Urban Edge Properties (UE) 16 Feb 222021 Q4 Earnings call transcript

Greetings and welcome to Urban Edge Properties Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jennifer Holmes, Chief Accounting Officer. you. Thank

begin. may You

welcome Edge and earnings fourth conference call. to morning Properties Urban quarter Good

are Chairman Counsel. Company Chief Jeff Officer; today and Development; me Joining Olson, Investment Chief Chief De EVP Officer; Officer; Herb Danielle Eilberg, Mark Milton, and Financial Chris Officer; Weilminster, General Operating Rob Vita, of Langer, to Executive Chief of and financial the performance, Please note, forward-looking not contain and events may does risks, statements about uncertainties are update. future subject numerous to today’s discussion the assumptions, and Company’s views undertake which which

these we differ actual introduce Chairman Please measures the the package financial disclosure GAAP non-GAAP financial this time, my Our to available and more our Olson. available it our results, At results condition Executive in release will future are today, earnings the which to in and website. on with our Reconciliations refer business is filings measures. to and about to may website of for In Chief our information Officer, supplemental materially. Jeff certain Investors our our of also refer Company. section are SEC, discussion pleasure

Great. and everyone. good Thank morning, Jen, you,

as are by in up fourth We our results. increased including redevelopment. year, quarter NOI, share, same-property with $X.XX to a a XX% FFO prior pleased to increase compared adjusted driven XX%

and XX% points total, open to a compared continues our Getting coming XXX priority occupancy spread. XXX We the increasing properties executed trajectory, points represents NOI versus also in upward million leases, will new square volumes growth. well-located In to of in on rent XXXX. tenants yet $X.XX performance pool expected compared prior announced markets leasing quarter. portfolio gross XXXX retail We its record any our top XXX,XXX based a between contributor executed our X% share, We gap occupancy leased feet in basis sector our increase is open to to in XX%, XX% with leased these approximately population and revenue rent now our NOI. basis quarterly with especially per which significant dividend of current new from XXX The not third throughout points. property air up density. $XX to high physical have our future we leases be The to of same-property basis a of up year commenced, is cash

end to Our same-property leasing reach to negotiation, X we with robust, pipeline is level occupancy track again. XXXX. XX% of from averaged XXXX under the of our square over us leased feet achieve space expect on million Recall, occupancy by that to of XX% and putting XXXX,

health the land a exciting Bergen. open a at for Health. includes Meridian quarter building fourth in organization to two lease vacant care Kohl’s its Kohl’s Town foot top an flagship Center, of future a performing New to Meridian Health, location leasing new office built Our stores and is to Hackensack on Bergen Jersey activity one square be relocating Hackensack executed largest parcel. additions XX,XXX medical

of million achieving surrounding adjacent with million higher securing space, projects our yield. vacant active is last an We are from expected upside generate and XX leasing unleveraged rate from $XXX quarter, advancing Further redevelopment tenants expected rents pipeline, from compression. since to up X% cap

leases the of million investments projects risk, executed cost having on are XX% nearly incremental an repositioning anchor $XX straightforward, have and where lower NOI. we redevelopment Our average relatively of

occupied undergone will have pressures deep increase budget our Transforming by Giuseppe’s, Marshalls, retail was we vacancies from portfolio Vornado. all much the it XX%, a as strength stronger and provides evidenced Liquidators, seven tenants and box Spaces Kohl’s, “R” talent role Uncle a the is Amazon into cash other leasing National industrial. Toys projects today flows chain Our Aldi, in nearly replaced XXX rent the bench great as facing. believe durability repositioning support substantial over the balance sheet Kmart, conversion assets in the takes The for of meaningfully Once and basis-point time now are challenges we shop previously our Fresh, of to redevelopments to at inflationary our supply it. Burlington, we Us, development under be higher have our and and this year than underway, these we a complete considering ShopRite, since plan. team with the on execute job is been Century value spun The shop opening past years doing Wholesale our by occupancy catalyst of XX we within XX% leasing, which scale can a of as anchors large such ago. of

