Brixmor Property (BRX) 29 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Samantha Strong	executive
James Taylor	executive
Brian Finnegan	executive
Steven Gallagher	executive
Juan Sanabria	analyst
Mark Horgan	executive
Viktor Fediv	analyst
Todd Thomas	analyst
Jeffrey Spector	analyst
Floris Gerbrand van Dijkum	analyst
Ki Bin Kim	analyst
Craig Mailman	analyst
Alexander Goldfarb	analyst
Samir Khanal	analyst
Dori Kesten	analyst
Haendel St. Juste	analyst
Caitlin Burrows	analyst
Michael Mueller	analyst
Paulina Rojas Schmidt	analyst
Conor Peaks	analyst

Call transcript

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Operator

Ladies and gentlemen, good morning, and welcome to the Brixmor Property Group Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Samantha Strong from Investor Relations. Please go ahead, ma'am.

Samantha Strong

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

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

James Taylor

'XX, on of outstanding beyond. third Thanks, another importantly, of of yet everyone. expectations strength performance and Steve Collectively, continued visibility for Sam, proven with the This plan, quarter will results detail excellent of team. growth talk quarter in increased durability and portfolio and morning, good was Brian momentum and and 'XX and our these reflect the that about in the more our transformation our

of cluster efficiently where portfolio strength leasing we centers continues continued observable growth performance a record is upside. and from limited from redeploy spreads, accretive in harvest our rate, to ramping and traffic, outstanding capital that across external customer we every sector-leading pipeline see reinvestments while and metric Our reflected continued delivery occupancy

at better ability bringing second capitalize to we opportunity rents. And strong expect have line for deliver which also tenants proven continue be we value in to disruption by drive consecutive our course, on as discuss, X% an to will tenant better again, bottom to growth, year. We Brian as FFO of the

earnings annual regions South the quarter, realignment Midwest to Texas night, As we and into noted cost and that move of last scale of the implemented These more the closer regional in moves which real to investing realize our combines forward. we changes markets we conjunction $X.X expect North in million, enable realignment, our our these in also with severance as while to efficiencies of across our strategy a benefits region. we estate. In savings recognized the a clustering talent about us and during offset than release onetime

acceleration with efforts. We are of pleased very capital the recycling our

us through patience and including powder of over the dry now pivot improved and years of to year-to-date. the last Our our capital of million $XXX cost few advantage built have we dispositions take positioned

During million million the quarter, completed of acquisitions with $XX we completed $XX year-to-date.

] Hilton in In which which closed Boston, affluent [ acquisition a addition also shops we Plaza, during very suburb we assets. to grocer, quarter, growth at NOI we X a drive the position Acton to is there asset. by productive Roche market Brothers portfolio in are increasing the fresh Acton of market to our and anchored that the is closed highly our in on leverage can of confident located Head,

X% million in at $XX same XX% the over in-process accretive share under acquisition more million opportunities at an about the we quarters. At pipeline reinvestment, of coming time, acquisitions we've our with continued on these driving value-add exciting yield. have expected us in control. million the a quarter Importantly, yield delivering for Look value our also $XXX focus a additional $XXX through to

and bring partnerships our Trader alongside Whole centers thriving tenant valuable Foods, in our ALDI, highlight projects grocers, Joe's, and including in these as Importantly, we invest Sprouts.

the future. to We we are as even look more excited

course, full commenced commenced robust to rent unparalleled Our a $XX growth steps, our provide million, million we've forward which continued combined the operating with commencements accretive leasing of improving million and ABR creation discussion deliveries, a see turn pipeline sits reinvestment year-to-date, commencement rent quarter, Brian? stacking and, but the for which the more with I'll contractual quarters. rent $XX the not of attractive our results. beyond. With of in and 'XX signed in we'll pipeline the $XX yet of value call in of on benefit visibility even detailed of basis coming its over that, at These Brian

Brian Finnegan

Thanks, Jim, and morning, good everyone.

