Brixmor Property (BRX) 8 May 202020 Q1 Earnings call transcript

Good day, and welcome to the Brixmor Property Group First Quarter 2020 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the call over to Stacy Slater. Please go ahead, ma'am.

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

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

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

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

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

grateful family of known to team our members report Thank that no quarter I'm tragically, call. families that lost joining each your has you, I the although, ones. team cases of Stacy for to and thanks you some all safe. have are trust and Brixmor of our first COVID-XX, you loved of and

you. importantly of that crisis throughout the virus remained who've healthcare the are our front-lines Thank Needless the essential we essential those the the those to tenants to to responders, we on supplies. have ensure to say, workers, first all to from beyond grateful open fighting

of seems our last memory. which the typically a first Given quarter, like this several discussion, would weeks, the distant events predominate

forward. the understand business context While first in performance to quarter's going of that's the case, our the it's important

As to reinvestments. been years, volumes the we continue and has last value-added the leasing four industry-leading spreads deliver case for and

of of significantly XX% overall renewal reserves We XX%, million at NOI growth taking reinvestment return incremental We delivered produced of our account. X.X new forma. and into average $XX average pro million of leases over an signed beating new projects and for or We X% at for X% leases. XX% same-store COVID-XX cash-on-cash spreads before

commence we ended this crisis. million importantly, most quarters, to of ABR, quarter execute commenced eight six other of new next a perhaps we $XX and pipeline well we not as to And LOIs to that as expect signed side significant with over the which leases we the to of but the expect as move upon

consistent how team cultural to outperformance be proactively and I responded importantly crisis with of into handle Simply put as that these response we a we came disruption. results impacts emerge. our as In comprehensive tenants. built ensure of March, ourselves view, for our couldn't is the this outlines position pandemic more the confidence our address proud we implemented platform immediately strategy of underscore the our to the early that

marked at additional also delivery. operations provided burden as signage expense who quickly reduce and and level, moved those and pickup service well for close. forced team sacrificing without not tenants signage for to operating to They XX% curtail non-essential implemented spaces remained tenants as reduce immediately also the leakage, levels aside the Our to but open for CAM hybrid by expenses only curbside essential property set

capital spend for in emerged costs work from this environment support our as into has additional more forecast their and of from maintenance the tenants XXXX businesses priority a timeframes to eye XXXX. overwhelmingly over crisis, at towards opening enhancing With for with this positive. from Reducing been liquidity and construction our our by a we tenants and on year The certain $XXX capital million. response redevelopment an reinvestment favorable teams extend value

spend our again, is investment pre-leased, underscores are our that projects And risk which pipeline. for conservatism the of low

our program, with and assistance team providing including accessing marketing implemented leasing shop working federal relief our program. tenants paid consultants small BrixAssist for teams our Our in state PPP and with the help SBA in collections programs, accessing

this shop many received half have over time, relief At small had tenants for and we our funding. those believe of that of non-essential applied

and and in dialogue to ensure each natural in soon reopened of disasters are with other are safe XX% efforts April available over forced of small of is practicable. over rent they applying hybrid been resources collected we've small close and that it have we've learned and tenants our shop they as collection these to XX% Because result. non-essential that Importantly, tenants, our rent, truly as all to from outstanding including working leasing and lessons teams, our of an our access shop of

tenants regional clauses These as to team been months the the elimination of deferral also leasing option forced as one include engaged in Our exchange those and restrictive concessions the negotiating very that non-essential exercises of to early with two of has leases. close, underlying for national rent concessions have well and valuable been renewals. use

clear, cost This deemed let in the accommodations that a crisis. in these strongly believe a point we to because who guiding as other not me and that key default we favorable in have principle these be a we tenants deals performance concessions been for addressed tenants our will as engage not Our is that to the is have only prior received would the from value that not has lost crisis. through We be proposing business. deferral, an discussions accelerant the only just with emerged rights leases. the environment our opportunity. unreasonable are It's those lacked this refusal lease are the of these smart exceeds But but

liquidity next to markets. without to the will teams fund ample the years cover than in have our a minute, successfully financing capital business have As more detail we access for that having our more Angela ensured in capital several

We of also measure our suspending the July dividend. extraordinary took

covered many that that in we primary our you As is of is that growth. to know, investors well a believe product dividend

lowest enjoy payout factors of fully the watch reinstate fully pipeline. and dividends. sector, of strong list, in us balance pre-leased a position these the lowest great one Each We of sheet tenant best reinvestment the in to unencumbered possible and geographic one diversification, put ratios a the relative the

recovery. any to the out, and dividend of a as crisis we industry with see tenant emerging in and dividend of position flexibility and the failure from capitalize importantly platform the more this plays However, reinstate addressing this elevated levels will not puts less the crisis across leverage on

the value through occurs sheet balance greatest destruction As decisions. unwise we've dislocations, seen in previous

suspending in crisis, So dividend given and we abundance caution the we responsible presented an tough uncertainties on of the decision quarter. balance of by believe made this the this but

