Brixmor Property (BRX) 2 May 232023 Q1 Earnings call transcript

Greetings, and welcome to the Brixmor Property Group First Quarter 2023 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 is being recorded.

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

begin. may You

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

remind me may in let risks begin, that that some based future today we Before as assumptions our inherent comments our everyone and actual subject results contain are described of filings and uncertainties, to statements may forward-looking SEC and differ on certain are materially.

any today supplemental release will Also, GAAP Further to portion of update forward-looking results measures our financial of measures. measures available We statements. to earnings the regarding non-GAAP reconciliations in assume refer and our use Investor and our website. Relations disclosure are information on these obligation we certain these no of to the

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

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

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

everyone. morning, Thank and you, Stacy, good

platform delivering Our only our growing results tenant team value execution continued outstanding once our and for the most the outperformance. not demand underscore for well but proven this quarter again for importantly, centers Brixmor this positioning located of and stakeholders, the

basis, sequentially to what a in occupancy only seasonally an for a a grew not the our company but the quarter. during Highlights record level for overall also include typically in year-over-year XX% quarter is low growth that occupancy on

time XX.X%, the as small to grew record continued occupancy shop another in well, Our for which company. momentum all

leasing new spreads XX% XX% of and and respectively. renewal Our

over foot, that the remaining showing to on to a average grew renewal to have in average drive rent growth. we capital and while disciplined $XX which with $XX.XX, our place leases of room Our rate new run

recoveries even our expense operational and of growth excellence a higher standard while Our delivering tenants. to

the quarter of delivery Our delivery at another of return incremental since $XX bringing an total $XXX incremental an XX%, at began million we reinvestment during of XX% [ph]. million our

harvesting And at $XXX continues Bottom NOI well during our proud plan lower implied and of rate same-store blended our inside line, of and assets X.X% respectively. growth a durable rate. cap value-added non-core growth cap we successful with our of to of are million FFO the quarter how X.X% deliver business

disruption, within prior sector Results interest higher that face rates. compare favorably and all we I believe as collections, run the will tenant declining period

the cumulative real-time as quality our our of as execution. proving is well Brixmor the value-added portfolio Importantly, momentum of

minutes, strong continued In activity, as the then additional our will improved provide color for just demand recaptured leasing our year. a of robust on operating this on balance color and as results, our additional provide on balance outlook our tenants. space few strong liquid progress Angela from our some and guidance growing Brian will sheet, And the well

last growth, will of for $XX of the several environment visibility on focus with the we’ve in disruption that the been preparing of commenced past get which visibility the the ABR full we execution we’ve increased to quarters. months. particularly forward the like on in provides I’d year benefit that an over million for our unparalleled coming That XX begins

that pipeline, in quarters. Second, the next not a million will detail which as over adds commenced lease minute we have will signed our ABR Angela $XX commence but of several

more at believe of an And – ABR next even that LOI. million through nearly the our amount quarters, the have we we This we the cumulative leasing significant new top under of believe much growth for have several larger $XX be will even levels that activity will finally, of disruption. Third, forward leases we in of propel sector pipeline. will

underscore achieve to continue rent we spreads we the our allowing as advantage to the of competitive execute value basis, plan. unlock attractive our remember, us please And

reinvestment we a in stands higher. are on even value only momentum XXX our growing we of a leasing, also return pipeline, which driving basis of creating higher rate, lower value impacted. interest currently X% huge flywheel rate and centers the enjoy gross is at that Not leasing rates an cap several and $XXX this applied points environment, shop Importantly, small effect accretive follow incremental the million return at

deleveraging next have to capital cash years the flow without growth. several pipeline having an Simply basis reinvestment all-weather free a fund strategy markets. put, the Lastly, to we delivering our of benefit from on access for we

enjoy X.X and schedule also of very well capacity. balance debt-to-EBITDA laddered a sheet with over $X.X billion maturity a times, We strong debt

visibility Looking forward, remain sector disciplined growth. as of acquisition on opportunities our sheet borrowers as some us in refinance position balance environment I constrained importantly, interesting expect liquidity. believe and level the asset capital us top as internal But to provides with may unlock of strategy private achieving requirements always, already the growth face strong self-funded

With Brian leasing I'll that, for our more and Brian? detailed at call look the to a turn outlook. over activity

health including and that broad the in everyone. continues leading focused physical robust store tenants for yet retailer and a demand a rents. and in wellness, leasing investing capitalize service grocery, of is are The productivity supply constrained footprints, to demand portfolio of much Jim, higher space on expanding outstanding tenants range another restaurant as attracting categories. our and and on Thanks, drove off-price, operators quarter morning, to environment, We specialty good coming great our of from team their

centers. Fitness, forward. these new leases retail HomeSense, This Five outsized this as putting also demand of Bath share with transformation that this retailers as such to Body on advance demand is our capture leases at Planet PetSmart, with new & Target, space Bed also best tenant clear Chipotle, progress Barnes risk team going and The the portfolio of Bath. will and the in leveraged of overall Noble, proactively with a First position and Works. evident gate to Watch us added quarter our the great class recapture is in We've during quickly Below, improve tenants continue appeal This was of out to an

