Federal Realty Investment Trust (FRT) 31 Oct 192019 Q3 Earnings call transcript

Greetings and welcome to the Federal Realty Investment Trust Third Quarter 2019 Earnings Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now like to turn the conference over to your host, Leah Brady. Please proceed.

you. Thank thank XXXX us Earnings and Realty's for for Quarter third Conference you morning, today joining Federal Good Call.

Solis. Dawn Joining Don me at and the Seher, remarks. our your Wood, are be Melissa Becker Dan G, conclusion to on Jeff Berkes, questions the take They will call prepared available of Wendy

the deemed forward-looking statements within a certain discussed matters of be As Litigation on this Act meaning to of Private reminder that call Securities Reform may be the XXXX.

or annualized to any include information events as results. referring statements Forward-looking statements as projected expected or well anticipated or

Although -- give be that statements factors information performance are the Federal Realty assurance condition no documents -- Form The of believes may documents and available Realty's our last the assumptions, attained. supplemental other actual filed operations. expectations expectations website. and and in-depth on release earnings reporting of annual issued more from can reflected materially on disclosure our in our in that package these These our financial are such on report may a affect discussion XX-K future forward-looking differ earnings financial its forward-looking based results operations statements, we can and Federal our our that provide we risk reasonable and

questions, portion the Given our that the to Q&A you the person queue. call, number question call, of and participants ask feel limit of additional you jump per have the on please to during your we back kindly one two if free or in

Don? with Don quarter discussion over our Wood to I to the results, the turn of call And begin third that, will

leased we better to something Assembly or Well, the million Square for is million about we decade, part this and acquire $X.X under-market do morning, unsuccessfully marketplace Don. Thank quarter able are everybody. Kmart the wildly you, to the Leah, acre. of to that at an last $XX.X for good accomplish tried that and

possible creation by The the and in community. income Row through, Assembly currently unify expense the required over allow will acquisition over the us power This to and success through the densify made mixed-use parcel value with very important both significant real that GAAP unlock statement. years a of a the center time. allow six-acre to estate and us is This the

FFO reported year's excluding with $X.XX XXXX last the charge per the share that a requiring the but Accordingly, number remember year's capitalizable quarter. that reflects of this $X.XX the reported is quarter. $X.XX, direct about $X.XX Also share accounting cost compared leasing of third previously expensing change in per

for and happening representative pretty only of portfolio dependence the of higher is the is our Kmart prioritization oversupply of days. this occupancy significant the rents, lease efforts significantly on At focus terms given the acquisition The cycle as lease nationally, these of landlord-friendly retail difficult. in darn and the and increases point growth

retail in this with tempting decisions redevelopment keep do like regard that. opportunities. flow to We a terms, making It's that selection, won't short-term to cash inferior environment growing lease tenant by

Our of next on next focus years, the the not months. bunch is bunch of

cycle, the is not in current creation for growth possible. value and also more medium the locations it's long-term resulting in great cash short-term up in environment flow while slower Because were now that creating until earlier opportunities in

lose was no unlock back decade, we've in significant creation close. Assembly reached, a rent and agreement of obvious. potential XXXX, $X economically with is economic Kmart an for forth viable even a been XXXX, the and said, I at with In we'll million As deal value though

a deal after in productive years Stop negotiating development Shop bought since Similar next the have XXXX took an negotiations Shop start with with been years. economic beginning Darien, XXXX. agreed turned Six a Stop We planned and of Connecticut, & previously many XXXX. story deal Darien where we'll in fruitless & to quarter construction. in with in later, resulting We've we our

course, that. creation dwarf value property of Of million redeveloped will a lose in $X Darien the rent again, of But XXXX. we'll

Third built consumer. lose the and Third that other an in hard currently Monica, XX,XXX because that for the of we'll Santa $X entire rent Street we over-sized significantly. corner Wilshire Similar redevelop on where XXXX, million buildings another value of time story by but Promenade Street where on in nearby value Banana another and of own occupied of finally of improve be is, we and it building corner to We'll will Republic the was square-foot free an

You get the idea.

I've roughly we're a but that suffice stories got million scale with, order and neighborhoods far to mixed-use could you $X.XX they like share that that annually will on dozen retail or more to be another today. in sacrifice are $X willing bore say create to worth smaller than that a I compelling

all cash real real overall deep last point opportunities we estate in more and retail environment great slowly that's more conducive the any and of diversified these the a from cycle year, The like that still and the yet at and flow, do bottom year power is estate to since to grow XXXX. The that than set. can albeit fact the XXXX skill

the per were of with square last a $XX.XX back is leasing, deals feet, done comparable $XX.XX deals, XX foot did last non-comparable quarter. the X a deals and the lot lease, year more the space, nearly than at to rent that for year's per comparable cash of foot X% first X.X previous new year, in increase. more compared in Okay, We quarter. The million

this last they on approximated fees X.X% was and million $X.X a lease that deals, board impact minimal versus quarter, quarter rent termination income year. million anchors, overall $X.X as quarter metric, Comparable and third shop this the both Higher had on small on on new across year's was last leases. renewal than operating achieved higher property

marginally discussed to XX.X%. earlier remains portfolio I largely lower others. overall opportunities We that well be failures would -- in The tenant well Dress XXXX like Barn to and due as leased repositioning early at as expect

schedule office Row, Assembly & remain plus roughly in development Pike and and primarily and million $XXX on our development of comprised year Santana in on this Rose, development along spend terms budget. CocoWalk at at annual Darien, Row with retail In of we next,

our X-K an redevelop You'll GAP west side unchanged. to at the getting on scope the the were we CocoWalk, as side early thereby successful in Yields the of space allowing in conjunction notice in remain us back currently two-floor that project. in project, increase bigger with

our balance at nearly Look million construction shows $XXX progress. quarter sheet at end, in of

new We the future, of point on in helpful ton have will next. P&L time or in the this going big a but much stands obviously create undoubtedly to not that year income this at

our we're some opportunities opened existing really like potential opportunities it's sellers, environment uncertain created one base, has real among estate. in also While the interesting up tenant us for among

