Brixmor Property (BRX) 30 Apr 192019 Q1 Earnings call transcript

Greetings and welcome to the Brixmor Property Group First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formation presentation. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stacy Slater. ahead. go Please

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

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

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

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

strength opportunities reinvest utilizing upside and merchandising and everyone, quarter their begin appearance embedded community well-located drive to and what during morning, thank our towards control for recycling QX our of in and tenancy, in you improving Good they our to our through even. this and ensure to drive we ROI center many Stacy. and the and to have for execution serve capitalizing of our standard, financial data leasing in better acknowledging centers by change we to you, volumes Brixmor the outstanding tenants be centers yet shop retail I'd execution sector-leading outstanding at operating own Thank like value, liquidity, own joining centers our spreads, capital ROI. to short, proves period and of driving and team intrinsic call. to small to another centers on growth to In stay we the astutely disruption and struggle and ensure our are sustainable that platform, the growth of returns the business, a which opportunity period that property

been beneficiary record environment in normal just that profitability. share volumes importantly you, and of some those failures, which We with increasing line relative to strong optimal believe today's are all at part to and a Brixmor discussed relocate greater of through EBITDA and four-wall our but willingness this occurring while environment, our are business tenant this strength holding of real and As tenants capital turn. is demonstrated of size and tenants get disruption with on leasing the retail who have the have far in disruption the recurring leasing not I within the thriving

remains great feet dig spreads of a XX.X%, results. of begins of spread includes million It cash with our at the making a we X.X ago, renewal into having lease where signed leasing environment XX.X%. sector-leading deals average matters. again said key to bases I square and an In to which new new team, years me to in rent addition Allow this what money three

in deliver we formerly accretive basis our as shop last our As as Kmart, the reinvestments. and quarter, are improving occupancy leased operational reveals of year-over-year, which centers XXX recaptured small but we to we space, declined we climbed points occupancy previewed basis overall progress our making XXX enhancements points

now build in despite basis points drove reflecting of leasing commenced to this to build rent. XXXX. not better signed year point rents spread widen of visibility and million Those yet occupancy balance and rents leased growth and between but top-line a XXX the our growth of nearly on $XX activity basis the growing XXX our XXX tenants points, for continues decline our Our provide and basis to superior

Speaking of achieved just over year. foot we average per record signed run. rent room deals of But growth, $XX.XX the and to our in-place have in we've last we AVR on the quarter importantly a X% new grown in

$X.XX signing between $XX is fact, and now, expirations matters. new the deals In Again four anchor our are $XX acre next XX% bases average over per and higher years we foot. square

we Fitness, market restaurants with that higher capturing driving disruption, term LA over are Sprouts, serve average in tenant and concepts centers. line X%, connect with share communities. health rents personal our nine HomeGoods, in and other services quality also years. terms like thriving demand and Below, our capital this just with bonds continue great our in Through our be only in to retailers We our demand Five containing high of leases not leading demonstrate while care rent average to Ulta but rent, ALDI, of That drives over of XX%

with of data impacts our are and their portfolio device understand that social to locations data this merchandising on develop as over trade purchasing centers, using tenants media how key preferences, suggest we more such co-tenancy voids areas; also driving to trade shopping sales analyzing productivity mobile a to actually customer understand Finally, our of partnering sales better data outcomes XXX better using centers our refined through within understanding models. within refined using

this of our the move that of serve. us tenants our connecting with communities with towards helps by centers All owning goal centers vibrant thrive

billion discussed capital assets, last year a being and months completed previously to $X.X XX the of recycler. given more we've over harvesting non-core As balanced this over pivoted tremendous work the

and our soon long-term This quarter $XX we harvested markets. in with announce to in non-core of assets another million acquisitions consistent strategy clustering we core expect

ROI. infill our drive assets and these platform, well know where capitalize can and Importantly we rents we below-market submarkets vacancy are on and leverage

stabilized and or a incremental invested to our X% are of on over incremental delivered return of at year delivering redevelopment front, reinvestment X%. construction million an accretive $XXX $XX capital those of the return million we deliveries, return an this another projects on at of gross XX%. With teams On pace value

continue we this at which include of Town our million an active added and $XXX a incremental addition, $XX now XX%. rates at Projects will Marco in Those and created. our to pipeline Pointe $XX Center return at terms trade. returns million of Orlando cap stands Island multiply In the over we the average value hundred and quarter of basis those spreads grow underway, remerchandising investment million redevelopment points centers remerchandising of several for incremental redevelopment

progress of standard. making standards property significant the own our Our portfolio, towards operations our team continue appearance to raise and

landscaping. team the sustainability operations accelerated the enhancing of lighting and our Importantly, solar at is practices the centers, upgrades, implementation low water including projects,

new to have for report Customer current as our also Angela results, inaugural are publishing our our provides that We Bowerman the across the and to this all to with our I'm a responsibly I'm corporate facets by leasing Officer our deliver growth. a deep Kellogg's been already Green at talented Julie the are for to our guidance. to GRESB joined turn accounting Chief plan summer. and our our Star achieved responsibility Experience Her practices adoption inclusion. year more proud consistent grateful very call recognized forward of I'll beyond board Digital sum, perspective and that, standards to team's looking execution and sustainable and recently With a this discussion over In of for diversity and outstanding affirmed commitment of furthers detailed Angela? excited experience Board. our differentiated

to Thanks, the good we position sustainable quarter Jim, and morning. growth. company strong as pleased long-term for report to continue on I'm another of execution

