Brixmor Property (BRX) 14 Feb 232022 Q4 Earnings call transcript

Greetings and welcome to Brixmor Property Group Incorporated Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference being recorded.

It is now my pleasure to introduce your host, Stacy Slater, Senior Vice President, Investor Relations and Capital Markets. begin. may you you, Thank

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

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

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

good everyone. Thanks, Stacy and morning,

for a XX%, foot average record million Our an add per transformative the feet lease impacts, results strength of plan. that of year the team XXX,XXX this value the portfolio new quarter to cash during for signed XX%. and $XX spread importantly another new rent our $XX.XX. Consider Bringing once at of an The to total at deliver. of ABR our new our example again quarter demonstrate in average continues spread and square quality our the average we of execution a of leases record

powerful of reflect a leases also reinvestment which We basis the drag achieved points associated with billing and reflects a XXX build projects. activity. occupancy which of Both as total does and leased XX.X% to record portfolio, these we a our a those reinvestment tailwinds, spread commence reflect XXX deliver occupancy for basis points of those

a execute run small add portfolio has but value continued per the for we strategy, which we ABR our to as portfolio more demonstrating growth that our given basis. and We shop progress, to leased record our our continued room of foot of overall record also achieved occupancy a opportunity for also $XX.XX, attractive XX.X%, drove

bringing Ross, Ulta, like share core centers new And Fresh Below, we 'XX Market, leading drive traffic market Five throughout openings continue to AAA, store concepts the Burlington, like Starbucks of and Yardbird, Freepeople. will our drive HomeGoods, with to portfolio tenants also of Social, that to Bark new

once our is and NOI From phenomenal and respectively. team growth delivered Simply for same capitalizing the with X.X% a revenue FFO again perspective, strong on sector and growth store tenant located the centers. by job our well Brian of top teams bottom-line, demand X.X% leasing

at returns. better capitalize tenant Importantly, demand low rent tenants on bring-in to we space leveraged pays watchlist our Where rents. accretive this tenants at we've also can better from recapture

This is a critical point.

in basis substantial delivering beyond, to rent creation. low while 'XX in our retailers value Our demand and outperform and also centers, thriving from to located us be positions the well

pause I Let through. here, coming me am

Okay.

retailers and the at with already LOI X all or anchor spreads X small-shop expect We Bed and For of HomeGoods boxes close. XX%. to close example, control to Bath boxes class our specialty have X we Bath grocery least Bed average at of Harmon two of anchor locations off-price in best-in X on

$XX.XX rents Our of favorably take which to per-foot, in-place to control have remaining Bath them. average Bed mid-teens very boxes the we achieve, buybuy and an Baby expect of we anchor as compares rent

visibility several next These commence will pipeline. $XX.X as signed annual even discuss after and in further. over growth embedded revenue in the quarters and beyond, million base million Angela rent $XX have pipelines assumed revenue 'XX will tremendous new our on that ABR in robust in will provide additional that forward we an our Looking-forward, the us guidance Angela of leasing bankruptcy detail, impacts

Importantly, the as sector levels growth momentum top perspective, grow rents, Simply in a we an for to continue put, naturally NOI we from to million will and at 'XX while the top normalized NOI $XX be sector, space. of debt. strong and this FFO top-line to declining pace all allow recapture continuing create the collections long-term bad well-positioned us the at of value with more even continue and are in FFO prior-period of to to headwinds which

From redev during the teams construction stabilizations quarter, million the XX delivered at a average projects of standpoint, incremental year total reinvestment our return XX%. to another Billhigh an bringing $XXX and during our

higher We of benefits value centers are creating with we tremendous and additional do here the rates follow-on impacted. follow-on as leasing at the occupancy

of that and of $XXX another underway return in assets pipeline in million billion control at forward exists projects creating even importantly we have a incremental an X%, In value higher-rate that over $X environment. in a pre-leased and we reinvestment, today. of Importantly, own

in that will be Ranch Center bringing California. Lakes Naples, Riverside, Florida this year great Palm at excited projects of Market outside the Miami, shops are in and Town online, We like Center Vail

$XXX to profitable cap capital team in markets highly disrupted a in recycling 'XX Closing shops continue the dispositions Park College Mark which of execute student sale developer. rates, housing capital on of Campus to in and included Village at well, million a From even environment. standpoint, attractive

We redeployed that core with million upside into of acquisitions capital $XXX markets. our in

our execute these value-add strength of leverage acquisitions and the rents in upside strategy our our pipeline, forward platform. reinvestment to we as addition market, feed also In versus

debt perspective to enjoy our to continue on flexibility from a attractive to requirements. reliance grow re-tenanting excuse to opportunities our earlier continue pre-pay From face as fund an sheet without and capital acquisition Under balance some maturities core leadership, maximum the do in all perspective, and strategy external Angela's see decisions, growth our we markets, the while to from 'XX we markets, maturities. me, volatile 'XX to private - owners growth benefiting expect continue

continue able drive opportunities growth next we however, to today. to value-creation we us that through in as control the to Expect years own for several and remain are outperformance disciplined and

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

Thanks, Jim and good morning.