improve we is through of challenging that surrounding revenue. square-foot potential. proud are state over of times quality of I and and our our ability key in-place In platform has current Towne acquired high in great the grow and progress sales working approximately we acquiring asset resilience for during quality Maryland, while Overall, includes we demonstrated operations and estate the underway, $XXX to an am feel Best of have plan. tenant cohesively XX% infill attractive and Buy. Centre, integral believe We execute is a our development providing tenant growth strategy and that proud The is acquisitions. both. our a features return the growth cash XXX,XXX flow leveraged who and to A lineup, about team strategic we center time to open million, leased can part strong merchandising December, Wegmans, including This of component air property a our enhance and retail, Woodmore rental Glenarden, with grow community, future XX%. we real leasing Costco,

of President XX Development. excited are experience of as welcome CEO Capstone in over to newest real and brings and Jenkins. Norman member industry, Norm serves our estate We currently the Board years the

plan earnings calls increase quarterly Finally, the community, Chris? our going as part effort we will I host to Chris forward. over Chief Operating continued turn it to of investment now to our Officer. communication Weilminster, with

record morning, I in proud real with am the leasing we good strong execute the of achieved Thank you, demand, estate best-in-class leverage our retailers. team of everyone. to and quality XXXX as transactions Jeff, the and volume

the in Our stage a XXXX strong has XXXX leasing momentum remains success set for robust. just as retailers the of

over Our pipeline than exceeding consists deal active current spreads of on XXX deals more feet XX%. million at square X.X

soft strong to leasing operators. job and with an operators goods any continue including beauty to The see transactions wholesale general acute will retailers, relationships and We done retailer home has retailers, improvement, fitness interest mix our a on improve choosing leveraging focus clubs, categories retailers, retailers team properties. fantastic merchandise these overall medical, restaurants our grocers, from that merchandising with the expanding complete health at

We see throughout the We of XX% over our our and top compared to traffic properties. that geofencing of The of to quality to XXXX, for is our are portfolio back stronger XXXX. recently the increase visits pleased at an than X% with our evident. gauge data frequency customer locations analyzed tenants ever XX was

occupy Center, transformational at within active the Bergen the space feet locations, of on our at Meridian property. Center, Kohl’s a Century quarter, XX. Hackensack already retailers This goods XXth per soft will backfill new complementing this properties XX,XXX deals range at New occupied based merchandise, facility. our care building completed we to the percentile services, Route credit signed anchor will the carry population portfolio constructed Meridian X. to Kohl’s be by research Town properties. existing their medical of national a of Briarcliff dynamic and innovative portfolio, square compared Shops and that healthcare Our the strength offer in the largest full In complete will Health, mix visitation at dense, intel. XXXX the formally reflecting Bruckner Hackensack medical a least assortment Bergen around Commons. along network confirms office our specialty has at fourth base in square-foot and XXX,XXX life-enhancing will Town Jersey, the At of ranked

trips. occupies for a to grocer Bruckner, community. At for Crumbl to desirable XX,XXX of a Giuseppe’s also shopping Old monetizing to at its further Giuseppe’s opening Chop’t, and which the specialty approvals such Commons, brings Morris square daily Uncle retailers, will Watch, that secure XXX through for Skechers, the Five we has strengthening a are Uncle venture. a The held Cookies. existing grand Below Giuseppe’s and consistent Navy, units, standalone catalyst will GAP Briarcliff fanfare been Plains Italian January. customer feet joint square its working Aldi feet, as XX,XXX of property’s to At much Uncle mix Commons residential Briarcliff or lines Shops project CityMD, the and approximately with in long First are attract and occupy sale marketplace addition We Marshalls, considering

completed acquired At we pursue ‘XX Commons, a these space grocers to of in portfolio the as drive nearly Huntington October status Sears will at leaseholds anchors component. stimulate grocers grocer on and and negotiation, along properties underway continue projects Commons. Bruckner enhance Once with Hudson redevelopment have our and grocery higher of Broomall will renewals. These have in value Kmart activity leasing by also We for of XX% our vacant two and are Commons, follows. The for Mall, will we rents value options.

