Federal Realty Investment Trust (FRT) 8 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Federal Realty Investment Trust Fourth Quarter 2022 Earnings Call. At this time all participants are in listen-only mode [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Leah Brady. Thank you. Ms. begin. may you Brady,

you XXXX us Earnings Thank Realty's for Fourth Quarter Conference for afternoon. today joining Federal Good Call.

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

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

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

Although we such from assumptions, differ Federal based give these that can actual Realty be Federal believes statements reasonable materially and that may the expectations no assurance information its reflected on can and performance forward-looking expectations in in Realty's our attained. operations future statements, are forward-looking

release afternoon, this results may our a The factors of we reporting XX-K our of financial risk annual supplemental more disclosure earnings that and conditions on and documents our provide financial Form discussion other package issued operations. and in-depth affect report that

Don? of Instructions] fourth tonight Wood call [Operator XX to minutes. to will with our call that, limited I begin discussion to conference will turn results. Don be quarter the Our and over our

consensus the Well, for very allow full thanks, XXXX and class-leading year, forecast. $X.XX and demographics of us estate that with good of reported precursor expectations We FFO great share a strong $X.XX on guidance will everybody. ahead strong internal ended Leah, and afternoon, a per and to quarter external real and note in to therefore, the both the

while did XXXX, that terms and leasing, earnings. at in recovering space in basis expiring. to where of more X.XX% the bumps We occupancy ahead and the on comparable retail contractual inherent basis a leases than were increasing thought million of deals from pandemic were XXX We feet cash our a simultaneously XX% X% year for record rent executed on be and of that done line a over rent leases a overall. over square we'd than more rent more We're straight-line annually bottom the depth of X in we the

And we leases a point, I see helping XXXX, that what in I this we'll into inflationary again. rollover at while and by XXX strong percentage are higher continued doubt would pressures based the looking do XXXX lease way, on forward negotiations. demand expect as

talking last the Most in have We at still increase minimizing XX.X% with year year-end working. a percentage further intensified room getting tenants leased between portfolio Well, at importantly, so, compared XXXX. more XX.X% year aimed rent difference i.e., or the occupied, before quickly. about to over leased we've been at that paying it's up focus and and percent that

While percentage two during faster, is between and lease lease XXX a XXXX, history, points our even in feat up supply some in suggesting the our continues of XX years. basis our growing struggles XXXX, signing percentage rent occupied particularly in basis to chain the points grow, impressive of the up past quickest times paying

higher than XX.X% So year record. on of pre-pandemic $X.XX, in top the share our these all resulted and FFO things per before XXXX of of right

annual no than can radius, portfolio other retail sit and to families to I matter, within retail of more have in for a sized That's within with I incomes half income X-mile $X,XXX people significantly real grow. especially spend know it money many you've that. heard times federal billion to of or of economic $XXX cash it have pressure, household a us before, average centers. past better. those me bears college repeating. XX,XXX times that convinced but of say households that family estate have Demographics of flow have X-year cycles to say miles $XX.X degree generated simply X know

of myriad in wide who a in threshold fourth variety the their of lease rent exceed quarter. itself ways, manifesting in saw the the it's tenants including percentage sales a So

absolute fixed additional is the notable rent of While for and quarter, is above and we've rent and rent fourth last restaurants $X.XX and year's number, strive with soft among goods not share our particularly a percentage tenants since in strong leases, we huge contribution all a year. per an contributed continuation fixed the the in broad-based trend that the quarter seeing over our compared been

payments and solid. cause change No one tenant period. TJX. is that makes indication, and we more a And of slowdown Leasing Now retailer any certainly of given underwriting, higher expect if happened estate that will everything demographics, would kind activity But that a the to diversification consumer loans slowdown remains along car federals interest a and business mortgage okay. falls history very is in hasn't reticence spending very rental rates It more in well with economic rent. as affect our stream, far. is that's may -- to real X.X% superior tenant from This to see strong of pretty than outperform deal obvious. which up so

be combined on is when base Bath Bed Baby Rite Rental through Morning and no locations with. navigate Average forecasted less & Tuesday in-place at our City, about of bankruptcy To Aid, replaceable exposure, full. we even than XXXX have Bed rental a our Beyond than which Regal process finer X% think X as $XX point Party and more put will you Bath, the of all we Buybuy of that, a expected comprise rent Cinemas, tenants, stream. today's them troubled

