Brixmor Property (BRX) 29 Oct 192019 Q3 Earnings call transcript

Greetings, and welcome to the Brixmor Property Group Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

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

begin. You may

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

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

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

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

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

call. Stacy, you, our everyone thanks and joining Thank for to

on-time delivered promised. as Brixmor and quarter This

margins provides own reported what the those per of years rents on of results property to visibility share opportunities are the for what higher on that in and but plan not of several headline $X.XX, for stronger firm, drives numbers control, same strength Our capitalizes X.X%, truly unique including top the and of and outstanding we NOI our business just growth. embedded of or FFO bottom,

higher allow access without began markets. ROI the accounting, importantly, teams we a that not moves generated best-in-class reinvestment commitment today's construction, capital to that of merely plan our HR And and from several us to drives be ago. a the attractive purpose little strength quarter, of value The centers, each over having three but located well serve. shopping that demand in and are as every strategies us leasing, flows balance that for leading versus communities self promised we of The execute operations, years to tenants through center executed internally to our performance owning next and rents. one cash most centers relevant the finance, those sheet funded intrinsic sector and our since years The delivered have just this towards our and the legal redevelopment, of

Let's dig into the results.

over on accounts million of deliver Our a partnered and spreads renewal occupancy new million basis of leases basis of XX.X%. feet leases feet small occupancy and cash in regional of to shop comparable national new this increase nearly XX Overall of a at point spreads X.X teams cash including And XX grew XX%, points we cash drove over importantly, sequentially. leased XX%. sequentially to quarter

build commenced million quarter. to $XX gap over the down basis XXX AVR bringing new from last basis between and We in points XXX quarter, this points leased

get but the is rents operations haven't tenants not and doing signed as phenomenal leasing job bit in a these rents backfilled. team a commence However, the getting commenced, slowed to while teams continue

capital embedded helped steady we as terms AVR. million our provide in are duration current $XX and with of an nine not maintained and net again once and effective fact, executed disciplined on to pipeline million growth. leases rents us our AVR, held $XX in of leases again executed in approaching signed average those X%. leases additional intrinsic Once be years commenced rents quarter, visibility future In and great firm These with this in but ramp comprised lease our ups the pipeline

cheapest and ups As those ramp embedded of form past, growth the build we've portfolio upon in discussed are average. our overall

Our million reinvestment may XX% If Brixmor, have amount an $XXX involves that quarter, value to That's the love deliver we're leasing pause our and $XX communities why redevelopment on X% create execution upon I profitably that, quarter. more which serve. in in of teams to yield this X%, incremental million better higher ground assets return. and partnered created executing of this up another much projects deliver rents quarter we the and typically at to what relevant you'd which of development to this over I construction to they making same

at I As they're in not improvements in value, momentum only ROI driving growth. shop and small are [indiscernible] level asset increases ROI intrinsic mentioned the last quarter, future the driving

Reinvestment the projects ahead completed and of Kohl’s includes quarter Mesa, first schedule quarter we was remerchandise farmer the phase the a where this which Mira of Sprouts, Michaels Five delivered BevMo. Below, with

transform not this sets San to we the center value at What's tired in opportunities for is from initial yourself community. creating we're how of sites potential done future Mesa for [indiscernible] you love we'd If into up density Diego, pad Mira very additional cool see to that the the power center residential. you phase also find as

to opportunities an owners of underway truly this proud these I'm return velocity million $XXX both at ROI adding We upon pipeline our We and and also incremental pipeline that keep purpose. identifying have active drive X%. our of reinvestment quarter. projects our executing driving the our now of projects of the XX regional

to our million. liquidity continued million, team completing year-to-date for non-core sale assets capitalize total investment of $XXX Our to $XXX for proceeds under XX of assets, on just the bringing total

of single-asset benefit of core we our clustering by A numbers the four see in investments operating this part quarter, is being another in driven exited meaningful our you our markets. the In markets.

is the nearly $X statistic shopping XXX of continue powerful historical that a million our of focus centers. $X.X achieve fee we quarter with per the million fact, In at volumes fewer range can to this regarding leasing benefit top of to

balanced with potential quarters coming prior meet in in acquisitions expect on a the As identified markets. target of communicated our calls, we to number more do

growth of the or leading platform remain will As we our statistics, opportunities to where are versus chasing we so work strengths disciplined. can always, putting on drive in tp focused simply we ROI, capital those unique leverage

execution Finally, of notes to sheet, team. our strengthen million very XXXX laddered us at our record we effective continue tenure X.X%. spread now maturity outstanding have a debt for tight until $XXX maturities well that, We of profile finance issuing balance simply opportunistically and a an yield by and after no

reinvestment be shopping retail to same centers. the value execution, signed not from even including which creation very summary, has well team of overall with the all and delivered our portfolio our pipeline how in inevitable rents leasing in our occur of This commenced, sustainable facets momentum visibility and shows located of but growth cycle-to-cycle. of I In our drive plan shop us pipeline, small and accelerating couldn't that the and confidence weather to all unparalleled prouder on the plan, disruptions our growing from provide forward on deliver robustness continuing year-to-year our

With financial turn the call over Angela results I'll of detailed Angela? that, to our outlook. more for and a discussion