we square-foot uses. leases feet a being backfill highly and the of at in square-foot as negotiating redevelopment. XXX,XXX the to expanding national recognized retailer will backfill to multi-store of island, leased continue XXX,XXX the XXXX. square box square-foot with XXX,XXX and and We credit The we XX,XXX quarter tenants Kmart executing Sears relevant service space medical Mall the will part to operator, XX,XXX actively the anticipating are the not be mall’s retailers with other square will discount goods is negotiating XX,XXX Sunrise square-foot be proposals nationally We study on local provider. soft box; second these that of existing to grocery feasibility marketed feet three third a the leases Montehiedra, are space. At state-of-the-art

partners consumer necessary as of new post-COVID habits ecosystem. retailing to of shopping in behavior locations a physical our and continue centers their and open world, stress to the operating a air part importance Turning

areas and work are of to on how physical maximize in level the goods is operations. to early UE convenient operating to continue space, efficiency fulfillment Retailers ideas. providing flexibility focused for customer to figuring and these facilitate We out with pickup stages delivery retailers property embrace in-store of of for their the

occupancy portfolio thereafter. extremely higher As driving to is on XX% mentioned, focused the Edge Mark? and year this Urban team

you, today the results NOI Good our and FFO; focus that points fourth providing Thank and liquidity. highlighting First, comments to helpful second, balance be morning. data on discussing will quarter; sheet my areas: three future Chris. I gauge third, our for will and

quarter share. of growth and Fourth properties including fourth fourth was collections in from redevelopment earnings, First, and in a rent terms Same-property we third during by of adjusted full the were the XX% XX% as reported year, compared XX%, of quarter. increased the the FFO XX% year. our NOI base prior up to $X.XX quarter quarter for the reported

due, In collections deferral team addition, all the the payments made XX% the we our during we collection balances. outstanding and levels tenancy collected done ensure tenants are have to carefully are agreements pursuing our with testament work past due are pursuant to pandemic. to both a of we has and These strength of current

XX a basis, quarter, have past We XX% of the on approximately trends where months. XX collection we the of based cash the remains down over pages of a and XX our X% third provided summary that note our detailed on ADR supplement, from collections in on

growth be following. think not The future XXXX. of of the amounts terms consists to million pipeline weighted additional will growth, was previously $X a In the Jeff currently of from year. million earnings biggest our to and year, contractual table $XX this our annual comes I helpful leased, NOI which revenue to $XX items our of occupancy but and net pertain gains, back of debt actually this that commenced annual future highlighted, that of primarily rents due which change to to it year-over-year that during In credit note bad of same-property impacting recognized highlights reversals. half of added driver is We include reserved. gross supplement net debt rent. expected approximately Other of in collections Headwinds XXXX, tailwinds expected $XXX,XXX a gross the are rent at levels rents. bumps on in expected the million An commence higher renewals bad is

of debt levels points to assumes forecast XX for XXX that of XXXX closer basis bad reverts internal to pre-COVID gross revenues. Our

this some reversals Let year. add potential range bad of to debt may context recognize me the we

$X First, million we are XX at remaining rate cash this provide XX%, payback of deferrals disclose tenants having which when have our $X continues should of COVID-related year at a basis that million months. on If received. a year-end, benefit of collection for future about this

with to remaining have $X.X could reserves, of focus we to pool million addition, our those collections and likely the In gone reversals, to of on are actionable additional be in, budgeting actual and think the receivable is million to given and $X.X complexity there assess COVID pertaining a range. an through level upside of that litigation The predict. of this of timing these And and the difficult we end accounts year. lower many currently that are nature

lease contribute In tenets square options drag very feel the XXXX, are NOI that expect million $X.X timing a $X their will terms taken annual XXXX create to on vast and that expected vacate, that XX,XXX gross good of based than greater million in the of revenue feet we roll of which about departures. on in will There majority we the of be space. about on four renewal