$X.XX rent continues I'm growth and NOI report the reinvestment growth continue contributing to to same-property the pleased share quarter. this to on fourth-quarter, NAREIT stage our strong and on XXX for driven FFO accelerate, very NOI XXXX, we by value-enhancing as set growth growth X.X%. Base to in conclusion a deliver long-term to basis-points of was same-property per value-creation. program

a modifications significant growth rent acceleration basis-points, in XXX lease a re-leasing other of Ancillary impact rent in due driven XX contributed and occupancy and and income build percentage representing from the occupancy certain quarter, a to base abatements, and build spreads. positive growth recoverability Excluding reimbursements basis-points fourth-quarter combined last on by XXX contributed basis-points, and net expenses. improvements basis, of rents while basis-point contributed XX strong expense

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

up the portfolio. sequentially was to and of leasing portfolio. despite strength occupancy transformation to XX.X%, XX basis-points occupancy Our was basis-points continuing up macro leased for the of the environment, while reflect our sequentially XX.X%, successful XX operational to our headwinds Build metrics a continue current record-high

basis-points the reflecting leased small-shop up record. or rate leased year-over-year rate basis-points was XX XXX while to to new portfolio sequentially XX.X%, anchor sequentially up of XX another was The basis-points XX.X%,

million additional includes occupancy The yet annualized an between The ended quarter. million. is XXX commenced spread $XX leases pool totaled at $XX rent space and up which this since tenants soon despite last not size build sign approximately existing commencement but and by pool, GLA period of to of quarter, of $X vacated base basis-points million XX approximately lease the be related the the the will representing total that basis-points of

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

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

our to by contribution from of revenues deemed significant uncollectible. a from basis offset outlook, growth XXXX forward range NOI to of we X.X% for have guidance XXX at a base rents, detraction X.X%, point XXX of terms In introduced same-property comprised

revenues total expect revenues, We of uncollectible XXX recognized the historical which with XXXX deemed estimate during during amount year. amount of we run-rate. modest will the basis-points is reflects our points out-of-period to the that in-line to realize collections assumption basis total XX This of

line-item this of the the XXXX in basis-point XXX from same-property the of in a or The low-end of growth at basis-point high-end detraction at the XXX result NOI will range range. normalization detraction

again becomes As deemed uncollectible the in income XXXX. revenues with in expense XXXX, once associated

address recently-announced normal-course anticipated primarily net deemed addition basis-points reflects guidance midpoint portfolio, approximately our rent assumptions revenues issues to also in reimbursements. base for for or our activity, uncollectible, of expense the reflected which drag same-property of In and across related our is to expectations which range credit XXX bankruptcy the

occurred Of struggling this the impact lease filing. ahead recapturing to date proactively known retailers have are XX to we amount, likely events, locations that of basis-points rejections and including of relates that a from

significant potential While providing the us our within to absorb future additional assumptions basis-points events, capacity about range. relates disruption with tenant remaining XX to

transformation underscores base and XXX to bankruptcy to with ability rent forward the year from pipeline, but and a of of over growth basis-point not base XXX points XXX the importance of in from of Our our signed yet source growth success a deliver as contribution activity, portfolio commenced rent a basis momentum. our impact

to also FFO $X.XX NAREIT $X.XX range have introduced of XXXX, guidance at share. We per diluted for a

term-loan balance April continue our $XXX Our the guidance million to extend at of delayed-draw the of of duration assumes utilization the a end sheet. to

at we fixed-rate X.XX% which February, this the X a the of XXXX of the July XX, XXXX, swap for a loan early fixes of term-loan, so-far to a resulting delay in through X.XX%. draw entered In related term-loan, maturity May rate forward-starting from into

$X.X December debt had total X.X no we XX, a of liquidity of maturities maturity weighted-average of June billion, and XXXX. until years As

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

comes Schmidt question Please proceed. of first with Craig Bank from America. Our Instructions] [Operator

are think and acquire for the centers? normal it's going know the new to What rates do are XXXX? you expectations in fourth-quarter we long I your find you how take didn't transactions in for before anything opening cap

to to going think activity. what's take a think I going and I while, transactional it's

will ours be As remarks platforms I opportunity the really are mentioned then an rates. for capital is higher with like interest re-tenanting that two refinancing and disruption in requirements one and things, my

end of transactional activity, think above we that, the going that's raise I overall the So what saw to level at of XXXX. certainly

as And external outperformance. to business opportunistic, drive growth remarks, is, my it to we're be in our about the plan going great thing I doesn't highlighted require

into move certainly very I the allows flexibility value-add have going acquisitive. as But be to to opportunities this capacity be to there am of the that capital spots part remain So hopeful for will attractive disciplined. that the us we and we're our We in us. pick cycle,

And Great. you mean, question. you picked-up as then fourth-quarter. just activity that leasing to a the your feel about leasing do follow-up activity I XXXX? into as relative head XXXX in How actually

can and Brian quarter see a think fluctuate we're continuing and any it. team bit, great demand Yes, Brian? but to in on little strength I capitalize

