Brixmor Property (BRX) 30 Oct 182018 Q3 Earnings call transcript

Greetings, and welcome to the Brixmor Property Group Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure today's the call, my your over now for host Stacy is to conference turn to It Slater. Thank you, you may begin.

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

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

while not ahead our also another XXXX also balance the the team sets up now our well in and reinvestment what value But our consistent continues explain. appropriate for reduce increased for us of leasing, substantially call. value the we've only I'm quarter outlined way, me is to we at Brixmor, third to growth the rate very intrinsic to own. and value cap beyond. recycling, joining report delivery sheet sustainable last management, Thank Investor for and Stacy, it of Allow to that all accelerated December. we that capital you, our we've you thank Said XXXX progress through importantly, that pleased Day deliver of plan

team of we've investment now our of that below rate weighted achievement in beyond with nearly million progress, where several at start our on X%. $XXX close year This closed cap this to a well billion year-to-date, $X expect Let's just is an average dispositions original goal. we With respects. dispositions, outstanding

both bottom First, average cap own density, we it assets realized X- these what for to have quartile and we the in that incomes averaged relates of X-mile rates and as markets, pruning anchor population household productivity. significantly have bottom of improved prospects portfolio. and the cap of rate we exiting our most the Through XX importantly, systematically growth remaining noncore portfolio and our

retail of I'm opportunities cluster a we beyond. identified for recycling presence. and we value Secondly, additional nodes stock involved average an valuations asset by at drove on even has or enabled This higher captured has of disposition our And accelerated million which past least basis, transactions, the shift activity discrete stance dominant us in trades. than to an by XXXX have million XX a liquidity That what would raised balanced to encouraged further portfolio capital over to effort, we has significantly, we more XX% to equity believe more billion might which over have in price been to XX% $XX over achieved have X% asset close higher than larger expect NAV in resulted transacted to those the $X at pricing for $XX year. where what trades. us portfolio nearly

to shares have the also will program under our advantageous. ability we course, acquire that prove Of should repurchase more more

capital of allocation. Speaking

reinvestment our flexibility secured of to accelerate repaid During program. we the debt, quarter, over enhancing our million $XXX greatly

And peers stood importantly, preferred is years we than our and of XQ. our lower which now where end until than maturing with fund shopping X.Xx, the of overall flexibility XXXX adequate half to of capital to EBITDA plan. more no Our to expect at several this center year plus end debt debt stands at value-added

the quarter's Orlando Allow projects, total incremental of balance These impact of an tired of cap Creek, community overall cap the opening occurs of at naturally at of income locations considering quarter investment million projects improve million kind that Not a our did we delivered In specialty included investment only On a Creek we Lucky's value reinvestment NOI believe X into million over new we the center. value generate incremental me that sector where Riverhead, our compression. just of of return of in basis any delivered our for you of $X a to best-in-class of our center the within before stands incremental $XX center delivery center of truly drove its we when portfolio. pause transforming The projects grocer. with that reinvestment reinvestment rate in points Hunter's case a this the apart of Hunter's $XX opened opportunity on shopping the in-place Market, and older, given a rate one these with first under-invested the on the we've over created well-located believe to this leverage of XXX I HomeSense compression Shops X%. front, progress.

million. an pipeline to This quarter, $XXX of additional we active pipeline XX%, over total our to investment at comprising added return of million our incremental $XX underway projects X bringing

pipeline, our tremendous underway some projects with of redevelopment of cap compression now like we Harvest, our The from expect as as million money and we've benefit doing cap goal put, increases Bar we in-place the is quality over balance Shopping compression. From which year. that of through of $XXX reinvestment our projects to accretive anchored of strong a $XXX portfolio far we're Steak timing shop center over centers impacted so shadow are a benefit Point we Turning Importantly, of risks NOI, rate and a include core great our that past to a end set doing XX% small $XXX you perspective, the Investor the or with tenants very of recent leasing which, from the impacted, here investment. duration ground-up and asset we have our including additional where Simply development making property we Newtown get classes. a excess again, saw grocer that in rate our of now adding million important be on note centers regional think tour mitigating the value from of centers are the so to own original now and these of with is at accelerated Center, very new embedded projects upside improving occur in tremendous over I while beyond risk. other impact in incremental deliver we business by retail they foot. creating What what of modest forth Day goes reinvestment will And next

signed of Speaking leasing included at for square value creation, let's cash-on-cash renewal XX.X% X.X of spreads of a at spreads and sector-leading new new leases, we look feet of deals. where million XX.X%, which

