Brixmor Property (BRX) 13 Feb 242023 Q4 Earnings call transcript

Greetings, and welcome to Brixmor Property Group Inc. Fourth Quarter 2023 Earnings Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce Stacy Slater, Senior Vice President, Investor Relations and Capital Markets. Thank you.

begin. may You

Vice Vice and Quarter operator, are all Gallagher, joining Mark Senior Interim also for Treasurer; Chief Accounting Executive Taylor, Operating be Thank Officer, will Vice Call. With thank me Fourth Executive Finnegan, Brian Conference President Executive today available Officer; Chief Senior and Officer on Officer Brixmor's Chief Chief you, Officer; Q&A. Financial you and President, Steve President Investment for the and Jim Horgan, and and call Chief

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

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

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

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

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

morning, Thanks, Stacy, and everyone. good

outperformance of record We evident depth record renewal rate, our is only tenant and report growth. observable transformation demand the our to are to very be portfolio. execution, yet every new not That the pleased to to quarter year, and stat, strength value-added occupancy reflecting to another strong spreads, but of transformed in our sector-leading from and in

Brian our to an cash of ABR for total as spread $XX will of year we discuss, During feet at bringing signed average record the new new signed million. XX%, a leases the XXX,XXX quarter,

and opportunity of the XX%, spreads We for our once year, demonstrating within of renewal XX.X% market again the record portfolio. retention also achieved

commence that ABR, several over detail million a signed, but leases, represents $XX Steve another will record of current another quarters, Our as pool will of in the not commenced moment. next

NOI same-store points. FFO of all-weather and from share dynamic for on others an ability Bath, For when Bed retail Tuesday basis to or an increased our XXX growth growth, from in $X.XX we extinguishment. headwinds debt despite X%, gain the With per always excluding the drove strategy again once industry. year, Morning $X.XX to consistent X.X% we deliver of growth demonstrated

proven, have attractive value. our basis, disruption an given tenant is We rent opportunity to that create

during of creation, the value of at XXX incremental projects an Speaking stabilized reinvestment average X%. we million return of year,

incremental stands at also at of average now X%. million $XXX return an pipeline Our

and nearly It's Importantly, power in program. our year. that projects and duration value-added lower attractive incremental returns. the this shorter to expect are we pre-leased, risk, of half which That's of deliver

of We on Davis down but highly phases. I'm Brown accretive impacted road from pipeline we have the the the value report, portfolio, Bill rates benefit higher located thanks XX% also on one nation's as only into step follow-on not front moved effort, future now Northern pleased California the we delivery, fourth team's value, universities to students. creating of literally occupancy tremendous quarter, collection the active in California the in and the and also to XX,XXX fastest-growing with of the and

Nordstrom community. more to Rack, completely and this addition will Trader center, transform Farms Plates, Mendocino collegiate the anchored The the We with Ulta, Joe's of MEL, PetSmart, serve Urban vibrant

power to in capital recycling from harvesting through perspective, 'XX to proceeds million value-add continue ample assets. external with growth dry provides This be in lower sale of opportunistic, a opportunities but deploy activity us capital $XXX We our into disciplined that the non-growth fit strategy.

Xx, with and debt-to-EBITDA capacity. billion 'XX, ending at in sheet our year balance flexible of strong, a maintain $X.X also over We the undrawn

and improvements BBB received portfolio balance sheet. transformation of to upgrade to our from reflecting We the an S&P, our also made

provide to wanted I over, CFO call on an process. the our update turning search Before

We to pleased interest are our and with are both the the team. in our underway quality and narrowing down join candidates, of list well

over announce I'll to our call that, expect Brian. or the decision We to by early end of the turn March April. With

and good morning, everyone. Jim, Thanks,

his outstanding front quarter another centers our work As remains in the team for ended our done and demand, Jim demand while to XXXX remarks, as incredibly retention, merchandising in transforming portfolio record credit team our highlighted tenancy. has our us that with profile leasing underlying be to rate robust. The to space on of in the mix and is capitalize enabling upgrading our leading occupancy, on

Less. for in and Dress XX,XXX Ross seafood, as Tony's square such This portfolio Five Trading capture Counter below-market our leases. Included Sierra and Fitness Chicago. Steak totaling leases Bakery with Post, with to addition as cash location renewal in and embedded leases, open-air activity blended Tatte within at spread core leases continues million combined Planet to suburban quarter, we of market new retailers, upside XXX foot to were first this and new the on team honeygrow, a XX.X% executed X.X square our feet in new a Fresh Below,

