Brixmor Property (BRX) 31 Oct 232023 Q3 Earnings call transcript

Greetings, and welcome to the Brixmor Property Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Stacy Staler, Senior Vice President of Investor Relations and Capital Markets. Thank you.

You may begin.

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

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

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

to If requeue. At this pleasure quarter, you the Taylor. introduce please Jim additional my it's have time, questions regarding

quarter across plan. I'm everyone. pleased Thanks, good of value-added outsized demand most retailers transformative of again growth momentum and and returns Stacy, our that and team. morning, strength vibrant and demonstrates every cash produce. flows from compelling our The continues be a once to of The report transformed quarter the plan in that very It's to importantly, centers our to another outperformance front. the cumulative

sector. a leases of comparable of and spread an signed that once this above outperformance always, begins As for record average we the leasing, well where again at post-IPO likely company over feet XXX,XXX new with XX.X%,

of tenants discuss better well-located Lululemon, demand weaker Trader we bankruptcies leading signed in portfolio. Importantly, to be our tenants rents. and us will as Ulta opportunities to to proven new at that leases be Joe's, in with Recent Brian for these better retailers other have further, like retailers bring

and As terms be this through to in the recaptured leasing also drive space. The more lease drive intrinsic additional tenant spreads while demonstrated on even does by flexibility reinvestment. rapid strength not better demand but proven of only to center, progress value

existing of a drove As we foot, company, renewed at signed to which new tenants ABR one room up and for to continue $XX.XX record rents, average to run. tenants us another but plenty higher leaves in-place our we the

ROI in say, often we basis in a you value, create if growth rate rent As environment. rising particularly to and matters drive want

this to transformation Our on new quarter record cumulative impact small shop shop results and of of also a occupancy small our $XX.XX. grew average an rent portfolio at demonstrate leases XX.X% the achieved renewal as our

get visibility growing the rents of and expectations to earlier. grew margin X.X%. of regional commenced have an impact reinvestments Given we the the commenced of $XX on low shop to new projects, standpoint, XX.X% well momentum during on into as another our teams same-store from growth ABR occupancy NOI as forward great NOI we cash operations XXs and we flow. From will deliver quarter, outsized and We our high our an have our those underway, small achieved which ahead growth work million

declining collections. to expect headwinds detail deliver of to prior the now rent period X%, For a we year-over-year Angela growth year, will despite as moment, X.X% same-store in of

ratio. a our conservative raised midpoint all payout raised $X.XX FFO we've while maintaining dividend have at our addition, In by to X.X%, the outlook and

levels. beyond, forward continued 'XX to at Looking even continue we disruption as outperformance into we expect NOI normalized expect and tenant more

environment. even widely perspective, X% and as larger returns the rate the an as for drove reflect year, our very projects to million by over forward expect return. begun in been team higher a million attractive external as of a deliveries next not incremental of have reinvestment Mark cap ABR higher will leasing have and environment, transformative and record cumulative we visibility From perspective, on a Bill team our well several continue to $XXX leasing adjust at This but growth to which hold rates the that reinvestment past confidence $XX to commence at pipeline. From robust activity, signed commenced deliver our several Our driven quarters are opportunities. quarters a particularly exceed to rate pipeline

to recycled owners maturities to private soon events. from capital near-term begin and opportunities and continued will dispositions face other hold as capital we operators return our we've as Importantly, hurdle expectations expect higher

of Of we course, summary, value-added can are disciplined in and high to deliver. our how pleased control continues own we assets the execution the we level remain with patient. In embedded given growth have we today,

are the visibility in We again and on our but growth metric, also our across continued unparalleled by how once quarter transformation. this our outperformance of not we future. And only proud excited are results observable every our demonstrate outperformance portfolio fundamental

Before Brian? turning demonstrating turn congratulate to Angela With promotions, our talent enjoys that, over a call the well Brian to amazing that our on as well-deserved detailed allow their commitment of the over, and Brixmor as growing to I'll call discussion Brian depth talent. me leasing for more results. the our

good Thanks, morning, everyone. Jim, and

bankrupt portfolio leasing capitalize our recently attracting while a tenants to to As environment, rents. space addressing much our quarter, on results our demonstrate team retail favorable recaptured higher tenant quickly at during continues the great

with the quarter, our square BJ's with totaling Club, Less, Burlington, Dress output most new depth leasing new renewal the of on new demand Below, Ross for during portfolio the TJX, executed X.X the feet, Wholesale year. Barnes Five evident of the leases Noble, Ulta and & During likes Lululemon. we to Joe's, Trader added of including The quarter, was executed and million quarterly tenants productive XXX leases we in the

