Brixmor Property (BRX) 11 Feb 202019 Q4 Earnings call transcript

Greetings, and welcome to Brixmor Property Group Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note, this conference call is being recorded.

I would now like to turn the conference over to your host, Stacy Slater. Thank you.

You may begin.

Operator. you, Thank all you Brixmor quarter fourth And for call. conference thank joining and are the for Angela Chief President and as Chief on Finnegan, Vice me available and Vice Horgan, 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 are Before contain non-GAAP that on let measures we remind Further some of may are results that obligation Investor me update release comments our described of supplemental in and use reconciliations financial risks and are forward-looking regarding our earnings assumptions and and our statements any to inherent on statements. SEC to differ disclosure may measures. to available we assume and forward-looking information based our materially. these Also, these results will of our the as of certain measures no today refer to filings, begin, subject the website. future GAAP We portion actual in certain Relations uncertainties today

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

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

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

Thank our thank you, call. And Stacy. joining Good you for morning, everyone.

full This Brixmor team has again the quarter year. delivered for the for and both

last we began by sector NOI delivering that acceleration quarter full XXXX the brought and the year to of Importantly, X.X%, leading same-store of growth X.X%.

struggle platforms our a to to of for into beyond, us execution begin period growth. continued momentum of some XXXX when the balance plan deliver importantly, significant generates More time and may

position all show Allow results dig the me fronts. outperform continue and the to to we us In results are to into delivering how. you now short, on

million of renewal and those achieved year. commence that new XX quarter over During We we continuing an feet spreads occupancy several million blistering pace signed next small X.X importantly the cash have drove on new signed the shop XX an leases XX.X%. of leases, additional will We for our and the over and ABR ABR record the commenced to quarters. in of million quarter new additional XX% of

Navy I would Burlington, our and to and for retailers relevant both our years we rolling key Old LA continued demonstrating today. with XX% are share leases We several HomeGoods, increasing below the are Ulta ALDI, are nearly strong the older is note over next that Fitness, signing Beauty, where who well like lease located market and tenants thriving our demand with anchor leases also signed growing relevant consumer. today's centers,

We that leverage the This noted, over average one XXX demand million which incremental continue an robust which our activity our also many for pipeline, of year, return of in at investments year-end reduce to as XX% our of XX%. is of tenancy, you and to drive leasing preleased down to lowest over at reinvestment sector. have watch-list the continue represents

in our the our centers, value shop XXXX the XXX quarter, XXX also of of of over another deliveries return. delivered at of momentum improving and year-to-date appearance investment, our importantly million, a bringing deliveries incremental created XX incremental projects During we leasing. million our small also while the above Those XX% to over million

but future centers. before, is accretive said growth intrinsic also of multiplier, increasing I've our not driving and value returns, As our only reinvestment the program a value

timeframe we creation. at returns. incremental now and and value X.X XXX that pause leading is million terms of in at over much, are up sector lower underway equivalent much value the observe And me of of much that creating development in to risk ground Allow billion the shorter

and market, realize way are or have where this shopping upside centers in in above rents existing where That you and intrinsic that is to best can ROI value. value multiplier you environment at and where simply Simply does exist or have not growth in developing in put, rents up. you're the deliver reinvesting value both double-digit ground

We centers, that power solar also and efficient maintenance are operational lighting, low savings. through landscaping LED expense environmentally improvements at they continue implementing double-digit attractive enhancements generation, our not drive responsible, shopping to only returns generate

You commence and nearly of to of I our see to some can points assets. which will improve property continue continue that as the the impact basis initiatives of in year. see same in XX the margin our expect sign these for margins, leases, we improves we to operations operating enhancements XX%

priced tertiary From a to attractively during XXX capital additional while the little very liquidity a standpoint, our recycling we quarter, some dispositions activity over bringing million. closed markets, XX finding of in million an year-to-date

year. We million the of XX also approximately closed during acquisitions on

here. in prior discussed fit And to in in in of Stay being I'm our we the balance. that strengths. tuned pivoted driving quarters, by encouraged more leveraging our XXXX pipeline we with platform through thesis growth As opportunities have have our ROI acquisition

ample and plans plan, In several time, next deliver $X.X sheet fund the virtually provides to years. together us cash to credit and the dividends facility of our drawn debt short, That free have nothing on capacity flexibility no team access XXXX. billion and on until balance Brixmor for our business and perspective, a as our our of maturities continues we balanced promised. under From flow year-end with as

review outlook. providing the over before turn guidance more a to commentary results additional for Angela? detailed some our and on call to of like Angela I'd our

Jim Thanks, good morning. and

growth XXXX expectations the creation. I'm at delivered we we conclusion value to year, with shared pleased to on and long-term a and you continue the fully set to of report the for the beginning as successful stage

quarter was and in litigation legal non-routine fourth excluding including FFO other comparability, share impact expenses. $X.XX items per that $X.XX or per share the

was share $X.XX year, excluding share $X.XX items impact per FFO per For that comparability. the a or full

rent rent points in in property the accelerated significant fourth X.X% the to growth to XXX third base and activity Same was basis further NOI fourth as contribution due commencement from the quarter quarters.