an deliver Please This of this has shop IPO growth better our X XX we've in value-added average portfolio growth driven note record space of to that a XX.X%, since to tenants year-over-year we in the better years its our leasing rents. also company XXXX. last in as X% overall signed for reinvestments. as these tenants, occupancy, first points small follow-on we ABR X at which new deals. re-leased in the anchor new record months seeing continues drive anchor we're leasing XXX our For basis leased XXXX, to a And the grew

for filed Speaking quarter Sears XX of protection. end anchors, subsequent October Holdings to Chapter XX, bankruptcy on

eliminating several projects, worked will X%. recapturing or spaces. the on such Sears diligently has since experience team remaining returns Where by attractive redeveloping and can on and terms $XXX Kmart importantly, already million options so to our you re-leasing Sears at dispositions these fate. drive control IPO of we've on creation, over since we also This boxes seen As very has reduce for we We've over returns to our opportunities balance. shortening significant haven't of proactively incremental have Kmart positioning exposure we Sears through re-merchandising us and Brixmor finishing with value half been sold, locations above and both recall, is in completed working and joining former our

XX we to With X expect filing, recapture now locations. our remaining of the

some We and/or leases have the very Kmart Metro these are Philly of X of LOIs best boxes, our active former Sears which and locations, for Gardens, each of Naples, Cincinnati. Miami including

that Our weighted these that is rent achieve expect backfill a and for rents are new of multiple on we tenants. in-place average the to boxes, $X.XX

many you in matters truly money before, make said we've As through rent can basis disruption. times whether

a centers. preemptive our position we the hard opportunity reporting Kmart unwind over came coming a team forward to I quarters. timing put quarters capitalize us to has upgrade on in of remainder anticipated, our Sears on repositions the had quickly earlier look of the Kmart the meaningfully work the this While the to than to you of few

Looking XXX to over XXXX deals yet signed drive that ABR. ABR what to our executed date again, robust, set $XX $XX leasing representing million forward, with we represent pipeline Investor but growth same-store be now And Day. deals continues commenced. of are expectations the very our million deals, of at over not These forth over executed

growth my that my a deals more X% provide you While a the cultural through will, introduced couldn't unwind will well list than pleased this commencements the team rent disruption. me to to likely joined earlier-than-anticipated as drive career. closer tenets, by Brixmor the for I myself visible, the how of I little over throughout core beliefs, robust Sears these sharing timing with ago, years I When guided projected X have timing be executed if of as us X%, of

more. that people The first primary tenet matter even and matters but estate real great great is

this opportunity last sustainable of of Across achieved and center execution exceptional the accelerating capital at the where emerged element assets business, of the the of this leasing, up of beyond. balance board, the communities well-located serve. the own, our sheet being Angela? allowed only of best Each recycling in to has what quarter Over one of we've in value across quality increased our is XXXX vision prudent of the a not all the us years, open-air the quarter X has business. create with our sets reinvestment, us third and management. intrinsic has clearly towards for moving Brixmor assemble we growth And the we facets unique record-setting us XXXX team value teams to

by XXX base the contribution growth from execute growth NOI driven quarter significant Same-property plan and Thanks, $XXX significantly during our would asset longer-dated Day, Investor from our on represents bad low decline a Provision reserves our underlying both acceleration prior prior rent, net top we as loss quarter, consistent extinguishment in quarter expense call. recoveries a Kmart despite to period. and range at high-cost of Jim, year-to-date affirmed in growth Sears were communicated expectation announced Firm quarter. Provision same-property activity that full the with as above net in on unusually the the annualized of the of half share we a contributor was performance FFO financial and favorable line have enhancing rent to while basis was million X.X%, despite primarily flexibility basis, have the and year-over-year refund expectation in much on were tax out Mattress midpoint third point of in On last growth October as occupancy. to the unfavorable by X% we real that third continue the contribution laid the bankruptcies was a December. accounts At Day impacted saw in could business last which guidance were by redevelopment was our accounts fourth current first and and basis unencumbered bankruptcy morning. impacted base year operational basis Investor of per XXX period, same-property base X.X%, the underscored quarter billed and the the for recoveries $X.XX a a debt, impact over XX debt in we've XXXX as the repaid range just in half beginning for point good become on trend. estate debt the increasing third to the a and we secured and and NOI point quarter's to our period $X.XX included X.X%, this in doubtful the during in impact this NOI doubtful year, that second the acceleration positive same-property third speaks in of headwinds

were of approximately As annualized his the XX bankruptcy successfully last of XX addressed Jim had highlighted we in disposing filing, we locations exposure portfolio proactively that XX points in XX At of Kmart basis we our locations remaining, the remarks, the representing over have X or Sears joined. base rent. repositioning years, time the when the of