XX leases was per reflecting supplemental Kmart a XX strong basis strong base which Before the the and leasing of the and to of the presentation for analysts on of XXX points basis quarter glossary the our XX And growth XX last we two in our expiration and of assist basis disclosures $X.XX of impacts asset year. contributed the growth supplemental detracted the believe base the resulted both investors Same-property year-over-year provided months, operating totaled same-property NOI Sears and performance diving approximately standard share which importantly, redevelopment $X basis occupancy over execution reflects XX into first impacted over the which the the previously the were and in first the of growth X%. as leasing XXX the description driven and XX time due and in presentation rents capitalized was filing, had headwinds X to of despite we will I payroll of leasing bankruptcy NOI results We respectively. that would to our in last QX, package. strength of costs X remind our pages the financial the qualitative the the in ongoing and basis quarter within on experienced points during ASC build or NOI impact at of adopted in new other standard, that ancillary expensing income during last of the of rent quarter, points and productivity FFO through such the million rejection quarter. XXX additional quarters indirect base. new by we points growth The of everyone statement and a understanding which legal, the

our the for vast remaining our the are Sears total majority of as only points to ABR. we XX demand exposure pleased and on repositioning our We strength of locations remain work this redevelopment are space And we Kmart as through plans. have basis of pleased by we clarity seeing

our and of per $X.XX share. maintained guidance guidance $X.XX We XXXX growth XXXX NOI X.XX% X.XX% of to FFO have same-property to our

rent occupancy XX number At to of Below base with impact quarter, rate of the during payments of stabilize. filing, following projects of that points occupancy amounts basis year, second basis points redevelopment very significant time As be the XXX or locations second points. reaccelerating XX Payless relative we year XX line, of please in I that in representing last which the Payless we in debt a of store XX provision of the trough only half to and total XXXX, as of accounts closures as build a quarter course points trajectory in recognize normal quarter basis previously the the the basis small-shop to reserved will in of to our before comparison the level is XX cash the had basis note of for bad of ABR. run of occupancy XX second the respect XXXX, quarter in expected of doubtful resulted noted up against difficult the we points quarter the second

pleased remained In have from year. With capacity as we through no XXXX, From no is expected to we to with addition, plans. income to to balance and debt significant raise ancillary continue the and the on other outsized maturities contribution have flexibility need business move our capital first the year. until sheet we a moderate quarter execute this we perspective, self-funded

Although to capital as always, to markets access expect the should you do when so. it's opportunistic us

and the reflects of but occupancy represents rent build this come EBITDA XXX. normalizing the build activity of remainder as $XX extinguishment and navigate fall to I third quarters during terms timing within guidance in result commencement. XXX $XX increase obligated today, a revenue Jim timing many the that, XXXX, XXXX, in second timing of -- between ICSC in of before over does at of leased could during to fourth earlier capital a which where X.X ASC such the the the stands with you to million of well based range. excited highlighting the serve. the the And at the acquisitions a million a stands Debt-to-EBITDA slated and operator continued forward which repayment growth as on at transaction of for share we will at the in be remainder weeks, occupancy activity few contemplate magnitude, as both and Debt in now quarter EBITDA FFO increase times as our expected a debt the part anticipated the We Our centers of adoption to be to year. ultimately factor branding, of on on and may associated loss due mentioned being the which call markets disposition trough highlighted, turn with seeing to goal revenue. nearly debt that timing expected is of contractually represents also of of importance due certainly small the you basis the adjusted slightly points with I communities in the potential we Q&A. we spread based look of online our to where the full The A in we'll refreshed

Thank Merrill Craig [Operator from go America Instructions] Please comes of question you. Lynch. with Our Schmidt first Bank ahead.

the Yeah. by given more I that was anchor wondering leasing would generally small-shop partially the driven touching. if is anchors accelerate leasing you're

already making taking just importantly the occupancy serve. And are think you're two more we those increasing increasing weaker we're I occupancy. is part Craig improved in question making even concepts look And relevant of anchors our of a we're only the them community the the it quality and those the tenants. of better, second tenancy function seeing replacing focus it some small-shop it's for And of operational is these levels they centers not Yes, things. and with We're of leasing ahead our activity thanks of really around numbers. the that anchors

of in some and early quality. we got actually lower talk was that we did, things thought lot tenants were that XXXX One of of rid but didn't the XXXX about we a small-shop

So those anchors. it's of the we very really those year delivering things And continue late all that yes, small-shop to particularly do as momentum we increase in intentional. to expect are start that

the The And incentive of more Okay. may throughout financing expect we tax quick another -- question. that just year?

It will basis. number on an be recurring annual a

expect redevelopment be the We from through centers I that part that as significant to do any XXXX. in a time. think expect business quarter balance we the next contribution growing don't during in first year. to over of amounts continue across invest of we you'll see our the again portfolio work, But the other

Thank you.

You bet.

Metz ahead. with next Capital question Jeremy comes Please BMO from Our Markets. go

just morning. wanted Jim capital good on here. Hey, to the touch recycling

million quarter. the In the terms $XX the did of asset first sale, in you only

better acquisitions between and the your mentioned You opening dispositions in balance remarks.

$XXX pruning. prior the to recall asset I longer-term of annual million to it commentary back think going $XXX goalpost some million

amount? at should thoughts just some be pipeline. you then in of to half given think So think how on pace we that about start to Any level seem we here, from about all And acquisitions to sales? that also should the of slower thinking allude Or the the about sort here?

of looking color are sort So line? of And in the what close any rough terms goal be to we further how those at? volumes there could

in plan kind Yes. the appreciate anticipate And provide And guidance, capital does we specific know, range. I long-term of hesitate you as question. to again, our recycling business albeit that

the some to will to transactional pick part we through to timing, we're opportunities. So you because up know proceeds investing we're give long-term value-add able should see like opportunistic. of And present expect emphasize well Expect these we our don't where in to you'll our clearly lumpy inherently uncertain some truly It's there, these see with be tenants and announce dispositions always like what which critical guidance continue consistent and more I and markets by it's very of it, of when and the that, is that about we're gain excited driven And for acquisitions good us that to submarkets we're meet knowledge return-type that use investment think we platform, assets course our year. our why mass. we'd leveraging of to and of the relationship some, our them, on with particularly out to those are strategy. assets remain seeing clustering reason and

be towards with that in no sold strategy. year say balanced. referring The That's that are will acquisitions, more balanced. we're part, to our we and it expect I'm I thesis do outparcels. billion more to going what with acquisitions we're consistent $X when be frankly So, go harvesting, to Obviously, few capital that last a

tenants. on partnering wondering a with what more just your could key you give Okay. it merchandising doing And on I the was for for learning? you're second forward? me, of color if going what front. you're mentioned And mean little you this What centers can

for Thank that. you Yes.

trust a and to One successful. key of with centers having our as really lot tenants. us these platform built the of of And of it's benefits we do have that, are is coming tenants national into that a long-term some important relationships we

that within our on team group have marketing We focuses a data.