Bath end, year XX of XX we Bed locations, basis At ABR. points had representing

XX leased of As two already we Sprouts Market have tenants, Farmers control of to great locations of these HomeGoods. and today, and have

XX% leasing wellness line achieving remaining leases backfills well team leases LOIs retailers, off space in underway with that overall rents price tenant at Our out with the we the XX% in single and have in and is are the quarters. several new to that home, multiple health primarily last the been to growth in categories

our with on important locations really the XX is to and being note quickly encouraging in have recaptured which in under centers. This deals the completed strength how and particularly space, is of open speed we demonstrates days. to want executed What leases tenants in these

forward to highest navigate to in great attract we tenants rents the look we depth but not continue the great be putting by to disruption we've our the position encouraged of tenant among only As continue year, in a ever us had. to demand, to the at centers

it hand Angela Angela? of to detailed over I’ll for review more a our that, With financial results.

Brian, to tenant that Thanks to to well good XXXX disruption report to levels start a very strong volatility. and on Thanks. of pleased us respond positions macroeconomic rising and I’m morning.

per NOI of by diluted $X.XX same in growth quarter X.X%. share property Nareit FFO the was first driven

of successful our contributed environment, resulted the and occupancy levels to our growth the per transformation rent average. have strength current rent Base growth XXX in which portfolio the well points basis same NOI of property at square this growth above leasing continued foot significant quarter reflecting portfolio

and addition, basis basis XXX reimbursements and points percentage net points XX In expense respectively. rents contributed

out-of-period basis points XXX detracted collectible amounts. on to deemed of collections due primarily growth, from moderation revenues of anticipated, ongoing As property reserved NOI previously same the

total in XX.X%. rate Jim earlier, a rate XX XX.X% As increase the the by anchor small leased point to the occupancy shop to and we highlighted of a increase leased driven first point achieved leased XX%, during basis sequential XX basis a record sequential record in quarter

between build basis continued momentum of points XX occupancy resulted leased XXX spread Our in year the since up of the end. end basis and a at quarter, points leasing

XX soon of yet by or remainder space totaled be an total points to we of pool, of XXXX. million expect rent the which tenants our of vacated which not commence approximately $XX XX% GLA existing addition, base signed In commenced to rent, includes will but annualized during that related additional $XX basis million

us in future we As recent yet commenced that the and many help said, impact on and our bankruptcy rent growth. occupancy to in of of Brian to weighted stage significant while pressure result but both financial will below fully accelerate operational the expect set disruption year. as of announcements That nature retailer not allowing to Jim these also efforts our are through harvest this and pool highlighted, near-term move basis we market inherent minimize will and signed for basis the the metrics, our retailer

sheet, liquidity for in delay the the fully perspective, could Subsequent of bonds, balance inside through debt sheet maturity XXXX today. draw rate utilize our of term end, million pricing loan of with swapped times tender fixed our of to X.X $XXX where the billion. balance at we a extending From $X.X $XXX to we to issue XX% well ended debt total million and quarter rate our form XXXX quarter a bonds EBITDA liquidity of unsecured unencumbered of we new fixed unsecured

remaining year result, only of we XXXX. have through now a maturities end million As $XXX debt

rent range to NOI forward growth X.X% improved same we range. X% our outlook, for property have reimbursements the base narrowed reflecting XXXX lower the net and expense at end of terms our expectations In guidance a for to of of

our consistent for of to deemed year. for XX uncollectible remain assumptions of with full guidance points the XXX Our total previous revenues basis revenues points basis

XXXX Please the second quarter note the a than of in year, quarter creating that XXXX. higher collections for other comparison challenging were out-of-period materially quarter in second any during

the points bankruptcy same currently reimbursement. bankruptcy anticipated related may or approximately rejections of related to and In tenants additional is net to half filings while impact for disruption and of in that activity, announced addition, or remainder future midpoint related occurred which base occur bankruptcy is is of that from the XXX impact point basis the rent expense have continues to XXX range reflected from guidance reflect year-over-year property date, store potential in closures our to recently expectations Approximately XXXX. lease to during our basis

for also a We raised our XXXX, diluted $X.XX share. guidance $X.XX per have to FFO to of range Nareit a

in recent revised million recognition FFO a tender, to which will our quarter. property same gain the in guidance In of expectations result $X.X for addition extinguishment growth, on NOI the the million our also second incorporates $XXX debt revised

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

you. Thank

question. Our be Spector We a Instructions] your [Operator question will question-and-answer Jeff from conducting of with America. comes now Bank session. proceed Please first with

Jeff, on? you are

about sorry I’m that. Yes.