and property our and as team specialty ancillary for management our across line opportunities team proactive through work also drive across items, OpEx positive deployment, our all leasing contributions expand to improvement on continued portfolio. margin We generation experienced CapEx management to income other continued

points property high end growth X.X%, was in previous same XX range. the basis NOI On guidance a of year full of our excess basis,

growth Our drag basis points sector leading bankruptcy. net Sears/Kmart approximately of year-over-year with associated achieved was XX despite the

have quarter, repositioning all of January, the As the had And XX of of to the already time delivered taken Sears/Kmart projects filing. of these we the fourth the back end two locations first during we the at related spaces. anchor we

locations, or on transform our at leases executed team asset have to to the our market the portfolio. ability of remaining we all of these within in and addition, boxes, the significant strength base value currently LOI on for our are tenant and of demand capitalize disruption create quickly our indicating In

property of We have NOI FFO share, initiated guidance growth XXXX to expectations X.X%. which to X% reflects $X.XX same per $X.XX

harvest confidence balanced sector have of to We business our assets plan in ability as is great value NOI at market our to post again delivers. our same in below well portfolio our property embedded top end the the growth, located

we a XXXX. quarter These driver $XX our between growth XXXX, visibility same have points, year, yet we pipeline. to XXX move occupancy us dates of we have rent. continued property the of leased and but And XXXX, our forward refill we commencement in $XX expected, had profile. as the our signed, rent, growth with again, team delivered on into efforts in but providing the commence significant our million But we significant our and contractually yet were leasing reported call On of build not X.X% commence growth into that spread fourth hit not obligated, leases approximately million a the last basis fact of despite of NOI representing

last the NOI of XXXX tenancy As flow. bad range remarks, progress historical includes property years the and expense Jim improving experience. to of we said, our of highlighted a in made over debt credit his quality our several our with cash significant points XXX in consistent the basis same assumption XX have our That

property specific This the store or for assumption is recently portfolio during unidentified closures and for experience unanticipated announced assumptions closures, we anticipated in may level year. assumption income addition level a or to

We environment of believe our cognizant and have forecasts. the addressed associated retail risks that the in we are appropriately

an move property the would As growth in NOI inherently expect as variability is volatile through quarterly always, metric. you same some our results we And we we remind do year. that

we on deceleration below rental market rent non-cash calls, rent we from GAAP or XXX discussed income. of FAS expect FFO, straight-line and prior terms as continued In have including adjustments, many do

these are XXXX. in they While metrics, share per items to expected flow have cash growth no AFFO $X.XX on or other detract $X.XX NAREIT FFO to impact from

In addition, assume or please does any not other remember legal that litigation non-routine our expenses. guidance

Brixmor, XXXX Committee ongoing Audit individual. legal are for behind company obligated proceedings Investigation related to to certain does all expenses the proceedings remain the against the related While

Fitch made years from the in successful with four Moody's, and we the our transformation. overall Turning balance rewarded significant positive to flexibility, we received recognizing our outlook we over towards from positive sheet balance have of were financial and a last our the portfolio execution our follows sheet improvements which outlook stewardship, early XXXX, the in XXXX financial

the programs, reinstated our on we a wide range to condition. retain repurchase that share and equity quarter, equity capitalize of ATM ensuring During both also our ability we market

back the with And final call to Jim that, turn some remarks. I'll for

Angela. Thanks

our I conservative believe we inevitable It's part outlook Whenever just a for appropriately we recurring as sector. discussed, of and look guidance forward, XXXX. healthy, we've in business. our disruption always ongoing the expect and And in retail Angela been

as standpoint, be from or might these well on know year of this make question inevitable greater money that whether you next, most than you value, questions. risk what was think and consider I are Those I With have will an focused during critical create you said, the whether pace to last. as that or can is as of are consider disruption a the many durability investor But what periods disruption. important of retail it be

environment outperform. Brixmor begun that but positioned to not to perform, excited in this I'm continue already well significantly only reveal we've is, to how

are the market shopping that leading well growing tenants sector our Given leasing and today, volumes demand of demonstrated new for openings. our store centers actually by proven share older by located as

time and construction readapt, prototype. of deliver operation these leasing to the that to tenants trust have and on Our teams key earned

in-place shopping in centers not but on only and accretively growth drive and Our to rents below us rollover, ROI. market growth reinvest drive allow our

quality credit is tenants, is signed pipeline deliver million are ABR but of finally, for a expectations overall incredible that in watch-list top diversity one $XX will and our of every grateful that and our my commenced continue team next to bank the in not of to strength continue him exceed ABR sector, the the of quarters, several the beyond Our and over day. as the who lowest the percent a

company Our performance a as best lies ahead.