But quarter. other so, IRRs. I take To very through of with up close want that clear acquisitions take one value-created common quarter, $XXX those end, a in you expected third high with we the that of resulting course also even most different I million a million you from denominator. nearly want of tied in subject to funding deals currently the the fourth at each $XX completion did the closings and sources it contract to very level, of in our diligence. have through in to due under

to a New Jersey. with in estate agreement our initial local is individual for an a street retail XX operator venture a Hoboken, form real largest XX-plus and first XX-XX The joint with properties

apartments, estate a of retail, over-street Our the properties thoroughfares. XXth the investment real or prime retail on Street Hoboken's either million, $XXX share mostly prime Street main a -- sites to commercial approximate Washington

path, That the walkable We're development. the very bullish is buying. of adjacent access we're on $XX is buildings Yards in areas and important from ferry be through than Hoboken link access Manhattan, of of bus or increasingly billion-plus more choices to of many they Hudson tunnel, through one including and the the transportation its west Manhattan side which immediately easier

While maybe us in both streams we and upside a as mature venture among Hoboken most is the in Jersey. it of city part this loved find business the Hudson, to for New arm residential important potential retail that commuters, far more income creates and favor productive development continues rent

assets We beginning. just initial of expect be this set to the

conventional pad are anchored incredibly and with site the the in urban middle large The rents, opportunities, surface in an with neighborhood are of very and that different a strong neighborhoods development populated from center both part a residential densely more under-market dense surface this parking grocery A other smaller like is incomes. potential urban demographics two unusual. first, very this

the future site of income-producing we potential. Fairfax, center with for under in uses. the the solid small densification wonderful relatively wondered serve the that immediately But site first. together, retail of and Street is have us current we way, Fairfax the intersection adjacent Highway Junction. Fairfax to Main in limited acquisition an all will why in finally, may year, bought prominent have Lee it at a Early the material raw as XX-acre Virginia, producer, each XXXX And inclusion is income contract powerful. first quarter but is Along and it Separately, for you combined our future,

I through closed $XXX million reasons. investment combined go for they're two before this

estate the with a and shopping an acquiring First, effective pad to retail the while anchored regional assemblage urban with breadth upside, center rent estate, property land an and of we to in raw side, retail-based partner, today for rent Everything of type compelling from all street an look affluent as the through at. think urban effectively path obvious to of development in common the with growth grocery Washington thread future future, an with for current DC stream real value serving yield and the income this the suburbs material long-term growth. the and real both income relevant

for not it. to see of by Pacoima Now condemnation assumed how to acres pretty the close us at single started, on do make expect sale XX of the rest. building the in got we the debt threat California, Beach, acquisitions a we where some in pay we sales Center, way, Plaza under attractive assets, to and Antonio two of along path could up fourth San which the The growth, quarter for the with a Hermosa

here's the overall math. So

will assets reality debt capital rationale. X.X%. investing These mid- a long-term and of FFO of closed assets in growth . in and and prospects few of excess IRR with But funding of we and assumed we're The nearly and all them, assuming long-term a lost X.X% of byproduct great properties a of cost futures investment sold that's with the the asset annual of that nickel FFO XX-year just is assets, initial that provide sales net with XX-year of accretion, on the allocation a

improvement future than an in capital. the that balance gives $XXX this inevitable nearly through cycles. confidence of Federal of with in value-add long-term like accretion investment Realty's which short-term great the approach More million recycled It's such X% IRR us

after time the and to been path clear long of it's in term more growth occupancy, All and the uncertain is focus is current and on expectations a relevancy our current important. certainly lease-up earnings company's retail view at mid What and long have short-term understandable, up vacancies far real this its leased important. estate

Let me for turn it your over addressing to questions. Dan

you, and good Thank Don, morning.

share translates year-over-year purposes Our quarter. reported $X.XX the comparison the per to share and relating per for the of the charge to FFO Assembly. Kmart on is one-time for consensus at adjusting the leased of figure appropriate purchase $X.XX this $X.XX

While and debt originally opportunistic capital both and quarter, G&A drag well transactions comparable properties activity redevelopment the proactive driven primarily was benefit our expenses, pools. property-level well the non-comparable lower had of continued slightly it from forecasted than as during asset as issuance solid as in higher the continued both results re-merchandising from of equity offset by initiatives by including as and leasing was we weight the our sale, and

metric of re-leasing the XXX basis first benefit of POI quarter, this versus bringing the proactive at metric In activity boosted to came year through this points Our X%. net months from X.X% comparable result the third third expectations, X XXXX. ahead in quarter, quarter our the for

from them While last another XX basis term versus received points boost strong POI had little we of with very we in comparable quarter tailwind fees, just from year.