XX that taken X the points of XX X, January. have another We basis we basis end GLA back representing already GLA take locations, of will representing points of of XX back by and expect the

result, XX approximately As growth base basis expect we basis a currently Kmart points same-property rent growth XX NOI same-property of XXXX. points detract of Sears to or during

also In includes for rent to up detraction Firm, addition, basis both and rent NOI selected base growth expectations XX related current our a points rejections expect or lease Mattress growth concessions. of of we short-term XX to basis points which of

and if from potentially would year pay Mattress most will While it received, as rent, excluded termination treated income totaling that rejection is damages be NOI. expected same-property these Firm likely X amounts, of lease

headwinds bankruptcy significant despite XXXX. we growth remain late from in our same-property in As activity, achieve NOI these Jim X% in confident the ability year indicated unusually earlier, to

Kmart we minimize rent While XXXX commencements expected as our execution planning originally certainly as potential in anticipated, the fourth closures backfill quarter impact the has the these a will in result and of from on early in forward Sears filing downtime begin to bankruptcy more position tenants put to XXXX. with had us than

this have Marshalls, the Commons, Greeneville demonstrates already be which for X the added the of to Five to repositioning the locations Lobby. retailer This Hobby anchor effective these space In you the successfully following approached bringing rent as and quarter Below our pace over last fact, was been industry first setting efficient manner disruption further consistently relates teams pipeline the XX years, online of back noted. with it active executed have leases as and as with leasing to many bankruptcy-impacted have addressed,

repayment We assume third recognized revised on adjusted to debt increase, earlier, to expectation, guidance in does although reflect range guidance extinguishment further we our providing shareholders of reinvestment have during extinguishment debt the additional commitment $X.XX tightened pipeline. Please before and we the mentioned Jim a as loss disposition debt our the loss have we share per growing to announced our X.X% elevated evaluating not note commitment reflect value the XXXX to on quarter, quarter. the also funding and dividend guidance fourth that prudently FFO night, accretive demonstrating income to currently are year-end. additional both our Last growing secured our

repurchase in activity an XXXX lowest XXXX at XXXX, As rate distributions that the to and flat May sector. The to a down Brixmor investors, be the demonstrate continue we growth to we has result of of expect open-air extraordinary. share attractive FFO of will slightly in will in total of one payout despite per change since been share increase ratios

the and significantly balance flow but investments the and are or the they underlying sold of accretive underway leverage, our accretive XX% not are maintaining will base X.Xx, rates, and of improved company's expanding value portfolio value short-term time, over enhancing liquidity. XX% unlevered At currently improving value the growth extending sheet We of have have inherited, over soon also the we available billion we only and reinvestment have we stream. activities same long-term asset the company's by of $X all portfolio. at at the These remaining which residual fundamentally duration, substantially sits have quality lowering cash while company's unencumbered

will disruption that, positioned meaningful as As business for result, continue call operator balanced Q&A. to a on with period this for turn the we self-funded I create we our to plan capitalize over shareholders. value and current to are well on And to of the execute

be Todd your with time, Thomas Markets. with Capital first Our proceed question-and-answer Thank question conducting [Operator Please a from session. you. this KeyBanc comes Instructions] will question. we At

Thanks. Hi. morning. Good

Just, first question.

might disposition balanced and the investment from some just around XXXX of comments the XXXX? than terms you be pace in In much activity an around you additional thinking some relatively more guideposts And be higher expected insights that for provide standpoint? can your would XXXX, what

we've assets for significantly, we've the As of alluded some two, portfolio, fit the has volume didn't value overall with significantly that And much the us of enabled that incremental we which exciting going to which the Whether more to of you selling, of acquisitions value noncore to, leasing we're only after more And in us to, XX% continue we it's some level we've find times, that quarter over markets the double-digit together. and XXXX, at of to lower returns, forward. troubled centers not it of XXXX incremental we share our transaction now great of redevelopment particularly the that, all By as alluded what to single-digit be were actually sets done, reinvesting as to but much amount this Angela able that Because the create get now, repurchases. think for are I and said see intrinsic that volume we're expected and we're sold redevelopment activity, we're exceed, course, low coming up strategy asking opportunities improves impacted. high I one; wait. in the to balanced. it's delivering either not additional multiple in mean, of or

that every into of you the expect million, roughly look X the In it's quarter, the deliver $XXX underway. shadow we quarters fact, what from active. of you'll X/X total have more we over next to see the And pipeline again, projects if volume at moved

us to better. whether Mattress do assets kind our have others, that in a similarly to this So position self-funded the struggle we position to great that's or of take disruption puts to or over and to coming in, make it's others or so. occurring, Firm expect it's be a and be It great year Kmart

allocation. we the I lot much significant understand and in where of you is that work to want expected to of deals, how Mark team work better. And valuation a well got capital we amount about be year XX the long-winded importantly, So of this done but think I over separate answer, apologize, ahead hard and