on is restaurant focused suburban great their addition, adding our that tenants team footprint. In are growing

while XXth in continue a to quarter led of basis leases activity occupancy growth, by demonstrated sequential XX.X%, Torchy's shop portfolio And we Urban basis a XX.X%, the Shop of the Bed remaining achieving XX we another during more as we Tuesday small with David's basis drop activity sequential added leased our points from with deliver to occupancy in As Christmas to Morning, reinvestments. room XX increase quarter leasing and Cava, portion of our first the overall Plates. of during a our offset occupancy, record of shop and Tacos XX run drag of Tree consecutive we point This accretive the locations. quarter small the robust occupancy to points recapture see significant did the had Bath, Bridal

XX% lease tenants tenant spaces recaptured team quickly a Our these at company spreads as increase rents bankrupt on included XX% addressing of better with space. our XXXX higher record is new

embedded As in disruption leases demonstrate our the these an excellent reinvestment. free rents of is highlighted, compelling opportunity below-market that results Jim our upgrade capture up opportunities additional this the to tenancy, and retailer for upside creating

come bulk income XXXX in start tenants new in to online of the be We these and fully realized to from the expect late XXXX.

Looking forward, our of drive we the remain plan growth. fundamentals business in underlying continued confident to

centers where be. retailers to want located are Our

the has transforming financial supply more for remains a recognizing as this in to markets retailers portfolio. With Angela? I'll nonexistent, our our hand in add completely leasing review Angela detailed our our success to New almost are call results. great team had forward of and the continue tenants that, pipeline to over we

portfolio recent outlook growth in combined another same-property contributed rent growth strong other and pleased basis of Base NOI XXX NOI Thanks, demand XX to bankruptcies. tenant was reimbursements, diluted approximately FFO as quarter the execution of income quarter, drag to a third related expense per of our contributed XXX forward growth by ongoing to capitalize leverage Brian, ancillary an this percentage driven $X.XX points robust report share improved points on basis. environment. NAREIT and we rents transformation Net points good despite morning. and a I'm to X.X%. retailer on quarter basis and basis same-property the

this settlements during quarter, XX While the due approximately period, revenues primarily uncollectible deemed two to contributed million. large received basis $X totaling points

highlighted, new was of but of primarily The exceptionally at record total approximately now yet base $XX size Jim strong a in of leasing $XX to pool our annualized million activity, the As which million the million feet pool signed due increase not added rent. this quarter square of to X.X million leases the year, the and We slightly year. of million. weighted the $XX well this of leases of commencements during million to $XX towards quarter pool, first rent quarter in fourth the the expect $XX outpacing another during commence XXXX, to now significant commenced half approximately commence

X%, $X.XX for of the our points. We've range the same-property bad outlook, XX-basis-point represent expect of the to year uncollectible in variety a our minimal also full for basis In the across NAREIT basis other the driven bankruptcy tenant XX period. deemed of by line the GAAP and share, settlements and growth fourth XX strong rental additional now early NOI debt to to third same-property quarters, including XX to revenues XXXX at terms to per reflecting XX guidance and items, forward points commencements, versus a a $X.XX range range been adjustments. revenues outlook significant occurred guidance The change diluted the growth FFO during XXXX for that rent revised We has to prior NOI assumptions a we improved have midpoint. X.X% of to total increased of increase guidance increased our same-property noncash of in

was next growth. $XX of late or will $X commenced in pool, pool encouraged attract -- XX% million year. the million $XX very is quarters, not NOI magnitude than X nearly the foundation points XXX the strong this total and yet of time throughout And that it expected commence over just for over providing forward, or we're And year. the XX% XXXX, growth this at last a that we filed same of Looking larger by bankruptcy basis XXXX but is are signed which million for same-property expect to the

in detract XX Given bankruptcy growth Brian space as from XXXX recaptured in activity by XXXX. we that will points re-leasing our basis impacted progress expect highlighted, space, approximately

guidance expectations will XXXX bankruptcy provide our We activity around anticipated when in we February. establish

points As our revenues long-term historical revenue run deemed XX noted guidance is of total points. to basis earlier, to our XX basis of XXX now uncollectible XXXX XX rate versus for

that result, anticipate will growth a to rate. revenues deemed continue as our do historical run to be we uncollectible year we return As negative contributor next likely a to

over of We're positioned unencumbered only maturity extend to the years resulted through debt efforts support plan, Our remains with balanced debt-to-EBITDA liquidity in the with and have with our last total to year-end sheet balance our sheet X.Xx million well duration billion. several schedule maturing a business balance $XXX our of debt proactive of $X.X pleased well-laddered of fully XXXX.