No worries.

the I you during acquisitions future, about I on Thank our My We you in potentially is market we on commented pricing? today? question advantage and have acquisitions. is know But little where saw any meeting. we first recently you Do bit on the guess more and a quarter. of on congratulations the taking talked opportunities given clarity

market the still transition. think is in I

has So to we flow don’t additional establish clearly enough because pressure really interest color. rates have seen upward pricing haven’t I have there’s you been Mark, moved. But of moved. if where any where know deal

well, for out there’s clear points Yes, at good since XXX I a – it’s it’s end demand basis XXXX. has probably of Pricing moved the think assets. least

spread see forward starting from So where [ph]. think sellers and we’ll perspective remain start from our slow this are better than as opportunities progresses point. to to make cautiously really to assets does But see that more here we’re the is later optimistic a your we market that pretty reward risk year. perspective, And sense is understand we’ll ask this the narrowing. bit start at market But

be Jeff, we patient, right. can And

looking And so but of lot it’s we wait at we’ll opportunistic. we are feel opportunities, a when

one center particular air you. it’s of in Okay, something a thank you whether there versus open that type region? focus is would another And or on

values. consistent It with would to drive already be done what we’ve

So and centers markets we’d the serve be we around currently today. for looking in that

at And looking additional and strategy. mark-to-market whether can add some value redevelopment, that have it’s centers we to clustering our through and reinvestment density component So continue it, importantly rents. we’re the

tightening remarks to it disruption course, seeing I forward, mentioned that requirements well my relates of the see of because tenant we’re some as expect going interesting lender in opportunities as to refinancing. We prepared as

that So, work yet. fully through seen we haven’t

does, in from be an overall ready, strategy it I us past. when be So execute think but it standpoint we’ll with will what the consistent seen you’ve

Great. you. Thank

You bet.

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

just of the you not mentioned term might Bath result the anticipate increase near Good morning. the you that just of anticipate that perhaps be recapturing and extent? little that or occupancy open expect you place. second Angela, a momentum potential do two that you pressure to you One, risk of some then I not space a there markets air Bed you throw of in maybe guess term have Hi, do as recapture questions. a Bed further but that could some in maybe perhaps decrease across that portfolio, Do in lot And near equilibrium some a the bit positive Brian, you be of to occupancy brick mortar Bath, recapturing. expect may altogether, space out as in space? from thanks. question, certain some for of to space

take Sure. occupancy the I’ll first, question Todd.

right very occupancy the point near-term expected pool. there basis And have to significant an this but over that square rank million into to course we commence perspective. signed from of this is of nature X XXX going significant several We You’re year, of under is talked that lot a just feet of out year. which commence million the feet weighted is points square about X is momentum how the not

to continue situations, very the portfolio. bankruptcy of high see rates across We retention outside

of expectations So our platforms, of the operate situations. a course post where move some we continue an some we occupancy while year and on outs through end. this believe have the liquidation the there those who Based increase over move around of outs, tenants pretty will again, healthy those in still we could or date outside year bankruptcy be pretty of to filed muted to environment the are

additional very we’ll ultimate to move on that going there versus given commenced certainly course not within higher filings position have accounted or we think be position in of our adequately to range, restructurings but terms additional be to are NOI confident comfortable question’s the activity of this for be same guidance that tailwind. an in or the any continue occupancy and I make a the in but disruption hopeful property year, impact whether and liquidations a will signed feel we’ll timing the that we’ve really feel of impact still over occupancy not very

a Todd, just are mean, dynamic, And restricted boxes years. last supply these on that been few I has market the in remember online overall Yes. that supply just incredibly the coming

two of off move coming low years record outs. We’re

that time. for of folks long on have All been filed radar have a the names

has team Our proactively marketing been these spaces.

thing other on is you’re in broadly bidding I the think the seeing space. this market retailers

boxes that we the negotiating You look at we’re leases Bad supply at spaces. look dynamic we’re ones took XX signed. And with who and out the think we’re for below to in We already at five seeing as Tuesday the morning demand all. Bath this addition the the LOIs don’t materially alters really

that off have operators for great in expanding that specialty looking have and boxes, of the You the good a that lot are in good just portfolio. really health are we boxes price, grocery segments wellness

coming pretty with we is comfortable feel the online. back where overall, supply space the So dynamic despite

you’re downtime good before getting anticipating helpful. what’s And on, tenant portion a in like question Great. spaces? just that back, space That’s of right. have rent that backfills, those to you’re the commence expecting single would be All then last you’re the that sounds you

question. of but spaces the single right our one great on now we’re a tenant All negotiating is backfills. it’s Yes,

confident see this It’s potentially So overall. pace XXXX. can year, earlier we’re the right part in online come we now and really negotiations start of XXXX we’re feel space to comfortable with in that but in

Okay, great. All Thank you. right.

comes St. question from next Our Haendel

Please Mizuho. proceed with with your question. Juste

Thanks for taking Hey, my morning. question. good

driving historically XX% norm here what’s a curious And have to maybe it for Thanks. at Angela, the expect this new perhaps? First mid-XXs. quarter? level first is a Is I you sustain? you think one expense more recovery been

we or couple experienced That recovery The bit point XX.X%. the of ratio through in the item, we to we moderate same growth things, do high the look the And be does with a a to significantly expenses the mix But recoverable. quarter to Yes, ratio more basis highly but as little of quarter of a being XX to think full going to first significantly that year. expense year for thanks point expenses that really line are and move We property range. move net in the the with full year. weighted through improvement you just by positive XX first a in has Haendel. sort do mix as over somewhere course being driven spending reimbursements average contributor different going of NOI positive but the just recovery is basis get also NOI build that significant by occupancy. efficiency contribution The is positive in increase most year to certainly the at

