Brixmor Property (BRX) 12 Feb 192018 Q4 Earnings call transcript

Greetings and welcome to the Brixmor Property Group Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formation presentation. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Stacy Slater, you may begin.

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

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

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

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

shop the portfolio accretive with pleased consistent delivering morning of report anchor were on a in a capital Through you setting, Stacey. fourth and teams' we even leasing on for compelling really better the now, provide in X% to bankruptcy and growth leasing, that set reinvestment thank call. and of of the the we headwinds color strengthen and previewed and space our Kmart importantly, the on plan Angela recycling comp drag. short, XXXX some opportunity I'm in fourth XX a that's value below points with few to the quartile XXth. the as pipeline created Day minutes, will Investor our last for Kmart created at Thanks, call. bottom quarter a December quarter. growing how set the Good or small the accelerating coupled our a joining we've for prior of spreads, additional better That recapture impact of record our conference In balances, of forth XXXX In XXXX ABR table line NOI accomplishments quarter, than tough quarter's beyond. our and basis

the and delivered centers us those with uncertainly those to able to plan basis transform those returns. perhaps is points hold range importantly, to recapturing that we advance XXX us, for had provided X.X. originally we're the of However, full most drags, But Kmart eliminated top attractive boxes creative even we will year X line contribution very a reinvestment from allowing of

we For X.X new signed of feet leases, leading rents XX%. renewal the a of sector $XX.XX, achieving average million and comparable spreads year square a and of new renewal

the on fee X new XX%. spreads leases average Our of million

million better additional tenants. XX with over created we Importantly, of rent

bit dig that further. me Let a into

Five recaptured achieved smaller new through these a growth Fitness, Marshall's, number also store Below, growing our was relevant anchor expect Rancho, see XX.X% of Schnucks, share and trend we in bankruptcy. Ross' we we the growth for El with beyond. others. like on hundred continue openings, XX million to to Fitness, Kohl’s, Incredibly, thriving this At quickly bring a year Sprouts, X.X Home, tenants Line, accretive of LA many signed on record Hour leases Cinema, are Many Aldi, points that additional address space record We feet. Maya First, record leases basis communities and concepts that triggered Total Burlington, recapture our serve, follow that of of this signed Continuing Ulta market continue and anchors we portfolio. we weaker of and new at a shop reinvestment small XX to leases square achieved from projects believe occupancy leased boxes several as

XX%. of tenant in one two our recaptured the quality improving noted, our you over the have leases percentages led years we lowest be progress north our the now in at to over on here of risk our space the older some average peer of well in As last demand bankruptcy and to tenant group. have at Demonstrating located centers, through LOIs spreads tenant XX% of has

bankruptcies also basis. our on disruption some As great track a research, present compares have It of can important in your of favorably. you rent very a that noted opportunity record underscores you capitalizing attractive very when also have point

production leasing overall but the between over largest of rent beyond. build XXX XX That since lease signed and the setting has points basis and for this GAAP of now not year expectations commence much Our IPO. represents driven yet our million

have of low place to rent. a reinvestment in we've average remained incremental an of capital flat This creating by are you many discipline our This keeping million over at XX in of relatively with leasing well return continued pipeline. and incremental value. million productivity drive in capital reinvestment XXX average strong terms, leasing term tenant and of as noted, X%, delivered year, we and Finally demand also line importantly, leveraging

our our to X% active we returns. a identified an throughout at portfolio additional commenced attractive XXX over our of opportunity and with pipeline billion million grow $X projects return, a million pipeline to quarter, bringing at This of XX continues

on discussed active value with million to in Investor importantly, I returns, projects incremental expect XXXX, what a future our delivering this point but projects note impacted. are reinvestment already or basis up to gearing that important improve projects highlights are the over the only of with Simply over drag NOI, It's is very which deliver execution occupancy, and over this our at We the intrinsic owning And centers centers creating XXX communities year attractive last our the towards deliver growth. how is are multi-year of we now put, have not redevelopment million our XXX that on we highlighted serve. grow will moves of plan for on in center delivered XXX pipeline investment which Day. centers the of quarters' we they relentlessly the the of continued purpose pipeline continuing place this offset our call of that

points quartile an unlocked larger our versus attractive NAV We we were additional to in not captured on have million also also achieved average. XXX valuations been these our of dispose that portfolio our portfolio and of that trades, significantly assets capitalize year, only over this in over XX cap nearly liquidity and population assets XXX on densities market in executing XX million over market raising the implied rates. rate would proceeds average below are transactions, portfolio billion cap basis XX average we a an By inside what where of shares one-off as at with are incomes We achieved our that bottom trading. to

over cities, our XX that supply We markets strong to us and we underlying have also capital focus demand believe allowing exited fundamentals.

value no sheet continue provide all had added in debt weather flexibility that times, times debt billion to maximum now straight million FAS adjusted rents us hardest We X.X for also XXX intrinsic maturing balance X repaid to value our our XXXX. plan We XXX. built portfolio. EBITDA We refinance of to the X.X and line you adjust if debt, our until reducing an approximately or to in nearly