This record we despite point the activity due tenant strength points team is gain have we space, is speed this but XX in a from during only environment the portfolio recaptured to year occupancy and rents led not to of a broader evident year-over-year disruption. The the Brixmor addressing which basis and the of of leasing sequential drag point the XX.X%, a in basis space quickly gain record basis by proving executed XX XXX be the we delivered late XXXX as have don't been spaces expect later, online of been are And able this with. bulk team able on of while remerchandise growth an across we XX% portfolio retailers the on come our in of income we these to to to space we rent achieve. to XXXX. encouraged our recaptured leases the opportunity Bankruptcy is the quality until or our

next and Whole in more quarters, pipeline year, In the the opening with have reinvestment upgrades Market Angeles, to our several Joe's the portfolio. over Los projected Farmers addition, record sample Trader a projects still the York making projects to in open small new new dramatic shop of run the are results a a small a Brixmor overall of a area. occupancy even outside we team New with Metro is room including during just strong of across reinvestment Philadelphia, Foods the These new suburban in Sprouts

we a environment and the financial hand continue position forward of to that, centers we by the Steve? retail As environment our our take our this detailed the from portfolio encouraged centers. overall look and results. of review find strength remain the I'll year, Brixmor to disruption opportunity to for we demand to for advantage entire the in be operators to the We're over great grateful the to team this efforts our serve. With of of the call communities centers, make and to of more the Steve

driven on share quarter, by report a basis as property bankruptcies. on value-added XXXX in to drag same Thanks, business line to of the fourth Brian. FFO strong Base our NOI we was plan approximately and XXX the set $X.XX I'm rent revenue XXX growth. NAREIT related of deliver this points long-term X.X%. NOI to quarter, continue for per the basis growth pleased growth overcoming stage contributed same-property top points growth of recent

which the when in debt represented same-property year for year, per of For from adjusting prior a resulted increase gain FFO X%, which on extinguishment. NAREIT NOI $X.XX, the was share the growth X.X%

spread base and approximately yet our leasing up our as new occupancy demand size As leased successful momentum rent. million $X points, not generated of Brian initiatives. and by was year-end. Despite ended approximately The transformation this highlighted, robust, well metrics at $XX rent but as reflect $XX last period The signed, between million commenced the portfolio operational broad-based pool continue XXX the the which build the basis $XX commencing pool of million, year. includes annualized totaled of million net since to

not commenced XX% rent the above pool was signed annualized foot portfolio but blended the our yet approximately currently square addition, In average. on per $XX.XX,

set XX% XXX up approximately ratably guidance expect rent. in ABR commenced $XX in These not and pool of X.X%, commence We for growth but a growth we basis base million X.X% contribution NOI same-property from to XXXX. comprised XXX have point tailwinds XXXX, or the signed of healthy introduced of to us for in to

capacity range XXX points potential NOI tenant to to includes absorb same-property and drag of disruption midpoint reflects related XXXX disruption. Our tenant at the basis approximately national

uncollectible third basis we run move points collections. rate we beyond XXX XX deemed as revenue prior our benefits the to total on to return of our quarter of call, historical mentioned expect period revenues As to of

to our recapture the portfolio beyond. is highlighted, and our but Brian not rent accretively ability 'XX with signed sets space pool As growth strong in significant to coupled up commenced deliver

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

loan. the the for Our rates same-property of on strong higher issued FFO in the NOI and portfolio due the January, we bonds despite interest reflects guidance swaps growth term interest to headwind million a $XXX replacement expense $X.XX in an

cash mature our we of from X.X% X.XX% $XXX stable, our the June. in proceeds interim, In the when bonds expect We million accounts. holding repay high-yielding and will they bonds excess million $XXX are

of total execute and As turn XX, plan. And call the over leaves of positioned liquidity our December we of that, the $X.X to to for had Xx, on with which I well us debt-to-EBITDA business operator billion Q&A.