X.X%. fully as portfolio by in across was same property in base positive as well strong pleased spreads to began good the Same item. representing last XXXX evident basis of financial notably, as per by rent Thanks, to quarter FFO points property becomes growth the year, NOI we share basis every commencements the XXX in of the growth QX. since which line metrics. quarter execution driven a XXX build of rent to another contributions operational acceleration NOI occupancy was the the transformation during was I'm over significant quarter, our points points, and morning, Most an increased contribution third sequential Jim, from acceleration $X.XX success in the XXX basis report strong rent and reflecting

to while and XX points addition net contribution XX base from bad debt In XX rent contributed points. rent, both income recoveries basis significant contributed ancillary points, expense, percentage growth, and the to and basis basis contributed other

With contribution portfolio few net made timing net expense, last is over from reflection which the the also of capital partially the reflects a in margin op the years, improvement. driving recoveries we've the of it the investments are contribution from --while

to $X.XX to FFO increased have NOI X% XXXX X.XX%, property our We to growth guidance guidance share. XXXX to our per $X.XX same and

throughout discussed in historically the commencement in not revenue opportunity has been days has As a commenced XXXX. leases an meant to growth yet with the year, embedded signed that high both of and rent amount of risk but you we've timing your calendar the

hitting also finding As I the sooner platform. scheduled combined through and accelerate than believe commencement those get but tenants opportunities this we're clearly are opened rent we entire to of efforts days not demonstrates, days, and operating the quarter only expected our

reinvestment. accretive below our in and results portfolio to basis validate through significant the we on Our saw to XXXX the market rent transform opportunity capitalize

fully Importantly, positioned the centers. opportunity to made our platforms our operating results shopping also underscore we located capitalize on have enhancements in embedded that have the to our well us

redevelopment a result, to base same provide As despite our as in do above that business and the plan not of would property delivery we at are expect NOI leasing expectations next have result prepared note robust we specific out guidance growth X% for rent tenant we year, activity XXXX, disruption. while the to or laid continues ongoing I growth strong through

under The the sheet, million by the the it million $XXX to further average proceeds XXXX used on well our term facility, of extending our outstanding duration. as continue issuing that to quarter structure balance capital $XXX to our repay we as outstanding credit in notes. revolving third unsecured a As objectives amounts remained relates advance XX-year weighted loans, we’re

we providing commitment announced pipeline billion and EBITDA increase, one growing funding dividend portfolio. reinvestment to the at payout of Adjusted our well maturities enhancing the with we have we income With dividend $X.XX mentioned, now on is the business a Last growing ratios value this X.X the plan. our Jim revolver. air and as will shareholders amounts night on have flexibility continue to report a XXXX our to financial our sector. until stream, to FFO in significant X.X% of debt which and we as outstanding value both intrinsic open increase, times lowest execute As commitment prudently our demonstrates no no currently

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

question. we Thank a of and gentlemen, Christy you. with will Please your comes from first with proceed Ladies question line the Instructions] Our be conducting session. question-and-answer now Citi. McElroy [Operator

a minimum you're tenant aren’t talk understanding the just of expected, of becomes it Hey, can which little rents. this rents that then year Angela, in when you bit the tenants good hoping the morning, a and when Thank cash trend you mechanics the higher possession it has about booked been straight-line paying picks everyone. originally rents you. than space

a is occupancy but pretty context build of sort level we And in occurred at of store rent think about question still rent what we rents straight-line how number that is high the in the an good in QX, on rent commencement? also if commencement impact for should QX, had normal which a going that near-term straight-line So same think incremental about the rate run which growth, forward?

course QX the over to had in rent we Yeah, as -- commencing and really the the that expectations has have days. quarter a the right thanks, grown between Christy, we of to and has occupancy spread And quarter, many particularly large year, and rent seen even additional relative and point, possession straight-line how the leased third rents, you're this build of that for later year. tenants in space, commencement of our original your been in function taking to that occupancy the

duration expect rent the commencement reported certainly a third be tenants possession of of If the is point decelerate it tenants many and I going it function of quarter, does between and space, that but of I occupancy the really begin again the space in occupancy look before in the rent forward, would that at possession to going and the this to we've lease from build how gap days. number

into forward rental certainly to look I broadly we then adjustment. income would would I and on terms in also, just that straight-line expect As decelerate XXXX, non-cash and next on I from here, more quarter of

But seeing well. is little as FAS XXX to XXXX had that outsized or above a market As step-down the going the rent XXXX you're below a is to we relative in continue going would acceleration to to pennies share activity. should below that line some in bankruptcy as our basis XX-Q, deceleration I given and fact The that say decelerate the reminder, penny to we you market in to a of layout on from of rent amounts a related a year-over-year well. two item forward XXXX expect see as

it does I in accelerating and commencement. Yeah, our success tenants reflect timeframe in and to Christy, just leasing comment really possession, getting actual that rent that and

to we're push build decelerate, drive on to expect to going leasing So that while continue we to occupancy. do