enter. $XX perhaps hybrid look pandemic ABR essential determine how we tenants full of remained in core the and at way to how storm. platform open it's all same uses such of collectively is centers. forward, and strong, comes XX% the XX two is essential best those and And well grocery our of tendency is an have from rend this electronics. the this shopping of billion top as to like weather and our and XXX crafts XX% have raised crisis, to Looking hybrid from very liquidity tenants and drug positioned stores to XX have both and emerge Approximately weather our our during these XX% as excess tenants uses, April of of have paid the

tenants top of also XX than ABR more enjoy strong tenant X.X% single with our and no We X%. than diversification averaging our tenant representing less

been X% note ABR theaters, have X% We half at less service only at of geographic restaurant entertainment markets is are market ABR impacted of perspective, of is more from no When also and from diversified than in that exposure our representing disproportionately is ABR. you you'll disruption, a look risk from certain fitness. with our sectors uses most to X% that particularly our casual those only of full our this including than

As incredibly we basis providing We we and critical flexibility low our continue to this our crisis, cost that we're the that and showcase to going community believe believe centers make an will the to XX emerge benefit some respond the money, the still centers last years. the attractiveness see the and and occupancy we and ratios. also have of low necessity-based just last we over has us These of retail market have acceleration will note four resiliency from on years. you conditions further favored of crisis months, be that over four will that the next changing from reflect rent trends over and to how as

types in to last forward other fact, our of of these leasing can within in but being shifts In already portfolio, their essential includes obsolete consumer. pipeline, you composition mile fleeing product retailers new of the uses our which not only the favor see

our that a non-core we assets note a increased capturing stronger decision every and of how would as for a even points this share further to unencumbering to sheet, relative enhancing feature and that made who our balance low value disruption billion well are focus will thrive de-leveraging company basis. all leveraging that tenants risk long-term, I be discipline leases, to market this to with selling on maintaining on to reinvestment, we've $X.X enhance to Finally, from company

to portfolio will and business impacts reset basis many Brixmor support. As believe out COVID-XX track the with creation. and record the rent to for you drive tremendous quality, Thank your value platform, their and caused I play of plans, apart stand interest

Angela. over turn that the call with, to And I'll

I that before weeks important the profile the the Thanks, several looks do will of majority portfolio and for sheet serve have briefly than positioning. emphasize the a the strength where one first Jim Despite our balance of in platform. through we first results respect to reported we good to steps we're today discussing backdrop quarter, the macroeconomic quarter different and our our the liquidity night operating results last very taken last over and with morning. walk

comprehensive based watch reserves a NOI NAREIT results rent. light with respect additional review. first included straight uncollectable $X.XX are list to per rents, on in line property a quarter $X.X and both and FFO share million base nonessential the liquidity in certain was from contribution These and growth reserves $X.X XXX same deemed X%, was driven and respectively. COVID-XX point taken million These financial revenues by totaling reflect tenants of basis in

NAREIT this of intended every years Focused and plan share. would dramatically per business our period several strengthen Absent to X.X% of that FFO shopping strategic the we the located successful we've facet growth growth navigate are drive years of been would these community have portfolio long-term taken reserves, ago. well property have platform the These laid $X.XX been to transforming neighborhood through speak have business, out last directly and outstanding on that reinvestment portfolio same the we our results NOI and execution several our to disruption. steps centers believe value. the and Across ability over improved to the of

also capital as Specifically, we've improved we've a our could that on storm. We also and sheet recycling executed and reduced create but balance ratios worked to weather leverage metrics, reinvestment importantly any on and result maturities coverage way maturities no that until $X.X debt duration XXXX. capital reduced a liquidity with of our average our the structure extended and debt. is bank of The reliance billion plans, short-term

is an unencumbered, financial portfolio now dynamic operational environment. invaluable an degree our and addition, In navigate we of flexibility provides which exceptionally as fully

positioned More our breakeven before and Importantly, an platform well. and I of substantial CapEx. funding our without fully to we and rate of Well, would our OpEx approximately us maintenance XX% the liquidity. based rates utilizing any by normal are current collection the on rent approximately operations made in leasing cash flexibility we have have available our adjustments course us and that recurring we collection liquidity the CapEx, today after the specifically, note CapEx structure afforded place or very capital XX% is current

efforts given stakeholders ultimately duration pandemic economic liquidity, served believe unknown and severity the and additional also best We scope, that be disruption. resulting the will of by the our bolster to

$XXX with flexibility. of value projects. a million result, our value partners the closely resulted to on CapEx deferral beneficial pipeline, for enhancing including capital projects assessment pre-leased the our liquidity recurring respect retailer a the low and which mutually allowed our our With broad-based spending As pipeline, of completed reinvestment solutions further and work bolstering execution find of granularity anticipated us risk of we nature expenditures, on these XXXX anticipated to in near-term of levels and our our approximately enhancing to needs capital

facility, became of the sacrificing the closed will disposition the remained without total the leases country offices was will and with more drew magnitude which our We revenue potential $XXX revolving credit preserve our in projects obligated clear, at liquidity XXXX as in we suspended under associated the these stock precious current proceeds, repurchase or of the and the with ultimately created. long-term the around In our value contractually activity crisis on end be of mid-March million sign in a program, balance our at under quarter cash funded sheet quarter. which that

night, temporarily has last we addition, suspended announced In Board our Directors dividend. the of

grateful has reiterate to efforts. the over efforts everyone's As Jim ensure dedicated a the lightly. taking is like shown truly we months. of time for dedication That two that and to Jim's organization at difficult we this emerge to the step said, discussed, necessary actions not are we conclusion, from better team humbling platform. level of In The perseverance for the take I'd Brixmor appreciation the last every we're stronger and a this entire and been