Okay. or that re-tenant that of opportunity looks about the seeing Sears rents mark-to-market? might sort just And just you like? mentioned how Can that you're on question what opportunity. to capital it you investment recapture, require and going the Kmart potential that and in-place what Can much talk are second the those there? spaces $X size to you're up X Maybe You just the so.

Yeah, I the accretive importantly, reinvestment. mean, it up sets And sold locations. we've additional

several you we sold Todd, XX of said our those or the that some make quarters I XX remarks, already boxes. as where we've there had, ago, opportunity see And If remember to to locations money. in I alluded were we an didn't

what provide cetera. Naples, those. very excited And to we let and got the et X Gardens, Brian So about some of color. are locations backfill LOIs some We've I'll the leases more that plans all Cincinnati, active remains best Miami have, we're on or

Jim. as of us LOI. boxes, in what Yes, or we've operators. apparel best-in-class to And in we've thanks, a little the got grocers, these terms for to GLA value lease Todd, have And the retailers, XX% either set our we further has boxes date Jim at dig done really of to on remaining up what fitness mentioned. leased, opportunity, just for That's

been have - and And retailers still in some of this large that space buys. have open to have the thriving

able deliver demising and team these execute them boxes good on As being gotten Jim remarks, very and quickly to these mentioned at his has plans. in our

a of last over redemises. of boxes delivering So lot CapEx these we've few perspective, the in from terms years a these been

expect don't we So uptick material TIs. in a

we foot Philadelphia, Jersey Miami, we're look a already. them the the in associated our all remaining Cincinnati, is demising months. $XX that to have as TI in of the position. create at of you But in expect some last get work that Obviously, pretty of boxes terms boxes that and piece in the say back square Metro boxes. good We we expected X landlord this And the to these the thing central are, range. getting with feel ability XX where I'd demand within the We we're to though back, last value, a there's be of terms

does really is our plans. this So accelerate all

Thank Okay. you.

Thanks, Todd.

with from with your is question Christine proceed Please next Our McElroy question. Group. Citi

morning. for Christine. Good on Katy This is McConnell

continuing either So about suffer or be just heading about talk the where into of you're feeling there have risk, tenants level overstored? fallout you the XXXX, to Sears tenant or that out may box given can businesses other they bankruptcy potential how for aside, are

Katy. Thanks,

that several I've expect quarters, activity we levels. over few to revert as normal as think that do I said into look last or we times 'XX, forward the more to disruption

think Sears doesn't type to business, year mean to we've of going But that Firm the this that continue, seen low. activity I been remarkably that and disruption. has we're what part to this see of as not prior Mattress

of beyond we opportunity Sears an for us will as look additional of into think, as because low centers, it space put vision into a serve. that aren't being put 'XX, we not in opportunity our company them. us really we value with rents we these as an for again, the get is the Firm. older the it's move where transforming is we're better And to doing in unique these Mattress center community So who we're there tenants. have expectation great the touching, even opportunity centers and just do creating to good, we're an But to And that something us which tenants in-place as for so capital better, and that I disruption take a really, be well we

that it a who's expect with And "Do our there's quarter as of demonstrate every more not volumes got on we've really that want in been tenant more growth peer quarter and group. the vibrant? to if traffic that's at stand when as you doing, centers. I've center, doing not saying every shortage of use demonstrating of top then last of you've been volume your terms the that a you center?" in couple for you're that to talking driving to our So about with we're your demand fail, yourself, and relevant And plan to tenant the for really And tenant years what's leasing the leasing sales, that we no replace ask of

given welcome we've we what disruption. all better. we're leasing own but So think the also we We the make outperform disruption through to set additional that up importantly, done, that

you. Okay. Great. Thank

bet. You

Bank. Our proceed question. question comes the Derek your next with of Please Deutsche from with line Johnston

looks Good expect or small $XX about existing should you signed of ABR Or what in coming I come that, in have And commenced. period centers component in that the just when this like not million of morning. underutilized It was yet redeveloped? that's terms to see we vacant being of shop but online? it Over look space centers? are is the majority

with Yeah, remainder would thanks, June the I online a Across million million between Derek. in $XX board, About half the by be of year say the activity. obviously it's $XX normal second in, really XX and course mix leasing activity next of coming of should the XXXX. redevelopment

higher to number grow, As would forward forward-look increase going to expect the from that pipeline on redevelopment on the to a basis amount value-enhancing a invested continues we have we contribution continue based in redevelopment.

