Brixmor Property (BRX) 2 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to the Brixmor Property Group Incorporated Third Quarter 2022 Earnings Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now turn the conference over to you host, Stacy Slater, Senior Vice President of Investor Relations and Capital Markets. Thank you, you may begin.

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

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

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

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

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

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

growth visibility more forward IPO the a company. for our environment. on records XXXX And even metric, good the our of really another I'm morning, phenomenal post execution strategy. and Those reflected that are every that provides value-add accelerating discipline which team economic pleased in report execution to Stacy, Thanks, exceptional and everyone. of many and disruptive transformative of by importantly, Brixmor in highlights quarter impacts through are impacts beyond,

plan results performance. continued our to all-weather dig Allow and for highlight into out how Brixmor me positions our

XX.X%, record of leases record a included a we comparable spread XXX,XXX new feet of XX%. and quarter, cash new of a a of rent square spread blended at feet and of of $XX.XX the at signed million and foot, leases During which a cash rent X.X renewal $XX.XX

LIVE! effective our impacts located, the net tenant we centers. remaining This market strong I'm plan exciting traffic breadth records for like pleased the in rents, concept, the transformative and grocery, while we and drive capital. to demand share achieve our recently well or setting will disciplined with menu. to core demand in And new also of value the as or tenants as concepts outdoor strong brought that in openings with drive casual, Cordish our And store Yardbird furniture fast value-add of continue by our we've Bark The portfolio highly Buy’s the categories Best as reflected record traffic apparel. underscores such be additional that those to wellness also Social related performance

Our commenced lease the million a occupancy during XX.X%. leasing XX.X%, $XX points. activity driving increase quarter, And overall basis another of a XXX ABR company of importantly, year-over-year to we build new of our drove record to occupancy

underscores also XX.X% and a for truly we a another benefits rose reinvestment achieved, record transformative shop More rents in foot. small set occupancy than other which this Importantly, our small $XX.XX our of on milestone any growth of rate new and achieved follow-on strategy. occupancy, shops to

by XX in average new to our all leases another months. place on but foot has plenty still company, achieved drove to the over also is for of record We $XX the a run foot, which demonstrated over a nearly trailing ABR room $XX the

as environments outperform rent such opportunity strong as basis XXXX, provides disruptive times, we've we're in to we demand through as such the well supply said, today. experiencing our As attractive many as environments experienced

points down when you from of prior the consider top due X.X%, work declining receivables. as period delivered XXX execution uncollectible particularly line, same-store of deemed of collections drag run X.X% basis we growth is revenues which primarily in Our NOI growth the our impressive remaining

improved grown and by occupancy bottom driven on line comparable we've rates, X.X% basis. Year-to-date, FFO as a recovery we've

those Looking forward the naturally declining well in several or Even full beyond. over the underscores which XXXX growth will is declining the loom, nature receivables revenue level as leasing growth signed of truly disruption visible but commence annual outperformance with This have rate our commenced the still plan. base prior rent, economic new possibility increased collections of of are concerns as and rate, $XX in rent NOI quarters paid pipeline. period we as million our our continued $XX the next not expect ahead, we forward of in and all-weather million in and of of

are us growth, as still ratios sector dividend reliance plan we announce volatile flow which flow cash cash one at of self-fund we free markets. increased and in our a of X.X%, confidence in the value-add increase our without utilize to Given to the payout the capital on pleased keep continued will lowest

on despite time. of deliver get to with our as Speaking that partnered plan, supply pipeline ongoing tenants to continued reinvestment chain open we stores issues

incremental $XX significant series during yield, highlights at value even do a over of truly of another million reinvestments X%, The our and an completed website accretive quarter check $XXX At an impact on transformative Since cap returns our And XX% value of the incremental program. to video a the have higher stabilized environment. our importantly, Center that return yield providing rate XX%. $XXX creation. began $XXX deliveries million at we of projects and we've million a out significant our leased future underway we program, million in Please at We year-to-date in creating bringing this

compelling the From with we capitalized debt landlords flow an maturities and continued well struggle as will quarters more find the constraints. With in Keeping pause in less on values private capital investment the during upcoming this our we cash drives, our some and environment, continued sales standpoint, subsequent liquidity non-core sell million coming markets completed assets in of to to even to power smaller said, be transactions with challenging there we've acquisitions. believe quarter. that $XXX end opportunistic over opportunities at

debt allowing us we XXXX, as have And will to of and discuss no from opportunistic until be perspective. liquidity external growth importantly, Angela further, an maturing billion $X.X

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

Thanks Jim. on the by and our both report And of the of to creation strong the highlighted our embedded another morning. the Brixmor I'm ability execution harvest potential quarter portfolio platform pleased value team of to that upside. good

growth Nareit points Base FFO basis same growth to third quarter. is accelerate, same X.X%. by $X.XX growth share contributing property in quarter, the of continues driven per property XXX NOI NOI this to rent

lease XX build releasing occupancy acceleration spreads last over basis representing significant abatements growth from base period, the rent Excluding XXX reflecting and last continued in contributed the and the impact of points, a point in modifications rent basis year. prior growth quarter,

basis Ancillary, basis percentage expense a combined points other basis, rents and and income net contributed contributed XX while reimbursements XX points. on

detracted reserved XXX of from uncollectible deemed to amounts. same basis NOI moderation primarily property due previously growth, the fully Revenues points out-of-period collections of expected

approximately Year-to-date to minimal of will current or per $X.XX that collections we share such years. $XX recognized prior in amounts our And have out-of-period million be XXXX. related expectation is

do revenues historical we deemed NOI and to revenues a expect of result, as reverts uncollectible levels. next total uncollectible headwind be to FFO level to both the year deemed a As growth same property