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

Instructions] America. Bank Schmidt first Thank you. from comes of [Operator of question Our Craig

I by any there difference in collections geography? rent was you. wondering, April was Thank

Actually were would overall. slight than impacted each it's slightly our pretty Craig, it Northeast, balanced four there certainly was struck the difference. the more that was we've be by impacted of region which If it a virus, region what that it's any others, close the well Jim. was but reported to being we was more pretty with the regions

acceptance? more terms – to you've nonessential some seen in wonder And then has just consumer assuming I of retailers easy markets mandated reaction I notes, closings of consumer's I'm just the your Okay. what the tenants. on those the discretionary in

seen are I you've Folks general think in as with media certainly it our being seen cautious. the and openings. we've Well,

with Some those it, now the I jurisdictions But does Texas. but across have be have consumers they to prominent, which seeing and you're Georgia, the pickup experience, is started And their been rapid portfolio to few Colorado, leases where months. delivery provide over particularly going to next be. think think that have I been critical lifted, the our think more do reopenings should restrictions a we as way tenants in provide careful, responding continuing customers a in see that also be I in be to safe the

Thank you.

You bet.

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

Todd. Hey,

you terms spoke Jim, seeing that of from describe just Good Thanks. be in demand others what about and leasing to you bit Can more Hi. want forward seeing customers. morning. that you're a central there the to demand? in pipeline closer around retailers their little detail

turn happy I'd it to, but you. maybe I over to can be Brian,

Yes, Todd, great a question. it's

that for One March, XXX,XXX move essential things two forward actually period was during our at shut that the team of sign the in the moderated effectively end were this just that's certainly been leases to while leasing of feet square able upside third bit, sign businesses to down. when the quarter, we the and almost fact continue a last the about XX% leases. to exciting and us, in it, XX within of of these terms of been continue some many has Think leases weeks

quarter. many we of of then the you continue leases categories do a actually we with certainly moderate it a a opening value, been from with like we've pause, QSR those bit in pipeline. sign think a the pipelines up end did remarks the Jim which large his last to if personal electronics, pleased grocery, tenants and We bit It's for still the mention and to with had of had who XX% restaurants, So taken but reason. pipeline of expect

haven't So been those those retailers towards on have even opened put yet. that non-essential of moving deals many execution hold, were for that simply

do see slowdown we're we expect continuing to activity here. to the during pleased choppy, it the be we while are So, that little a with

And, us to that did seeing respect the those importantly, well about in position, to we are trends been And, essential I puts to it we several certain up for talking in in aren't of as well, products to with actually leases grocers, a were the types Todd, my last and particularly the that are close new new consumer. remarks Yes. uses, quarters. And as that tenants fleeing we've pipeline pretty those I quickly. ramp think, as as alluded Brian,

only retail. you're think I favor open in accelerate to going air that of see

look Okay. March, about going those little sort centers a in grocery for delivery have and of before. a here than delivery a pick-up view shopping seen using up the I on bit, last more following to have only. might do We've stores the with micro-fulfillment you right. might portfolio curbside two years, of on on trends view guess resort have and grocers, sort curbside thinking months, going types that since And a traditional of last And here specifically, Do We've strategies more seen store will to then that how ever you materialize lot shift it's really dark meaningfully accelerated maybe To your over impact sorry. and grocery store how concepts testing whether forward and forward? what and generally? itself all two

the here delivery Yes, that's to that think something curbside and stay. pickup is I

that think think format I the has adoption at last the profitable grocers, because cost it's been it the the consumer and a the customer of mile. strong still I also for incredibly carries

their increased seen I also think basket sizes have have markedly. what the that groceries is average

we So those stand some the alluding changes. more our benefit those also accommodate to, we area. have store format in very is are relationships see who begin we and low basis that of rent the to of grocers I you little to and itself leading change and that with flexibility trend the have that that where a But both will generally share market in designating from to well grocers looking for that speaking the the micro-fulfillment, what the I to their spades think also some at formats footprints footprints were you within bit and think

that other the disruption has with you're pointed is And this the customer. when actually able logistics in that thing the get pipeline really that out to is. significant a importance amount customer of the where inventory flaws dealt the near proximity think of have I the overall to

changes of think are So those to some all format. the in things of accelerate I grocer going the

stand our the basis assets. importantly, with and given flexible I rent think of nature relationships our the and given we pretty our well positioned, low grocers

Okay. Thank you.