be an that that that core understanding of and one psychographics understanding have center. better we that match, And fact, see ways who thrives community. In the And dialogue that that trade tenants. indicators, areas, very tenant demographic for these about or discussions selection important also better that particular we does they're their understand centers key looking you who's in were level actually exactly their to right site our so the if are trade, involve some matching, to that we're going models, those of within the used run they what is do the individual relevant voids importantly as for what a for how in and will, making refined tenant

simply space So be and of our right smarter thinking trying we're of going kind about to the beyond into lease just and types really bringing tenants centers. trying the to

Thanks.

bet. You

The Citigroup. from ahead. Christy Please go next McElroy with question comes

willing just in in you you. bad terms comfortable feel with can ramp-up? the out, troughing kind occupancy that Thank one this we pace, because quarter, or tougher first everyone. is should half second that's of morning, context that the another, the in so as would same-store headline we be which debt and second trajectory, at the Angela, a sort maybe Or called QX that in of give NOI much helpful quarter of how of of, impact, the don't expected way just I is of Good you expected know give a of, NOI highlighted, still expecting to you be that QX. the comp to same-store we're also looking the sort commenced dip, a way ramp quantify sense in initial of sort some next any, guidance, if same-store? usually but but of say, range quarterly be next number half would we half, assumed

expense, Christy. said, fair out run just for haven't basis -- basis only we're you drag looking is it, of, not up and points in the we at, line. XX if highlight guidance. in XX to points quarter, you're remarks. a prior as of No, points did XX bad anywhere But our at we And potentially Yes. couple quarterly and pieces associated same range given from excuse the it's call XXX debt of that the with XX a call If I normal just, for debt basis question me, to ever sort the prepared bad were

base of those as contribution, terms commencements. Putting in In base as to rent it do together, quarter, we're could that's rent, the kind than first well, certainly I the it to timing rent, based certainly far later below as in of of think that, in pieces see say the were quarter at point. you this before, those again, the reaccelerating as it's go will fair two I year, on where was first the be relates be QX we able to think but less

looking the commencement tenants? also dates the say year, terms timing? kind fallout, you potential the versus How how the sort just, for NOI timing of high commencement are the of are mostly, what the could set Okay. low end that mean with is the would of sort in Is then of at And the half end it but the range? on the of back there of, of, same-store biggest leeway lease expectations much sort variables of sort further around

one the so the as rent anticipated in highlight say of is, the as there had in additional half Yes. we've timing been tenant of would second say through far being What we're minuses, the highlighted prepared biggest where I and we as really being of unanticipated the second, commencement pieces at I commencement can fallout on remarks, year. navigated mean, but XXXX, and the the I ahead we two of rent definitely dates you did trending moving move beginning XXXX, had the I we balance importantly, year. of think, dates the pluses

minuses. So we of by pluses and lots a relatively immaterial have amount,

that $XX is commenced not that different rent at million supplemental, leases of gave portfolio. look across but you'll we disclosure in the signed you see If the that XXX

delays working So also number move commencement accelerate while, are dates hard we whether, things or tenants, a certainly are the of for rent construction entitlements, that whether in some permitting across it's there dates cases, platform to out.

the on our expectations, with better. not pluses we've a board, if in line certainly, balance bit but So, across and minuses original little trended

Yes. Christy, additional just And, contractual I'll point that are these signed make the rents.

making and dates. So sure our the biggest variable is hitting time we're

on we volume not to almost move think, on that ABR. the our I but day of every rent, means but in the I average given or execution, commenced either last of call, signed alluded it out, $XXX,XXX

year. There's of coming balance picture if activity critical it's very So would the year execution balance of the But you little, the in importance timing is that of and expect. the in be will big as any, signed. speculative rent and

between degree So and excited gap coming. that build high with growth lease, which, as about us getting remarks, I an after unusually that our in provides of think, visibility I mentioned that's on

$XX million be XXXX, Importantly, for that but XXXX benefiting well. as is going both to

everything that we're on. that be the on to doing been everything and the and at actually delivering Day again, up said So, exceeding capitalizing Investor set we growth, doing we'd we've

rents do Christy, environment this think and make is not different better and think, is, do in a that. able our below-market honestly, universe everybody we're what to it capture opportunity to I where where within I centers of somewhat an accretively

both. you, Thank

You bet.

comes Alexander Sandler Our O'Neill. with ahead. next from Goldfarb question go Please

over there. Hey, good morning

Just questions. two

the seem really -- bit comp for comp-related retailer that for you're a but It changes assumption? it seems with Can sort Is I you talk about especially mean easier that of expecting more safe accounting, Angela, that XQ sure. hasn't fallout. debt bad mentioned bad doesn't you end a like comments made tail a talking thing. about little I the not at of sort it you're like almost thing. only more a like the tenant-related appreciate the the First, you that from us you guys in sounds your FASB the just feel for

through absent So that that something that fair the worst blue? say to Is fair? of we're a of comes out that sort is the assessment

Yes, I question would bifurcate mean, sort bit. I little the a of

taken debt you We've as we call to primarily of some AR. Kmart be reserves we've another ABR The As of is moved disruption. a And debt moving back we Payless made impacts this comments year fallout I about the budget I retailer been two I obviously that terms heart space-by-space to will represents to think line last in but question bit on importantly absorb more remarks the obviously outstanding would the a quarter's a and some company that the line. about of your forward. additional recall through locations impact in way prepared distress talked think on tenant a bad about we've QX, basis. little QX at event the take able which really also the and bad do relative additional we

we And expirations respect do so tenants extent some additional to have where expectation contemplate have initial might in risk. watch with our every those or the does space list to portfolio

within point additional expect So year. expecting XX this I basis and additional wouldn't or disruption the But our bad historical in for that be say We debt we're run do to rate certainly around somewhere we tenant expectations fallout. we'll no line that XXX distress. of the in points at have current

looking opened sort But of $X.XX the redevelopment of which to there. are Okay. XXXX. continue on would your $XX annualized, creating And you million equate great a certainly then guys opportunity over that at guys XXXX but consensus, the pipeline the you to to not lot make to definitely signed consensus adding isn't obviously, $X.XX going headway

sort in maybe of properties easy on Christy's you how So based half. much it the on NOI that like was that get carried service talk to it numbers you've course that just business take what offsets will out normal your But what's it's more may of much other that and away to redevelop of the of realistic question, how out. then with just outlined comes seems based -- it and about I open of know sort back versus

this can about talk $X.XX you should little next. bit So think maybe online coming we to year just about a that's how both into be going that