shop XX basis points basis leased new rate The sequentially. XX.X%, headwinds the XX strength and was despite sequentially, XX Build points up of while the now Our anchor metric. environment small sequentially, stands basis up operational reflect current at occupancy up portfolio. continue metrics up for sequentially, macro reflecting our transformation the portfolio was of leased stands XX.X%, points leased the another rate record to points continuing while successful leasing basis at XXX occupancy this

but The yet lease vacated related to total existing not includes tenants, this spread $XX between and an commenced points the occupancy which soon pool, by totaled to grew space million. will basis additional of XX sign, XXX build basis that points quarter. And be GLA,

is the with has pool size quarter, been within significant last pool. in velocity While there of the the continued line

on adding million annualized over As population. of rent leases newly we based leases commenced quarter this representing the while $XX $XX to executed million

in we've while growth As one build a highlighted the between strongest increasing. lease persistently is occupancy widespread of build past, lease and of indicators and occupancy are both the forward

average, per initiatives. rent on sign addition, approximately of foot our square remains our $XX, but impact portfolio the above the based reinvestment In not annualized well XX% reflecting above commenced yet blended, the pool granular based broad

From no a had X% until $X.X we floating September maturities and as perspective, liquidity, billion debt only rate available debt XX, of of balance mid-XXXX. sheet

a As obtained delayed a we expect April, XXXX reminder, with to term the the that loan in $XXX execution of we million our continue extend credit balance duration amended before sheet. utilize facility April of the to draw to

XXXX, loan been has term July has through loan delay swapped been $XXX swapped. not draw our yet term the While existing million

ability our last expire range capitalize were in program and equity offering renewed of noted in repurchase million our have share which markets both also we conditions. at-the-market $XXX to a set on million proactively capital our January, $XXX extending program, release, As wide night's to

income are over the to $X.XX possible we to of pleased increase cash night highlighted, retain program. X% free increase per $X.XX annualized or also an the value flow on an in strong last reflects as continue share, in also much growth Jim reinvestment as dividend basis. quarterly experienced This the the announce company last year, the taxable while allowing dividend execution to to enhancing As our

payout closing a quarter yield FFO of ratio stock represents third on over last level a dividend price. revised of and night's just our The X.X% dividend of XX%

our X.X% NOI range guidance, to guidance FFO it our at a $X.XX of previous $X.XX to As revised guidance relates to And a we property maintained to have X%. share. have per for a we same range growth

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

of proceed question with this question-and-answer Thank comes first a Instructions] time, Our your conducting be you. Bank Please Schmidt session. America. we'll question. from Craig At with [Operator

morning. Good

will Jim, redevelopment for given XXXX? back potential investment morning. in on pull Good be I'm the there the recession wondering any

we as accretive are demand as highly is well continued returns. finding What

of rent environment able we're that an we're in the offsetting achieve. even costs with very So effectively to increasing that

environment important about And quite in we absolute As those an we've initial not returns as and small some higher for in all self-funded lot of lot terms because the is benefit rate rates, importantly, business that follow-on we're liquidity and and compelling. also, talked our are it's driving you're we're achieving real a follow-on of occupancy because metrics, our Craig, built shops. returns a plan our of in measured seeing less

NOI, our to disruption COVID of also that So quite But such it group. the the over peer one that think, our some outperform a demand where than top today, the we've grew at we seen us we like in allowed We during time. seeing period X.X-year we're more how the really, tenant is positioned. like I strong in as we're of environment in plan

plan reversion But a that failure, believe then see this way perform environment we et more a levels to position cetera, the in in implicit what's reinvestment stop normalized we your as question, to importantly should is of to tenant really well.

ABR? your Great. And are and negatives what positive the having of local just tenants XX% of then at

It's the the did have failures. important the through And And things that was of even interestingly, some strength more with the demand one with it well-capitalized those backfill have relevant small to operators. to struck center serves. tenancy. the pandemic to really local of be we tenants and tenants saw better, us community We the that

a the as we're Obviously, it's it's tenancy, portion local, that national, out absolute so, to higher balance. growth of our typically embedded we're growth, able absolute or able to tenancy. of rents, And shop well regional as drive in small whether higher drive

great like balance instability importantly that cash think We a perspective. a from regional, provides positioned tenants on how and today. national, very local we, of we've But it's flow got good visibility

you. Thank

bet. You

Todd with proceed question question. your next Thomas is Our KeyBanc. from Please with

morning. Good you. thank Hi,

requests local question, at health Any today. portfolio, change I all? you first and your the seeing any or to guess local pay the are that rent of on in the or small ability in tenants Just increase shop if up exposure following wondering relief otherwise tenants rent in

our highlighted. And of. of upgrade worthy we've achieving, this Quite an small rents in really the but the strength tenant of levels frankly, think of as in tenancy, very contrary. is occupancy shops. plan, executed implicit We're which being It's Todd seeing particularly and in which we're our we we're results, quality the entire proud in reflected that's out good base, the something

also to importantly levels be Our centers. be levels very very to And strong our collections traffic our to continue strong. continue

positioned. how we we're like So,

points. good just Yes, last period few it I’ll a around as XXX revenues points And to you to that's at for basis the reserving shortfalls over it this we're been There sense that for is what to some disclosure add basis collection quarters as stable deemed revenue. relates up current relates in uncollectible. stuff XXX gives

deterioration pretty collections significant, and XXXX. earlier sort continued in of to amounts So would certainly with some out-of-period amounts of in lately, credit continuing any are the other have remarks, we be and I thing in and XXXX collect headlines we previously quality. from emphasize our have seen talked about as macro both And the of reserved XXXX is, Jim I even not to

with says were they disruptive positioned good The and fact that a more are during amounts paying tenants. despite fully tenants a underpaid have few of think I delays they into fact were really off there that through the payment something, some last many those in how come economic are the is sign the those that of environment. years how pandemic that going