You COO. an principal CEO, regarding announced prior also February that note which to SEC the of with have the of that we we and CFO and reached and departures lead in events XXXX agreement the

there as into will for agreement proceedings this previously to agree settlement matters Year, the are sum, against well and to to this we no pleased weeks be company. In we of New additional focused actions class We’re believe as few this bring. and year relating a expect to that these the excited what the just brought announced,

centers. to Our be demand retail continued our partners to demonstrate in

growth Our value. leasing our drive intrinsic reinvestment is to team to ready efforts and deliver Angela? additional outperformance. importantly, our most energized continue continued and And in

and redevelopment market secured private and XXXX continue strengthen points debt comparability, Despite expectations deleverage the FFO as enhancing dollars impact disclosed contributed FFO on far quarter long-term price execution previously primarily accretive our property in and to attractively valuation. basis share our to project quarter base to same to was debt loss fourth good our year extinguishment, the excluding Four the reflects original and settlement fund capital per attractive sustainable we value of Company to repayment $X.XX items in was our of on pleased raised non-core of NOI share responded at of per a XXX Same $X in other high XX basis despite the rejection to position headwind the last as strong share. and leasing of leases, share a growth the trend for $X.XX the XX growth detracted billion reflecting XX morning. Full debt nearly addition the Sears property trend cost another during stock SEC reinvestment loss per through share, per of X on repurchased the excess that share, of $X.XX and I’m was of FFO which execution due which nonstrategic fourth Kmart sales Thanks, the the productivity base the during versus $X.XX of extinguishment. to the per per basis we having over executed in range on growth. NOI to in our charge of points months quarter. growth $X.XX XX report to strong quarter, experienced SEC quarter XX points to $X.XX and across platform related asset of Jim, guidance settlement original

detract discussed, locations to in has X.X% quarter. from the and value the negatively Jim significant and for base a fourth In XXXX. provision these course from in redevelopment in quarter and will recoveries negative of refund estate in detracted Net by additional assets. opportunities while fourth the of back believed net that space substantial on XXX with tax the XXXX line accounts, plans strong were growth real As underway with remerchandising of growth in growth appeal take the and over of and took offset the quarter this by year-over-year basis we this basis same positive quarter of recoveries during unlocked three impacted quarter expect fourth all being which the points first doubtful We're performance locations bankruptcy the nearly was property total, for year. strongly creation well six we back NOI activity

debt historical Sears versus XXX recognized run basis or of While the XX rate bad points. revenue provision total for debt in prior expense low level doubtful the of expense current the quarter in points also was to bad our basis XX by Kmart we unusually bankruptcy, impacted accounts of periods. Only an

the view guidance XX the range for that base serve primary the a Kmart year as original important underscore comparisons included Sears a have of basis their our points on reason of been original You ended and line X.X% growth may it's our quarter basis on of debt, term were range. XXX bad and X.X% is The same and longer range most on in property a absent year-over-year of with upper of points. XXX NOI of year. a growth NOI growth original guidance metrics event for XXX the property the NOI inherent as XX our recall it volatility half bankruptcy midpoint XXXX performance to same the acted items growth related to Same and business. full difficult which point contributing we bad debt that property to relates attraction above with XXXX year that basis These a our comparisons where to second growth full was NOI property original half rate in disproportionate fourth as long-term of why point in with have would to X% the same critical NOI difficult rent impact an basis reminder the the somewhat within basis drag in

last three the of opportunity Turning a from accelerating to community to XXXX advantage as for over results done that will the see this years has full portfolio. opportunity an take work to been be the create in coming investment position to the platform Jim year embedded highlighted, the

recent offsetting range property drag repositioning the pipelines with same the growth that's portfolio more contribution of than for growing of XXXX been the completed NOI guidance remains incurred across redevelopment from as recently the a at future activity. Our X% redevelopment result the work and additional in timing of the midpoint bankruptcy

the property same range potential guidance to for lease is growth XXXX. activity. disclosed recycling and change, the The accounting $X. FFO a includes and XXXX as impact the activity capital in also of of non-cash GAAP this impact share, NOI XX continued per Our reflects addition a disposition previously also back end impact well adjustment of significant in future the deceleration $X.XX range strength rental as in the weighted to

disposition that to we acquisition and activity stock solidifying made as proceeds expect the focus substantial improvements our pipeline, head We we year. lower will volume be such sheet in from more of capital with put our balance The will reinvestment position coming into last to the year repurchases on respect a and/or use balanced allocation in be us activity XXXX.

result As NOI builder the expected to the Sears first half it property Kmart and please as relates note bankruptcy, in of the occupancy the a same trajectory, to earnings year. is that trough

before second the reaccelerating in as first completions the also redevelopment Following additional the accelerate. expected half rejections quarter in

out quarter to positioned the recoveries previously follow in of the second or operator which call base the the we bankruptcy we our activity execute growth our the laid would balance significant bad asset note also With redevelopment execution, debt activity on Q&A. second occupancy rent XXXX. developed from we a our that to the enter stability the contribution as amounts recognized quarter our strength the I we net that, turn of the I'll to manage capabilities allocation the over the comparison we occur and for the year. the have philosophy day to year from demonstrate in contribution sheet. expect most capital respect internal investment year believe We XXXX We and will of challenging will the payments plan of cash throughout investor over with at XXXX trajectory and to business base, detraction with In ago. well potential coming the summary, reserved

be Market. Our comes a Thank first Capital we question-and-answer Please Todd you. session. proceed Thomas with question KeyBanc conducting time the [Operator question. At line of this will with from your instructions]

suggested other Last more better little clarity that impact for set quarter, you Sears. mentioned the but XX activity could you and that would Company a XXXX in and some up Sears around it growth have

You're a some for few months into negotiations tenant. replacement lease

the of about begin? impact for of activity expectation XXXX can specifically Brian, to maybe thoughts comments little So in on you you for can bit and last general the then, backfills Kmart touch And a the for mark-to-market light might your can on timeline on some early Jim, this commencements how quarter?

part. first the take will I Yes,

progress got on lease roughly Jim Jim As mentioned, Kmart so that many the GLA the meaning with of remarks. of uses, range that made LOI we're We've the pleased we've tenants mentioned at XX% committed, far. of opening with the in executed least or final his