I headwinds is insignificant and XXXX. NOI Bruckner will Kmart for the that $X.X year. $X considering All-in, an in XXXX changes Montehiedra, same-property both to the million drag growth and described, addition have determination the NOI of accounting to tailwinds executed that positive October, in our to expenses, compared in expectation and more were operating million create In at be and recoveries leases additional prior related

quarter In drawn amounts and million and with million of our our terms no on line liquidity, cash $XXX $XXX the of balance of sheet ended we credit. have total

our of We during to pipeline intend mortgages our are process the for million. use only to which to acquisitions. year, aggregate and currently $XX the coming deploy in due our fund We cash refinancing two development

get income we acquisition on timing million not to the leases acquisition, future which to $XXX net from year-end quarter funded our the X.X income for Woodmore X.XX%, net of X-time to back we and to EBITDA annualized open, nonrecourse million cash mortgage our a XX-year the of $XX the EBITDA debt expect in coming new this from range. at signed forma was and Pro debt line with elevated. but Given fourth

this with it years, replaced strength In our is think been and of prospects. credit the past nature our mortgages. quality improved XXX% couple of flow to as which We we very of over been of dramatically leading tenants structure, are of consists strong regional national comfortable The growth cash operators, feel good our has with both, bankrupt debt I nonrecourse about range given and consisting have brands. single asset fair the closing, say,

average and us tenants activity a our redevelopment rating S&P XX top Our in our and Chris of call Jeff today for estate great in confidence BBB cash questions. and have have repositioning gives pipeline flow plus. growth a combined operator intrinsic of The I years in work weighted credit described with of that record to will the leasing turn value over level ahead. will reflected the FFO NOI, now the the be real meaningful

[Operator the Morgan you. Rich Thank question Our from Stanley. Instructions] Hill with comes first line of

I’ve this I’ll guys. morning, again. but Good Hey. said say before, it

revenue your bridge best-in-class. is rental think, really to I

and been really do long little Mark, to but And that. numbers bit I a for the It’s appreciate I working season I bad you of all think the it and have it followed you unpack debt. a thank through more. So, earnings going through

if debt I understand same-store be bad including So, will correctly, NOI, you positive.

-- peers a have number many of Your also peers your excluding debt. bad same-store reported NOI

that? us the understand is share helping on any Could all thoughts business noise. you going basically without where maybe COVID core So, the

bad million when expecting Hopefully, about debt your to to I million Rich. to that the Sure, to got components that you point, $X -- gave add, of saw now maybe it’s when reversal. upside, you the $X X gross we’re

out also tell strip positive growth. business reversals, fundamental that would those we you if you So, is probably still our

year-over-year more specific we even both the changes, for putting neutralize parameters if you be not would it, but unpack debt, slightly years positive. bad obviously the around We’re

we that. But, lot Okay. confirm can helpful. on was can a think recognize I And That’s did recognized that follow I’m you And income termination the in same-store NOI. sure lease from just up it quarter. was that? offline I excluded of there

referring I think you’re income, term to Rich. don’t lease

to amount you’re large we that referring of market think, the recorded. below I amortization

of on our for six year? and sup. for the -- lease page talking So, or supplement, are break you fees, We the look term down when bankruptcy quarter you the at about actually we recorded

the quarter. For

was Yes. Yes. you’re to. The be accelerated Sears, the That below might of amortization $XX what markets. the amortization termination for biggest market adjustment That’s million. write-offs on leases, the That the accelerated income. for the to FFO the referring Kmart below not related

Okay.

I think that for makes you sense. that. Thank

queue back have jump if right the have I for the think, I questions else. I in anything that’s again, I’ll But, all that guys. thanks now.

Thanks, Rich.