Craig, mentioned, perspective. uptick We had what fourth-quarter leases and in really of And we small saw but highlighted through. productive to continue most we from activity, come quarter. number Yes, quarter a during as encouraged a with actually the the shops that the Jim nice anchor we're GLA the signed by year in retailers also was he you see our of a

pipeline if is, leases at a So where of XXXX. legal pretty encouraging out, exciting, up end more the you the it's from that actually end-of-the are a look perspective year-ago year was it so at that at from what's

portfolio, all that good of we of in for we've that gives ones terms to team tenant the the from us work year, has some tenants troubled are visibility space demand of been to demand a attract the for lot it core able of So seeing and the done. new this because

we are and really in encouraged continue we start of see fourth-quarter year. So what we the to the saw by the what at

question Capital. Please comes from our Todd KeyBanc with next proceed. Thomas And

Yes, Hi, good thanks. morning. hi,

wanted just to regard guidance, I clarify First the with to Angela.

includes into basis-points base XXX account. rent to takes XXX that the a growth XXX So basis-point that drag of

around you am uncollectible XX an to known additional budgeting basis-points basis-point events, on-top double drag? the of comment XX that right XXX I XX made level that's on-top said rejections think of basis-points so the that. move-outs to Is XX the or from of XXX XXX a basis-points lease plus I counting with revenue, and normalized of basis-points you a the

is, The XX that that would basis-points the to No, only you're in separate impact right XXX made I make clarification and the prepared on - basis-points remarks. apart, of NOI. is the my XXX I XXX bankruptcy referenced I from is

is small that, basis-points rent. net There our of a of So is piece, about of expense while base in majority in that, was the which reimbursement. majority the probably vast for XX that expectations embedded

improve break escalators within near-term? a little and lease that then, detail maybe you're in bit And the XXX Okay, XXX it the basis-points. of in that little sort this rollover you got the contribution quarter that do the was a bit continuing quarter I'm Is terms to terms again sort at elevated growth or I then it's That's you what of of more the obviously, occupancy, to from be the curious, year? out forecasting there And of in sort things, throughout just or in helpful. helpful? Just it. minimum that can you're anticipating peak guess rent would see of the X.X%. two

more generally that The for terms XXXX to a of to expect continues, as but in of during the growth let me that top-line hit Angela I'll is it reflected year. space Angela let momentum and is recapture not Now we get specific, hope and frankly peak. net assumption

in that's coming the top-line So expectation.

Yes.

just activity, range bankruptcy the out the the a activity of for over bankruptcy to expectation lot think to that within of matter trajectory and bankruptcy impact base point, significant exactly XXX a perspective. that kind that of we've embedded rent, on from of what timing of given course plays amount year of the to activity going is from a sort XXX how the I Jim's follow-up year

delivered emphasize with you step-back an gave, pieces impact. is if gave XXX though guidance I basis-points think much of number is, what midpoint is in-line additional at and What we we very basis-points the XXX in the That I about would range. the XXXX, of the with bankruptcy

the with been pulling or So on fourth-quarter have through move referenced. feel XXXX even Jim I you both as even ability number clearly we that and as start for sort the up highlighted, the out, better, we give pretty think of that better recapturing XXXX long-term year. we're trajectory space pretty we growth. about Brian It can good is that X% would line-item, I I in-line think But have the to you see, and much and to think hard really

where like sense within the Just about some for What terms there? you the or us tell of sort escalators Maybe, moving of help Okay. the in occupancy pieces the average today? of to if could a contributions? are us just get portfolio

around the positive leaves basis-points Yes, and spreads. for of impact. is the impacts by in pieces somewhere escalator Sure. you to is pieces XXX kind portfolio that between easiest contractual in you spreads re-leasing the XXX today. that basis-points, which The and and from for the today are to with probably XXX XX are offset basis-points gain, But occupancy other bumps two bankruptcy the XXX impacts quantify

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

Hi, the thanks for time.

Should not decline a in we Just us first-quarter, occupancy cadence. a if details you give but terms what's I'm guidance? hit in expectations the on last a of can be in of assumed expect you the would Todd's can if for the sure, more sense of just if kind of that year-end helpful. could you little of question range kind to seasonal 'XX, And

a potential of it's the than feel really again us into more next the that plays NOI adequately bankruptcy capture as we given in we've importantly harder bankruptcy to impact I for We a we've little terms standpoint, Yes, like base guidance say. think of recapture year. move tough activity Exactly space in how other and impacts given. of that or bit in we've from trajectory out rent guidance is

decline Jim spaces likely that we've the enthusiasm mentioned And well of on it's remarks. Bath that of bankruptcy I'll we're his as and Brian Bed let move fourth-quarter. few as the do we I there is announced there's think the expect recapturing, those for had about as sort recaptures. in Beyond spaces that some some activity touch our into already From fair seasonal to But a

as to anchor mean that these but I remarks, seen Yes, general, for we've out-of-the by so-far, to opening for particularly what spaces. have demand spreads from encouraged been spoken mentioned for, close we've are his effectively in in gate these XX%. really just Jim

that Burlington you in that plans if you of of Ross, tenants amount with store size TJX, all Sprouts demand, range, for the seeing think You're look significant Stores, store about over likes XXX a open buys. opening in range size the to just just at all the significant with openings, also