as to portion previously $XXX of debt, expire swaps, a our of million XXXX. in late interest disclosed, term will addition, July loan related rate In

expectations items do anticipate impact that a expense. we year, through given XXXX always, higher interest these be As meaningful we'll that will have next that persist opportunistic rates will from

remain to our position put ongoing over forward Brixmor value-enhancing operator that, in the leasing returns, the forward dynamic, to a likely is navigate pipeline strong to turn productivity I'll even extremely in months with quarters to leasing we for strong our our have to and Although success call rate ahead, environment at the last compelling macro higher several Q&A. reinvestment environment, share a the portfolio efforts you. And the with of look transformation details of our continuing the and over outsized

comes Wells Dori question First Fargo. Instructions] [Operator with Kesten from

your are been strong markets say lease would upside environment? a broadly there from you've On and the new to Or renewal general surprised spreads, you're you benefiting of leasing more where late. certain

country. shops, Dori, or is our the growth quarter. space driving incredibly based, whether encouraging this is we regions during really this across been What's that the small within for that's Brian. broad higher. centers, put well. we the our particularly the We're the across in saw renewal we really strong portfolio with to bankrupt are us us anchor, driving traffic. And And space And is continue for recognizing amount allowing anchors in, drive retailers recognizing invest rate to a as They're significant of that it. which competition certainly are as is

we've So has trend that broad-based. encouraged been been the fairly

expectations on any Okay. holiday 'XX strength what And sort your of there kind if be And the this shift based environment the that? wondering, in that into leasing season? are could I'm for looking of think of you

The remains consumer Yes, good it's incredibly a question. resilient.

their you've Walmart expectations think being for strong talked spending I about again up Retail was heard year-over-year. holiday.

for very But We're planning about XXXX ICSC XXXX remain they're in meetings about deals XXXX. today. we retailer So thinking to plans, at them store encouraged. talking our opening I mean

just is not how on focused that the holiday we we as Certainly, don't about something impact holiday we've what a broadly, retailers are major a So our pipeline, But pipeline from think encouraged on. been and it's season. goes. we're from seeing leasing dependent Christmas expect

channel given space demand to very And their a for to footprint. proven add I for see store that would white profitable just is durable these retailers, has that to grow they continue them that, the be and

very been encouraged. So we've

Next question, Thomas Capital Markets. with Todd KeyBanc

to on just investments. wanted I touch Jim,

talked you at maybe deals XX-year pricing. investment some quarter, since last quite on market surface the bit. the to coming back quarter, think that I opportunities seeing about beginning last a is favorable up were And more

So see sellers' regard a prices we borrowing get bit more in costs further the change company new willingness to your adjustments more you raising today? required Are are up. there opportunistic lower any hurdles Has start And to further accept little been before with either for price acquisitions? to begin to return are investments. there

it's cost environment. higher a capital Yes. I of mean clearly,

that growth I is rates. a without to I have external the market evaluate seeing we that mentioned, higher hurdle look, external said, with still about can growth. top I we relying With particularly our growth we drive So we're And sector as of strategy what as happened adjust opportunities. what's on the think find compelling

You've seen have deals to coming maturities to you achieve pulled have bring as going to capital table. the think pricing. sellers get and debt that the folks able we are been in And not several background, expected requirements

we an perspective, from opportunity So see by of patient. some we're we're encouraged what but

at of one-off take capital today you've today? over there advantage basis dispositions there's favorable the opportunity Is the over opportunity portfolio somewhat of market years accelerate for sort pruned And of and time. an to the in a to pricing sort if maybe Okay. assets on an recycled all

is $X.X we the over value. and them Well, the over last we and sold fix We've continue assets done to asset portfolio few maximize one billion prune to we've years, the as partial it stabilize asset asset which execution to single portfolios. more and time, versus much a but think much, and harder transactions at accretive the given get execute, we pricing large value on sometimes you

of substantial that modest noncore, overall as sold we'll what portfolio, there's part in our having we've relatively consider it. some maximized that of value context we be opportunistic but to So it's a remains, harvesting and be the and