Instructions] [Operator

from comes of line Juan question Markets. with Capital BMO the first Our Sanabria

should timing in I bad forecast any bit little know your a tenants, debt around and a that. little Lots, was just the assumptions Big I hoping evolve you specific if of with in the it's one could bit year talk about could anything of smaller, timing curious news, how that how we but the you think about throughout that? may share and there's to just the regards and bankruptcies

Yes.

which about potential we exposure consistently top XXX loss. is basis potential As for line, places of Steve of remarks, about basis we talked XX midpoint really of tenant at in at points as tenant XXX the about to doubtful assumed in the we've range, our credit done. that where accounts the One disruption. X then is points allowance in his we've the think credit And assume second

this is Juan, Brian.

monitor relates tenant whole, to list. our it a as continue watch to As just we disruption

feel Big over at real the estate $XX. of is on comment names. disruption. demonstrated our Naples Jim year on capitalize though. don't range think the Big the And location been and as a in spaces Big into Lots We've double record Lots than Lots any at leased partner. ability of those a outcomes range will tenant last We're the forecast rent. space in our as I opportunities of fourth touched to quarter the $X. for like estate real team we has close less our would The Steve Angeles. Los we're anchors opening tenant from in of quickly on, outside former rents Sprouts I a We -- a -- to accounted has though are say in year typically been a signing good get to disruption. We this a in tenant I on the

to positioned backfill positioned feel which accretively higher year, we're So for is though at this we much in it disruption well as tenant forecast, our rents. well some and

And provide Not the of an if on think of occupancy, about that seasonality the how -- the first then over assumed should kind sure Is and you dip quarter? can there we just year? in course a occupancy sorry. of year-end range the for

No, no, no.

build Sorry, in correct seasonal due you move-outs see they Juan. 'XX, you're build 'XX in year-end. do normal in then and of Typically, at in Even the starts both of off up lease occupancy move-outs, a at terms typically though happen lows the it and we and course occupancy Yes, historic year remained historic to dip when ramp beginning that. move-outs. at lows, have to those

a this trajectory typical expect year. We

if well. that despite some But from to as we as You drag with back we look due disruption year-over-year. at grow you tenant may to last thing, year, that the year build took bankruptcy, occupancy fluctuations able saw were we the interesting see last

course So on. normal spot you're trajectory,

growing year-end. small dip that at towards beginning the of a the see year You'll and

from line Our comes of the Thomas next KeyBanc. question with Todd

following so, Perhaps, if Just portfolio? that I expirations during course up any changes in that bit the Big guess, of there question, on little level throughout year any there to expected first budgeting Brian, are exposure just just in year? a lease the Lots. property your And the

that expiration took in Sure. coming It was we proactively back. an up mention January. I location the did one

we have in more first think or I the X X quarter.

should happened XX% handful again, are $X. that a Lots first only overall, those normal we had course already exposure, about at of ability get And have quarter. look But expirations, which pre-pandemic. you that backfill rents from it's to our the where handful If feel really we down of accretively were Big boxes in we space good a We back. below

implications for you some relative be us Bath do Bed but to I it? estate How Beyond, that They & compare may size the contrast larger. Bath? space lower you think, relative that that Can Okay. understand? the box leasing than you The would just extent is mentioned rents. meaningfully estate and to real the Bed average of the help real recapture Bath You and were, rents, Bed to

Sure.

I we've environment, at portfolio. think supply in -- box we're So lowest overall ever I box just about the the had mean to talked right? the vacancy that

I again, last point, dynamic year. think bidding a aggressive supply Bath how that Bed for retailers on in Beyond is data space the were &

As the area in Big in -- you got in we've our Dallas look and as well. at Angeles, Naples, portfolio, the in to Lots boxes the mentioned, I Philadelphia spaces addition Los

I'd tenants off-price generally, home. grocery, in whether in that's good whether good looking pretty say, pretty been that in real core feel box the So retailers overall feel the about we about expand, specialty our the demand that's estate, from have category, to

spaces. we feel those good of depth a the the demand in very box again, So standpoint And upside pretty about remains strong. from

around Is today, known rejections just against whether any that reserve cushion should portion a the credit XX in just the Or that going the that itself. there reserve as events or happen remaining of lease months a year? we just And forward think amounts of anything about reserve clarification, to Okay. otherwise? the may

the referenced points about the basis prior in with Any thinking XXXX already Yes, results. disruption. It's sort of I bankruptcies is is associated disruption XXX Steve. really reflected

Okay.

So against going this forward? it's anything unknown just a at cushion time

Correct.

