Brixmor Property (BRX) 30 Jul 192019 Q2 Earnings call transcript

Greetings and welcome to the Brixmor Property Group Second Quarter 2019 Earnings Conference call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Stacy Slater. Thank you.

You may begin.

Operator. you, Thank all you Brixmor Quarter Second And for call. Conference thank joining and are the for Angela Chief President and as Chief on Finnegan, Vice me available and Vice Morgan, Jim as Aman, Financial Mark well call Vice Investment and With be President President; President, today Taylor, Leasing Q&A. Executive will Officer; and Executive Executive Brian Officer; Chief Executive Officer who

everyone that Before contain that based let we statements. remind some may and statements no me comments as described assumptions inherent forward our certain filings in looking to looking our may results obligation We risks are differ future uncertainties of on assume today update subject to SEC forward begin, are actual materially. and and any

to the financial regarding non-GAAP supplemental will release Also, measures measures, measures reconciliations today in we use disclosure our the our our Relations of refer available earnings information to are and portion these these of of Investor website. and on results further GAAP certain

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

have the additional questions re-queue. please you quarter, If regarding

At my introduce pleasure Jim this Taylor. to it's time,

Stacy. morning, you, good everyone. And Thank

report all what in quarters XXXX. to quarter pleased at performance Day Investor the out line our the and we've plan last another with on I'm strong consistent fronts of achieved yet with in several we laid

of and the this several shopping up work of portfolio on XXXX in the As as our sets centers. the team of discussed past as the we've well platform completed and for last importantly, strength part the highlights calls, we've And performance located acceleration very embedded us the growth well our well XXXX, latter of beyond. in quarters potential both

but only execute that transformation at ROI estate But partly our the not delivers becomes based more intrinsic value. each reported real broad in quarter tremendous we valuable. physical put is Simply only and the estate occurring drives that also growth apparent what our level numbers be may real

Said over on Since portfolio. in way, our will over XXXX, are portfolio. our began projects also May were We've company sales of XX% crossed together demonstrates asset or than in through of clearly progress a this threshold an original team commenced value terms three in XX% we of momentum years soon important that commence fundamentally accretive we've harvested remaining our now another different we've we ago. completed,

a specialty center, facades of neighborhood Outside we center drove the Consider continued That sub-market example, tired incremental invested driving expanding grocer, Royal vacant outside adding small roll in Dallas capital. institution, to NOI of converted of Minneapolis, for X% grocer the growth we're a end with new of new and as set Webb shop space. a local that a to on the and doubling updating first return where at center dense some suburb. will and ring we signage return a at and as continue that's we a significantly restaurant for that ethnic affluent a of with grow a a facades room market

market, an that with Metro creating backfilled the casual and food adjacency end the fast just square additional North old we York, A&P fitness New in with center high feet a from community acquired train XX,XXX Mamaroneck, In food box a boutique developed for steps that's an CVS and an affluent station.

Area Trader entire remodeled sub-market. center California, which added out in the a CVS an desirable with easy a purchased a this XX% we a total Pleasant and we Joe's And fresh parcel new incremental shopping backfilled line, a with old in highly at Starbucks return and replaced in Bay

is year million now having return full beginning In deliveries, benefit a like projects to since began. XX% this our of the it are XXX incremental portfolio, numbers. we reinvestment We hit now across XX executing just of the over those delivered at

have pipeline we to and our we have XXX a over commence return expect billion million future in underway XX% few that years. We another over a at the next

Again, great wide but private capital to our of centers the of market cost these quarter this driving point are of second an XXXX continues valuation truly ROI momentum each terms not of And terms in we only our of with transformation. these acceleration the projects, again, is of of improve. in portfolio

attractive our great generated of service tighter management enhancements improvement including at lighting, and low also We've projects, centers, operational local margin provider. maintenance, through LED landscaping solar returns and

resulted a pruned they accelerating our communities centers This in centers shop between one fix the opportunities. We've a a connection and shifted we balance prior acquisitions. better as to half see looking calls, capital a future centers, date level and standpoint, effort more where we've have recycling and balanced of discussed From has billion growth aggressively we've to those serve. strengthened the sheet and small momentum on don't and dispositions sold importantly over

on to shopping across we added opportunities center quarter Plymouth retail execute us such on center the as the shift Conshohocken during Square closed street XXX% in from our a asset. Plymouth allowed value Whitemarsh occupied This XX% great the Pennsylvania. has is leased

rents. demand North to part fill to the in from XX% the national back our at plan million X.X Region of and already rent saving over significantly we've offices generated remaining tenants We that higher move center, tremendous to

in driven AVR of XXXX redevelopment growth pipeline. today. ramping build in-place same basis is it we growth with that provides all numbers XXXX line our this estate when and to nearly the level, driving started the depth average of top delivering. X% foot from are our growth much per As in ADR by you points we even in-place to XXX occupancy Consider greater quarter that's That consider real happening drag at the over

rent quarters take leading commenced and which yet over pruned Consider occupancy. XX million renewal deliver a but consider tenants XX% that portfolio sector, that of that's the million leases several but feet new quarter, will lead XX%, X.X been of a spread signed to as continues square cash signed the sector by productivity to continue next this have on the not over

and and reduction corresponding our share exposure. Kmart thriving than of now growth in Fitness Ulta dropped problem total T.J. less we have revenue. of and points exposure as put, XX basis Simply top with to Ross, Cerus, the tenants L.A. such with Burlington, is importantly Cerus which market and tenants our out our like X below Consider XX Panera our dealt

of trailing months, Consider records up began. in the which and in bankruptcies shop, small ramp and to year XX% and set over we the $XX foot lease from when consider occupancy is increase year AVR recent XX despite the per terms shop square new for the first redevelopment small continue we at

that communities tours to even getting tenants several we're better the XXX our physical that transformations years points billing we value is and out-performance centers rents the invite over not our transformation and serve. between hosting be has pleased several only what growth Across the billing We're coming several incredibly more over basis We and shareholders, achieving we'll we drive but of execution see turns. Brixmor quarters occurring terms we're with with better the we're of firsthand today for the board months. property up you over are our that what our pleased gap and we've set company, tenants in that been the our at

strategy. discussion the And with our Angela in of self-funded for results capital to your over Angela? in turn that, more interest our for I'll Thanks us. detailed call a