their on platform. demonstrate Supply leases executed activity, capitalize of per ever That cash supply-demand a how shop sets feet portfolio not our be continues base percentage leasing looking small positive including results. X to operators to tight remains Joe's the open-air at our leases combination of low of backfilling the centers team it's results spread occupancy led Denver, from drive ABR leasing once new square retailers in of new anchor quarter overall our to foot. with increasing to our with and new of XX%, basis transformed truly begins drove along this imbalance evident the team Bed quarter of Brixmor square renewal million with XX.X%, open-air quarter merchandising our This portfolio, suburban new best from again respectively. The another that XX%. a been for small record centers grocer record as of upgrade in team across our during grocery-anchored the to move-outs The again demand X.X of former Bath but and box Trader team a as remains in broad and low rent blended as at a enabling only results by our apart track while tenants Our strong. best-in-class and our expand environment XX.X%, to is our shop highlighted retail, range portfolio $XX XX.X%, once included this these industry-leading that are and is across rents footprint. But rent our the that and unique to mix record it's

upgrade continuing also the Chase added Barn, from home in in Shake We capitalize locations Beauty Third also is been boxes already spreads its The spaces Bank, and fitness, great XX% of recapturing at welcoming team team with Burlington, segments. anticipated value markets of and Fifth Lots, at Ulta focus these X process and we more to like new multi-tenant well And and the backfilling furnishing to with while apparel, it do XXXX. Switching rent Whole to the driving we'll the capitalize has resolved month redevelopment last while great traffic-driving accretively mid-XXs. projects the our we on quarters, we're see internally, space opened like of in the Philadelphia during Foods our is rents. with on rents higher we in Fort and over expanded from than Lauderdale way ALDI, Houston, be long Nashville, and suburbs, tenants new in demand a some new Shack, on able recapture Bank, reinvestment. within tenants we with and of Boot outparcel merchandising Barnes to Cava. The grocery, first of the SKECHERS, including add Big to Included many company's at fluctuation we're First occupancy that scope new Watch short-term centers late we to was the as tenants in recapture this a where to start adding much next in a the may with the lease Noble of were outparcel added 'XX & Chipotle excited quarter and which space, that $XX several paying to expect million the opportunity and

close X.Xx open to location excited executed Market were at prior in rent. a we Bath former another year front, which stabilization we Bed Sprouts Tampa the the in suburban On Farmers box last to

us good of the have growth Steve the Steve? transforming call that, grow financial to we visibility but us of business acknowledges portfolio. our done of not want only more With detailed as I'll gives this end approach work over to a the that plan. ever as team for The the we we turn remain our in to continues retailers results. year, forward which has review in expand, our on list with As confident

Steven Gallagher

Thanks, growth basis points NOI XXX company this quarter, driven to Base platform we continued of of quarter strong was last the growth Brian. from X.X%. rent to growth. same-property XXX FFO growth in NAREIT on report accelerated as growth strong NOI execution leasing I'm and to the in share by sustainable points continue quarter same-property quarter, third long-term pleased another commencement strong per to basis activity, position build for $X.XX across occupancy. spreads, contribution our reflecting

contributed by points, basis addition, XX build expense In in our occupancy. growth net reimbursements driven

lower during growth half out-of-period quarter, uncollectible headwind to in from of deemed year revenues, points expected deemed basis XXX growth. the end improvement discussed deemed still of basis total current uncollectible our revenues revenue year we collections due continued the in bankruptcies. to the to last same-property Accordingly, on reflecting revenues credit of at the uncollectible XX the detracted to the of and strength tenants. As second quarter the NOI impact XX points expect to We be cash a call,

and basis capitalize on million spread continue leased we quarter the annualized commencing from decrease build as $XX between of ended occupancy, XX the We rent with a quarter base last a to point strong basis despite in point XXX quarter. the leasing approximately environment

signed of pool growth. commenced rent. includes net Our million size a The the for totaled year pool our not which not but last commenced signed has but million, foundation strong $XX provided over of new $XX

that and commences is XXXX first and in-place raising September as took to liquidity at quarter plan. which under our us next per execute X.Xx, time well to balance of an sheet gross we of we of current growth average We perspective, year the At positioned annualized a on XX, the basis advantage an million over rent ATM cost debt $XX $X.X higher to than for XXXX, leaving capital our into continue ratably a of improved of our business $XX.XX. in expect billion our average rent current a was price had EBITDA foot $XX.XX, transacted square rent. From on since equity XX% this at total