a is, over digit one double-digit those Well, pre-leased when accretive now of we kind high which returns. we're think going have to particularly million hit you continue our line pipeline it low perspective, of you to to the earn redevelop from on drive I'm about taking substantially at down points, single that $XXX reinvestment. properties opportunities bottom pleased and that of

pull we down that's capital to space We'll of certainly as of So that part more continue recycle. it. also

acquisition going are see represent well our that limited pipeline to to as sheet harvest balance redevelopment continue and our going as assets opportunity forward We in reinvest we growth opportunities. some

probably drivers think the are those do So And future the we line. as biggest to ultimately tenant two will bottom disruption. drop as you about expect what well

exposure done to particularly I'm And as the tenants. will, list that if it things less Angela our about they our job the concepts responding to to of reducing Angela's this One pleased part job, as just to and we the in have of portfolio highlighted has occur our exposure of but isn't you watch proactively it's managing think team reducing an of incredible relevance. goes bankruptcies second part question is

we boxes some job, we're doing H. before and reflects exposure toys the occurs. backfill also I that the or frankly of in But boxes on sort or that the Gregg taking because H. reducing drag the that or performance our Authority a certainly Sears which think our the our right? of time proactive occupancy. actually Sports those approach That's but period event importantly can imparts

to redevelop it out reposition to figured prototype. occupied people cetera We et space to how haven't get

really that any if those outperformance we in So find consistent be period. standpoint, make of that's kind we Alex that that portfolio sustainable probably not which as go sustainable. it you And the growth would that forward variables from moderate across allows my but produce to growth will opportunities the three major is and also important one

Jim. Okay, thank you,

bet. You

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

Hi. Thanks. Good morning.

and stabilize you change Following pipelines, $XXX redevelopment think seems see target. continue bit do we'll sort was the talked the sort bit opportunities it level? you million million think that little at million to over being does of $XX up grow in expect which attractive. remain you pipelines. that $XXX a the Jim or Do million you're a on that to annual I to was how spend It re-tenanting the like anticipating that of $XXX the previous range? about this then And the little redevelopment previously

as with consistent obviously that Well, the spend pretty to million $XXX annual that. will year, spend $XXX expect million deliver between levels increase to expect a we are

a -- $XXX to of size that As to it year. deliver what to little which million the our every basically deliveries or goal underway, under million need the a you we relates of pipeline, are little million $XXX $XXX of at over is

about $XXX $XXX that we I but program kind the I I'm ago, on. achieving. million of new team as it we're in as the value the both talked range net we our to this million. ago, might executing little to are which only kind that years stands think we I ROI, this see pipelines driving need is nature last that the this that of pipeline velocity point from projects are good projects growth and apart opportunities three own, increasing really getting already of for. at about projects. really calls delivering also we're improve And on These bring think not a pre-leased they credit that what And deliver the fluctuate it think of speaks so Remember much smaller out I others couple be longer greatly also on have team under they're don't the but level of a intrinsic And we and the that impact. they that center reinvestment durations. of set You maybe you pleased to with

range of And expect would to and grow. years also spend. for of that you I important years. next And pipeline that our just a investment continues shadow this couple but several not think So tell to the that's keeping I

to do drag bit increasing pressure of from I sort also ramping And expect maybe or the then ease here. from of even the on sort begin the When putting of Angela redevelopment little activity? out guess and redevelopment is drag bottom-line and that to you to same-store a

has positive talked Yes. Sears NOI, certainly Well, Kmart contributing couple quickly and taking The in consistent process ramping The Day before to XXX positive effort in our basis back XXXX. in particularly becoming boxes factor as same-property future offset -- to It the points as did Todd, that of contributor really completed as in pipeline. you're XXXX in was you neutral given last right XXXX to redevelopment we pipeline years. that and particularly allude the and guidance given over between which is as as Investor we is many drag. for XXXX the pretty XXXX. been And we XXXX. that's did redevelopment redevelopment with we're the pipelines more processed that that somewhere future about end Despite activity. Considered heightening expect in associated that activity. the completed and slightly drag a a close are to XX We and at recently slight with future from it be back still we pipeline recently broadly had

you. Thank Okay.

bet. You

Please comes ahead. question with Samir Evercore. next Our from Khanal go

good Yes, morning.

On about you for should million I the buyback did opportunities how capital-allocation $XX buyback in guess think the first XQ we million in quarter. here versus around $XX you? the other

Well, repurchase. also close we use transactions asset it's as our the the sales and we've proceeds we business of to believe the repurchase and the think going makes which that those have running as actually more we'll as We're potential are on basis, our repurchase by value-added look as the level is that the to lever a really say you signaled driven about acquisitions. why share we a not of again And marginal more part capital we it's expect ramp well is could on as up going we do the to But some talked of stock some before the capital. compare But strike balanced to clearly recycling well close. to funding trying to remember of the at of accretive acquisitions stock really right uses one we're some redevelopment those margin of to be share But we very we're activity which sense. it and again maybe and long-term to balance.

we're then I proceeds to as long using we it. clears, generating. That will on repurchase we not the We're have we as And shares actually transactions. think that executed, more identified consistently we So, share program. and go repurchase we're close going check

that disposition page ramps-up the as see repurchases. expect share so you you could additional And

that is guess renewals during and a earnings the about second to of led side. a talked peers sort box had question a on my for Thanks your Jim. leverage I of one tenant which significant moderation negotiating that

on step on what currently? you maybe about boxes? leasing just And of talk box going you're the side generally a back, is seeing then talk about Just can especially -- renewal maybe the how sort taking

take we're is renewals have basis leases the we low really something you're money and a me hand I'll over while talking we with bottom-line been But part on rent And rents. centers and for Brian. is reason it we've in-place the we're on matters. to about making let new are great money that Yes, first hitting making which on that

to in we accretively. bring work so this put others actually from capital have who experiencing apart what this better are might -- stands And to have that And higher tenants rents opportunity think at unique environment some better I really and ABR. in Samir