that in new lease anchor. in increases off of anchor, of anchor some put in, And that And and transform some We'll occupancy next new better back points XXX we little deliver year-over-year. importantly, Derek, appreciate small in seeing holding we that average we're Mattress occupancy, boxes reinvestment occupancy new tenants, small to will which to face is to what fact, only - you Yeah. once you, and up when our I strength tenants a lags because those performance shop not we're into those guarantee in we portfolio as quickly. headwind centers quarter have as that back. of we lease centers. of get very because space our in dig there And but bit Firm those points the a I seeing, them XXX shop But shop really you're small the pipeline, intentionally can that the higher-quality question as that basis is importantly, XXX that's beginning of backfill seen we be basis the

curbside just given Great. heavily And more you of your that might delivery traction have on now just efforts retailers? grocers are lot you centers? seeing any notable gears, with and any Can be options, grocery-anchored a switching trends expanding you of that pickup with omnichannel comment

restriping, pickup Kroger We've roll curbside our other investing customer through and on serve with very of resigning out that channels, plans parking rent. to we're Absolutely. additional capital better lot, large which many their many partnering cetera, grocery providing are additional and part been et multiple with terms as Publix them on in little investment grocers the to tenants be ways of more things of they alongside experience There for the the include lighting, capitalizing in in ways this. and store to couple better where able that But are much will is coming use only of which years of will not efficient. importantly, over these be you'll great more something customers to apps finding well-run continue and and to other the pick up evolve the order online adapt, allow think technology, including I but stores see

low-margin customers. store on incredible some think to think is an competitive better these the I to this - are out capitalize it's changes their serve well-run grocers the business. physical So And in how I of figuring advantage

stores Yeah. Kroger just it's creating to I would And for now half ClickList. close have add us, our additional - And trips.

As the little it's way Jim with mentioned, another very it's consumer and connect to investment.

- this been initiatives have. working our these with have that in initiatives major we all grocers within of they So

Excellent. Thank you.

Karin is proceed question. from with MUFG your next Our Securities. with question Please Ford

morning. Good Hi.

about this are had going be billion rate. that talked Jim, on calls. a in remarks cap number I and $X previous an X% to X% opening That what dispositions your said think little you we seemed year higher than

a sold Was different was get just moved? whether to higher? wanted your thoughts little it and rates a Just number that why on have that cap you mix

spreads mix the We're rates by availability X% of the compressed. of it's driven debt been a pipeline in a really but balance and year, seen cap assets. the still selling lot financing well, issue. moved the a We've of in into that fact, little where this tougher some being we of held as we're we've pleased under It's have pretty

it to We this with of market. about I that informed that, being done financing going good saw debt one XXXX, of a what So into attractive we there worried to our capital lot If and for Karin, seeing we was was liquidity thing centers. investments to it strong decision, get were raised whether what we're there. But financing, liquidity going there, would in year. these part in really was accelerate community-anchored be a saw addition

haven't in diminution cap rates. we So a seen

really our been we've the of as us, balance For this it's year, mix. execution moved into more

step plan. Great. Thanks. My next second pay-down the debt the on in question is just

mentioned you secured on next might tranche you continue quarter? the rate also the about to did of Can loan You of the And would the here more you alongside it to talk is like term pay at? debt plan you before repay this down side what some end year.

do Thanks, of Karin. by tranche debt sort looks the lay We supplemental. in what tranche out like the

little consistent lot haven't is end sort remaining end how much quarter, - or The note, up on across all for we activity a that continuing interest up but debt embedded that, would tranches. - well in in it's debt of rate. time of but or timing The so, certainly really see You'll a the probably we much the the as which at that paying X how I little off debt disposition secured why guidance off fourth as range is extent secured terms evaluate a of above stated of a bit fourth X/X% it's of to necessarily the X% interest bit rate, depend into quarter rate disposition the below will we paying of just magnitude GAAP the sort the it. at disposition in the pretty

at this point term would I market. refinanced loan that loan, the likely gets term the expect in loan term the On

it. you. Got Thank

Golladay Please next question. RBC with Wes Our from with is question your Markets. Capital proceed

