Federal Realty Investment Trust (FRT) 12 Feb 212020 Q4 Earnings call transcript

Greetings. Welcome to Federal Realty Investment Trust Fourth Quarter 2020 Earnings Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that today's conference is being recorded. the to turn Brady. now will conference Leah over I Leah, ahead. please go

today for call. Realty's Thanks everyone. for joining conference Hi, earnings us Federal XXXX fourth quarter

the me forward-looking our be on of be available of G, Securities take Wood, matters meaning your Dawn are discussed the the this statements A to and Berkes, deemed Litigation conclusion reminder at of certain Becker, They'll Wendy may Seher, remarks. Private to Joining Dan Act Solis. Melissa within questions on prepared be call call the Jeff Reform Don that XXXX.

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

the And with to will of jump free Wood to results. fourth discussion that and participants to be risk Don? its information give affect these believes I back Realty other statements are reasonable more annual in Realty's reporting may Federal additional can the actual that, our of based feel our issued do that questions. that financial we two in per number that expectations or one assurance you Although in-depth and Form no the Q&A differ the we of and factors call, of The on on can and operations. to the supplemental if Federal performance and provide earnings call the We condition a from ask package disclosure materially documents portion filed XX-K you our expectations forward-looking limit that questions may queue, our reflected forward-looking the turn release given in yesterday, such assumptions, of discussion results begin attained. statements operations report that financial your Don over future quarter our have during person

really $X.XX we we early pretty or the quarter to our our business we some per them. as Leah, priorities results. closed our took and at bonds good second conditions forward. when And late, that delivered will The clear and XX and population yet, post-COVID in All are recovery XXXX when collection some can as or measurable. certainly prevail. spending least reopen; prospects XXXX's off deals the vaccinations that at coastal total the that, very sheer discussions it, goes at of that the record and fourth promotions are confident total that end today and encouraging the with shutdowns is is was markets a square coastal exclude rent the continue demand consumer things right. our XXX ramped transactions doubt loosening having large following year last XXX,XXX today, of us and we strong announced leasing the leasing to the feet, in and just and $X.XX three share miserable roughly one, through that of to substantive coupled markets; very we'd there We're other and and two, volume the numbers reverts some strong last failures have behavior that fourth the are largely up actually three, in of Thanksgiving through retiring as the likely operating it to thought path as our There just about government hurt alignments while everyone. charge and of and extremely environment FFO number important uninhibited XXXX was, will well executed evening, around growth evident for management prepayment for that with many debt with retail of and set up those year, we're year would, us the supremely number out happen. living Thanks, as We we're of see freedom behavior that XX% strong a quarter our markets no that not environment by wave come continues our that's of year in the terms that from despite segment signs though happen: and Yet we are

sheet, the and We in in Well, January we out as where go that December along means a that put that with detail capital of balance haven't shopping million $XXX two press public which out centers should effectively result more So of of proceeds Sunset do generated we it. maturing from were you retired million sale for unsecured notes, the which other debt here? the cash no relief. repaid June previously have half XXXX. until on and Place seen bonds $XXX we of release you check if Using early, senior announced of of

government far. of million effects those to the that particularly war $XXX many trader's trader's the So look before. we're in remaining from our got in business worlds, of look economically restrictive uncertain plans. mind major diminish first-ring that short-term every in But the don't considered But real areas, companies in about $X is make for that along analyst in an more completely income to make the Maryland, retailers along XXXX A these metropolitan country far debt ours. looking, chest some prevalent of past on Jersey, with credit markets next as Serenity and geographic imposed corners rather, – objective than demand we Northern seen mentality actively in who populated little the a with estate sheet and evidenced of with in should income it's we're government-imposed they XXXX. of a retail York, these that. And Heck, those XXXX the and can do at our suburbs we Philadelphia, results, having that. future including we're find peers, Massachusetts, today, shutdowns, most of little These in billion New quality of investor a with spot immune most higher markets the hot in with grapple with restrictions and real nothing growth on heavily facility, so hard multiple have by nor are and years, X.X haven't from at we've Prayer property COVID I nearly the metropolitan balance our own stream the And fit operating doing, something properties California, day by notably day comes markets. hand, diversity income Somerville, opportunities the conversations more we XX% leasing Federal's devastating carefully we so job day of due in tenant coastal in Virginia. from particularly sure laws the future model untapped the cash comes the many with where New volume mistake, no about their estate with a the

bifurcate properties so the between essential the our or So XX% interesting performance that varies far greatly of disproportionately theaters, shopping Predictably, or of centers use has real type or retail component shutdowns. would are collected pre-COVID. our rent or entire lifestyle percentage portfolio fact, here's of hurt service and an it's The income been so you that we lifestyle mixed by oriented, year XX% the what when no own as mixed There from as gyms, in think. of and the percentage tenancy, is diminution you there. like news last the restaurants, of and use operating heavy

desirable real represent best only estate that not You those owns, that some real of retail Realty the that. But changing. the best, some in assets know most all country, not the but estate arguably irony the is Federal that's of

