Brixmor Property (BRX) 31 Jul 182018 Q2 Earnings call transcript

Good morning, and welcome to the Brixmor Property Group Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Stacy Slater. would like to to over conference the turn I Please go ahead.

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

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

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

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

That we report at pleased strong well put, everyone. of XX%. spreads centers. morning, we on new spread to where leading X at sector comparable X Thanks, underscores quarter productivity, forward feet with That XXX now. over feet be In that along XX% of leases last the million that million totaling I'm value have good of leases leases all another in sustained of great cash growth. Day which we of December. our ABR, our deliver a have renewal progress of begins highlighted Stacy. on located to continued pipeline facets of new X.X fronts the we And all yet to of the and on continue over and plan cap leverage to demand capitalizing included leasing feet quarter, tenant executed Investor million Simply million visibility we're with the substantial value XX across our

In fact, yet of widest basis million points and it’s XXX truly occupancy since and gap the but signed IPO between lease commenced. is ABR of the been highlights not over build $XX contractual

leases, foot new average tenant achieved in eight XX capital embedded leasing X% year, growth of And average we're Our terms. remaining the while grew We by capital importantly, overall duration lease occupancy points only of the square delivered We've our see versus shop achieved steady and of for of intrinsic as with leasing to disciplined XX%. leases starting momentum historical at closer points in to XX versus our and XX productivity to XX.X%. embedded small options granted new an this increased XX% average average sequentially basis sequentially. an basis rent held lease X% that

have I new six now on XX%. is while to sold. with share locations, Of we locations, the leases out pleased LOIs XX market or of openings, on the to at boxes note spreads We remaining in tenant list. XX. We XX two reducing which also couldn't And the with progress continue of year our that of capture our core excess our on began top disproportionate our of Sears tenants exposure be Please watch average Toys. more of store we

in current expect $X Angela, we foot, the similar a will more and on in rent I place minute. remaining a impact about that balance. detail boxes provide Toys of spreads this the average Given realize have will an of on year

pipeline Our to continues according to grow reinvestment plan. also

During of of investment million. total incremental bringing $XX quarter, at million in another our XX an return we expected $XXX total just the XX%, over a for process projects added pipeline to

process our of pipeline you the Moving Cinema we're few Wynnewood constructing quarter first Dallas. to underserved you from from and the just tour, phase Fitness some raising believe will of old miles that this office in redevelopment saw Dallas a we L.A. this was recent in an an that building our submarket and future where in Maya Downtown thrive

a of a team a be projects completed of is this couldn't to into vibrant first company quarter, over and of new we center as serve. our to that the aligns four million will they communities tired how job excited here and with also shopping four hub our purpose doing own centers community. I our of the it begin phase pipeline The the very the transformation advance the creating more during value. center added projects that Please shadow XX are incremental note at with

of creation reinvestment like strong. very From of I'd our important value a highlight pipeline. couple velocity perspective, strategic As believe a that points I the to I our of quality remains said are before, regarding

the are pre-leased which substantial effectively mitigates foremost, execution projects and First underway risk.

between our XX means months, investments sooner. Second, the being the and shorter is much made begin there is and less doing. weighted delivery, will a Note, we're given which flowing time granular average of cash what than projects commencement duration simple the frame today of nature

for shop our that of reinvestment completed list benefit percentage is upon nature as one this in reinvestment of at high that points third double-digit stated is relying and the ATM the the projects. completion low largely markets. that list is older small point projects of This in grow growth. will and as have and today and capital a not point well-located self-funded of we are of This capital expect plan or that we by don't flow include The portfolio our is we pipeline part point rents several final our we cash third that, a of pipeline of realized our and capital the over work our upon moderate in the returns, level given The is impact free hundred I substantial we assets. critical that or incremental Thus de-leveraging. possibly sustainable we've activity occupancy to an single and this funded the basis XX% returns benefit full from recycling. put And

Speaking believe first we Again, we of pricing what closed optimal XXX we range in capital complete assets. recycling, mid-X initial a I'm also end, million individual XXX rate dispositions of we've report least another under this have at cap execute, pleased which transactions by to contract. pricing selling since exceeding goals. strive our non-core under the to achieves in the assets we another significantly take quarter negotiation, quarter over here for And XX%. currently in dispositions last at contracts sold but million for and now expect additional Including weighted average to XXX at, year, in longer we million that