I just if on lot were visibility, occupancy higher physical I more but one a than higher contingent of And especially as that. is here it’s here. expecting it’s XXX clearly just the for for think at points, a snow basis could gives Thanks us bit sitting

anything I higher couple impacting that with and I’m Thanks. for quarters? guess remain what So next that that that coming occupancy over could the And over you’re curious, should that timelines next is months, months? we the regarding XX perhaps expect suggest seeing online be there to does XX to rent the similar

Yes, space That’s the well. pool of commenced but over that rent component growing quarter to and the some on more not delays small the had originally in commenced of of also pipeline rent just good some is as expected. seen, benefit and the few that reinvestment fact lease momentum first getting to because not to just of we’re signed tailwinds we up continuing of the years. the from grow than during We of because why the productivity pipeline continue leasing activity the shop vacant The you’ve commenced. continues grow last

to delays getting in to So bit with are expectations no line commenced. earlier happen. our issues note. little In continue no Things rent but a

Thanks, Haendel.

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

given the level it know I’m increased impact circle just debt. feel bit tenants less conversations backend a weighted year known on there coming one, curious of bad two, Angela, it cadence back outside distress like like, And have debt, the whether point? here. adjust kind be guys Does with you the the even be it’s could of kind same XXXX impact more little at still just any I didn’t that seasonality morning. if But good this would of you of earnings. Hey, you from progresses? maybe make in could to bankruptcies FFO an here feel the just to though maybe bad as more have

Craig. Thanks, things. No, say I’d a couple

We’re it collections from way issues anything in tenants quarter. not guidance or basis higher. rent cash seeing additional move as in relates any for would that a at any debt in the first – than little bit bad did come to that point significant our this or disputes lower the We

I that on I for just of I first full the heard, we Some was of about based wait here. range of the also, the macroeconomic the given Jim, into knew Brian the think it maintained all things just expected is as and we middle see why to move to keep which volatility, going had And guidance in year. this allude you at part the how where the things felt through point year year prudent play to, we we think it. quarter, out But the

I that In would impact we of FFO from of basis debt the XXX guidance points the remind is points basis total to just guess gave XX terms bad revenue. you I guidance,

or over expense $X course the So million take year. It’s bad dollar a amount. of $XX specific give to the that million debt translates into of

or more it up ends being So weighted, second on even would FFO. half impact the if same have backend that

just maybe And update. then Okay. an

you gestation what’s any on leasing the post under March SVB forward like terms kind with anything that periods, pipeline and in though, seen change of on front? is cadence going LOI. in well of demand, gone since Have guys Sounds

interesting that and store XXXX given given think they’ve got about continues significant remain because consumer, profitable them, also opening demand concerns nonetheless they’ve white to have have to And forward is who outlooks retailers channel I that’s contrary, some the remain Why to cautious and believe more the strong. very their Quite you to note what’s committed a for for space. pipelines. beyond,

is really dynamic So Brian our demand playing that favor. that referenced into supply

timeframes have up a of stores in to it, particularly if had quarter. anything, and the And seeing not basis good and that of that absolutely to reflecting lease question retailer I demand. think, And job open. shared when is the the from team, an XXX signed of interest deliver seeing done from and outcome really our stepping we’re the we you’re momentum LOI an that the acceleration leasing meeting those rent points And the both the get before us about we that commenced you growth consider during Brian but

focused this several general in we’re feel continuing we on optimistic the see harvest what And we very Obviously, that environment. the over next to in So remain good. industry very demand about quarters.

you. Great. Thank

You bet.

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

today morning. know see the Angela, commenced going times you’ve leverage you six to past, but on a quarter we of Hey, and to thinking experience are acquisitions that last improvement times, you’re push leverage sticking target the tailwind in the and you how signed about talked around the pipeline? given with good expect I around target six but greater about plan if development or not on should that versus

thanks that to saying portfolio informed and bit basis, over market than leverage reflect time to Yes, us our has would basis the today through on little below of continue today been the six to that a harvest the rent going some look see joined continued times, That times that platform, really since of that. one actually basis. below and [ph], in a you’re times. lower six market six does harvest fact to you’re by as moving six ability really basis I What target inside of the down is part, drips our say we we Greg.