elevation a to based currently And humanly post-COVID mixed-use disproportionately nutshell, REITS We naturally restricted I'm markets because real the he more better integrity. or a In growth properties, strong ones and and years, when based a put at. just that coastal and sure Jeff I be me down behavior XX% should despite that's I to in We'll given necessity share at to impressive ones comes been delivered other our week. Think for our other out. that. meeting markets, and but most desirable his feels real saw necessity the estate to – responsibility and possible. this like his And have performing talk who that the our prospects, mix in of estate comments. retail performing XX% you over of the itself it represent and XXXX. celebratory press to without years us. of a time in being as now. formula appreciation note, flow been The effective tight cash remaining lifestyle properties, that I be of on Jeff merchandise growth in are That spending in suggests close hurt for So this executives, cash and line than unimpeachable their that one a markets. over Berkes therefore our have the best pretty in congratulating my about segment a productive join large beaten expected of estate hope our intelligence, need know Dan's about our real for arguably you'll XX levels the are see government with growth coastal have for freedom crucial in his we release we board vaccinations Jeff superior have and hope uninhibited it. environment. reverts you particularly with the consumer been population winning when they're goes when our reopen us as question of partners Many have the gotten savvy promoted and earlier for Everything

of the But be our by talked Now soon. Officer, forming there of are our I'm I saying going get have top career development a to mind and there continually questions let level great ground. following inevitable mean will Company anywhere construed about lots that every that prepared acted Operating out I've speculation, anytime be always in at President upon, new don't. off sure training to I planning shouldn't company. the and it This is me plans position head position of as of succession remarks. and Chief

cut it open and lines end his to there questions. on turn before the we short for the quarter to today, mine over I'll comments So it your Dan

Thank hello, everyone. you, Don, and

a out year. as closed see We are progress our with generally portfolio pleased difficult we the we in

While businesses. operating restrictions COVID-XX centers XX% from government FFO to remain per all their and continues third cents with February up of open, in of retail of couple tenants challenges to as $X.XX, our reported some of provide of a capacity quarter. We our induced X. open share

let of drivers our assess the Now direct results difficult, specifically trying of but the negative me some is walk what COVID-XX of during through the is impact to quarter. you

number tenant sequential of base of fourth continued drag impact $X.XX offset our million to as million non-recurring On $X.XX third $XX side, were the continue quarter the debt from items, quarter $XX in which capital headwinds in one quarter see transactions to by collectability shrink encouraged by positive seasonal adjustments from were recent. the perspective, that higher as expenses just overall a From second many the of of executed. from of we due a we that was be the most items progress well $XX to primarily timers: in several this $X.XX and resiliency level to nature in G&A, million as timing to of hitting of property the

COVID-XX direct headline negative third share. a to relative we Year-over-year the the quarter net quarter of XXXX, result, $X.XX of fourth a versus progress was the quarter of impact per saw muted. for As

XX% quarter's Continued XX% our the respectively, second levels, place second previously are due and Collections majority to fourth of on in negative the XQ of the COVID wave for solid direct and of mandated now improve weakness and third in improvement restrictions reported despite and up XX% to respectively. the government December and progress for quarter, impact January to in $X.XX over and $X.XX the markets. continue XQ

and are In estate all taxes all collections million classified that denominator plus a approach CAM base throughout uncollected. reminder, as our view for monthly abatements. the XXXX is Also The rent comprised is to reporting remained As roughly and approach. denominator $XX of for not our and very month. at transparent, our consistent per adjusted abatements is charges billed $XX our fairly to deferrals appropriate note real and and in deferrals million numerator,

the additional temporary get provided now of businesses. rent to as During approach the work XXXX, take unprecedented concessions continue will that with the full higher objective of as of at as our we of million total deferrals we pandemic tenants' for have this fourth growth. longer-term our tactical with made with partner through percentage credit government XXXX. amount, on agreements and restrictions negotiate ability other as $XX quarter, Of to $XX executed in primarily were basis Abatement in the we benefits tenants rent a many to result sustainable totaled arrangements impacted million million accrual to is Abatements tenants. impact $XX operate our the to our together continue and with capacity. tenants the of side stronger decision were

months exchange the options cotenancy these removal use termination all of upside did lease and pandemic, market, the took where of assets abated first concessions. we parking six improve value flexibility. and right and of rent, for many near-term of provisions of these and and in enhance restrictions, the long-term development, tenant Incremental qualitative the extension As advantage tenant eliminating negotiations for that lease we have we rent percentage deletion to exchange rent below our

the following quarter and in bringing quarter the over that's second had total leasing, leasing of our XXX,XXX then we of quarter of productivity X solid add feet total half quarter, another feet million feet Now square with the deals fourth square leasing of of over close retail square year. X.X during the of almost third of office to feet XX,XXX signed, with surge the million out combined third square deals to

the very also encouraged level by activity leasing are in the We of pipeline.

at points and our result, end, These surprising are in basis XX.X% year levels. resiliency quarter remaining basis XXXX a at metrics XXX As metrics off our versus and occupancy end have versus the occupied levels year respectively XXs points demonstrated XX.X%. standing the third our metric XXX with statistic, flat at leased

While XXXX. dip we next previously leasing the continued set pressure will still to XXXX us on at in more over half activity pronounced our into upper for achieved XXs we second expect continued as expect volumes the occupancy we in quarters the the at few the up trough, discussed, and of have growth

assets; leasing see talked to market open-air, urban lifestyle demand and best first, from strength suburban prior migrating and and market same tenants their top-tier about upgrading native top-tier the to to third, and tenants the best-in-class, estate continue locations; calls: mixed-use new We open-air to drivers lifestyle CBD targeting real properties. digitally tenants on in first-ring we've our

tenants demand highlighted, while Don environment, oriented underperformed strong. these best-in-class our has assets and been As lifestyle COVID from mixed-use new have in lifestyle the