Jim, good Thanks and morning.

quarter our property we quarter execution of same to expand driving improving pleased of in per the on strong I'm to of while reflecting as second growth transform and stream. $X.XX flow portfolio share, also was another FFO continue significantly our quality cash growth X.X%. wide the

pipeline. of contributed which strong Same bankruptcy the more which during growth value base has result quarter decline offset basis NOI occupancy enhancing spreads property was as by activity been rent primarily than a over XXX and a year our of strong successful despite and execution driven build continued by rent year the points reinvestment

other addition, an second net calls together ancillary contributed recoveries, bad growth offset of and partially percentage In realized on a as debt discussed of and and quarter basis by contribution previous points negative year. XX significant which the from to rents recoveries expected last due in was additional income

Bad to our basis or been to XX in Totaling line points. points with revenues versus of XX rate basis total in long expense year of term run debt XX XXX expectations. in basis quarter second level XXXX points date has approximately the

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

commencements NOI related and Our the property to guidance enhancing has based rent backfilled in always the second reinvestment been quarters. predicated year on growth in on in bankruptcy an of of and of projects timing third fourth the value stabilization the half acceleration same the

million XXXX. represents of of basis over leased online between a occupancy stands during contractually at annualized revenue, is obligated remainder the $XX today spread of As to a points slated and million the $XX which come reminder, which record XXX build

addition, of several the to including timing easier become fourth XXXX due year the bankruptcies, year Sears/Kmart. In comparisons in to quarter

As we same a through to expect NOI property accelerate year-end. growth result,

In to has addition, of despite in relative half positive contribution build a in are basis, down due the which net timing the a from year-to-date to last a first occupancy. year resulted operating costs average on year decrease recoveries in

NOI to growth, recoveries same the normalizes. to full reversion spending second expect property half as we the year, implying neutral be a For net in

represents the Plaza a for Stepping Pete want asset highlight back in well under second to I significant create and opportunity our Point the located a managed and results disposition Bay from distillation of It's an St. our quarterly the to harvest in take quarter. embedded to value moment, during transaction base. the do our of historically strategy Tampa,

was the XXXX. of the quarter You Bay in may redevelopment fourth company Point that that completed the recall Plaza first

XX% upgrade common lighting prototype, We public to shops re-merchandise facades, to a area. spent space, bring approximately$X improved small and million LED at return to incremental enhanced

the our this very process. marking additional rents million small in dispose value we which $X attractively market of strength at over of resulting value in of raising priced creating to of across both execution the the create and opportunities the on $XX to shop center, the for anchor our included and assets platform million limited of elected capital over Based site, to

sustainable, term the forefront allocation of remain remains As our creating our focus to on expect capital long growth, at efforts. discipline

were outstanding credit, revolving to we term million continue second it balance average of in our notes the $XXX amounts further the objectives repay issuing XXXX which of relates by to weighted capital our quarter line sheet, to used duration. and advance million As a tenure on extending the loan $XXX unsecured of structure

we've our execute We with capacity self over Fitch on positive a structure and our July were pleased flexibility plan. the capital and in the that rating continue provides ample credit business our in looking to years order to we ensure acknowledged three will on progress outlook the by sheet to balance and made early funded of last forward,

have all take want published I opportunity to I you highlight last moment that to inaugural which review. conclusion, Corporate a we Report our to an In Responsibility hope month

report the culture central that responsibility Brixmor's As serve. our the centers summarizes, mission of the and ensuring communities center of our to corporate is are we

across highlighted, next few make report and Given more the an standards, corporate areas. as Jim on sustainability reinvestment look occurring over opportunity to capital ongoing around progress well our in these the through performance both as we as continuing transformation to goals and to proactive forward responsibility have portfolio, operating years we our great

operator with the Q&A. that, to And I'll over turn call the for

question [Operator question. first Instructions] Please Ford Securities. of comes from Karin proceed the your with line Our with MUFG

Larry, centers, end materialized rates might headed at up for signs were cap positive there some rates you Jim having shopping or lower did higher a that said on early that that impact pricing? has be

more on let Mark the know, Mark, that in the market of the but certainly I'll you comment this a actually rates - cap it's market you quarter, below bit we're more on sold mix want centers terms broadly, little rate run of know, we where comment the is? to You

consistent what Yes, we've actually calls. remains I'd and we've say talked the that market seen on about pretty previous with what

a big sure is it the We past on than in see single recently definition continue seen a We we open I'm really continue grocery. that haven't the tried tighter of retail some capital significant to retail trade assets. significant high to accord little pricing do their but occurred, seen portfolio we've movement. chasing once was that all believe

When I we Karen, it we is that's every higher. with assume decision say and make a that or view centres, underwrite as I rates reversion will is a Yes move acquisitions move in the we where interest investment the cap today. higher, underwrite just always higher than rates that, think investments we company will

haven't gut going cap seen to my the yet what transacted. always we've rates are going and but is we be So, actually up it

second question, my similar And theme.