basis points Segundo, some our repositioning of assets at like programs XX from and larger faced Congressional El Plaza drag again Huntington. We of

a for POI X% of X% X%. result are a about range comparable in to XXXX increasing the better from than As our forecast to of we expected quarter,

as portfolio the the and of our new potential positioning evidenced re-merchandising driving While long-term activity. broad by short-term the our impact our in initiatives, Don emphasized a upgrade repositioning on leasing real estate of these and base, for focus tenant is our quality

center lease. as the Boulevard in note finalized add old sqft our Depot a Home urban of home a A Crossing, market. deal that Darien XX,XXX target in LA; few at sqft Montrose the a new opening significant to to design include Hollywood - and Walgreens uptick rent redevelopment our new great to in the at relocate XX,XXX from redevelopment part We

retailers. merchandising struggling One Nordstrom Plaza reducing And the proactive is also exposure locations last cost-plus remaining. example XX to to the we've El opening in Combined changing remaining which Segundo, of bring enhance at Escondido in reduced two three from uses, exposure locations been Rack our our and of with just Row. to one months, down out the recent Pentagon to in at we've cost-plus four

our over percentage these we -- as While get after the expect during that to quarters, lease impact we repositioning opportunities the ticked we begin occupied some expect percentage XX.X%, previously highlighted. up some our to few of feel to next Don quarter,

over As at start and as impact Assembly, closure a mute our year. Kmart Shop relevant Darien, at are as at Third tenancy the Barn's occupancy, from a our Stop turned & to Republic FFO of Banana well full Street Dress

additions new our With for redevelopment respect noticed new X-K on have the of supplement. XX schedule and updates developments, you to Page may some

of As space west modest the on project project. at our Don expanded in scope the the recapture the GAP side redevelopment budget. the the It a CocoWalk increase discussed, with to of we resulted of early

we targeted targeted of However, our incremental of mentioned target that maintaining collection doing X% new a million complete development while capital. a side the redemising of in QSRs are we a At are at incremental and bring refresh Boulevard, on urban combining Hollywood to roughly previously incremental spaces where spend on and return. $XX project, that west yield

at incremental major see long-term and Park front you refresh attractive, Philadelphia, an yield. will complete square of well. X% of Lawrence million at less a as property, at $XX we incremental And use and in the more of capital space locked in property attractive where retail in footage established created lower-level that medical the

Now let's the discuss capital the activity some of quarter. during

big at time be XX-year of the million additional to lowest XXXX the bond third the an by XX-year of a Given At rally issued the we're reopening quarter, the proceeds by able our notes XXX-plus during opportunistic in market for treasury ever X.X%. due issuance, dollars REIT.

strength accessing program of of the million We in the additional by for also equity market $XX took advantage an our ATM proceeds.

have cap non-core And the million we a mid-Xs for to rate, Coast on lastly, year the West $XXX Selling assets at sales earnings for on remaining been $XX our a of the the blended two call, we our closed just million at one blended working bringing asset sales although of shy total yield. upper-Xs after time on quarter closed asset end. last of the

than on This on billion positions hand More importantly, activity a blended credit sub-X% facility. of and nothing levels unlevered liquidity IRR. million at cash with higher our us $XXX above-average with normal $X drawn newly expanded

While second by plan this execute our enhanced to as will on results on for both better be financial as flexibility front. XXXX, a the on acquisition few development of pennies half couldn't well positioned the weigh the business we

for and end. credit A- liquidity quarter to Our comfortable at at continue levels rating be metrics extremely

Our net debt stood at to times. EBITDA X.X

we're maturity $X.XX share the for of range from range remains and XXXX, adjusting a at Our as to FFO adjusted per to fixed balance charge average debt to to years. our of With respect $X.XX new steady guidance $X.XX ratio and coverage of weighted $X.XX at for acquisition X.X Kmart. the our times, XX tightening

of the On this of primary a this charge, markets driver revision activity Kmart includes NAREIT-defined is I $X.XX the just $X.XX. to basis, highlighted. capital which range The

$X.XX by hand, the impacts activity being position cash of model, our a forecasted results and on plus quarter. and our this midpoint As more sale next impact through $X.XX running asset with the quarter

current headwinds time. global dilutive increasing it seems political year's balance running of prudent slightly more wars with at macro and even With this though trade sheet both conservatism, earnings, the growth, domestic uncertainty, and slowing economic to

XXXX. Now preliminary on some on to thoughts

nature. and which of at intensity, several greater near-term over going we our directional the budgeting to portfolio growth going of medium- and the long-term of for re-merchandising we and the keep midst chop to We I'm very to value in opportunities process. forecast. more quarters. wood alluded in our our this finalizing are have after are in And the Still creation XXXX repositioning still expense the next

Republic former range Roughly year at Shop Street, as also Third recapture in as million drag and roughly some at spaces larger Darien, & by handful more this Escondido an upgrading of that the that Santana driven Assembly at benchmarked $X $X.X deals a of places the smaller million Pentagon deal anchored opportunities, re-merchandising tenancy. we get after some like which cost-plus activity Stop of at Banana per well see rent may net Row. environment at Row we've given We and of is for right that from our

losing impact to XXXX. of have Barn Dress which that annual run locations, projected of is the have also of impact all We $X.X XX rent million rate

that to we backfill of until we've the begin low-end in won't online should which $X.XXs have Despite still lost, us we of back of $X.XX the While X XXXX. discussions roughly come $X.XX, rent net to these estimate active of as a baseline theXX headwinds, into we growth get to are range. that that mid a

preliminary with upper to much too guidance can guidance, Like it last early of in forecast our push the how we end is predict year's higher range. still process

contribute drivers However, a XXX could just Angeles upper of you of the We'll deliveries arsenal this more target our growth comparable forward of as and from weeks. on topic call, expected Los preliminary you the Bala online, the Santana on to coming given $X.XXs. although as the quarter a term couple XXXX, an diversity into as acquisitions in and next front, we redevelopment the departures with outside for at have & look close Assembly Pike low Rose, growth NAREIT range plus this such starting Cynwyd push the in and many particular for in Downs expect offset have in seeing XXXX in aggressive up Jordan well continued our releasing pool, aforementioned maturation initiatives, highlighted, Residential to top and we strong a comparable given tenant our the CocoWalk, to fee that of of end we proactive

up line that, open for operator, can questions. And the you with

Thank you. Scotiabank. At session. [Operator with proceed a Instructions] comes Nick question-and-answer question. with this Please time, Our first we from will Yulico question conduct your

considering they is with rent Curious good Nick. expectations you Kmart start just then else Square rent a terms redeveloping morning. to Greg on This more timing and And and happen the Hey, paying the on few asset in I Atlantis. was when really get what needs backfilling Assembly for marketplace. that at and then details start of on again. can to to hoping start

But about about few talk let's Greg. things Sure, a it.