FFO outlook, of same-property XXXX to conjunction terms in X.XX% rent. to XXX from have we NAREIT a comprised basis increased point contribution for range we of base the $X.XX our our a share. increase growth NOI of In forward X.XX%, of to $X.XX raised with NOI to expectation, our same-property a have range to per our guidance In XXX

annual has an increase outperformance a maintaining our dividend $X.XX, us continued ratio. positioned payout of while conservative X.X% raise to to Our an of rate

XXXX forward growth strong X% rent spreads. NOI renewal continued of Looking by driven XXXX, commencements, and expect cumulative impact XXXX growth, and embedded to rent we the same-property to exceed

coming the have but with a value-accretive our to And pipeline us that, transformation positioned the the the that into about will stabilize signed Q&A. excited are in future and visibility significant has commenced operator over We year. we our call as growth not with turn for I reinvestments

Operator

[Operator Instructions] line from Markets. BMO comes Sanabria Our of first Juan the question from Capital

Juan Sanabria

bit you investments could little market. the hoping Just a about comment

said raised some the ATM time you You for since like first 'XX.

just for about the if more is talk at seeing So you're more point future that curious sign a that some it's a you not opportunities, could if acquisitions. or bit just little this if rationale raising equity for

James Taylor

We, in an you, do in see our outlook terms cluster growth. Mark? of have markets. further mentioned as I remarks, Juan. that accretive, my our We in importantly, control investments that improving $XXX million assets under are Thank key of about external

Mark Horgan

Yes.

assets, feel the for that healthy that certain that we've really the some but we've core stretch into is into open-air retail and assets as transacting overall far on. assets As certainly seen Xs currently. Xs, need very it of market been well looking does particularly the the the We've like the buyers for it's for been market,

the over few I last performance today about institutional seeing certainly like you're that years. today. Brixmor think platforms I think in striking that's driven market most of by more interest And a really is retail lot what's open-air the the

for I think retail, boat space. and that's additional missed earlier access of kind very try on in the and investors our and open-air healthy get rushing to think they're institutional I

James Taylor

continued drive to important investments at the Yes. we're and I also outperformance. recognize leverage looking do our platform think really growth what's to And is

at issuance our under that, opportunities, some look through we accretive including as we so And very see ATM.

Operator

is question Scotiabank. from next The the line of from McGinniss Greg

Viktor Fediv

pushing follow-up question This Viktor a Fediv signed whether tenants ask your are on commencement. Greg out expected is McGinniss. contribution, their not occupied kind just of lease pipeline with I in on general, and wanted to

weighted? is this or terms pipeline not signed back distributed evenly XXXX, half to in of occupied contribution XXXX So from more

Brian Finnegan

This is Brian.

to but encouraging add side. Look, getting Just fairly first, seeing to The really particularly was of visibility quarter part I in $XX growth. leasing push the openings. is not it the store Jim that of second commenced the to your I we're starting the really is guess, anything, this despite we're for gives of $XX box future touched on terms XXXX about, the full which we're of end at relates out. box really things not the the in on tenants that quarter. point. million seeing If million talking speaks for it are more category question, deals as kind demand, that, to XXXX on in that as continue pool, us and mean, on, signed good at we commencing tenants

terms in encouraged in pool. commenced see with not but conversations to and good we the really of but So the overall environment also the growth remain tenants, signed

Operator

from The Todd the next is question of Capital KeyBanc from Markets. line Thomas

Todd Thomas

advanced to curious, I'm back utilizing the negotiations, And expect those net then acquisitions up comments company an or we around should go over $XXX tied position we've increase activity questions environment to assume to ATM relative you in your million of levels? the the an activity number the from more we look clustering to to about having current at acquisition as just wanted strategy? disposition in in should again. the balanced we investment the Or seen keep further increase expect years? just toward and match issuance that ATM last should the I a

James Taylor

of believe given source we I to external funding accretive ATM of our match I cost equity. primary under our be be continue And that Yes. capital we growth acquisitions think the recycling. will mean, to to opportunities look nonetheless fund will for

ATM a we vary acquisition quarter do assets through but us to we've quarters activity with appropriate, to of balanced. Obviously, ramp-up a expect but a being about million gone issuance. and, be into of net for going $XX several the see if dispositions million acquisitions, will over of quarter of relatively it's So by mix that year expect $XXX again be to in seller funded