This Below. expect year. which we boxes and in tenants later spaces end we with of announced will Hobby we national the announce Kohl's at towards of London, Marshall's the heels our the with deal on Greenville, announced and Five we opening start year other the to Lobby That the that Kentucky Kentucky, comes box quarter, those this

demand, like the seeing and and still opportunity on incremental about XXXX. of boxes, towards line excited half Kmart the bankruptcies, the we bringing continuously that basis, The to and position us back to ability then year the teams place because to expect so address with From get just Cincinnati get announced be Metro, year. places returns these the demonstrated the continue rents that what in not been and ahead by we're quickly surprised excited been retrospective, the Miami, in the Kmart a we've of Xx our them have on back we’re see online a we over we've historically tenants we're when it. we’re Philadelphia throughout So, XXXX to boxes in in by expect we

excuse does have would Todd, XXXX the me point, just set At up this that it with boxes add beyond. and us And remaining activity only importantly, for uncertainty. Yes, of eliminates well lot I two Kmart. we a

in of options that We the Hamilton, of already interest box. a of New negotiated One elimination which in lot Jersey. have

into last has the over getting on to opportunities that they balance the up are also serve. center importantly boxes, setting in we're we working implicitly great up and improving the boxes, years, been value the you've opening bringing and ability these XX-year-old to what communities by drive we the on not we've leases what only the as So, returns been uses of importantly, relevant two suggested, get these are Kmart

about ourselves portfolio. of talked and capitalize other timing up the quarter, a think addition a bit we actual is to we of been opportunities the lot year-and-a-half thought, as opportunity last we was what the in So little but a set than we've throughout what to for the last intrinsic growth bankruptcy great to sooner working

for terms feel point in move you about for insight and which X% year? in XX, what last potential additional of incremental much or you Angela, with much midpoint out then this you there said NOI consistent or quarter. do visibility have reserve in And future the How speculative the how same-store is additional And fallout? at growth is the bankruptcy

I I would say, reflected. we think Angela? that continued right, disruption, and first expect

to because would for to that. ways disruptor I number budget the just retailer we It's always additional point disruptions. of tricky add the Yes, pin variety of

bad from basis additional We employed From each do taking model kind the a we’re that. top from of top make XX retailer came total in we look spaces course of So XXX as Again range of this disruptor because reserve the debt in prospective, budget we’re prospective. there disruption. portfolio, debt so year. at space that line and we And as it on well of we of phase we debt every a during is a back zero-based about bad budgeted then, for like -- portfolio thoughtful the the points we a at to guide prospective, consistently bankruptcy reserve. end despite lower to the covered significant of revenue bad and XXXX, activity feel a

it’s thoughtful very X% very property that incorporated the So, and But comfortable same we in Jim’s the our additional I point, we think retailer NOI midpoint deriving disruption. that think terms process disruptor a feel overall range. range within of I expectations to for have

you. Thank

proceed Markets. question line Jeremy from the with Capital of Please with next BMO comes Our question. Metz your

guys your million noted think development given the in obviously store Everybody quarters. so. XXX don't day, talked impact impact here XX XXXX or you've the plenty but at next in it You the same had of NOI. months on huge increasingly stop the disclosing recent a about of delivered end in remarks redevelopment activity I the

talk quantify what then expected So that sort and is on maybe about impact same your X% of have year? decision expectations help can actually to you for store

We’d love to.

be think about renovation and our opportunities it Jeremy you repositioning importantly, to in out As without the bit on It the from to to a the are in portfolio to the redevelopment. plan anchor a really end cap in you our and facade gamut, where business forces and And redevelopments. pad that be opportunities a the significant parcels things the of to that we about when provide difference the rolling to detail breadth reposition decisions of timing reinvestment to the kind of out. us given are seems opportunities have runs as larger distinction reposition and all we portfolio, intrinsic anchor

portfolio what basically timing into capital overall what it our So, better the that's you is, was we that the impact thought aggregate and show to is where is. it going

NOI about it intrinsic step you for important. business. includes It’s about very just So, that’s number thing the basically opportunity is we I clean entire this, again as because we estate thought would just it's how which I in real other really the think But portfolio, back the really it's itself. think and is. that's And highlight really overall it, the a

taking pad core changing and return across the is nearly a excited type creating centers I redevelopment have we and lower projects. their the completely. also through anchor its half impact that This the project. end a we its spread it of is mixed-use stuff, about down use. not an love We’re not facade to assets drastically portfolio. ability of cap particularly business One because larger everything We're granular. thing sort not it's like risk, large We're see repo that or I I’m accretive from again it's reinvestment, really higher to

balance its disclosure So, on, we're we’re us being were to capital core that the we’re putting you on also that and of importantly, impacted Angela? here. showing money it think and that But to work our the value creating that's of somewhat the lot making was business limited, particular a seemed I center on again the

point legacy would I'd -- and heard up a way match that disclosure Yes, that you've inherited just the and overtime. really and and agree business would with talked was I Jim out the that Mark I with that. we Brian disclosure really didn't I that about

in disclosure which to If of our not year, lifecycle redevelopment. and recently redevelopment also the talked Day order shown process future talked of in of Investor the was, which pipeline that but what of that about that you pipeline teeing last for and we we're we everything other prepare in next the what readout incurring back disclosure wave think was about to is were future was just None the part completed of currently up vacancy before. was the

made at disclosure as that way XXX% the exclusions and redevelopment think portfolio a reconciliation Jim points to we you've same our the same nearly look pull in supplemental we you the of the detailed if of from the glossary about try Jim us the very disclosure from the more I our in seen, effectively made, the and reminder, are see the show that manage supplemental point we've there you think few to property externally as the you'll number. as property tie around. business And total and what that didn't well. including to always it, that's number think about And guided that really always we communicate So

just statement. broad sounds accelerating here continue think to driving comments. you a role I bigger a all fair and your like is opening a that level. fair I Yes going highlighted It that. in growth of in that's play from That’s near-term to mean kind It

board was, as broad when how it's of is, Company but us excited again not it's a all on we part opportunity base gamut, the absolutely, expenses. came wide Yes, the what

for And me. then second

asset obviously expected, much sold Just firms XXXX. currently market we accelerating How you in further sales, obviously even you if less could sales just see so clean XXXX in markets on terms much the you comment more, redevelopment? pricing have maybe single under you that had Wonder that initially of how more here on today? expecting in could if to out for bottom is up contract? capital perhaps And tier that some in and warehouse of future then, asset