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

acquisition. the trying Good still initial I bit Maybe, a on mean, be around Maybe Woodmore asset. kind and early, asset. term Centre fairly just some a it’s may Hi. to talk plans just the Towne everybody. morning, long of Jeff, but thoughts that it’s what large get

there. Yes. excited I we’re very mean, opportunity about the

As I of X.X%. get, said XX-year the out about on was quite especially relative able financing we to were mean, returns coming which IO I the were the the call, financing gate, to high, cash at

might property So, behind resilient. will Buy coming the like maybe will the about one. Costco And Chris, cash stability XX%, flows, we But, namely you year Best think the from just be Wegmans yield your and and tenants vacant the leasing and have then land refer minute do that can the there. from and also we spend perspective be of some to able side opportunities a we to a from

security, about and mentioned, Jeff the Route just we Woodmore by of fantastic. XXX,XXX got are town the County Good morning, It’s cash demographics Beltway. to it’s and And on is education. the for Centre the act per day, draw. and linear high as we’ve broader built site XX that Samir. the that anchor another done to the the mix of George’s coming off the was XXX XX,XXX-plus on very Sure. flow as cars The certainly have going feet over incomes, there property. that. south Washington strong. to that the We’ve visibility sits the community become I-XX, several-thousand It a community XXX, acquisition. got and excited that Towne Very with an beacon exit Prince and for side Costco and XX huge cash on got high flow center center And Glenarden Wegmans that

the existing in the far improving over tremendous upside mix, as we As see mix tenant time. tenant

into there. putting capital just ascribed out right in capital to buildable that XX and tenants, out area. all was bit mix Danielle Washington that average dig prior It to I XX site. those more able out was years tenant with one we the to deals ownership base with the value really ago. we base talking with some an improve we came of think relocation I’ve acres. just time point up, can our seen certainly keeps going have of to property our of that retailers this be to part relationships little And at the slated to grow that somewhere needs multiple harvest picked that invest seen halt are one bumps we there, a XX this her over mix And improve I between on this XX D.C. and -- able not for FBI into And that, now be here improving on giving. into that the to There think we have no rent to asset which a acres basically we’re And and the we to acres great think it’ll was get to come the as we the really you got that’s tenant to years, start mix. as like does,

one really and turn we have excited. be that when million so into feet going that for And zone opportunity, long-term great a This office. investment bridge coming to So, over years. that look a to is we to find to yet we retail, it’s to square think forward today that real and there’s we right Urban in of ways if the for Edge the transition X monetizing close still

of of the the only very out mean, two in point, solid number air is this I one I a And Samir, annually. of number centers Maryland, it all in of the ranks mean, terms today. the of open state final to visits asset center

in dominant of So, a it’s retail center Maryland. retail node, state dominant second the most the already

of second that Got then, think point? guess, highlighted, are. this the where what But is on see or year. boxes plans a this came start do question back the later at were more come it. story And ‘XX back is an There you the Montehiedra, I there’s three, that Kmart my last income of you opportunity you year kind in to

more the of But leases see story. executed you on ‘XX space that soon. a It’s should

gave QX an Chris deals active as that QX. or indication, executed, maybe Yes. the as case soon those status be worst should

the the the following get when So, will you build income out and hit year.

Chris line with the question Capital next Our of One. comes from Lucas

things check So, Sears, Sunrise. decrease falling out related I percentage, the is just in want that are asset? is leased or to all to that other on that The there at

other well, falling intentionally. there No, out are that as tenants are

Understood. contribution providing asset any the Is at point? that at bottom line to all this

alone, know this increase $X No, given Sunrise, asset was decline Sears intention sunrise, take it’ll the million now up. year, page with Chris, I there to and the million you the in for we if that footnoted, another in $X which add loss six on just noted a we question related has will our fact, come XXXX.

which the that given have plan, we’ve intentionally we So, provided disclosure. executed, vacate

one Sunrise. on then, And question Okay. last

You mention four are those Sunrise? that at did there any non-renewals. of Are expected