I So familiar is property. -- of it of the and kind power connects on and assume pretty effectively it where you're how the the center with, site mixed-use

Assuming that, you think about know that.

continue year, First the will out. about then the I the through of of the year, end the rent or of end just all, think, through early

be have on able will to to to to of couple able effectively do site. stuff be take together. We that construction, entitlement us put That to for start a to years get

don't We years. those on expect couple adjusted for property of that

to We how transportation be end to day to in darn activity temporary there expect XXX,XXX next up. of do even is it's the retail a pretty to day ways of leased significant There's ground lease it terms the sqft box not right because at it. up, couple It now. gets tenant right of may floor a giant that

and that something the but to be really accretive done, extent we Nothing can get actually to done. it would XXXX cool

on years, be the mapping as should millions do, hope say, of a that we spend. be site in yet. couple thing to Just that hundreds of we of re-entitled, get able not which I But done to the do when dollar of in

done. we for deal, the worth certainly waiting it big extent So get to

clarify And that just to on one.

entitlements to transfer have Square at area? that Assembly the you don't over So that

that some and/or for other for addition. the but on They're for in use is retail that site have office today, ideas residential fine we

a then just second follow-up thanks. Okay, And here. for

earlier might looking your Banana based exclusively backfill, So are like? regarding that Republic, on retail What backfill? look retail redevelopment opportunities Or still at are considering comments you traditional there? you

take Jeff want to that?

into some alternatives a the building the redevelopment, and the of say When we're the changing working reworking reworking through the right could go Greg. talking now. we about building We've building. that uses interior Yeah. envelope, Hey, of we're got really not but number of

Traditional it. through or of great. the three idea leasing give now there our little and building. we're retail portion heading. to quarter backfill, forward response for potential on to a a of be the marketing is not for Right has have in we hopefully effort able two, all definitive still the And been working alternatives But bit or but we'll a more four

capital than You out should the big the you that out by getting way we're lot and pretty and project locations do a create million building, do to way what number of times lot in When look rent accretive like of a -- you should be Greg, somebody rent we paying more how bucks you can back you necessary $X of comfortable that's by today. there. say, rent? an will, get A and that the that, that expect even coming will more rent is darn the

Yes, we his the like go, in regardless Promenade. assets the our which going go support end other street and additive the are to into to prepared be on relative to of that uses current of the direction to the Don said tenant building remarks,

All you much. right. Thank very

with question. Our your comes Christy from with proceed next Citi. question Please McElroy

of timing what's that and currently, And by good market? the guys. the Hey, clustering Hoboken. is a up of And kind aggregating single possibly wanted of in more benefit all closure of that remaining what Did the follow say to the of deals? I sort on was space you owned space morning, partner? just

them. asking Good for questions, Christy. Thanks

We closed all, September. of the timing. of fourth in the First on first it the the be building quarter. in of closed rest Most will

different We're may the some first partnerships with dealing it's Some a quarter. or structures different of it of drag and bunch buildings. into

timing. terms in so of the -- So that's

one critical street on able years mass a influence getting We both street Street in merchandising to the player Third in do always real it effectively is street and retail to influence we the and in ago. struggled have were be Promenade of street. things the on going economics the the on of that what's terms with of here, of terms the to In enough

tried You it on Boston. to Street do may in that Newbury we remember

buildings, much wanted. we're of We have couple we a bought never able to get as but as

buildings -- the uptown when secret RIET-dom. So that Hoboken. power in we is when -- do we latest next worst deal in of got sold some through. both We probably buildings we the This kept where fell is this those and the I iteration downtown and or bigger XX understand

so been lot doing positive. buildings And and for with to we've be an rents in been demand, of respect has awful work these what terms and extremely -- this of that it would the demand the

very as of here bullish we're it So come on in. us more of leverage that want clustering of what retail tenants can clearly is happen idea the more here. who The the expect to gives would exactly you storefronts with more

all and just for looking terms but then at space the also of the in on you XXXX, terms kind moving of of this preliminary in parts And range at recapture, lot of detail the what's a known Thanks. thank point.

it fallout, As the you conservatively terms how credit into or in next you about think and right looking thinking tenant same more kind you of your than of what's kind year? you unknown are in now? it loss of Are for credit at XXXX, is about look tenant the about and environment budgeting you did

early kind in of I kind we're think type Yes. of of year. as position last of process, the similar At sitting this a stage

with point debt it the I getting looked even line most where relief, how be more we think this I before. we it past think all we of would total kind it and components, different comfortable. expense, history the at kind we're more I the would loss don't that think where conservative bad aggressive with is consistent whether keeping today, feel in in sit year of kind year last unexpected or of expect kind rent over of credit we of vacancy kind at of those

Okay, thank you.

next with comes proceed question Capital. BMO Please Our Jeremy with Metz from your question.

you then and in good if expectations it, XXXX. will have think drags those now commercial into X% guys, but outlook in morning. with much the to some that here for year you Dan, in the And of expecting revised pretty here coming be how in Sticking as how noted, relative the next you're the also trajectory about we appreciate the of POI from XXXX, residential should Hey, comp additive? pool should direction be terms the XXXX? the

With Yes. budgeting the we're up. This No, our process. that and we through asset, dig able go early each asset process into -- dig that each we're too of yeah, to every things only plan still a roll business that's think XXX properties, I in very was and rigorous at and each real a one into -- everything. pretty ground every

at we've This that. not the and top-down where We're got a directional. very is sense point of

a on So sense where really have I don't comparable.