collections Yes, and I done a enforcement of you and job to the really collections When the experience, put look the think, of of at drive good I leases, our at our we've there. been we've group. what top in terms able

of rent and into from some additional the what your the paired the XXXX? Okay. from you comments not in rent X.X% around can mentioned, third ask out-of-period Angela, context to the to quarter embedded around anticipating continue your fourth expecting are pipeline. in that you quarter? improve heading leasing provide growth collections noise occupied into the see And for the are minimum minimum then to Notwithstanding, growth And you growth from sign you Jim, remarks I about wanted some

on I point and it because important. is this the appreciate the focus question

you giving driven growth. that line on strength as do continued will it's forward without pipeline. the top And guidance, specific sign, being well pipeline tell So what I by that but is we in occupied not as the expect visibility

towards good the time, think the growth of that it long So, trend going range. a we is end if to about period you upper rent that over feel of

XXX I points. and we've in be basis say basis, year guidance lease sort the our of full rent modification a XXX would that stripping is base was growth, out given year-to-date Yes, on year-to-date from between XXX at number, year would we the earlier for points. somewhere contribution abatement The the and basis

acceleration see So QX certainly I some us get you to range. could in midpoint that do the think to of

in the Jim commenced continues signed that very we're mentioned way the to with remarks that. pipeline pipeline, behind his pleased said, leasing as that And but deliver and the Jim not

All right, great. you. Thank

Thank you, Todd.

is question St. Haendel next Our from

with Mizuho. Juste question. with your proceed Please

morning. good there, Hey

Good morning.

curious grocery Given activity, moved utility or $XX especially could And could assets on last fourth cap quarter? you I some you in rates the was on you perspective and cap rates quarter. on they cap non-grocery have here provide transaction are provide, give can recent versus where million the how early hoping the today rates over the for

activities. We slowdown a are Haendel, seeing think I it's across true and the universe, real in overall transaction

So, data instructive. are less points

everybody tenure cap cost most gone. tight think to transition wider I the there core finance and this, point or the has shopping pressure With to it's rate on of anchored even in rate. an think, said, I due rates a clear cap where where for is like that that environment has centers a gone the upward grocery can cap to

closer that way the are by asset trading is that in to that, wide movement believe that don't the classes movement rate. as near anywhere I as risk-free

team buyers, in both finding buyers, we cetera, looking Maryland. uses the XXXX from sold quarter, part look the subsequent rates to testament College and achieved properties as attractive. to that very private they such et it's and alternative as at liquidity cap we quarter you buyers and what on And Mark? well as we for at the capitalized Park, a through in the are what If smaller Mark

few would sellers. months, I wide the between by look Yes, the comment it's pretty and you driven owners bid-ask then a market at over when been spread past really

So looking demand the and clearly to there people class for buy. is asset

the and slowness what some seeing see the some are in in that's wait say to I going rate what's think, today. you really are they think of driving, market environment, owners happens I the and

in a willing fourth quarter rate Would on so you far? million the to provide cap be $XX the

cap I give Yes, we on the prefer rate, very seen centers I end on for mean, transact going rate one rate. low the quarter which be to cap subsequent once a the when of five sold is assets pool, below historically, blend you've I wait subsequent to would look quarter million but at we and QX full was were the to at of alternative results. cap The an pool give to there in use shopping where end, we that believe $XX quarter sold us

And but maybe like widened enough. a Looks Fair quarter, you. SNO from the XX embedded for one Angela, declined spread Okay. last by about the million. bps rent $X

mix So off, spread the I'm ABR expanding. pipeline first I bit a here a Is is why guess that within decreasing while curious the a slow issue? is

as going at Thanks. it's as second, now spread then And you get? historically slow is good think occupancies, to sit high you as this

Sure.

between a supplemental signed nuance signed build lease fills what bit and commenced that's the table. under not have to footnoted prior and delta commenced space that's And the in not So, between tenants. but occupancy on existing of report occupancy back relates not commenced tenant. in yet the of have been a really but leases that signed that spread pool the there in So we is build Right? and currently the from

leased not sign point space So basis that the in basis last related to points quarter, down but basis XXX points to total XX included getting occupancy, you tenants that build between build pool and and occupancy. were spread represented of commenced XXX currently

in to only yet points Today not occupancy. commenced but tenants basis currently signed the in is we're XX at still pool, XXX related but that of basis points are that

signed So a incremental not today the not more more but did commence ago. than though pool quarter pool, of it total number is was change that even the of

open SNO time? stores just on to commenced one And Thanks. follow-up you logjams – expect it. next year that just forming any seeing on or SNO Are it. delays Got rent are last pipeline. Got any still get sorry, and you the seeing

this Brian. Haendel, is

the I job certainly operating being think great his talked retailers. with talked are about flexible portfolio. are across had found teams that a they're calls, us in I incentivized to opening has working But incredibly partners our been or bathrooms to that. very forward remarks upfront. where in this locations get And able as We done really our we've stores some on units existing in had great environment, what go those of minimizing has and as keeping Jim team delays about we've prior think We Our closely year-to-date. are scopes open, the they the keeping at, do successes some positioned negotiate because we've to these HVAC and retail

of more advantage normalized even we're the a environment. practices take of some learning best in will So

I team the think great a So has done job.

and actually say we're is would agree, I what I would our quarter exceeding in commencing the expectations.

we about job we're and regard. phenomenal $XX an imagine, the the occupancy. open the team with rent tenants this talked absolutely So of million tenants in that is as a that of you the getting aligned doing could commenced quarter, in And

highlighted, tenants and as So we stores as quickly are working Brian possible. as get to the open together those

Thank you. Great forecast.