With we’ll questions. call the turn that over operator for

first question comes Instructions] proceed McElroy Thank question. Citigroup. from Christy [Operator your you. Please with Our with

but trends other XXXX. Wondering view as in us and regard for deals could do a the in completed you're pricing in of your sense more for the asset and in both also to if fourth what Just seeing as transaction opportunities are market give quarter, acquisition? the dispositions look as your you in to general in you of terms where sales well sort

Mark portfolio maybe in let price start find as really even liquidity drive you leverage our And as Yes, to continue can attractive term my to I tertiary what me we chip encouraged I'm an to as and standpoint, pleased remarks, by in our really platform we're into from to alluded mean, markets. our to I we're still acquisition in. first ROI. seeing longer markets consolidate opportunities

a are really on but centers that our tell the account to not team, to national we operate simply the or have opportunity we're find relying return team, rents that operations coverage return identify not not that and current a are. we're We're to the team, what over those our construction core, assets drive and we in, to we good not us markets have to ability shopping redevelopment whether that earn and growth where But trying own assets third-party assess where take currently only an team time. in are trying

this I that's only we're area like certainly an where not platforms pretty one, distinct ours, think advantage have a environment. the And in

similar what acquisitions the meeting fit our this that past portfolio. of some us with So to you expect really to Plymouth make do context saw year with us

chasing there going we're stand tenancy, there deals, for ability significantly It really I upgrade is think value. some is where us to create to competitive, and have but out the capitals opportunities the apart to

want to So Mark, know if you I anything. add don't

markets agree, from retail open what's Well I mall seeing the in what occurring say today for its is the the on we're business and benefiting and market I the over overall whole healthy is space. market that that would Jim and air liquid is very the in what

and transfer So sales. move of cost tenants seeking those retail are to ability given their to out savings and to malls the open

seeing more looked have years. couple also of traditionally following malls that's today in open capital through we the interest retail at that than of is Some regional over last air

platform only today, redevelopment ops not advantage to As can the we're benefit we team, Jim said, assets really is of see but looking platform take our have the out and we ability value. our it there where our team drive at to that the leasing team, really the

the in how the growth just next capital allocation, but over given for Angela, then about leverage And cash trajectory should of context the remarks Okay. thinking be the the also projection maybe in XXXX, we EBITDA year? just around

execute the Yes, to we're acknowledging we mark as we're far very that leverage on trend to portfolio number our portfolio times is six plan. the that debt-to-EBITDA going to continuing work below to the - down committed to market, and is level range redevelopment number how that obviously towards going to given continually market the

going stabilized the redevelopment you're not quarterly going with the speak pace those. much how really number. and towards yet spend delivered and EBITDA fully to some that's as see in to continue the that are over getting redevelopment they deliver, producing down have But to to times the projects there, think now Between metrics work you're I see or course those six XXXX, capital we going demonstrated, of in metric of that associated the volatility as to we and projects

key returns are low points than basis higher several much that's million us returns, allows those which think that in, is incremental as showing to of if less number. EBITDA delivery underway. XXX which of will you at incremental here the the pre-leased, an And have what as Much that of we're we going that's is from to gross it and returns, drive driver redevelopment really kick attractive turbo really it's be return very we risk in $XXX the debt-to-EBITDA

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

my question on is I guess leashing spreads.

down past curious better what rate starting strong leasing on had advantage you're spreads? of of spreads to than take rents. leasing to have for I average now quarters. expected just guys But kind wonder You is trend on think that the I performance am XX run you is lower the the the that

of two for that of And them us. both drivers are of They're parts question. kind

rolling have and range, The new the the XX% is, have alluded three over first part what XX%, are I remarks, higher four those in than in rent are. to in Anchors deals next the where to even that average do as and we my Anchor we rolling years, signing place to $X XX%, rents the we're

continues harvest, rollover. the continue us So as years those I rents market those roll, we several that have excited a that it's there's would our centers remains for is and center, as equally focused to and to but about lot and element - improve. we rate I'm That to harvest, in to say another improve

many a touching factored an into not use talked our replace where the about As a fitness see incremental we've shop specialty that's times, you old rent tired with Craig you returns space. grocer, in a we're retailer, a Kmart appreciable great those small value pickup as maybe not

answer sustainable durable short the and it's a So plan. is,

years got that not outperformance, ROI So a portfolio us on many don't drive the rents on market, certainly or doing. as above going growth levers on been are that think which pull, at of I if you're gives you that we've view have sitting same to to you're that's

that. this on we're this we've same-store in some Brian, risks be most environment terms even one. And great will excited in to the got not year strength great a is So, show taking about turmoil, honestly, to chart what platform top starting the it, two, deliver NOI, relative the I I'm visibility and with of of of at think we're in

it a hit has of you The done point think Jim's great years in the have I mark-to-market the have job on visibility opportunity we head. is we the out. advantage and team in several taking portfolio to Jim the

we're we're So continue in as going rents. as in taking space base continue make backfill we to bring Anchors our to that we to see investments that the continue to better back, upside to

of know in are then you And the renegotiated? do rents been already percent expiring have what that 'XX

year we're But those beginning a lot and a of 'XX. around had Brian. half year, usually of those expires Anchors the at I'd this lot typically the that of in Craig, This the of our that's question, been expirations addressing had at half coming in terms are up addressed throughout the we're that in year, of our expirations the Many if we're this about of those of your and of time is point addressed. year. have say