Operator

Spector The next Bank from from America. question is of the of line Jeff

Jeffrey Spector

the potentially market? damper on Or to transaction buyer-seller the transaction a you X something going Just changed that that cuts rates do forward, follow-up narrowed come to here market is and gap sellers that less the to puts continue? or sparking rising, again, market. you think that has has With on really expect

Mark Horgan

I'd rate market by the What driven Yes. movement. That's say slower today, really driven that's market you're seeing election. a not the about by but overall little certainly

be inbounds year of the out I think a now. the be as And market certainly, in right this we're get coming. lot folks build tons of to wanted tons for market we and earlier ready, assets of getting the on are towards, example, December ICSC, and

where I So been selling of smaller particularly small pretty healthy do investment right? That's a going really asset and see attractively. market continue think pretty going to assets into for market forward, we've advantage assets, assets to recycling the taking you're

really So election market around again, not today slowdown the the we're seeing small that in that a expected. other we than,

Operator

Compass van Point. The line Floris from next of question from the is Dijkum

Floris Gerbrand van Dijkum

couple of the question has front leasing raising capital me let sort a on on of been on and but the questions My operations ask front. times, you addressed a

a You in and have about Maybe is occupancy beyond. obviously where your can you -- your much is pushing levels that you where peers? do do in room pretty you your And the the talk bit lower shop side, everybody also, split and How pipeline. of little SNO still anchor particularly probably your see occupancy pipeline. to between in how some room shop more occupancy, -- than much see record more a substantial

James Taylor

Floris, thank Yes, you.

for upside to in We see opportunity occupancy. continue

have the that importantly, to expect to have but new drive, that what we're by lot its small we're our lower to better fully and great and so replacing the of driving rents space. differentiator continues key seeing momentum drag of through also and of visibility because strategy reinvestment just a gaining with pipeline. continue ABR not growth is our in shop the we on that we in bringing occupancy simply tenants. better rents we're of in And That growth think grow a I spreads

other stacking highlight just it's with SNO growth. to The that is I would respect thing pipeline

commenced in new in $XX As my first million the X of ABR quarters. I we remarks, mentioned

expect 'XX growth fourth that perspective continue which benefit of won't the we the see and until in to a We 'XX. quarter, full trend from

So confidence importantly, even occupancy It's driving better elements. us not it's better lease-up only to what in through simply but being part over more both outperform rate. not It's gives driving of able term long the alone.

Brian Finnegan

the breakout Yes, in SNO $XX $XX of a would Floris, is I and over the where are terms $XX the about more the is anchor X on that next be anchor. and last million of excess our in your an at those the What's million is to encouraging those add which X-and-change of over even would foot, expiring question rents pipeline, record that we options signed in a anchors years. just year well without

encouraged we more SNO the at. so, in remain of tenants quality and signing them pipeline, So in which overall the terms we're rents that the of but even

Operator

from Truist Ki The from Securities. is question Kim the of line Bin next

Ki Bin Kim

In what terms to redevelopment pre-leased your about that, what $XXX total total percentage? forward? of is question million, of pipeline redevelopment is going second the that And the of pipeline sustainable a is level

James Taylor

great the I'll years. take Yes, part. million over of several we reinvestment second $XXX the let part, to the Brian visibility next see million $XXX on But first

us through such with in pipeline as backfilling at highlighted $XXX today, have of a Foods his of projects 'XX. is addition Plaza. Whole as to which the We exciting the Barn underway we're million remarks, good going incredibly take But Brian reinvestment part

get can So as year. many expiry we before, And that the talked which reinvestment we X lease that have times we've is by at driven pipeline, about in really any opportunity. several years that, amount of limits

Brian Finnegan

those brought more as pipeline. some in had like Bin, year, last And projects Davis, bigger before Naperville on projects projects, we've on Chicago pre-leased even tenants. It's those at of encouraging to we're with them XX% suburbs, pre-leased we the on generally California, these the Ki Roosevelt, we in bring Yes. larger the even great

been in leasing terms we've the activity our them really excited with bring forward. to projects get ability and those So of going to ultimately