Next question, Scotiabank. with Greg McGinniss

types talk just direct or bankruptcies net in anchor you the progress? to all the level through rent in and is are about tenants, And XX% and much from finally, leasing how spreads what of for of Bed the the mentioned? effective whether or Bath Could growth these that left versus TIs general, rent is work backfills means

boxes accessory particularly signed All a to for the Greg, really in this Bed all the but two is Brian. been We're remaining. the by space. specialty our backfills We've We've another yesterday. single bankruptcy have spaces, Bath. been demand encouraged down on grocery, with one handful off-price are home of tenant operators that

amount general, that I We with those year. And rents, over in you're where this leasing perspective, next over from in cost last there in and to we start a we to XX our record XX considering GLA only competition demand continuing those lost at great occupancy. for the in significant terms for see a in to got took next under these spaces basis We've the back points boxes. of basis of rents, And late I'd leasing the a to expect as anchor line few a boxes another points that set signing bankrupt quarters. net costs quarter remains effective foot. of highlight been X rolling at space, foot. about $XX anchor leases Thinking see We're online box years. we're income, at anchor mentioned, $X $XX come going back we've

ability drive bring we to So really confident team's better in tenants to feel the spaces market. those and with rate

tenants looking some expected And and the far Aid And give anticipate Maybe exposure you're the what types there. you backfill size the Okay. of in loss rejected your so you could through background to those on of then of boxes then future? us being bankruptcies? Rite

of great really of by obviously Yes, another sure. our these spaces. It's announcement. We team weren't ahead getting example surprised the

Ulta we Rite X Aid In our bankruptcy In backfilled announcement, recently some immediately. regards took fact, with were Joe's. to spaces back we that of the locations Trader and rejected

close. that All that or more of expected vintage. -- in are one former line We new have X to kind a but

those. good got basis we've rent on So

off-price, We home for merchandise, mark-to-market space. XX% in spoken upside. of general the with got accessories expect X already operators to over We've drive them

been can example ahead it's pretty team So seen far. of our of But boxes, again, so we've on them capitalize getting with we've great pleased quickly. pretty we another what these thus

add, just of XX in as exposure GLA was total, ABR. of basis the or I'd only Yes. X/XX points

is a So overall, exposure this just very for small us.

one just, And caused Okay. the commonalities to Aid What those sorry, a were quick the be follow-up. Rite selected that on to those boxes close?

exactly real dependent. business, at Greg, If not it's that you estate look

think on heavily the I they're dependent scripts do markets. those how in

at other consideration think I as big versus some Aid Rite a you look businesses. So that's

process going they're both the through Bath. Bed often go-forward as marketing you plan. well at like is understanding of the not looking business a with lease as a They're existing Our saw recapitalization

we look of we strength the As it, really of think of it terms real estate. in anything at didn't

fact, back on seeing happy spaces those already them of gate. out some got we're the In we because we're great demand

Jeff Spector Bank Next with of America. question,

I if question. opening I can NOI you to to guidance, you about as could benefits? did latest remarks are not you in on 'XX, I And Two-part in any focus what same-store X.X% comment lift in then second thinking any the benefits for Jim, we think about what And from would your achieve your clarify start reoccur. 'XX 'XX, guess, be you say we guess Or that Angela, are XXXX? X%. part that the may should our onetime to there models there be, on

deliver. signed to we at signed outperform have continue and but quarter in we but commenced we're not commencing given ability legal feel to not signing. we're much Jeff, on how in We and that just confident what pipeline LOI. Look that only commenced to continue but our a also build not very comment I for at pipeline. didn't look and much that Look the how but specific 'XX, momentum guidance at

while, So to records setting activity continues. And as that being capital. spreads. all We're rate. to disciplined setting We're the records as we're with

sets to up you growth. continue good fundamental you drive to outperform. And Jeff, it comes know, want basis rent to, how like So as we if to matters, the us plan back

the recaptured drive in that And not we're as we've that, better see can so rate tenant bankrupt better through the as to occupancy was a records to, and it's leasing. in leasing, at us better follow-on but shop bring these alluding drive only Brian ability rent, you a shop a setting. tenants, records remarkable And our growth given

So our guidance but I'll giving yet. And continue to we not ability pretty Angela let feel to half. the outperform, we're in confident answer second

good to did into to expectations bankruptcies. on for we when there's quantify year XXXX, get mean, really our a XXXX And but disruption. associated I provides Jim guidance. space, to I were, and Yes. out, say things XX I we we we I think it related signed pointed mentioned ongoing really how are it's our note I of tenant XXXX. The the did I tried significant going the but that as for have XXXX to that impact provide in prepared in cover obviously substantially the a that it a of onetime February and call larger in same again, bankruptcy just things obviously, the this high remarks. that a and points job not and sort be we do XXXX there's last anything of foundation right sort but good highlighted, is, now, we'll year, laying some specifically pool that company nature, with nonrecurring expect continued commenced the as quantified XXXX, time wouldn't or my of basis for as the full it's record Jim growth was really at about than some that bankruptcies, the