Hey, morning good everyone. to

dispositions, back you noncore year. Going the NOI in of many, to How end mentioned remained percentage some as tougher towards assets the selling of of I guess, the a portfolio? the assets

flexibility relates capital." and for are that where year, given over all an of assets on that assets give declining other we I we the then of "That's always We of occupancy, and exact some you those we've but to at in this I were lease see the productivity cost right think et saw that work more activity. when balanced There that have we'll the growth lot the important in coming low. rid continue We're momentum. driven prospects basis, as our flat assets, hold look pretty we And below an And It's thought time. ones that got as had our done productivity, our point terms a of anchor at note looked say, ABR. percentage, signaled still have we it leasing and the limited cetera, the thing that not statistics good we'll IRR too years disposition a assets being will far that's to sell. frankly, sell can't that to our you that's in by improvement to seeing at that to we

environment because where are we what we've is vacant fact, in In quite getting an for year-to-date. value intentional that's And space. not you're disposed of occupied more slightly

modest investors' of So capital, on we're sold our percentage pretty as having of But about as very overall now a that. NOI, XX% it's of the stewards focused portfolio. our

Okay.

of know looking opening How have this landlords I get Sears waiting the store mind-set has been changed? something sense Is plans? the accelerate Do retailers - open may Now the at their it. for for? they they've bankruptcy, lot a you prepared the of

a to these demise retailers it done few on demising over execute with business signed retrofit and retailers those did necessarily if and job specialty that prototypes; anything, bring it, of them this And this with, think a all back landlords working the to and continue have the working I to past box up whether retailers those in think, quarter, continue operators. we them things with been ability buys. to we've have and Marshalls to that changes open retailers; from quarter, don't a market are retailer been and I mind-set. the are and leg like great who years, thriving X our able us are gives boxes: us, with frontage, Five doing consistently terms grocers, do lot of Look, for operators it this whether like a delivering online in we the strong better it those have Belows and that fact with X these up leases specific to Ross to we've of a takes

opening to think terms now ability in operate plans but and necessarily So out their an changes see execute I don't their it from perspective, they spaces. of these of

I it's opportunity additional think So there.

All right. That's all for me. Thank you.

Thanks.

next your Fargo. Donnelly question. proceed Wells with with Our Jeff question is from Please

still discussed X% Angela's basis about are growth something NOI in plan. morning, original equal, you to of are do all as think bankruptcies next end the with re-leasing XXXX question potential range? growth follow-up, 'XX, planting, pushing confident NOI you the in anchor lower your believe top comments, Jim, to combined you Or ultimately theoretically a because comp at of points company sounds could to range? in you of and to X% anticipating you off going easy you're the Good seeds mid- you're you're And the else within the spots have X% based NOI maybe the in that kind could do XXXX first X% redevelopment actually it of the NOI guess, is, Hi. I folks. 'XX? X% the taking high you've in for XX year towards range guys on that been like guess, the position come to the I that growth for

up part, the year, we of but Jeff. rent based on it we'll I but we were really next relates Jeff, will And to of more my we of signed low commencements. be the as really confident 'XX. factor robust the XX achieve the I critical of commenced remarks, us not points range, basis that the we still feel yet that growth positions in range, impact it mentioned do That have. a as XXXX, all move were is leases that that think What point does in us end setting to timing for as conservative obviously to in

of another that is commencements year, we beat rent So timing next day every worth about $XXX,XXX.

drive you So we're board us as, also again, rent, is latter growth sense a shop really with it of for I'm make follow-on and the good of better it local part as we're it your impacting tenants, and kind where these we're that seeing anchors. continues community small sets anchors, traffic coming serves. better very it things question, XXXX. much center And how much up the And well of that seeing the more how on to grateful credit, better that gives relevant to to

range believe apologize, low the of I in do that confident answer, we it 'XX. us still up the end feel long-winded growth sets but and better So for in

redevelopment you to projects maybe you follow-up the just me both mall lot a are think as have a construction labor that's But think in well XX themselves. the XXXrd have And if pencil dynamics a that asking a bigger you hoped? won't as guys at up I'm asking wrong, of that there and because these quite about as just is, in tepid the maybe you same out growth, maybe when some contemplating, just rent pushing curious months. if out the like, little correct certainly might last costs, rethink rents of or scope there's are they is rent the change markets, XX the of I been some like been growth maybe other there hanging projects you the view that feel to more of in setting I'm has maybe materials or