moving a of do. said, parts, As I lot lot of a work to

So I'm not a the give prepared to basis. sense POI of on trajectory comp kind of

it, comparable Coast. that way year. beneficial. comparable from additive. a be kind and on one is us too still direction the guidance to office should for for or But, but the hey of other the That West kind of comparable particularly next should an of be most within of give That a should number, look, of any And but within there the of I think kind help that the perspective some pool, pool, on residential all, good chunk our outside residential early

Don, acquisition then, front. the pipeline got lot And a here you the in Alright. in

that mentioned You pickup out environment in and capitalize the interesting opportunities conducive to on these. there, out go

obviously to sheet the do so. You have balance

in Beyond more active here that? how is we the about in Is hearing the there be pipeline works the order? short $XXX that here, beyond million could

take of would We it's notion when and were Jeremy. you asked proactive they the themselves, advantage kind how where start not There of you're out kind we we releasing lot to you is do. and we a spot that's much where smooth acquisitions, reality of -- it were is. much to asked is on how smooth. of It's avail opportunities do. The

really And proactive think The of weren't the we're so a the ready. And market lot of of acquisitions. time. to some doing very on it's including side, stuff, economics the a But it's and about this for the time. kind a and been We've good a acquisition stuff know wasn't ready. side long I done -- I trying both get

where high-five optimistic very and on it's it, doing here, and even in we're a were we're while, hasn't your able that do that on we're I'm around some why though going because future to ourselves happened deals our turn dilutive. in

yeah, So, hearing very about you well more. maybe

Our Craig from proceed with Please question. Bank comes of with next question Schmidt America. your

Don, to what describe would beyond it Great, happening could in like the business Hoboken Hoboken. opportunities But you you. It could see obviously be that arm when you acquisition, introduced could sounds and that you Jersey. create you development New thank there? said

This I with we're done also have that development properties accumulating could, other but there. an everything a of and is long that's has partnership I'd an initial prefer pretty large other job, not They local to. there. into dating. The company tentacles amazing -- opportunities frankly,

idea the being and potential we to able in including opportunities Hoboken. of us do with and them, around saying So what more got of

talking I'm where is from far Morris So or anything not we're about which going to center concentrate. away gravity, County this of

you. thank Okay,

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

goes & year? just that lose the to Dan, come $X the sticking Stop pool you there, that comparable POI, make where to next out sure Darien. here, that the the out the million of Shop, just I for rent question's does want When --

the pool Darien at come out basically start will the of the year. comparable

next that have drag So year's -- but metric, that will FFO, will will on on drag POI not it have not comparable have because...

not comparable. It's

exactly. comparable, not It's

and the for of any think a then or so sort At sort main points. this unanticipated are kind then the sort just Kmart next of it, you of then right. Barn the about and it's you sort vacancies Dress I of you think lose, headwinds, point, And is basically of the to Republic Banana to wanted if year summarize, those lose

process and as other as in the mean, re-merchandising, in, there the now, get whatever And get proactive to is opportunities Don get after. cost-pluses. is I stuff, it. bring can Don in can we're and other through remerchandised, you I then to going There also demand tenancy mentioned, new we've when after whatever, that, been after we when as you alluded said,

budgeting something process that's think I now. our working we're So right through in

that's yes, but, So right.

CocoWalk up Okay. on here. a here. And We've the went one question cost guess, little Dan, I bit noticed

the I story was think around What's $XX it there? million.

we term, we -- in that a GAP when west laid -- to expect so GAP didn't we got and it out, it's or it's and development ' project, Well, store it's XXXX, side not two-level touch bigger the XX, our we side. the plans. A deal. a had that that so -- and plans, of and redevelopment Yes. so we project XXXX as did really we were has

times be get allow was better able of didn't to we're and to. a construction you the going rest but the us to of of the project as So, if that will, west through thing to therefore we project it's wing, access space to think the clearly could, the

with you bigger there you've yield. a that So and got nothing got changes project

So on you're for paid getting the incremental that. capital

I think positive. it's a real

Thanks, Dan.

with call next Sandler from proceed comes with question O'Neill. Please Alexander the Our Goldfarb

Don, good Hey, there. morning,

few So questions. just a

Newbury years First, your it gave What versus of Don. sort that here street in what's bad I Hoboken you word. the Hoboken sell street street retail areas? in has efforts York situation a other ago, your didn't or of where appreciate in the the just Street retail curious on -- you obviously experience versus same number on New sort we retail of comparison of Miami, that Hoboken comfort but how going viewed in become

Westchester, so to from -- to through moved that Hoboken know And Long whole Jersey Hoboken me. it's They're the of and even are Jersey go go I a not it's coming etc. right? through. not Island. there. am different than And Manhattan, people And that from from They're generally are lot kid -- who Yes. funny, Alex. coming you to go

a The So below $XX, in-place completely different market. it is Alex, okay. are rents,

street So in-place scary that resi talking are rents not way. we're about a not $X.XX. The are numbers that We're about retail. talking $XXX

you the talking just near that changing, important to the its now, changed markets has because we're right. Manhattan made. of has of its and the have anywhere I'll -- is run you that So What extent not more things tell what to Manhattan acceptability access about is parts changed

from not and can easy. the about And you hopeful that we're the deals are of will, places that that that talking West all you you of about And lot I validating if part investment. to And getting we're so Hoboken in see it that early is when from a sit will think thesis. Manhattan, globe, tell of side you

on is focus clearly Day Don, record. second the And the dividend emphasized earlier Investor at Okay. question repeatedly on on you XXXX. the the year, guys this then growth XX-year track

the my capital $X.XX right. if out in the pieces, positive is the the math activities acquisition the a sort down, acquisition of with retail, going the negative $X.XX through from on $X.XX there retail Dan $X.XX sounded since that net of on but So coming what's side, was you but mentioned drag going capital, like through it the be the program, net from still

other going contributing for other growth low other put is factors are that trying What there seem you to drag? together. pieces earnings things what Or other to do? are Is it year Are an the Just that would guys? the potential projects may are you that abnormally on? it