how do on estate to cap much your declined you estimate you rates, your on the you mentioned You in you following more work remarks about specific hard prepared and valuable, asset average significantly sales all said without think you've cap talking has done an real portfolio think have for date? rate can gotten has your the redevelopments

to investment I think that have significant. the But making want are given it. I great philosophy part don't that to it's changes but that we not it's making a ROI absolutely number driving be been started assets. doing we're basis, is only of our incremental we portfolio, lower valuable much a meaningful. that it's you will steady we're the tell what the on those more state can rates on I the But cap when so across view than assets

this I are As important execution accelerating point in is at the plan. really mentioned, we of that what's our

have XX% on remarks, in we've another about mentioned executed original we're portfolio. portfolio our harvested prepared I my of our starting As of XX% or and core

Pleasant California executed, projects in expect those see to shopping in for like anywhere the or Minneapolis from cap can in in centers by you to points. York, or execute XX XXX you rates basis And when tighten on example, New Mamaroneck, we

portfolio not implied invite to get remarks really I've we're harvest at projects what prepared of an honestly alluded creating and rate from her number lowering opportunities that But as do are capital the of that the in you cost of breadth look actually you So assets been we're an we to cap this of impacting. everyday but as we're standpoint, we're executing, we estimate at the more is. give our through that point we and these about the Angela value company, the and we I've that joined more to since excited

making are We in in not the smaller. but terms are many supplement but again, mixed behind benefits use have that underway in lie, do XX massive and more projects better. than development we just we list have And granular that more center provide a terms huge the all of projects plus have our of that. of value they these a They're

creation said million the a as projects Is $X $XX was you created the other think in million well? you've think example on annually that projects, I And what asset. of roughly value other indicative the the that pretty value that Tampa in gave a that you value

to I million think put about $ think great X a work. we about And it, it's example.

point where % X So rate, cap % X% spread incremental, when you a work another that putting creating assets are to gross in value of terms are before any when XX we've are in made and of a huge rates. it returns this capital putting not is you business the you're you cap lot, a to consider incremental in and compression

point have I'm that complicated it have and and would question So require ground million a the part investment other think asked up that duration can more of development four five risk is development to lot with are of also in also not same type more you we have. times our lever and that is we a value the same underway important that glad of the create XXX significant the investment I is level projects the

it. So, now, gives a part latter XXX this ramp numbers that us which the it's you million is about about. hard to money the the actually about of that excited larger that and granular, talk projects level specific real projects we're thing making It's are we're visibility XXXX. of of seeing it into And and what in generate the on generate. excitement come we've completed. great same year important But into part excited we're our It's

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

differently might as years e-commerce of to mortar today bricks ago? a grocers have than are viewing climb, just and investment I wondering if, continues you you various in groceries couple

but focused are whether those pickup driving somebody comment in on center buy as anchor where more cautious are an to online who who or want view we're store isn't, in not with off today, going who I'm in business, we let me thriving this very let a taking forward. let going and the that that's grocer we me their grocers are as our lead are Brian investing on to

I store as in doing are pickup we that into working store. Yes. And focused grocers, standpoint that in something very total said we that it with as are investing have online investment that Jim grocers, calls, both on from just traditional a and on been Craig, more add, mentioned buy prior those within our it that really is on. making eye they're delivery goes the have with specialty the would we we're and

in how And the hit then quarter just the up third much think lease we occupancy, follow on a build XX million you to but the quarter? for of versus breakout the fourth thanks do

Angela?

Yes.

the see of think both backfilled have So the fourth sort breakdown, bankruptcy hit timing XXXX of a which then both great the and haven't of and quarter of fair for that on some provided based setting a portion stabilization third in come does it's in you're quarterly quarter up Craig, we going really timing but larger to growth. we a that say third fourth the to the I of quarter in and job redevelopment the us

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

tenant about had previously question the and the point basis debt XXX I'm context going to think are XX you maybe, you thinking frame range company that that sort points that the that kind that we answer the next to How And a been as XXXX I potential to Craig's to bankruptcy? fallout and bad year. follow XXXX year. of this Sports averaging a of would And question, in narrowing head had Authority had of of prior views up basis into to your buffer expect spread the the today? into on on XX XX-XXX closer you

look you particular, turning as in I sector the couple bankruptcies those think of over quarters and all the our when several see reflects things. yet of redevelopment It start number, plan at we've a $XX that at tenants we're in occupancy. for us an commenced commencing reflects let that the terms and for of million over and recapture it reinvestment. we it as next but certainly in but signed also that the And execution point not experienced the proactive the me important deliver space our rent Let of spaces me begin reflects occupancy of take say build

continue do making to to shop before, overall as that So with climb occupancy and alluded improved that small our said, in investments we space in driven build and centers both expect within see by continue part we're accelerate our momentum as operations. I the to and also the I the to

which said, that and is productive be hundred crying you've what that of we I'm I Brian tighten industry should in in couple in river that terms on do points. With build expect going I not an execute so up build to and and the to as honestly and to historically, team more fully seen spread basis now a group XXX stays approach points to the most acceleration ultimately and narrow continue XXX because we gap occupancy expect. occupancy expected that but of which be XXX we're a while at of the leasing basis

Yes, just in terms of bad debt question...

Yes.

