we're what will think but that much we in help sure very really today generate obviously we're as part we've The fewer value. efficient G&A don't areas of and G&A, legal resulted that more were in that savings. note floor with but G&A and that we long-term that is As that making look spend

the But how single contract, you you pipeline of half many or..? more what asset properties Is have your in would the there. in do be of think it terms markets on

Yes.

XX another to get XX we'll out I over months. that think of XX XX to the next

Thanks me. guys. That's it from

next comes Wes The from Capital. question with RBC Golladay

Is retailer landlords to the another And so level? able to Are if keep new a the you the more center? driver? the center? are follow-up looking quality the a up it then retailer by as Is everyone. it for truly the Hi, willingness more Is capital-intensive And what noticing of relocated rent big is private of environment? prototype? the with

it’s great question. Look, a

into seen production in its we've a big months XX best capital operate. we that infact they are the our of we the that and mentioned reasons I you And here due which new have. are beneficiary on to are think in last sites getting to lot the for I focused think platform the reasons whether markets looking prototype, the XX of stores, think and that it’s footprints in that over I in they putting additional retailers their are it's

major that another come opportunity out of earlier, tenants smaller for all Our three for are and local account be, is leaves the opportunities trends available understanding to could are potentially for Jim’s markets, teams instance, team in experts one our what our point larger they us what international markets in and of those front that of stores, then things whether years an locations. box at in it’s have triggers the looking and when will

size a to anchor. pick able into The beneficiary was that a rent out bring them a crossing well. as XX% if like tenants what our [ph] From outside and Burlington of we’ve bring other up the of thing that of Philadelphia I right redevelopment point malls get been on we’re to almost in and at by paying, new a look big and market is Sprouts downsizing – you

relocate to tenants pretty drive have just been with really progress been and pleased we’ve to using willing our So performance. the

alluded capitalize tremendous competitive in on seeing and it. think a this Brian you’re us advantage as it’s to, I environment Yes

Okay, thank you.

You bet.

question Michael The from with next Miller is JPMorgan.

like Yes, of run more relative hi couple a anomaly? XXXX quick was a an it a little maintenance questions just forward decent it does of you to XXXX by is more XXXX XXXX in or little of a feel you for amount. bit rate bit I up Angela, wondering was picked look numbers a here. CapEx and better when

should spend you expect $XX had going CapEx forward. rate million in maintenance we and a think probably I No about of that’s XXXX run good

dispositions on of the last all Got it. year. been for going the and that given balance had for then And question, the what’s planned

any burn As in out could XXX you XXXX, color that do off adjustment point? this look on at you the FAS at have what be

an environment acceleration changes of Yes, that it’s lot some a good to a make. the income question. out or you situations that going have into sold further pool Toys when as see Right of to depend I on going of that don’t on retail "R" a right it on now Us been lot have any get might periods. with to that have as respect It’s well. FAS also the assets current It’s to might comments depend it. we would transacts like the

for that So there more watching David and of I best our lot income, Day guidance line have something non-cash XXX are straight $X.XX so better for of moving drag XXXX any this pieces, point. FAS of a to than we’re and we know you was relative assumption at don’t Investor both which kind year this

it. Got

Okay, that was it. you. Thank

Thanks Mike.

question Linda Tsai The next with from comes Barclays.

getting toys the the have with quality boxes upside could one. rent Hi, the location and associated like each you potential ordered be back of you

rent XX% sort boxes, is how XX%? of upside bifurcated. you said I distributed evenly to Brian, across the know think You or the it is

I didn’t.

it’s bifurcated the or portfolio. evenly pretty I think even across it’s pretty much across

XXX many fact in that one. our stores done, of locations opportunity are back. boxes were have that getting drive that fortunate only not XXXX and upside older feels when majority vintage, were to mid We’re combo what we the The we had done stores like and are as us at Jim makes here these the sitting in good them did mid-XXXXs that’s it XXXX, – earlier the feel or about mid we the in pointed

activity half. know And part and of our Brian with driven what’s what you to on before, as level alluded leases

Thanks.

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

Thanks everyone. [ph]. at We’ll see many of anyway you ICSC

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

You may now disconnect.