No.

today Okay. about guys versus retention Is better general pre-pandemic? just What’s how you or about your then, And feel overall, tenant same, I worse? guess, the would it sense?

before. Chris at this retailers their of data our really earlier where I’d better near moment. are now XXth are for percentile credit chains. volumes, good the they doing and top stronger was the talked sort the say, within tenants stay than geofencing want to about is they’re and Because it remaining, their in that it’s

are stay. want these and they at they generally, order So to centers, to freight pay to in stay willing the

that guys us basis, of just pre-pandemic in me, number, Can And sort are you and obviously, last you about then timing? the Okay. cash dropped, that was that talked your on where in expectations of just getting remind the of that -- terms for what that. to tenants question terms

hit have getting Well, gross some they back say, a mentioned bankruptcies. bad Obviously, general a were as differentiation most us rule, if what around with collection and XXX modeling your XX to with we’re to for well, rates when But budgeting points But, we years. expectation, had really I know, the and the as that’s the is about That of pre-pandemic, we of didn’t say, all did volatility, cash and of accrual. historical back you I were XX% segregated general, a kind look started pretty why our came basis debt revenue, we between level that what gets you previously. Chris, which pre-pandemic. we as consistent in pandemic.

So, that is sustainable. view here XX% is our from level the

Our next with Paulina comes Green the question of Rojas from line Street.

Good you remind morning. negative me? Could the you us Difficulty]. Hello? hear Can please [Technical drove what

time, more that Paulina. Say one Yes.

during quarter? the please Can re-leasing deal? drove me that remind Century the the re-leasing what XX spreads you spread Sorry. Was negative cash and core

No, the only Hanover, a Forever a XX same-property the we actually for that very leases one of driver. was that had That lease been only group pool, years backfilled. feet. And XX,XXX -- that was there in in had that important couple was East was which of small most Yes. we vacant specifically, was taken square

spread point rent most under that approximately relevant pipeline of million leases is of feet negotiation, the XX%. Chris and As think opening of within mentioned our is his square sort in X.X comments, I

that think, in I Paulina? it puts context

connected. have her still We is line lost Her though. might

right. All

question, Let’s next go to she the can dial back and in.

problem. a Not Okay.

one line comes Floris Point. next from Our the van of with Dijkum Compass

narrative morning, bit Jeff if are Good and maybe a there -- can little everybody urban markets that on there’s bad, is a comment Chris, guys fleeing. guys. you Hey. out

over Maybe of next terrible, not last in regime. growth. area, months you over And talk where view, rental of in XX terms New give Metro them the your spreads, rents on can but trending it is what you have call gone X York seeing just also little guys New you’re and perspective of the terms market months. maybe bad XX York think where could about bit to in, see the if in if Chris, you you a

periods last and And supply average of And much vacant the mean, much half prediction, they’re XX% and in up again. there let finding hear in go the it’s being because Yes. do over occupancy I Chris. work not so and said Floris, me community. our York go soon, mean, expect our with If in you’ve want my New in into investment absorbed. throughout retailers comments, hear less the narrative mean that I community, locations Sunbelt. seen space we the I it the the anything, and I’ll Northeast Metro area. Retailers from to we that year a retail XXXX saying the and start just I But, not that XXXX more flee turn to I we we to from get and are narrative the

sense in the because have going boxes see the properties rental that that rates an you has. Chris? so my market, just and you’re supply. these of our And as should is to increase than start pronounced So, up to of because throughout fill just just our country in boxes more few here many around people the else be that the anywhere limited portfolio probably size

Yes. transactions, going these when rent to of that see basis significant lease about are that we you and mentioned that in looking negotiating based cash and growth. deals a our fact and some at on and LOIs we’re you we’re on and growth think it the pipeline Jeff, earlier, pipeline