A for XX a basis portfolio. sort been rate run to this XXX has of points longer-term

to in We range. very feel that continue comfortable operating

prepared date. points at As remarks, in year I about XX mentioned basis my we're to

and been that's the comparable that level So for expect - as we look would forward something certainly XXXX. to right it's XXXX

the and Thanks question. for sorry that multi-part for

volumes us a markets? dispositions should the light And the about what been update private be how relative thus why the in year, the slower you're your of we XXXX. given outlook and it's can maybe you bit of thinking for context for just in seeing pretty little the far maybe to secondly, Just on balance

but the that what to volumes but timing. clear expect sold X and and transactional expect latter be XXX do stance. - of increase that the not think of sales to to I Again, never that plan number pretty Sure. Christy accelerate expect business up. it's the more pick part We million year-to-date levels give about we been shift a balanced recycling capital to levels with quarters to on It's we saw long we've number in XXXX the this in more of specific X. we a to really We've I as Obviously, year. in we in asset expect do line term

question with line Please with next your O'Neill. proceed the Alexander Goldfarb comes Sandler of from Our question.

questions. two Just

First, good have with actually, And expectations Angela, that anything just if start Fitch other you this to you is some Obviously, to your on there's announcement. see. then the what given also you could versus guys the sort you agencies? maybe you for just had think you the thoughts just do rating folks I'll give versus been, Maybe your just BBB you you're do bond think-- would've rated? recent you of recognizing priced guys currently what done? And curious, where do how pricing, flat have on

Fitch, do sheet the from Alex, to perspective see done As a relates the it of to ratings momentum very this acknowledges mentioned, thanks Sure, that's over as think, work we're there that really been last you balance on some pleased all years. I three

In other they're or the the for won't way them rating terms obviously, the of I looking credit. agencies, speak at

you know But think across research agencies. and as do been hearing from look rating the I we've the what I

I think as we've execute really point transformation that consistency balance to this on just continuing that really out spent continuing plan think laid sheet. as this demonstrate the the progress at and well on remarks Jim portfolio his the just highlighting prepared I both about to on is

metrics to So specific with any other I to or anything need goals are that else that head. we don't credit think there respect

execute. it's to think I continuing just

we'll that to as we of from see our overall continue over In cost would rating relatively shifted little bit time. the improvement think do towards continue so momentum since to terms a last feel difficult rates pricing time it and capital over and be of difficult in to very We have the on that really, just positive agencies to rating, that say it's obviously work predict. higher significantly certainly not see bond, I time a outlooks,

to in we we will just continue Yes pricing I Angela are something than our where improve. today Alex, market higher reflects said, that rating expect highlight to the and a

your an did be Philly there is question like so acquisition buybacks, the headquarters provide enough to good given It you one asset. stock occupancy? X,X low may but the guess could relocating existing the some your also that trading bit in just a then I adjacent external two you on your regional implied light the that's acquire guys color uses. second Maybe or have to just your little of more the stock's on you obviously And assets, maybe how you But felt this cost think capital in headquarters which saves. at you about as sounds

is value Well, added. this acquisition truly

As I mentioned, the occupancy with our to it overall was about XX%. the office. We're going and to and occupancy backfill regional take vacancy about XX% back of our

saving As Whitemarsh million which of leased center we'll And reposition I asset. tenants national is catty re-tenant be demand backfilled we rent annual already mentioned, XXX% a about mentioned that to as and to to corner or directly G&A. our you from have

also we And upside rents. in significant see underlying the

the as to was asset Mark three we're that as with and the Horgan, well I discussion in Philadelphia been transaction. and think our this office able by great targeting a something we've Reed execute Chris Now, last engage with for years owner really work and and a

important I not going to we that value a environment lot how of vacancy. there's where cap but and else interesting, getting in pretty visibility holding to allows understand this in in terms demand we're and you're us it's market backfill a for team national firm in where Brian give are tenant that platform, why people rates space acquisitions we're with that's us for understand implicit common think of are is that our And to transaction something an our stock the considering

when at our we've why you it's of the portfolio. than more actually part what Just sold, of balance look occupied

going It's to leveraging digits so--that understand to in to double is is going capital, and driven going are that's that's an be, what that on in an Philadelphia backfill actually implicit going takes infill moving the single basis. how interest that's a value, an space drive where we're gives to rates high un-levered demand drive digits, ROR center yield recognition opportunity capital be us to center low the our opportunity capital shopping into

a somewhat compelling also thing. said a I pretty we're common is acquisitions stock terms Obviously, to in think shift as stock. recycling that's we But of meet before, more capital well be as as So, our that many compelling. going standpoint, balanced to as our also times I've our criteria balanced

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

Just few the I of much ramp benefits, then by if build same spread us a and from on of a wide spread. timing you store times could and rank the this you half? going a big importance narrowing how driven redevelopment back benefits a much commencement so redevelopment at trajectory, the has you to bifurcate how the in also back for that versus terms coming a the least being two mentioned But obviously was and narrowing is wondering in at mentioned point the

that simple have remember pretty to that or Well, how that redevelopment but that of anchor breakdown pure meaningfully just leasing don't that I is anchor itself. driven part of redevelopment, is spread much of is spread being an exact by contributing the repositioning spread. redevelopment versus pipeline

next is good as about bring We the incredibly important we pace. right, commencement the you're get tenants feel rent rent online, that several timing And quarters through open. and our the move

did yet we're it's Is it, just it's coming. Xst. And try working XXth day obviously quarter thing terms important to pull In September this Jeremy, that we rent every or question better rent understand, in of I to hard signed, think thought fact, timing than is to a an and of we October it's but outperform. be And to about commencements this now commenced up timing.

our proactively has been growth done we've who shrunk satisfy tenants tenants. viable wondering we of to tenant coming are on think not we're more with don't is and to our leased, to growing the part we've that It's with relevant it that what weaker I'm our the with think are intentional reduced where to increased tenants But, penetration importantly as really space from. communities on are exposure we again, other we're pleased the side get in and going to very deal be for watchlist trying with which re-development, serve.

if on, going you square And where more fair. activities space? splitting quarter, for that's I pipeline meaningful down releasing actual basic re-positioning which them the changing pipeline. bucket those the the River--River added at that I doing you're How bit guess you a I have look Yes, in little more of just mean, the standard you more footage there. Can you involve these like the of XX some versus break mentioned Crest releasing West anchor is just to many redevelopment or Ridge, or us? the seem to this

look you the when we think, things be at the anchor on schedule box really to anchor limited redevelopment, anchor part most as of I the how mean, I Yes. everything re-positioning the to categorize re-positioning itself. will sort that's relative for definition the positioning,

that might multiple tenants. box the demise mean in So putting in and

You repositioning case River that's home, with replacing ultra straight exercise for an foods where profiled on mentioned you a the we're schedule. at anchor releasing Crest of the