We always reserve It's of transactional the we like guidance things opportunistic. right to why on activity. be pinpoint part provide don't

we think what impact So range did be of will a capital provide we the the from recycling.

be advantage we important. taking And of terms that's bottom know year in it were portfolio with the the think point the than and is we expect that the second for where a In assets. really thing liquidity and to were of that we be the where these I the XXXX. opportunistic note important less found to that we of of for lot I is And dealt will we

So, look with forward, of and assets ones weren't as be be what long consistent of, going and we and with was up to the dealt we've trying has to that set 'XX to other balanced. is. I in to beyond hard we make I'd our prepared all of many allude And 'XX the term comment in a remarks and plan work my more but few sellers we're that more just that have us

some recycling. I plan long of think term business has capital good degree that any

we've to work the balanced of in in it all be So forth. in up done that sets balanced so 'XX 'XX, and 'XX because us

have exited of And growth very us. opportunity pleased as we execution of some single focus we strategy for greatly frankly, because to the of many markets, the be on remaining will added the has of relates please it that it the As I'm those have. sharpen that portfolio, and asset we've value the markets that the and some cities team understand simplified of as the

Our your Please comes from proceed with Schmidt question with America. Bank Craig of the of question. next line

was but trend trend when spread you're over wonder leasing double-digit of the XXXX. at you and tightened the remain in leasing from they XXXX. what this what You combined look expecting spreads I course that driving

of really was the year, of our and Part facilitate part in shorter-term renewals quarter, to but to be spread we that had to renew on for leases latter that some the which new driven we mix the our in renewal executed do renewal redevelopment, the some drag would Kmart in see on in that by strategy of forward. of to we average for expect Brian's year the I also to example that which doing range terms and we've teens been you Mark lease in importantly, point the what some going new XX%, the embedded mid boxes. commentary market spreads for the

So, still seeing opportunity. we're

One of important. we're is, excited also really right, shops, other the about in that that's the I’m small things and acceleration driving

what we're with boxes I You’re that is we're it on you’re portfolio. see shop doing to small rents. this record quarter beginning highlight to these larger as relates And frankly, as throughout at we're and going And the reason capitalizing it follow-through and new to the see for anchors the that setting balance.

and year couple with I'm to expect the excited our how what that leveraging I be next So, combined improving centers. we're spreads years of it’s last been over about pretty for consistent

say. and just online pickup are that with I'd stores? second in How is then in pursuing active And by for groceries the And the cross longer-term what increase? impact shopping

to consumer, center it to creates the and more partner, the traffic This for our the investment more a and obviously very almost been several parking we've more Brian. glossary partners couple this. us of with none. encouraging for rest add very of It’s active been We means engagement sales give very and a They've our and our trips is current spaces retail low partners.

been We've roughly of locations. our have We half AGB. list click, click progress at this doing with

Stop working Shop. We’re with &

with where So Walmart our retail we traditional add grocers across as doing well. working can, to we’re the it with spectrum, we’re this

much possible. this we’re continue as So, going do to as to

also service people shop? have The seemed are money to going actually little and somebody up I that aisles really cross a that glossary. walk using that I to down to saving of on this time guess be the to more are their willingness focused pay noticed is to limit they willing

actually It that coffee when the our And actually think better focused grocer is them and of Theory lanes Orange within that at do customer I there customers is adding these the over executing on program is at how all groceries to to cup the out a pickup you improved early Brian that level these times some have the of with often this at customers of What’s center. look between the grocers it. on the experience. store by we interesting I might jumped Panera. or also work of and of interaction are the shopping And that allow occurs discussions the to point, particularly upon are groceries, so and that, service, pickup love

and think net thing that. we is the its would on this last I So, say positive

retailers what’s be Kohl it to recent to the low make sure downsizing format at that we’re pretty are capital And doing shopping are think as want that doing our at we're have in, in. continue tenants on fun to Burlington, now to the they I of are that do space, them strong other the dividing things demonstrating their to getting thrive which effectively to format, and that is rent. format centers adjusted we to boxes, to evolve, a we they have that to be want recent that, we want them adding to that, try do downsizing supportive going importantly to and flexibility going like off give to we’re our

we're money the process. in So, it do and to able

is the your So broader I’m little to but make than bit point questions, that. our trying

flexibility that you retells to to importantly your basis think a were thing the I rent it landlord really important is is at good of openings, meet the evolve the the you the if a needs to that and going and have that the think I new market look capturing shows tenants at we're and job on share you that. store doing very continue

about I excited threat. it see I'm the change. don't So a really as

clear these informing right But kind some of about will its I’m plan. you our I it our part capital again what are that think are got always and excited of implications instances part changes be of decisions, certainly for in recycling be bringing. why

Thank you.