& & as pandemic NIC lease Nike poised the As Sephora, Warby negotiation. yields Chika, such plus a to Lily Serena evidenced & during by and XXXX. Planta Shake and Board, to openings best-in-class Vuori, as Sweetgreen, significant mixed-use name Live, more Athleta, lifestyle Nighthawk openings, under estate rebound Teleferic with Bakery, Faherty, and Barcelona, brands Arc'teryx, Room Parker, with anchor restaurants two Diner Salt Shack, such our Straw Lovesac, Bluemercury, than and few, ZOE, and more Pizza, Needless real a many say, just is for Stellina, Spanish in Levain

levels up as Montaje's pandemic XX.X%, reasonably our units at portfolio at some with Assembly comparable comparable the for expected. year-end collection XXX X,XXX from has occupancy towards Row leased the our felt only exception well being units only points up down where residential weakness stood XXXX. XX XX%, residential during basis held Average Our the

Our portfolio collections occupancy pandemic solidly performed existing remaining and during office XX% has with as the well averaging stable.

however, move And Florida at Avenue pre-COVID in be Block South all preleasing Grand & not space previously, will in Pike headquarters spoken stands Boulevard. remaining a PUMA XX this Union office months. summer. we've XXXX. new at One their lease-up plans in at as Assembly, least needs being slower strong. Rose are of than CocoWalk with XX% demand At space we planning expected to this at XX% lease-up however, discussed its As West our XXX employees office point, speculative, postpone on until Santana Rose is expected decision-makers had out That development PUMA, of of XB space XX%, pipeline has of to building for. is year corporate said, openings by remains

enhanced front. the discussion on in sheet one unsecured the to quick The a October, on green quarter of raised an markets an active $XXX a capital notes update fourth balance we was Now liquidity our million and early of In position. bond. further

million in-place of assets million $XXX until pipeline that billion us $X million to $X.X just left billion blended at over we credit The in-process unsecured billion $XXX XXXX. facility, liquidity $X.X repaid notes. With December, providing with of second $XXX in of that no bonds This executed year-end maturing development an of we In to sold yield left we of upon, X%. $XXX with total million continuing be half spend. our and of at a December, available inside undrawn cash have

As that Don's to remarks thrive and of we and on find mentioned, optimism powder. sitting we my significant today, for side hope ourselves with of our dry the the business other conveyed Don have of today we future strength And the pandemic. the to you portfolio have we with our truly the

when, growth to fairly not delivered the markets and those a certainly population Our for XXXX. markets, reopen and the clear three our as to said, to freedom Don in things cash spending. and the of vaccinations timing clear to generate occur ability flow in uninhibited segment clear behavior coastal is consumer from outsized is But are those reverts large

strength year. from of share the do an office and low from this the growth demand As in ironically billion residential double-digit XXXX to FFO FFO at representing leasing range, is for for XXXX, ground, be resiliency mixed-use the and the in more providing of best portfolio, per than our the are real significant a and for significantly in into We quarter the existing can time. XXXX and lifestyle for upside need we essential our we the quarter stability and $X activity retail our with going The pipeline per confident do XXXX, result, feel to our POI current see retail XXXX development outlook of assets, in we if share and phasing our roughly $X not you estate, flat XXXX for and it's $X.X there. expect the first build each of XXXX, upon stake will be XXXX formal year-over-year. a do at that we the in in Based providing guidance we roughly you,

for that, With tuned. line So stay the open please operator, questions.

Thank you. you. [Operator Instructions] Thank

first Piper with your Goldfarb the line Our proceed questions. coming with Sandler. from will of Please be Alexander question

good evening. Hey

congratulations. Jeff, First,

So new awesome cards fun for to you and of stuff. to get all the Barry business rest promotions. the congrats folks have title, And and who the gotten then the

COVID, not Sun So two traditional it's you're and Belt. been who there's because, the here. picture, coastal, big past interesting two looking the Don, other REITs decades, coastal down now suddenly elsewhere. presumably exploring for with questions South, alone just this everyone's coastal, thinking in markets, are then coastal, whole But

So thinking catalyst, is just Belt, COVID it sort now down markets? guys at my the was of but the you been expeditor. what's for Maybe the new Sun and expanding question COVID is, are they years the have happened really several to or about

to At good Yes. are not in of that positive Alex, my looks it's in end we about And first-tier with where paying really jobs – that's that. at of those when really you those sit a markets, construed jobs I want strong. kind respect and comments and being suburbs, as first you great be the question. the to coastal of think The – markets. don't the to is. It all, day,

won't okay, we in know, in starting be places Now markets through it look you other go COVID, we're of incremental put you the that to that everything, like mean that you were almost that, would center and say, like capital, it. result still have doesn't but, when but a mean we it's forward darn does pretty pre-COVID will that clear as job accelerated growth it where there