Okay, heavy. QX, that's QX, helpful, completed, coming some that at FFO $X.XX range thanks. is in I'm guessing pretty from are dilution And dispositions of then to you're just implies guidance there in the $X.XX just your revised which you $X.XX

the FFO us think same Angela, in that in to that expect So, you’re XXXX, can you store I maybe guess, of addition of help to, implies of X% impact I that it XXX. alluded that higher over about but quarters, growth next or midpoint because the pieces major in moving of few kind you base also if the a think annual about range, the FFO QX QX,

as well. impact quarter major deceleration, I as well then, fourth Yeah. non-cash expected the recycling -- two to Christy. components both say, think capital the activity Thanks, the in as terms QX I are QX. of put of well activity, for expectations quarter would The capital non-cash third things you any on as recycling really and

out would growth, As and strength activity, we any for same in we recycling again, then do deceleration answer. from again, XXXX, And impact it's XXXX non-cash activity, been will from from see same has to recycling capital NOI property that and expectations income. say, importantly, then expect, look backend the I capital XXXX, rated which some effectively you

is question your Capital Todd next with KeyBanc The with Markets. proceed you. Thomas from Thank Please question.

thanks, year touched bit sourcing were Jim, to little on on about you Can I you some up side a you a opportunities deals than be here? potential acquisition active after you seeing in you a the think expect Hi, the XQ. pride acquisition more briefly, more quarter Are XXXX there the good out little it and morning. to pipeline in XXXX? talk would shape

comment Mark let I'll Absolutely, a bit. little

right that our key some in market, our the I do us remain of that assets of for are much necessarily now, noticed to We markets. assets more strategy going more expect be to lot 'XX. have we're the that remains a pace seeing drive opportunities. we and is tight clustering pricing we further our on on And aren't but we've What think what pretty that disciplined targeted to front, but acquisition in balanced target some would accelerate

is pension interesting assets in respect some current in sources to their the with interesting reduce to overall the seeing we're pipeline, market, and funds private portfolio opportunity. market. I exposure, equity opener asset leading been to part Certain acquisition the Yeah, think, into have some individual activity bringing which retail and

also the So time I class think an we'll coin that asset resell seeking the asset classes. major increase flip of are to see exposure, our up that that over seen side increase other – other screens the of time we've is in relative because that somewhat inbound private equity resources cheap

and when quarters. is investors seeing But market. list, on can it about with I find those drive value disciplined pretty and very disciplined we we're recent So and in our healthy expect like Jim deals couple in past of here, are the we show bid overall QX. the allocation where about said up the think remaining to capital with deals will the platform did which think, acquisitions deals, to well talked with I type just just do that shouldn't we of we us for It's do we

longer-term Okay, your target, and/or redevelopment below for then consider you Is How your are peers equity common Angela, up great. thinking little And that? some down maybe of a take order plans your that maybe future one leverage to bit, here? deleveraging you in something sold acquisitions about cash accelerate recently. opportunities would

gives to what funding and our flow we're over several We doing level. I'll generating. promised balance a us the ago, Let free two which years capacity where Angela to years to great addition for at start, adequate finish. over brought cash we we're me of let in -- think have level What and sheet we exceeded this

to capital And important sources. so that don't that funding to external think we going makes in could have most drive different it the to that at but don't set plan we think up price we a what about dependent sure access sense here. I self-contained on is to levels, And And was markets. not equity very perhaps, forward that's us important is ROI planet drive issue growth, make that improvement our

few benefit to years come of we only does of additional that that, is leverage you Yeah, And EBITDA think we the the below as our quarter. to large I portfolio growth, and see the going that drag. is the rent really a harvest work over we some add drive time have thing having going that from time the adjusted on across said portfolio. is market what a -- the has last all the asset we've now that I deleveraging of -- for terms would you're significant continue that to EBITDA saw in That that part in growth over to in really is on that done basis current

the So that a we sheet think the done. work and balance position, like is is do feel in there that effectively great

and we're to last got left there preleased, with not we're duration. Yeah, reinvestment that cash is sheet $XX side of our every out. much like we've we're the the the Most on the of quarter it's is left great the quarter Angela's flow, point that comment it matched is make million comes balance And risk I'd with funding this the taking is activity it of what just online shorter sheet. balance our doing. And as this way delevering incremental that’s demonstrating we're side returns,

we're good feel on. very trajectory we about the So

Capital with question. Please Thank proceed your you. The next question with is Metz from Markets. Jeremy BMO

and working with year. Hey, have disruption the expectation store and and minimizing retailers deals Angela, some or same like landlords good to restructures actively X% next for next you Bath Bed higher models here mentioned been morning. year,

can broadly range here and more XXX doing thinking comment target? been next have So you to XX bad to relative I about typically you you guess as you're maybe which basis for points, I'm historical just year today how same the wondering of their see debt you

I mean it's great -- I question, Yeah, a Jeremy.

our that engaging to existing I from position from is a given rent different do the portfolio than is fact platforms really many in renegotiations other in we're of a below We haven't contractual been market of conversations. that obligations think relates kind tenants. I perspective. those the think

opportunity to if already we So been think, market do reset the take haven't we’ve market. proven And with we and order capital entertain let below to that, but negotiation retailer. rents in willing specifically. able then an we're to I backspace have entertain in as to I'll willing do that, to comment more deploy order have that been rent cutting we accretively facilitate to what’s a to that Brian to

think, of position. mean I in Yeah, I we're Jeremy. it, Angela most covered a great