Yes. because we are for company. Listen, I you multi-dimensional feel a

a that lot to from occupancy -- pieces. trying We of growth. a when empty provide It's really some boxes up time not have at our of we're it's that not low all. bunch a lease not was

space think you X, look in that's $XXX to the income balance of on take of There when Santana that hopefully that at million over that. sheet, exactly February zero that. producing on you X thing So February construction things XXX like a and to pretty on and turned But a from Alex. being Splunk Row starting the adds good progress, at sit that

but started Money's out. that. not income is Cost money effectively of out, has on

drag, will, if of extent. and you some earnings current a in is that itself So to

So think the we not I dilutions. Other big of through, think can did things I the Danny most ones went in specificity say guys, rent of a -- are, think through a we that good starts with of in rent and pretty there. sort job month-by-month through

if perspective, portfolio my me make and to for and future if we better this we with you get every X X didn't ago, we up years years -- X grown single X beat year year. years we earnings, as of grow smaller, from assets. quality the it's know, ago. everything But ago even the stronger the haven't still can that about ago, says Because

obviously good appreciate were track. few the was your was were one asked there you've through any past the just a You done why if do, wondering question, able few over and That's past massive I manage the I develop development the I specific which item that job the impacting because development the managing years, is -- you've delivered we to comments, years Don. that XXXX. why But

Thanks a lot.

Our next comes from question Haendel St.

your Mizuho. Please question. with with proceed Juste

good Hey, morning.

guess an certainly your acquisitions that to long time. I in and the So, haven't Don, beating in dead I but the a excitement sense horse, heard a voice just, not acquisitions,

getting I'm Is these seller more what a of you're guess deals some I from Thanks. the be Just sort some to side. pricing more the that of Are So they curious bit what's driving underwrite? to curious on engaged? easy your changing? cost Are willing expectations capital of of making enthusiasm.

A lot human things. of

right. I the overall notion are the That really, stay recession -- isn't the think to talking today we're strong someday. assets, going that -- really that forever. absolutely be, that's to is where there about Whenever when coming especially there is such time good economy yes, going is assets a

can about because my a wasn't the And the and worried having economy. of paid, looking the who have at get about dumping and a gut, pretty good we but today go they -- well not and thing able years get know no, properties couple generally ago. their get in can are is of We're about be they sellers sellers obvious talking paid just paid, this is they terms there when who time future to only that and are rates talking up cap

the on side. that's So acquisition

better that the the a problems shift different not rip businesses think only rather been there a work term. in re-leasing than band I I aid to number it's of off of think And in the proactive major most in retailers, On has but side, long places. see in through country we

a DC area close they're was it it. restaurant When to kind off stores, not and I well other doing but of in let's would They the willing company, doing in work more area. old days, they think move the through in DC not we their the well say, had forward. rip to who have wanted Today, places,

that today So is and on side business in the -- that's the in of retail view than out there business sellers today, fundamentally my is there was psyche both it that different people are doing property back. it happy couple pricing? great how because years Not a we're still but really doing, what impact they're a deals Does getting significantly. these real estate. with we're they're them, expensive, we're If really few of

helps. that hope I So

of to negatively. to bit the guess I'm on Clearly, and I does. the That incremental and curious thinking dilution the is reacting And here the willingness that drag. some take market

are there higher think growth. for I expectations

And so your fully big thing. appreciating

for the You term. building portfolio have a and great you're long

factored of -- but curious related, why now. all some that Just into curious understand you thinking, a that. how how all that I just entitlement be may just

no it's on for stuff, when Because it's always it's the to I speaking which no. let to you me make of very are of can No, make not. a always you for expectations there companies - sale, deal It's silly covered if thought important my what is goes economically, have not -- economic psyche, now. question not an to kind in it not it people crystal earlier I available, previous and change practically willing deal, are it's your you but question, do a lot clear and

deal way There working of way, $X Kmart is economics do people to too, respect in willing to do no four And those I in No, next of save to for today, save stuff believe. There available the those? psyche -- way next they're business, that Darien year. reasonable is so be with more do a We're effect there we'll we fundamental there we on today year. the today. million if deal years. our this no is to And billion wouldn't the $X is no to wouldn't because difference

Derek question next Bank. Please proceed your with from Our Deutsche comes with Johnston question.

Hi, you. everybody. Thank

and for inclusion yields moved about office Would a process Just residential entitlement housing? probable back make briefly, fully use mixed there you more the to will Assembly low are given in that the sense, with be affordable development Kmart in? Puma coupled of concerned of and percentage

it. jump real is there decent about the sit an way real concerned and through, changes viable value when I'm and truly there between on opportunity, create but way here. estate get on traffic things fact grab can any all that to back, look on look of and cup at an say of everything development coffee, you how the Because processes the that go things the significant and I the time and think estate economically that we guy site is at two a none sit

factor better at that perspective what do most you get knows on there. Who accretively this be? perspective, Exactly not that I I they and jump that acres, a long people in might in income something can put think to in XXXX that's or point. can we something X matter. XXXX leap value to can the model that for a a But isn't both know know the in And an

Yes, gears. just that's a great property and I shifting completely understand. And

and any them? We other quite few haven't Coast really next Miami, could with kind while, on develop and further the had success an are a to the as JV other on West opportunities any years? projects this metros, relationship Or update in within we such see the or Primestor the just there portfolio thoughts of grow And there? in replicate over

you Jeff, can take Yeah. Primestor?