we Jeff, to of particular we outside Interestingly, huge North less in in have an opportunity embedded because market, basis the XX points Western opportunity real rents. expected what including ABR but projects matters our what on impact Miami, it's to a Yeah, to in us happens including put a that question. regardless trend been in outperform for impact work. than Dade capital Cincinnati, in Construction the gives the upside basis returns Hills as are. have it costs had of a has particular, great typically Almost assets

we're a driving But type return instead it's the of So some of again, rent X.XX% the maybe doing seeing been and doing a really that. equation. XX.X%, that's we've

rate The is is that tenant productivity, lot rental underlying saw folks our other significantly in some of that we invested We're at lot did outpaced interesting inflation which see rental markets, who a have And markets. I the in those putting top you in Jeff, ABRs think markets, of too. that not the pressure recently inflation rate of markets. a high thing, on X those in

We of have Northeast. the one the largest portfolios in

I'm with us we're is talk costs time those Jeff, pipeline. about think I that create for can but that a portfolios construction just largest know, of on into about to across other getting one low leases we we rents. is But us lot flexibility getting have the California. signed, terms of in even incrementally, both we're We but hard of that have create And I construction when point got in rate. center. in and just cap rents here getting you're our the markets, active. can Jeff, you the give low hope in value. our that the I value, a negative exciting old the Kmart is: those some And flat that's the this on here et cap fact, costs rate period a in box of goals Marshalls cetera, a that and we that the and an but what's It's improving out out-achieving not the our replace improving Sprouts rate total And opportunity We to you're TJ, running really even that one move And thing pipeline, shadow see ABR, so ahead. to rising with shadow you on

going rent business where started and how this we're basis with I matters how relative in starts part And I it of we're truth So basis. again, we like on like money. if that to fundamental make you're a positioned. that positioned

guys. Thanks, Great.

St. question next from comes Haendel Our

Juste with question. your Mizuho. with Please proceed

Hi. Thank Good you. morning.

of puts of that dispositions bit still understand transition a takes. earnings pool XXXX given redev on and basis here Jim, last Investor prospects a is same-store your December. about So guess, billion Day the selling year portfolio's since basis, ramping growth the how an of $X that after to from long-term still from close just curious, I year you're I and earnings a the and assets NOI this volume thinking same-store has and various

all a generate curious and settles - I'm this state basis FFO portfolio down. what more basis guess, steady the you noise think I NOI So same-store can on the on a all once growth

as right next pipeline. by go unlevered additional also to Haendel, ability reinvestment X% we've on growth driven that at really you to we doing, out with laid the take rate the X% year, capital that, FFO we've into alluded that we're work being Investor gives that And kind whether is what of recycling, to, portfolio Day. be it's what the as or think run growth things basis, all I going done, But flexibility us in we work growth been our putting in importantly, better. line the deliver the deliver same-store forward and X% X% balance and into which should the self-fund sheet all a to of reinvestment

in think that forward if so some bettering to this quarter really but expect towards disruption Kmart with what's happen. to And happen we again, track other when how and good laid they're any a you given think that about dig as position, - go low And rent we element we're we've these of see certainly achieving basis been key out, in to is did us I to Sears didn't tenants, record can expected I outperform our forward. goal. occur. And it what we We all you pointing goal, great into instances, and you'll expect it

me You what's and doing thing, sector tend that other shopping is think just - all is and to interesting REIT other the REIT. of the one we is you that on one made what REIT versus focus center

don't open-air really and the really plans. shopping And this the of each matters actually disruption, that XX% much. prototype as period through fact platform, with fact these of things XX% is the time of tenants, the centers. that budget we have fact national opening a own store deliver We boxes on to One these the you can relationships and ground have continue you to appreciate got to other that to proven with new you the retailers evaluate that on you to compete probably

of really here, to outperform And platforms the disruption. that come team business positioned a to I industry that so lot together ours, as within a are relates going as has the such is it such think through as

like haven't there. thoughts quarters couple your Looked stock buyback front. active of here follow-up capital on the on you Appreciate a A allocation. been for guys

opted Just and to debt the having your with today dividend? curious you back some even where buy minds that stands in raising

Well, attractive we million looks to think It than a range. leaving I the total bought to-date It million which more quarter, this a did us over is about $XX back in $XXX today. little about program. under $XX of repurchases, program levels $XX last million repurchase lot the quarter it

ability is will And type to buying look attractive that. stock our The quite certainly to earn on so we us. of that to back equity yield

debt-to-EBITDA, Importantly, we've while built also flexibility do and that the our bringing importantly, - to down funding that prefunding pipeline. redev