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for that's attained outcome. capital It's portfolio pricing from his at I But capital in was on we capital and of effort transaction. that recycling is the lot think as transactions on versus transactions doing our a I we've our portfolio now achieves the least been individual was and team guess Mark higher would which excellent which making stewards is an call. and I we're is appropriate point recycling because XX% be recycling put

weighted price trading the late average these quarter ramping the quarter limited shares closings, million repurchased a timing of pipeline redevelopment of X sales only at our in Given we and common window, $XX.XX. of

standard. by XXX We operational also to providing From utilized we we XXXX operated proceeds sales the reduce an had At overall million. by necessary billion quarter to end, repay standpoint, deliver nothing continue under all X.X drawn credit remaining facility ample and owned enhancements our to to maturities proudly our meet several years liquidity. leverage us and Brixmor

sustainability confidence we our in for and of results results. grateful are the Star through Investor of in investment also for other in are in I'm that first that all that delivering progress the us returns. making value. XXXX this Importantly, so job fronts across extremely I'll we discussion GRESB I'm entire of we've efforts driving of very awards our Allow highlighted detailed these our of turn team. water for that awarded our provides close At Green efficiency range been more to and in initiatives, Day business X% greater NOI observing execution producing to Haig point, the Angela to and and even a sustainability December. substantial much great proud me call to our by team double-digit outstanding by X% solar at plan our over initiatives this

net in rent overall Provision interest Base doubtful the to X.X%. approximately as and also in XX ancillary build share occupancy point basis and not we other revenue XX as and based growth expense detracted morning. contributed in second reconciliations. year-over-year NOI relates further points points. our growth strength despite last spreads XXX the was growth, positive reflecting build quarter good of accounts CAM sheet recovery, re-leasing tax This months. reflects the net basis rent average growth in but contributors the quarter new points. NOI created G&A XX an of FFO primarily which magnitude during balance only discipline to per And on same-property occupancy and Jim. savings offset and spending, average FFO contributed and impact over were contributed points, year-over-year structure. strong for of These Thanks, capital while XX basis our recognized the optimize by XX a a basis decline the to additional decline continued final the basis de-lever same-property second it XXX of highlights $X.XX

portfolio. XXXX affirmed FFO all last maturity Investor to repaid secured also opportunity as guidance at focused addressing embedded fully XXXX while maturities executing the During term our the maturity we our consistently laid the and plan are scheduled now XXXX cost growth and on debt on in XXXX and loan repay NOI deliver out quarter, we [unencumbering] XXXX Day the the December. same-property We've higher debt on debt remaining and the

associated and for commencements a face year-over-year recoveries to drag redevelopment said, As future projects, in the our second due and range. bankruptcy to it growth, XXXX we the continue provision may declines our reflected in That from both in during half activity. both with process including as the headwinds NOI portfolio, half I note year-over-year which redevelopment that incorrect occupancy an in second comparisons, the would accounts in are in both guidance and of the the original doubtful expect acceleration XXXX base to net the across relates we well from rent same-property due moderation as year, contribution to of to difficult

and point the be future redevelopment balance will inflection anticipated, throughout previously has As in contributor year, beyond. growth a net contributor reached and process the now the XXXX and meaningful growth from of before drag to a modest becoming activity more an in to

XXXX, will timelines of redevelopment Centre process During his such discussed Super in which the granularity half as rent relatively Center, commencements Downs, Ventura and have short of significant remarks. as anchor second and Mamaroneck the redevelopment Speedway Jim highlights in we projects our projects and

In anticipated in impact addition, will closures XXXX rent the the as of XXXX Of vacated store To when for the the of second former one boxes the half to we've timing of exposure, process due several quarter, two of Gordmans the Toys hhgregg account with taking backfills our that too. well moderate XX activity of locations. impact activity as both end the bankruptcy XXXX second end even quarter. at started Toys"R"Us of first and while bankruptcy the vacated the of Toys"R"Us commencements been has year, the remaining at into XX, summarize the sold and

five quarter, while paying remain third additional two in July the During early today. locations vacated locations rent

will assume that third these third end a impact basis anticipated to we basis total in in quarter. the also QX. point point will by closures a The vacate XX XX occupancy or result Although currently impact of to occupancy seven the locations quarter anchor

to final resulting a have XX will basis XXXX similar average that in currently store on in on that the XXXX point our timing Toys closures, midyear. impact a in don't NOI given during the total XX same-property we impact have While as closures occurred expect well, clarity of further we on

our Toys"R"Us slightly beneficial in second our expectations approximately results, closures were delays same-property prior basis relative X to quarter impact year been the has to full de minimis, While to points. NOI store

recycling FFO related of program our terms use timing ultimately where range. within of we and the proceeds dictate our guidance, expected capital In magnitude, fall to will

mitigating While year, to XXXX personally as Jim is disposition now the mentioned, expectations, total the in this original surpass is occurring later expected on volume impact FFO. activity our

discipline we on the shareholders. will laid value to balanced platform. And continuing Q&A. XXXX, within turn for for create as over Across And execution the forward implications successfully in portfolio and for executing has exercised operator to have to further disciplines we all our progress we've call in and are this market underappreciated still out Investor plan quarters to the business coming demonstrates the with Brixmor’s created they the While we the company, Day. the look meaningful transaction at the highlight continue I'll that, our quality for you of