but PopShelf, the Angela's to with Five space, based split just World, you demand that space we if that plus there's Below, trajectory. start already may headwinds And space. the even the of then, have the of a long-term in demand in that the see point, the amount off we And some pipeline significant of we Skechers this year, about the for some for occupancy what's feel-good of

there's potential macro the sure retailers, terms oriented X.X macro not to seen geography direction the And of for everything pockets then diminution if more more of demand a really in services if in report Thanks. to just you've nothing any all, not? just questions goods where mean, or a and any along headed curious, then I question. strength I or if a was consumer humming or any slowdown. the by of in as is from just at it's to at

as continues the perspective, pandemic by both continue levels, We a the traffic well levels. the to over from and pre And importantly see growth format. open-air weekly of demand average to year continue demand grow. And resilience the breadth strength to impressed be the over of in we prior tenant

are the expect be time able leases, the much tenants that, the anticipating and willing recapture recapture tenants the space actually we to so have and we so then spaces. dollars LOIs to and in And should weaker from

perspective continue traffic of we from real-time, of environment healthy remains retailers. from see a demand categories So pretty I mentioned, to a us growing breadth and and as for it demand good

with The proceed. next question Truist. Kim comes from Ki Please Bin

morning. Thanks, good

- you guidance, and able G&A? to provide you Going are can to your expense guidance interest

on somewhere expense of that based mentioned our term revolver the the curves utilization probably the we - with interest an $XXX the today and we my Yes, from call for on interest it again of remarks, believe, going sort in expense delayed-draw $XXX full-year year. perspective, mentioned and loan. utilization And during are for prepared expectation where million between I to be we're million

we of spend believe, In efficiencies end G&A, with opportunities believe to able about were terms to being continuing to for will XXXX additional for look and the where G&A platform, in disciplined across we're in-line very G&A that or we XXXX, minus. plus relatively be

portfolio? your round? development pipeline down you're you've I And it about as about next And prospects the come or thinking upside yield projects you a characteristics, has for as existing Can completed the development bit. the just little compares existing talk some Okay. the mean, portfolio? to how

tenant Yes, expect as it repositions, and continues anchor projects. additional Ki a frankly you smaller of be to Bin, watchlist XXX to robust we to see. that recapture going Both a good see well exposure, - pickup to and million which we very mix should remain and confident deliveries annual in that fairly of larger we're project where projects starts as that as I'm XXX annual million

Importantly, the several next for years.

it at shadow is. in of over pipeline but it still $X our mentioned my attractive, very where I rent yields because fact, our basis frankly And are In the sits to billion today. continues remarks, grow,

to those low-double-digit expect So to the deliver in area. projects continue us high-single-digit,

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

good Angela, should disruption of basis-points we which curious that potential morning. there'll tenant watch-list to additional nine order in needs, utilizing be cushion? paying to tenants, whether understand attention I just Hi, mean, be

occurred how City. include obviously of it good couple that That already just Tuesday hesitant of basis-points to continues the out a about clear just would out by Party be would of events, a say relates morning a evolve. XX environment tenants we announcement, bankruptcies call I this had of and so their have morning's and very I'm rejection to that that to place. have rejections known example is That Yes. to any taken specifically. bankruptcy Regal

already filed those Anything from in XX that of would additional in the tenants terms have be basis-points. impact

Tuesday Bath Beyond. for to that In addition filing been of all morning, to expectations as our Bed be filed morning. tenants such this our and around And some widely reported considering which have expectations a

Okay.

seem So the and basis-points read before. about names to XX be we've

of maybe nothing of a that some thing? like So expectations, because a more closures small difficult environment from tenant economic on side

basis-point to bad activity going guidance for The drag basis-points They primarily news. recently-announced is really - deemed with widely of guidance, are base XX were really been just situation the in guidance a net debt embedded rent reimbursements related. that hitting normal-course tenant expense to XXX of uncollectible gave. bankruptcy entirely national the and is names we tenants small-shop that expense that's all XXX mentioned revenues sort anticipated in associated have be The I our our

in situations In will we've about other all range. wide a the impacts significant wouldn't of move for just year. But disruption the we've we tenant that our I And in remarks, over the that range we call. through year continue the assumed capacity what the assumed as call-out most we've I think potential addition range to been we've that really to I said move talking wide range course the just on and guidance through that prepared of may that current year. embedded is part, play-out I of got my as which within for absorb it's underscore impact names today's to evolve a

comes question next from proceed. Powell with Anthony The Barclays. Please

last on for you did year, of million And Hi, what's those the don't your best assets, good proceeds? Question are morning. uses the you about what pruning if of $XXX portfolio? further acquire dispositions, idea

part good business The and in our of which proceeds centers this value-creation. basis, what best rent attractive drives reinvesting is is growth in fundamental of that use well-located a have

core or like That's that in from and tenant growth, growth we an to opportunities have it's our and value-add. so the liquidity present find sweet-spot out. that the I'm So plays that we'll platform, same opportunities continue owners hopeful do leverage typically can the our on standpoint don't find who markets, acquisition demand how external we and that are we'll really some access our that national reinvestment have we visibility where private see really to vis-a-vis our