You backfill that retail we've can of quickly. it those some We've distress taken terms in them, commencement them back. market see to the space to brought backfill fairly there leases of

us do. have, So it position in puts sometimes they do when a portfolio in retailers and our great certainly

Yeah, portfolio as year line that be comment bad I expectation and certainly bad we've our as as additional well on the expectations. outlook, in that debt rent for always tenant disruption expectations for of in specifically, That’s across said that to that in We're points. this relates would our trending in see and certainly just year the of mentioned you our it XXXX next assume the about incorporated base and of right level my XX year, do next debt range we your said, XXX well. as our a are middle basis question, to

is with to I quantify, I'm flat the positive can would want up look so And side being I my XXX recognize giving here, really points, done into having sense much, a Yeah, NOI that the kind of into here. net? that same you color growth impact you've addition costing you're to redevelopment Any capitalized, here, be how helping? how Thanks. can we is? And as an well stick trying redevelopment of topic how obviously expense follow moved then more, wondering that's all just there walk Are as better growth, the redevelopment get wondering very project XX sustainable little it's core achieving great? that, that senses helpful. versus or you through basis to on property here, if a

Sure.

XX-basis-point about the for magnitude that include less third bankruptcy But the terms if basis In be quarter XX example year does particular, project, it is look NOI. your recently full we larger the from going when to so in the drag full-year impacts that of and future the quarter. a offsetting. was of redevelopment in our again, The third redevelopment scale basis a XX -- of until Remember XXXX, end embedded quarter, on XX of a property number, on in probably expectation It's points the in growth you're and an probably, with basis. redevelopment Kmart quote is points you the to a been basis, it's redevelopment same order on benefit associated just benefit pipeline, it the XX the seeing full-year on there the points basis process completed projects. all at

to Jim the talked of XXXX. not are occupancy say this last the share have And going of commenced, this can terms recover. relates repairs least to of points owned resulting sometimes lower as across is privately against and XXX backdrop we've that that opportunities to, ability calls, to up few was the of what we're managing doing XXX certain it expenses, categories expenses going in to as terms And in bring of very We've what's a basis, quarter my expenses, it on portfolio. also investments online certainly been critically operating prepared our standard. very how we manage the understanding our thinking as time, and over on the portfolio the about and costs, I of coming basis leakage in years over about time, been, points previous manage as that on to made remarks, basis to and by really proactive a and sometimes best mentioned about expenses property-by-property last at to is end maintenance Brixmor I quarter, would the In the has result, operated we're utility but through in largest

So both Those the things. those are it's of drivers. primary

you. Thank

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

same they did Angela, something it's in appreciate for did? budget big allow Two random, Forever of how Forever I senior incorporate to in be to does much that X% just guys is vagaries just bad of to questions, budgeting are next cetera. that the one Bed XX how store unexpected much to plus doing elements or store some Jeremy sort something X% at year your prepackaged, in you you comments or first, for How where of sort debt your what of everyone XX, look as comfort the it expected is et closings, But happened and a your those budget there? cuttings much whether Bath, instead,

Let start there. me

thing we tenant look As impact potential also would but Alex, revenue and budget, a year. up at out just really look given another not our at do at bottom disruption, we that move we in

not joined. just of managing that getting we've And list we the them as this that think, before. highlight, 'XX, been 'XX, that fairly problems, but we've these about expect 'XX, since were that moment taken we've But for so getting ahead and And thinking one be ahead we watch of just I the aggressively ongoing basis on we to into what thing conservative been I'd disruption at look a is looking XXXX. an

and we potential certainly but environment we've be mean expect doesn't look that contemplated at all there's So like outcomes, that that going to disruption. an continued this

market environment it declining market position unique or that different even see even growth, we're really think we're starting little because we're runway, next at a leases come AVR, are long to drive got of a opportunity turning can profile. to we attracted signing opportunity me things to One And from, relative back today the we've is, that I the the over to thought lease where maturity and that rents was our three and leases disruption, years where an those in where that if a four in this based bit. on have of look of I you

don't think of managing that's the think terms of in it. for we think We just XXXX, So we we how really it about purposes how about portfolio. about are it

minimum, second next is the the bullish bumps year question raised increase dividend is your that little in because X% X%. same the then dividend on is bigger trying given much cash with the doing growth flow of to talking reinvest? sign, and or how your guys all to increase because that relative rest dividend commenced but -- that, you on the call that signalling NOI, the taxable that the not have been think the is just And and Historically Okay. that's you're store to is than all Just comments going you're about just much NOI? under yet the the

be that cheapest which increased to dividend last as capital view where a that expect payout our form produce with expect is good record in a we’ve the are generating long-term internally certainly we're we so of we did and to accelerate track we are position what towards the be that our signing it's we sustainable dividend taxable delivers, really to managed position to follows but income do this We time that over increases. The the to that X.X% year and year, in. income a we that dividend of

Thank you.