We will now the Instructions]. question-and-answer [Operator begin session.

first ahead. question America. comes from of Craig The of go Bank Smith Please

intend touched of more you've dispositions or continue to focused Angela, pace on you into growth? will it, you on but the do XXXX be

question. Thanks for the

of the very the at we that growing And XXXX the of the at Day we are. alluded laid out And executions I'm remarks, selling said think beginning in I the very that is my at what we're December, had end given we little cash expected the expected of the when was stream per than share. of recycling. I’ve where Investor talked capital the I from pleased Craig, our flows last a more we're out beginning. more product day, year the as even we the year execution in by substantial to getting. bit

long-term the did decision lot As this fact an we’ve we we look of that capital level see appreciating asset to that not forward to importantly the to a revert investment this also through normalized the holds. though, but reflecting I decision, that is cycling, expect year gotten of holding assets more

I that expect able normalized we'll ‘XX. so, to to more level revert be in And

from ahead. is Please McElroy The question of next Christine Citi. go

morning, everyone. Good Hi.

and should today the about just proceeds on you're the stock about dispositions back up the of a following the of thinking previously, opening the dilution when -- in XXth, in in in for XXX million Just how now FFO the is half buybacks disposition capital year, for you we discussion use proceeds allocation sock And thinking as given does remarks, of as result XXth about thinking the debt how disposition? down? buying this how versus the are your priority pay second the be a that

to what side of which the we’re sheet ample of have is not are done sheet question, doing is, on I making at we we've We take good going standpoint, that, ample taking. our liquidity let sure that first beyond. just on these next Well, stock very what's the focused a part foremost value. matches that and that making very a me that And still a we risk on importantly, sure we that a of and with think not this from first job capital liquidity but year good and job always of fund think balance levels have allocation balance year matches we're the strong compelling left the

a cash growing we So do product to again, stock for compelling to stream at which going Craig, higher leverage a I investors, run non-core of assets pretty is and X us our investment obviously, into to where cap recycle the much a going tool said think offer per we to at rate flows we that rates the cap ability back what about share forward.

Yes.

of terms things. the back note FFO dilution In half the in a of couple year, of I'd

pretty was first, quarter remarks, think the as second mentioned at timing activity, Jim when back it in his the I weighted. disposition you look of end

closed In as within during two the XX% the XXX an going of second the quarter, fact, well. think has of implication definitely weeks million last closed I the which we quarter forward

the it stated, Jim fourth terms relates as we million dispositions a as that you I of quarter And the and in contract, those release, the in us the outcomes we of much that dispositions, we've the as think take magnitude that. mentioned to final up of early of the use of totality have proceeds think do reaffirmed than the and for set timing it I activity. in quarter then or mentioned, range, around another could variety about know different the we press third we third But under XXX significant FFO of XX the give closed As million quarter. and think very as we more the being reflects

impact. your to be then how discussed about the I just think on a XXX provide the talked redevelopment your an context talked we recently Okay, Investor update -- redev you impact? Angela, on of on and about the and day update points X% of December comment impact. nearly you Day thinking XXXX just X% you Can you components kind on to redevelopment in Can And to about XX should larger there? follow-up basis there’s of more us same-store At forecast? you December just

I impact basis contribution the XXXX the range. as it the absolutely rent think point same-property XX No, to based same still to XXX is relates in

be execution of pipeline. has end projects that we mention do around projects XXXX we've even well move until I seeing XXXX last strong, in from continued our process continued think a call the as have very big redev to on I stabilizing benefit are anchor that to commencements half where XXXX. we're quarter's back during into rent did not the

So basis a expectations consistent XXXX. the the to gave Investor with Day we point for contribution of all XXX XX in at that’s

redevelopment? From

That's right.

Thank Okay. you.

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

are one of you and news a there in can is change And about landlord? grocery from groceries, Kroger conversation Jim, bit that? Thanks. different maybe tenants biggest on talk going viewing any how how specifically groceries touch change the little Ocado, conversations your or and with are you’re

is restock relevant add Kroger initiatives to that and it get in serves. news it's store in stores the with particular existing think to And particular that sure news their their community they products that are their about investing interesting store making customer. for smarter they're demonstrates as about what's Kroger how with they serve great in I that how

invest kerbside more So with better seeing offerings traffic we which like the inventory, in grocers more prepared existing more are the offerings, delivery, on we're of fresh result more end traditional stores sales. in and more seeing scale things their and

broadly positive. with coming I level a very make So, is expected higher I would demand the comment year. into we of More we're the think than seeing that tenants, much

expect to the winning at seeing and tenants we're But the capitalizing we’re year. of more willing are Brian? to to we didn't that that on prototype get We and size, cetera. the et even business win lot propensity a beginning of relocate