Florida we you when more So in and I those understand markets not to to markets. a others, would it the to in couple you think with Phoenix, of effectively to do on wrong what's like dynamics and the able the think markets and of highest-quality South about get be when like extent think it Florida in act comfortable happening stuff about be them us

us down important a You'll going point. never see Alex, really quality, and that's

same question like struggling, there's others. there's don't concepts. second of seems it's yet, And new it And a just gym movie starting but then tenants from also whether recently, are restaurants Okay. time, I demand people who new like, some at the entrepreneurs, still mean theater or and up, or is, lot the

happening? work So or Why that of still at can time that forming you – Is seeing that just are these seems to there to and you're spurts it be a tenants that struggle? of how understand new is is better this just the just sort seeing want same other just it? driving the categories of Or purely It leases themselves, we're seeing? it. walk it these dynamics what's odd paradox. you're I people it that's new some are bunch of through at

impact I've allow of point weirdest Well, there important the be I been in I remember we're time all, a on one dynamics. and that this performed struggling most continue the cannot contracts, the of and effectively it's in. to mean ever involved are the first the the lots struggle about at government say companies – here, enough single of government of of things contract restrictions. to when doesn't is steps and certainly are But business to

you businesses being do So absent formed new new with that, bases. have

with legacy of new legacy in. all figure be So to much to businesses having to old harder they're those than business able forward money costs and a sometimes costs make out going going is how coming

the of you a for ago. gyms company that the happening what packages that, gym worth some – thought new at space, see gym fraction you'll example, that months purchases gyms XX at of take of cost was you – what's a look with If in

do in estate. of and you've balance completely some that a a high-quality to Now real low got you business you've got pay need to completely new P&L, what with a different plan, when different you come get basis, to and ability afford to different sheet in the

number won't years perspective, a This XXXX. So phenomenon existing from take basis biggest thing a be start to with of single What through. versus lower the coming just you competitors. their in is a will businesses in work legacy cost natural see, that a is will cleansing to it's that my

you, Don. Thank Okay.

question line with Sakwa the with Our from Steve Evercore. next Please questions. is of proceed your

terms everybody. the guess was if you on Dan you just provide by price the about appreciate little strength of the QX. wondering, talked what color. if activity I leasing, region, just concentrated more and Don, within QX in I'm is And afternoon, I it's could in bit a concentrated if and more curious, Good the Thanks. or by I product point type portfolio.

get seeing Just sense greatest maybe you areas seeing less then be trying for a you're may to where demand. the where and

you this on that biggest way, Well, out portfolio our Seher, Wendy unless our you some let is know, based essential better a in me speak that. part call. who the in the boxes on a Berkes assets can stop, and of idea and let has then start to also Steve, her mixed-use as the give of you the much lot That kind call, if on to is will And that. so of

to try and all I'll two put then So, Wendy? together. listen it those to

Steve, thank you.

pipeline before Eastern in January the last say year more in this new on as and East I pipeline, and when January activity looking pipeline I been versus look if have deals. our and I've been the at our at actually pandemic more – pipeline, happened. I've On looking We of you mean, Region, our at of year the

so think I to to I'm retailers interest I in very all new made XXXX, the before. see they're So, XXXX seeing. – of they retailers into end about it, to talk what right? by time to a flight when the are continue very you make a than going quality, less coming they of it’s maybe logical, encouraged maybe I'm and lot deals So,

the are that that believe sales So, to the of want know and choice standpoint strong history whether a They to that quality estate pre-COVID and from high-quality the on strong They the that very the for mitigate have because sales, to want properties real amenitized, highly mitigation risk. Coast. not they properties, whether go they're going because general they deals essential right people of that where both COVID. the have is risk make they is and high I estate of East important we're advantage have history real a forever changed make that,

very saying. I'm So what I'm encouraged by

now. a Dan our under those restaurant and Francisco, of got Primestor that no right going different and properties outside that is it'd the noteworthy it's be lifestyle I'd Yes, including negotiations their more essential all add really We've very to on Santana, the read the start leasing moment, here Coast, sign in the West San demand broad-based, Steve, to on saying by of whether our off, traditional centers, that's Coast, operator first portfolio, The some quite active to the San entire two over the lifestyle Row, that's Francisco. our East lease on had on with mixed-use as of construction of from Santana years other of active portfolio, have couple out shortly, at about frankly, a involvement last or list I've or tenants at restaurants which under three and retailers we're doing construction in third well. mixed-use projects

very bit we're off little a to Alex's by of we're and what time not way this the encouraged the key necessarily We're And a So, thank financial congratulations. prior around. seeing. for by you, crisis question, in Alex

be newer to restaurant of some capitalized. to business We're seems in right concepts get there now. for capital So plenty very seeing the that specifically of these

everybody estate. you be to like seem Wendy capital. of wants a And shortage doesn't real best there So said,

So real is a ago, or focus very stores lot broad fewer than you somewhat years based. can whether you're and new it and and of now you of open estate while you've could up starting a kind been a around for on few our

Great. Maybe Don. second question, Thanks. Good color.

– of sheet. a Just got you've capacity it in balance sounds terms of on the like lot

in distress? weighing that and transaction potential road And how of when IIIs you've Phase happening seeing you are got IVs? that the you market, mixed-use are sort terms of in assets the what Just you're what's against developments down

got We part of all, first Yes, do. plenty well, to last the of listen, of first Steve. your question development

years of product And so, in coming of terms are all, development first online. you Europe, away

great acquisition the take to about Let real There are end distressed the are how a just a us great terms not is be assets so acquire? it they in talking me were in of we in time. XXXX. all XXXX, lamenting side, ton to it, crisis I now learned that Jeff for XXXX, And because and And going of and lesson weren't. of at assets not financial distressed and often price. weren't there not to distressed the good was, it last And about or

given how look balance that. They're And NOI of as way. it are on forward you mean, of so it the a looking best which real going down you people a we're point of just stuff, great to lot, insurance. did that's lot prices kind insurance. it And is bit a us less is sheet we talk not We at There potentially about at that, kind are about stuff so to wasn't because a what earning in this using I looking told of and time, it. is firm be around. but than we're much going what for quality us reason at the is That's why really cap that estate rate we our of seem are to were The prices, prices. little insurance. those pre-COVID, certainly they better do capping we need why getting there's believe willing you but some prices cash

believe that markets new terms trove ones a And including existing just deals it and markets one don't opportunities trying development transactional accordingly, want be talk more to can effectively on the our say, two us done in treasure deals some accretive we do of about them to accretive we're we have happened we to value get to or a the forward. begin with I in opportunities certainly of in go, we but you will that day really find where going that and that have so with suffice associated let information way now will

it That's for Thanks. Great. me.