Piper question comes Goldfarb Sandler. line Alexander with from next Our of the

It's Alex my Goldfarb on cousin. for

as Brian, there's Stacy you since guys there's lot levels? that, you've retail, do Basically, view So I'll just pulling you're about But great a leasing able co-tenancy. your back we just one on up really been in thing. a beginning -- but pulling the are on out. Jim the talk I'll not you're use question showing help bottom going to at renewals, when hey, stuff in -- what do or on can restrictions, it's line. of look leasing, back you

but of where some be leases, end realized things affect of are won't some those can So until immediate you the today. change

of about you've the to because tenants with talk, So what terms pull year, Brian, some NOI. terms able of to to quantify year, that actual versus to add versus be can back? the gain leverage Just to want they now, able NOI this used to in those able leverage guys been to you you an just you're command benefit last been in able you've more Brixmor.

growth, his of terms see Jim in remarks, I think Alex, I'd in metric our can start every retention. that opening where observable with did it in you our rent

to terms in We're of parts rates mentioning, X% you're the when over low the portfolio board, broadly some have to push intrinsic the of we of we're able X% tenants Xs. that then with to lease have mid bumps terms in the been you And rent small higher. close getting to growth shop to country in across X%

improving we're there. So

that You able our to CAM look an at the immediate margins, as caps be our impact been able paid investments you're for there, portfolio. to has to across team we're the seeing lift making get

on flexibility. team other is big that And is laser-focused our the then thing

been up look Many freeing consents, we've of of many pandemic, those during those to discussions renewal we're consents. but forward, in we need bring also You at that freed up the able the today. redevelopments

at has the You done well. in freeing outparcel outparcels lot our across We've work the the a great segment, team been right? portfolio more up as look

So you're seeing this.

seeing in through pipeline. it are the come You reinvestment

lease operating it terms, making it seeing results, intrinsic You're through those come improvement come on. a in in seeing but of ton you're our also through we're which

from question with Khanal comes next Our the of Samir Evercore. line

of that of should about year. opportunities. I in How strategy sort you're kind net we think mean in seeing about were sellers you Talk of what terms 'XX? acquisitions, last

You bet.

on about smaller million acquisitive we $XXX very past us position Mark? look months puts the which for expect be found us a remain again, we of in also at to assets But valuation, and we attractive pretty we more ahead. raising as and the always, that as year, proceeds liquidity quarters during a to disciplined. capitalized disciplined, So at be

the to Florida for capital we starting compelling work I putting like Texas seen, is other higher -- capital in opportunities parts to first in to think, at by incremental definitely as capital here, year like Yes. 'XX, where very see transactions Look, market the have move look building say, as we're have a going-in mean, I'd say high we very a we're I yield and thing of with to year work, would at and we've expect our seen continue market a we be as the so, allocate have the to as acquirer that pipeline mentioned, And liquidity into than Southeast. markets that we'll over and use the that assets. But we or we last Jim slightly rewarded here assets be ago. assets do finding our to raised discipline yields do net we existing try that

I'd we assets. other is, say think The very thing opportunistic we're when our program, always look disposition to you sell about

Detroit closed And we at of continue adjacent forward. example, cost the in favorable just like drive achieve we zoning for For College land low in January, at cap. in back very to Park 'XX an to land asset in did business to we mine a capital very mid-X

parcel working on exact in California large fact, currently In Southern for a that strategy.

question next Greg McGinniss the from with line Our Scotiabank. comes of

highs congrats new So shop on the occupancy. in

there's those But where as on each you're to continue to occupancy We fill. records remained fill get Just obviously, leasing quarter. new less you strong? as continue space has up curious space, to expecting pushing

does of about terms how against could top balance So number go? kind points in year think that XXX line risk? this that the you're we of that talking And should that about how basis where of

perspective, credit both get as we occupancy and traffic these vibrancy. And the small result really the follow-on we benefit improvement as and value-added from shop how them, a in continued about rate assets we substantial of terms a is enjoyed in reinvest we've Well, and our things think in that shops. of a as plan move one our tenancy of small overall

of we've shop in where for can So have about small of anticipated hundred couple terms another talked it points occupancy and basis of time some run go.

heard Bed larger Okay. you success? been there. filling the smaller And that some could follow-up you've or be talk just about for of tenants We've having where about of tenants the might the tenant But categories a Bath. the in-line backfills some

it a Jim of what really it's shop tenants. terms question. And quality great to Greg, credit highlighted the Yes, speaks of our small in

that's lot the QSR great go that some it's or from national multi-unit which tenants been new those there's of of with. And business take we're So the in a Medtail, it's really whether are cool to doing different operators, companies fitness whether public category, or wellness franchisees, able country. we've boutique parts from concepts --