Greg your with from proceed Scotiabank. McGinniss comes question Our question. Please next with

done if was bringing address there rate. ability XXXX? to total extending term, EBITDA or Angela, And debt lot leverage interest a desire I'm debt down blended the to an this proactively of there's year in curious, work

where this progress us I of of tremendous right terms we make of to working did the across position Yes, putting you operational tremendous capital created have sheet, the of think balance flexibility no in expanding at number, secured not down but that type balance a a that amount that year, XXXX, amount all your until we sheet of just the extending financial on the point, a flexibility this EBITDA during, point said like stock. debt maturities and debt repaying in

that at over in done is we So, getting driver in going in have the going pleased terms in make of repositioning benefit all to down to leverage of we we’re progress we to come additional a that see now of And and comments time progress really about to committed really where do made Jim work year of XXXX. fruition, all sitting couple with work significant progress of how think point six additional the forward. of numbers, from we we’re coming a metrics be times going I point EBITDA to last the is the while you’re remain lot growth. to redevelopment this earlier the going on

question. second the so And

debt NOI on to translate that of How XXX And basis? an With much [indiscernible] sign does on bps. expectation closing that the what's the gap?

year is over million NOI be clear not see what a $XX to signed over X for last critical. rent it for this grand signed mentioned driver the we our of I because is it of rents commencements call, to X that Timing a going those and we yet be deals be on going up of worth on quarter, year have is that about average. commencing that’s and we growth hundred but of year. us to next been this and couple Well, to day commenced, next and every rent

the date that continue Kmart, Angels and build expected, point as to we're our drag eight visibility when year on building But as of have helped to of we’re have as of Kmart between lot growth. to the again, drive those a the or it's sooner the setting six dealing I'm big contribute we a issue able at over is we leases spaces that part the speculative the the assumptions first bit bankruptcy So, were which with to back we boxes. relates demand take back activity leases in are little good to in where not the that as number case it, There's they're component we a proactively, problem that we taking it's and lease, to mentioned into going really for have the to know this that said recapturing you than it gap spaces coming likely commencement rent the that of a scheduled of dig our we're leasing the I is next being that signing the that redevelopment glad certainly signed, from, NOI timing quarters. in up, the

real on from is us the execution an for focus time. So be standpoint, going to

you. Thank

ISI. Our from Samir question. Khanal next Please proceed with comes of Evercore line question with the your

I guess basis XXX… the XXX going kind I versus the is mean is leased is occupied. but what that I points narrow, and of that's -- know the to wide it spread normalized What forward? to getting going back

probably Yes, historically, I XXX been points. would say, between XXX it's and basis

time compression over in see should you So, number. significant that

year, So, list time today? watch I step is talk last then Brian, your list Sears stand this and mean And excluding maybe where Okay. you Kmart? about taking for just does where versus today a guess you Can generally back. watch that I

closer It's are out and into keeping still but are the year's a definitely tenants been those There certainly of for smaller. bankruptcies that were there users Obviously, some we're this we smaller last look we watching eye year. as tuning magnitude as have awhile. on,

any your your And concerns on list, kind traditional segment? thought that What as part forward? you do of have that, of watch sort of grocers going the is

on productivity sales me to said concern that your relative X%. that let The by grocers on And well foot occupancy the take at per average we our you always that are we're square below benefited times, look or focus is costs. Yes, occupancy initially. costs as many rents. And

a gives another you backfilling the grocer So with grocer space not that in quite may continue it of another optionality lot even in a use. instance of frankly of terms with that

coming Corners in El Houston, time. a put it's Yes quarter for that hadn't backfilled traditional that to They're going leasing more really volume. to follow with Rancho on advance and in It's a XX% They allowed some center. more in. the an grocer interesting, the this we XX% at relevant much community there. to lot announced do we to us Hearthstone of our in capital store They're are probably into

our that areas look we our out and locations. as that capital on investing their are in invest we're they are mentioned continue recycling not looking where So we're to making sure where anchors Jim earlier, grocers and if focused and at

follow-up, on sort of as markets cap rate grocer guess I of a advisor kind a expansion you in some Jim. Are some little the of with tenants grocers? concerned of secondary on becoming especially any seeing these bit traditional kind

do on. our don’t on, if is I know to Mark, transacted firm take that? for pretty had actually you rate cap held Yes, what you’re we want

on Jim. we think traded basis, hit assets pretty a rates. cap so you looked year-over-year saw stable When from markets, I head, our similar in our at Yes, assets nail that we actually like-for-like we the the

We big cap for that seen haven't a really impact rate factor. movement on

Thank you.

comes Please with your question with from proceed question. McElroy next Our Citi. Christy

and unsecured in in you any pricing you you today? burn indications XXXX Angela, talk have can to if with sorry I off then, your guidance in debt later what miss the do for sort And do assumption swaps of an that this. about plan March? issuance maybe this Do of year

down the $X.XX and between if leverage from items. of reduction the guidance share year and last say last on we Thanks Christy. look we $X.XX includes I activity then $X.XX do impact provided, all other have at that would repurchase walk year you a range align that

So, mentioned it XXXX. would that debt I at point have question and would we to don't I $X.XX. say within What Greg's it response a earlier, be in this reminder maturity any just embedded until that’s but

the opportunistic of our and put sheet. do no ourselves the to really goal to advance necessary. in But something So the average unsecured continue position obviously, do additional issuance a embedded extending should and so we term is ability duration where range balance weighted be across within