Operator

is from the line Mailman The question Citi. Craig next from of

Craig Mailman

maybe you at I but appreciate pretty year. giving being yet just to kind starts anticipating growth it's closer a where above that takes are it talk point puts the next of of is want this the acceleration this if today year guys like the just next exceed that to for kind Could commencement hitting SNO you next are X% maybe you to and year you go year. where of maybe just market I pipeline group coming on commentary and here, -- the keep guidance about on offline your it's aren't least deliver? you X%, the would kind back, Steve, from at for and at then X%, as same-store feels space that timing

James Taylor

I as to think, of occupancy to 'XX. that. before put for or mean, We're the the we the us better. gains, talked you rate, just growth highlighted guidance all steps, commencing Yes. But expect above about, the give to that not we've we rents rent reinvestment it and are be going deliveries, that points long-term which above X%

strength those signed our to leases redevelopments terms of accrete embedded rent highly good the delivering any we we the intrinsic So leases, strength. And steps. contrary, of see as slowdown. we and visible continued don't see are the If that in in improvement terms it's

our in So and better in leases, but growth when the the and we confident tenants. just 'XX pickup better collectively, look beyond, occupancy given you 'XX these not signed in given with given rents pretty in feel

Brian Finnegan

below rate basis the revenue. in think for thing just is points only the add, historical our run to the thing is just XX other X to of total think I there of months first well debt bad about

as could to that debt obviously, depending you're be on as So thinking that right, into we prove come a out headwind where 'XX, to expect ultimately well.

Operator

line next with Piper from of Sandler. The the Goldfarb question is Alexander

Alexander Goldfarb

queue, through with like the this questions It morning. feels with line drive the a express

it think the just year-to-date bp still Steve, expect I remains comp? And said -- and the to said the Is XXX. XX what as ever. debt, tenant XXX think you think same-store XXX the bps and in the bad headwind through healthy just previous was XX, basically the I can XX the just range, on I you Just walk like versus clarify, credit year-over-year seems it market you

the just we to store reason would same just better that headwind list, But a range understand And sort think really get there your happening? into watch to on holistically, you really in the see XXX you trying next back the plug? as to really a comments just historic year, versus don't So year-to-date. mentioned bp then right that's think is the that now bad debt or of that that's

Brian Finnegan

Yes.

as often of most percentage That it the about think [ right, talk of about a how takes and total I X/XX, sitting XX think And year-over-year the it just of we're in our to points about up some guidance, from revenue. comparability we bad important to the around way ]. of is basis total think revenue. right debt as at

south rate XXX, prepared and on we year into that so historical my right, last I end that. And the of year at XX basis XX expectations Our was the points we believe still that XX well we remarks, updated in run to would our the said call. coming the as to

debt we what hopefully are like at we've within that historically think just and where in bad frame we are year, seen. I levels the than So helps lower

in back the do And year way think the added of in the you're period. the think you're larger of headed same-property to COVID all cash really headwind I the some growth, you of XXX prior with NOI X basis on. associated an that points the sort due when anomaly right to to collections seeing items about period it's with

guidance we're still 'XX on then where far, And issue that, the we the impressed of really in creditworthiness think end just But that a comp we will very So expectations portfolio. we'll update difficult overall in year. sort that that of quarter. created when with so next our

James Taylor

ever to really improvement one in for to be space us recent Yes, the I greatest would of recapture the fundamental credit just have demand environments the see proven in the an of to add, we've bankruptcies portfolio. continue seen. And we opportunity quality

So it's growth a source forward. for us of going

Operator

line The next Evercore of question Khanal from ISI. from Samir is the

Samir Khanal

gave Maybe commencements, on I NOI year. how to over million $XX some the help flow-through of the growth, about of blocks that but you think building there sort of of know us rent this understand next the preliminary course X% the

Brian Finnegan

Yes.

sort really for just to QX, the to Jim growth expect next embedded we leases. think a building most you're year, we year-to-date what with think with of on point along in million importantly, pipeline think of your It growth you existing going see, higher top in, really to right? that, starts see in the where layering blocks this coming earlier of that's mentioned of now into it, on for growth impact that been right? year rent to $XX I to year, the that is along that's year. When head with online, come is SNO in a the And growth your hit only coming impact into that's I compounding and going that commence right? commenced starting So Jim going partial million of you you're that commence we've benefiting pipeline pipeline SNO get SNO So $XX about of that's the contribution. the where your the

item. significant readout contribution then have that that and So that the the that, we going line we're that the of obviously, in that's comfortable really provides why we as well X%. And be feel pipeline into to excess

generally as the bumps, and pipeline it's rent better pipeline pieces the well. those readout being then SNO as commencing mean, I So

Operator

line is question the Dori from from of The Wells Kesten next Fargo.