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

morning. good Hey

morning. Good

Just – air the it thinking about room is reasonable with me, portfolio full in reasonably today. those see Curious stands for occupancy, occupancy. quotes the and achievable as what you doing for I'm not

points You've basis the the in fruit future kind occupancy term? you to really left spoken benefit redevelopment pipeline? of the see fill in active pipeline. near do up more what curious in the of how XXX locked embedded the about is much as I'm But And low-hanging

Love air the appreciate quotes. and question the

occupancy portfolio. As increase not we're about is we about potential the we but to for think that occupancy, plan, only the continue excited what

believe have rate, also of you're our run. but believe run as importantly portfolio to we high why an of a the we that's we component so room we shop overall hundred but in well. see room to of couple a set We it have today, small seeing still points both basis And occupancy records

had to what fully hitting the portfolio ever benefit So of follow-on potential something occupancy important a achieved I and past. it's that this this above the has in stabilized portfolio see this understand that's so of increasing that's strategy occupancy the

improving about to to the consider assets the it's that occupancy. not effectively, growth the ROI strategy, simply important NOI rate, on all the about another But thing maximizing in recycling metrics very It's But is and so value-added need success about over granular results of strategy. this full It's we capital driving a have, getting time. see it manner. to a you to in do doing and look disciplined at

full that to more to is that value. create exist environment, even will recycle in value this opportunities platform throughout So create we portfolio a a as the through occupancy continue

digging that. the redevelopment Thanks. and on be just contributed what terms you of any pipeline thoughts back Do from on And that occupancy? then just kind of future might in have

future the we the redevelopment you get you give we then XX% recapture going in give have $X potential we'll a X% that's that specific mature when and another to to million opportunity return. that leased, space underway, look assets. pipeline. that the at to can't the identified incremental and close to be I opportunity have occupancy leases it, $XXX properties guidance But substantially And those billion beyond of as drive of we've us to on

got So, of visibility internal and pleased several have growth-driven like years value-added we've with environment been plan. today of that done what acquisitions added. that activity self-funded a an we've it's value with where in I'm even really

got I in where, it to we're the growth will in and our and need continue years like we embedded sense is in of that don't I an that's of pause. But several control. regard find positioned environment makes in to about runway assets how future as the grow to opportunity we're today we well. Obviously, openings But that. own what we think, We've that

at accounting And this just if point? Okay, follow-up could Angela, I are rent Regal thanks. how for from you with

that of at fair basis movie cash Regal locations tenants been the pandemic. Yes. through It's or to tenants of time the our filing. was had have We entertainment theater rejected. say One all our on three

in We have two still place.

is as tenants So cash received. revenue all our movie of we recognizing are theater from

Great. Thank you.

bet. You

Sanabria question Juan Markets. your Capital with BMO Please comes question. from next proceed with Our

good Hi, morning.

on today's maybe the as although a expect still better rates? be you given back there. definitely spread are with you to Do on go just the hoping higher comment bit, traditional about redevelopment little particularly are move Just will made environment interest ground-up maybe than capital of positive the targeting compress you those a you higher the to cost question getting rents higher? that that in a and rents Craig's increase and developments, Or yields would

what to offset Yes, that in demand. through seen the to centers. redevelop been cost able with we're the we're rents realizing reinvestment of tenant and it these on that terms is the on by of But projects come we've we've the seeing side also the equation cost the driven fortunately,

So again, on good pretty we able have returns. visibility drive XX% be X%, to incremental continuing XX%, to

it are Of underwritten, think in course, the returns significant value. we rising higher. creating not what And much of we even still interest gross rates, always environment like which about rates that cap as and incremental an we're is Maybe rising much we've as a were clearing single we're in setting the benefit the but we're the digits, rates balance low the growth these continued of investments from assets we're making. margin. And as assets still importantly, for value when healthy up interest by

said low. doing type very would tenant-driven that, very a is work redevelopment exercise. to we're really beginning associated the as I the also not Jim Yes, just projects. risk with be that of continues add earlier, This much, to We're

have of no the signed, of substantially obligated. all risk at leases have all of We we the until revenue contractually capital kind

very achieving they activity attractive I be to So standpoint the might against where where that and complexion returns when about risk a today basis. are on rates a think cap continues risk-adjusted from that you or we're go, think,

foot your in different makes you traffic if just on your into point traffic. quartiles demographics have what or a as you on less out? some or you follow-up bifurcation traffic then your That centers, affluent any any to And portfolio for of or affluence seen foot lower seen to neighborhoods anything Have cut Have levels? sense. foot you

us is it's portfolio, across encouraged it's really that year from Brian. whether and we where really which consistent We've had broad-based have of terms We've terms what we're a pre-pandemic. really in anchor we've portfolio, seen non-grocery-anchored and both last obviously It's growth in interestingly, demographic. by in assets dark been also fairly region, of encouraged about the had is and both centers. whether might this in seen what Juan, some open anchor we're where traffic But been seeing growth. actually the demand by overall over makes grocery-anchored now seeing we've traffic it by

Thank you.

You bet.