Our next from proceed Thomas Please question question. comes your with with KeyBanc Todd Markets. Capital

expect further in leverage talk on just term, quarter. for you follow-up first could the you you redevelopment to also? it more base slightly the leverage, might the year-end did the as rise question see quick case where Just at spend. Do be on near a bring leverage in Maybe about increase

we to a On quarter particular basis, continue that is remember an quarter. go a for that trend metric expect particular number it annualized to down. In

to you the So, but signed not there of quarter importantly, impacted, of that that's lot we're also number. timing continue a going see and remember transactions got in you've down, rent in trend yet importantly, to have that can

So in as we and delivering it growth tremendous move forward. that us gives visibility EBITDA

that embedded trying sounded you guidance. accounts XXXX. a debt that general ground provision you reserve to property Angela, for the if which bit the about just that also run the the basis it there like addition of there? and there to clarify further, I'm you doubtful was you through sort understand as more your another is well the then up in mentioned, to can just assumption mechanics you of comments can in you've of level, in And that XXX budgeting points, assumption I XX completed And for that think talked bad

absolutely. Sure,

provided years. guidance been was it year, points, and XXXX a XX last basis consistent points. So, this XXXX points about we've bad level typically per assume was debt We the about XXX way over several basis - expense perspective with from has basis to the XX that XX

been And So good of feels right kind a that range. going in level we've the that like always of middle forward.

that's disruption recognized distress debt not occur road. doesn't may already to might in been may statement Bad really collectible, really captures it down expense revenue the or income be future pertain but that the that or

that, points mentioned anticipated we that So budgeting we but we expect assumption or as what of account XXX was known to closures property-by-property I the which something is to move or in basis a I during process, to prepared things bad A.C. obviously obviously, includes have year, assumption XX store addition an dressbarn our outs in for do my around base debt like course Moore. the remarks any and like

But done credit really in after our Brian of well. might the at addition to and budgeting we're and for be as kind that XXXX of Jim space-by-space watch-list event, the anybody that, sit our look I unexpected course process, and probability in down with assumptions and wait

us property XXXX. of so guide X% assumptions those for up NOI our to the roll into X.X% And all which same to gets

we in XXXX? else as or in we income then think they or into lines of quarters, prior guess below have is or there anything worth tenant bounced the noting bit the any as recoveries around rent, ancillary, any move a other and volatility, about And I base headwinds, some are there

can inherently of right? first we to of next. hurts that I are just these excess thing you quarter, remarks couple in quarterly think Angela you They help one on hundred basis, in all as volatile, are a her noted the metrics recoveries the referred is grand

occupancies, range I'm what given that But very we've in trend we also year, people and overall have at as spend. trying operations, see perspective, to to And importantly, the feel for what look margins our improve we trends our you. become guidance continue honestly with on begin then is drive confident from about we highlight to a and we NOI efficient in more folks focus the

efficient from to ESG landscaping, as Importantly, perspective our more et water, invest relates an in centers making electricity, cetera. it

frankly are already I'm continue And, board things they're showing across that how that performance. individually, are those And pleased what embraced and really the the numbers. team better things challenge. how small in with but - to So, real better the is has executing drive all

quarter on and remarks, in recoveries maybe sort why and her Angela NOI of basis, be one up will quarterly volatile maybe Todd, down slightly quarter-to-quarter. think But, prefaced - inevitably a I that's

from proceed comes question next Piper Alexander Please with with Sandler. your Goldfarb Our question.

Just two from questions us.

on this have When shop. whether a of good could rents and obviously see XX% obviously where this next we job to question you towards XX% great you But now XX%. is you maybe think achievable what build shop of that it's is get do to have of we hear XX%, think occupied First to starting small coming the guys that something XX% because that, you or out this contract right better or just or vers get year churn sort a that is is of sort small you? around

calls. Well talked Alex, as a about, about talked I've as great question it's I've prior and on

You these occupancy reinvestment look in trend dragged is they're to of in couple our XXX or XX%. points, that will doing more we we're and that the years And pipeline. to trend will if actively continue remember, three so, centers. next years, by have basis overall part what see at of not we what But actually reinvesting the if think closer over shopping by to XXX statistics, you

XX to XX delivering is which of months out. Some

simple deliver So of that get do as everything And accelerate. continue that that small target we doing that is we're then responsibly. let's making sure do that, it's expect What XX%. to again, not to else growth we growth as mean realize we shop by to I

trying get tenants, growers, Let's be versus the manage to are community, a to statistic. particular going for relevant the bringing who to to through XX% ones best the the

tank you're to you some going to I'm basis frankly, move the are down in going excited. any given see to have continue shops. we still deliver climb. that very will on So where we to unlevered we if growth but be And metric see an continue and up it the and gas in that on quarter, small

of versus we NOI just FFO is keeps FFO that muted NOI you very from growth part second the is is obviously strong just spoke IPO then that thing reposition. is, Jim, FAS? And if the is legacy look the the shop. at up But about small your portfolio other the question coming

Yes.