Dori Kesten

particularly this be the a spreads setting that expirations of Or expirations on strong bit to answers, side. on a shop your syncretic Should is up on the the small group the maybe there next year? but You you to portfolio, both for is something anchor few hit the for your and year versus a lease somewhat that 'XX remainder note? in low of of rent

Brian Finnegan

We're X mean, would growth this the across now Dori, years has XX%. basis our Yes, take of on I advantage going to ability portfolio. I team low broadly, just consistently the renewal demonstrated say over rent of

goes to as just square year those We've mentioned not around continue You signing the foot. that long next group. at market a the those We're what the added to the to we that anchor added this top of out of ability traffic expiries. we've this we've grocers it been but And to really deals see peer we environment term, the to forward. And tenants this percentage portfolio. rents look to done portfolio, not going the just but driving $XX portfolio, bring to we

So you do capturing well us our gives just together the but able been put of that forward visibility into going work good as as that really not terms all team upside, in to has 'XX beyond.

Operator

The question next is St. line from Haendel of the

from Juste Securities. Mizuho

Haendel St. Juste

slower quarters. your core is about quarters all-time but it's the bit quarterly dynamics I we guess question my Leasing intermediate-term is pipeline The at a row in but the here. and So just thinking here right? stepping from guess down is a So prior back was SNO the near-term portfolio a within of sitting still and opportunity than results high. few portfolio, the I And some curious robust sizable here. how should read

interpret should year? this Does that this is an X% peaking you I for suggest this. the core we base that growth potential your then end how range? curious perhaps mentioned is the on next case So of year, low perhaps expected or guess, more And

James Taylor

Yes.

said to and the be is guidance. the continues on we've fire thank provide is line expect that. to So we But the guidance we And X%, detailed not bottom detail leasing, 'XX. you of is provide business volumes and as we'll in than Haendel, more you, 'XX the look the you a importantly, going as bit approaches expect leasing, And occupancy. But to to cylinders. the leasing all moderate at benefit would as be felt full the better portfolio

the into year-to-date, the not of benefit to of rent quarter, plus million those for full going in have commenced tremendous visibility to reinvestments the continuing 'XX growth but and $XX effect we that you're delivering you $XX million commencements, with we've almost compounding signed at beyond. that commenced the what $XX we along of plus in As million in rent provide over the legal, have stacking new look see

very we're of rate. model biggest in growth grow mentioned is pretty and our in and that beyond only growth we business we've able and in on transformed set And expect, 'XX, records in from question, because of outperform the 'XX, it attractive her to new not driver portfolio and to is to which as to continue So occupancy. rent bases occupancy, the particularly dependent being confident and as terms Dori also have continue growth to rent

and positioned we're how we how to like outperform. actually we So like continue will we

Brian Finnegan

that to to just in at a alluded end some X address it's it, it's the million of of we're pipeline, lease we're been add, square would boxes the It's today. the taking here and year year. back new GLA feet legal to highest the Jim starting in I close that

So approaches we with activity quarters. all-time point, occupancy the to grow would that as expect you highs, expect lease continues few over or that But actually to we new hit to pipeline, see volume that to next the in moderate bit. legal Jim's a here it

Operator

is Caitlin Goldman Sachs. from from Burrows next The line question of the

Caitlin Burrows

follow-up a point. just last that on have did I

through question achieve I could clarify if like the specific of you which take that But could cap Acton the how rate, of you Or the were those details. Plaza, And some competitive property? familiar was, was on was how anything the not I'm it market? sorts you broader the that. to how mentioning you maybe for quickly what's think upside, pipeline", and my we with could real maybe sourced, "legal the could process deal on, go if term details wondering acquisition so

Brian Finnegan

pipeline us legal that's leases signature, quick, out real versus for actual that LOIs. we leases have for is Caitlin,

James Taylor

robust. to remain about to you Mark, want continues talk Acton? it And do

Mark Horgan

sure, Yes, Acton.