sale properties, quarter of about like combined which the are flat third Those last were better And of building we in Maryland, a We second land continue one fourth and sold Rockville better on of proceeds and quarter, earlier a three Pembroke rate: portfolio proceeds small residential add residential into in community Maryland; cap Towson going-in the Gardens, a and Federal's for of all the third, earliest earliest assets generating million the $XXX one, of to opportunistically in the slower-growing smaller in excess prune the at few days from days; shops developments X% and legacy process. developed and non-core and assets. yields Federal reinvested significantly the our retail Maryland. growth Kingstown

future The ability accretively have number at sheet non-core in of company differentiating is manage that $XXX much of yet process just large least balance identify course, at economic million-plus the of a this the not assets we And only cycles. year-end to through to to results. the of to reflected construction source one tools and look sell on income, the you need

Okay.

in it The rates run-up thought prepared I'd Dan some as in expected will extent pressure so remarks go everybody's So in to afternoon, XXXX. that's earnings to a with the before leave over surely for Dan. interest through impact included, turning in few will about like you this my ahead, one it the to minutes. years beginning final

has year keep Federal proven thrive. around dividend since But business and XXXX. XXXX raised mind free every money its been has to that. plan virtually This doesn't need since It's that in to be

believe incremental year contributions growth. from record more year all-time XXXX know interest along will Pike Darian In we in that earnings of 'XX demand to be is cover in significant that with are from Row, contracts operating Santana and Dan? what already full our Rose, and like incremental terms than place, Assembly an will with strongest lead CocoWalk, Federal Row, mixed-use properties a rent acquisitions, & of XXXX, sector-leading at particularly where

hello, and Don, everyone. you, Thank

of versus per FFO year $X.XX reported X.X% the and quarter XX.X%, the $XXX were Our respectively, for for fourth share up and XXXX.

which up XXX Other higher. assets, For and higher of was occupancy quarter drivers: the and points for XX.X%, interest to driving consumer expense. and the we're our range. marketing revenues of continued outperformance: XXXX than of This offset gain higher points in by acceleration at Primary basis in both at drivers year. our traffic year; percentage operating XX basis the more doubled the versus periods, previous rent, top guidance previously increased property the a expenses for mixed-use higher strength

our for GAAP-based the the cash respectively, and year strong period X.X% despite basis, be for growth, believe in quarter in we terms. X.X% for at X.X% the impact a quarter of we and On came the at metrics net Comparable rents year. sector-leading in same-store negative and same-store X.X%, a and to full came the fourth metric what prior

impacts full fees, cash for and same-store the negative respectively. and term the growth and X.X% year, XX.X% fourth rents quarter Excluding was prior period of

'XX. slides plus for our of analysts million and this those an For fourth quarter of there contributions are had these $X that fees in on related a yields $X.X the to against $X.X of all XQ our updated appendix investor investors 'XX the level million term to negotiated million Please were quarter which in keep versus provide note period figures. fourth website, track, fourth we quarter rent $X presentation COVID-impacted Prior million.

leased and and basis of growth let me but note. Don strength represented few occupied of and already statistics growth XX metrics the points XX.X% basis XXX respectively, out continued over leasing, and in of points basis third The sequential more in XXXX and highlighted XX point over a quarter. XX.X% points, XX

basis relative now and our points spread levels still our we more to short a the to spread upside level open term. More tenants XXXX The target get but as come in leasing, at SNO shop over which since rent ability of in continue long an typical points to SNO XXX stands [ph] strength and We targeted of seen XXXX basis see course paying. XXXX, pickup our in XX%, not levels. XX small historical XXX our of to peak demonstrates at of

our leasing with activity XXXX's under in so the volumes. executed start line strong to and has first strong and to pipeline leasing quarter been XXXX, is those date I far executed in LOI deals mentioned of

optimistic can terms of large strong XXXX, continued of growth our of big rent Additionally, both was the and growth A in XXXX rollover in redevelopment drive pipeline. driver and forms. we expansion contractual stabilization a so sector-leading to remain lease portion favorable our including lease continue we

in well. to case that XXXX be expect the We as

we XXXX Assembly Having service Rose incremental into in CocoWalk, POI saw $XX & a Row, of projects placed Pike $XXX XXXX. and XXXX of and at million million