Bank. next proceed from Sood your Our Shivani question. Please Deutsche with with comes question

there longer you're Hi, different good small of little so to underwriting could about been then is [Indiscernible] see bit has some an get twos, statistic how process? the for morning. expects anything important sort And online? to high economic this cycle component gap the we as at the is Understanding how few see the growth, a of redevelopments vacancy this approaching up start to expect quarters, in May carry XX% shop to the that

is we that started I those And which we ahead ago, thought we we X.X absolutely much tenancy work, admittedly were have focused weaker. as are shop it because actively not moving how love doing financial shop and our more outperform, managing do their that relates this to et what to small that's we really portfolio go tenants but and question. stronger of these ourselves all as to something late are took a on cetera. and forward, actually I our the years XXXX And that And out be the shops is what are plan of levels cycle And of forward, in that the we to growth then with weather shop small is they proactive portfolio, goal strength business small calling what as delinquency, move doing lower more trying view XX% shop occupancy. we much resulted in result in much shops have have they to at think credit. we of of the much shop that XXXX, capital position to the put small small base tenants, small

and because see upon what really it be in our invite much and more shop changes, improving for is assets. how that to in supporting of better closer that it to doing you and we're the it the something goal better bringing which statistics, you'll all the I mentioned XX, last And operating be we're that quarter, the growth see that small get with Our we're to these doing capable to again, opportunity. the leasing the tenants is this capable at you're asset better get level, and seeing I out doing, you is but that we're much will think anchored we're portfolio repositioning in, I

And of point at retailing think or we the of brands concepts continue think, any we're concept. expansion to the of this Do concepts of I guys price strength and the all? brand and hit you a then beginning to Thanks. concentration, of off the about the hear

one new take to let vis-a-vis terms think they of a continue serving those trend going and openings. bringing space white disruption in in many of of that of that to we that's Brian them the tenants number more true how do the them to store of community a it's happening of sales, lot occurring terms full stores, value? way where well, think price going, but have great that's what's make of part observation I'm this, where a is is larger with to they're department those product going, and And

I the just Jim Yea, head. add, it would hit on

entered and there Midwest, the deliver improving stores be just white want shopping excuse at if done opening for the these this in speaking you the space And at main even stores. in they first the There at Ohio continues yet, of not Ross look like white operators keep their within discount, If out Stores, me, continue Burlington's they -- instance, to look year. brands Northeast And their TJX, phenomenal people they're job. into you value. to a space, experience a for

for picking up out department and stores continue So to from as and that of they're most see good we point, going space Jim's traffic, demand to them close, white forward. space

And the throughout and I strength tenants, Yeah, is the have, And exposures individual is the of should the XX overall portfolio. do we to top that our to or side and I this, important have about just diversification platform the of we think mention it's strength the tenants our top XX tenant that do of think management. portfolio other also and they we where think be.

Our X% of and that's largest tenant intentional. revenue, is

growing, stand are carefully concepts we of so the relative importantly, how are watch them? where from we our to then standpoint, performance doing do on are they that sales that, And a side to exposure what and very other the

Thank you.

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

you especially, some trying just the markets the I'm markets? in seen or have Mark, talk color can it but as centers, you've Jim the Jim. about markets grocery-anchored It sounds secondary the pricing of to held secondary get morning to like core relates in Good here. firm,

in markets, very we’re the grocery-anchored side the strength the stable, depending of what actually perhaps on actually rate primary think, might I seeing on grocer. say, as quantify on cap you would compression I

really side On call change. you would haven't side, what secondary seen we of the secondary that much

to continue across We assets that in see country. for XX markets are the demand not top the markets

of to amount seeking access continue assets. those receive We to inbound ascending type

much of there. the haven't of the change. how we has, not a asset seen of When seen strength so really grocer, really time, down like comes drastic been to, over estate, strength change We to the managed it it real haven't a always

in still bifurcated Liquidity, Samir, seems that.

clearly an in tends which opportunity us If long an forward terms under hope above are you going where we for you this rates million financing. availability lot million, a pretty by in where $XX better, are will That's, if pricing million, it's asset because really to I of $XX the competitive, and today. of priced driven being below interest still that have be $XX small of what's have think, you assets shrink, get measure driving the

advantage just could down I next been be of of could you disruption there's next in mean, net more secondary I line of holding net of firm the that, obviously, mean, right, just that the maybe even grocery, pricing, being mean, come given to take markets, and in year of mean, sort in could a I sellers about follow terms becoming I bit pricing mean, take as sellers? up, conversation seems even year? I lot what you that advantage a

We are really balanced. being focused on more

balance a and platform repositioning did record the long-term Pennsylvania, and strengths where with that tenants, plan to more last national we which of And that the it indifferent in we and a those be relationships perspective experience years, Conshohocken, on frankly because to to selling. long-term or real we which like like frankly, find we deem unique puts access long-term of and apply, think, front a of we the I just and for rates, have for think assets to I in really bit buying in think non-core these cap billion couple with our great it the who the also fund against the us where from perspective, a and have whom don't to allows sheet been of needs balanced. more national more movement from growth, dilutive buyers we ability of to be don't as have which of sold is be. me buyers additional prospects. because ROI a that the set and And And to to many the a be take center think, capital importantly, estate important to platform, the $X.X of posture characteristics position unique growth we or portfolio competing significant the to that I to assets our continue I might capital, in track can leveraged we've now we be over assets be will it's

shining So my you're return. in do looking for going to I value-added not chasing really see those that as drive to finished provide type assets. again, assets to said bright be the us We're us going remarks, an opportunity

you. of Thank comes next Caitlin your question Goldman Sachs. Please proceed The with Burrows question. from