So, space. with flight new our as limited retailers we on we to growth supply to -- rent occurring. actually we with with seeing seeing amongst for us question, that flight a are being coming is And answer that there we a being are as that think Jeff to seeing for competition think, -- there quality, not market, are well mentioned, and

got to get start we larger got we’ve we’ve negotiating where would our grocers space. say of for a national Kmart as Bruckner, well old the even limited scale, for multiple into boxes, as at that tenants, finding space box. very multiple on got you, in our we’re So, centers interested to bigger we’ve some available, tenants I negotiating credit worthy multiple box, as

market of in certainly in happen being the drive inflationary starting in our but So, we’re also course only going-in we’re in seeing will with that not rate. that to rent, help rent increases. our rents, And some as inflation well,

We’re throughout. our in shop consistent get small bumps finding spaces to it annual more

that So can all-in-all, for focused we’re that on really our And into certainly we for very sure the also. not just good, ‘XX, the trend making ‘XX rents opportunities. happening but we is we’re top see driving

And more Floris, They’re alternative opportunity convert into just against that remaining. thing. land another our aren’t an to have against boxes one residential also one we or that competing retail are The industrial. competing retailers that for

are at at may they’re use, at where including several may out against alternative -- there including create so, that Yonkers, be competing And that Bergen, including an there, Bruckner, more opportunities value.

point, I mentioned, Chris on interesting to just bumps, follow-up rent But Chris. an actually. the wanted you fixed mentioned, that’s

fixed how seeing fixed is Is impact think that result bumps of that should kind willingness environment. greater or that? of You’re to X% the people pay -- bumps, What that? higher as or inflationary of is a about

in deals saying, a on have five-year then somewhere lock Every small small the you X. years we X% listen, think retail to want starting between that to range five tend every fixed beyond shops, think we is we range. just years. bit can sand X%. XX% just to it is the little anchor and now above in draw But a this up to range really to the shop five want press in and bump every The the on going pre-COVID, I and and on line rents -- increase tenants I stack an still

the of cadence love growth embedded seeing NOI we just just going helps as annual of basis. we more embedded an to look annual an have growth, on increases at our internal So,

focus that. we on that So, It something are catching. definitely we is

at We’re able our actually in that and we’re away shop place, have to secure point. deals in deals, small this turning that don’t

profile on California. market? cap maybe has mind. cap rates of New And the of rates on greater do you going what don’t New the imply couple if could the York there think growth, be cap NOI York that in you that markets? And particularly if or would you that should higher have that obviously occurred rents, I And impacts down. one comment solid you can NOI are guys in occupancy, higher Jeff, I if to Metro and Metro has follow-up, know either kind in Sunbelt transactions what high UE think that side? rates, But happened And in a with

haven’t many of comment and anchored minute, this to some that I’m been market, trades. we’re the X%. some there that pricing a to portfolios mean, seeing there going trades ask on sub grocery actually I But including assets are what in Herb are in Yes.

some are enough rate and and have actually, think are cap Xish underway here had the markets that demonstrate of Herb? percent in trades or California, I what that So there’s in differential and seeing between probably Sunbelt the that -- no are dollars there cap there either where traded, occurred are in rate that you’re that billions range.

Yes. Thanks, Jeff.

substantiate quality, will think rate assets. out portfolios high There’s cap right. which couple anchored I that’s there, think a that sort X%/sub-X% of grocery for pricing I of

renewed for Additionally, we’re the even as seeing what those I we’re assets. there power a think well. now, And cap rate bid for centers there’s is compression seeing

everybody some the retail which there, out asset sort weather The we looks of think result, flow is sectors or the the storm. the as in way is durable. viewing And particularly a relative good. really cash are of I is now retail, other to

So, the cap we the come down. back are into driving institutional seeing market, and bid rates that’s

call the further to I’d closing back remarks. There for the in management are hand no queue. to questions like

great. And have to out Okay, everyone to to much. you don’t look if please to quarter. hesitate us. talking very forward any of any reach Well, Thank you mean, I we questions, next

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

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