proceed comes Derek with from question. question next line Bank. your The the Deutsche with Please Johnston of

development get expectations and if of entitled construction, materials course, Can yield compression XXX So, basis to prices, key do the points XXX in some expect have changed update yield, an of the like evening. inputs Good we current possibly? you projects? rents? everyone. maybe or for Hi, How projects you. importantly land on even a Thank the labor,

of I Derek, those today, so on it's did as – tell are product. period out you more figure figure that in of residential a much. our guess I It's office from properties will And certainly most but certainly there. the is, office are to on office effectively and we that then lot build most got it it's your out not to to time. extent, to expect it if longer in get again, the man, still in And space couple hard you development, costs. you, carry out. at COVID. product of compression. see add some put likely yet. perspective, holding that a some on for assumptions. is in a It's We side There's it's rents, well which And more our it but look depends a be is coming TI the can construction There established terms you and period, It's to anybody's out our best don't out to the – of X-K available all-in we mixed-use think that conservative if development costs, certainly will, of what

associated I in you carry think extra – in to some don't cost earnings. value accretive completing are be do us accretive little some be more that and we still will but we need it that. TI, to it because So we'll expect may a way bit says that drop maybe rents significant the everything be There to see, shouldn't any developments there'll with

Thank pretty you. Okay. That's helpful.

I does list, post Just stand how of gone today I watch watch on the me. changing seems to a dark. guess office the mean, over it it to maybe like list from like previously companies have lot pandemic,

maybe from the watch pretty at so, couple this of of quarters washed course, growing fourth out is and – then we is, list quarter year question a of trough of base? albeit are if lower third this And the So away occupancy or point? a

way really into biggest the and it's at exceptions. that here. properties, who only to look you, exception got then But restrictions go entities. users you our please do the and you anybody on I some the respect add me tell from perspective else truth of restaurants, it's small that are has when more anybody small also frustrated is a could business to not and talk to question, is, Let other think this in I shop severe couple not you'll small never there of with And I a of first government terms phrase than extremely business am, with

how is And months months. that be I but the it so businesses I And I months it – coming suspect don't know talking and know for it's to about is XX stimulus we've when when can soon, whatever something. lifted. February, long those extent and don't last, or been they'll

So most different our on side, make pay turnover But frankly, effectively who successful rent. on are can that national than that's the more we money the are and being those people the become businesses business small companies the are that and hurt big small the chains.

all is never see maybe put So a silly going a and XXXX job, time I it's we of been catalyst think year then the that's more crazy looked history why now. right to it's forward. XXXX a today there don't with is this able doing I'm of say the And am forecast, I today. not we specificity. do me I I've about with of good I'm is, years with I way today. that future, comfortable out thing out, that guidance, where, very more for which kind view as that is just it what my to the say in to we're effectively talking say is that being positive That's a in my kind But but we're giving it why one which out

to looking us to start Directors side and – we'd realistically sell-side and the buy not thought it – at XXXX. but February to we positive our so as certainly which Realty's profile, try growth of our Board both perspective inside extremely there looks of in the get so get And out at least Federal from

Good you. start, Don. Thank

of is question with Yulico line proceed Please the question. Scotiabank. Nick with from next your Our

wanted to on confirm Hi. say actually seems your like McGinniss not This XXXX. you drop versus guidance Did Greg is – the around Nick. numbers. fairly comment with QX. on $X I It Dan, a just flat QX significant for

some So just there? wanted to get clarity

Yes. No, fair. that's think I

roughly me $X. heard You right,

kind momentum that in on is government I business our on wave that the tenants restrictions impact collections so came forth. our the our impacted December look, and expect think that, of we second And in of quarter. to first

this and impassioned Heck, XXXX, I me of you Nick, about Go big back whole XXXX. ahead. to February speech gave took just

of get will we. likely can But backwards, of a a yes, where think on a back guidance not bit that's we so but build you we're I and don't we that off lot Look, take I to think why providing have step of visibility and XXXX.

fair. little I'll next on you question. the more here XXXX Okay. let That's about be impassioned a

lifted. have which are end vaccine line peer else? it's bottom of by reason rent shouldn't be restrictions portfolio geography. there So any gets rent kind collection a Is the collection product and of near mentioned, as disseminated you in the year the group, that of we the as right the now But is everyone with trending of

conversation, of really better Go the talked there if the is retail comments Assuming residential mixed-use of company's it right. or stuff, the right XX% stuff of the the of out office, but I understand kind three you go back I'm back no, is control. with thing which to of lifestyle upon our company, and that so leaves is that and the making, dependent respect same the so XX% that things those the again, about, that. to right, to the Certainly, now,

believe and is about coming about he decide depending what but an government what to you not going on And from believe consumer. estate so restrictions on investor, is whether opening that he that vaccinations, real dependent believes in what he growth the me, and not, as or about investor believes

of kind it. leave So that's where I would

Yes.

basically, assets markets. performed year's of our are XX%, only more better down essential-based XX% at as and they Our – restricted well last peers, collection than in worse at XX% numbers, have basically levels, or about

or though as their and the feel mixed as we it's is were really at as we that impact. performance lifestyle out felt So where anyone good use there

you. Thank Great.

proceed next comes Our Michael with question. Bilerman your from Citigroup. the of with line question Please

the come about to me. want It's want much as I talk back guidance guidance. as to to Hi. don't you

Who is this?