leverage that Expect more external standpoint. very our tremendous that's But which be back-end is, disposition But hammering, see in of sector. timing loaded, to more point growth be see. growth us we The front-end help optimistic and I I'm balanced about we expect to opportunities don't deliver by we platform. allows good we of importantly, mean, and the I us be have activity in will we seeing a what roughly which the follow be from embedded some have the is may to today, we'll keep continue us that some an a own disciplined to continue and rate what acquisition position that some growth and loaded, top as control to at to

to spreads then these And from tenants with spreads tenants conversation? how reacting the have escalators, any are terms them lease very or lease pushback as been strong, Thanks. discuss lease you

rent we sophisticated. basis. work want the pay years, space low for what beauty that's space, rent a them aren't have also a and believe to of and me, more to anymore that about much can they model in with of tenants types closely. In very And recent sales to going Well, the they're they

portfolio, highest which the years. it in seeing you're in as as in through leasing X.X work retention come it the the through rate to transformation rents, that the supply of environment, you're speaks Yes, come all the and last portfolio incredibly well in with restricted. this had And the that we've seeing the stronger the team has is done both

last particularly, And new XXX basis-points is lease So driving XX%, significant a it you amount higher. as a for up rate which we to was are seeing perspective, encouraged at close over renewal which competition those from year-ago. are we by year, spreads a look are spreads really then is space that of

of put leasing the So it's but portfolio the team the to country. has the across that rate position with work really strong great environment, a drive in also done to tenants combination really a

the I several simply and how tenant for outperformance we when focus view which demand. the context don't are basis-points team just of of think great Particularly the of the in strength you XXX on spreads, get Brian appreciate I overall, credit of assets a quarter-in And and them on doing enough the those and the and them. plan quarter-out, strength underscores the capitalizing sector job,

next from Please question The proceed. with Citi. is Craig Mailman

on but the just good the things some you discussion four. mark-to-market in give just Not there's whether to you gave Hi, here. the particular, curious couple your kind XX Could is mark-to-market I a on of XX% or what even what morning. of on us - And then, dwell guys kind total basis Bath you know of there, Number-one, sort think is. or on exposure? of Bed type it broader filing out file of the

them to back of percentage Assuming is think potentially come for a would you give non-bankruptcy or maybe do restructuring versus kind good consider them that would to filing, guys to them? What at-risk locations strong kind you of through sales, your you keep? exposure

demand we get. of rent if just every average an $XX.XX. have Well, box for which can let tremendous We've point We make this basis I me want back may. spaces these got

we exposure guidance, the real growth value. significant real while in some real within you look expect of for embedded But and timing. important most opportunity terms represents is we've drive us in I a our at think when value, to it that, cushion Now its with Bed point entirety, Bath

so about you basis, tenants that in when of replacement think signing And the mid-teens. we're $XX.XX

additional we in their, us increase better what tenants And allow of create small-shop and on to in that So as get then already into leasing bring announced existing rate. value we spreads actually benefit importantly the but consistent centers. with boxes, from our we've the follow-on

the I space, outcomes. let's of opportunity of value. have sight numbers of in of we a going we could it's through the recapture cushion potential So more create that making not and and when have in growth to point, handicapping the that drive done going terms important job to and an real-time our of which is, array team wide timing excellent But sure think handle Angela lose an for us

in growth deliver that many can 'XX, way sector. which and right, the said in be this still by is something By

is other you, one So we're space can I of just the we this hope there where space. to assure recapturing ahead I and Bed example, by and leasing mean, driving are ahead we're that get tenants Bath back activity

I No, as here. continues to pipeline of about helpful. the increase think guess, that's we spill kind

continue perspective, normalized beyond new which mean back you While like - I for of of percent that you of from for boxes from could as kind of timing and sets the a there obviously taking grow kind is SNO up portfolio kind growth disruption. ABR, a 'XX these some create can as think a -- pipeline do rate to you

you're to think kind leasing seeing to in spot-on reflects I the meaningful hence our that about it accretively accounts which And numbers, point, you year, is the hats make off early continuing impacts good anticipated pipeline of fourth-quarter But numbers 'XX. That address 'XX. a in but during recaptured as us and top-line you're even really grow and that right. think for the of national team in which our see X% it expectations bit recaptures. drag I SNO space more Right. it for you a we and a actually and little you saw talked in from and

a of those As of we full-year get deliveries. the benefit

So positioned. about how excited we're we're

those you just debt there. guys dollar of you're occupancy you are that that baking on one impactful. what's guys more a - the from in the the of leased pipeline much perspective, that What's kind are maybe, know cushion Net of kind shop, quick given more year-end one the at potential target maybe from small-shop and on seeing? some And in. bad are more record - of I How

the about some how of of that run-rate we So impact maybe versus near-term bad of debt? think portfolio should longer-term the

more our what impacted. reinvestment of we in shops the of to Angela We've and XX.X%. right its we benefit small occupancy on better will terms our rate reinvestment. the impact anchors, hit But in get that's the or is. of got follow-on run. deliver have couple better those And as part you into we centers of And room grow of make low new in can sit Over-time, than XXX at drag a you that We basis-points the pipeline, currently number the XXs. point, see

managing had delivered. to the growth great not leverage And there we're the is, reinvestment to making small-shop you're reason number. that broader for on point ROI. pull the fundamental and growth an a And right, as occupancy We're impact us the anchors drive managing I'm is And in a lever that to is level. that

look at we've $XX been when Yes, the our you signing sort portfolio its small-shop of over That's XX trailing per XX% above where months, over square-foot. leases new average. over

into over in same-property basis-point every basis-points a of NOI translates XXX contribution. small-shop So gain occupancy XXX something little