Kin of not are saw very with retailers TJX's ramping out coming continuing that new and reflective what opening of HomeSense they market that Bin store was out Yes, but small ICSC their we concepts with formats, it like formats new were up. only coming plans,

So have and that opening robust seeing space and to innovate in plans active and been the …. have our you're continue retailers thriving to continue store

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sorry. Again,

We what getting here. folks. and team. of Bin demand was capturing market in increased and part keep with Sorry, addition which from openings saying for Ki larger seeing compensating we're core how to share was our importantly, properties, our I Accounts National disconnected that larger tenants net tracking think we're new I we're their

we much than months saw more the overall, positive environment, to leasing what eight XX ago. So that's even

you it that like on touch of it’s conversations more better several is say are point, you're volume? or or much just it’s at what positive when you're you months So pointing a is just series purely towards, it much things ago, that more from when that on just say looking than

in growth. if for by results, the leasing with in volume think and plans move tenants I Well, will, execution quantifiable you the the change the underscores their

we're on. tenants and So, the they do about as in that the fact customer, store you I to is at incredibly think provide results we're what talking how delivering leasing look connect But think that the better evidence important. it, do I with underscore

in willing These there in the competing we're because store can our you are tenants location, with on than You prototype. that rent they relocate. to particular, get their demonstrating the And low in do them focused tenants benefit we're have older more all are more well really seeing see centers. things demand and be investing that that to to and ever basis, Brixmor

you that demand So, again, we're again, our tone basis Brian relative would I seeing, speaks may set we're dig pipeline have the some, when but tenants the that the again, to with Bin the and that located off it centers, XXX have reflects well a underscores it be what momentum in 'XX. leases more Ki million we older team seeing XX have confidence that particularly of our nature on tell that over of year-to-date, And be ABR, than and into nearly in. positive of you to

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

is for Jordan Todd. This

you small to in sequential you and drove I'm the future? thing on more near type of of curious Just shop just the expect jump, that occupancy see what if exactly

It’s a question. great

fitness FXX whether we're Burn or like operators. we First, from service operators wellness restaurants, and added seeing boutiques, demand, it's uses, and health Camp that Boot

is So that continuing. demand

our of that is also up. out I space. making the pipeline his as We as we're some centers, incentives driving think around investments Jim then realized shop some in And finally, this in ramping redevelopment it's year focus. earlier indicative the that called well comments

we points. to our seeing portfolio look those future XXX But pipeline, XXX basis we trails So pickup. online, that basis by we XXX to progress. have projects at And redevelopment still average point work we around made bring that have do, as we're when

what ramp expect to the as is continues can that more projects pipeline pipeline growth. we up So we asset that which see continue bring to in of to those

of you And guys on a small end occupancy? by the year have do up where you end sense shop might

occupancy giving see expect but guidance progress to not continued there. we specific We're

Okay, one me. then great. from And just more

accomplish recently. few over I you're trying you and or just about, to value additions next adding the if these organization could there these some to You so? made am with see additions the where -- you additions been talk has years curious the what

And we and talent. great best platform to that firmly believe are retain estate people to the that be I attract very a matter setting up look, matters, Well, continues real but more. ourselves great

with good alluding division. coming is Federal recently added I He our Hendrickson, we to And execution. whom is of experience, great the investing going at John very for And about ahead run board. assets at of of the we're later think RAMCO Again, talent a in we've work provide John there by used Midwest we in leasing some leadership excited talent because was do added already incredibly you're potential on Midwest. brings I is leasing wealth to Midwest to and and team board. a us generating great the he results also some we've and our that great what to see led lot are Corrine Devin in John coming on

So I'm to carefully important areas of where be mean because fairly we continue were add we we talent. not talent, that the to the on that needed as critically we'll part was such talent yes, what within take driving came And an it's outperformance. and let going him to had great saw assessing board, business credit. But about full we I always

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

guys. Hey,

dispositions, go laid of back if or single markets. out terms so you Day, In to asset the we XX your Investor

the versus Mark, how much year's that follow your assets of the then terms much bucket you're can maybe much you're one? So looking growth getting exit? for a coming or you in hit to have the putting you're And rates on just as if market how closing markets in in comment is being under you on to of wondering how include much I’m that so contract, how versus XXX million sales you from core this lower next

Yes.