Our question Khanal Evercore from Samir next ISI. with comes

collection Jim, Hey at joined on did morning. late, any this, point? I if of good I Yes, color missed this provide you early May sorry sort

I What were better well, we mentioned we our April, expect can as is haven't. the than a I I to in in but pretty do tell opening sitting month-to-date, that we're little in you comments, that comments. or moderate

are rent deferrals negotiating in We see where doing we value so.

tenants So, those be negotiated that we may there May. only with, have in partial payments rent deferrals with

April? So, good month in I ahead April. were moderate where were where of be about fact, in a we're not, But feel of think the I month-to-date, I we for a we people it's to going to bit. where Probably I entire lot think are of expect do

Okay. gears And guess I bit. shifting a little

leases the that. let's a that for aren't leases, kind leases asking trying so are of understand that what tenants kind of attached you maybe today months seeing, you signed mean, ago language say On of in trying any if to six these in sense sort there's in I have get pre-COVID? just to March, COVID these I'm of

comment not we importantly of of to expected, and maybe had as Brian Brian, on could to it we've are as Well, certainly on to relates our as have been comment course future with they I'll as provision. it you have looking this But forward, line pandemics. negotiate imagine, such leases we sign and But protection type as hard approach. any of this. let some can taking look you moment tenants But pretty a

And it just build-out question. March, terms great signed in that as we addressing periods. as really much in a leases It’s the looking at there, much as of the weren't Yes.

XX So clear we in it that pay starting today some there we to the pretty those, the it's We our rent. COVID exactly as principle, were see and if it's acknowledge that in a mentioned, days to adjustments today. to retailers the Jim specific. leases weren't obligation but I be address maybe up tenant this, – has XX, expect bit, And they are like going this do look, guiding do do and I own with it's to they think our come money when and think

forward. a Limit going the reasonable time. will these And taken be rule, deferral really line type of those back pretty duration not And because again, we're and paid today within a on then exceptions, of to how that's the it. any we'd approach going hard

SunTrust. go And next we'll to Ki Kim of Bin

morning. Good Thanks.

Good morning.

you So good – morning. XX about guys have

of from from Because or you about probably I So leases? of for your could through addressing and hesitancy some both are about there's during expires tenants you leases these imagine these as long perspective thinking that XXXX month-to-month. expiring your have How XX% releases times, well. some the

needs taken that well really on. expect If We've else, stores be money really thing rent in the occupancy it Ki they and Bin, as year. crisis that, a Yes. the to part we be that low profitability points it very our in this We've are after that of than tenants spaces of focused actually more for gotten to about forward. quarters importance care And move is talked think it's been to their they tenants make stores. of to focused little of here. the XX I overall reason on have through remaining, move an are we've certainly that money appropriate And making But costs. honestly these to anything, percent points anything be ever pretty for of as it going as we is our the to more since than these

tenants that where So rolling, number, good continue be pretty of we rent, while renewal quote a going based a based single-digits on the in is XX% importantly the rolling, to you you I'm to are but and on from the remains, in not standpoint. we'll lower specific which quote it's what about and feel far the terms number, that's

Okay.

be I only small sorry, officially no And X% correct guess I you the rolling tenants, was to at shop looking here. have

to to rent the to been lower cost, of there, be kind has during justify allocate in if allocation, is so aspects very redevelopment and of well of capital key leased, one your if a you capital segment about. repositioning there, anchor risk. ability do of about of there and things times? follow think How to the if terms through this Brixmor In the small be will be there And demand lot tenant quite think the have shop the demand will you will uncertain

hit pre-leased. And the on investment head is point you that substantially question. activity Well, main right is the your our in that

ironically, as we're business that talked on that executing risk sure making is So throughout, exact driving an intrinsic prior that same returns attractive continued through been only plan capital but plan that of we've the crisis. that with very creates and to amount beyond tremendous not about value. this incremental adjusted on focus basis, crisis great the business to on we Obviously, is execute going the a we're

you're get because we those crisis up for did that commitments, risking leads enough are or work, stranding And but without to But significant strange model significant capital. come you going speculative this that emerge investment, us which business in our into well kind we're know, to avoid similar model very the as crisis, that think only a we be amounts haven't I out, going as if to of not where we putting this of conservatism points just anything approach we it. forward capital to before of ground you and positioned that a way, don't it's you and execute paid

for relative company the really strength think our as question it I what just is. highlights a appreciate us So and

Our next Hong question of Morgan. comes from Zhang J.P.

what so ABR other tenants your those guess percentage going that of catch you debt portfolio? you are bad the identified took that accounting? I far, do risk any have Hi. into tenants at representing into And reserves second of looking quarter the

for on be felt the watch and in the did the tenants quarter were question. at into look a were you that that it you Angela, we specifically in and was them. that purposes would I'll the bit risk. more But know, for taking higher Thank those we We at AR our let for first straight-line color. we tenants a crisis. these hard are of by real disproportionately appropriate on tenants reserve the Yes. and maybe impacted take list provide weaker little And reserve crisis to conservative going thought focused

Jim which in tends outlined of in think of was to my their it but of mentioned on. say take those assessment liquidity position had out we single-digit in remarks, was determine, up thorough tenants. exposure that we a to And evaluation is that nonessential reserves were the ultimately I press was reserves a closed, targeted portfolio take their as I total, kind tenants it tenants well, watch business. the it the pretty laid the did list. Yes, to Those I disruption exposure of single-digits, to their handful low a made would release, in the it low

you. Thank it. Got

We'll go next to Shivani Sood of Deutsche Bank.