Sandler. question Please And comes the Alexander Piper Goldfarb proceed. with next from

Alex. Good morning,

question Haendel Our from next comes St.

with proceed. Please Juste Mizuho.

talk XX% Good we we assets pretty type on you basically interested can morning, think be, to of market. maybe will more price then bid-ask you'd there, And assets your hurdle we're comment need the here? active there. maybe I need But be I kind would a fourth-quarter, in to like given still transaction what what were cost-of-capital, volumes frozen out retail are the that question, guess some of out more first rate rates cap Thanks. things own, to about down guys. of new the get seeing spreads. follow-up Obviously pretty wide and you're

hurdle cost-of-capital. Our rate absolutely with up the the in increase is gone

that. latter out there here, to expect been find the remaining part only but have we're We're opportunities great of good and yield, we is, hand get-in where disciplined, grow visibility So not your being we the a we at have on able opportunity where to initial where has question. where - to disruption

can those in we seeing pricing a standpoint. Mark, what can the volume you on comment from that, area. transaction bit unlevered on, IRRs we're And little you're maybe, and to low-double-digit single, real-time the in a So if market get high

implementing flow some to of terms it's some but of buyers few over starting sellers say come market, definitely for started to-market, current weeks, liquidity requests. to the as in rate assets I'd from new continued QX, have Trades sellers and last redemption see to again limited some adjust have the Again, been we're Sure. the those in institutional environment. more both

and market. some where as liquidity, And IRRs that's some We to-market, struggling we those that just get mentioned owners unlevered our see assets the probably come drive seek. as debt tenants our platform more interesting, buy and from to those with has do who of opportunity private we more asset like seeing earlier, is Jim private to are more owners, higher that

to given we're low-point seeing cap-rate XX a where what's rates terms on to XX - But slower basis-points. that it's price clear from pinpoint me, in of the pardon assets hard clear look, where exactly there change we're things biggest it's what trading are cap on say that really have somewhat lower pricing, those the moved it's seeing that, I'd environment. is where

do progresses. seeing the we So be as some we'll opportunities better think year

expect mentioned, bit a do Jim that think, back-weighted. I to as be I

we've deals that's can I as the just for And environment can low that and parcels on Brian low Angela really first value-added released cash-flow. we we occupancy some acquisitions, Ravinia, ownership. XXs and focus this XXs and year I moved And XXX% or I'd got see on worry and our drive well-suited about of you last mentioned, acquisitions think of type Brea, our where in like past about we and out where from of add, value think progress the year Jim and we to

So see start year. we're year, slow be you think opportunities about a you'll it'll the excited but this to do

what opportunity. kind your on, address inclined do Thanks. response a and of appreciate is latter more that your you're perhaps the be follow-up include these upside, half going occupancy certainly repositioning more I or going with of was my of if question greater color of more to acquisitions to to that's focus to

type of on in. changed terms very leverage the no sitting on, guess, this So little you come I'm you you but are the focused a to question SNO in curious maybe going but deleveraging, as balance Angela, it environment. like plan - leveraged thoughts near-term the I'm I or of a here on-target - are hasn't that's assuming near-term debt maturities, your sounds rents, in you're leverage sheet mid-XXs. realize understand, I your what should on

of some there maybe get you year? and So do think you'll leverage target Thanks. next and this help is, year us when the understand what kind timing for SNO the

well changed. in why company times feel and due our a terms Sure, On the Yes, actually once we reason is six for to continuing portfolio, below-market basis, and this portfolio. achieve we level to We're now. rent big Haendel. below this a debt-to-EBITDA, leverage thanks, a that. about level in that times the to the clearly way times, we're touch our Well basis that's like work target below expectations of look-through below right X haven't six

of year not contribution the next a two sign meaningful but that that from there. or right the helping comes in is how You're pipeline continued and to over get course commenced us the contributor

But value-enhancing and I year would million as a invest program $XXX got to flow million free-cash also bit sort in fundamentally note that just a it flow just of to and the in we're deleveraging with free-cash using that that we've reinvestment pull-back $XXX little from that funding well. way of is

So continues the just the the set-up meet continued well glide of to to path well strategy execution to target. those -

as comes 'XX. of just that terms million timing, that sign the about second-half XX% of you'll are the XXXX. online the move NAR of supplemental see note at first-half and page, on the that I roughly it In we but would $XX through commenced looking provide between not do radiable we contributions in when And end by