I've with only other, environment. we disruption trend private a capturing fact this the companies tenants EBITDA public about the are competing prototype. the these not being think not is profitable because are you focused us very are matter advantage four-wall being each As platforms that distinct space. today the giving of competing And And the other larger smaller but platforms or as own XX% necessarily and our We're landlords. in said, we are of from XX% on with

have of demand. reasonable at allow the advantage rents I having costs drive tenant think in-place us we, healthy additional occupancy which to Brixmor,

leasing Yes IPO see and anchored portfolio health high on of we Samir square grocery. anchor at just segment, we forward, year continue mean done when a look XX going demand smaller coming pipeline a I portfolio. terms fitness, than off got million value we feet. smaller beauty, in did to by since the retailers more XX we've and again a and X.X we're anchored as at leases a anchor leases Those And where the in represent we've demand specialty and on ever apparel open-to-buys strong

or the continue So, of back look we upside as to other Kmart, we that it get demand we and space. a number have, may anchor is strong boxes as that see for that whether mentioned Toys"R"Us and we you out

be Yes. rent And Samir look any relates negotiation with can the it tenant tough. to as

So, position that rents that of you're you reflected the clearly, I in is think starting strength. on quarters just terms if from very strength of from starting place your of can position you're competitive demand box where based generate a And are, several where a not quarter this for productivity. last

how it So, be that'd you. frame I'll for of kind

for Thanks color. the Jim. Okay

You bet.

The next Ford Karin ahead. comes with question MUFG go Please Securities. from

Good were PetSmart morning. talk division, Can its have that yesterday just Chewy IPO tenant? for about that credit I your there. X% the that you think Hi an saw could their they that announced that the of ABR. what of planning impact on you of

they a have sitting forward a relationship very Said estate is think we not have Well, I our should PetSmart positive, that as I exposure, more monetizes think another healthy cost offering. great how we in from importantly net four-wall look But them, the used at our think at proceeds business And this spot. real point fleet again will we its company good the a which be going as clear it's Chewy, we're the be investment and about as way profitable. ratios. occupancy pretty with in

is Sears see could Kmart us back. Okay. spreads if many status do do Thanks you How are Where of And for any the out? that. My boxes? some provide on-- the think we'll breaking that Are have leasing coming the you you you in update you deals hand rent got all today? on up when second question commencement

compound I'll a to hard one. a Brian. that's give That's question. Now,

parts. I'll a few take it in

continues make Below, this quarter. range where remaining against which least close Kmart former grocery, be GLA XX% the we're a towards Overall, of including resolved, the meaning, apparel. of national value So, Marshalls specialty progress bit last ahead we're uses, we LOI Fitness, to rent, Philadelphia Kmart discount or times we'd grocer great Planet at at team best-in-class Kmart to of leased prior X.X a finalizing outside We close Five space is to fitness thought quarter. with the the of a

seeing those online XXXX. online, of of XXXX, majority those some the projects online will coming come terms we half of In back the a but see come at in of boxes number

of the terms up of boxes. -- those looking we In are majority at splitting

mean, number two to position were past so single on these to spaces team back proactively speaks the has the how just demonstrated get out Kmart spaces gate. we years, be the to think minimize the of Then ahead that I -- of ability it of three have than get where was I execute have we when demonstrated again, them over couple far and good that is to We we our we exposure one backfill. a ahead or did will in we we users a the down. taking did, team we productivity have the have this. But not the on

the and pleased demand from with the progress very those which So we're far. so seeing boxes with

you. Thank color. Great

Donnelly Please go from comes Fargo. question Jeff Wells with Next ahead.

income as Can I in XXXX missed QX you give response, the I an direction Angela, earlier what to like if in but QX? you in would moderate could us that look morning. some apologize versa quarters. four Good through ancillary mentioned QX, future

related Yes. received the we XXXX expect expect of tax XXXX. beyond. and the see outsized you first redevelopment to we certainly year quarter to and positive don't a the We will financing year, certainly somewhat first income in we our materialize that some to recur projects. related But income other of throughout to though a That some did again in ancillary contributor contribution be quarter, for full incentive have

saw contribution QX. expect we do for the year, we be again, points quarter this less the stay point basis but positive XX materially you XX saw in to So that basis than full

the disclosure was and just revenue rental same-property the basis points. at of XX which it would comprised look $X.X you ancillary other income. note, contributed that If financing strong the supp, ancillary just other was and that in and really of performance on line Half half I million,

is have a that we to in basis. vacancy more As find space even hard shorter-term on portfolio, working the users really team for the

growth to contributor as the be in and the of a will balance year been certainly that's so for QX And well.

first is, portfolio. to difficult And to throw at a perceive, be try especially a Okay. large I two-parter, maybe I'm guess, going quality in and can is Jim

in -- the Brixmor I'm change you be your you first, surprised So faced if would across second, And curious, do anchor XXXX faced then sort if portfolio? this quality just closures in measure you I in higher guess, we're in I'm box think did anchor-recycling of how innings you of game? XXXX than just if and There later XXXX? say the wondering XXXX and you

And that not stands a ROI ability and necessarily it's center, drive you think real what it's the us, when value fairly to uniform Well, a across as XXX investments I think opportunity growth do as in apart improve income. And the underlying think I from just centers. of assets of is quality it the for do intrinsic making accretively. perspective quality, the importantly, of the appearance portfolio the estate we're that but to the investor, and about those

our exposure seeing estate the happening more returns. part we improve. giving the small To your we improve, second boxes it's as we to yes, quality of tenants tenancy also recapturing not environment the And the relevant. contraction see cap and in our do that level the in expect. at returns in real rates quite expect gratifying in that in small we the have not So actually this over the occupancy these of make proactively to seeing managing next improve, shop expect we're in to uplift we question, center-by-center, providing measuring weaker improvements We're the we're a that couple not moderation shop years, more of because fully concepts. see been the operations We're that seeing our boxes the

an that in actually -- opportunity in what demonstrating environment, think for folks we're I investment present generally an make money. disruptive ability to we way otherwise different And the through this As environment. that's is

folks. Nice

You bet.

with Scotiabank. Greg ahead. from McGinniss Please Next go question comes

just the to Jim back morning. going pipeline. good question on Hey, development

still You retail shortage opportunities. fruit in have lower appear to hanging redevelopment no