conversations. you just opening how for give of those this color your that the you're having you're Can these of sense on Jim, many targeting us in are with versus remarks, maybe some touched April Hey, good and in periods in April payback a deferral morning. had I'm And you tenants. terms conversations curious the but on just May? of

going discussions these do principle Yes, are and crisis. it's the highlight is think comment we done absent deals that that but approach detail, to I important which let to more we that, the I'm these would Brian have with

in two in real it's lifting. add that were And looking clauses, restrictive We frankly of value items whether and one there's time period. on into some Brian, the focused months, other So and may generally are those terms two uses identifying those want leases holding to you months, month too which or really more.

principle And been And we've or is been two the we're to of Yes, XXXX. restrictions, a of pay month back Jim, are again, these into extensions. XXXX receiving you value early the getting most Again, get or than greater at the deferral. or that lift equal to covered is it. generally of the that end cost guiding able

with So far discussions productive have several been those retailers.

the So lease, our to place the entering rent agreements, we're as his we're the not into a opening mentioned Jim paying getting to we're in or tenants when remarks. pursue under legal that either sense, making makes rights decision we're

or of still we're early, these more specific move terms amount effort those rapport is is forward. some dialogue as us total team. enter these makes to and sense, in business whether account where, no expect a negotiations making good really tenants as But, just those good deals. we COVID we'd many Jim it of national color But the deferrals, get with each we're to place our have of helping of or mentioned, not of the progress. with COVID And with retailers appreciate Their we

then color. for part that has critical conversations cited out so of think, was And where as markets I least that in disposition have of strategy you been having maybe a the diversity presence. And positive. the Brixmor’s Thanks I much lot sell been of a don't the original at

So still, scope the you very days of of thinking portfolio? early be might about in just but this the curious longer-term, how appreciate terms the or it's size

Well, one where to great of some there the the we red adjusted markets ourselves enough goes our – focus they're strengths a scale, the geographic particular diversification do market. markets in on we center provide have is that are we think returns. But diversity lines, of country having one tip presence really where those I and synergies the across is think more risk it with than always our we think but several in don't

And of so, we've since markets tremendous amount a we started. of asset single done pruning

time. diversification, a is I be example, because them do markets, coastal where We going in certain represent we're few not, company. that have markets exposure geographic think add more, continued will we to this just a strength of But, some of be trying over to for

go next Greg we'll to of McGinniss And Scotiabank.

Jim. Hey,

on geographic to markets been back question and the Just going you've targeting addressed just diversification. you

if I'm environment for physical tenants, very this your changed college curious, near-term in towns? obviously at on hurdles. potential has least university just the the changes philosophy created to strange has some So investment

It's issue. a these on. focused the a have this. populations But remotely. we think this back are I don't Arbor school, the tenants strongly and towns long-term to we think that near-term College believe you're tenants get side Davis thrive. certainly those But UC emerge risk. are and other our have or as I spot they're in mean, of markets those on very where long-term we to Ann I going home seeing on Many making like crisis or reductions students the in our are sure their dramatic assets learning and Station, students vitality the of other getting of to and it's university markets gone of side that we're

actually Okay. Thanks. zero if what point, in of taxable XXXX? how income. as at we us income of do And you taxable helping a versus and the in dividends this about at And maybe level be Angela, rent out you should suspended thinking reached GAAP way can, collection QX

when closely or Thanks question, considers We're as to to be dividend. taxable the Board the when that'll the consideration key obviously a release, in Yes. continuing for determining income and evaluate the mentioned monitor reinstate Greg. we press how

on remarks, about key his talked us crisis, we're to the the Jim how way the there think, prepared of the relates strongest XXXX. I put fully crisis in it focus every is to any Board as color, to too able position As coming in in is the specific reinstate for out more really to environment in just across much be other to point navigating At dividend the the this give possible side. the uncertainty and

you Thank both. right. All

you. Thank

of Floris We'll Dijkum Compass van Point. go to next

Hey, Floris.

Hey, dip question look of see good do you have the a my shop? COVID historically, you sector opportunity shop is And in on What liked taking small at the small Obviously, could impact as to your growth peers. portfolio strategy shop. see or result the guys. on occupancy you the here going Thanks as occupancy do do impact question. has forward? the A your how your that the greater small morning quick leasing, on your likely small a for shop

great of from has the a And in anchors towards several vacancy part first shop perspective strategy growth repositioning and to an momentum strength an going of that continue a seen we're see will underlying dip of it's redevelopment Dress in capital. the geared as due shop important quarters. and be everything think leasing occupancy our utilizing question we've forward. We Barn, we done that that trajectory the small strategy off our been quarter over that particularly additional but and Well, a last growth lever, that small you've as some did

have that strength I'm upgrade tenants, it portfolio, if small tenants, real what the anchors. points dig shop that actually, in rent think numbers, to quality you've think our the real seen I work paid amount that of has you our some of proud April the to interestingly, into collection non-essential been of small And including our shop tenants the of I forced by close. And because to statistic, quarters over XX been of the continuing upgrade

opportunity. as to on of be that we we'll other think we side so, emerge to use continue an as And positioned this, the

me Thanks of regarding just more question the you let one suspension dividends. Jim. And ask