So where of Angela, burns see of do the $X.XX to we're upper you end, as or this off? FAS we towards burn going the drag of is more several have the the are getting sort - end off years at

point One that FAS just talking on raise Alex want adjustment. I this make we're a is about item, the to it, you XXX non-cash right Angela? since

look if some so, do the to on IPL is this in from disclosure year. we there legacy deceleration have XX-K regular about $X.XXX And our you really FAS and as which well is the but income $X.XX item XXX a

to So $X.XX all or several you over else of being equal, deceleration. FAS years, next years, continue expect that XXX $X.XXX four five we to should the have

The how into this tenants how as of and that gap deceleration build had occupancy the pretty of extensively a prior in expectations of as in between many XXXX impact move on commencement. or the wide potentially had the we of straight-line. fact result to, year is more outperformed rent to last I talked significant straight-line space leased call because were and impact XXXX the grown about our of possession

$X.XXX see straight-line as would most into deceleration you and that $X.XX term But straight have we'll created a of we FAS XXXX. sort decelerate XXX in I impact the an basis to of XXXX And at that - expect between we the of on that that we XXXX expect deceleration possession begin longer lining to outside move XXXX. again,

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

on minimize transaction transaction or Jim, value balance we transaction that NOI to the if curious and any guidance to to this funding on you be would market. I dispositions appreciated? going more on primarily take to dilution this and help a can But commentary rates appreciate Brixmor expected be to earlier we're know based or acquisition plans volumes on approach the is dispositions contribution balanced on match provide cap And acquisitions year.

transaction we provide levels Well, don't specific of guidance.

opportunistic, an investment be that the drive are And was and opportunities. going where bar strengths, our the think I for I is owner, assets always to alluding have platforms very as you that disciplined can real our existing we're to finding opportunity identifying us, before performance. to apply to we as markets our in about appreciate

necessity by opportunistic. will we So be

we be hit And been be been we've specific been. we've got Importantly, how the time a also the targets, strength but assets activity, to we demonstrated just we've sheet selling liquidity opportunistic. greatest. our rather the disposition We've not one opportunistic, balance through have valuations to trying at to have where disciplined are

And you when and recaptured X.X million $XXX submit that at over to probably I being proceeds look by time additional billion well of the opportunistic. we you that over patient we've sold

the we the of So exit. as that good news to markets we most is, strong, we've the look exited forward, balance sheet want

opportunistic. So just I'm to more being shift pipeline today. now by bit particularly a we can we And encouraged - what have in the

what was environment alluding by we’ll as even it. I'm encouraged in and we're Mark shopping centers. seeing there no is But shortage that of to, chasing with, particularly promise liquidity, can't any execute I on of backdrop

where to shopping I be on centers to think, additional going ability our we value. those focus the is have

Great, thanks.

You bet.

leasing well. a move same-store bit addressing with healthy outs to other Angela as wanted Angela, just also growth growth been Obviously about effective fairly same-store and from tenant development bankruptcies to over the last has the a pipeline. boost couple significant benefit then talk And little quarters. NOI a There's

expectation NOI curious growth long-term? So more X% ultimately that over same-store fair reasonable what means long-term is for the I'm

points term for XXX really XX basis the if portfolio. Yes strong the we longer as I our go benefit about redevelopment to activity. core we It expectations of back from Day growth I at held end XXXX of you the included Investor and talked certainly to think mean, an ongoing

and levels. XXXX put up And but progress in so growth we I of the and plan, execution levels put and continued that's continued that up think should pipeline these certainly redevelopment the around based XXXX, in on on the

the five over X% years so next then And visible?

portfolio We're give of guidance plan is giving this and you're and we for but in not saw what in this seeing, for XXXX and anytime after XXXX feel XXXX. seeing that, guidance do the what or Obviously what can deliver. we you XXXX, what representative platform you're like

And, what the and you in growth embedded important disruption. growth that control signed we're ongoing delivering you what's the underway. if we against growth tenant much is today. that already that think is with also and bank, backdrop of is reinvestment know, opportunity recognize own of that in that's and will, And to are that I leases to And respect

think I So, on speaks we're really what better have is grow how I going we to overall visibility platforms in going it to many think forward.