part XX first asset markets. we me quick. the Let of I the get of exited end our be We've real expect to XX XX. single answer of by nearly will as through year through that this, probably the

where be you reducing we'll again have I'll markets And one got second we to let just Mark, the asset. those part. take So exposure our to

those been of the and close. we Yes, But as to on on through XX% what rate have ability discussed part till we to XX%, close. that to we expect so yes, more go out we in process. don't the From is to closer hit market where past. bring as to think It's one-off the perspective, any important have assets prices have those say we accepting be than the it's what I'd we our strategy accept sales -- have in the opportunistic purchase I

Angela. just that. for Appreciate And then one

You've touched remarks. maturities future on the in briefly opening your

$XXX have pretty in a coming million term loan You rate due at low here. March

color plans obviously today on about or that be us shifts can accelerating that maturity for thinking pricing how we change should you can materially? So just they more the give recognizing some sales asset

the think leverage reduction. to secured proceeds component and in XXXX on low maturity go execute XXXX, I we're at And continuing both I XXXX. of further a range you're maturities I debt you evaluate mean higher through the relates right, Yes we it now both where to right as to that just but remainder as the outcomes of to we're think a different point XXXX going a cost cost of those as certainly mentioned, also are

a have of market market to as outcomes different it range the both also replacing unsecured in We terms or those the bond relates of bank think I maturities.

or to we're exactly exactly next early that I but and how quarter. refinanced, look and more continuing are should timing So I total too say think across the 'XX evaluate XXXX, have those 'XX clarity to when in

The next go Jeff from question Please Fargo. of is Donnelly Wells ahead.

their morning, Good resulting more value of add kind your on think a tabling yield? getting even about more guys. the and labor back scaling projects factoring underwriting, maybe into How to scope conservative you costs future if curious or and either maybe you materials some perspective pipeline or rising current that's

because It's question good Jeff up. costs really are construction

Fortunately with projects. simpler we're dealing smaller

we're right. off to not we're rent. getting And huge furthermore, So element into coming the of projects that have really budget, a variable low

getting project particular for or of might a in an XX, X.X. it's get rising But a proceeds still instead mean XX, costs it's So what is compelling use that of a maybe us. we

continue we've because any that priced move I It that, as job. small to that the got and projects costs mean alluded important of construction of I when create variances room we costs can’t the projects are but we within climbing, are know think is we’ve rising active, not I think my of dollars, in value. be haven't that broader and But the to about only going again, remarks, our contracts, we're there And GMAX are substantial cross-elements some is costs. out granular, we which them forward. commit the before We and like really pull had that doesn't a labor the in things climbing, we place, through lot we understand construction right, into have leases But your point pipeline what's making. to to

the question. of market I of that know or portfolio curious space guess was us give be But people of I at the may talk always credit just second you portfolio risk. such measure either volume And ask about or you historical space above And risk, risk. at at some a know Thanks. to could rent? or about context concerns can if due express some that? tenants lot portion a on stands for I anywhere track has every I the even today

We question focused those. we upside have assets oriented of briefly, on how grow. element struck we our at me us of of here. chime activity, on assets fundamental rent. sold rents does that the of where think growth, Again, let every company we I is when me things to focused use came Brian, we as how our help limited the the really Yes, towards disposition obviously few, many plan And the you in it those comment one on can were we let limited above me market. were had But a on that that into

on what of basis. have where market look other we on concerns, very is that And, trends to relevancy, quantify tight And with is a of our on. above losing don't that then so we but we've we think we're what’s exposure an done list, watch what's assets the tenants job observing amazing who maintain the conversely, we things in where concepts little view on just our we including at reducing mid credit concepts or which other not are a team and exposure tenants or single-digits watch our particular immediate Brian do do in reducing they're but weaker Sears. of have sales think tenants And declining our focus to rental office done we tenants Jeff, and and

continue we a it's of in as market, question, as or rolling That flat I to relates the but to single relative suggest good right. balance And sort that we part part business. we're slightly of demonstrate But quarter. would very regular position. mean a compare portfolio the some really on not ongoing that your down, every some a to it favorably initial we're So, it rolling doesn't of

add, the changed and I just good hasn't we see rents And Jeff list to strong spaces much tell you and what very watch would for incremental is returns. can continue at I these demand

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

the well. is Yes, your are non But before. hi. This Good second on if But up quite touched cost. real looking morning. operating X% kind estate Angela, a as increase? related, a driving this at quite I'm costs of the they in what's sorry up I recoveries non they were the know year-over-year related you real bit estate -- quarter. were

the as increase operating estate where also so I well. X% item. on pool, during seeing quarter the same-property costs, the you're that operating in line up think Real was Yes, within cost taxes that's

the On And of of under a at repair X% just looking line, that’s It's a terms number really and cost basis, maintenance related. you're the operating growth. timing timing certain on in activity. year-over-year it's year-to-date

to they're items. basis, real activity X% or we line Again the growth year-to-date XXXX have of to taxes of projection both of And for period. touch the with Our appeals think in year estate certain over really terms do just sort a successful those right in on full refund is X%.