from expected but remarks thing revenues to. is that or my other we which XXXX, XXX basis We detracting points XXXX is are it a well in I originally deemed to is historical total The do not XX to growth below of guidance uncollectible at degree to the kind magnitude the XX we for point of is revenue, -- in noted our this points. had of run XX rate basis --

to So as will think sort just be that, unusual been of we contributor to normalized growth we've there, revert where into XXXX, as nothing reversion a that get levels, a just do we historically. to negative we occurring

that think covers mostly I So property. same

in the year, perspective. note On some of side, an the from be additional did debt covers going bit only really that note it. And of just off next also gain July obviously, pressure other FFO maturity thing onetime but more this a a a will expense would year, extinguishment almost that's right that was a just interest $X.XXX share, create a around FFO XXXX, in I to we burning $X.XX debt that on swap little recurring was late or

question from St. Next comes Haendel

with Mizuho. Juste

on help there's did X.X%. if I'm quantify anything that third leases? the in same-store impact a the a quarter, added -- the Angela, have question I there pool And terminated adjustments the Bath below-market in few potential us or to growth if assets same-store you of the Bed were maybe earnings curious, the lease from quarter? could were

pool pool in acquisitions but We some were pool XXXX -- the quarterly did -- the the annual for of acquisitions sorry, there guess would come of the acquisitions in acquisitions in won't came I give -- I that XXXX reconciliation year, come until XXXX I'm this that be it into think or a the came glossary, XXXX that Yes. XXXX. and into

market, property just not highlight relates XXX to I the and it property again, does obviously, growth impact straight below calculation. would same FAS same line As or

at of the any FAS impacted -- note reversals below was perspective. acceleration on acceleration any the quarter the or FAS all by from a significant So not in side. rent to X.X% sort straight-line the Nothing either market

on continue a it minimal balances move the year. basis, quarter. was there to We net the during actually, pretty small -- think as I you through are But

think X they FAS perspective, And it. then from from earnings the an the you have it. were third the assets, Got Got quarter the to XXX? impact there Do maybe of was results? impact an I

on the it mean, than I share a side. less FAS acceleration well $X.XXX was

have minimis it's de quarter. really of out acquisitions. the separately, mean, during impact I just don't the the pretty broken I So

Sorry, Haendel? hear me, can you

hear can Haendel, us? you

Hello?

can us? hear you hear us? can Haendel, Yes, Operator, you

can. I

be But Haendel, the not I question, big your think enough. the answer the move wasn't your problem our materially might assets line. to did acquisition on of same-store addition

Next Mueller JPMorgan. with question, Mike

I yields XXXX, When about at looking expected guess to have you you're the see what pipeline, that you're today? off the on kicking do looking supplemental at in-place say, how the yield what's a of and thinking expectation the that. in starts for strong in kind compared process we

They continue that to frankly, by they're the remain execute and as in we strong, expect rent we growth enhanced, these projects.

So we obviously mitigate and out until in work substantial get returns risk, And to launched. way, lease we gross committing right? are. really our hard understand and and what be not that incremental to Mike, ready our price capital project we a greatly We're

what growth. seeing like that that you're in driving by seeing the it's factors pipeline, driven portfolio the and I So forward in same of terms existing we're

Anthony question, Powell with Next Barclays.

the Or In you past is demand, trends kind the tenants of of it portfolio? seeing tenant that the increase in types of few terms activity are quarters? we've the their any of or categories in seen new similar tenants

Yes, remarks, Anthony, Cava. been quality this focused of Mendocino operators continue that we're Urban in new the operators is by, noted my on opening encouraged be to footprint, Brian. the restaurant their It's expanding that seeing Plates, the we suburban depth space, operators real in have that Farms, I like something

space, upping off-mall Tuesday their who depth of signed former of JD a seen Sports, looking see program. quarter, significant off-mall, we've Sephora's Morning in lot a side, Lululemon tenants there. is mall The a number this we to demand for continue well. expanding as we of So

pretty significant terms the off-price, as the been encouraged tenant sector. like overall our pipeline merchandise, seeing continue those that general we've store of accessory in counts So new home well which core as to in tenants, add we're

broad-based, been front. encouraged we've demand what new fairly on we're by the tenant So the seeing has overall but been

kind And below maybe we're given on noted, XXX you can't revenues lower expected points deemed it year. XX that be of the than Why basis seeing? it environment next to uncollectible, strong this as was year,

across by collections I as look, mean, to portfolio. the we're Yes. it we're incredibly what relates seeing encouraged

lots go as XXXX. very cognizant pointed we into environment, are healthy, we out the pretty the there things think from expense But going A and resilient to of us in an very earlier, I to availability Brian healthy interest current consumer. pressures expectation probably are looks a and rate, as year including and that's other and probably we're perspective. year similar capital that normalized where start next a run tell

Capital question Klein with Next Ari BMO Markets.