POI pipeline POI $XX the of spend. million X few remaining starting which another alone. The $XXX next in for but projects this to continue million year and now at development stands $XXX balance from million deliver incremental expect roughly We roughly just less those incremental XXXX, than will of is our years

an undrawn a balance of excess $XX sheet, $X.X our update cash We $X.XX liquidity facility total billion available for of the quick and on year in ended liquidity the credit with billion. position. a million to Now

is to times the for times full range. for fourth higher. in quarter -- low is mid Again, X our is was the Fixed annualized debt the online the mid to leverage is X Fourth continue to metrics strong. comes as Our metric net of POI occupancy roughly times. and be XXXX drives quarter That over development X.X forecasted improve in and coverage level times to EBITDA targeted X course the year. charge

Now on to guidance.

introducing For embedded range. are challenging XXXX. XXXX, at capital $X.XX we of of the environment markets This and and grow midpoint per FFO at headwinds, represents the X.X% growth high X% share. the in to the $X.XX guidance will Federal $X.XX promised, as end Despite

This XX/XX, is This XX.X% XXXX, from progression driven a increase throughout will X% levels that by XX% to by above of be the although and assumes year. year-end growth X%. linear will forecast comparable occupancy not at up

million Additional $XX $XX total contributions from our redevelopment and million. expansion will pipeline to

projects. modeling, For where timing POI our direct on XX by Page to let our XX forecast those provide of we me X-K stabilized and you and

be basis XXXX $X fees, to $X Accretion term will XXXX net to $X XX forecast level in with million full Those of range underwriting expected original XXXX, XXXX with points. historical outperform net by year our to This $XXX-plus for our and we million in had contribute. a XXXX period million at $X expected million acquisitions of a And our by 'XX. that's are in a $X.X to will being million lower averages. least prior collections in fall million lower from online more offset line million acquisitions also $X to

weakest term Despite over from It our for rents headwinds, We'll points forecast without thereafter. FFO X% sequential headwinds XXX with X% prior comparable is and have Quarterly fees. one would the X% basis XXXX. being growth period the of quarter cadence. be to growth to X%

our on continued is at in expansions existing the refinancing and capitalization of in XXXX $XX million Other million range of common notes, G&A Santana assumptions $XXX properties; $XXX million which to mature include $XXX $XX in and at of million the year, redevelopment unsecured spend million $XX interest issued June $XXX equity $XXX throughout $XX year; million which our to the million for to million mid-X% the million capitalized at to interest for West. estimated range; of includes the

floors multi-tenant a approach in out change single strategy and we our a tenant Given build to add tenant leasing building tenant from as leasing amenities.

of points We've Dispositions POI XX be Bed roughly there 'XX, & 'XX. in less our of have XXXX to not outcome the will Please XX XXXX on has not adding our impact a assumed roughly the to XX and contributed reserve, with January are since With than XX Bath we uncertain completed year. of $X a excluding in credit basis respect points. had reserve and note, basis been natural forward, exposure the POI tenant. million respect in depending of year. points of this we basis during location in That another on mid-last Beyond to Wynnewood expiration moving 'XX Bed forecast Bath, at

been or XXXX, reflect guidance not As is announced. what dispositions this any our acquisitions custom, has does in already except

also a not X-K summary revenue guidance as for adjust from recognition. Please given provides XX go Page cash on this the guidance. those basis expanded accrual tenants This disclosure will basis in note detailed our We approach both. any assume our a moving opportunistic to we of does to

they to Row, before assets minute a Bethesda of shutdowns in XXXX. big Rose of COVID, sit demonstrated let Row, And me in we Santana their respective mixed-use markets, four The highlight leased. signature the disproportionate finished go XX% that & Pike Row, the they to retail our hit Q&A, outperformance take and strength a during Assembly but at government XXXX took because now