levels. So those achieving of sort we are

year. opportunities outlook, closely heard watching we’ll and this point the and some Mark market we’re that, hopeful the I acquisition of are terms of the at half think from see Jim you’ve in the in that second

you’ve first we But point, quarter that continue in I the we’re quiet dry is powder but to raise the little through dispositions, as creating including to a pretty liquidity think can some opportunities extent us well-priced those the use this market materialize. seen at

you. like thinking guess want actually Okay. acquisition acquire I just and to for little a then what prices the you quiet the would portfolio least And and transaction market’s that recycling at at. expect we this normal for still And are course kind recycling what acquisitions the of then tagged comfortable even should to But level want with you see those guess Thank portfolio today environment disposition for about previously you on reinvestment? side you dispositions? acquire mentioned to I the without

notice did occupied made, didn’t we you’ll assets some that cap and sold terms achieve that know historically had we Well, remain see to leased IRR, but know, to terms as – only guidance but value. of opportunities. We backfilled levels activity, as were going growth we that we always you transactional we we’ve we of harvest the don’t where rates at in look in disciplined that compelling assets future highly provide whole we’re believe not to more maximized those we dispositions and

always models, team have we’re that these of find that been but some that some Mark able So ongoing your are non-core. of for truly I be to portfolio disciplined have liquidity going provide specific to reluctant be levels. think any the appreciate smaller guidance frustrating responsible assets to know will I as pruning any and encouraged for and transaction plan may always that to we’re

Okay. Thanks, Jim.

bet. You

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

Juan. Hey

Hi, good morning.

for year, to lease would balance answer the – on the or the or question the occupancy start to rate? occupancy guess build was that improvements sequential answer of Todd I you question to with follow-up Thomas’ the regards quick a Just

Build occupancy.

the change the seeing across leasing Great. could the behavior themselves the to spaces. curious still just traffic that Thanks. or are understand consumer data of in you point yourself from enthusiastic affluence regions But just consumer behavior? And if any high Anything seeing seem you’re retailers curious some is very signs levels. changing then what telling in you about underlying where maybe you, quality

We haven’t seen it yet.

looking. We’re always

it’s We’re consistent your levels the have country geography, throughout on encouraged terms that of traffic levels basis to question those the positive. about a been. in traffic pretty what And remain been year-over-year

by So we’re encouraged that.

retailers focused earlier expectations importantly space through that And but future white which focused very demand where is new on themselves be, and a their in an I some slowdown also kind terms pipelines, remain but sign looking weakness, I open the are profitable mentioned think and fact I customer encouraging as these of model to of nonetheless they think of both stores. are the they the on going to channel want retailers what is new of store as that see store

to new really as how we indexing proud when a openings, that share what is what capturing of disproportionate I’m of sort our position otherwise weigh index at would you of team suggest. are demand, look a relative our overall store we out

and Traffic any up which So by those not year-over-year, have levels are encouraged very good tailwinds. we’re we remain seen meaningful change.

Does pipeline sites that to footage could trend a pad go for maybe latest or build-outs. that, not forward seems developments drive-through you through more trying maybe on to what Thanks. of effectuate that And limit There that redevelopment assuming means. in I’m that do new a to Just the square question, amount necessarily? just greater pad think drive-throughs. a emphasis quick for a sorry. the follow-up or be requires

there you at see opportunity deliver can at bring activity, on and part tremendous across our add began, have activity. properties. Brian? our look and pads. you continue momentum to portfolio, our parked can areas every quarter have this of we we new over believe And and pad because We where we great we are of saw increase in still properties which where density exists we Many to at

great Juan, about it’s municipalities a are doing, think Yes, you And lowering if what requirements. question. right, parking they’re

having a lot as concerned space. the as take with past, of about risk in space, pads of type you these also to of you’re on receptivity you look what is at tenant visibility doing, not one up to you of that uses terms restrictions we’re were things back If tenants the at and freeing think in and they

with So as team’s entered our Chick-Fil-A, focused in great a quarter, fantastic job. which at Jim of on XX look got sites, pipeline our and Shack pipeline top out highlighted, we’ve them, this Shake our Starbucks, densifying and the likes parcel we’ve been done you Chipotle, very driving our a

Our along out and driving are our operating redevelopment, that that teams our teams parcel with program. national accounts

focus In projects forward, these the for size it’s out terms from most range. seeing parcel of that And of competition big demand within ours. standpoint, space a moving we’re a probably

those us program all that years. to see have going really strong several factors just leading out a we are for So really

And one the the as of demand generating center. pleasant we’re been has actually program the balance that surprise on

impact small those the high Chipotle we or a as center. traffic So Starbucks shop or one of Chick-Fil-A, uses, leasing throughout a on bring see positive the in we

a So it’s cycle very virtuous for us. been

Thank you.

bet. You

next Our Connor proceed Piper from Mitchell Sandler. question. question with Please your with comes

thanks for taking my Hey, question.

on I if a it’s bank at smaller of shop maybe seeing mentioned tenants, ask with are small any just the wondering, pull guess credit all? meaning of I issues caused any Following-up your differently availability upheaval the any their was earlier, back tenants little banks