really rents we It's on on that hope with leasing and what not the in that The were that were have improvements it's in or of it be what up joined premise based to really operations, honestly, excited better getting to better a it's to that, Day. as much so our almost coupled became a at centers, our markets our demand when and activities in inflate. tenant continue the four generating, as Investor based shopping now centers And ago place. years set well we certain balance me what will in we

is, this we really have disruption we're and will if to prouder delivered this about then what's which and interesting make know how And we've happen. what's with in and environment, disruption, the us environment spot tenant be you going no cooking promises people it's and in tenant that big I with of reinvest I about accelerating investor there's where in But pace gas. environment assets. days We've oftentimes they can couldn't executed of

at got opportunity huge in Kmart We've had prior remember boxes. into this Kmart when Angela we are on delivered we or a we now, for on we XX all bankruptcy. recaptured and us that just alluded XX and to none least that joined, but turned the calls,

that's think I occur, a that yes it. really to embedded the disruptions we're that I'm the over asset, but outperform. only going all And, to team inevitable in other not convinced as opportunity So, speaks

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

going XXXX? Hi Angela, back benefit comparison, for comments redevelopment activity? as repositioning can have much work - to that the here last as how include tell and does did redevelopment us What's anchor exactly XXXX that in you well your in

scale projects Yes larger on just I redevelopment of redevelopment look at a if their we mean, own. sort

just we I back to Investor annualized in last basis said kind year, consistent and XXX and about talked go question, it delivery to of million. talked to we were level Day, we was million the $XXX basis XX the $XXX at being of throughout spend As on that at point as course impact response what I a the an of about the to which

be As Sears/Kmart we're originally, bit all think communicated XXXX XXXX. we incorporating impact it'd associated really, the with thought moved range, I in we the into drag because the below that I into low end that a of of little

basis points in on it's redevelopment a the think X.X% property projects say we fair XXXX. that to again I scale the - larger probably growth impact XX So to posted NOI same had XX redevelopment

to As basis look we XX guidance think property numbers. end to the growth so the fair NOI that say at forward embedded the points to XX I it's is to within that range, X% XXXX, within X.X% call it X.X% the X% contribution redevelopment to of same contribution higher

And top repositioning or of on is anchor included? that that is

in the included repositioning projects anchor just no larger just not Yes, are quoted. scale numbers I is those redevelopment the

with how this, here. And ramp just pipeline sticking the for of do we you spend just this million will over it $XXX confirm, should again is year? think comfortable it you $XXX the $XXX you sounds it about thinking further to it think or be where like million level to be is million And

last level proud highlighted right, of and that's what have. opportunities around repositioning. we is, million generally be we $XXX should that in that $XXX the that's quarters just $XXX think given And - have delivered active, spent of I'm what we may we've the million I pre-leased perhaps higher redevelopment year And anchor it's - in see that million. several to towards of expect you underway we and end

around to grown million from bit million. $XXX little pipeline actually has $XXX Our a

to deliver million on year of continue our and the hard the what's work to the we time $XXX million deliveries same we’ll expect in this have we that to while in As of to be pipeline do active at deliveries investment. $XXX additions,

think exceptionally you So, not about time. was an and of long it what period

not this. shorter like part of benefit, these opportunities, them, and we're steady hey having really relatively duration need the rate. we've to and hey executed pipeline reinvestment a projects We a don't at identify if lease wait, we're only of or you ramping run think that's now that I telling began so We in type will not We're up. you delivering pretty

the So of next this follows. and that year us kind a and at frankly expect to year be year similar level

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

to Just repositioning an much to add through XXXX would follow-up on Jeremy's anchor question. How your same-store and NOI XXXX guidance?

We repositioning don't something you box. about think really that's just the it's anchor provide specifics impacting generally on when that anchor the because

we standpoint significant I from show supplement in we like what a anchor though, our of show actually we're What is those what through leasing. all doing about it's leasing repositioning. So

my fundamental we our more And of these back part work can putting and see point is point. we're you to capital But accretively growth. release core as that's my them. So fundamental boxes get

the at attractive first first? pipeline, that working the for look batch you mix because as assets is years. in presumably when monies, you the of development lower easier hanging, go on you're the the shadow future as to those fruit going they be your And Are

you that think You leases to of things really some intuitively, govern pipeline in called opportunities that when our pesky these in best active even but and place can the aren't very got get opportunity yet. our you've

I'd about for two. incremental could uses year don't talk next our us have of that of nice to a But We types increase and the sites. complimentary these to continue do don't So that be us lot about really some generating or density we expect to expect on returns. talk

retail, these and of how responsible be work when realize properties. of some to plenty have transformation even the core which and creation. from in to terms excited our the in level value actually of best got pipeline we're us capital we highest real But more do about about and news asset the - expect opportunities is good is putting in larger in that use And it's to we the the we've some competency,

in you it's it that see which $XX.X million XXXX, you if a expenses? increasing. in third things you like differentiate it upgrades like been and what the line lighting up XXXX footnote have in you to $XX it and is the called How now call almost Do its other other CapEx sounds And - a value one. putting can in includes million compared things at if value same-store LED CapEx, about look item versus I enhancing squeeze like enhancing do

of remember activities our guess, I the same-store a pool. taking back in big all step

or represents XX% pool of same-store XX% our Our properties.