Ari. It's Juan, not

stabilized yields or for on you'd in for Just the centers underwrite increase anchored and to a light what in grocery deals be looking costs? power question of capital

question. yields, a see think and not growth going really X-part it's in you It's those great yields. a in It's is upside the what question. And the but I only

you it to an IRR with to thinking growth So about basis on it from on values. perspective, and really with rates need reversion conservative see as IRRs visibility great unlevered an cap assumptions relates

need capital You see those single, of high cost the is. clear, to in the to low double-digit we think, where

shop gravitates that the small portfolio? quarter? quick for towards the your just latest a the follow-up. can Where having on is kind you in redevelopments stat do occupancy And And think what's drag the third then of

the average drag get redevelopment higher that you XX of basis where shop The XX, than on has that those will occupancy a is. portfolio the you deliver as portfolio. Yes. projects We overall think reinvestment small points

shop a XXs. that, have can we So into occupancy that pretty view the clear go well low small

Next Craig question, with Mailman Citi.

I just commentary. want the to back go to acquisition

seems kind your of It say significant a One contract, what's has is what's today assets they the is in amount of a of what X.X. under sellable. like market peers sold

assets of to breakthroughs just that adjust going be some So kind public be is stuck you these to what on, pricing kind that curious, deals sold of the standpoint, where maybe of market maybe timing private versus when think of of from is I'm out to do your starts can the the pricing market cap where some better quality today. rates markets kind

Mark?

adjust because believe quarter basis. I'd call and on a perspective time capital discipline react market the think continue the last certainly has with, where is the almost our start real I cost patience the we of here right we're debt Well, really that been in to seeing to to

very a from REITs rise where still of perspective, the quarter realistic the a are market, means Texas, you're have X turbulent tight California. so, years timing bit the that to bifurcated pricing deal very for rates some Southeast seeing from price trades have market the to been the anchored sellers last is say initial adjust a usually and saw is market kind in they where gross over assets think or We perspective. trade. we a seeing But pricing the simple market. the there, been and the you're will clearly over And capital months, need about say -- would just private opportunities do of we've to digesting where market more environment basis We've bigger what where we probably think expectations. What seen million. points, as lead where their $XXX would come We seen grocery-anchored I that XXX there Sellers owners market. setting in that's to that's

helpful. then on leasing That's just And good. spreads front, have been the

at better effectives they're rents capital look funding be Or strong. near guys net with it of and rates cost you what's been of space I'm to just the been the tenants are of is conversations and push are guys and then term? maybe the looking capital pull curious, forward and spreads has in Just between largely and higher the build buy pulling the kind paying inventory. kind out for new to going of pretty tight. it versus continuing you out unchanged have where just Kind so

it's when always practices been out of best into of of we're supply came issues. really cognizant the that chain that one we the We've Yes. pandemic and spaces, putting against were up the capital

of a to They the partnered in with space. weren't stores the of these necessarily really be Our operating tenants of wanted lot teams tenants' more rate. out open. this And by teams, led really to goodness doing their Haig, lot heart a construction efficient get

So figured to the they they out to existing the use how facades. how use out bathers, figured existing

more as more existing Tuesday in more say been to we've be Bath seen & able they've Bed so Morning auctions, aggressive, be And spaces and Beyond utilize efficient. tenants the and

tenants been have certainly have for costs that that's competition the Certainly, some on to instances ultimately is by scopes. that back And certain of the higher. able on And we impacted driving circumstances. those side, push then on So helped we side. had been space cost or We've revise rent in rent really the

that a partnered But costs on leasing be and with can certainly as at focus we're as consideration have to really something our looking when it's are we our So operating deals. well always teams be. teams efficient

platform of that doing the benefits we're with deals tenants. a like larger of One year a ours these is several

in we're how will way what much trust of going and negotiation of there's that goes capital in be long terms to deliver the required. a So

or in burn to just if it slip anticipate one more swaps for Maybe Do off could you flow? going the re-upping let I and Angela.

volatility. evaluating moving. an market where the of to on obviously where eye opportunistically, keep continue amount an fair environment maybe We're been We're a in things there's are