Given activity, it of that tenancy process the ultra all highlight we're to on that the foods understanding with that bankruptcy of other you really how so strength putting a the side. bankruptcy, more granular can get try a we working and backfill is

supplement added where we we're larger with to our capital incremental value provide where And the single anchor we're generating. an devising understand the we're important it's And for we're distinction business the a whether I of use full trying of more important in to re-positioning, transparency it's from how backfilling retouching that investor to the think types the putting of redevelopments of a to that you box, and returns show in we're to part outparcels the is center. less work it's standpoint you as range reinvestment,

the that in partial backfill additional use drive I a will or leasing. shop use, allows better up parking opportunities often free it also set opens when longer relevant It no because or that we tell is lot. you uses that's us the with of small to is, we the that momentum

And hundred that many fact, benefit drag able in think in I repositioning, lease in to pulls small space of on fact, anchor. anchor within points the holding small back we're just shops. those few to And basis off the shop new the be on of a

portfolio. effort reinvestment on you to making part we're very full So value our added intentional a range our that the of in it's--it's show

from Todd KeyBanc. Thomas comes question of your question. next proceed Please line with Our with

activity. Just investment circling back to

longer sounds net next year then like or us So recycling Can more think and pipeline should you and But like dispositions this provide think said you current in term may going little we the plans? of sales just maybe and you a acquisitions the timing related bit about two. full look your know remind quarter the acquire that color you increase was asset around both I capital it it but forward? and ultimately are for would quarter

little million. expect would opportunities on million to I that types we're at on of Mark? term average we're be pace on did terms part again, think specific we're the the the half that XXX to to provide seeing but think, acquisition this multiple about that a we talked Mark on the side what to Day guidance I XXX what we year but don't levels of the we we Well, a of close is I'll Investor of year back let bit annual be comment in year. of in of the first long

I strategy strategy. it the side. just remains--remain to guess pipeline that the the up dismal targeted on about be we have acquisition that mentioned where think our should that we pipeline would remember acquisition I acquisition important a very on Jim save about What's the

the have bought really acquire I of and we last examples list We assets. like those we'd are Plymouth Centennial quarter, assets assets of a great to and that think to

assets a of quarter, of things. I assets that both side we value they're We target what we're want already, to Brian's the on we doing and bought can to and which team to great the where real platform and Brixmor last drive think, leasing testament momentum is, advantage take seeing growth

respond to are acquisitions. We respect very don't with market. two what's on the to just simply we disciplined So

time. try really asset value the our where those competitive to we drive transact with is company with communication So owners that--that what find assets we're to constantly out competitive there. in and target we'd But remains think can advantage over is we that like that the for

driven side. to are which sides, be of what see opportunities will small the on I've we of The actual investment drives said, balanced, we measure by in dispositions other right. Todd, in both as And trying be terms a obviously number

same part And I Angela, store. guess, the on then two question, a

in about you're store same talked growth anticipating. that NOI you that So ramp

is EBR should net comp tough either And in in today You in or this in mentioned be debt bed to of much talked bad to million related there consideration? about the when you've Is recoveries XX we you say what's period the quarter were you lease or XQ commencing the of that XXXX. that to up place against. year build the of incremental about lease you anything thinking else roll million about XX model? How the take debt would in that then anything in XQ or prior

a to been I in mean as QX the at expect certain QX, net take cost relates point year second year-to-date as in timing And we we a revert just on recoveries aware things look to of has it that operating and of think of I positive I just first, based spend the basis. on last to contributor items. the be the to terms mentioned half of solely

highlighted I that. So

the my thing and just easier the prepared in the get of fact activity of timing The the other fourth remarks that was does some I bankruptcy quarter. XXXX the comparison in mentioned

and a fourth Outside of roll to going pace that commencement the that, then really commencement effect rent of depend QX is obviously really we in the entirely - that forward into on cumulative trajectory as have it's QX into QX almost quarter.

of online million commenced remainder it of coming XXXX. but through not As the the to relates $XX here signed that's

going significantly lease relative of you be incremental ratio that at have look is a we if see, you to lower retention out activity. if expirations schedule, historically to think expiration you're to going tremendous that you lease I assumed have move and the did even to amount than had,

I this acceleration above activity. think that guiding the evident we year the kind of So think beyond half in of it's a in the really, benefit and be run sort net normal is to of second the to of rate that we're do this going really

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

for part a question got multi bit tenant of I've closure Brian, you.

So first kind is you And utilize when implication with seeing the the so to of methods you are expectation spaces? for Dress that Barn locations what's to for that those close those with how risk of similar brands? beyond December like addressing the what some for up closures XXst closure are demand secondly, Sounds other gearing brand, today? is that the dealing and

circumstance XX% has well end with with the several which Barn Let unique. upside, do first already strong. are think think get part expecting the talked those at for Dress because recon. XX%, is as of the at been demand the to spaces you each at on We're the those take we as year is With me we I ICSE those spaces many of back Both spaces Dress Barn to of lease we today.

back So in to be those a that be we of start to spaces several seeing on in already position coming expect income a and of re-leased. lot XXXX,

retailers a whether sheet they proactive nature balance our a really good has think with we I Barn read those stores retailers balance the don't I this across say whether that but there's potentially point, other done what there retailers from through know back Dress least to team at would been I see. portfolio are has and sheet or with have an is what a situation issues. of unique to closing Jim's overall, our

of we Our team it, ahead ahead of we've it. has that continue demonstrate gotten to gotten and