How as to we the sort spread of over And a about your normalized the occupied. spread of versus then XXX around about next what's it’s touched you And is that one know upon that, basis guess, I it's IPO. leased to months? thanks. the XX the that kind should part I been think six business? second since or of Okay, points your widest think

Yes.

normalized if range. probably in basis I think the the been point XXX historically look XXX spread to back we has

vacancy I continue will It's little move you'll on that spread a a of see portfolio. of reflects excess How to that frictional spread leased in think bit spread where trend occupancy expect or of harder that So significantly certainly predict. we overtime? the kind normalized build that both and in higher. we're kind the to is But basis occupancy

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

-- few a here. Just just two questions

when that affirmed ammo, to delivering sort appreciate headlines think and year grow X% delivering that -- year your of whether we're stock spoke of to Jim dispositions. offset you down Angela, of grow next sounds they're that Jim the especially ability on same-store now you First about But How FFO? guys offsets like through you earnings as about debt think additional that this from the And last year. year. actually exceeding X% company FFO target about for becomes heavy more as XXX or million growth I allow acceleration dispose weighted and the next realized where second to this the pay FFO as it's impacting do half negative you buybacks it sort and you

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Okay.

If you it? or want to you hear re-ask did me

hear whole didn't the I Alex. question,

were about think disposition activity? something I pace the asking of you

guys outlook going XXX you said simple in year. original Basically terms, million what for exceeding to was sell you're your this

better that million? that grow in on flows allows about and expectations redevelopments year as X million next stock downs delivering same-store your think or But far to it is any and Jim, we grow of reaffirmed impacting dilution coming promise your next. to You Is should back cash for you of it buybacks the half the debt from that XXX grow FFO the growing how this year? for X more XXX the offsets to pay and as dividend, sort

increased pace the got some we we intend that setting debt. that us doing is share us our it be, we've repurchase expense Alex, you will How will as we're Obviously be think other the to value and of think down But issue I pay an Well are allocation of and decisions some much by where things driven today. up tremendous will capital is there give very because our is can for that into said, everything of disposition drag going And activity confidence. create And XXXX. program which leverage growth. going well stock is timing. redevelopments we

of been very plan this one as recycling a think will I was to more next that see [exposures] earlier, net was decision continue we capital to leasing, be recycling, on or And I alluded with setting executing certainly, a latter versus way, But view we the As The continue part talked last operations focus, towards doing year-over-year transitional this portfolios asset at we're doing value that beyond it's what time. growth. don't my real up into to assets. a creating substantial in of timing. we dispositions alluded as XXXX, to manage a part remarks, flushing be year to try a And year. that our long-term December year year we half redevelopment, about capital and of it I just executing, to to we're of the drag as create -- conscious doing as whether have scenario that where volume in

now you got follow-up view could expectations, we I growth with and have this is But people dial that a spoke collectively to all don't 'XX Right, But think the guys there, that. a I year, and are of Day increased I understand just would being sounds think the it expecting. which there trough that. last we of be growth flattish sort year, may what then be our like almost Investor at year a back to dispositions it year XXXX was the

flat should next to year be that thinking commit you another can So, growth we or year? to be

on business, growth. we're that And delivering we're unlevered right. side importantly, that of the growing think I Well, the

do do what we from FFO into capital perspective. which to the which decide in going we XXXX to will but Alex, some other all visibility of where 'XX, and impact things get utilizing that But recycle that a we with may expect end again, an are Now to good forward. done capital this year up go year, of this drag, providing create that we

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long-term in I'm So most whether Alex, that's guidance We're at those there comment you. of volume think today. and proceeds. I lot going how flat to value pieces tell what can terms year, investing highlighting moving this I generating not a XXXX and not are see giving this timing it’s doing for in can of point. anybody are is allocate the on we what we we're who the true But that down. or the up or the us of we're