In of to plays we sort it terms about floating burn and in has what that the as first question the that with. evaluate as optimal into for to $XXX outcomes swaps, -- determine you is of We had love those of we some swaps we mentioned, that and of have market would out the March. burning off off begin will do you million term

be down. in range both embedded $X.XX to in and So the any within issuance respect debt mark would line swaps that expectations unsecured other with the the that

that free just continue would to flow? into then And and pipeline Kmarts you going the boxes in be with active then pipeline you be about would be you terms the cash of recapture think you considered how of dollar the that that $XXX that to the million just And expect in just of of in terms to self CapEx opportunities terms longer Or as bucket? QX, of would retenanting? expect sort bucket? capital forward QX redevelopment much leasing in go funded sort but billion of talked term, And about, those normal would

somewhere the from that to capital of out, what that we given year to continue which free running $XX accretive no continue gives need remainder in I around said from look some after us business, forward. of a growth which any do to see matter the think we fundamental dividend, fund the fund The generate we’re cash from activity activity, a as what come of year across to that reinvestment in will flow But us disposition great view invest activity. value probably activity you we that portfolio. earlier, recycling and will Yes, reinvest we primarily point as portfolio in is million really base part of Jim

I markets. when Christy very Jim of XX the seeing on of And good around, think is call is to foot the the And continuing average an putting able benefits team the inclusive mentioned it's consistent the Kmarts, and in are been deliver with on loading retailers tenant new to facades last those been call, number that’s that’s. then, lot throughout part a box. it, the And XX share one working of on irregular and of demising pretty done TIs docks that bucks and we’re terms mentioned to a getting of we've platform split mean, I we scenario the at these. to typical what And with ground-up of a that prototype to grow the being not I

efficiencies cost with some keep to and on side. able in been working operation partners we've retail line the So, our

Brian box. we depends pipeline And balances then pads? quotes we where a it the numbers Are That's the bucket pretty the good take are Are then Again, but numbers few the fits of changing just other. facade? what the tends $XX demise generally executions haven't adding had one we’re adding box, a space? box. to outside within going box. that's the Are we the where a of into move that foot, on $XX, I it doing estimate speaking $XX, to to are or split We've to that the the where split we we

of proceed Our next with question your Fargo. from question. comes Jeff Donnelly line Please with Wells the

length compare to you’re about some years. prior you capture in the when assumptions their around of on between the XXXX you're expense because making that renewal first perhaps revenue for all particularly talk I’m bad of Angela, leases maybe tenants debt the around a Maybe at-risk things leases budget like you’re know rates, making I recognition? does And that year? Can just mature this assuming question tenant assumptions the curious, the downtime just effectively

comment around in point. is. at that’s item process of what debt The sort expense really is I that my more budget, portfolio your a say earlier bad really So, budget how the would only line our we process metrics

to have, will line we capture ABR but your in you embedded of it's Jeff. disruption some retailer question, Now, also

very space Our space by granular budget process is a process. budget

but their for feedback on based watch So, as each in the well. tenants, very specific tenants we’re across for list making their and getting about not from assumptions and productivity we’re just locations sales portfolio, there tenant

something I sort completing like probably least So would of mentioned the I portfolio say at process we I tenant more assumption look excluding asset. look a pretty and to least or across for might where than form underlying earlier redevelopment budget previous then every take in we size we year. those. renewals and assets that’s sort and of portfolio. certainly by right retention rate would how board the as say people But is specific not again holistic renewing because be look similar the that bigger we’re the

Is curios they'll out? below or issue? XX% Kmart and that the second coming then, pencil value Or yield capital rents on maybe for of that And enhancing you that added ultimately a indicative range just part projects X% to your to costs? I’m Is the around overall X% to a pipeline. this boxes bit is reflective and broader trend were that mix the that yield. a enhancing yield is of maybe we’re guys just be where that expect Understood, the think I pipeline where the quarter, you

be actually able And a And look that It's that Kmart for longer-term in on or we’re how IRR across But the the It's for asset in by better and on markets. value again by drive had we a are issue. year we’re digits. the Jeff holder frankly, continued the we mix couple value and our teens. recapturing. box from would then the if center tenants more XX liquidity returns, the planning board. depends And we’re We lease. a of can low recapturing seeing demand old simply the they harvest the kind to we of strong core backfilling space at

that’s I importantly. most think

in construction investment going bit drag of to forward of the or to which move XX XX XX to viable. particular, are a that’s seeing longer costs, you’re but how value-added with a X, XX It’s in terms having are from X to in rendering also We returns, decision no not cost to think. an increases the are

you. Thank

with Humphrey. Our question. next from question SunTrust line Kim Please with proceed your Robinson Bin of comes Ki

past been So maintenance per years CapEx, look But shrunken. portfolio past grown at actually thing, though has it's if steady the even at I it's pretty two curious I foot, that about look size the couple if for years. square the TI one over

that? causing what’s about curious just So

leasing portfolio. more to think fact We've in a One thing on that leased capital highlight reflects which smaller space including right. the that you're I the is, even

continues so to the effective be also show you So basis. you disclosure our we productivity strong, on in as look net it that to need at

would address spending think operated as more portfolio in foot. but or I driving is these to small our by recurring $X.XX up capital and We owned per also shop in to making investment and begin are items the driving bring more rents. We we to momentum we're the $X.XX it's maintenance, of that and were around through our of standard. moderate some proudly our span reflecting effort expect get some I that in that rate deferred maintenance importantly to foot, a of assets of

thing think a this And, the drove asset and that a from huge and we emphasize if we perspective. I again, stewardship it's amount seriously right that the of in very capital the to allocation requires than is more enough the So something can rents capital XXXX. rents take by we can't we it that get, in warranted we it's growth sell do that an decisions and see

operating it community to we're And standard. move serve. We we of we to We to relevant. mission is do own them sure forward, want the be make again thrive. center as that, a certain local. to the to wanted wanted we our that a We As to need to company be

it's there, paid the being So capital in you're the again of more than for pickup but some I recurring the rents. seeing by think

your pastors the expense lease of noticeable in push negotiations level tenants, that to change tenants? onto been any you're has there with in And able

Bin, investments We're that making and about going gone to side actually come what to about their to our we're to seeing them those do. increased Ki on we've from it's the to tenants contribute centers talking our No, we're really in and investments. receptiveness as side talk

it we're to investments. for in in has it as make our we're investments getting we sure proactively we're making where doing needed want because but have negotiations, that up those that come So some particularly reimbursed centers

to improve. is think us And recovery Brian's see an referring an will And as efforts, you it's I area going our forward. continue a opportunity result that for percentages of to, those

Thank you.