So them get back, a position we that do when lease quickly. these we're to very in spaces

both do So and regional our our national platform I'm team that. confident to to continue

three on there, what based Looks what's going like general in see top store is a you that the I kind And tenants risk list. risk assets? for following tenant had up closures just Craig's question. last on mean, the from mention days? grocery it's of maybe is overall you did closures? higher those your just what in traditional plan on then I'm XQ grocers And curious Albertsons these

to knew strong performers. Acme surprised two-part Albertsons those closures those we’re were incredibly related Northeast locations that we the the close. not weren’t locations well question think We I by

If portfolio in look with of very we’ve with California our particularly Southern at other across just the Albertsons you downtown Safeway got some and and LA. Vons opportunity work south Albertsons’ with country strong Vons

got that we with box Metro for to split have leases backfill specialty that. terms demand In We've going Worcester center a and the in that. all splitting have out those lease of were and good as Boston we’re entire where on center to the center grocer pretty in already fitness on well had box for we

investment. the you point grocers think back at traditional about if I it spectrum look to Jim's goes across

stores. we the and whether Publix whether overall. that's be seeing in fleet grocers And traditional we investment HEV across sits where good at looking feel where investing that see pretty about whether And center the shopping we if that's Kroger they're investment are really is And that than in well. our that country should the that investing as with

cost good trends per feel about we say were very below or and seeing which X%. foot. their average I'd well our And sales trends and importantly sales the Greg, occupancy

back, a happening have backfill this course natural Albertsons get do when when but is viability the change we grocery. of multiple have What's space So we the basis we options we low decades. what's it marginal is and we to this do over in is like the of overall that in business grocery its terms been recapture - part and important in of not a

business our and the in stores have continues of to to in from traffic source outcomes their the it Brian think who partnerships seeing with point be and in We investments. investing vibrant centers we and best sales those great are

part be have So on in not the center but with it’s doing well your that a as is I just higher well if I - everything how of in question wouldn't category. risk. suggest tenant it’s you best doing. focused your I that It tenant would agree business, with the the a be could risk think the very to

have. some demand with that around an opportunity the things of other one to frankly relocate. national we And recapture And I of think becoming increased willingness tenants are it’s to for also that positioned this of the platform is we assets us how

seeing you that numbers, are we just like one Conshohocken. decisions, in are in in that acquisitions you seeing our So investment did our

value disruption and a that's that greatly driving growth. from So we’re occurring this is something benefiting both

clarify just to Shops don't first similar Tree risk Dress the Christmas see And Brian question Barn? unlike for you to

now we we right can what Not don't. see

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

How you you attractive disposition would earlier sources to debt just to and do other? what even of question as going then second to half property you one a follow-up a balance Maybe about think with from more the into when the make XXXX. and capital expect incremental

Yes, we’ve been plan. have the laid the very I focused think since we long-term on emphasizing consistently

going to plan. funded Now this be a is self

And the so, redevelopment of be predominantly funded redevelopment our We’ll disposition flow. really activity. portion with spending cash it’s with already our funded free spending now

as redevelopment to obviously term these EBITDA come longer move the higher. online projects Over continues

leverage to on incremental there And debt. take additional capacity increasing without is

in course We’re like down the effectively stage factor funding I after these CapEx. will we’ll we our a the disposition. that come with projects cash said won’t with executed significant funded of free as road. But flow redev have after do The plan predominantly this free we cash dividend normal equity the all at from be portion that be

few actually pace of the be years list of hard but And I somebody briefly guess then over kind you watch the terms or of expect earlier closures this to tell in I think mentioned does just that too forward lower maybe at going point? today seem is just the smaller, it to it next do

gone of there, that major we impact have some part for - particular portfolio. There comment of the the that your of bankruptcies and are this through tenants are I to think always this do the first through from perspective our earlier some of as on mentioned of a I we've ahead those, the a larger think watch just of team ones been the job I getting list. but nice that. done And uses pace

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

It high the in new looks like TIs were leases a on bit quarter.

was wondering that? Just in anything if there one-time

question. the appreciate I overall so Yes

during XX impact rent signed you pick prior where would capital think did on two somewhat fitness I signed in those of the leases year line They in users we most rent had cost. anchor which we've with are XX. paying they trailing deals a quarter And said great that more effective the which holding that rent. we had point to a also typically on I theaters we the net not effect it. more the as two done an this intensive and when we has that on we do deals were with been bit quarter, calls and the in a the of line are though even team job is on up

quarters that you been and you we've because reflect to see and does rent. not in remarkably if look terms back several go it Yes discipline, consistent number at that effective

so retailers guess be around so are as in if mall markets. increased could your malls tenants. to follow-up, Are you in And to exiting I customers a And or line example closer traditionally pivoting you leasing quality seeing perhaps from possibly interest lower two? share and an

and being these seeing looks drive are retailers because very the particularly quality definitely that of this the that some occupancy costs or doing seeing well lower or generated seeing a environment. centers at in come retailer think are higher ability traffic ability We're they by sales. quality our malls it to even malls in some And I is to the to

number TJX, those a discussions mall are and and with we executing them. mentioned Ross, got off had a operator Burlington you that with big Body they traffic that, now generating Works Jim Whether sales the like growing right whether Bath whose foot of that Alta, and are we they're its that look program shares at like

to We which pad not look mall Visionworks now ability the customer the see at visibility that the access previously. concepts like see and but to have of opportunities only and didn’t get they

the seeing situation for that from thriving get to also into are are today. the certainly occupancy perspective, in an themselves are air So looking there open tenants space that the tenants but cost best

Our comes St. Haendel the question next from of line

question. with Please your with Mizuho. Juste proceed

follow-up bit here. to last a on Jim actually question the wanted

we key the TI packages. asking that leasing that was themes and were tenants heard volume where ICSC robust, not more at of but generous only One getting