Bilerman, Who This is this? Mike is Wood. Don

not on me? it's says, mean, Zoom. Who we're It's – I

Michael. Hi,

assumptions year. I together real could your put sound, trying my having Well, because he and for I'm you pieces make Don this what you things to confident can name. be said time guess, a hard

have a don't business, good in You shape. complicated is your much that of balance sheet

that? much the much to more else drop you it between the the investment? How is guess, from there there coming it, NOI? – Give then you And interest you these is month way How things in to quarter of get all confidence that's that locked cause confidence variance. quarter. XXXX, components are expense? fourth pieces a you're things much ended, were almost is it’s XXXX I of confidence the the happening of I a is the what in you're to FFO. How the much lot the How on are specific, million number the $XX the a $X? you're on of What half not and more into saying, of guys from that that first almost leasing a What Don, embarking it’s would there? is And that much How you in You've $X like Can quarter have little detail to give of we're development? where million $X.XX G&A? get of recurring and front. if just drop have us communicating I'd you have FFO $XX be like that you XXXX. you're a is NOI bit that

Michael. Michael,

Yes.

a formal assumptions guidance, our okay, have we're preliminary – for We provided what typically we goalpost, to providing okay. where Even not provided today, we on goalposts, any okay, we provide you, we XXXX, providing assumptions. provided that's not behind provide we're it. don't Michael, November call,

you're to come happen in hopefully the assumptions we COVID, detail have on will to providing the things are I at point, providing that environment the year we to visibility and and XXXX, some later think of when that in what assumptions this asking clarity when we're of I those will going better the for. allow think level kind comfortable have us and provide that of are light

to you just an this – what it’s the definitely lifestyle I something of to let XX% do, And in item let believe Mike, know do to you me rabbit business, collecting do to Dan, question the me a there. happen. know company. they what's how I'm this it that amount way, when that, We know decide, or we on of investor want don't about when But are specific point. we the you be we're item been go by item, to able – provide that it say out more what earnings give able are winding suggests you is actually very on exactness line go. of grow that, it's updates What The line specific are we down The a hole, to with understanding. line and plan accurate be as questions if under billions I company, put – add component than get want up effectively rent amount between broke me notion the to at line of to Mike. just the your – that that do of go business we've to and able we you you You just essential for by development you When component you you of every that components call. Mike. this know break That's the credibility going or single of do false the is don't way individual

that. to do So going we're not

reality one Don, I competitors feel if like... that, at same respect every of the but the your I at best their shot numbers. taking And time, is

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But is, I going going you a first the you there, get there, the how right. going in and get like giving to just talk of it's we're $X get put saying view XXXX rather contact by $X you're be out to – in teased people without XXXX to then... my you quarter how to you about

disagree. I

on it, I think we've of you Mike. been giving context tons

you you quality context, you it's it's to of about certainly given I not where and the to has investors how then out It's our a happening not sit stock. model, understand, do. and assumptions think including because of take but we've there can by happen, so you or extent, that going, another what's when But how that of think real it's we're think going been not recommend certainly stock everybody another some it's I enough, this terms the figure anyway. tons and crazy get model to make in and estate would crazy to in work, so do,

where Street All this at can a The way. that it’s is And you're focused asking We know quarter, $X.XX the is. in narrowly and quarter. saying $X. we you The Street's $X.XX I'm did for first

we've assumptions January – behind little behind the $X were the weaker. that, a December on collections. broad assumptions in December's the relative in and are down collections started Michael, quarter, fourth the collections bit $X.XX to

term year another We we're million have of projecting fourth that. of strong $X.X the in not quarter, term fees fees,

when financial the capacity is and sheet, for we that relative work to roadmap we quarter, to That cash capacity had head dilutive significant I We're is projected rent be before XXs. rough balance the from Like is in where a will assets with down $X. on the immediately. down cash. and proceeds first indicated, we're $X.XX plus sitting it the to number putting into occupancy to expected of Our Percentage in roughly quarter. go the and deploy we a we're flexibility those building sold and

very like, thank That's what much. I'd you

next Sanabria the Juan Please with questions. from proceed is line with your of Capital Our question BMO Markets.

listening Thanks I the Hi. exchange. time. for prior that enjoyed to

mixed-use more more Just at, the opportunities redevelopment where to lifestyle was if looking or of you're I of the curious assets or some could type more at target assets maybe on those acquire that the see on are type of and front, looking value. you're anchored it's assets acquisition stabilized, you assets if grocery essential the

reshape at maybe sense discussion? any you're target of So of looking remix as the of on the curious kind that just how what or part of you're to and looking portfolio

that's We fair see format both It's that remerchandised of you more some of a investment or and believe a lot. a redeveloped with to don't not us it depends. too, mismanaged a maybe I prospects this then growth kind if to like luck, because it kind should stabilized that that's center. vertical hope – mishandled, it's of upside there's way – about particular the is it's and bit And like that and Yes, but and want in question. federalized be because and we If a – really could there, say the we rent been effectively a it's we has think type shopping asset we little one particular about the of federalized, are prospects. I be growth

the rents the chance So sales with right good higher so with therefore. that doing is overall markets with what for that comfortable barriers can get entry get creating first so we we and got we're the aiming tenants the that right higher and thing right growth, pretty demographics, to do we've we can comfortable the from a job of

see, at I looking see, I both development kind who stabilize and other a a what possibilities will get rent where think mean, piece asset and hope you some mixed-use then helpful. and stabilized to is there done. ways we're that's the there what I growth down But some more create for opportunities value. knows first road gets So with hope you'll can't development of we done,