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

pipeline. Thanks I'm the for intrigued question guys. taking signed-not-opened by my

space. As you means the anchor upside increase for all in Could you here X% not in know, more Jim, is created than potential in us your actually percent valuable ABR? what of small spaces shop terms and quantify shop equal small the

Angela? Let higher. And from us get in the are of quantum, in the small specific on hitting rents shops small back of driving important to you're a shop reinvestment, the but very that occupancy is a and and terms which on point, in you benefit that we're both rate. terms

occupancy, pipeline end, our actually our a To that on is drag in-process reinvestment right.

basis points, it's to But in have occupancy shop of And of hundred we of assets a not too. That's lot benefit value And follow-on So the real mention rate. implicit, boxes, your question, in the the we're for that those assets growth several the in to huge were start impacting. we're something spreads. seeing small creating in big rent.

spreads XX%. us You're talking of about XX%, for

that, So, too. I'm excited about

that yields shopping just driving absolute of great we And portions the look shop the we're not invested, And to follow-on repositioning anchors capital that's in the touched. when repositioning small or compelling. pretty is the at what a included on originally extent you it's centers,

So…

disclosure, some rent the we GLA the good say sup, the of is point while and underscores, GLA about But think sort portfolio, page as shop in your those represents portion only total small across Yes. I and I give components our in can the do portfolio of buckets. of the of the of a the on different our the overview just but portfolio. Floris, smaller each small XX% space portfolio shop

that overall. $XX the shop versus the $XX in of portion smaller given disproportionate that for impact, has are rents portfolio small Occupancy gain certainly in a the portfolio today place even in

occupancy gain point basis portfolio the of improvement basis in foot. ABR translates XX in XXX like into per current that more So XX% our something XX point or a

the would expect the than based the portfolio. XX of higher on So composition you

Thanks Angela.

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

get many Angela. see the over in bit know portfolio? tenants coming sort quarter. quarters. Didn't upside the rent color I guess time. I a coming to on about how guess Just of that of quarters? trying really – this in prior a collection I morning. $XX your quarter. the those Hey, numbers some Good period guess change can last are the I the figure on at out provide bucket active this sort your think in to of to collectability of what was little you that trying better better next understand few in still trying I amount more just from million Maybe that just

well for this uncollected things. break for million but way. kind question, the that of report couple we for. and I'd that of the throughout say accrued say Yes, a would been $XX thanks has I that third I'd about down reserved pandemic a Samir. of the it period

number the that's collected. So to income the statement potential has positive the to be that theoretically were

percent a you uncollected. perspective. we've $XX determined collecting. would say Those If they're zero put through highly we've are break off third into written the being on that I likely We've that of of a gone a balance that probability sheet I from basically down thirds, them million, amounts process, would

that relates of third have are tenants vacated – portfolio. the that to Another

the actively lower probability clearly pursue bucket tenants to are active relates get to that We're that with So still of that the on amounts portfolio. continue is collected, to tenants one-third than of we some the outstanding. continuing million in work on prior the amounts those $XX those but all to

put a but that waiting probability, a zero third I a still then in third higher out have and we're active tenants, would a So relating of terms third on. pursuing, to probability, percent probability effectively relating tenants to again moved

would a very – the of many, the pool that today, favor. in that just no collections fully balances big granularity is out many say longer I Most terms to the chunky across it to across also those of national we're the of benefit company's been tenants resolved small have of portfolio. some pursuing. still spread the have We company's

out But to be good we maybe on, XXXX, given amounts only of stretch I some on timing is minimal. difficult remarks, much to in becoming those the as of might timing in to said It's when it's just say collections the visibility those some we expect see those the XXXX. and amounts more it more So in XXXX, would predict will it granularity. difficult I not much in even my come past pretty have

And impressive. forward. that sure the as pandemic centers, of very when our And percentages and of laid the rent the anybody, our collection total prior quality has goes think it that But and about amounts. think leases, as the we during is the making I and the team the pretty something, of look you it's well declining it those drive benefit achieved, period frankly period that this up we and quality to against Angela of collection focus stacks the I company of is out think

prior period pay other but So some of that of remarks prior said I'm of frankly real cetera been to fully finally I that. pleased Angela we've has collection in we the to cash with the in in some Angela as flow the years. being her the as moderate the to benefit earlier period those And that strength et those amounts, to think deferrals, we're significantly to expect able and coming able moving the tendency of alluded of capture, side

that watch Clearly I leasing Got is it. maybe year, list And switching thanks perspective. to a right? next for for the the here from just Jim. guess strong pipeline color, over

whether there's or just guess the You talked noise see, sort fallout it's clearly about level But of some retailers. understand boxes of the in I'm shop the frame the I help pending some S&O about which what could us sort you pipeline. main news everybody of in year right in of about focus the for of growth XXXX, to light think puts next is out trying takes a slowdown? for much. as and so sort we been Thanks

coming the quarters. tenants that to to as those Yes. list and we And What we're them have on we our watch us as wouldn't would tried recapture level have to. we're as at expect question, prepared we anybody any we to and our closely the and opportunities doing reducing surprise normalized it in exposure it and you tenants disruption where we space, watching to look out look lay returning tenant more remarks at a I really appreciate of

incorporated more matters, of positioned I who's think see to which our if basis an rent to important and have outlook, perform, this normalization we tenant well a consider we into do is thing is disruption, and expect where fully right?

look that on and in-place buying around, we look not we're when and So lot have, the the rents we at rents. at capital, we've you of been these discipline a you signing you where at look new have rooms rents,

in, and of reinvestment as logical grow also nature a look how cumulative continue for And and grow plan think we're we And choppier. again us positions in a assume, just as plan go takes have we're exercise how like, really think I demand through and impact beyond. we good that's to the you as it's and we pleased of the will it's puts So of to I with XXXX this understanding positioned into an the it think this but and environment such to to the I one one high shine. we're to all-weather

Thanks so much, Jim.

You bet.