Sure.

out sure is dividend before. again, look was – a pay going be resume the will some would your But paying quite coming a were You you couple that, as the the of more a very how what suspension? skipped Would things clarity paying you then Obviously, you potentially able to that expectation consider of similar you this. quarters mentioned have – and payment suspense you'll dividend of still result a you've same you or into would not payout dividends going we're not quarterly low this for this that out. once service to or ratio

day at is of product the grows. dividend end the our the Well, that

We're the you take to we that as all so an in ratios risks redevelopment mentioned, very taking payout perspective. reinstate the And of enjoy and dividend. being lowest the a significant abundance we sector. really that seriously fully It's and And we not in suspend of to able pre-leased. made with it of focus decision one caution the from decision

next far years. liquidity, we more of over amount liquidity need the huge a several have than We

tenant on And other failures for this. as look really this decision the the be potential is and side conservatism potential the a we at to of of

raise haven't were the you when needing issue of back themselves the huge addressed by equity potential needing to XXXX, look to XXXX, If of destroyed be at equity in of And the the shareholder to amounts putting worst dividend possibly position value you companies at could time. what wrong time.

given But investment some like but So what advantage eye on our competitive one dislocation. this only it's an low of because fully are also so And easy position being ours not reinstate payout believe to also will towards to opportunities it a is this, of forward platform capitalize a going with emerging but be think we attractive Floris, the the not decision in decision. very ratio, being a to right because able from conservative we we decision the enjoy an going believe on dividend. balance,

next to go McElroy with Citi. we’ll Christy And

liquidity with context risk. Angela, how you think the and today. the sitting Thanks. amount at Have for sort the that period pay morning. In for thinking balance for you're that of about down line? a good potential you're markets of of holding longer How cash do a Good our environment by accessing larger looked time loan indications? for pricing or markets unsecured to and of position debt the about you solidifying the term

We're more very on Yes, certainly a We're thanks our capital of think bond perspective. evaluating to Christy. the from I duration at REIT be focused we're markets starting unsecured at also. availability all will options looking closely. do see that deals

as in we we at this evaluate capital some and that something gain know by don't a structure short-term obviously I amount So would debt But tremendous point. that's consider well. the bank to adding

a credit that. the to terms might position facility in on balance In of and address be we when the

weeks you of I picture And think then sit mentioned, business and that from the it's like how an just as of perspective, evaluation play forward well. over we months. looks kind what things where a out ongoing – going as and it's availability capital the coming

CAM if the on form the sorry terms operating missed recoveries? fall in to tenants How NOI and then, much the And to XX% reduction this, discussed benefit of actually FFO expenses. being versus I of you in in that line Okay. bottom will to passed of lower

these but of reflected being to that lower terms XX%, the the leakage to going as the up probably income in somewhere XX% kind accrue Brixmor recovery going it's net of say, passed side. through I'm rough recovery in really being of are tenants. range And the in is to on about reduced it's would Yes, number and estimates, a to remainder benefit end

really on sure forced to reducing those close. I'm make Christy, sorry, we're have been to focus but tenants there is non-essential burden our the that

thing how that wondering just Is sort like second more quarter, that is. or ongoing? I was a Yes, of the temporary quarter

Well, to to we these have the closures. of long continue it as the we duration during ability need as

our and the are the As of of mentioned we'll I we portfolio of businesses are in an based reopening seeing pivot that course, level across open centers. of on appropriate rate accelerated each before, as

Thank you.

Jeremy Markets. BMO next go to of We'll Metz Capital

Hey, thanks.

Just a here. couple items follow-up

payment. in the Jim, shop strength mentioned, You

and May moderating was and discussed to April? about in moderating maybe It in tenants, the pay then versus negotiating with amount percentage who actually So across comments collections what XX%, collection in June. potentially May have in anchor with paid already of that earlier that your of and tenants or implied shop deferrals grown who deferrals that maybe reduced is in these implied terms a are being

me hit both those. of Let

that now. it having the as we're look, deferral to relates So, discussions

Some April. in of pay did them

particularly Some national of actually interesting categories. those than small shops for to close What's same the were rates they collection in nonessential higher of is you some the didn't. anchors were look and the shops, them forced at that when hybrid small

one as constructive guiding well really the who what we've some very to that legally rent as I with sure and been in appropriate and mean, in of I is making some those pay our I principle the April didn't And believe we're want entitled defer. make value with abundantly thing obviously did, us engaged getting believe for to discussions we tenants to are for agreement clear, April generally the again May. who lease

under that many negotiations, remedies we go ahead we as their we we're leases. and pay those with, constructive under the decide With to and the tenants And leases get have don't for that obligations of what's interesting kind don't those rent. discussions honor they pursue have going to those into tenants as all their of

the bit. success team actually and – tenants moderate deferrals people negotiating do with these We that expect do think expect in value than April. but which collection that April. has they were unlock given entirely makes the of a had again, and real ahead we larger that Brian leases. is to We the of we because rate in better of sense that many where So reported in for some May, And

first just So just anchor. of able to on shoppers slide, collections from are the you the on breakdown comment

I don't specifically. numbers have those Angela?

for XX% the low anchors, low were the shop. Yes, in we range small range XX% for in

guys. thanks right, All

comes Our next of question Piper from Sandler. Alexander Goldfarb

Yes. Hey, good morning.