distinction the whether So is between all in no the it core pool. expense really a expense same-store same-store not versus or a determination enhancing value has it's

So that solar of projects, you like remarks. out up some smaller just scale does to lighting, things that the on called in Jim in LED that line, mentioned, point, but show what includes clarify his

of that other across beautification that major that what we transactions, assets Other the driving projects, you're enhancing spend leasing capital balance improvement and line with aren't amount. justified projects, dollar rate assets but returns in the or of really specific keyed seeing are center. Projects are value additional generally the by but small off think are on are our

Our with with Mueller next your Mike question JPMorgan. comes Please from proceed question.

couple questions. Hi, of

you're side expectations I what XX.X% do for cap rate can where and seeing the And guess guidance you rough then there. embedded ranges side? year-end First, occupancy you for the about by see trending what’s talk disposition acquisition on

through occupancy Obviously, thing and a would dressbarn we going do Yes see occupancy higher occupancy leased as on the some think our basis. include continue in to that that to you're the going space. at is our to year. move see I still One numbers I fluctuations I trend you're mean, note quarter-to-quarter build XX/XX

the QX see some and some roll year to that associated of going those in known early You're off with volatility events. in

to expect of higher based And build the that on you XXX basis numbers but commenced rent. over million continue of not points But spread $XX that both course yet occupancy will the do between leased move signed, see that we and year.

are range equation, probably in in cap that to really then along. Mike about likely the XXX asset ROI. driven And - basis of think a is we that. where only about to sales, going to do points inside likely But the there part rates, it's your we on cap see that been question just right. of of to X% the growth I terms on we've reporting X% in side all to continue It's XXX acquisition And what by maybe be always going be rates is

really tenants terms how a in very do that lot and that and we take to of benefit. might we return be rate really market demand their it, of have which from what tenant in place of on we inflation, on not with Again, of What’s known allocating but do they the capital, a rather our and important have kind business ability grow on kind a is clear initial growth. visibility betting view

opportunities parcels bring that to drive understand, our have of accretively. there you add as large We scale a - if toolbox platform our kind as to well to whole to to reposition, will ROI

money this where really think I you That's make in environment.

idea are. modeling really to side. the so, from it And we're because just highlight cap But I of rates need sort appreciate the relates where to on to want investment as a cap blinders that I rates focused with of an perspective, have not

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

taking for guys. question, good morning my Thanks

number two, not and would into be when you as potentially will as Davis in Mira pool mixed Mall see not the bigger on in your be - your fact - I XXXrd of same-store I on guess or because use. them there and Mesa update some in in pipeline, Just Mesa, you're question a and entitlement use doing them would I of projects, Davis, that process a adding at question Arborland, that mixed will the you're use, same-store particular, those first see look same-store the Street, your your new NOI future I Mira thus boost are development couple included What's growth? fall get

same-store included what your pool reinvestment Well, be in we take comprehensive include should and a of pool. that in kind we view of

you’ve projects, these our the sites. that make on these to projects, think we we're As sure not just to for frankly, really where mentioned about uses are additional that working across bring on we you few of board, all the hard entitlements can but

we to uses all going capital sticking what deliver retain to sites. is the with can our Because leveraging words, our perhaps others our of though in create execution value. for careful site. in And value co-investing so most of be those land us, of simple that those development in about very core to where - quote entitlements then getting happens some on reflected profit honestly is competency, the other you control be some additional in gets your that almost that What to unquote we're

the our the But I we we're when core I sticking mean, should and retail Ann by think our and company knitting great smart has, have getting sites really I value retail and first. Davis to Mall down in expect this which where that Arbor, of value competency, to for us will to you Dallas. by ability beyond most like shareholders At places there UC are XXXrd, be we But generate stick is to additional entitlements lots in think retail. our create the

think on partner And that knitting, capital so to that. institutional JV operating that thanks, things? imply find you Jim for with does for But about to stick or you're to an in that? those to to your how with you should Are were that you we going you partner if looking

limited type service be. market to of mean, think that are additional student real competition senior to housing, uses hotels. we multifamily, are value whatever need it's there properties the might majority contribute Best-in-class and stake lot don't a platform of the our rate, the amongst shareholders. whether position partners we're I deliver that think, to And capital and our product a have to incremental I to and I best-in-class those in housing,

question. with Our from Evercore. your proceed Samir Khanal comes Please question with next