So an to we'll as we we continue there'll execute, that where evaluate can be hopeful move but forward. are window opportunistic we

question Goldman comes Next from Caitlin Sachs. with Burrows

set Maybe causing slow timing. just industrial to decision office on tenant definitely and decision-making. We hear companies in uncertainties their

bit your longer taking in So tenants I need at a was like what little seeing they just that to decide wondering all, deals? signed are you're if

seen in any terms really timing to or of of We execute. demand demand timing or haven't deterioration

appreciate retailer is things durability. demand about One this its of the to

continue, is they're now some to Brian the into for the everybody of beyond. to of remain expecting making 'XX to, forward years. committed and retailers type been think economic was out yet as I alluding we've expecting and their actually disruption And pipeline last couple commitments it

will to it cannibalize unit I be thing the data what that of other productivity on demand the about is stores. what using that will competing comment assess other are So in really new of as never terms retailers would before a

making them decision new to recent if anything, And store, bankruptcies pointed plans, as have a not as so enough out, that space. and which leveraging the there's supply open from standpoint. an as new in decision see a they terms opening of the to informed possible And we're for their competition white they're store achieve

it. Got

Okay. separately, the maturities. had. the guys -- maybe bond discussion And just in know on June following we swap along then just you up I have

size? get to you that until closer? So ahead wait it would just look similar wondering or you soon a of And think do be of how might

like of June next and the for that. interest opportunistic for both We'll an on point usually I we would of I here impact as ahead maturity in expense we're the us window said, maturity execute market, Caitlin, to terms there'll ultimately bond as is year, out for hoping XXXX look though, is that to the evaluating given the of that, in important be do, Yes. we're -- opportunistically. swap well. timing really XXXX

So we'll window And continue I later, evaluate. to the like to execute to rather than we'll but market. watch said, find hopefully good earlier continue a

Piper Mitchell Connor question, Sandler. with Next

Goldfarb. It's actually Alex

questions. So two quick

industry-wide about big issue. theft First, has retailers all been The spoken obviously, it. have a

the trying more the thinking they between there you on really to are guys them the to own, and help the asking in that lot what's Or tenants the relationship to this? are are parking Or safety, guys from this going tenant-landlord help the of the undertaking other about the address stores? landlord about their obviously general you to Sort relationship apart inside are initiatives do more on asset is tenants? versus and trying tenant,

tenant have the the keeping to That's landlord-tenant is the customers. The their partnership landlord. good critical. that center for He's an well-lit, important of counterparty needs a aspect they And relationship. know secure, in that safe

be. a think and be It's their Alex, relationships what retailers, of needs it's with ours might larger benefit, such recoverable a responsive have we expense. where a to can platform great I highly we as

in important is We're landlords, good it retailers be And of the tenants. front be crime high not a tenant. have you've been degree it So about it's surprising to we private may don't But of are competitive particularly see to to certain some the lot be urban the smaller partner Alex, opportunity to that of it We responsive. an and that locations a for degree as the a reading is in concern it with impacting press. in differentiation. that fortunate, landlords as

maybe -- Okay. number for assets -- little be buying And that coast. of the next the of yes, for question the a is a along in Carolinas guys to Horgan. ago, you quiet. Hadn't number seems years seen A were

area pan market to transaction strategy know hungry has given but other you that still maybe sort way the the of if the out expand don't tough. just did the I of So in saw similar just snowbird-type been transactions, it or maybe you're areas, dearth it's or

hence, not So much as activity.

for update there. looking just an So

every pleased performed. deal outperformed been underwriting, really with the we've We've on how acquisition that Look, we we've I have that purchased. bought think,

well answer pause think perspective, your believe that's be ago question, better it's we been market where yield a We IRR say, transaction and coming So will being is. I'd the proven to choice acquisitions and of X.X the more we to from did opportunities years today. out make a because

to deals going has than more find that deals Alex. we're here, markets me, been in on to time continue but and as So the to we like market moves slow the everyone want do

we're going them So continue to as find we can. to

But to us. those very markets attractive are

have Carolinas we and As that done We performers been upon mass Florida Mark the and alluded Southeast. to, our we that build us. And critical the have great the think well. throughout acquisitions they've can in for coastal

for we'll to those So continue opportunity. mine markets

Instructions] [Operator with Paulina comes Next Rojas from question Green Street.