Thank you.

of proceed Our State Advisors. Street question. Global with Frost with comes from Please Scott line next your the question

the about talking for maturities. you Thank debt

just at modeling do revolver is your purposes? balance to year-end Just be you where expect for

proceeds very Yeah, Consistently, of or it's amount and a drawn the and with as drawn debt up the in end we secured either end little - managed we revolver part disposition on - of no debt the mentioned good amount nothing on earlier, paying revolver. the will I down. on we have depend question, up it

or it's over certainly the with third I in below $XXX where the end of million at that So that quarter, level expect would line just it was at year-end.

cuff loan that Is senior term a that that capital and a based your the the And issue to so comments. you going in term remaining right? is debt to And why you're markets said previous unsecured? refi not there loan or market. at on come reason - million $XXX about I

the right. be We're you're bond XX million would the to it term it's over decision. markets on I market both loan. term really either/or active relates to to market as months. that relative to not loan say unsecured next $XXX What There's the Yeah, an left us, for is in X the likely

expect we in capital issuance some unsecured debt in senior see So markets should XXXX? to

Yeah.

a Can you give us range?

it And to manage to. put we ourselves point never when that said, the we forward, index-eligible a have we that principle, issue our what's so. going guiding really to With for Well, at have we capital would at particular to expect But time. position XXXX. conducive point think market is an important the don't important us in will issue do that's importantly, range approach as appears that in to in the I us I I some most think in

Great, thank much. you very

bet. You

question from the your next line questions. Our Linda Please of Barclays. proceed comes with Tsai with

Hey Linda.

Hi.

Over spread X XXX-basis-point been leased a billed. last the and between quarters, there's

Mattress the an gains and dispositions spread Firm from and it closures? Sears the from refinancing FFO not the much dilution For offset of increase and costs XXXX, narrows, perspective? will If how because can of

is this Linda, Brian.

a to we a we is I lease what it have quickly. have first lease but think Just space billed got versus been it also from standpoint, lot that able indicates of very up back

does tends that typically, wider tighten be in back little beginning With So October and to a wider a the typically of year. bit. bit Kmart, boxes from at getting quarter. tighten will it at third the to this time year, the be and in expect fourth here that of next And that

rent year. big quarter just Yeah, standpoint, let as by one signed $XX million the next a of second Angela in, commence the $XX weigh million about will point picture from to mentioned, Angela of I'll end but of commenced, that not highlight about

business space, additional on vacancy higher. Sears certainly occupancy reducing and standpoint, you as that in that pretty an continue get then back most which the be and happen. meaningful. Hopefully, is be Kmart, the which result will takes whatever we take that to team occupancy And billed as Brian that mentioned, expect a the is of Angela, So we're spread. team We to leased productive leasing

points first in trajectory I XXXX, about and think Kmart you Sears NOI associated weighted, And back-end based XXX timing to the by impact Right. of and quarter. Mattress the again, to relates as on same-property the that basis the FFO end obviously, Firm. it see expect of should as

talked have X% those timing than on situations Investor communicated which has in embedded we last Day significant think are about more to range certainly XXXX these. expected. we year I X% the We're with during such at a originally might as we The that year. impact happening

again, but see feel back-end weighted, confident in next year. X% range that expect for you So to should it

the Mark, at what's that then the them about how team's demising made sooner. driving more Can you and boxes about just you process? bit earlier gotten a comments And good delivering Thanks. talk some little

is Brian. This

think back to and Jim experience with what mentioned. I these, it's our highlighting really

platform loading And been delivering prototype. we've to the relationships gotten operation good been retailers those right? different tenants. national a can the on side teams, as dock operations deliver working Understanding and live formats, certain with developing on a we've very box that they our you have type to team this, sometimes flexible has frontage, at you up able We within a with for one of docks, few a and to got like have loading split

bring Ulta, we've and and Arbor, as years, so been we with of X an deliver to what irregular like TJX think where And that a us to Ann lot - deliver Trading able Sierra over close online number the Michigan to we work as these these a going we've forward put done in is allow Post to working those with to And while will boxes HomeGoods retailers an prototype, concepts added box. faster. to in experience

Thanks.

comment. this There the to are At Slater like closing to Stacy call further questions. for back turn no time, I

everyone week. to of joining We for you next forward Thanks many seeing us. look

you. Thank

conference. today's concludes This

thank You you and may disconnect your at lines participation. this your time we for