So questions from me. two

I is some Jim, layup, but this there's a you good color hopefully provide. that can First, maybe

of to their grocery the retailers your an about thinking the retailers really As so – compliment rushing both and physical active to fulfillment? robust store, location, store, obviously, what's been the been been who bread, stock store And – feedback of out et cetera, far both What's online. far? so in stuff whether stuff. their to feedback and Everyone retailer as have who who platform yeast, as buy that's there's far stock whatever, out online paper, it's do drug toilet

has during categories turn actually certain from time, this that as found they centers and on out are to better filled, what in shopping be curious easier the e-commerce things Just they fulfillment other feedback of direct look Have at their your sort platform? been?

what online they've think robust product and know saying if even their the on before, be color do that higher presences of part found their retailers of mode And Those much think there. Brian, outside I model store lot very different I that of being business fulfillment mentioned as stores. don't that they're going of adoption forward. any all I balance overall the been are you has have Well, curbside other delivery a sticky types. will of focused rates pickup their a across critical I on have a

talking ship Yes, where didn't have that they're shipping have hear country. I at products do full to the from in just a started it. across And it just has say looking interesting store interesting would been our been retailers, those to to from that it's platform

from find you ship do perspective. from a saying, store can looking wherever Some of product, they electronics are that the retailers – specific whatever can find were the more to of they

further of out this, and you're I curbside an retailers doing a importance little the perspective think much the Realizing of and our platform. had for of of behind to going from we're that see pickup importance coming of that further coming integration coming store so when store, innovation it's shift omni-channel we more realizing then And retailers of the ton out haven't in. from as from acceleration a a just bit the expect this, those

sense waivers of Okay. you banks second as as tenants are your And or creditors a do many how if gotten from then for they have question have far is in their their those covenant default of – their your lenders. on doesn't many with their their other financial their other but of waivers? how it you trip covenants lease gotten color any Do have tenants have

but that It's them a looking their with are they requires Today, maintenance it's properties, be we many question. a at number, significant great which of certainly compliance don't the that of believe particularly leases. in under

severely enforceability and thing look remedies the from not I we think negotiate actually know in And past which believe attempt we see sell at under retailers what out it's based But our disrupt some everything been of retailer's the though, the to to the it. are But clearly that recovery. could units of we there Because trend. that lender it's broad looking to need to product. a those we have leases, is tough a leases Alex. right, have to you're do what a asking basically

Thank you.

Haendel comes Our question from next St.

Juste of Mizuho.

Hi Haendel.

think Glad get the money shop want to got loan, I rent small beyond morning. a Good hear Jeremy's up hope ultimately small a on, loan as I to on to everyone that follow I you have with use question. is help you PPP is and forgiven. understanding My May. and it April to operator, pay just well. that to Jeremy's collections question you

ask May because deferral use in you rent. money So to April, to the necessarily for sense make for have it wouldn't

money pay So the use you instead and to April May.

you quarter. ask deferrals you could suggest deferral under for need and probably then if second help, pressure which June for And that remain beyond July, collection

into on view and So what I take presents risk guess, I'm curious on and this mitigate… of do what your steps the address you level

duration hybrid of are the the economically of probably, important represent most about category be in to for and sensitive shops, crisis, you're very are pointing that total right. and us is to the which local going to our that non-essential That Well, those ABR. small the mom-and-pop something XX% businesses that this

going the driven be ultimately of not part what through this and what is shape long only does plays about but in last, how is So to by recovery.

could The closely debt payroll the are of our they rates, been PPP a those tenants to PPP these a Street expenses forms of proceeds other to expenses. the program type But below companies has able that to of behind access and one on to get borrow business relief of lending for forgiveness qualified used the sized allowed by are pay and many most rent to believe program, watching ourselves that basis. will like program, that we of Coming on which are business full far amount tenants and positioning embraced to at portion including these there a very public we're tenants attractive meaningful is Main which money be where four-year avail that themselves. is give apply