You look at Hot expanding Austin, now that's Texas. out Angeles, truck started Los a nationwide, Tacos off Dave's at Torchy's Chicken that in of

of great this a And another X at Grill restaurant operators asset Bakery I opened into is Capital added lease one portfolio. and are we will open a this a retail. We tenants and we So of really year quarter concepts great looking space at think our with a open-air the in we're former bringing Pier it that to lot that cool just one. speaks The the how class redevelopments. -- signed later Tatte

the they're strong. a incredibly continues of ton So be credit to small centers. strong, tenancy traffic driving and very quality be continues that The depth shop of our to to

what with pleased really remain we we're So seeing.

credit to possibly don't quality upgrade I versus, know, XXXX, XXXX, quantify some the timeframe? you Are able

instituted just calls, of underwriting were. I we to portfolio it terms from get of can of business. That's where we out exact but Yes. be we we today. it's down our of our talked pre-pandemic. credit in and pandemic about tenancy XX% say, were the on broadly, where represents our from about things would the I'd down I coming say some going prior local number,

an financial getting for competition selective shop Our plans, work. capital asset tenant best small the has to allowed then be team we're understanding really leasing business that our with group, getting of putting an the really management to operators of really And understanding partnering come space us in. to with the

leasing local and teens, improve, high overall in as improved coming that I tenancy, the the see week. what's to it's the in terms see of into every terms it mentioned, committee but in we continue of we So

and see of portfolio it overall security the And across also performance. We bar so forth. credit to, alluded really and we've collections as Brian terms in of terms underwriting raised in the and

how weather is of by portfolio encouraged any really cycle. we're to economic positioned this So type

Mailman next with comes line Our Craig Citigroup. from question the of

a I on to kind sense topic of basis risk-adjusted are to of appropriate program? the maybe you how a versus redeveloping? redevelopment cap just where spread spread of acquisition some versus acquisitions basis? guys of you about and And want maybe rates mix differential a think what the or back the Kind to here go the in acquisition to on time, just yields here get sort

ways provide as reinvest, those that Well, as think importantly, is acquisitions to focused assets. we're I what we current growth reposition income, but in good also on think you're to alluding good and ROI densify about

a So investor. value-add of we're more type

So reinvestment how really capital sites, as And they've in growth in think think got opportunities, pipeline underwrite attractive about very acquisition getting higher the that's returns. incremental order. by we see rents, redev, use the through et think driven hurdle we're of to in our is about below-market capital cetera. And those the we rates, we we that marginal pad that about where it. best Obviously, our ROI

reinvestment external First, then redevelopment to to the and growth.

that 'XX then guidance. separately, the maybe And a gave and you fact here I appreciate just helpful. guys That's follow-up

'XX relative the off to could some burning on of that get commentary in sort and that have commencement of I looking of the to commencement that the of things the drag known quarter a guys happened to given look the are as already that, that with of pickup and just Bed 'XX this 'XX So off the burn maybe some of you this to other from at kind the some this on create tenant strips downside. I backfilling question. timing? of 'XX, from guess, some sort timely tenancies, some headwind related those relative MEL some the issues of of of drag be in what done lot of Bath been But kind pipeline,

Brian. is this Craig,

we gave giving because 'XX. I just think without guidance 'XX

space what online we talked as into terms Bed in coming XXXX the backfill you is I Bath about the XXXX. XXXX, look of late late at think

just ICSC, the on tenant national to store today, capitalize were to plans If for plans continue you for baked we XXXX, about about we mostly we about New opening XXXX. think they're As right? York demand tenants think talking environment,

doing getting execution may So open across those portfolio and we last take standpoint, the that an we're tenants year quickly from the back it's year. potentially really accelerating addressing back space what and this took

question next Our Jeff Spector line with from the of comes America. Bank of

just to line question, of XXX what you And at to impact top bps put compare normally First into the that into 'XX onset to the compare year? would context. does put How that actual? does guidance each how

I visibility think you about higher of if that the amount Bath had assumption of year, the cushion, others, had and because the think and will, it's line in interesting going we we during much into top that year. Bed a if timing on you similar

we're we is As variety deliver to handle wide X.X% we of look at growth, what compelling and to XXXX, we think outcomes adequately pretty a believe, continue provisioned X.X%. to

bit a perspective position, you and that to to I puts continue gives So kind of a outperform. little of think, in us

process? you're on XX% opening delays? meeting more like process, process in opening ABR seeing the to anything talk Are then ways Are that about you or a Can -- the new improve to from question vendors is of with second any little bit today? And commence the 'XX. to store help you store with there ratably still the

question. great a it's Yes,

right? ago, last about flexibility delays that's store we've of pipeline. opening tenants' talked standpoint were and Whether a years, one tenants -- few from opening is it, few best there out really think in the utilizing years to a practice chain supply had that things hit come existing I the conditions,