market? stronger a seeing sites sort a demand there Is spot you store sweet the Are others? for of certain in today over

rate -- up little Paulina, there bit. does sorry, we to Are you a relative broke size... you how I'm the mean

of ranges, most the seeing size in terms demand? where Yes, we're Paulina,

Exactly, yes. sweet Is spot. any there

you're junior Skechers square few a and of X,XXX anchor them, and the tenants. the Foot kind space, to kind and of Boot seeing of lot particularly Five point Barn competition another and likes that a from range, XX,XXX pOpshelf, of Locker in foot Below to I'd Yes, of Ulta,

competitive, a just really outparcel extremely out Morning Tuesday we space. on spaces. And overall size say that that from that been So would I'd be category and our play range competition has then saw

continue to tenants. a amount from of have significant We demand outparcel

the Starbucks medical are look at that fray filling some Cava competing uses against out you multi-tenant entering Chipotle is and If now outparcels.

of doing earlier, of of what some those we aggressive think terms lot on we're competition. seeing of a a being space within up So in we're I that freeing of recapturing are lot space, And the opportunities. benefits

been be So you're I'd those would front. that out size two if encouraged highlight. on that But two calling ranges, we've the

lines to well with just foot what demand to XX,XXX boxes. the the the that X,XXX Rite Yes, amplify Aid saying, range Brian square in size really of is up

bankruptcy there off there radar, my the just then early to other question sure mentioned think Rite is, Is XQ Angela, I and XQ, any minimal in of make you retailer calling is And nobody outside Aid?

Rite And only Aid. impact it basis, an the No, basis probably annualized points on less that was of Aid, given total impact XXXX. than No. basis our Rite points it's X XX to exposure us really is just from in

St. Haendel question, Next

with Juste Mizuho.

question, I'm earlier. going difficulties sure to second or technical I'm some answer try had my not you I the of so if Sorry, heard part again.

NOI know this are to terminated lease from if there leases? I But your apologies Bed below-market earnings adjustments same-store wanted So or in if the is redundant. any Bath

no tenant impact an netted X FFO sort to of bankruptcy FAS there's really Again, and of above accretion inducements. NOI. same-store Yes. of below-market From impact on perspective, the and leases

bankruptcies basis, on but no pick we So full by the net impact during year-to-date up $X.X reversals of that's tenant line. about in a straight quarter. $X On offset million and about inducements, year million FAS to did related really

of noncash adjustment So between together, you're a looking about negative the items at all year-to-date. $XXX,XXX

if could Got a it. in squeeze And follow-up. I

mentioned hit guess, you you the year, but think I primarily curious, cash I and half earlier, to next Bath commentary of 'XX. back thought little bankruptcy backfill other is your a maybe during line -- I'm previously So boxes expected in that time the flow you second from early Bed at had be benefit. to year I'm expectations being of splitting moved to bit, half primarily the I next be least back outlined hairs,

Haendel, this Brian. is

you in about spring when If open think right? them retailers early particularly opening the their stores, generally tenants. in They're for fall, national the or

start to XXXX, the come box but in been time half lining converting we've really year, particularly you're say But to them those to I in they're months, over it those we next commence year. will and where when to fully few store we leases aligns Sprouts with online up come a openings the late with grocer. where aligns the And expected openings So have in. the we it expecting said, it mean been those last Bed line to back Bath expect signing for like here consistently be. of

Tsai Next question, Linda with Jefferies.

just Any interest earnings year? costs impact on general thoughts how next

on June That's The sort Yes. million maturity do it today. couple comments X.XX%. Linda, maturity. of of of on and we a that at from year. about a around a the of top obviously, X% And that, have is my bond a XX-year to next if you're today looking rate almost that $XXX then would doubles rate say I the and were earlier, spread replace echoing probably things we just with right

evaluate when we the of does when matter, ultimate market and June. opportunistically, only matters but as the rate not on continuing firm timing don't is that happen refinancing in now for have the view to any interest well. And between terms realized refinance to that refinancing but expense on XXXX we're So that likely we

expiration has SOFR happens current million The swap my I XXXX. of at would that and on you expect. remarks above $XXX or as SOFR late the a SOFR, is swapped of in in that July other mentioned X.XX%, thing is prepared spot well that,

of replacing perspective too. an a certainly the swap understand, there's mentioned little to timing next market that that, we and as to when a over continue in lock X as do makes sense with impact evaluate it the I That's So it -- earlier, course to rate relates so. to from a but look to months, easier, opportunistically bit we'll the

into so not maturity particular to Angela go market flexibility time part in strategy to we're at any of having that and point that refinance as the of last Linda, always, as part team we, have year. tremendous 'XX

terms window. under liquidity And be of as got picking we'll of billion the of So in Angela $X.X we've mentioned, opportunistic line credit. our

questions. closing floor are to for turn to over no I would like There remarks. the Stacy further

at Thank you, everyone, forward for joining us of to today. look you many We NAREIT. seeing

concludes teleconference. today's This

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