Wes the from line your Capital comes with of question next Please Our Golladay Market. proceed RBC question. with

Looking shadow And capital are on at the the budgeting do value major into start pipeline? for enhancement that you do you developments what for XXXX, expenditures? plan to projects the

process the The a still a capital of But to terms in the on $X.XX in XXXX, that CapEx about leasing entirely Jim dependent area, maintenance spend bucket, high capital capital range. in We're productivity. enhancing given to a as continued ramping the the think expect million demand, square talk foot you expenditures it'd I Yes, total. probably be in said, for I base. $XXX that million would seeing talked $X.XX we're $XXX lot XXXX standpoint. a for strong somewhere be We value year about addressing as we've the were leasing of productivity of million will we bucket know, to tenant runs bankruptcy certainly as about from in $XXX in

capital into the of at based that acceleration range not the or you projects higher of scheduled that be could on be XXXX for of touch in end little think spending above as already been XXXX, into the XXXX that I we'll the is potentially some Kmart but we process. a earlier late had had

expect we importantly, over $XXX And to year. deliver this million

on we're return. on delivering done. you We're wait. these on We're to time budget asking getting So, projects not them

the components? potential residential have had any residential in update to properties pipeline, And there. a projects two component Is there particular more could shadow In that?

lower support really on make value I Northeast, XXXX, the uses assisted XX place markets based and last that complimentary presents we portfolio. extraction over market on working or on up might that identified in set other senior couple fruit. we’re to Miami very throughout focused the not a as across some the and hanging rents and the We've residential like said of year. Southern some itself to we're that lot assets hard calls, this into California think sense Northern additional living And of or but But and

we're setting coming. So, us to and much than expect say it up other about it's talk don't it

Thank you.

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

Derek Shivani on Johnston. is for This

Just heard than for greater from larger on a some pools the that we side, market last demand private time commentary this year. there's

you're You And year. were on into you XX demand guys I last XXXX? north what sort sort just of curious, that there sizes? across targeting individual comment of transactions had could disposition of mentioned if transaction

Mark?

deals do starting we've get Well, sure. factor into the Yes, to year, market some see are the at year critical certainly I the think whoever sized. going done, larger continues last you looked I as be to next most think and

centers. of think consistent really certain do traditional buyers a you been in million think price In environment year. more I net for think part, There start given across pretty driven bid I we're that a sensitivity. know, level XX see markets. REIT in the a to by range seeing $XX below. just that you of some I to buyers, $XX and assets are the by It's the But you get and for million that's where the financing the buyer really power private high demand area growing it's drop above when there's equity see wide funds, private attractive you and worth driven

opportunity that's but opportunity where continue to they big assets that some advantage as And markets. pretty property us we haven't see I market maybe some So, we have a to in And think going recycle, and the even capital take core for movement pricing traded. important think of. of to I some seen some will we

And maybe sentiment so just the in us an seen that’s then just in portfolio sort Brian, if far of us you update Payless last versus on of where the you’ve give exposure now? year remind leasing XXXX could right and

part. take first I'll the sure. Yes,

There's last demand, we've was apparel have anchor from on to then terms bias been those that or sometimes. mentioned, nothing year record and announced. portfolio for we've in the strong the been to categories open continue And retailers 'XX, in health Payless, of whether smaller to home there. our wellness much of activity retailers see in a situation best-in-class device in monitoring strong fitness, specialty space and and 'XX for have grocery, Jim value our thriving categories. that's First, the been open a continued obviously and terms that's

as over So, have we've drive What be will that part that I of executed recently driving part the spreads XX% we've and that in America's to if had of if considerable don't XX% of tenants addressed with we've spaces shop roughly get we as Payless Club those. or to that visibility mentioned as through point spaces of the we outparcels, have of type any back. that made we such the back, either or expect taken some lease really are The of we will ones and which or outparcel on redevelopment redevelopment progress Jim that that best a we've development. earlier, event would Pilates small executions, spaces there those uses value are growth out

we'll these pretty that we back, as look get done some demand spaces Payless, should we we're to at what shops higher we've and the have rents. usage even small confident be better with space, that see and put small that So momentum in of in we shop the we of and the depth breadth able

is exposure, the ABR of of total basis locations. basis about the or XX GLA of for Yes, points Shivani, all XX points

you. Thank

of with Please JP Our line your next Zhang question Hong comes proceed from Morgan. the with question.

was year out laid $XXX capital expect of wondering being, that would in this target in that net million a seller were to to recycling. to be capital recycling, I under a that? day I and XXXX million you range Do your And volume the $XXX annual under within of you circumstances, relates what successor it return guess, XXXX. significant you or you is of

for question. Thank the you

guidance, to level, the honestly, work which what the types of acquisitions, on see repurchases, we going provide see more, close other drives of the reinvestment share year side, to X% going are done to normalized a that X% portfolio. And, having us last additional cetera. to sell I we the more hard a be range. we're but et to opportunities is activity, think what specific going to be we probably Again, it's reverting to that not

in in opportunistic. cap allows side. rates on it frankly, we we're capitalize and we're as us move because we're now real the be be And So, the can that more to position because that other pleased to up down balanced, on

you. Thank

of Green the lien from Tibone Advisors. Our with Street comes Vince next question Please your with question. proceed

the an backfill curious and demand your provide Just spaces? effective how trended net against Could former rents you update on “R” Us expectations? Toys have original

is Sure, this Brian.