Hi, which just for about XXXX about end in Maybe the is guidance, we store midpoint now same of X%, X% range just think if is X% gave good the to you the morning. the XXXX. at that

kind that as wondering was similar the if you to I a along talk up much you versus gotten of have have showing just what about how played planned So has kind and takes you way could how of puts much come place? visibility out

the Yeah, I'm really pleased come plans with together. how

we’ve at to in importantly, better rents pipeline, the well as much growing demonstrating we're I'm pipeline, position, for which point we're as on. And deal in existing well in on pipeline of as a capital terms on as as really I tenants, our just rents which rolling, velocity to several portfolio where pipeline pipeline, meaningful the And the both rents, process I visibility, executed next we visibility is of below quarters, most range us get are in remarks, And we that both leases in we're that can but and put leasing delivering my rents. incredibly in process and That's down believe a I question that us reinvestment our that's our playing the detail growing just it, years. returns, well trying incremental either defence. take think, provide affective combination, better that for there repositioned or a with a was in time in with the we're we on which leasing alluded consistently delivered provide as allocating several as pleased fully reinvestment a and leases driving in and great market and up part promised are as these to rented, of different how And we rent just you than quarter conditions assets again, to not We might tenant. portfolio and certainly negotiating market where at be the disadvantage next this an to, be the a alluded the assets. of on to capitalizing sitting might as fully if expect to every that's you a you're signing future earlier above simply where market. were in where

in doing it's recoveries. several. operating a had the very say and next see together. what the has And on this and margins, the we come with But we're the better than together, come certainly from would I in So to we're on plan how the bit margin affirming we're just contribution quarter pleased anticipated, plan that real of terms means seeing

Thank you. The with Scotiabank. Please next question comes from your question. with Greg McGinniss proceed

the first to for a X.X% I heavier half was second about of quarter to kind well. Thanks. than year would sold today. think know that I'm dispositions total obviously, dispositions, cap disclose if half fair the a of appreciated Is run And in And what's nearly just this Mark, for it QX? be for dispositions, tends G&A. on the transactions. as healthy you the of level pipeline rate in also, similar And in XQ curious dispositions the of could general

rates So QX a line couple generally even or with for were of things selling in cap there, the assets.

down. assets was QX. And past is the on change expect the of will would don't don't I goal it as in time. transacted you will has Jim dispositions be few to we higher For and control acquisitions lower control, lumpy, over years, and It to match QX, the fund on based I than slightly mix will when that trade be QX. exactly said, try to assets

all be else sorry I you expect to I'm lumpy, time What funded. questions. hit be answered think it your match should run, on? So to that but the long I've over in did don't want

covered pretty that’s some much. questions. the That No,

of expectations giving on kind So leasing us anchor tenants Brian, leasing, finish changes obviously, thank then pretty And we of few as in new terms Would the chugging last you bankrupt smoothly. a the along and details you. it's year? impacts from on and small the shop since quarter, then just mind

Sure. great question. It’s a

with, see been centers. We retailers we've demand to that the adding doing many to of the our been continue we've business from relevant

resellers assets. mentioned, attract online coming the are the investments to to redevelopments we're that Jim our As best-in-class that making, continue

small I out, shop investments. more some pipeline really same least fact we've XX% the robust. small bankruptcy of the capitalizing and year just leasing from focus shop small a pace so we this than on we our and year-over-year, that those And despite year think, of impact, shop From did the to team as that our GLA ago, best year look still Charming. during are is have stat a XX-basis-point perspective, very some a And the to which that on despite disruption and quarter, Payless, X-basis-point is speaks Avenue increase we've had this period

with pipeline, you'll most distributed few been announce the and are quarters. expanding really continue the we've new with next see pleased us in that over relevant leases So retailers the center to space

you. Thank

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

follow-ups. of Just a couple

acquisitions like said implying balanced, that sounds actually be each Does will other. to you right? sound more when close So you're it and dispositions be to pretty equal that

proceeds reinvestment, to but to though fund There'll plan. mean. But it mean And net sellers, to quarter quarters expect we’re hard more go several that average out continuing we’re pretty and that that's acquirers, to be Mark's Yeah, can in be some one may balanced. be disposition of in we quarter, one this to and It net point. what close. over those lumpy

for I thanks bricks done year, shopping what that's we've past including been that just well And the few more mean, retail from then so this obviously, stocks from years, bigger a picture, big have center change the clarification. seeing yourself. for

been the the for bankruptcy in tenants I think are have shopping that space white. focused fact do lot to that that of with a has headline center

rents? there curious the I'm time the [indiscernible] a still houses the matter just road. think And negotiating you've what your does about picture road acquisitions mean is to for kind what of bigger and are different So does of when what of of and just like tenants your and talked business, in you more comes down terms it actually balanced with that how tenants and kind being view and kick of maybe health dispositions, shape that

business it standpoint. but it's for basis matter this terms a mean don’t ton of we're very rent in competitive in that of the that wide a even of but performance of started, reason I is store will I relevant go to product of rents at part need has usage that less some have continue why one driving is, tenants are live matters, a coming to a backfill it of low do several and of to in through we tenants. near but a need cost conviction We next I listen, front of retail the types love the open-air basis work. And to you from to where because couple where people want have with it quarter, a We business. to products. tremendous I space, other we're experience that part quarters. only drive, disruption confidence, is its better all all occupancy types list, that's one not the But the saying does will backfill and what relative I the I of no that as And our expect we only provide disruption relevant. quarters. better this certainly When you remain over funnel to going not in kept next rent a ability

we're have we take to an think less certain can centers the relevant, standpoint, other we understanding taking we that around platform that but of about it we to think risk across the become street. terms of that from strengths investment the own. We're not what important? the center and why shopping this relates buying In ones as is Because apply And clustered are market.