don't have and performed to It excellent come that by assets we in market came. From it Ultimately, there. thought was the rents to market, to benefits opportunities a again, went buy really we want think it near- an This are competitive we why up perspective, a seller exposure because to we that a And well long-term with That's have the through competitively is excellent well-known of how in saw some platform the there. was very is so we market. in a really broker, leveraging growth had bought market one did the us we some we through asset. great have X market or an now we a all-cash and stuff the about And we'd on owned We've is a drive we very like do. a we to Boston. date, Boston, platform can through So say operating buyers worry to operating market both benefit we came close buyer, otherwise. the we're because us and unique a having when fund CMBS and tight to institution. that

James Taylor

that can we existing to we portfolio, similar opportunities some as on add believe lot well And density. to capitalize rents of below-market as our a

Operator

next The Mike question Instructions] from from comes [Operator the of Mueller line JPMorgan.

Michael Mueller

spread build point XXXX? be do lease in some moving occupancy normalized at when that's levels? higher, you to economic With can think you the occupancy Do think

James Taylor

a at there out what It's you the ways are so. think I look and when we've signed commencing. delivery of

I think that's fair.

Operator

The next Paulina line from Street. the of from Green is Rojas question

Paulina Rojas Schmidt

about Acton, that talking When to increase Boston. exposure your you mentioned to wanted you

to to like Or demand you formats? you'd any that, is there you are clusters, geographies your where it across have found about largely think theme you markets related from areas exposure? common most retailers? increase And in the and seeing are your where the a as So homogeneous

James Taylor

We've capitalize under-reinvested platform drive can retailers. on to clustering on know very be we that the to from our thriving value. been in the very to continue well our our capitalize theme what the to common those all be nonetheless assets demand strategy today to demand And from of who are but markets. to finding investment we real focus portfolio retailers in, we in located, are under-rented, long-term pleased nearly is across with A under-leased, markets on where

under have presence Florida, So we you well, extraordinarily California think some great such in that in we and and they're markets look as upper coastal the control, know ahead in have the as acquisitions about of and Texas. Northeast, Carolinas,

Operator

We have Sachs. from Burrows Caitlin question from a follow-up Goldman

Caitlin Burrows

the Just sounds to and generally be guys dispositions, going like expecting on balanced you acquisitions it are forward.

think higher just what by the dispositions? So Or dispositions? a can if the versus the it the than where from we're how cap I do earnings so, rates acquisitions And higher at opportunity you means be growth of a a the longer-term was more cap point from is wondering much? like impacts, perspective like there acquisition rate for and

Mark Horgan

for Mall spread all, first positive you think we -- Well, we between have we've cap about a year-to-date, rate. extremely when and had an XXXrd well, what at dispositions, sold I'd say of low sold, acquisitions given that

been contributor. a year-to-date, So it's positive

As is would a we where difference slight investment may I assets really one. there expect perspective, hold we focused low not where cap is is we so an assets a IRR between sell on but and X the really those higher. be we look from forward, hold what material IRRs hold rate try to think buy the IRR

James Taylor

as So near-term on effectively, neutral. basis look at we that a

Operator

next question The of line Goldfarb Sandler. from the Piper Alexander from Instructions] [Operator comes

Alexander Goldfarb

in been and do rents leasing of the But on into mark-to-market a boosting have rents mark-to-market Brian, old rolling retailer of today? store great inflation, that is let's is for rents? of outperform, to continuing where as years the continue by a more healthy occupancy you tenancy, few question to performance. performance. on get can this environment, is past have we Or and to say, such since the that COVID market on guys driven lower the and normalized see see we do Obviously, more just simply such confidence you mark-to-market rents store that productivity store

Brian Finnegan

traffic-driving continue have it's be But tenants -- great we great able low right? advantage and rent tenants. performing. a we do take as deliver expect that to portfolio as reinvestments, it's are Alex, continue both, to to of across a We to add our we question, the we basis have

and and specialty the at Foods in and Whole Joe's. the like look ALDI You grocery operators space, tenants Trader Sprouts

today You of and about restaurant quick-serve very wellness wellness look to strong. very performance, our are at people the how fitness operators expansion operators. The off-price think which have and operators, continue strong

the on you basis continue low that be whole we our look to a well. But we at So succeed. that shopping then and to as if expect driving take tenants to rent of have traffic our also continue look then advantage you to as rent drive very a centers, we're at able to to

think puts us that it So very a in I together, you put good position going forward.