And in have teams We done, talked shop you’re strength small leasing done terms as is calls it’s our what we’ve Angela’s our our haven’t, have underwriting. operators. tenancy strong about of with teams the teams franchise And remains our been. seeing fact, ever of work as in that prior credit on the really

multi-unit of operators. Jersey profile gotten that credit that, had a a tenant actually at or Mike’s look they’re stronger. somebody And You like lot typically the franchisee

the we because small and haven’t we’re a tenants stronger well. portfolio base overall, the but lot say say as that that the all a I’d attracting lot are shop work of that So broadly impact, I across just shops small we’ve any our done is stronger seen would

larger are more the And availability supply a small Okay. the the discussing fit that any you into then the shops? tenants of That’s couple and dynamic the times, helpful. given then anchor format launch declining concepts spaces, demand seeing

mean, I you mini XX,XXX to where spaces with these of looking make they’re at the square IKEA announcement Sure. they’re kind U.S., just five-year coming saw X,XXX to deals. foot kind as an [ph] showrooms

much certainly We’re Galaxy. operator house that’s XXX,XXX about their sport, who’s done foot seeing like locations their an talked Dick's smaller of with Golf like concept square

their focused market on really their backstage concepts. been Macy’s has Macy’s and by

particularly gotten are just So tenants many format. depth their to of demand flexible is tenants have and how what’s the been just with there encouraging the how expand about

square with range well. smaller foot test like XX,XXX that You’re seeing in some Ulta units tenants as out

us about availability be market And in gives our to it deeper terms in so pool think to as much tenants just total, of to. a able we just

go you’re prototype, also in to demand. smaller additional willing which tenants creates than And that seeing flexibility

the Appreciate Thanks. Okay. color.

bet. You

Caitlin Goldman with from question. Sachs. comes Burrows proceed question with next Please Our your

could Hi, types on comment buyers earlier regarding following-up good of quarter, and how the morning. were the in active? what on dispositions questions Maybe deep those pools you buyer were just

Yes, sure.

were from took we some We clearly the we well from assets a for and as could. demand grocery-anchored traded in needed we with assets pretty the disposal quarter U.S. and saw pricing mentioned, particularly for investors. strong we market regions we an in demand from for where advantage were market implied we fund strong slower saw those pricing across reach for who XXXX in all where So of certain benefited and pleased buyers inside that private on demand trade we And to we basis. where the assets, of currently, really

it. Got

the leasing one the that new in high often corresponding on is then the for The jumped isn’t And renewal spread TIs side on quarter. but leasing side, too side, renewals as leasing somewhat. did I renewals Okay. know

respect driven So hearing and in deal that mention I I that with from Angela, to their retention stay wondering, high. you wanting still just tenants was you are think is space? was a by did what to specific

Yes. got really We XX.X%. to today, what more now appreciate Brian. were things driving renewal XXXX. I year XXX doing rate, few a at the We’ve more where That’s question. highlighting this through it stay. we’ve spreads the We that tenants it’s over And in traffic, ago. it. at you at X.X Caitlin, great points that all It’s highest in which speaks look tenants continued past about got the been up better talking we’ve our want we’ve XX.X%, if over fact progress the you are in at And pointed to from portfolio to out years. it’s you been a seen is basis our hey, years. XX% retention

what we’ve to renewals. overall environment, got based So the much new drive we’ve both we’re leases overall with tenant seeing tenants in demand team’s off put better a our utilizing base stronger rate really in, of and and that

that to to encouraged and be to we on. by expect So it’s that be something continue make continue something to progress able we

Thanks.

you. You bet. Thank

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

Floris. Hey

at – low remember you’re small risk. the look and your along at actually click that portfolio, occupancy shop talk I – Hey if I will what you Jim, all a what though XX%, the is hundred boosted morning. here it’s I big your recycling. even Maybe – Presumably about your past but for capital have you’ve small I I upside here would it’s could – if it know have. me assets mean your continuing points. exact mean guys can’t think of good the is appear to give I have upside the It’s number, this if Question you you’ve to in couple have potential of – in more very redeveloped, said some some but that shop you upside the to peers still can one about levels the probably Angela relative it’s record potentials basis of

And go you portfolio again, more rents to if your are that should in anchor small double shop room your and have rents. reinvest

so that is redeveloped. on potential The the occupancy the the what small you share Can here. assets? occupancy And you assets guys shop significant upside on

occupancy So million you’ve touched you $XXX occupancy those in the level to shop the in your that small portfolio? What compared portfolio. of rest spent assets the is

occupancy to on improvement than the or where is and achieve leverage hundred very basis is, in portfolio point, a much important to importantly, standpoint. reinvestment above able we be those It’s more to overall shop tenants. occupancies there’s at rate basis you points expect continue And see where which to a those given couple Floris, But the average. we small higher another of every peers the that from XX improvement are make points projects,

to in quarter leased the and in rates new So And it occupancy continue on it end also you’re seeing that the numbers, is and and we only drive leasing. on shop we’re We improve small in out the that follow particular, in anchor which achieving you’re follow we occupancy, rate not then our records. it in the seeing of you’re set part improvement quarter seeing but effect. it flywheel also

in typically the plan, occupancy, prudent. more terms a from see that capital the And standpoint, that’s impact an run recycling consider much the of don’t we So be plan. on and that will asset where of and follow rate room we to when harvesting for

think we $XXX there’s I’m benefit really great highlighted in ROI million – shops. are it occupancy but on I and not and put substantial work, only to it’s that fully that on terms clear in we’ve glad So not it’s that’s because very driving both rate appreciated small that something you follow of the

are cetera, driving alluded in to thing also density Brian et pad we’re we that is the at sometimes highest bring opportunities. return that The other as properties which additional sites, our

part So overall strategy driving outperformance the growth. of it’s of all consistent and

importantly, and own we it’s within all what control And today.