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

good there. down morning Hey

know balance in maybe Samir's to it rents guys and be of some normalization, the guidance, headwind from that just our not XXX going should the you the but not I thinking a the things specific of like basis and guys credit you to were can Angela, so exposure, year. go normalized So back sheet, XX in about XXXX really line comments in point basis but maybe floating have asking on dollar that's loss. also, but then point or There's too I rate pretty models paid you worried discussed sounds through – Jim's XXX about XXXX? amounts this updating we're absolutely – if we continuing and good that think thinking are as on on tenant that maybe sorry, don't for questioning, a range,

remarks, part for most which things I the few my we mentioned, just mean, articulated. prepared and to the Alex, I go Yes. back I think just you

period I to think The it is thing first of XXXX about to relates really out think collection. the as

As so that's also will expense. a we points any between mentioned, like and as XXX to year been absolutely said of that in as something to basis year, of total it's levels. expect I reiterated to that seen mindful remarks, historical well, out period total revenue; deduct headwind Jim We've next bad of. about you to in look on in heard for somewhere and be I million XXXX my act of $XX rate of bad year-to-date and growth And XX XX total based average revenues debt our has in historical debt run XXX collections.

good extend the maturities to any to across anybody shape expecting positive – has utilize you today. this statement. in We're off a income period in balance two-year collections, is the But mentioned forward. to million balance We remarks, That's that point prior of and duration absence The have coming period XXXX. of – be until June of going debt mentioned been something obviously to continue term-loan continue delay don't $XXX deemed the prepared a revenues have at draw also really in I sheet, may should where uncollectible very continue as XXXX sheet. my we not we

things are And some think about. to so the of those

full how we to emphasize the be? we in of earlier, the as picture fourth regardless strong what portfolio think I quarter, talked guidance used growth would really looks complete like the fundamental when give about just the I of

implies to range. contribution for year, of base of basis at this rent the As portfolio last the That's points. basis we're guidance relative mark talking the high water from XXX the midpoint kind property the point same of XXX

current of tenant can we're of look and certainly activity So on very into level have the growth still putting amount comments, year environment this growth. support the we in while a up fallout based normalized disruptive his more prior underscored seeing strength XXXX, top Jim in minimal of demand the based leasing we strong had line as the on as

Okay.

clear two two, the catch are our real two – XX this is bps up the from Angela, So be considering normalized right? model back year million then right? credit, only $XX XXX you just bad the only ones, just should we COVID big things got that that Those to pay, the in rents and be of to that

Yes. we've at That's all this highlighted Alex. time,

Okay.

this We question about for their of that after just peers capitalizing a e-com COVID. some Second last hear a you mile not shift whether of to hear dollars it's re-engaging where evidence be e-com and on shopping Finnegan. more store seen anecdotes but during focused fleets give only actually it'd retailers just some so they sort conceptually, real material on just examples the need that you've from and realizing decade have relocations great shopping are of the Can or is lot tangible we one-offs? focus people Brian stores or to you of after at resurgence from centers retailers to that

Yes. Sure, question. Alex. It's a great

now of on it. saw We've calls the with Wal-Mart start you'd store their center those smaller a first the said of Ulta instance, XX% is they're they are start of store vast junior for they allow where distributing, their their looking retailers who like the you flowing to the from stores, of you do. taking for see calls taking that fulfillment at a what do pandemic, think portion too, boxes that's that's said coming thing I target And is that curbside the the multiple amount and down some stores are last doing orders and same now mile prior portion on of about at just of into pickup. talked an retailers for

having out taking it most expensive Prior the to both with retailers interacting it's had the customer, by we pickups. curbside the grocers, wider the store, a in mostly they're the of pandemic, and where of delivery part format large now range

traffic right? we're it retailers flexibility stores. the seen as be floor And in you're And and the that area to sales for of really format, well continuing the investment really seeing seeing as driven of I just to us stores the terms think though and that's flexible. of it's for But those mile. think being junior So last anchor encouraging the that to points of their utilizing space I small where think their shop some just in we've portion is retailers, it in, who's a I Ulta, like it

Thanks.

from Mailman proceed Please Citi. Our question. your with next question is Craig with

you little I know a flowing about a incremental type think of wanted million when that up that the kind we on I some a $XX the store it's bit perspective, just the Just from of pipeline, up be Angela, but on of sense year, how just of give ABR model? or should color for a like in just to XXXX, timing sequentially commences can follow the through time-related progression.

Yes.

XXXX. you this look I it would it's first at As At to total it half commencements, in point be. expect as so in pretty $XX million weighted the XXXX is

you'll the pipeline $XX early in half As but the to, added of leases year. see existing be of in pretty second in and quarter million fourth it's XXXX, weighted half first we number the that to continue the to continue sign that to

that's Okay, helpful.

about Probably the first million to $XX in $XX half. million

and I that, again think the minimum know X% Okay. growth but guys rent doing guidance, this XXXX range. I X% of think of aren't If we you about you year talked for kind to

not year, assigned that maintain to be kind able already bucket? were the how of you next much what of you would for have even If occupied level that guys bag given in

Yes.

a of to tough answer. question think I it's bit a

things. give on commence sign, visibility we total Where the depend other is on like the we really pool. going end up good things activity, to think disruption, out in tenant but I not move all

would I as described high as it's waiting overall. at this answer, sign, think of certainly, size really in commence a a but in The hard pool. we for think the well reiterate timing to growth think that been I bodes the year, bit in I as XXXX, just XXXX any is total I of question the So but point little not that and

it And of good confidence. a gives bit us

to good we're forward liking business we're activity. the We've to on build pipeline. most already, our a tenant speculative be in done seeing momentum not position counting how into which we in year, of continue demand As look significant and always is next and we're

good pretty feel we So we're how about positioned.

kind the we just get then and mean local trying local is lot bucket a much tenants, And the sense revenue multiple I base of single in the may have operator XX% of helpful. kind people? how on that a different kind but like things local earlier lot about of case, that That’s weaken. of unit of Okay. economy one versus guys a guess lean kind to of who of to just kind of from curiosity, talked call a does of real because the credit a little to bit local more of profile I'm different units

up. out mix out It's spaces. in taking what about Yes. underwriting restaurant in to And were there advantage of then in and that of some to to also teams of move Angela's operators are vacancies kind an bit point finance things where is Brian. we've really ready This tighten I our that of of and continued terms see calls is environment operators partnered group strong or were would some built prior multi-unit there some a pandemic, coming a we talked because standards, our on with the leasing

that mix act like communities help center and is perspective, in profile really alluded depth have. credit our earlier that centers today, the as that They're merchandising as really the we and local call, centers. of local but that excited quality better our make really national anchors businesses – help a serve. we cultivate a So to help they those Jim unique about us the a mini kind tenants both we're I'd and the of much And to of say those from to

lot tenant the those have right do base teams that I'd So with finance the has leasing lot don is much a our to say a doing local work stronger the it deals. do it overall side – both has on and and to our

you. Thank Great,

is with with Securities. Our question. Please your question from Kim next proceed Bin Truist Ki

out morning there. Good Thanks.