Jeff, to the HVAC, quickly get and existing bathrooms what we've teams they doing, tenants seeing was of counterparts, approve see utilizing existing moving terms quickly stores place, could that in the in at ultimately those changes we've in their that, seeing then not have year, national utilize been things dramatic in our can definitely conditions. And deals with you and ahead partnering whether how that seen forward and the that, were can with their auctions we after opened. retailers facade, committee, So of making last plans how how keeping the purchased operating been

in existing upfront talk we're that. have our understanding as tenants, ahead can to can We them really and So of about conditions. get a discussions of We negotiate we great with those. that

and a helping the really leases tenants frames our terms with negotiation we've does that's standpoint the with time then got on partners partner. legal to lease So connecting the with connecting legal side. accelerate in of conforming all relationships great on as owning from side well, Our across well. as We're relationship, retailers. a on call management their go-forward And we team just establishing side the account connecting national isn't the it operating business from portfolio. And their these We're perspective right? side. on a legal job We're connecting the team

also the existing stores tenants them of things quickly, off. environment, to more take wanting terms to really are get too, conditions. paying in open And these all those allowing So of

really So those combined. it's all things

Dori Our line Kesten Wells the next with from of comes question Fargo.

XXXX April the Brixmor CFO March, time versus Brixmor? needed XXXX announcement. in I know you mentioned for a CFO But in what's the specifically, frame the

somebody potentially a and who in partner, the seat. is need the somebody some has good who We capital strategic experience markets across

and We good also very think need we've breadth remarks, interest somebody by cultural mentioned demand I encouraged and going candidate. both the opening the in of great depth we're had a who And role, and is a we're have in to fit. I my as

retention you year. move level over would time? to this And think XX%, portfolio up the your a from to of you around your I for retention medium And continue Would what last normalized rate slightly up over Perfect. expect term? is view as

retention rate were Again, by the encouraged This we is Brian. last trends year.

be as mentioned. Jim hit to us, We for continue a that, record

brought would You we've that across the we've us going great tenants that with to tenants higher. anchors to the to staying stay, trend made they're want higher continue Tenant and with portfolio, in, not that to stay, from improvements prevent from higher. expect at want space upgrade the take it we're to tenants, want the see back. think space and can trends doing occupancy ability expect to back those to portfolio to to If we I go but perspective, you though we an opportunistic from just our take not being rents. It's

given You portfolio around environment continue some you're everything trends expect the as done may to those fluctuation quarter. to grow. see But in would to we've us seeing macro lend a the as in well what

question of next Dijkum the Our from Compass with Point. comes Floris Van line

that is maybe one, is the So when can highest pipeline, it one And SNO if pipeline? is forward? actually, questions, the the your fill space. sometimes stuff for up? -- you bit pipeline critique impressive. The this it's always of Number And you hear again, can the outlook X that we continue in happens in little upon of touch It's there your going I that guess. the large. scale size a leaking Or SNO

Well, moving important where think which build I is is that is about also thing going, up. occupancy think to the

So marginal we're maintaining the through leased great that great that leasing. activity spread between we're and build

So the but good revenue 'XX quarter of pipeline grow, darn And and demonstrates in pretty drive beyond. not strength how to visibility successively. how through per deliver really more we terms on only gives itself we in of it we're that outperformance the how growth, 'XX, going

being now we're Yes, move course add, I at years consecutive just lows. again, outs of Floris, normal X would historic

XXXX very bankruptcies the addressed returns. rents, tenants, with compelling higher quickly accretive better team Our

upgrades space of for growing build those we I making that despite we're taking we're as So think that do back. And back. highlighted, spaces Jim occupancy some the get

to in a It's pipeline through environment. with in look to pretty good of we're leasing ability it. on grow. team's of good pleased the It's our look actually through So terms capitalize terms overall that continues how

that do outlook oftentimes on us what the ABR? -- think terms has is because been what with Maybe you terms follow-up been over of see reflection I quality. What's the What part a your of growth the average ABR your viewed clearly, when started ABR? of next Great. And I you mean you is as portfolio to -- and I couple heading where in the your when here that is spread that Jim, tenure my in years? peers Brixmor, ABR, mean, relative since started remind at of obviously, of was in --