sure. Yeah,

of the that top that doing capital terms what and the or of we years on in are of operationally ago expected. couple we we POI NOI underwrote right invested we've great So a

a that little business. everything footprint. maybe bit that is that wouldn't So standpoint And as planned. We to I going but slower would we're from doing doing love liked, grow than the we're

construction, next We the were will got we're year. We Gardens acquisition adjacent able on early hopefully year. property that we've to things speak delivering have Jordan box we to late on to Toys that Bell of as Jardines other into couple come year. Us pipeline "R" Downs acquire Los next under fruition working last And a our the in

all as business heard is That that LA, you've before. in about frankly, The particularly competitive and how we're said, disciplined go acquisitions is market Primestore. from difficult quite this us part and of we California our I about mean,

something significantly grow can we we extent loose But perspective stuff we deal, do the is probably do definitely work something seen we it's platform can just definitely shake day. hard us to we why want to acquisition it's and will with haven't and where which we yet. deal an So we money, from that a do to won't on make think a every

let the second the take mind. question other I'll of metros, Now on if you don't half you

doing conceptually no. we're want make around in. those I and with other is jump that's potential we But sure there. Hoboken we in we I through, market think in. as Hoboken, at before mean, to we all. that respect look something to Yes, in what even and markets a we there the Not mean, that can have experts

tuned. stay So

from Mueller Michael with comes Our next Please question JPMorgan. with proceed question. your

between I in hi. of terms split transaction, on and guess rough NOI? what's Yes, the retail residential the Hoboken

of XX-XX, and and about right? Yeah, roughly bit residential little XX% commercial, retail a XX% office, retail -- XX%

Got it.

Okay. mentioned quarter, can quantify lease the some you Dan, And then, income you that term in just what was?

and last $X.X XXXX, Yeah, yeah. quarter. had so million in a year of this strong $X.X quarter million, and We

our on comparable, modest big a the So a outperformance driver of comparable it basis. wasn't the but to boost

Got That it, you. okay. it. Thanks was

with proceed question. next Please Our your Vince Street Advisors. from with Tibone Green comes question

Santa retail Place, morning. also Could just is Monica the how talk there? the your health elaborate Third and and are Third at you so Banana that overall the good little Republic impacting Hey, a vacancies of bit at Street plans re-dev. you're Street Because about wondering on on there some area rents Promenade the expecting

Again, Jeff.

the that Banana in pleasantly in we're and alternatives Promenade And going very on that. said is Republic. there Santa X got see go few minutes south X, have right through. know the street on No, true. like we've I we can Place, some on working ago, what That's a turnover surprised definitely your at now. Yeah. as you And you local, I the Monica We're

toward building space the for There of competition building. is the the

As to currently whichever collecting. rent go, Don said, we're materially going we choose direction more to collect rent, than the we're

like really mode an I it So pleasantly us. can't about a and negotiating because going to marketing, surprised kind are But I in said, of it's lot be leasing, we deal that. right than we, now, more for accretive a say

for real to cool should is the us, just to of evaluate just add highest that would about don't we and I of here we this use about thing Vince, only one the that think -- for JV, estate. best the get think and And everybody things and you

there shopping the retail or a in our to so is all center, a part, And building that. can use for extent or a we do of better whatever,

it of or who market, any brought to advantage. and and sit that's good that be at at And about We darn so, therefore an from and other success that execute the absolutely in think obviously, I where demand about it has you look way, economic it to think street the as I that numbers users Street pretty got Third to ability talk pay there. way other

Third I that or you're or just entitlements in Interesting, there additional in there's spot. are know use place Street, changing to you something but height, have adding the the exploring retail which now Santa Monica potentially restrictions are the

be but be height. my we be building so. won't in that, to and existing that we're previous depending on within have working envelope, may the going we would through Yeah, not the there do confident we're Yeah, some comment, the additional -- we're work we adding use, to with get city,

Thank great. Okay, you.

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

street morning. question. on question Good follow-up the for Thanks question A a retail. -- taking my

found Your and deals, transaction. urban you street Primestor two the on retail Hoboken

criteria? And need like also other your markets As much you the be around be invest would first to to you to how you do consider that, meet to how country that? think could able opportunity about many able think an

for It's for go centers. look don't look land but and We out doing you the you grocery-anchored we notion is supply. and to out one. question, when And is, a go like go trying don't things for which good and are a out what Hoboken retail. street look together. assemblage there shopping We demand don't difficult enough? like We for place exceeds Basically can example, that, to is put for get find a places have

that what spent something on $XX ago, is, good like that unable number don't I $XXX then million, Floris, years at you Newbury but we million-plus talking pretty to We know idea. get. if you million a $XX look a like history, about few were get we're the And so, our deal or a and

with number so change. or that point, million impact said, no, can't or, was $XX we stuck were in we we So whatever when just at the

and mean So we That see we which I area. you own Hermosa to continue just one didn't. a sold to We California. Hermosa that Beach, we California, sold it. I'd Similarly, Beach, in own controlled great Hermosa, was in if building love

So can it at we fully building through look to if building, at when with what looked guys, do we and you understands there one at talk that -- it -- of with rationale, one Arturo that agrees that will, the [indiscernible] Primestor us. we the and about he

is it of the of there. Hoboken, I terms in that our there there. trying do that So is type symbiosis to we're with same in expect partner symbiosis to have what

etcetera. the I case whether that think unable And there, that that's been Miami. confident on I've the we've said site in see, it we get and that up, in the we past, rents to as we're each well be rolled it And if particular confident build then done depends we're more can could whether