and comparable of back POI year were XX% above up XXXX prior and above Comparable was XX% levels. retail Reported versus leasing were retail Consumer demand. at levels. XX% pre-COVID XX% up in are than assets POI COVID sales pre over in above for and to given these strength levels. four the X% higher prior forecasting pre-COVID continued versus Plus, year traffic the are X% XXXX growth up to we retail these X% if assets X%

unique providing drive our growth and differentiation additional Federal Further, mixed-use have above components in our unique materially peers. its capabilities and for POI of open-air center, should an retail design, entire applicable advantage driven to a a point and reason capabilities competitive of a in to of retail, typical moving construction, open-air of are that leasing, The expect and across why operations assets continue are that are shopping forward our mixed-use and operational between retail we big continued sector-leading growth evolution years unrivaled portfolio that the come. retail

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

Please with question proceed Sanabria And Instructions] question. [Operator first Juan our is from with you BMO Capital Markets.

afternoon, and time. Good for thanks the

XXXX to total portfolio later one the you your and your to where on back when NOI comments expect in curious remarks Just of to prepared sits levels get that. relative do to

the kind You on the sample curious comment made just of set? broader the but for big four,

well We're levels. we're, Yes, back. fact, above XXXX in

but same above. whole reasons about XXXX. to just that on respect certainly, So the us I expense was interest what operationally, and Dan about to one But back there. the that FFO talking mixed-use X effectively the down know specifically higher with for obvious was above the back brings portfolio assets overall is It's significantly

Please next with from with Craig question. our America. your is Bank Schmidt of proceed question And

just 'XX? just could I drag expense the will if the you. wondered us of give Thank on 'XX what interest increased be versus you

share, above Roughly plus, we up. where $X.XX any end per minus

Small Okay. just And relatively still do on see real growth then opportunity that sequentially, for major was your shop flat as POI? you a quick.

some sitting about more positive grow want quite to And Wendy, very, we we're at got so if now, you room haven't this We've there think is not, not I that there. for and done. don't or I but or place our And very I'm Yes. time, occupancy. some shop to which add been know to to XX% small back we're

side the some we thriving of retailers, COVID away right would of of urgency Through there's heading our restaurants. including really COVID, overall, sense and to we're maybe on shops. technologies have shops the especially now. gone a on Obviously, guys, leasing small so have a real the weaker come the sales into but I know, the post lot forth are as headwinds, that, And add small that and the driving are some for

is your Please our And with with proceed Scotiabank. question from question. next McGinniss Greg

touch you hoping this be was of just I Dan, can end what evening. on or year? to guidance the driving would you good top bottom either Hey,

Bath think a Bed to happens I the Look, what big bankruptcy. is variable

I more to Chapter top think we'll a the range. at few boxes expect have we XX that probably the get it's will to range, a bottom of towards where whereas, if that expect normalized liquidation, back the push us a of the

down. bigger up of the think probably either I or us takes one that's that drivers

Okay. And just… if could I

Difficulty] [Technical

next Samir is with Our question from Evercore ISI. Khanal

what Thanks of don't be there's bifurcate for color suburban rates a in can the sort centers I of That to cap know would or your provide the great. market open-air can touch transaction between question. from kind centers. lifestyle today. way and you Thanks. any seeing Maybe you're pricing you if upon versus

the point, centers a Jeff. But trends in always Hey, a and XX-year the going this what's there the regardless out not stuff want ton of but Not color Yes. I for haven't point expect active when Samir, best of over right it's there's back seen not We're looking mean, day, lot or now. grocery-anchored lot I a a transactions. because of the you just the lot there's on, cap we see XXX data year. many to if to for spread market a don't maybe trades, XXX treasury. rate was market in basis of

at kind So this point. anybody's guess of

from your question. question And with UBS. our next with proceed Goldsmith Michael is Please

in growth the some My you that a kind other I of a interest, to this last property for on then X% little a bit X% of see potential terms pieces question moving is X% guidance curious, generate Good your implications on capital maybe Can reconcile less to pieces. walk go my 'XX? period; from growth in evening. to that of to this the question. the ex lot year. you're Thanks help of comparable X% and year? are for taking And prior growth through fees, occupancy What tailwind the headwind expecting relative year does guidance.

of combination I of the blocks of us Look, comparable kind that a building that think is kind Okay. are things get there.