regional between XX higher that from the either And trending family, of final We're another of with towards to these to similar committed, Michigan operator the uses XX%. when to splitting this range. I've So value rent is fitness, we're seeing a spread. XX best-in-class rent or the expectation We call, that still our what the in end entertainment, that executed we demand be are home, one been in took boxes. very back we who LOI. some apparel, talking leases We we've of alluded meaning earlier of least about the said on range quarter are had announced X on our calls would thought XX% we growth prior at furniture Kmart

progress So, been as throughout continue and announced signings pleased to lease like demand the Kmart we with year. us expect we've

basis points very third the that’s by Thanks. right, anchor quarter. compared build one for All last helpful. to One the about declined occupancy XXX me,

besides the to closures what decline? wondering X contributed other Just this Kmarts

impact towards that the fourth came Dallas end quarter, did in spaces back which took bankruptcy the we year. from the Sure, have those that happened the of we in

addition outside downsizing had some was Indianapolis, the part development project or a Sprouts, We of Burlington finalizing drove in Kmart that where fitness on Naperville as Speedway of outside One operator downsizing, downsizing we're also a to another to a one that's with close really with, Philadelphia bankruptcies. something we're the in we Indiana. of proactive that we're Kohl's that did. And for -- so in where had in what we're that development we our where working Illinois

That’s you or occasions without a helpful. big And way impact for an any issue few bankruptcy? just how in the Dallas, is just of can quantify big or that a

plus XX say for we had big demand was want wasn't -- locations issue say we have with It a boxes. overall. those to Yes, I we Dallas to close had it to that

was the our watch someone at again already of it a list. handful least was on on so that spaces, We’re

of them some spaces, So, of paying we had many expect marketing year XXXX. coming a them start rent in these online been to and number of this

you. Thank

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

out Just follow X.XX%, a the came tenant that? unknown low fall below the and you tenant had in for little growth on noted in midpoint in budgeted end. to FFO XXX versus why XX to Angela, that at X.X% at NOI XXXX bps, That’s was that came XXXX fallout. was bit up for

see doubtful to that not I clear line reconciliation, even how we where the contemplated that was -- XX that but think, into we unknown bad that to for you things basis budgeted AR Investor fallout, also XXX think fully Yes, for for the takes were could that debt versus Stepping Sears points isn't any activity the that across NOI us that's provision during or I tenant other have impact the like outstanding portfolio. you back expense so had like of in really four in fallout bankruptcy in terms know, tenant the year, accounts fallout something what back same-property the AR materialize account Day balances, situation, originally we to Kmart range.

the really was think fourth I Kmart the like really hitting comfortably execution basis strong with course to that talked Sears productivity that about we helps impact sure that redevelopment XX so, offset than over range stay and quarter, leasing big of on in that fourth points we given. make what And saw original had we more to quarter related year a within you the we the

then… of well end, low XXX XX the the So tenant came [indiscernible] but bps to for fallout at

it you then in the things offsetting had line. But ABR other

locations. I occurred seen to you tenant space that any to Kohl's back going all went Have going of awhile back to was then And your properties? openers of these provide any is

best the footprint get this But to they occurring in I our of is drive it to any think, their to view not Brian. It's into properties. can. that Linda, speaks

Seminole, we're what we're mentioned we Burlington another addition in Florida Milton. just prior we're As in doing where done doing we've it we've especially downsized just to in with and another one announced that, I in question, grocer -- bringing

we handful So, about the execute of in centers backfilled that been locations where a the space downsize the and to. tenants talking just we’ve the we with are of we're where to them year that other footprint they're tenant demand at they've ours there in are we talking and know terms have great partner ahead had in, ourselves. discussions and taking haven't portfolio our the of any the they've Kohl’s of had with all yet proactively back because on gone and throughout But can any

Thank you.

question. Our proceed next with question Burrows line Please from your comes Caitlin Sachs. Goldman the with of

a you if follow-up recycling. wondering, the in could I What to you're and more versus just few forward you it one the start have properties? think you quick do it discuss dispositions would Or uses the and be terms balanced you could questions out regarding what more would you just be negative the growing guess, into various I positive? those had effort proceeds. and do leasing? you think of I as of capital a cap at was go put as rate then spread? with And Or being,

what represents bottom really the done of I portfolio. recycled and think that today that work the we've the capital we've Well,

entire to the it’s the that be on being mix. would in yields that performance capital sets disclose. think inside by assets about put be I mean, to of cap that work. basis can we ability all as what and we acquisitions good on sure Certainly, the going you equal, XXX, reinvestment going driven rents to make is us be things rates, acquisition as asset, side focus below forward, So, buy growth our our cap points have we selling. accretive Again, rates the move on driven the other expect XXX portfolio. similar that the portfolio to Then might it's is apart to by we an we be side, see to reinvestment assets our market

repurchases as imply find are well. portfolio, other And for would to assets rates, make the balanced as of to us us allocation cap flexible that done we've allows it capital with people much for as the decision. But our continue the that we lower we be and again, of course capital recycling then share opportunity So going forward are sheet, complementary an that with pay to work balance more those IRR. because

cap property term that have could but idea in that, going than just why potential be see that terms rates might disposition, would of the forward, growth So they relatively acquisitions in is sense. acquisition we would lower higher make that's they long the

interested We're to not you're don't going in that assets provide absolutely. your grow ROI. Yes, in of a how view

you. This question-and-answer comments. session. Thank Ms. Slater our turn for the floor I'll concludes any to final back

Thanks some the few everyone see of We'll for joining next weeks. you us. over

today's teleconference. concludes This you. Thank

at this you disconnect participation. your for may lines Thank You time. your