Main which they've for number As then going would a for reopen. that have finally, Who we're actually some form duration, comes more way tenants. lending provide And not suffered. to to that at Recovery get these forefront other that the industry to to the the Street also but amongst provide watching side ICSC ultimately of liquidity if different them is some of a been knows be the interruption working really the Business even which believe I comprehensive has associations, to liquidity, business but businesses also through just small Act, the an on closely for through capital relief do of the

went of businesses I on. crisis. all continue these crisis. in through the very this to rates. as something thriving we're move And alluded were as earlier through The I were quality, provide But that question, some updates collection as focused into we it's in an to shows we'll remember we And our think

you Do these providing to on your curious be tenants? loans loans structured your deferrals and Thanks. much how how XX beyond doing include So interests your tenants? help or to you, could providing just assistance you guess like Brixmor, I months? actually to helpful. you, they to That's more to are making longer are Are tenants? open six And much to deferrals financial term

to and Gerstenhaber avoiding We're make these team, we're an basis on our the to David the leasing deferrals, tenants of board. being what the team side this addition that entire other underlying size possible. very our And sure on payments trying crisis we in Brian think careful as And of collections to the across is. and deferral intact generally with tenant's we each individual with emerge working is as to need

providing a support program would capital or Whether point, broad Street working additional Main in we we capital in we have working to it's to the lending bit little get that of premature loans, circumstances comment provide if bit decision other assess But ultimately certain the But types our is early, on be. this we side see particularly of good not in to this certainly crisis. arrow at through would how a to as additional Haendel, certainly business that quiver. watch a

decisions the make try tenant. more tenant to best business liquidity But ample it. have to than by going We to provide we're

go Vince we'll Green And Advisors. next to Tibone Street of

With morning. centers penetration vacant this to selling space no Good could e-commerce dedicated of year, see micro-fulfillment converting space any box little you your likely accelerating to potentially? with

It's a great really question.

rents. that of some at for the seeing instances are usual in demand underlying actually We micro-fulfillment, suspects, from rents increased many retail exceed

So we are very as interested in that trend. a

I support center. within we're that you need Vince, that use of the make and type that doing early. properties damaging would the very also use balance to you're not it sure at that the you're And of think,

And tenants other is is to of to within plans of the on that of use. significantly. think honestly, centers that main is think different this category coming points it going have, really are line valuable open-air boy, think, users disruption, I in the having with through Vince And discussions a is to darn close to mile, it And are business it's these shopping kind But it that last we're retail grow early your we consumer? how nice very I through right. we what the be type particularly

up to you distressed and attractive an investment temporary And interesting offense more you One potentially with would opportunities? from go levering your how your feel on returns current do maintaining attractive color. you weigh are all liquidity position? there underwritten balance if consider me, sheet That's

we further really We're this take think just I smart. attractive right that's going not to like crisis. may get posture real look important And an because We're what as now may that be return a in. through conservative not that

we sheet, about. that other by So to as dividend puts frankly in of balance we took what this, maintaining position we a the the the a action do to believe conservative that you're get talking with exactly better us side

we're really informed that it our of substantial lever a lot have just But not made to that too I decisions downturns around many decision of in shareholder dividend. like going destroyed scars previous up. And the a value. from really were amount that,

for Thanks sense. your Makes time.

Thank bet. You you.

our And of final today Jefferies. question Tsai from Linda comes

Hi. aggressive on like would in those pause there start was once again? still of the and tenants of more up for conversations conversations Headed are now expect and right negotiations probably world. discount Rosses looking into become Understanding grocers new COVID, space them to T.J.s you those the their group a

turn over and pause it on Brian, I’ll not they're to Linda, Actually, maybe you.

that store – – March from department leases many it traffic We Thanks leases increased in those with looked get particularly those that if with Yes. to includes leases to Ross have to still not closures. were signing – pipeline, we the you those signed Jim. of at tenants increased with and They're our with signed they're going we in robust we names Burlington pipeline continue expect with March.

department what's We're in already happening stores. seeing

to all they're having want than going I We're think and aggressive new that like traffic So to that. to more new anything, going even to be And come if opportunities from Sprouts talking with or talking us We're see they're Lidl. more their announced anything a the getting they with terms they more to back prototype grocery up deals. get were – to perspective, ramping before.

where think a there on is many retailers from standpoint, open. a getting stores focused to look, be of these period timing of going non-essential their So I time are

deals of will there forward terms pause bringing that And but done to great deals in moving that so team's pause leases to continuing not forward. the forward and regard, position So be a of those on able a a move deals a our committee. a in to those on, into when things and going those we're effectively turned in move of be lights we're that back get execute number job

we're those you still demand. So mentioned, strong particularly in categories very seeing

color. as go XXXX? XXXX questions year-end Any for of sense might trend Angela, then And overall and just for through that we Thanks one on this and maybe how leverage touches Christy from Vince. into earlier

the another It's within in a one focused as Linda. on those that coming Thanks capacity Yes. as as possible. band we've ultimately environment can specifically. get on given tight the collectability, into questions of which is there the little reporting of a as do to other bit going obviously of as the further we're impact could an difficult, we in accounting as with change and side quantify our nuances talked uncertainty I as the to deferrals on, overall and be that we managing We're recovery level much as well. the assessment very about from of an as of perspective are think have associated signing on of with that terms some as some well going that's to ultimately

So medium short a But at to from to a bit times a little low term down that'll always just level to the to we're timeframe to is through predict, focus at perspective. difficult least I be work as we've our especially year-end. it had looking would reiterate the longer and commitment six continuing

Thanks.

remarks. to Slater time, any closing or to turn call this the at additional And over Stacy back I'd like for

Thank joining you everyone for us today.

participation. today's everyone's conclude call. We appreciate does this And

may now disconnect. You