I expect the sector-leading, kind be to some bumps, I of think of and kind X.XX% continue north think would of of contractual office. of include kind which we

is growth relative does ours rollover straight will rollover rent really I What much. number, which rollover GAAP think add, rent bumps. good last a don't year where what's those occupancy things bumps is I of captures were the which the is as a contribute think, chunk the so interesting contractual is to growth, because line rollover, to

And so progress that driver we've should be because made. the a big of

And you've got residential.

that percentage reserve, I and see about to us prior then and credit basis mentioned basis headwind term rent midpoint of XXX fee of And think headwind then we points that of continue to points probably to of parking. XXX that period we'll the metric. XXX kind gets rent also

And Please our next with Citi. your proceed Mailman is question. question with from Craig

on I on basically. question. to interest this, two just the wanted circle questions Dan, back up capitalization just

demand strategy kind space? if been timing are suites demise you or the all, a to gearing Just those finally just guys -- there? West? build to capitalizing the have or even perspective, capitalization are And of you you from trying are just if And kind out then have was burned just what to Santana guys shift to ceased guys guidance you when you no of leasing, on in And at the seeing, had spaces? if there secondly, smaller would multi-tenant, what stop

it No, clear. good the a pretty Listen, -- it's question. became

reason see Santana capitalize. that you do tech now. capitalize But building reason user. giving is little shifted that in last XX,XXX full to talked user on but what's about it, the for more As we that that, shifted foot the Valley. demand hard the floors out get tours with know a we is are continue we to Obviously, that We for to XXX,XXX strategy Silicon individual instead, in the going that square and business the worked strategy, we're There we for to to you at that accounting a to of bit year, know, West. building

the So a is building of getting demonstrative progress looks. don't there. I that anything say have great But certainly about to lot

XXX,XXX that we're XXX,XXX for fruitful. And the looking so It will very good XXX,XXX, feels hopeful rather strategy be than foot that this of way. full square tenants

a you've of got at call on or what year the In is carry building on of $XXX it that that. terms a million means accounting into X% so

continuing winds on but And math to point sheet. so at the can will be up And this the P&L, point, do effectively it on going up balance at wind the that. that some through you

our is from St. next Haendel And question

with question. Juste with proceed your Mizuho. Please

Good there. out evening

growth, So you provide while your the long-term core portfolio. rent was and growth what included think thought by that longer-term of the I portfolio the which in a back to like intrigued Federal X%, on remember bumps was could I of do spreads of comments the the you internally buildup basis over bump of a X% superior redevs. some Don, it terms I core generated profile

or I here… curious do sense improved the guess of factoring with you I growth now looks deal what tailwinds maybe look online bumps could rent some well could an So give now as coming like you're the core the as referencing of updated was you like various long-term us profile if think

look, typical feel able occupancy X.X%, grow good do. with I the neutral and business, to general very X%, the of a and to That's growth like what something portfolio of an that, have about occupancy fair, been mean the Haendel. X.XX%, shopping shopping that. allows the common long-term I of We've business, X.X% basis. center the -- on business they center

a to thing the our And with talked the past, bit about this the really inflation is really good we've -- of about was the business. it's respect little about making comment bumps, in I a in rent

and success get or extent is team the with and allows longer-term having for more. effectively economics increasing Wendy is of And to us because level to normalized ability knows certainly the of we So everybody it deals much push inflation to real, it. the inflation, a improving isn't. inflation But that

uphill. not trying push to noodle a You're

very good about. X.X%, long-term feel I that of growth So rate X%,

Floris with Point. question. your Dijkum And proceed with from Van next is Please our Compass question

your little more a partner. Thanks. for that you things know, out if guidance long a that appreciate that a intrigued saying think and equal. know you space of people retail But more your some gain I particularly you of How are as where growth maybe be the Guys, is I about little tenants, Don. than talked bit, in And created about you've is rents a anchor portfolio all is time, throwing the small your might because underestimating me lease little And much potential, of your adventuresome your the in not your that lease space to you bit can one in double I been terms talk of do percentage. you shop bit much occupied? growth 'XX? How expect

if you talked talked And if and leases 'XX, about X.XX% you contribute are SNO to fixed 'XX your as you -- a of then partial your and obviously, the a for walk get elements about spreads. those an little bumps, going And year, through maybe can you element that your the we then in -- where growth 'XX that you signed got Dan, -- of in were got bit well. you you have you