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

two questions. quickly So

Bath similar that are that? the contemplating tenant didn't from to Angela, future bad me let pool than have lower of single re-leasing the re-leasing XX% other tenants future from and some have we Bed that Bed that talk also XX% that and tenant do that spreads want Bath problem on would generic you tenants plus this percent issues. potential seeing debt or upside those specific guess, guidance, of be potential perspective. The future about you in potential First I or prior on to the that it issues question guys are ask

is Morning today if Brian. Hi, about Angela which the Tuesday Well, think you this highlighted. Alex. just

what quarter, Below We've You and back-in space we took a the Skechers of the on rent. high-teens the we've space size look suburban that we've leases doubled Five Cincinnati, likes Barn. at signing the with Boot signed during in been and

those low basis across-the-board, from So benefit these tenants. rent particular benefit in and say I'd and rent low basis we from for we certainly with

XX%, no space So we overall about we've be be encouraged we the is been these do pretty that going to good to going by. with rents across are been feel in-line and portfolio think but every the we've where driving that pretty upside, spaces

the question, Okay, second Brian.

the be, just big out time actually of to it's reopen tenants. the the not One it's seems demand there backfill, to issues to

the space and permits, to downtime between what that there take accelerate are is out the ways the ways, of if So it one is as-is not, any space, what sort are I guess, willing tenants are any getting it et-cetera? or to building to minimize

when which have two an tenants Metro partnering alters you from we glad year, job the high done on tenant a you teams, operating lease. example point last asked fantastic of and the led got and the our than those by side. less I sign with six opened we have we really Jim in a we York operating in just New that I'm seen question mentioned because months teams in open stores terms

a HVAC the pandemic figuring bathrooms existing as And change They're out utilization think how figuring their of practice come out been so conditions, we retailers calls, so out-of-the mentioned keep but take they're we've prior have can units. on are, as seen they space prototypes, the utilize how they as-is, they best I tenants more what's where has to can existing right?

that not radically they're - as them we're in opened so they're quickly of as aligned getting doing And possible. because terms

on done from has have we negotiation some time it standpoint, lease So that perspective. the a but a some work cut-down the from time on taken front-end, certainly buildout

had a this so folks this we're already spaces able been to of. ahead representatives of tenants front thing our spaces in lot back these be is, the that understand we've particularly in other space that the ultimately when in to game. of we've those space I mean, on plan, And get had the we

job, partnering a and done tenants. the with team fantastic our really across-the-board has So

utilize are I terms think in flexibility out-of-the they're few spaces. of last some remain of going come the years of able going-forward the have things how the to to that

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

how business allocation shareholders correctly. for mean, of management Thanks this very significant of self-funding one amount capital a that I terms you've I my guys. to generating is I and provides the of just Jim value free-cash. nice done sure, question and to in your taking job things wanted make And understand

- of ancillary NOI increased XXX of your this basis-points portfolio, that of every imply think sharply. that where basis-points appears has that more basis-points reinvestment your small-shop one XXX I sure potential? One to you that occupancy it's which make that, benefits redevelopments. is go your small-shop the occupancy am correctly your room Am The be get I XXX here. growth. significant basis-points trending is that I correct curious the occupancy quite I'm small to there things here. But of upsides understand in is of another Is to - And of if on based shop XXX does would another higher, to

Yes.

of of pickup I where when And at right. forward. square-foot, contributor as important when move one just your growth think think that today at XX. significant square-foot, occupancy over upside about space but bringing you per at can at not arms small-shop mean, online overall not the $XX think the not driver what that but you we I is is, sort the commence sign I and you're how powerful over-time, per pool of of around get really sort portfolio even $XX average is a

record We upside portfolio. still we're anchor have some, anchor, below of kind remaining about for opportunity in the basis-points occupancy XXX

be been So over those four, five anchor on talked over-time, additional we've from struggling like most through to-market, primarily some about to size, the as the going about years it growth roll of recapture proactive we've three, those but call tenants. there's opportunity there, of and space the today program from still recapture next to talking rents reinvestment continuing

a several of next that in of no potential momentum question seeing to outsized benefit follow-on the rents is small-shop the occupancy that's to still significant be years. and growth, those a going and there's growth So over very we're the the but driver contributor

business is, the business a the of attractive talked small at hitting part to we centers and in reinvestments manage it's the particularly manage we're in target, why for we've And particular effect, follow-on we you're on these the flywheel of Before, about the impacted. growth. deliver occupancy, shops we anticipating before Yes, rate benefit returns, which as don't fully occupancy

Thanks.

demand as that portfolios users tenants costs your about think of in fixed they like those small-shop did one other think portion their or end It's your of rents how you rent and well. pay I One talk ability mentioned medical the other little understand of lot or Maybe, mid in occupancy into one getting bit a about can tail you more often I occupancy hard things been to up. one demand and color tenant that more what of bit as your us you in your something of feel-good little of a that bumps this for Can rents? why the of more the things seeing presume terms a we've about about and to higher you you're the that hearing than if anchor mark-to-market guys benefits there provide portfolio? your and that is -

Well.