when a a So reinvestments or it’s over we we completed the that behind $X opportunity proportion third. million when that we believe little past another have we have look on, portfolio of $XXX the And at look so the of billion actually underway, that. we’ve you

We have more to too. run room there

see out to longer now through. through kind the also it, execution. about it to way it have cumulative but it’s working coming its point to actually in talk of exciting it’s the So And impact exciting see no to finally

the or and expect we that and than part But been, XX% recovery recovery occupancy can follow as Thanks, to the ratio that guys there’s XX.X% increased abnormally sign on it’s that recoveries. I fact not at well, obviously of pipeline. that million Jim. you SNO maybe $XX upon follow-up your ABR. touched maybe that’s stabilize people they’ve where know impact And of And open, Angela, high. is of shouldn’t was higher that because through that I guess, obviously you a remind my is the which if you levels

Yes. Absolutely, Floris.

continue you a recovery contribution the see you will from in meaningful increase over build occupancy, to and time. increase continue reimbursements net expense the to As ratio

under to space sign, If it, It’s And square as like annualized those million foot, $XX.X you said, the if you at of something you assume that that at, GLA. looking $XX a feet of of you’re million look million just from additional but upside. conservatively $XX just base of commendable, call recoveries rent kind million leases. on not represents $X X

Thanks. That’s it for me.

Thank you.

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

Good Thanks. morning.

Good morning.

So markets average. Dallas has And you top XX where lower are I assets? your in than dragging the on some it’s do are they to of consider Chicago, get smaller thoughts, what but of have actually market an occupancy. XX% It’s challenges these curious these level now more you And catalysts that on markers of the rate. trying like interesting just the of or time. your the future realize just also happens within reflective your that MSAs couple your are XX% over of they lease or markets to development the are of some that some other see markets reflect in XX kind I high kind the or these have overall pipeline, the Miami that But top sense lease markets

much like and more includes market we as and leasing particular North quarters a threshold. by like in minimum us future markets have to reinvestment. coming where for we leasing about for redevelopment. Chicago, markets that our are And announce less much lower It’s occupancy which Yes. includes we Aid see driven opportunities the that continue we assets And building hit around plans you’ll have them

you So is really fuel a of future our of will part lot of pipeline. the if that vacancy

non There’s said, industry. that the another in have the in best interesting and that some of is XXX point best that you what embedded assets are and we some growers top MSAs of the

where attenuated, see tenants can demand them. opportunity see think a I upside MSA some like you Arbor, space that real for in also other supply assets lot Ann imbalance in So and who areas markets believe particularly we if will, white hide we sometimes those or of represent Michigan statistics those

of driven much occupancy. lower markets more Ki Bin in really those each it’s So a few with by assets

Okay. before even And for about retailers, troubled the I leasing curious maybe was [indiscernible]. proactive your –

do like So kind you from retailer JOANN assets Fabrics, for a if some relieve or is get lifetime, they before how limited to interest have tenants some example, if actually announced? of before those the – bankruptcy a try quickly

question. it’s great a Ki Bin,

we the one Five our watch in and this Bath. think that took proactively signed demonstrated under on really on everybody city list, with party Chicago signed Below. in rejection on Our quarter, lease laser on suburban I Bed the results it’s in bought leases We the focused asset days already a the from team back on we having XX spaces is an

You’ve the of control out of morning negotiate LOIs seeing of Tuesday proactively with some of to to we’re get the that seen tenants some gate that leases with willing and demand are the space.

focus. team’s a done our laser in fantastic their job So

actual for as waiting rents achieve, We and notice we not that announcement. understand quickly can. interest what the are bankruptcy we’re rejection we what can executing we on is, we’re as them the the or So for to understand through come the

to how the So us has team to expect that it’s and a really moving to credit continue approached forward. these do

you. Thank

you. Good question. Thank

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

Tayo. Hey,

of into of it on the in ICSC, but quarter. just Yes, just us know again, guys what buy, give a your more to about the of from usually kind you’re solid what three people still about – outlook year, ICSC of everyone. open of hearing into Congrats it’s again, people you consumer. last good this talking morning, year the a feels clients, in I going concerned anything recap versus kind you’re for whether seeing, kind lot terms different whether wondering heading weeks,

for sense a what and get you of business. seeing into to of your Just implications guys trying kind are the going it,

question. Great question. It’s a great

up We’re Attendance very ICSC. at excited. is

show, full open many look stores in beyond to in that tenants calendars today. that I few mentioned out those Our really pipelines three the stores teams out calendars we with are are for get to that their from weeks the trying looking tenants as to XXXX have of set last full and XXXX with looking

our to fantastic job a terms being more have space. that us really bringing with And assigned to tenants for of are the sets up a which continuing this for and It’s team us, out, of meetings. look their we want lining teams proactive to And that retailers year. that up does is great grow. of So are conference a in they’re meetings

it. about excited very we’re So

know be ahead the the that numbers, just is is pace. year-over-year. of We’ll up but highlight expected And I’ll final meaningfully already made Yes. point attendance is Brian pretty ICSC

you. Interesting. Thank

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

Percentage bit were higher a quarter. rents modeling the throughout item morning. What’s for we line the good year? that outlook the Hi, in than were