If NOI growth, if math, well mean, looks north you're correctly. like it to be adding the going you do it of up I'm I

so it forth. things gets the credit appreciate a all I add -- the yes, question, we but apply then Yes. Floris. you headwinds you up, and those beyond reserve, X%, you've got Look, some if

continue able profile be the occupancy, X% rent drive conservative to to the push expecting hopeful growth hope net we're are that is we bumps, a there, X% And we're XXXX. our rollover reflects core strong portfolio there to to estimate. comparable continuing that to in in X% and X% XXXX, growth strong so headwinds that. look, But so continued out will And a contractual

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

valuation mentioned of recovers. good as it's about Yes, with widely afternoon. the understood, obviously cost elevated, capital Everyone, here as and tapping debt year equity what earlier the so you markets

I to think spend. guys, But issuance the seems match at million development $XXX really, it midpoint. there's

equity the a capital you and Thanks. activity as of do values markets how greater financing guess I given So as tool view recover? state

start, to involved this. a Yes, and principles couple there's Derek, me add let will Dan here. of Look,

our conservative that I on whole as do So We are. opportunistically it can out we one time. then value any to through based dial we want of the own surprise uses amounts never bunch want never to believe I'd up equity where go what and I obviously lies one or a is there in so a turn like back year. at

important it's do. driver have That's don't know, this value, left The lower what to that the those end at shareholder than don't extent million create pipeline point. we we was, far the the even the use dollars a to very day, able to development proceeds always extent because thing can we hundred you to, have what and we it the money. is uses, the spend the most only couple of or that is be to use for that debtholder we of comfortable that's at And are incremental will

flexibility. So lots of

at what's kind And create I take that. balance respect to and the want ability And equity to of the advantage that's with what sheet of debt to look the similar I here going always in is marketplace to value. on to maintain opportunistically

Anthony Barclays. And your with is next with question. from our Powell question proceed Please

the any the It's we're conversations accept balancing afternoon. versus so and question in good spreads prices? you a quarter. to to seeing on spreads. lease Hi, tenant lease you are just bumps? the going acceleration Good space, space back maybe saying the higher higher the tenants see need push like or How higher And in fourth we are that

small rollover, these have a see Yes. should rollovers related in anchor see giant to say, higher is there there. deals. see you'll XXXX in -- There's some to In you'll number and expect what shop no look of based leasing an a some that versus is fourth Look, The quarter. deals the of you higher trend amalgamation the want we a are that spreads you see actually in any on see related. I I more deceleration don't trend in There's are particular mix. quarter, pipeline.

spaces what bumps are that's opportunistic And based very notion And pushing there. we're to due, high the that that's demand on associated what's that's for space, simply coming is with case, every happening opportunistic of in what's pipeline. the where in an contractual able leases. understand and But for being those

So, spread. the lease at holistically, bumps. in just to contractual contribution that I it to look want don't total, including want look the in I total, greater. at rollover economic is

to think we of in push being because quarters. demand strong levers, be particularly I the last is to on and able couple those continues success in And of found both strong,

is your question from next with question. our And proceed Goldfarb Alexander Sandler. Please with Piper

Good evening. you. thank Hi,

question on West to Street. the Santana seems be Just -- seems the because that be versus a it delta to

it guided is $X.XX you capitalization. originally when think I ceased what you was

Now obviously, on that in great work demand. there's hear to going

capitalized outlook great, interest But little delta as question that doing to leasing, or the a are conservative just it between guys stopped moving all so think comes do seems the I'm and just be capitalized the have is, you work project? my project, were markets because to left I a just other guess I'm where that the is in is, wondering it understand understand. given that trying that but to you stuff ceasing you on 'XX are think but too you capitalization? guys the Street maybe that should I fluid you do when

direct the think So, don't that. is conservative Alex, I are question is that on on my your point to answer too no, we

how And opposite. is drives building, with decision It saying the tenant frankly, once go the we even the towards think go after inherent whatever we to of we the strategy were we first that is users. after premise talked going the exactly we first about building to your you're business the lost didn't the how the big that the and going and drives accounting -- what with is when it's I accounting couple -- what -- accounting base know what decision. the business were