So data and on of how the are bad little does the call looking demand trying after versus like I feel might balance that big it lot concerns the good Jim, think probably shift? this to backwards couple That's bit question. us some a points, a be of a does results macro more

if points go future demand, basket of do how leasing So a to the those conversations you collective of kind think when at now start you little conversations are, having resilient south further? for bit that you're look macro data

incredibly be the tenants you and things to we're And of stretch interesting working well store know that openings as resilient. XXXX It's Ki now is beyond. Bin with into on proven one

the we So tenants are everybody year. in far pretty see some coming understanding planning may the does as that forward disruption

the virtually stores appreciate things I that's more Ki profitable incredibly their There's the I a that's Bin, for to true. And think one think important no proven part of of that that's for demand supportive serve to news very are other be is against versus supply customer landlords. their key and these fundamental tenants supply. backdrop the to and plans only environments, it's

it have regional I we remain and in tenants and the alike breadth a to the national, the drive calls by as of talked to us depth demand, encouraged puts position as that rate. continue of and landlord So and as local we it very about that with meetings

been seen capital on but to around tenant in it allocation. what think Even we've exacting willing on that part where standards terms while discipline all-weather don't for It's of demand. done is our of be haven't with confident it, and prepared So to we're our date to we've going recycling. environment. to part we've of an I fall capital next the we certainly pretty harvest be how results quarters. to several what's done a of are I is factor sets ourselves us always yet up over in we've It's also the see benefits moderation what important appreciate the

how So our perform again particularly on we're positioned we're to I positioned. how like given like relative rent. basis, a I

picture of demand demand our The remains favors asset strength supply really the really the So robust. tenant class.

remain we program portfolio. value and to a continue the transforming strong elevated, particular in and levels reinvestment added from traffic Our are benefiting that's

are expecting second within from we closures you portfolio of merger the type any question. And and your store should that What expect? Albertson's Okay. Kroger's and

hey, Look be Brian. this this is a is Ki going to Bin, long process.

performing with I companies regulatory Texas, California, got those the well retailers. fleets. XXXX. that like process they both have to would given say and Great, go of themselves Southern Kroger both Denver. just southeast throughout locations I places There's have about to a strong that the really big We've our early think we through. great partnerships Albertson's feel

And in very have Midwest. as on a of in call have lowest have strong sector portfolio the mentioned, some you these two the Kroger the We overlaps of companies. the of we one

really to innings monitor So And about that continue our are for we that. something but it's we no and we'll really feel outcome watching good matter early the closely fleets.

And by that's productivity stores. of the been these

low we are So have strong. only very store numbers overlap, our not sales

does what that low And mean? overlap

portfolio have on has. required a a productivity but a given our combination divestitures each look that that you and absolute basis time what you take the both ahead within – other consider strategy play from do Well number be five there's stores to with the given said, mile either how this to at terms positioned chains in as they of as as closures two like potential want of the road competing the or is If of what regulatory store may we're Brian the by impacted as well as perspective. a radius stores overlap out, long degree we will an relative of stores limited basis the

Thank guys. Okay. you

bet. You

question J.P. your with next Our is Mike question. Mueller from proceed Please with Morgan.

you funding I and the sheet be market Yes. stock don't price? scenario you Hi and Angela, sketchy about, next in a wondering, how through the your think still I may balance you like leverage and guess was walk where year disposition redevelopments can

cash bit that on for of cash as our leverage we that with XXX% fund thanks given execute flow of flow substantially down If a amount to question. basis. and based on would can reducing free funded say activity debt-to-EBITDA comes use the the little free significant redevelopment it's we a that we Mike, flow. incremental I cash we leverage Sure. of program Yes. continue on free generate,

efforts market sort we're portfolio to we're attractive not, the of continuing X% earlier, not generate So to very incremental market those to of and terms mentioned beholden XX% Jim in returns. the really disposition the or as public equity transformation fund

it. Got

Okay. you. Thank

Please with Our Street. next question. Paulina your is from Rojas Green question proceed with

morning. Good

in How on I'm your I the new for box the trying net during XX have much that And average basis? around know number foot. disclosure... some to for a last can behind you disclosure months, see of $XX that leases square the I back current sense lower ABR environment. CapEx being getting after anchor a is have a effective Good economics morning.