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

quarter existing for if could land wanted your Just some see give center? to that's an parcel you on adjacent that you plans to us color bought the the in

value really is And adjacent asset it’s Arbor, open about Arborland up creation not to We're additional But we in this any prepared at Ann to for parcel immediately talk our concrete going this point Michigan. opportunities. plan. think

market In addition the to end the property. of on Toys back below rent box that well we now same is the have

going of was than potential a Ann very unlock of that but $X that million which a attractive tuned, stay redevelopment to more lot is land, submarket terms in So that Arbor. investment in

sequentially, is second on your bit The And is a thanks. touched just moving you on question I my recoveries, it was Angela, now. Great, know remarks. down but occupancy higher ratio and expense in year-over-year here

in can on any of into that we about and second you the should So year how 'XX? color give think half us ratio the

year-over-year work this a impact you're going I will continuing look build the remarks, I my One, Yes you expect as decline mean terms in we two did half of I second back, have in year on occupancy be net if of did certainly out through to to well. guess I which things. an point recoveries

changes we XXXX Day, and coming from as we did executed 'XX. on the in of think get of is, the based rent in, If commencements anchor half back have what into the we commentary Investor 'XX to that that back into already the you is say pipeline

a headwind And recoveries maybe neutral start into move be result, so, in you in that And year. this we 'XX should certainly 'XX, to second but a the as shift. think half to see as positive of of sort net I

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

value-add pretty asset Good existing sales barbell bit from a between quarter how individual assets selecting markets, which centers how morning. you're dispositions? mean more outs. just be assets you The Can and this choosing out? can details to maybe -- site stable hold type single you on for properties to I move selling filling you're neighborhood in more discuss seem little with some discuss basically versus

on the any to Yes hold I focused there the the IRR today, our we’re growth asset, of results. is words, not drive where and the what whether hold growth based and required rents asset type mean what other are In in in the IRR. or capital is on occupancy

simplifying portfolio. of that's what common we're So denominator selling. the Strategically, we the are

thought to have the an alluding great We rents required not but cash assets are those asset exiting deliver those earlier, had capital few was lot had market disposition ability of as limited. have a spreads lot think a Roswell, towards we importantly one dilutive. in that mass. where I at the to our where think To of or assets are the thrust above effort where quarters critical we is we place market, Georgia asset that And flow was where spread, what to And we in is that right. we only we ago did like grow we targeted

asset “of portfolio So -- perspective for the it where factored also to time looking on to at it to is as this level strategically asset and real at that into hold, exit”. there what is us the to while from well an it estate we're moving cost and decision all it's a saying strategy return holding us too a

answer. long-winded the that's So

shopping buyers you. Thank anchor purchasing vacant private center? box when generally follow-up. one a are underwriting How And market That's quick a helpful.

it, They're getting Mark? value not lot for a of

Yes.

vacant increasing comment on reflected one doing have and has thing market the point. I the good what investors the been would what a that's seeing really of under obviously contract transaction But what Brian as market-by-market is think in we give a market, and really you're team volume of today. to is reflective value not for dependent anchors. and It I try lot

tenant increased velocity. increased are seeing tenant demand, We

those demand is power from private side of that volumes really increased market capital the So portfolio? which is driving that's I I advantage formation take go growth across investors the think are trying what our seeing for why some And center think assets. anchored of you're increased today and to

formations new the seeing you capital add Are side? on value

Yes, that I is inbound, increase the number on say investors. mean I value-add in from most -- it's the value-add it's side, that the one would really

the really tenant they're side. market think I on Brian that where assets trying to advantage can the take of find was they describing

of Of and course we prefer to hold true we increase have, we’ve Jim sold that described to number those the the kind one once that’s us. real that value-add really actually absolutely been

is question next Please The Capital Wes Golladay Markets. go RBC from of ahead.

morning, Good everyone.

the to Just get split to want boxes, to is horizon Toys"R"Us And open? have boxes. mainly cases time tenant the you now. the going go what the to interest we to be Are the in have up those them right

Wes, this is Brian.

in to As mentioned, And could those from payers are Of those, split to home of are finding to lease one change. now demand rent the today. lease apparel like only the But single those specialty six on fairly Jim split. right value That we boxes go scenarios, high were we're fitness we stores. in looking users or category. at about wine

take those as from depth you sits saw saw sports different to the what to So discussions to majority single are it the the several the user. as for the where one having actually take been of that quite of we has box authority But tenants demand similar we're across today, and uses looked boxes.

rent want the have take But to did higher net-net would you those would you it. did to split use tenant single be right? you a if and Okay, mention space,

you rent where we Not can accretive we those look at several done had anchor higher our boxes very repositionings, we've particularly, uses. returns split with if where paying

and expect we boxes repositioning we whether decide center that And to deliver space the is anchor particularly with users. box returns go split say our really of we I to it's or driving. continue that pipeline, the would in single So regardless that those to that have that demand

far a major for tough whole as portfolio. spacious where then what that stands certain and space this bidders geography, today? Okay, to in maybe maybe multiple lease the entire is for then you out size, coming a anything there as a tenant have demand, is And particular environment

team have But To competition Northern few we now. the California take seeing pleased our on demand laid Angela answer with XXXX fight still here, your box we a some food by We've that and is have it’s a to right the is that out. remaining expectation backfilled we're that. And a we to boxes. as six, work we're have rented the users we very from two the will three. first Obviously, for a literally between with there having late these do overall in question, that been said

on the So we're those and majority the overall, have again, of pleased boxes. with progress, demand seen I

that, I number didn't that a transactions we've just we of comment Yes, that expect on been there would successful to are be.