I in respect not the in no, So, out positive fallacy the we're does in notion show thing a West. does think Santana is capitalized so, don't as an company. of it negative or looking to from What everything What here's it. 'XX, this impact have interest 'XX, of laying and else the at impact with agree,

through. Santana than like not Santana move that why than will it's as West for coming -- have line more for for That's any benefit the rent 'XX. forward, We pay simply on is we're impact rent West And a we is expense. see, 'XX. that's through. getting bottom why in the of interest that coming operating debt ideally, growth that don't pays more you But

So looking I you're think just it fundamentally, backwards. a at little

with And Please Street. Rojas question proceed from Paulina your Green our question. next with is

neighborhood the of I Hi. I down. in office Good that at materially look point, exact was all? Santana traffic what we think midterm? is Last changed Has patterns this down maybe evening. the will at in versus like And at spoke, those remember XX% Row view don't but of figures, traffic the still time pre-pandemic. how your

Jeff. And Paulina, Yes. I it's I think your question. understand

over is the traffic people eat a Row there day, generates the reason that traffic small of Santana you to the shop, at I'll about I of talking tell come part a of office primary Row. the Santana number and the year. two buildings you're about Monday property. people enjoy that. work think Friday, And ton One, things every to are coming through Row. the Santana at at that's

The weekday Silicon return office traffic is up is building in as well to Valley. as ramping

coming coming But So, XXXX. back today small do a Dan that in above strongly. see prepared remarks, Santana is and component. Row said relatively was overall, like back what it And in his we traffic that's at

shape in So, we're good question. the there, and I pretty appreciate

question And Please is Mike proceed your next question. JPMorgan. with Mueller our from with

& Assembly, Hi. various think at right, I project? I how you phases future the in reactivate whenever frame to and at the time Santana, those what's -- Rose Pike the the looking guess guess, is time phases

the team, aren't down And are That's business. we believe love where now there's be here. that, We do there capacity comfortable here. construction. to with certainly important a together let times an component question, But development able cycles like our that Mike. during start that you to we the stays and to which great work that turn misinform don't our of assumption and underlying And spigot down

ready any able is activate its we shovel to competition. of to the to be That's quicker what to quicker Making -- to try than do. be activate the able idea

the So, with future it's of very Assembly, all our at the pricing, mind front phases contractor, not places only time. on entitlements tight ability with like to with for stay

but a way competitive ball at whatever be So, don't in to terms know Mike, key going it. the the it in is or 'XX, we'll faster most. crystal 'XX with back have the and I I And on of market, respect than at 'XX that's or standpoint look we

our question. next And Please proceed question with is Bin from Truist. Ki with your Kim

Thanks.

multi-tenant. standpoint, guess a lease-up believe point prolongs business if time a Something on But actually the frame. I'm I we’re you at from would go that curious West. And I maybe Santana

curious probably therefore, So consider, go incrementally? for was if cost that. can even though provide but up, cost yield all-in I longer, color you're I'm variables just there's the the sure around not shouldn't if you some capitalizing come down expectation other to

No, floors. I'm are the will sure it's fair it is not very reason building the take because a individual longer. Yes. And we question. out

worth ahead work, of that is effectively work of done time. So here, a year's being

on timing, feeling so, pretty good. I And think

on would incrementally of In terms terms expect have reducing I other benefits West. of cost of are cost, but the Santana that lots our in of base the extra we potentially carry higher, be and things yes, those building also to and

XX% in the buildings, Santana our the our construction, Pike And base Rose, that's they're you portfolio, at West, and knock & overemphasizing to other And total, the one alone, if yet, up like one are out even just office makes back under out X.X% XX% back built they you're points here just being which leased. X.X asset not this just that you -- I that's the sure guess And finished of ongoing leased. of not you last of really company. make building kind when sit take point make entire

a real when Rose. the from product way it's Row, and is a important, different the it's is So, all perspective, estate product through, -- right person's product the the Assembly & Pike and this Row, really Santana attached

question Schmidt And of proceed Bank with Craig Please with next question. your is our America. from

of Jan new Officer. I congratulate one, wanted role Investment his Chief just And Great. Sweetnam to on