Your are up year. TIs a XX% per versus on quarter last basis foot second last quarter versus year-over-year quarter, XX% second square

fairly consistent Anchor of proportion quarters. those this The looks versus prior small shop versus quarter

and rents we elevated that a can a volatile TIs appreciate I’m forward? be but comments just you I in should for more of elevated so at this TIs and going type we're least And the of curious expect new if number, norm effective on your think net understand TI figures

record a to really with mix. had number had as it deals alluded to. Brian No, do We anchor the of

uses and fitness more quarter. had this also We entertainment

had foot So with the to for the of see numbers and that which per more again, recognized rent think quarter. paid square you much effective the mix the in in it is with with show that net terms I we do that can rent we And we important.

competitive quarters next fall consistent it I everybody be I over I know And understand again the know and that to number. we to reflected been last quarter part sure level net you have it's need the the we are space desire and sure demand our of making. in that that expect to what and the is but we’re economic where this relatively what will as in make in shows rent want that you make effective on the now for - not business Part several decisions generating that have. with the we’re you right probably

way fundamental able over of driving in improvement where growth terms We’re would length reported were deals, not the numbers, continued average to that the show the but we’re embedded through we’re we delivering. we’re competition. the I the the things be buying other average deliver the think and effective really doesn’t maintaining term in our options that we is absence only of or results rent of and deal, that terms area the the like also are the And that X%.The non-face net show discipline. incredibly deals up That’s of not important the rent

demand, through disclose we’re not our and that we’re what's effective we’re not buying you number every centers happening rent because So showing quarter showing that with we you also that deals.

comments we up incorporated those this about average term a last I one finance was versus lease that for the that my of and appreciate follow-ups quarter actually deal did quarter. see year

So….

remember And over mix. well small higher think were totally much anchor. if but reflects I know it I of small don’t shop a last that quarter we’re we reflects deals, versus percentage XX%, mix, you shop

shops. quarter for more it's small This XX% of a normal

it net the it in in achieve, you So the numbers. see ABR see you effective

you Thank that. for

first contract would question potentially you if waiting acquire earlier. are today or questions LOI conversations? you the under just before to perhaps any Is disposition to Second committing there on disposition following up anything

our this that LOI we've of and been are course three under assets have kind for doing contract the that We normal last years.

But we we going be volume a this we at expect are have balance. other year. more in of to side to to party total looking on your the dispose of of question, what Again try we’re the acquisition to the terms bit

some you something put or comfortable… around would willing that numbers Mark, be to not that is

be that We given significantly ramp quarters don’t it disclose going to but in few to that confident almost we’re August.

We are a going to under lot ramp of that contract.

Please question Our the your line Brian next comes from question. with Hawthorne proceed of RBC. with

me. Just one question for

year, next redevelopments bricks more this that should the recapture compare expect for does need to and to year? more space to we how So

that really it pace of million ramp that recapture. space important what's XXX to most have to It’s of million terms the had the I deliver and and about We XXX important have question is in think we recapture. underway to

a is more XXX taking new that that such now pace in in because the pivot having to this pipeline space that to steady it’s delivering and and part expect XXXX point that about expect same deliveries of million start million back of annual and kind number We of as become of an beyond, at important reinvestment we’re quarter and that you deliveries so why becoming moderate recapturing of more with in it’s expect balance we’re we to redevelopment. to deliveries, state fluctuate space terms but XXX for that some we’re respect we about can

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

I so Mark. year I my I on shift, cap out no any last of question a that have the there core if probably the assets is little but change will you squeeze think vein be I I more think part definition over of settled you out some that recognized rate am more of there's longer of been there’s guess these deterioration we that first am going think remarks presuming some had importantly I [indiscernible] for a same what but what's do out earlier no some as part thought question, his of mentioned implies may of I bit, you I this what's longer that I can guess been lost that my there tighten to of the as for of types they desirable. and things In thought up reattempt were? of question that caused segment to in assets and once be caused Jim,

Jeff I wouldn’t last quarter. it’s wouldn’t comments, say I say that over your to one the of

I long-term think it’s years. couple more last a of or of

it change seen from what ago, have grow what you part that maybe core with it's otherwise to ultra You thought three, core were of of can of some ago. definition emphasize, respect its-- see or years assets three four saw people four out that years part of they

I think that’s part it. a of bigger

half possible quarter And this better months what is trailing Jim, I rates guess, indicator? is to that could on in the cap six than or year of the it be we the a seen better XX back given dispositions

in what line quarters. be going we've of over seen I last to think roughly with couple it's the

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

that. in of can behind operating exact saying mid-single-digit X% The a are reason to just operating I you year. ask is same-store growing due the down little You more about mentioned expense that I this expenses was range drivers are behind peers color expenses most provide the timing. hoping your

to in portfolio? bricks just understand doing mortars their So like what

think the we’re in and as just spending cover efficiencies ways where way will that making I possible spend. can operating cost much to recognize I also operating going would as are dollar mean, most from you overall saying do in its we every across and efficient I possible effective focused sure start but year been expense we’ve by Yes, the see not us by full very that

little I one mentioned and this big in do be in the - said, year. of years year and are you and QX bit think year over lumpy items, that that really from my that timing last modest organizationally of up perspective remarks repair of a of saw see the going maintenance that’s following down in the growth to a focus half the first you some timing what So ended the that can X% but for operating this QX and in the primarily just as more costs full-year certain not couple you just

you can in all just be then provide XXXX? then after free what one flow me, And and expect and spend the CapEx total for you cash redevelopment one total check this out including CapEx year last your will what would also dividend

Sure.

maintenance $X.XX and in the of always somewhere we that million for between think spend the million of square We’ve get $XX different year. said going you. add kind CapEx Just should you foot kind $XX That’s for up XX to$X. to of be pieces range. somewhere

million has on Normal annual historically course range $XX CapEx million leasing of to run kind $XX an basis.