James Taylor

we're encouraged rent. banner, when in-place is think really also And marketplace, we think very Yes. compares traffic a productivity particularly by across about the from you by favorably the standpoint what which

ahead. Brian rent even as tenants, we're the both. which the of productivity mentioned, basis years really productivity well the excited about It's further as it's So driving in as the

Operator

comes question Compass Dijkum the van of from Point. line next The Floris from

Floris Gerbrand van Dijkum

Getting back a bit to Obviously, tiny capital raised you allocation. of the equity quarter. in the

where still to your trading You're you're getting discount marginal but is, a we at closer. think NAV

As there as some exceeded -- peers your you be much you see able opportunity I already you consider the you same capital -- think them by -- NAV, do equity as what potential equity, you've start way. But on you big is done how to portfolio on replicate constructive for your get acquisitions? new pipeline, of acquire? to you think of the to and are a source now, how of there potentially higher? of guys that you an in for about continues to some do own of as price to pipeline And more a move to And share out your would

James Taylor

We always it's that our very precious. equity careful with recognize and are

net that you seeing these a that national a don't pipeline have be a we're which really see platform, we of strengths platforms outperform assets at we redevelopment, encouraged and of underwriting. equity, platform, And And as that accretive the some what the is as mind value-add. where been we issuance we and we so when our terms opportunities that the actually it's have are which operating by in acquisition that with leasing we're we're forward, of bring look going opportunities accounts, can towards seeing, the we owned our think as into about by attractive have saying,

volume as that currently, of we're seeing what Mark see those we about, we're control So we well as that talking have excited opportunities about, new was the under as coming forward.

Mark Horgan

to It's to the it's retail that majority XX% think I probably pipeline, not that is of of owned institutionally. owned vast terms institutionally. XX% note important not is in open-air Yes,

And we our years assets very a some estate example, very operate X than, that buyers held XX also for institutions ago. that current that then we're look for at so are growth we we're first-in-class better from can clearly. operators. time they've held will pipeline, long for very, we because have buying generate families long real from X when the a think were and very interesting think time them great They we just And not

So continue is really the we about backfill think when correct. believe excited pipeline the we can acquisitions to we're and market future

James Taylor

Yes.

we'll always But furnace As point, we it's is so see excited our again, ahead. to more be for disciplined. say, about to very Floris, We're coal and we like growth equity your what precious

Operator

Deutsche is The from Bank. Peaks from of next line question the Conor

Conor Peaks

announcement the portfolio see been forward and uncollectible talked going it's the pertains about the Lots call. you specifically there. could if But plenty and your on income, On I this ask about how to Big what

Brian Finnegan

process of just low well more we coming We're tenants a terms remains the will we've Yes. seen. Conor, question. get vacancy how excess many going the We've Bankruptcy's with the fluid ultimately resolved Seven at portfolio. of month. as are are our to It to the time again of industry be across XX%. are kind end on by activity would in very back in spreads rent of of with box Big it's at lot a with a a demand that execute those be boxes entire Lots whole, say continued we're historic pleased possession good the spaces. the deals that that boxes wellness off-price and seen the specialty with These box, of the apparel, are tenants already though, as the in great in got seeing on grocery, to fitness from great space. we've of back. I XX

at as this for XX ] on we've touched Jim So is those boxes The signing anchors X and earlier, us. $XX. on [ been opportunity an rents are

and progress to of higher to quickly the forward with with gate look pleased able boxes at we're we're that making better tenants being remerchandise rents. So these out the

James Taylor

of why is of the And playing been Yes. boxes. has surprise, XX a X resolved which the It we're towards this for really team been part while. on hasn't a already

about excited we're know back get value a basis, and rent that lot deliver the we're So we low potentially going with to accretion. more of because

Operator

hand are no to the closing over questions, for further now there As I Samantha comments. conference Strong

Samantha Strong

Thanks, see at a Happy have NAREIT, everyone. and We'll you Halloween.

Operator

Group has you participation. The now conference your Thank concluded. of for Brixmor Property

lines. now disconnect You your may

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