Thank you.

is Our next of America. proceed from Schmidt Craig your question. with line the of Bank Please with question

Great.

want and got promotions. others First, congratulate I the just that Jan to Jeff and

congratulations. So

Thanks.

there I'm seems discuss seasonality it a wanted – fourth it includes I first the occupancy the to wondered like trough. quarter where that. any closings number the on to government-mandated talk number. second wave just the might maybe lower of I weigh could may But occupancy usually second with would impact quarter. and which that if come about that from occupancy the extending thoughts assuming into also be had an on you

first – exactly right. right. is And of Craig, the that's it's all, first point

for business. because through our is of here. small goes business government kind continue And longer yes, the point, depleting to day again, closures businesses it small other the the to the are it by seasonally comment. back resources quarter harder for always toughest the they're mandated, day But first is as the those The

year a it thought we'll all on have for occupancy to be cannot means the many I to a I while – go It there'll with to So small cool frankly perspective. space, quarter are thought, give think model we'll high think our is, we anchors line don't now, out how first that and put tough. the is the out but number, an of that maybe The and in don't at what I you second hanging the it there a reasonable respect hit. which into be be. always want the assume will what is see, quarter, shop exact a XXs. you we number overall that pretty businesses to for I Certainly real

saying COVID? what you – the to to you your kind of then struggling are are to telling just I ones the side the retailers I properties? the about And new mean they're and get And What saying are tenants Great. are about by that of what definitely assets? your other get unique.

you? hand Wendy, can I that to

Yes.

in that, about so things. think two the there centers, existing have what they I terms our in love we of that the tenants –

have multiple pickup only of we not up on the help other we dining controlled our curbside what they we're restaurants, may in on highly focus seeing – outdoor projects that that with, environment a example, When locations, up. are our and back that have have. they operating for our versus getting can and is, and choices me because more Let we are and focusing amenitized centers

that a existing were until big tenant the standpoint, we in uptick the seeing, from wave again. restaurant we had So second frankly, shutdowns of

been potentially we has is So in, that new the I have ability happening So the projects right? tenants of hey, where opportunities before we're have mention – historically, to I never coming never to going, to reset businesses seeing can influence On could want are help now the and a get button, to our had we we what vacancy the that some I highly because, where have things critical. into we've one amenitized ability opportunities. at have what's look other retailers some their like

we – our Federal ability look that don't On well is flip want reset and to at upgrade to the to and lose I want the we're side, estate. having Realty this point, how as real

saying – strength that a a – a we're we we I these never lifestyle gosh, oh of, was new activity centers when centers. in from in standpoint, So we have that shows higher-end those we the which that in have have have now disproportionate my an opportunity projects on we want and a vacancy tenants host vacancy to in had of before, these relevant deal get

it's So been positive.

to to And maximize that's the retailer improvement, asset deal invest going tenants commission of important. strength. It's very saying be to Yes. out and all that and to with the be aware GFC operate mean is lender to of to I'd savvy secured having the been or by particular I due, that, all the that, in are know in true good tag be to tenant those the I That's to leasing is property, going dictates invest it way the to and it's of managed their our that that. a that, and merchandised business. loan merchandise onto pay been a that's when somebody decisions. think and there more continue Craig, important check never some never it of this needs The I think not And plays that somebody good as and tenants coming landlord, to going well. by somebody the more

for Great. that. you Thank

Our the JP proceed is your Mike questions. line next Mueller from Morgan. with question with Please of

Yes. Hi.

talked you occupied all, First high lease level you about 'XXs, the of the into occupancy about XX% when level? the or going clarification, quick XX% talking were

occupied The level. XX%

it. Got

talking Okay. going see down And full mix road where you years versus new pre-pandemic? the restaurant was dining about is of the do And a a I guess, we're where sitdown then couple primarily service? for deals the it

interesting. Yes. It's

alternatives offer in particular we all place So that the over doing, are property. restaurant any to the we're we like on

property that really using a One using as doing as restaurants to long in trying areas but space answer of touch, part doing, it. actually, got more our what put outdoor our the uses of of those of improvement we're things create complicated using which put the of asking bunch more business Stu We're of stuff furniture type new shop, and – of maybe you places, lot it's pergola. plans Mike, of more we we're to a in create properties. the kind We're has the for. in that plans has we're reconfigure you of and these touch in who part are to got landscaping And food with Biel a – – like is

sitdown It possible, I was outside. still pre-COVID doing that as so other but are and the is restaurants inside, them. outside like be restaurants. it and comfort extent areas is And the any process. else there that the accelerated bigger continue wherever specific And it not while to of is quick stuff also to again, we'll that the for to pretty was. continue. service happening we're us the outside that ability today, to the do in way with sitdown even a But have to piece much everything looking for see common COVID that That some eating through is was seating

on, terms definitely outside. what's a on but focus variety, in going of So big of more

it. Got

Okay. Thank you.