value the still value the But are capital and enhancing probably away are that the you pipeline number. said on that’s between change as seeing So that capital. enhancing just some pretty ramps, geography I leasing good think

And value then bucket. the enhancing last piece is that

up end of rate and we timing As accelerate the of the I were that high course above that been during a the think fact due XXXX Kmart do the to$XXX Jim $XXX run our a year. end Sears has we mentioned think I on earlier, those could goal year, million annual deliver of to bit of to of opportunities current spend and million able into bankruptcy execution primarily little the more the to range, an

to in fair you year. NOI get spent, million or - number CapEx for number something half XXX XXX at above decline fair could the you a expect the am dip a a to if just like is that sense up that in is trying So do like total look all? that second million the I that at year-to-date end

touched meaning normal about that think you up course think the I touch consider actually components close full-year you’d the as I when add think It all pieces, different I I value XXX. I above you leasing pretty be number. you mean, maintenance, the to well XXX as for deferent could think enhancing get

sell the so case dividend then much that’s to spend? leverage of the maintain if that how just need and CapEx you to And do level

and million and flow, somewhere it generating between $XX $XX I after after that million. course significant CapEx leasing CapEx free XXXX, we’re call maintenance still normal cash in Remember would

during a to value looking approximately activity order find we XXX what probably be course of the more million year. bit of from XXX the enhancing to little in terms is So raise would XXX disposition than in spend, to

Please Our next question your comes from proceed the line of JPMorgan. Mueller with Michael with question.

How to XX of million I Just but want base much tackling repositioning is rents other to the and of - not may rest anchor normal of back are go redevelopment as number in just to the signed. the you that blocking for opposed portfolio? know the specific have bucket a

It’s somewhere would anchor but fall and XX% total, that’s redevelopment I think In commenced signed to repositioning. not XX% between bucket. between

a I earlier reflects anchor Remember, that. well. of So as amount lot still repositioning as of mentioned significant docile bankruptcy

significant put of So portfolio. redevelopment the across to anchor schedule. A the work were portion try capital the and a it repositioning is highlight We into through portion. significant

two So you ending to the up of not between between those like said XX% are plans buckets XX% I are commenced.

are that you And rate year of implying go come so of by when you after end the or that said run should or on, the on up dime right rents the by that that? you coming not a are FFO once the implying XX million

not I I your am following sorry math. am quite

XX Yes shares, million a rents, share. million of $X.XX XXX

Right.

line bottom the not? to or go all that Should

if sort longer-term perspective an acceleration is the NOI about in FFO. from on property think beneficial from perspective run obviously Yes, FFO rate trajectory think I mean same the of I a you

to take so activity to half and mentioned in accounted back into we I that is think as disposition year as well. going of the the also something accelerate

We to the in the opportunistic duration. continue earlier markets second this for the later certainly leaves of extend coming continue capital Rates sheet. in terms were capital actually on to us And we continue that markets played the year to balance out quarter point back move also in the range duration those lower of the year extending to FFO time. in accessing in since think the to efforts XXXX I optionality with for order

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

to what into this, is pull rent sort commencement you of faster? your starting alluded sooner, terms the to In what tenants of the or can control some you spaces levers get of are within

asked Brian is this question. the really I'm you glad Linda,

platform operating the we with both whether think of it sides construction here our leases many that to we cutting our strength have goes its the on down lease aligning that whether with share the the on our conforming both negotiation, I teams partners tenants time on to of grow it’s sides. it's continue

tenants getting that work or we’re they ahead we’re to of time exhibits have to know spending going that because deliver start force. the negotiating we and money We’re

table. on getting projects that the terms to are time down work ahead of the So, these then municipalities doing and cuts the set our teams well local as of in with that

that focused starting a that laser results it. it's to So, been it's have, we but we've team are on see and effort the really complete something of we

about tells providers you you maybe data could in decisions from understand either the with any then to initiatives better? internally And us side place third-party help leasing traffic monitor or have or analytic

off come in areas property. on revelatory rely that available shopping publicly We centers. trade. I funds terms data the centers on to our need quite that’s underscore And served the understand exactly by trade and how better to redefining Self been of our

at look over patterns within data in and in terms across work our also own we certain XXX portfolio assets of. the are We co-tenancy terms the see that of what how

doing that's driving it does interesting over and up Kroger been that a foot particular have leads of $XXX co-tenancy of conclusion that some you leasing outcomes work. our line how decisions. have If a to part And

our in indices our look that education sort also prices the We’re markets of are actually tracking levels gentrification around assets what's which happening terms metrics looking of - other to at. amongst same and tenants things the at in home are and

real We making an understand estate analytics better on they're decision. location with partners data our that actually their have team tenants how to staff

want can And that we I that better. understanding those we’ve conclusions terms and be retailers shopping productivity productive our good but to the primarily in again think captured certain some is success data that indicate that another been off centers. for we centers So bring area early of of also, would drive to looking physiographic at media social some the of which anonymous scratching on only around we’re had conversations that surface

unusually play and us Girls concept successful. an to Newtown, be there at we different decision Newtown occurrence with which very organic versus of a bar friendly merchandizing type in topic small Night example, for an of another the Out, that’s saw So concept out led proven high Pennsylvania to

So, fundamental we information. the publicly center. the about shopping to are using is about at and And available it's really making needed progress is what’s the different question all am team which tools smarter type a excited number of answering I continue to get again that

very to not - are utilizing on data. sensitive personal We

I We Ms. have session. over question-and-answer end of to for you now would back Slater like comments. reached turn the floor the to closing

summer. everyone joining of rest the us today. Thanks Enjoy your for

does teleconference. today’s this gentlemen, conclude and Ladies

disconnect at participation your day. a this you and Thank wonderful time. may your lines You have for