Just the could to cost curious right at mixed-use much trying understand development non-retail worth assets the getting ultimately uses? Are I'm how now returns this point? -- you're you thinking pipeline? contributing the for to about development? Are adjusted non-retail investment entitled be how could

like go hard we're university to which residential attractive more going uses towns, years most would working we what's centers, complicated think pipeline to is forward. -- gets that very us lodging, can about so our think with doing actually risk uses, we're about and those of higher we mix about but to that couple start talking The now don't bunch today the shopping I capitalize mixed-use. about entitling, more a a of Do towards this that service respect the complement structures of limited on a on a in our expect think of entitle, which truth work additional uses to created is upon value hard most have entitlement.

and balance And so retail we're striking to so that, expect first a us capital be remembering that about smart we're appropriately company. to between our using pursue that how we're foremost,

some core we it, and our you value-creation the can across amount frankly, the question, is that pretty And retail, core us talk we don't opportunities business. in your because portfolio. within Our of a widespread, have leverage opportunity hear it but is tremendous expertise, of lot realize those about capital of to to others competency a and

we to on along us or don't are hard entitling in so. up the next way that yes, teeing year expect but working opportunities So it, be any

minimis and coming are real Or are they is cannibalizing Or backfills? the second specialty from and how looking just question, is is physical the an for And retailers evolution? And impacting de from most traditional in curious of operations. big-box obviously be at internet should Thanks. we customers all the grocers grocery Are they grocery grocery the I'm the concepts. just your grocer good Okay. those away impact evolving store centers? business. ethnic creating

in a of Well, that competitive. be that think getting their investing their I generally is center. traditional seeing their can grocer their very one and been always value has good customer shopping and customer them food but to typically the to the formats, And the about business to that channels environment, productive. is but you and money a that just of stores don't in existing – The thing locations response lot remaining they so I to The importantly, the our stores perceive that competitive comps, In are that have invest remains to overall grocers the paramount. for experience different I all than invest businesses, seeing their improve both a their mean continue in and very be but think in through what time. offered, the one experience evolve, see traditional lot same more they're has has to in We're sales to continues the a which think in we're we stay relevant. more portfolio customer

that with, just to for that offering centers a So bring we're in to that doing grocer, value their at the use really that we're tremendous growth customer's box continue didn't of money. previously as us when adding be our and an some type look and And and ethnic a you respect exist. for frankly backfilling And secret time community. success local specialty they're of that frankly of the think grocers connect the and I avenue those upgrading will uses to the so center we're if specialty of we're no that with grocers, new it's

Thanks, Jim. All right.

bet. You

next Our Deutsche Sood comes go Please question ahead. Shivani from with Bank.

XX% Good remarks escalators. morning. opening annual Jim, of the has you about mentioned that in the portfolio

a with been if from of to change of with sort any escalators So out new give-and-take there's there the a negotiations regards improvements in of sort ever that? at does the versus just just become shallow lease? closures, given supply tenant tenant curious, start recent Or it

to – basis, which question is on marginal a of point for make because thank our the important. is in escalators actually Shavani, leases. XX% I the you new was getting trying we're

we're important highlight for such period. portfolio we're term, length improve the that we folks that be really strong. line If better but growth competition of drive embedded showing little this fact that happens very quality than And continues growth rent and the not as information the be for to term, supplemental. rent, capital. And Again, is other is that other to our with And only a a our we're embedded type that's also performance. The of fact what the competition over on we're wouldn't little a X%. didn't to in-place have competition, I'm is need only way over leases X% space holding all on to our of averaging terms generating the that right we showing trying generating you continues in you the

are one and we focused that having growth very by more tenant lease. competing space on to something we're it's a the as embedded that generate team than So will trying for that

basis, So thank doing within we're what an on we the to average portfolio. today And you a than for have important understand that far question. as marginal better that it's

is just there additional buy then increased And asked in the broadly as Brixmor adoption in pay Thanks. of of returns landlord to Amazon to with facilitate a the online as – adoption? being store sort in is a anything calls that that do

Brian?

We've have click creates or retailers at and more it's prior have collect. we we've our other with for we've part. retailers retailers been – talked grocers. again been on do there asked No, I that otherwise but encouraging and it online we our a on install feel small mean, pick-up investment spaces, that how to some very There wouldn't encouraging It's because that happen trips shopping about something are the calls center. are a done specialty – our some some buy lot

more our been So with we these and opportunities. them retailers of to have encouraging invest working in

they're And for part retailers want our of right? type So the also those frankly, implementing we take where us are it that Shivani our marginal innovation that very not, on are that we position clear to sure it's a signal investment doing to properties. at make that

much. Thanks so

You bet.

Caitlin Burrows ahead. Next from Goldman Please question comes with go Sachs.

Hi. at you are guys think X times I target wondering maybe just have of times. and X.X the leverage morning. you I long-term now was side on Good a

growth time? a you EBITDA So six to is a of of organic reach times over kind that function be going have goal And to by? when do primarily of

the was years on as on last amount sheet. strength component this holistic the balance Leverage devoted certainly that we've the reduction contractually if really we've a straight do of and billion mean, dipped we're really focused going I as the EBITDA the this forward think growth is use to that, our rate lease on that side. tremendous point from back $XX entirely of year, representing go I point, $X two in I'd that revenue. – million spent X.X basis And have prior spread below quarters, time debt-to-EBITDA you our believe the of now of was remainder At almost XXX and of times obligated the about earlier sold mark, leverage said in comment the build point today reduction. it between over Yeah, we proceeds to for last rate a

As that debt-to-EBITDA materially you're income number going its to down. comes that online, way work see

off duration the operational we So across our We strength very debt balance sheet. and it's and certainly financial of extending on obviously feel a tremendous and flexibility, our that today. all monitor balance the consideration of of that the positioning given good closely, paid we've fact amount something created sheet focused a about holistic really the secured today, we've

terms then in But on I quarter? quarter first And bid environment up a just reflective during that few Got low the it. maybe just And a acquisitions come property of activity you no first the acquisition the tough guess, dispositions? it's properties the on I did times. side, on of any acquisition or in relatively is think

Mark strategy, investment about soon with opportunities, core to, are bit to alluded let I environment a where consistent markets. I'll value overall as added that we our importantly, have And little within we announce do our acquisitions did. think the We we talk expect

Yeah.

and hopefully value-add assets longer of table. when you on than that will party With near-term at assets apply to hit we're control finding advantage a assets little strategy. it's to that get And contract with looking can Bob that where Jim drive NOI, importantly, peak a to that we're under well take think give-and-take the them get always long-term an I creation. will respect there's timing, growth buying But it and we your you platform. takes fit asset with think we're at across earlier, I below and always platform our want it really seeing value we're to respect you're important able our our

what compete. the only with which just but two do to local right? take drive do environment. that our some our leveraging What and relationships opportunities subtle, that? and opportunity about strengths to But market, and we those is outsized and think are bit we powerful, It's be I leasing It's to something, understanding competitive the we they this talk where leveraging that Because also in ways platform, that to highlight we mean centers we have maybe not mean? know We when Yeah, we understand identify more again performance in more a a to want tenant presence value-added we're and things. IRR. about really have there, we're where already

Thank Okay. you.