It the depends on to on depends it plan fill. – back

be the capital be And it's would really dividing what this your required. bucks basis a because you're spreads you're per in to it take and cover for in those and tenure does capital you your a junior couple much it's rents the a important we show a of does foot. anchored So more is bring consistent basis take can tenants net is be If and Paulina capital are. new if that's a going divide foot rent question situation back capital and It of significant a the use, part your what that where can box the to box, rent? a tenant effective over coming two

effective rent the have the rent higher, that's coming net you to you're on new you're that's basis be positive, off or ability a so when And $X, a with dealing $X, not a $XX to ROI. mention and $XX

repurposing are we've a delivered box. rents disclosing box for reinvestment as effective whether depends every not our show value of really you it the litmus then And the creating terms we're what So and net in do you the or show we activity. we returns addition quarter I itself. test What that what on us of the in in to across that's we think, our

CapEx much today? split the you the to say in where another a How scenario use in worst-case and you is would box need maybe bring

Again it depends.

a you're on $XX what with you foot, spend $XX foot, foot doing could could a You box. the depending $XX more a even spend

a be coming can you're If use, similar you below that. with back

we could you're is at dividing that say and decision maximize range. reinvestment right making end you but the that again taking a that with that a we to those that shop, is believe by large you. to to as you're And and what box to be in yields going what comes do up, for we box think be of is If small center, going the through the also upper the you're that driven what ROI box show

you question, strip know have for perceive And you. near the can how you on perceive, expensive or today? the expirations about but I then financing how Thank no center you term, actually CMBS talk you last in restrictive bank

it's no, interesting. Well,

but base and the to to right other respect in that we're think going clearly with through what's with only happening levels spreads. thing normalcy the you respect Paulina a the importantly is I markets yet. have capital have constrained also now going Not rate, is don't reset, I think liquidity. And found on

environment, of pretty So have terms you have many lenders work or itself where assets. pulled in private they on have recapitalize, that I will low capital rates do back and that even high maturities who've take landlords reliant of it's interest been think debt debt perhaps refinance to in through. upcoming providing debt that capital you who equity cost have do, But out

tenant a the interest the a some boxes, the national that's as demand, That's to with do and to our it. to capitalize rate on higher in where going and ability to record liquidity so, access And advantages and think present we interesting understanding opportunities maturities as reposition environment. to platform those to importantly track come also redevelop

So we're we're like it that potential We're period. the the about a happen, cyclical of this out pounding opportunity and excited it attractive will setting up disruption. for to redeployment not coming but table saying absolutely me feels for very

you. Thank

bet. You

with from Suisse. next Credit is Our your proceed with Please Tayo Okusanya question question.

Good morning.

Hi. morning. Good

have very signals curious before you back for rates you guys. am earlier feel cost it more the cap XXX better about of put of sense on Thanks are more a up looking acquisitions basis but kind of you what the on call. don't Is the just still of earnings emphasize need Just my I points? of more points, taking up what it morning of Is of horse? get confident you you capital? make market? outlook, for would your transactions kind know XXX guys kind strong backing a feeling I you – curious basis you to Good what that

achieve bit where also but important than see to is even ROI or capital as more both that you attractive cap settling returns cost of is out, even One one unlevered you're in. cap the very to and think perhaps such those truly a we're to it's environment I of important opportunities grow little want things. equally rate an rate finding in

evolves. way become now it a the do to So as going think is perspective. transition opportunities think to our clear and patient a I just move from market because right will to we're in I period think I thing the are wise be return

back in that center what in regards years equals of round discussed to a it. another a Got with NAV, trading the then of And what ago saw are curious of of to you're some seeing your consolidation kind the of in merger that shopping lot regards industry as happened few just they then? just thoughts still the

in It's and we certainly happens or could benefits me, in to combining cycles that landlords we with in with scale such dealing tenants. part dealing having there's see platforms excuse certainly because as something in have

some of I platforms or some we'll don't that efficiency but amongst see. or the liquidity see you the could smaller have consolidation particularly So that scale additional think

often that's and quite occur as something predicted. it's think I doesn't as it's predicted often

you. Thank Great.

you, Tayo. Thank

Please Barclays. next of Powell proceed question Our Anthony question. from with your comes line with the

quarters? a authorization that I morning. share priorities repurchase comment and your good several and next the you Could in question. slightly how expanded the in similar do on could Hi, renewed have rank

most decisions. to capital We're the always make trying and best appropriate allocation

highlighted it believe gives for tools Angela those in really have to shelf a our us forward. but tool Not it, the pack to us every use battery as as as her necessary so remarks, going think or and embedded use before, here group. statement with to available growth peer our the And drive other that which highlighted we the that what have by is what's Angela is an of top growth again a in But going we driven appreciate as own, we that deliver think can towards we want always we move to a we self-funded we're important I enterprise. that not generated assets is tools plan opportunities the to

that attractively that by markets We a availability dispositions. priced it's point we think as or time It's that. acquisitions a on flow – weather, basis. like of attractively driven funded dependent in the and might highlighted at like a not the and priced Angela all capital it's cash control again We we where that de-leveraging plan particular be is by or opportunities leveraged free upon

six think been situations opportunistic like So that. value. into last we've will we years and, capital we that demonstrated be think with we those over this the really we, part as plus But team and step of shareholder I we've enhance long-term that

Thanks.

centers staffed like and the do distillate? at think market levels staffed? your of more one knowledge, quarters or in trended opening store maybe And the help you So that looser stores how to do a is year next the are the few your staffing labor appropriately of fully best across the most how should maybe labor

Brian. is This We've Yes. that improve bit. seen a

Retailers openings on didn't stores open think a stabilize out. work want would market be that they're think those with focused outside focused stores entire about I the staffed. but There with very we've and getting that close our were to they Thanksgiving, the to this our but of those where incredibly quarters, think retail discussions getting it's ahead on bit. working was store open I something fully in windows and that holidays retailers, periods really blackout here what I over the past are few very excited In having grappling those seen partners, stores – and those get pushing out even typically year.

So we've that on certainly focus stores seen from signal of a this of retail I our think that partners improve, lot open year. a getting is and that those good

Thank Right. you.

you. Thank

Lizzy with Our of question. proceed with next is from Doykan America. Bank Please your question

the muted? turn you with like our Slater At back reached question-and-answer time You're to over for Stacy this the are call We've speakers, of session. Okay, closing end disconnected. comments. she live I'd the to

forward seeing to look NAREIT. many We you of everyone. at Thanks

concludes conference. This today's

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