benefit on a includes as think comment I I it users includes funnel and a the many storefront medical - the really real to Brian nicely other think times, is health basically of seeing but users, we're I this, that many continue are and customer having potential beauty, mentioned that to where realizing there in that presence it categories near and wellness lives. broaden

traffic other center it and benefit daily gives good them convenient, the to that them One one that's that visibility allows frankly one generates. from needs

we're understand breadth it's to excited users just by more - and important allows which continue that rate. to creates of So drive the to us new more competition, and impressed we be

on has complementary use before this a in become hit also centers. it us. Yes, really Jim, add, our I'd you

you the Florida quarter strong space the I have have the med tail signed seeing we're often backed been UnitedHealthcare, operators front. in often If back - on Southeast companies, this Dennis really very two by large credit good insurance about they really think are leases we active, buy, activity profiles and

very with think apparel, our type just with fitness well complementary. of And that goes massage, think you fitness then of operators the kind mix very acupuncture centers, it's apparel merchandising med-tail are about selling that chiropractic, wellness right, if users so we

space going where that traffic of We been is you just the lot national for are some users leases become would thing is, this have are been allowing our we tenant some because I had range do those users does the tenants a up Jim's going-forward. leases older them, of part other and uses our of centers, to normal in these point, see driver accommodating of with mix, The that of has looking leases where the say freeing center. of we've our older into just have in it very where type restricted go kind another

we've creating for it's happening been that more again, in So with competition pleased space overall, what's that just and space.

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

this I one front, shifting maybe and in product of happened. the Hi, seeing the always to-market that calendar guess about I'm people just Are coming And changing. terms financing anything of talk just different financing Yes. owners? you curious the with availability or on volume smaller things the for

of product many of to we're We do terms and expect more others it that owners. represent hearing of coming the of brokers alluded kind the pipelines what private in in-market, these in pre

refinance One, expect or two as to some It's to these it see the the wherewithal these tenant it backfill more things. while as requirements. really processes landlords As private spaces, weighted, do for we have driving what the right? roll-through. to we are capital a the may So well But disruption, back-end leasing of activity takes be not

but ownership. private impacts is cash distributions environment these financing, the their still get interest-rate As different, owners to more can which much

underlying do expect two we more drive forces those product. market So to

question comes proceed. from Okusanya Suisse. Please with Credit Tayo next The

morning, everyone. Good

about expecting and a any where to year? activity you you're may about talk maybe you be tenants question any more bit watch-list around on back the names? little categories Could margin, not the why Going retail last specifically talking versus particular the

us. Entertain

- entertainment? that's Regards to sorry,

are had retailers a that real can persistent merchants team great are problems. more surprises. no it's continue format. certainly. kind in known working and is weaker the coming we categories, to expect is struggling on and of The there multi-channel persistent the see with all, a but this why role thrive and well pre-lease Brian are But lot the are you to to they really that importance to thriving, in they who of of plays space back. ahead not advance, of get And only part store retailers But Yes, putting issues of more-and-more tenants central and there no their way the

it's movie and category driven. other than participants So theaters perhaps less driven more much

with The is Tsai Linda, Please question from line Jefferies. next comes Linda live. proceed. your

that. about in TIs view your Sorry What's and on versus 'XX? 'XX

look stay to mean, effective I disciplined. net going TI. competition to at but to to our use rents, We're only tenant we're drive going lower not drive rate, that

and look do some approach low, you pretty down. been, can some or I that, quarter actually think there. we important see, when rents two several But you it what that there'll we're which effective looks movement, have can So that's firm the that's sum net a quarters, be and you been here, our over high, at looks but disclosed holding see of

and you see the any impact will go extent, portfolio? then the stores, sell to your for and then grocers it some on Amazon closing Got fresh XXX, Kroger Albertson's XXX What's read-through with and stores. and

Hey, Brian. is Linda, this

were they're just in Last a great we seeing year, in a I WholeFoods drive suburban leasing they've So able great that they a the on Houston our to we add WholeFoods purchased and we announced traffic. In on Philadelphia, excited. locations we were been great of fourth-quarter, really Amazon, ours operator, traction tonne of and Chicago. the partner and we're

pleased we have new with much we overall, a and And pandemic. right, relates chain the this is we're prudent to which partnership in them there's the fresh Amazon it On WholeFoods. not look, as they Albertsons, really think publicly that the open both get then for side, Amazon the has pause, to look But Kroger announced did report. to middle of it with

said report out be in certain part is as initial early they going said divestitures the know there this. regulatory to But I'll remind closures, of just even process, this announcement was a going store a I media was a long of Kroger everybody be going regarding always and it's to there XXXX. there Albertson's is, a to number be of number

across about like you we've years. our in of been the great significantly Denver outcome Dallas, fleet at and Southern what no the feel-good great a and Atlanta portfolio, reinvested Albertson's Cincinnati, look stores we fleets both places and the matter California, over Kroger locations in fleets our is, got just if fleet and And have

to we both our be those is. reinvest a them think no So good to matter for pretty good what about feel will we again, outcome continue companies in But the merger would allow stores. fleet

I Stacy the Slater time would Thank closing you. to At like floor this comments. back to for turn over

Thank week. you and everyone have a great

teleconference. today's concludes This

lines at your have And thank your for a time. disconnect may You great participation this and you day.