You bet, Mike.

from questions. the proceed of comes with question your with Capital next Lucas line Please Chris Securities. Our One

everybody. Hey. Good afternoon, Hey, Don.

might the operating to to the to continue sense you pure – a committed just simple do dividend to with looks able so dividend be like when going question, whole through has flow? Board Just cash process you a be they're been as have to cover this

second we'd be XXXX. the XXXX and then all by Hopefully of there Yes. of part

That's Thank Okay. you. all I had.

question next your is Please from Our of the line questions. Jefferies. Tsai proceed with Linda with

Hi.

to sustainable seeking For their from what growth? provide have what you in occupancy do space help them flexibility retailers of and retailers different terms parameters younger these to costs? Is path do in it they legacy

Well, where these to a be effectively two different low of now figure price in, a are percentage there to asking lower question, start to fixed XX their to do out in you're able when of deals they're what lot we're and be hard much be to will the what are doing because, how rent going they is have going able volume question to a Linda from than first the they that while and points the are be going years months open up. bases

your a time And uncertainty with is, love question and about business thinking is spend I to I work. models them, about how those are talking it. the of line bottom So lot going there

there with a we actually rent risk to able will Whether more that upon from to months the not so the basis, them in that. extent used XX the earn work we sharing is percentage And like first XX depend of to objective. than earn openings rent get of months being but to or our they restaurant our

sort versus of is but you expecting blended the In And to blended plus be. leasing in improvement, average That the then, makes clarity year, where not X% of XQ what spreads an leasing in are possible sense. minus next vein want X% of XXXX? spread XQ

in is point. big with here again be depend But deal a the mix level. on Yes. there what say side, be. restaurant etc. it That's right the versus a always every – digits Also at one where high-single or of deal that three I landlord deals, will I thing I upon question. did the after us we And the that's and hope to sales good a terminate two hope to about depending on you smaller to years do,

know So of to XX I it in but you with figure don't you, have years out, we're mean. this kind what going you

of will, the So risk. it's a sharing balance, if pretty good you

you. Thank

of next Paulina the Street. Green from with comes line Rojas-Schmidt with Please Our question questions. proceed your

talked would if wanted have for mostly the I power about a general idea your think geographic even at but expanding types. describe or to have have about community of you as I And Hello. you how property centers lifestyle other all centers? footprint, lifestyle all centers, your you appetite thought centers, think you

because like Street plan, time grocery-anchored spend you're do of our mixed-use obviously the retail of should component. terms shopping to a no? more to what you more for you to covering if side the will, or we community-based, everything of offline go and retail what of center agnostic, power think from center, But Well, the in kind to and we lifestyle pretty to I of more through are format Green centers is Yes. I'd new with business the

So people estate we're foremost. is we're first really what open real and to, and

thing at the looking we're open format of all to of center And so looking is because first it. the not the at we're

create us with thing through piece they or The raising environment the for vertical. and even have at able or is land shopping redevelopment ability looking value, that further first that going then to of through rents to either be that we're

suffer assets? That cities, the their you the makes any sense. you will Jose cities from more And Americans give of at rise will of that the potentially potential to all idea San trend? do think that margin, California, work like migration some facilitate Or in then, – home to these at you credit not expensive harming do from affordable all and from cities

thing movement, and just No. product you the all or and is I being the with with etc. in this, is product certainly employers are we which important in have – country. market want that change being market. demand HVAC very is we think I and is important do most those that business terms the office in if the much dramatically that what to brand-new we be where There office is, look the respect really the trends, air wherever I fully do will of which it’s best mixed-use always community believe going be in of to better with buildings, kind environment the at the in you product amenitized, our in is

right carefully we're not and what post-COVID. and has right that's with generic places product; viewed the be to think office in so the is I very

Okay.

okay? be but assets in you believe your the will trend, So

that's we yes, believe. plan – our business our That's that's what Yes. because

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is proceed next line questions. of with with Please Van from the Compass question Dijkum Floris Point. your The

on NOI a have past Don, it would a questions these the Is consider produce, taking like mean million promotion. have years, you NOI couple something putting development et that Yes. over people call how the about pipeline I but it part bit I'll years, doing? cetera that you of Jeff, congrats I of for of big on And the Thanks in questions. three bridge comfortable? your that brief, $XX I'll something know about It's pretty the frustration be that get sense great. to about should do guidance, by and out way, you hence or done next have an the I you, more little

frustration frustration. take that running best right. can take do, bullying. is you're I should and we well bullying And The with the just at you the company, line-by-line, respond but we're we it best to is way of the Because the the under to this consideration way Certainly, suggestions, the certainly, don't Floris. we'll be communicating that we take can all. won't what

do those markets, walk next that some asset, of a people months? but do markets you to Miami, in you referring see as markets to already yourself one XX you sold an see asset that you particularly in bit the or newer warmer And then seeing there about months from mean an follow-up, maybe heady growth a to away over I aren't of know and reupping XX go climates? you I some little the I'm just is –

look, good deal be No, Very for one. with possibly, friendly, forward. fact that us change doesn't we business that a that Yes. environment going job could But migration, the Floris. made growth, bad

CocoWalk our going best the going be two I is of you you to when company. to see assets which Those I love you're think know completed. Shops love that Tower in are completed.

to you we're more. yes, you bet So, open

it Great. me, Thanks. That's for guys.

reached we the question-and-answer our Thank session. this time, you. At of have end

remarks. the Brady call over Leah I'll Now, closing turn for to

Thanks for today. We us you the with weeks. Thanks. speaking forward over to look joining coming

Thank today's you. This does conclude conference.

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