the drive think, market I drive side to we you if in acceptable market that you continue disruption. plan that know return And so has business great as of that do to to we the against outperform on have the your thing last cyclical, you a then have drive that, always rents how what is rates think environment to And you and payroll. vision we're see I investment growth. positions opportunities a don't in and backdrop I'd are, always going this on tell to ROI

So We and that run outperformed when more achieved center whatever, I hear there end achieve. of really ridiculously is retail achieved, year-to-date shopping the to we're still year. the were room at has last any

you the will for that we visibility execute I and who And on deliver, we'd in promise that So us you. those continue and that to you believed thank have. that given deliver of we believe

on a pieces. some quick maybe one for you color Angela, And expense gave some the Okay. of moving good

we expense next to you've certain reimbursements into and year, items to maybe gotten year? of line that next continue Just so Do for curious the as other look capital that see kind benefit more expenditures. continue to you

that from ends XXXX will expect recoveries in in or up XXXX. it than be significant would I less net being was, contribution the

you. Thank

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

to this Good morning. around I leases they're opinion, case for have termination your Is this a question out of a and Brixmor their on to the without dressbarn closure arrangement? most negotiate unique the them get leverage the year-end My fee? is give process. well, what of understanding as able paying

they’re getting this space summer to the did for overall, rent did – many think, we're back. the Ascena hey, made to Brian. industry, this and year. calculation they year-end paying the landlords the through Look, and end I we spaces early situation they the is as same many demand both and with landlords, of at So the looking in us came kind as At across the the of

good I In meaning space pretty it's demand that XX% an least. either far. been got LOI so of that space, committed, at mean, signed for terms of the we've essentially or or

when Plus, spaces will of the got from Five there with get other Boutique we've downtime quarter Below, at some Pet year-end, Five we associated Supplies them demand during but two those Fitness. be we signed So Below, back

pretty far. has demand we're the So good seeing so been

bankruptcy whole retailers curious it? like parent or I'm bankrupting have just other the sense. about were the landlords going dressbarn I'm unable do mean, retailers you of just similar under? Because requests of company paying that dig would a I of if makes leases to of there why? no? the threat just case entity are Was like little love other accommodated That say I of curious the lot in lot a exit probably who risk it about and deeper fees was any like, why why that this a guys versus to

has through leases, come Sure, end do industry the based into the for same on other landlords leases. with made I sure. ability of it off get think, and unique about of itself sense and that any the the dressbarn the very to compared to you the calculation It was and have those to on entity getting we year further, that retailers. Without across certainty particularly that did there signature saw those the rents really

And which of as us? also, getting Vince, made were back, certainty faces attractive pretty those to sense the rents

landlords? with would replicating of sense, was you one-off than something but makes be say It to arrangement see it more fair could this retailers other a

Yes.

with from JP comes with proceed question Michael Mueller question. next Morgan. Please Our your

It X years, XXs looks road, inside like to you is in nice that have see far the or some high need look it years, But to terms shop think number we you how progress down closer had could do to the that? XX, leasing. be of going of X until you

I think timeframe. it's X-year a

you. Thank

Our next of line St. the from Haendel comes question

Please Juste with question. proceed your with Mizuho.

meaningful total the ones talk in quarter, yields via on going your last XX% So process redevelopment, more notwithstanding can declined creating you’re X% quick you the a there? what's to from here, overall just value a couple on bit of the reinvestments about

grow what we the of really, what and all Yeah, to Haendel, we're XX But on good what backend we're really us leasing which the $XXX pipeline. quarter. talking you to what And most deliver. it's in about about surrounding. can pipeline well, delivering position basis that that real And up to a reporting talking is frontend in delivering every while about million great this future mix But what's look continue have a largely that feel is is, we're see as outperforming. at of and the on And actually -- important, only see we're not continue what's to we schedule putting points we're of I the setting underway, leased. we're

– because returns from able are of part that rent where basis we're So great to standpoint. we're in and a generate these coming

in recoveries NOI, second view store points. half and on to maybe to of Thanks, I quarter, net guys expected bit on add-on basis okay. earlier recoveries. this Last I added you And changed? question think, net neutral implied you XX it, in same year, that of Jim. the net Got quarter a neutral be of second only this the half neutral guys your curious, I'm how year guess, this being

Yeah.