Really appreciate the question.

approaching it's also we're but you the XXs. signing, $XX, $XX it's it at the started, look low range. we So in in at if when today, which the marginal rate And was

a So to not of ABR, the also our the be the but we're very centers, speaks compelling average demand quality tenants in marching to that of really steadily centers. only pretty to

highlighting for record trend of. we're and a that. track you proud thank So a very It's that

next comes line the question from Haendel St. of Our

Mizuho. Juste with

first to go So question, back here. on redevelopment, just your to pipeline

You're up XX% about year. up from time I last is million, $XXX to about think which this

yields mixed-use or would my limiting returns like that meeting of expectations? the of repositioning? the And And to question that you pipeline in in your not large proportion densification near it is, it perhaps So grow what then like Is versus traditional potentially to? have time term? Is form funding? would to lower factor how what's you over

benefit We're going going leases velocity from million pipeline got $XXX delivery, to Haendel, a disciplined, growth. not significant visibility that your on spend on of you, that to have, shows velocity, always of really $XXX a years is what until albeit and couple $XXX expect And between projects retail we're million. closer signed to really deliver remain in in committing we any place. And to nice year, million that of as continue and in forward we where pace be to to this you're do you've capital annual terms of

think I at level. So good we're a

repositionings. we're delivers. which with velocity balanced I outparcels, really the again, of benefited in think And it's that by terms redevelopments, income anchor

line more actually Appreciate to normal do little year? XXX Great. years would comparing top that more in follow-up, maybe you into points talk tenant have that versus your And a and the more embedded churn, a normal and disruptions what that. nonrenewals you actuals a bit more of maybe you in 'XX can basis put about in where context

are outside assumptions When move bankruptcy of renew who we our you as out. We ground and up, building about period, right? individual normally the as think -- to specific very tenants expect and have from ultimately starting budget to

Over bankruptcy with within that we the couple expectation years, last of line. of the embedded an activity, some have

have XXXX. basis points compared this and been bit higher seen in XXX I what out as last year, how we ultimately a think would see little year at it through to it have would when look plays in I think, the XXXX, we'll you

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

on a renewal question spreads. lease Just

industry. lease kind across the those power what shop renewal at both At what you were higher, well seeing something record drive given the occupancy, guys think point XX% -- things in are spreads on side, going from more range You we're to have pricing the do to industry? you'll of the

This been able is question. great a has what Look, Brian. do. It's team we're proud of to the

of consecutive mentioned, XX% quarters XX%. over As last now growth renewal we were X over That's you year.

the higher. as across as improvements As the to expect it's renegotiating the portfolio, as We're able continue to -- renewals growth in to those strong, we're initial not getting we renewal to mentioned getting to that be we that environment in growth renewals drive We're renewals. call, make annual CAM But continue on earlier I just be continues well. flexibility as we clauses. those getting. We're also

look rates So we've see a improvements. make the those I we But higher, some overall, given by space, growth drive on if in mean, at renewals. long encouraged whole, been, rent pretty in we continue look think we're what the as fluctuations seeing on you particularly But where continue renewal quarter. I but may just term, to you to we're you

and said more anchor in of the call, one I agree one ramp progress process? think, on make bumps. they're kind of trying other are to contractual maybe Where that more to another companies On there still that those getting anchors bumps. And you

X% on annual -- getting increases the not incremental It's It's progress, you're not deal. maybe every right?

initial But may rate the to maybe to That were trend strong year we're that we before. continues pushing that you're rate Although, our anchor year have. improvements with last we pushing tenants of ago maybe highest to very allowing to if with is used competition anchors, with initial getting We that you're leases national it us higher. that right? to those we're tenants -- increase, have that make signed XX.X%, a rates some, outside the at the XX%. And ever for gotten that not with XX% space getting

allow improvements. with freeing terms uses whether again, leases medical that whether I into our are space. So to up would uses that is up able is anchor we're that the hit fitness of more making freeing to get outparcels, And marginal tenants, the to we restrictions or lease those in kind of non-rent

that. I is think environment we And So us to improvement. continue marginal the do to make allowing