You bet.

Next comes Wes Capital question RBC from Golladay Please ahead. Markets. with go

But low your about on retailers where the everyone. And basis. said real Good profit. you definitely with relocation you comment rent a guys. Hey, you focused talked quality the having to back morning also I want disruption boosting that is to go of centers. to are

question right you And for on focused their at are always you is debate so centers? have get and tenants I going So this my your we want or both more the productivity rent to now level opinion.

They that serve I presence net to also beneficiary been ever of. how their their do. exactly I is, traffic than customer customer. who customer which understanding of a in sophisticated think are we understand they before think Well, patterns locate But to to store invest tenants we've a the a where more better need and bricks-and-mortar

tenants are in bricks-and-mortar helping that centers, So, us a the hear are tenant's The knowledge in don't say please difficult past while us. are to turn their still where these these me additional a may important otherwise. have decisions the bringing it very factors decision, of some overall and absolutely sell co-tenancy productivity been for

So net us. additional tailwind for been that has focus a

the private the are landlord or going more where too from? into going relocations still the shopping read mall to coming centers And REIT? public much to it you the as say Is to

Brian. well. have But these a the be mix. retailers that three, in get and said out out with seen mall a the move of tenants are a key start It's look locations have mentioned have and beneficiary occupancy prototype a and earlier, that. and bit discussions relationships have Wes, large at we have landlords in markets that their in at also, private say we looking those bit occupancy of seen can with platform and and this as we benefit our cost, and that looked they is would a benefit of and lot lot we years productivity can of I these of costs high as at lower of might anchor not where out Jim much four a take role two, similar a so of we with we're competing

prototype. a it it's a seeing retailers in EBITDA right four-wall So, right maximizing we bag, forward going making footprint I are think focused they're on, in with of mixed the and the being bit that sure

me. Yeah. Thank for you. it That’s

Thank you.

Next ahead. question from Please Advisors. Street Green go Tibone with Vince is

Same-store was down about the much recovery basis was touch quarter. occupancy Because I kind flat can were impacted you was when to was this that, that ratio interesting Good how build see what XXX the it that expenses behind yeah, just operating was X% down roughly on driver of hoping and points. NOI? same-store morning.

related the That timing reflected Yeah. might little certain be on too, so been Thanks, maintenance operating primarily as to the wouldn't would repairs the it Vince. lumpier. expenses meaningful a specifically in was cost overall and decline in The impact reimbursement related, a expense have that component that I'd say decline had decline of ratio. contribution significant A the net not of things. the terms in had a from things some say see I build expense couple reimbursement occupancy of One, recovery the importantly two were where we did you recoveries tenants. think disconnect in between occupancy the period. and during why loss I

do actually centers the in on where point some definitely is from but as year-over-year or would you there that was Brian which But that cost there are and in other times from. we impact last So out, quarter-over-quarter basis. recoveries important invest and a I Jim thing discussed quarter's on to that we're reimbursement saw are receive the occupancy between capitalized, incurring disconnect Q&A the on and a portfolio, across continue tenants we call, something

ratio see as the to associated you of the so investments naturally perspective we in centers. some the making the continue centers with And all recovery we're make from better uplift

is I dollars focused we we sure that our third operating and making those are very investing part the have Yeah. that guess on And we're efficiency wisely.

yield. next helpful That’s redevelopment is color. you. question Thank My really on just

by trying wanted of it rent or zero? tenant NOI clarify anchor does Just bankrupt to yield incorporate situation the basis there. driven get a Just does in prior the where to from expected the the assume redevelopment a an clarity bankruptcy,

not It year by the that it's redevelopment. does. any nature through prior was launch the of a in the place bankruptcy. It's proactive or It of recapture delineated to the whether for relates to docks the rent

Right.

with prior Kmart all hurtling the or example an perspective, anchor an that the repositioning as from So already are rent. three either Kmart projects are redevelopment in those process

Okay. Thank all That’s you. I have.

bet. You

Haendel St. comes next Our from question

with Please Juste Mizuho. go ahead.

Hey, good morning, there.

Good morning.

Angela to after tenant you when clarify question, a few had clarification. this fees peers and one I reported the treats that's specifically wanted a rent of questions on bit first I've leaves. a how Brixmor I last versus guess also lost So, for your week. a of lease termination

leaves add rent year, Firm. in continue fee of non-cash until So, termination And is to more If there you if is they quarter NOI, the the fourth be fee guess, tenant counted were was as to fee, in a as pay through in rent quarter a scheduled year, it you a continue termination back? specific I term pays tenant pick a not end a to a of the question lease guess, if in the that quarter the book tenant that expire but their the book and of same-store lease first to would but the lease? say fourth Mattress I

No.

excluded our and is income further. same-property up shows settlement in NOI that for income periods and income Anything calculation lease quarters as any the calculation There our all full reappear in lease same-property quarter NOI not income between in or that from NOI does statement, presented. parity calc. statement the our is clarify To subsequent settlement the same-property

period. income Everything the clear. same-property up in showed that's statement hopefully in So, on that

that highlight call. in Specifically the call are despite And to associated calculation. our I relinquishing view pay really NOI to year one Firm same-property Firm, space that not settlement quarter's that at is show or I it period will to of to they're that lease last possession that one quarter's they this last is to our interestingly relates on on specifically it's reduction in damages as rent representing that expected that rent. is of Mattress in that spaces time expected up Mattress clarified those and future of tried the any be damages the the income fact with pursuant bankruptcy. year and period rejected

you. Yeah. you. a Jim, That's helpful. for Thank question

part Going pricing there surpassed last initial back and last to far due demand you the the large your dispositions, in your to expectation was what and year. year in updated disposition marketplace favorable