mentioned As are recoveries to question, fourth quarter, the expect I overall on in contributor. a positive basis. positive think I a response your will think do I that reversions on still net at that do property to be going still NOI category same previous XXXX be some but point a contributor this full-year the in

better to look at positive a XXXX I than it's what's implied would X% that I contributor earlier for that for and you XXXX. less neutral expect gave or or sort of XXXX, As forward number, of in

cap get, in I be on Mark, exact can but you in didn't to number, question what quarter half here, squeeze one there cap third since, you And I rate? line. Angela. Thanks, Thanks. Wanted the is line, anyone it. really in specific was there don't exact rates think maybe more generally Got the mentioned behind get

we've we end range. the X.X% think the in alluded pretty upper as that range I been at And the to, in were to of X% that's, Mark consistent quarter.

you. Thank

van Point. Our with comes with next Please question. of the from your Dijkum Compass proceed question line Floris

also on lower granular, including as residential project small you Mira I and Marketplace returns do walk increase -- other redevelopment. return maybe would question of similar, them the development, Could the you implied opportunities and should note, forward, total pretty thanks. sites And Presumably that? University obviously, the would Most us the Guys, Mall intel about of stellar. potential to yield opportunities? cost, redevelopment but the you alluded components. think see been Superior Mesa, have couple also Jim, going on that be could are some through of also many probably the larger as Hey, multiuse opportunities I But you’ve although imagine. how redevelopment

big the housing our we're properties or about is doing those for question for housing, I multifamily. we're what of opportunities senior talked on sure site. its redevelopment admittedly little teaming market best and because past And and or additional student of appreciate up been support picture one in don’t about a would that those us making type sure then over while And we approach the we believe from part university for place control thinking densification, of entitlements that that's we've have to entitlements a XX of that that many getting bit I which lose way value the assets maximize this some has additional is raise taking been over conservative whether the we residential the making the calls, of standpoint an residential most density.

about we're represent, capitalizing quarters to And more out higher to and opportunities what's but rates them. next we of our start that core which the core of not competency opportunities in at return retail, question, couple what in tremendous know is quarters, how much have so, those and expect But several talking we is us that's in competency. your embedded on our

these put very of move So us way. as and balanced we the in and expect densities sites, do some forward responsible higher on to a

believe Maybe of them stores remaining exposure closed. on in an were Maybe of if redevelopment that in a give can series portfolio? them terms update, one pipeline I your are an in update us you I the couple the Maybe, us that, the give stores -- question, know already. you XX of that follow-up had four

Brian. is hey, Floris, this

on one particular, in think, the but with And locations. completed, or in with roughly Jim's of ahead the getting Navy, spaces earlier under the first year the next pleased our team's to ago, construction you these sorry, incredibly times, but quarter I from all X.X We're by will a And of we year that think portfolio, be are troubled and the getting two that expanding how that we this We has we retailers. points Five how quarter, TJX, completed Ulta, two back it Kohl's, Ross, in Philadelphia. progress all our tenants leading Kmart team that gotten rent I'm of either of kept outside took of were our at or another into of half bringing many we one Kmart retailers speaks spaces ahead the we're the And announced Old about of that Below, backfilling Kmart. some made are this, of today. completed

expecting in rent XXXX. us of the come to So half expect continue these. to back announce We're back online to

entitled But progress our really pleased getting entire leasing, projects and because going be it's of execute. the done, ones the the incredibly of to we're our early half terms we’ll with Some that of being rent operations back team, and starting but able at this in XXXX to our online convinced, not on start has team has in already rents these come back just here and is see 'XX it's to 'XX, XXXX. early team redevelopment the end

great doing is it team the a we're doing So -- job.

you coastal give -- on you exposure maybe us an give well? Can lending update have as the

effectively of got and you perspective. be with of terms we lease our the Coastal for lot already in owned, that Right that certainly, on that what’s Brooksville, in last dialogue now, have pipeline from see still control Hamilton location that lease going spoken term our control we've will in and they It’s redevelopment but them options, Yes. it. forward, they they on a for now. can a going expiring, that the one space in

really Sears-Kmart market And the of Yeah, that minimize here you at what that's have to Way. as the a thing very get exposure early to going forward. into is I think you’ll important XXXX, below rent Coastal part

you. Thank

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

it quick cheap the on taking of and to you've more fair share one backseat is buybacks, other year Just this stock that capital based a to forms starting that level. appreciation the one for Jim, think price more use? target at this mentioned acquisitions, you maybe is to assume me. But

a about of think is always price. But in we we proud I'm No, do we as I we over think and with? is, the marginal stock. balance, And with these of Yes, what's consider are not investments a point. balanced. we're trying market-timers ago. we're most point the balance that with about to some clustering at strengthen Greg, on asset repurchase that mean, still And deploying. I getting this years we're a line view undervalued to we've I so the which on I to sheet, that, at also buybacks, objectives, are We're have, talked what proceeds important two that what this is funding Greg are don't of acquisitions, we with way the think seeing common so. the long-term think stock think where our the of business, we We're right factors generated these basis, from be continuing being those about always really benefit striking because of think very we as sales it's approached

Thank you.

end of our the have question-and-answer We session. reached

Ms. to any floor like concluding I'd for comments. So over Slater pass to back additional the

Thanks everyone. [indiscernible] We you many a look weeks. forward of at to few in seeing

Ladies disconnect thank today's you your participation. time. your you And lines we may and does teleconference. at conclude this for Again, gentlemen, this