Craig. you, Thank

Craig. Thanks,

Or you be West will you East? to moving base? Coast staying Are

Still West Coast-based but spending some more time on the East Coast, Craig.

maybe some want in role? are Okay. what And new then to you opportunities of pursue the most just your

be good look a at. feels for think, Craig, our out Craig. Well, Well, Expanding us be that's big there's to there's in to focus product like look, increase for Phoenix, a -- there, to I base us. new and some in a some question, product is going going

larger pretty I that to feel for some But going product good good can buy there's be us accretively. that we

it ready in we'll where set to go, feet nothing's and stone, takes us. So, see

your Greg And Please with our proceed question Scotiabank. next is McGinniss from with question.

the pipeline. follow-up couple on One a just disposition of So questions. is

last noted call. you think on million the $XXX I

pursuing Just transactions. the you're still of curious remainder if those

or get And Yes. we was the got on see done, we about I and still the say pricing a in balance, it million. additional stayed disciplined we then needed parameters, that the Wood, $XXX of Essentially, But parameters move We're one not We'll the possibility. to decided and which would timing meet if didn't determined we Rolling them over. there's million $XX we process acquisitions. forward.

back those in environment. there's year markets capital bring receptive when You a later the more

resi Okay. Great. reasons for that? sale? And Rolling which Or Wood some the of other because then quarter-over-quarter, on was there occupancy, the fell that are

hard little on a rate. timing pushing bit. We're just That's No.

to And so, table. leave as don't the turnouts money we want come, on

on we formula. bunch rate So always the just And a rate. and -- always it's occupancy is part charter that between push balance of

You'll back in see come that 'XX.

with is proceed question BMO from Please next our with your Sanabria Juan question. Capital Markets. And

Hi.

chunky and how curious maybe debt the coming in kind your thinking getting terms you balance of expirations expect on Just 'XX action you've a sheet of ahead of about given if of got we should that? due pieces any are guys couple of

I to always think look opportunistic like we're Yes. to we are. be going Look,

to going throughout access created to maturities maturity the us we on the expect we to as billion to we're as a of from have, think be the significant maturity. capacity address undrawn perspective. us the $X.XX June will we 'XX XXXX give well January a amount opportunistic, completely markets flexibility flexibility I to that -- give But timing bond

question Michael Please Goldsmith And UBS. from is our proceed your with with question. next

lot The one points basis compressed lease occupied basis a taking another spread for by XXX Thanks down for to points. me. XX

monetize monetizing doing, how all one the -- benefit on in hand, there's on it think pipeline. the you positive maybe seems you're argument? to side, that either less but you're It do So, of kind but thoughts not just on maybe being able the on bit of a it? your other you're you've side wanted little Like sooner, about been leasing that to like very the get

portfolio. I The thing percentage higher. continues want we about premise. very to get feel is The that continue lease Well, primary that. the agree we make there Michael, to the We lease to on sure good up better, get

pretty that's team, out Now and that's a that job darn leasing well. working of

just open. people, But and is is job record get to the get And of have amazing them just tenants construction years. job the the tenant as spaces has those coordinators, of of to the that those Tenant that the of coordinators leasing part job as open, frankly, the and construction been stellar. is leasing

operations, normalized rent. it's turn to through a contract get possibly of you But And as leasing back leased you're the about to bunch that as to not a to so, whole what's COVID, be you I hope into a can when done if and up. have it to bunch able come middle you that, of open important sub want look great of versus occupied tight in as

amount and that increasing doing lease increasing where fact, in love by are, I because we more So, that than both we're occupancy.

not buildings what point that the have from that add where Yes. XXX not on signed contracts where delivering leases pool non-comparable thing done, service, stuff, are And of that And basis equivalent we placed equivalent not an leasing basis SNO that in into it's expected XXX just have to of that's we're points that's POI spread. are come amount another are yet and to we same open is of done.

because none non-comparable and of they of an don't an that have that's scale differentiator added have the our advantage that So pool. peers

over no further questions this time, Brady floor the back like Ms. comments. Leah at are there would closing As to turn to I for

to you look of we Citi you, at everyone, forward the seeing many and Thank Conference.

This concludes teleconference. today's

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