I'm you'd aggressive be to to do willing of share? your that in FFO assessment or So, per this be more should again the how marketplace, current currently balance demand year, your grow desire And the receptive? contemplate be market if curious on you versus

harvest had do grow that limited months. year think But estate. it that real at billion pressure" expect and I got been We'll clear. important last heavy year opportunities, in we lessened an that "focus we that we year I've growth I to we is we capitalized the thought thing over has you opportunity. done environment liquidity. growth last had sold XX When prior, the because limited nearly we lifting assets the that the and of have the on very last part importantly assets markets $X.X ample continue look greatly Well, think we and think to think to didn't in Non-core

continue into want to to liquidity was strong but I expect more for as still seeing a again, bit if you see to coming demand this are want balanced. We that maybe year as last know the don't sell. to that And be But not we add. us assets it we year, Mark

Yes, I think hit it. you've

comes been calling what robust show it or pretty So as from a lower to always financing has rate put a going healthy us see to that we've people have assets. are tried you opportunistic Obviously, demand think And selling, to quarter work. can seen what We of? I helpful hold say so get continue over market. to continue saying I'd offline last money we're a buyers transactions selling to that's when to the we

So...

granularity of embedded supertankers in think what one the strengths are to portfolio part Yes, of our the and are trying kind move of which is our there of important not that two One of the because -- I is we're harbor. out strategy.

so So think and can we asset when do time it's an sell we react. to

basis the The that tax timing with the take-private. benefited relatively of is other attractive given Blackstone we are

a pull from without enables do you will a So hamstring so us that if to tax-planning standpoint. to having

the an we capital your I those ample a of that I and -- point us think a but being flows think recycle. of flexibility the a now things that give have also do also in important more degree great while just think we at balanced is recognize two So stream of day flexibility, embedded question cash is to is product our end and growing which

if And Jim. very helpful. in I That's could follow-up a squeeze

improvements. the on Just

relevant your yet to portfolio You of trade here made improvements last set. the your discount years, pervasive couple meaningful sheet peer in significant still but balance to and a at you and

consider the what would additional not maybe And pulling think appreciating you you that is close do why market curious to What that So help is? levers perhaps? gap?

we're executing ultimately which is think a business get that finds that I will level. something a creates Capital plan tremendous value recognized.

for we're of have. saying and market I so is our beginning reveal beginning executing to terms years, money business-plan in we what last where is ability matters what which to is been to basis think is and disruptive we is the I rent I and make absolutely environment couple show the a I've what where way And execution on know the are key. the relative that is from opportunity that right mean standpoint to maximize we're a what a in basis, the of

between particularly collapse operating the who and of intrinsic great we're tenant. doing I true demand discount, fact to begin And for we're folks quarter-after-quarter we the collapse as what of run where we're tenant Rent some the And of will to continue that sense in But the it's profitable, north I that portfolios real don't so And and again, I make that hopefully, point, executing At as headwind always know will creating some are our doing capital distance got finds be they'd that four-wall to some are that we sky. peers. that. a that ABR is level. relative grow continue, delivering in right? the into value and estate think that higher demonstrating we EBITDA is the think trees

appreciate Great that.

You bet.

Next comes with JP question from ahead. Michael Please Mueller Morgan. go

Yeah, hi.

long How threshold? basis long gap XX% point cross the lease Just it should one occupancy how question. XXX -- you or take the but should know XXX I a to few mentioned it times, occupied take

towards think see occupancy that that commenced lease good us puts to or the build back through on as that we says up have Angela in model, portfolio. often perspective But the And more rent standpoint we're I lease a with expected. certainly of we what part we're signings. is as a us level. we alluded stand bit a say to where than a Brian position so year had back teed because a volume leasing on volumes smaller little And we don't I'll budget harder to doing from higher for generating get

into back next quarters early the is from that to answer between the build the leased gap what's expect end there. of year and will but So year to build and occupancy hard level what that be, and to through certainly we get grow then that

I think a to you mean of three do two XX%? to years is cross period reasonable

me end occupancy pieces close on quarters line both how build it think at XXXX towards side, at list shop $XX put come that we based into from place be mean those to XXXX all that perspective. but we've worked to numbers many in I like mentioned a small the feels point, that on that at side reasonable. as should of feels position the of aggressively this looking that anchor some reducing this the does many, we've like point, feel earlier to on looking I here million as watch time the it at tenancy the about well We're talking Jim on future in in a

That you. Okay. Thank it. was

Our next Linda Barclays. go ahead. comes Tsai with question from Please

handful? XX the And show like were answered. looks But the supplemental build -- for where portfolio. Is between largest well as spread leased high-XXs, build just this properties the between the in on across difference it's your rest to two questions it MSAs. isn't by consistent the and is page of isolated of mostly Chicago, but you the My the Or Hi. a properties your own? XX the as wide this you

take and is quite actually Linda that. is I'll properties Brian. a handful is It hey this intentional. of it

John team over have We that's year new the redevelopment came Hendrickson number Midwest here a the in some in region. President Midwest A last We've join place individuals the in that put tremendous team. opportunities had our been as of summer. last in

the particularly that of the to a at is -- those some seeing you're build about lot So the in of that market. we growing pipeline that we're have as we the and gap Midwest, look in that excited specific opportunities

Thanks. That's for me. it

go question comes from Kim Bin Ki with Robinson. Please SunTrust Next ahead.

Thanks.

about question. of question can clauses that the where the Is parking some lease you or think against? Maxx Just ratios allow maybe do give willingness yourself would it. you touch how you like parking flexibility there's across standard and tied utilization to portfolio? one Ross you measure tenants' is describe your the and to quick they How where TJ plenty with And you second a a to there won't but

Brian. is Ki Bin this

need much an uses seeing is as it to I had. it be and may related think parking-intensive assets, to fitness the relates outparcel become that changes they've related the not tenants or that have building recognized they of that all parking seen other accommodating with like things more much building have We you're even to densification more things as the with that may whether consumer

the parking think is some we I look portfolio. as across and tenants some big the freeing and discussions up our notes in outparcel that mentioned out those of of you've with part it areas So additional a have program we

it huge a look we for as we as So see that, opportunity us. at

of Thank you. Q&A End

further like the for you. floor are would comments. Thank There no to I turn over to questions. Stacy closing

Thanks you soon. see of everyone. some We'll

teleconference. today's Thank concludes for participation. you your This