There the different we are just when sales recognized. of expect positive get terms that not is be full Yes. of when from tenants do in contributor to percentage but for reports timing year, gave issues was XX last We it that rents quarter, and expense slight basis income to number material overly we and reimbursements is for guidance XX to points. basis points. baked now more into in property net That like NOI was the our other same bucket which XX zero a

Thanks. it. Got

with strong one on the in the maybe bumps you’re guess, more annual lease spreads, also I So seeing, new you that higher are signing? rent basis your leases

rent but exceeding our that at to are we’ve rent is on, – – they this We and are bumps the small the focused a there. we laser annual our rents rents progress initial deals bumps year something term ago. rate We on portfolio, quarter. highest levels at shops over of signed we literally initial growth a quarter our XXX% that ever have that the have job of make rate, is Brian. in highest growing not ever which the this signing our average focused are where team done great It’s just the are We we had continuing this been rent and were – team’s

you. thank Alright,

you. Thank

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

Hi. Yes.

that I or And specific of you buyer those cash assets, about a on the the first growth. follow-up, the as quick a buyers just or or quarter levered attributes? pool? assets the market more any then were described was dispositions buyers had curious bit little And was is color I just low the buyers think being

the that to but asset pool, what the asset I’ll my let done reflects really saw growth grow Mark more to comment assessment on asset going the we space really and lower to we as leasing buyer that comment by backfill ability had forward. around

more a about much less market asset So the particular. in about call,

were you for financing quarter of attractiveness all look open-air the the using you’re on that one So trade at buyers and to overall overall, in when dealt costs cash leverage are that dealt replacement you in I perspective, with we lenders growth. and have asset you leverage given below think base – potential generate flows continue [indiscernible] buyer that have for who lower did from demand well buyers with From see the assets we retail, bank an a We buyers quarter. the earlier who leverage some cash were strong

retail demand So you finance to to strong continue see open-air relatively today.

Got it.

Thank Okay. you.

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

would have the again leaning retailers if the of leverage curious the characterize private of fear so represent of were – have I combo one quickly. could And of increased and – industry even I’m presence equity this morning. you Good question. and owned rates in you niche the them unusual usually risk, current how on your environment so sort a today? much

Yes.

been of I the our raise about leverage headwinds but profile think you’re eyes to debt have of the not pocket certainly of we’re companies, backed that really to right there as fixed some companies sort withstand now. equity private just room some and not and right one on. has particular keeping risk whether it’s It’s or

eye really keeping on that are So all backed times those PE at factors, at all but of leverage. the those high course throughout of we and an we cycle, always the platforms look are

Thank you.

Thank you.

proceed Please with from Our Jefferies. Tsai next your question with comes Linda question.

can Hi, comparability XXXX? out collections the of quick you impact will impact just the remind us Angela, ones. period XQ that two of of

amount the $X million $XX.X was last to That $X – other easily second during $X.X recognized about of billion in Yes, million. was than $X period of the out any year. year billion collections of higher course quarter the last of million to quarter

pretty a it’s So impact. material

in Thanks. bad basis much points how realized debt, And was XX of terms in then XXX XQ? to of the

Yes.

level same deemed in property of XX is points of uncollectible was as the total revenue QX about So pool. a percentage the revenues basis in

full again, little below the full guidance that basis a point bit year held So with we’ve year XX original XXX But range. our to consistent guidance.

you. Thank

Linda. you, Thank

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

XX% XX% of I if Bath, or missed some growth the I’m Maybe the you like that’s rent were sorry this, split, the these but I about as Bed achieve the boxes about said. mean, can achieve this we I to effective side everyone. what of other to is, you cost event said the equation, talked net Jim could what’s right, the Brian, Good involvement. talk morning I the be rent, about talk rent taken Hey you CapEx that growth. but in the some know factor maybe think

So that. maybe a bit of Thanks. color on

the It’s it, a parts tenant great is most when certainly question. that I’ll step backfills, back, seeing let Brian activity that. single answer reduces that take of the of a but fact we’re you

of is. is it some as And

all in. really paying a that So commission is tenant get brokerage to you’re

So use. the it also depends on

If on you’re spend more in to specialty but a side to a you’re return. going other generate money, of importantly larger grocer, that, bringing you’re the much going

– that, better tenant we have. we mean, expect rents And single the that look space where that to or scenario with the ROI other. a But tenants the of by fully that just we I recapture and to it’s one capitalize on so we backfilling backfilling spreads the continue in with towards decision. alternatives versus we’re And we positive the not making some effective generate we at as the momentum multiple believe hue and

That’s it guys. Thanks me. for

You bet.

over reached have question-and-answer the for closing would back to Slater Stacy of now floor I the end comments. our to We turn session. like

to for few today. everyone weeks. many We over of joining look seeing us the Thanks forward next you

today’s conference. This concludes

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