in that up we're selling. them that before selling So to assets get more have finding concerned us, demand the for markets as leasing before pockets them. in and would we're certainly alluded is value which We're helping Mark

large, backdrop the by not So competitive and have not the now the options. But other one. right it's go momentum our is that It's tenants we're seeing preponderance, that way. don't pretty constructive

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

any or include impact co-tenancy from purely center? Toys Hi, the that leaving closing 'XX, good On stores Toys just that also from the in the morning. in to then XX for bps similar and XX is XXXX boxes does other

other just mean, it’s related But as to that's it’s I there Yes little all disruption Toys, vacating. is inclusive. Toys basically very

Good question.

little of rate given pace talk current think that I benefit in just XXX to the then redevelopments, to but 'XX, points basis XXXX? realized it's run continue the XXXX in And about probably you early XX could do

which at just setting and earlier to is reflects in was we're you disclosure look timing get doing, so of there’s our which yields the it really in we're can of project-by-project granularity our provide I benefit is Yes, what what absolutely. a and flow that pre-leased. to cash it's pipeline. investment sense referring pipeline, we fact what And from up limited duration and of the We

but projects to shadow the from pipeline, into to shadow the only we're active adding from moving active. we So again projects pipeline. And the deliver we're not continue

velocity the very importantly pleased element that, revealing of with I'm very business So it's plan. our itself to a of how, and be sustainable

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

seller being XXXX. a Yes, you your million first not per see you And redevelopment question, development, if Jim, spend over as net hi. XXX the normalized years? comment about the what Day, Investor to million all-in do are the of XXX disposition after levels made couple next the

sorry, is the again. but me, speakers this operator. I'm Pardon the have disconnected

speakers get give Just us I'm holding. a for reconnected. reconnected. Thank me, you have moment everybody. for to inconvenience. The sorry them Pardon the

just Okay. I being normalized are your you don't in prior question activity that million, disposition investment couple what how over years as do about was million of assets? your of next see but XXX basically if if the development you the not given or to know this XXX annualized levels heard, seller redevelopment much comments

on spend annual more million delivery from be then at Well of to recycling our about a XXX in reinvestment targeted side. perspective million run is goal we XXX rate expect the be balanced. to to capital And

about the right. we're us balance make to part $XXX we think acquisitions in as really estate we level particular about in we big great and in is million long-term clustering markets, relates range, that the the at think itself So business the allows tankers it sheet, decisions or buy leasing plan the right the on is some super will it the the not as that real decision. make and find accretive. that That's Michael, plan. it are granular out hold to Also to

you don't if and what think typically that think We're I competitive for at competing flexibility and is going real off sight where advantage against the I REITs compete private environment going each an nimbleness public that So the level. other be us real typically people will is against in lose local particularly forward to landlords. estate

redevelopment platform of our platform, about and advantage we leaning us as leasing gives back a insight into competitive lot tremendous think our acquisitions. So

and at we're of when pipeline. going become do it's the else competitive if allow to that all pre-leasing example and information aren't be, redevelopment balanced, the opportunities about think more us knowledge doing basis the grow It’s is everybody find you us that that for gives we to that that flow same it all clamoring in those cash a to markets flow. to Just

accounting may on I the impact question, second -- will missed comment But it. what did Angela, the XXXX? -- And lease have you costs will change leasing be

Mike. not No, yet,

million impact the expect be will $X $X.XX We about share. $XX and million, between probably so a

of ahead. go question next Sachs. Caitlin Burrows is The Goldman Please

to Just enough up, quarter. one quick jump in need second one the But to on you finish off, for on hopefully guys. …. buyback I sorry,

might get Caitlin. cut We off again,

bought Okay. stock back But lower guys the in a in the smaller than first a was quarter, second amount. quarter, at but price you it

So I just on wondering what us you details quarter? any tell so second could decision volume drove lower in if

mentioned I and XX% Yes, over closed the quarter the last window the blackout was to related were primarily weeks really mean, million timing the it two the during closed XXX earlier that disposition couldn't that in second activity. when quarter, we of trade. I in of

trading program execute So we the methodical price in recognize a in to as we're to the year, was that proceeds. way program pretty back today, as expect at stated, that close disposition on last we since of to at initiated we've level very a December we continue

Got it.

Okay.

dispositions due before realized it the did getting proceeds. timing guys of to was mention You I the but the now

So, okay, thank you.

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

morning. technical difficulties Thanks, everyone, any this and for apologies

Thank you.

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

now disconnect. You may