Our question with Bin Truist. comes Ki line Kim from next of the

average When I just a a a lease lease that Or better 'XX 'XX price other -- little think little bit should mix? the could in years. look than at is Is rent your you expirations, bit be or the do we normal? lower than

issue. signing mix high leases a around at out have if look, of been square you years, the next a few anchors, for somewhat keeping $X. it's deals But those Yes, single expiring, We've the digits particularly we to $XX foot. in $X

visibility to So in rate. ability us that really drive terms to good our continue gives of

further Okay. to the of high-profile I And of going bankrupt, if just but back a XXX a basis up end think, if downside general, is understand in want FFO. if beat loss Lots just points, to or horse here, like more tenants at-risk dead not people to these going reserves there some credit to they Joann's Big

trying to what gauge. I think we're that's ultimately

If you could that? provide any on commentary

Yes.

just adequately we've we variety wide before, As provisioned of done, for outcomes. a I as mentioned we're believe always

top do as educated outs, make the and all we is of buildup what point with to talked view portfolio and delivering et nonrenewal that the to Steve decisions provision. and assess And of tenant assumptions that we risk So still industry about, across where and top line to set that, those the on about with strong, certain make reserve incredibly space-by-space a Again, cetera. levels. we're move then as look

Our comes the of next with Mike from line question Mueller JPMorgan.

little CapEx and you SNO CapEx 'XX like 'XX pipeline? see and looks Just in over trending 'XX, in the where in had leasing about 'XX? curious maintenance a $XXX and you that It million given

Yes.

expected CapEx we Mike, say about, we talked Just trend -- in time. that down CapEx to maintenance over I'd overall,

see to that expect improvements the started to see You portfolio to to last in are and our as we continuing year, that off. continue pay

on take would we mentioned, the a disciplined. Jim expect just the conditions our expect in among then do similar ultimately I incredibly a perspective, consistent to to a a competition to trend using levels get CapEx maintenance ago. But with down. from level us similar a expect tenants $XXX year We're being to reinvestment team about space existing that mentioned, number CapEx be as those million trending scope And CapEx. to, more level year for As at we But down. I million keep as $XXX to were is leasing

Linda Our next question line the from comes Jefferies. of Tsai with

faces maybe board, open-air demand retailer seeing across individuals is I like greatest for? size talk the realize the for there are what you for but demand just about

it our about Yes, lowest earlier we we talked and the have that Linda, availability we call, in box look, have. had ever

there. kind in wellness specialty, range, So tenants are that whether mid-XXs apparel, size box segments, I in think strong we're value the of definitely grocery, home, those seeing demand

the whether of look of range, world, is well. And the foot, XX,XXX there the the there's outparcel of and tenants, a that the square I'd Belows You kind in demand junior third to Five point size in Sephoras, that that Ulta, anchor one as then space. in range, lot that's the footwear

We have which like opportunities new CAVAs in world, whether existing markets. tenants, are still of expanding, that a tremendous Chipotles strong bank it's Chase, outparcels the new amount of looking really competition is the for really, branches the just from available and at

there, wide I'd few range there's most a of the So a the we're say gave seeing I I spaces. X are where demand. those think but

transaction And then my the question second is just market. on

mid-X recent cap rate format be to mentioned cap do You a for transaction. the assets How would vary the for across the buy? considering you rates

Yes.

important I question think cap really about most the rate that is part size.

you tighter. as down So are rates cap go in size,

that's range, to and net you as could for that higher certainly for So XX look million, million, expand we're us. where retail if rates seeing XXX opportunistic $XX million $XX be you're cap tighter seeing to that higher, cap out you at rates $XX more that

Our Okusanya next question Deutsche with line Bank. comes the of from Tayo

of about provide your or a you talked any exit commentary trying to assets get where X around -- to market sense may Any in out, talk just makes market? targeting? of particular whether regards have what that that not X places you're it kind some scale, the of and lower-growth little kind could you're of In dispositions, -- Yes. also you about can you bit kind to you

cost as an consistent exiting. And That's be exit pretty against we it's and that single our be harvest been that those and have asset other going said, always what one balanced, see fix the has we're side. opportunistically. of where to can capital to we'll to and opportunity value. strategy for of we real some our mean markets evaluating going where opportunities to us we're to I IRR looking the of balanced, look monetize Yes. asset on assets we clustering always you do and hold With

to I'd hand for session. concludes back closing Slater like it our question-and-answer This remarks. to Stacy

joining today. us Thanks, for everyone,

this conclude today's Thank you and Ladies gentlemen, participation. your teleconference. for does

wonderful your disconnect have and a day. time, lines may at this You