is confidence disruption enough with sort When you get growth sort side, I that about time. million guess year? tenant the no getting growth, look X% XX call. just like range potential similar that pretty that be I sort back to commence at when of same-store credit narrow year, on more we of same-store we've going that X.X% on of NOI over the same last mean with reserves that all gives you that to got look will talked positive visibility using disruptions to loss to of sort year a potentially did what versus last this I I the seems as

going answer four kind that eight we think the a We're assess I'll you reserve, steps not to did as same to take, her happen job. let the really of quarter? Angela I that using for over next detailed nice we out what's laying

this the Yes XX what this relative mean, balance XXX reserve, basis lot a loss credit the of to to points, And on just portfolio in I has right based remarks. environment, especially with Jim's portfolio. level. And in we've have be even lot we years, over to operating across and few we outstanding the has history reiterate done to AR been which continued that the confidence, the a last of have

may In made to us the the of his that made many But numbers of of XX to to we've because between on prepared that's of Moore basis points keep outlook. X.X% in reflected tenancy. in represents the that, so an in out the addressed of what allow improvements kind around the comments forecast all dressbarn addition closures and A.C. store known basically already the we've that number the quality out watch-list NOI X% band, and improvements are and our that that in already we to and happen have

we disruption in portfolio we be we're addition impact that year, of industry what everything think will the based of waited closures piece we're in bankruptcy the this probability any And think that, occur everything then hearing other over to the tenants, directly from will hearing activity, for really unanticipated might happen reflects our participants, from on the and other or kind what on particular. third store course

environment of that, But of would that of and the underlined, we current all I really continue possibly accelerate. disruption tenant stress to stepping Jim's even comments as from expect sort back

that guidance same bucket or to so, year. closures activity X% embedded you point is was expect unanticipated the higher that related bankruptcy X.X% last store our at than And should in third to it

this everything up had also remember that ended of on about our into And comfortable were point a expectation, portfolio narrowness range. to we exceeding own confident still range going felt We we in feel execution. XXXX, we the XX and based but know the X.XX%, X.XX% basis and

from comes question St. next Haendel Our

question. Please Mizuho. with your with proceed Juste

you, story simpler, view your that or for evolve your past question seen talked about curious year first peers advantageous to but in So print last in fairly We've the preferences some on might some the all. and in if keep of we've know I JVs I'm two. the guess your JVs I some at cleaner, pricing

could a So that all play view capital role in on your I'm curious that changed? if your has at plans if

The only I that don't the than actually value time still through think it place. get ever would fee. the is that's better through of has joint to a moved market the And sale you venture a if

joint recycling you being sale, getting through we'd of point the on seeing. ventures would with at better look ventures, we as that quibble our course, in based a you're I capital through an we're the absolute then set up execution maybe do what love to joint but So, efficient

land is somewhat standpoint, student think did it. ventures in mention on might partner properties as would relates who we our how that roll capital. So operator, contribute majority of best-in-class be capital into the from it a to uses where you're bringing but a we allocation housing We that that's joint to our operating about joint the an value expect business. the might not venture, We our partner additional

necessity venture, it that on we're be about the the think another might implementing that places relates sometimes by a venture And the sheet. balance that from for ventures And strategy, that encumbrance picture, people clouds enter very our over joint reason, allocation asset. to what big I joint measured way do a you think your venture see into just going would standpoint as with clouds be don't a also that asset. always joint control to to strategies. but joint It capital And

then of more. not retail institutions being of perhaps if maybe able been couple you're seeing maybe follow-up curious guys sell centers? on as reduce shopping and sell evidence to there's some acquisitions, more some I'm exposure the these of months about a last to And chatter the wanting guess I that, to look

thinking yield, are rate underwriting, initial quickly? a there focused ramp growth up out on IRRs more lower And because the you may there about great could then how one some require day cap perhaps you're fairly but are or maybe assets some, that

about more ever you is certain return Nothing place investor. return total today. a always have than in We're what the

in that of is we going investment in opportunities focused we on I five take the three have. that return which you where what's years, return are where additional what market, versus rents you are believe visibility rolling, is have obviously, and best can the So where to terms importantly, where say timeframe, over the intermediate do

assume we're importantly, are And we total than that a period return we where going in. about the whole rates end cap higher at being investor, as think the always of

on So that if puts first as don't which up relates address know lighten but of the additional how we market investors on you focus, what part to can will, on to question you're in the if the are maybe Mark, that we're I going still return. you institutional seeing drive retail.

of into been to institutional mix air. I'd a certainly, extent out definitely and investors earlier mentioned investors as some it's I increased malls can that's seeing recycle interest the say they open some from

retail want just that deals exposure. market to reduce to investors seen institutional come they we've are While saying from who

And out ultimately, opportunity we to us great I'm do really folks drive like saying to for platform or a value. find a advantage saying for we're it's that's example us are having where and those assets geez, an great

there excited about assets are we're So out to buy. that

over question-and-answer I'd the session. like reached closing the comments. end the We've of Slater turn Stacy call now to to for

Thanks, today. joining us for everyone

concludes call. today's This

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