I not good answer that reinforce company. we're So for street have company, really other mixed-use don't we we're a shopping grocery-anchored company, you, a retail to a a are not center than not

and real company a from retail-based whatever basis it. could that mean in estate are ourselves properties We that

look to -- I a and at real like much it's it's point really it as as it's help of nuance, I because to So but estate you from I or but easier know we important a I'd categorize, that with view. can't

partner comments maybe any to return just point? Or you it -- Don, will make can as enough. later expectations> you be introducing Fair at be early, a JV but might the

I will be at a latter point.

the about closed thanks. of up, get get a the this talk rest I'll Let more through us same and

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

my question. Hi, taking thanks for

You Kmart, of would like in replacement there? about & thinking already Republic. rents opportunity? And population you Stop the look or rents discussed XX how level Shop the the redevelopment then are for types your of Barns in Dress Banana But replacement of

You bet.

me more the is it The Let and Danny Kmart first then from complex. there. take site two take

XXX,XXX the per-foot basis. expect is short-term than the Kmart done, on know a think the be it the that much term, from whatever we replacement a better it's happy you'll would a whether great cover bigger. I more don't any rent, thing rent but or because longer to with term. in whole get it's obviously I So much I so In perspective, short

will to will our will we'll the redeveloping the brand through. kind retail, At Darien in as & include project which and residential, Darien, we it we which go overall Stop -- and you you include, to what of includes, on the What lost. go Shop, well, boutique schedule else redevelopment see accretive certainly it which of see include

think And a it's then with I to basis. regards the Barnes, case-by-case Dress

of the with Dress is One rent. did Barn pay they things market

a Barn. I staying a you'll a there's you'll see and see So we of little of center of Dress kind on not mix, think enhances of really is expect don't I think see in and of think Barnes roll-ups Dress some to rent upside estate, kind really the and upside just I tenancy the ton our in putting broader a bit with value kind real that enhances long-term kind flat the but whole of some of the merchandising

Thanks.

comes proceed question from next Christy Our question. with your Please McElroy Citi. with

opening your Investor in quick thought Day, base, the Michael May, have you. an projects Christy. that selling in dropped asset at it's a substantial raise sums. in we should about interest certain Don, in your Bilerman with question Hey, for would Back comments, but

in got of ATM. would rather irons of bring in planned deal to give some Hoboken, was sounds into on now acquisition I more pipeline guess a it deals And I other you today. today the in nothing follow-up, your like to your pushed $XXX issuing on that there the capital you growing, fire, than you seems be at when you that lot consideration million your it said the equity

every Yes. months, And fair won't this budget every than say certainly we and deal, Knox. every would -- in sheet balance question process, like X Fort very I our Mike, I guard more it's say annual a

of balance happens that is the there right side the happens left what on of balance so the time is not shared equal on of conversation sheet side even And sheet. for the a never what

are when do solution. did shareholders' goals even selling about I joint complicate always where So we ATM the few money, of to think have the things you want prudent sit best and on common that. ventures and you think of as we was today, competing so the pieces use

And still applies May, that, I today. a to not so what and was bias which have I in saying do that generally is

right-size going never do on but we're Having you extent those hit, bigger Whenever us. issuances. big we do we this to never are arrows the said -- the to there that, in value ones to spicket. the sense awful open company, sure of of extent the that anything sheet, long-term quiver up all opportunities of To then for make we'll to overall equity big an balance our be would that want available lot

I that answer, every have if it's and with -- complicated on we're all look think fire were for, working them a and me you in it's, it's balance. So side, done to X and think this that. I months how or but you'd irons really a I at know a understand to are paid far, we've you so, good actually going think you so real agree do done to that, take you at what make sure get the I going close,

All of this I level. a is taking... in just also have right. terms partner on because at their that money than the joint capital in a Primestore lease Hoboken least deal, of complex a you're But with rather a say, would an you some capital example and partner staying from taking relationship operating providing a venture

least add, ...it's least value value-add. the it's all also the

real end -- because value partner, just And those trumps in something things. mean, more taking complex to a the at Right. I just estate it's getting strategically create because, yes, for we're money, money... but it's that bringing

money. Right. Well, like

think do too. I you

how this big next I billion? million? talking talking Are get big a could year? You're this mean how you pipeline? is about acquisitions $X So $XXX

not, I'm not. I'm not, I'm

If you like over I look a us balancing at our moderation. about what the we've thing one is done history, lot

the would So put you're talking upper in billion acquisitions, you're of about not at probably $X upper I but that about end $X.X the acquisitions, at billion talking not limb.

Okay, thank you.

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

Thanks.

you retail Has pound for not answer do view of and health in on am is year in Just those, bigger this business? retailers real certain mispriced but your versus And think proceed changed your people more centers the picture, even past maybe types the at going Don. to to I simplest for for go healthy answer what is that all the that tenants, looking no maybe per the with money. are shopping that's different test value of faster really are achieve

answer part the question on. love a more to be XX second of that sit it beer to thing I'd that whole question, lot through. you with and talk It's and able complex have the than Yes, to a second

to a the an asked. I'm question the you of bigger And part on that so going question you give point first picture

out. healthy, before the view a there not preponderance forward. Here healthier. of for it things think is Yes, right? a better as the does some, ability move frankly, healthier, is is it's to negotiations, rip the to there for the plan retailer I forward, is the, because there and there that is band-aid It's them I move mindset suggest said landlord, those always as And tough I off

and at don't the that. that, there up not maybe some way like CEO's works companies, top there I -- hate how boards I we'll consider the to to grocery is real all operators see sure really that this and consider, that do I office estate the stuff we level is the where maybe today, we'll those still in like.

everybody more do uncertainty overall if that, more will, see not So better for in business definitiveness, I far good than us, or this the you is in well, plans business always

At would turn like Brady to Thank for Leah I to back this you. comments. closing time, call over the

us NAREIT joining many Thanks at weeks. and a will couple we you in today, see of for of

today's concludes This teleconference.

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