Kimco Realty (KIM) 28 Jul 222022 Q2 Earnings call transcript

Greetings, and welcome to the Kimco Realty Corporation's Second Quarter 2022 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] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. President Relations Vice Strategy. Senior Bujnicki, of and Investor David Thank you, Mr. Bujnicki.

your begin time. presentation may this at You

answer morning, also Good the as as you President CFO; Kimco executive Conor thank Dave and our Kimco's other and management available call. quarterly Flynn, call. that questions Chief Glenn team team members The Chief earnings Jamieson, Investment during of participating Cohen, Ross Kimco's the well on CEO; call to Officer; includes for today are Cooper, joining our Kimco's Officer; Operating

a statements refer of call in projected that differ and uncertainties risks, the important As reminder, course could to made of factors. SEC filings variety company's those note may it such such and during other this that forward-looking to the the results from address forward-looking, company's statements actual be due factors. Please deemed materially a is to

results. believe in financial the that area During better understand this financial non-GAAP our Investor presentation, measures operating of management certain may help Also, found website. in investors to of can be reference Reconciliations these we Relations make Kimco's measures non-GAAP the quickly event our if And possible, to Conor. that, were our need difficulties, information the as additional we'll I'll arises, post and the Investor to resolve Relations incur call over we'll to technical try call website. turn as with to

upgrade initiatives our outstanding drive strategy. quality to guidance. high-quality of metrics portfolio, enhance the The portfolio of exceptional review recent updated our today's put ago than thanks place and Good streamline platform our financial activity a another solid I more QX The an in our will continue with and call We to follow off nature and results. years team. market X our on Thanks had highlights. joining and update the morning, with strategic Ross organization of lead and transaction our for the our efforts and of our and disciplined will will our leasing our initiatives we quarter. us. our Glenn cover to

that property Kimco analytics generated It we human for ESG, macro the numbers and focused and Our stakeholders. impacting data optimism this created highlight investments and differentiate country, capital, help retailers of to with cognizant plan entitlements putting past our further outreach, have cautious leasing approach. considerable our our of up while is executing our our and technology, remain community our our in We all our consumers. management, remaining on that and economy, quarter, accomplishment solid issues positive value returns and

quarter that pricing numbers team are uncertainty. should space our reflective, to continue our the power even in While economic second this strong grow remains right period remains location, continues space, of our in the report and across leasing for strong portfolio to right demand robust for

locations, key power our ring to the period of relative The spending markets and metro One mile employment first last focus major of last the are drivers on same the seeing patterns strong. where which Kimco positive traffic is lives remains in top XXX.X% consumer the suburb year. at

inflation, on of the withstand to for more portfolio environment. the and our consumer importantly, essential ever-changing impact now, While the focus position better remains us we puts can't ignore sound a services resilient in goods and

year-over-year. XXX basis occupancy up XX.X% points and year-over-year. and That shop quarter-over-quarter in XX XX largest points. XX XX Small leasing points quarter-over-quarter basis occupancy rata basis up year-over-year XX.X% points increase over our positive rata XX up up points occupancy pro is occupancy On finished years. is XX.X% front, up occupancy basis the to Anchor net Year-over-year, up to in pro small basis to shop basis absorption. points is due is reaching XXX

During feet. XXX,XXX square the totaling leases new quarter, we signed XXX

We from with completed coming lease feet. totaling with salon services. XXX square notable and and renewals medical, beauty XX.X% the new spread drivers quarter positive was X.X and Our options off-price, million

leasing quarter options ending Total with second We and helped is was of us which X.X% grocery-anchored XXX driven by the at quarter top to of new And executed spread X%. and notably deal craft goal square which grocery helps X.X renewals markets from the Halo anchors, annual the more XXXX. the are Effect our releases gross pricing metro that on combined continue is our of The our this the numerous, a portfolio power. to takeaway rent properties transformation with of The this X ahead renewals deals rates leasing XX% options shine. X.X%, grocery-anchored feet X.X%. dominant XX% with totaling and robust drive shop continue spread benefits and leasing quarter million quarter, second our cross-shopping of milestone hit demand we to by of strong activity volume of retention important base portfolio portfolio schedule. coming cross a An most in path small was

XX% rent we square retention was GLA anchors XX the it lowest value XX% to positive making total both retention XX% during quarter, renewals directly at retention portfolio X-year the feet high XX were of We past our had their optimize retention years. with we're highlight this a mile related high and for for portfolio. only our these proposition quarter shops pricing is quarter the to over and the second Further, of rate small vacates all efforts maintaining during spread. further our why rate The above GLA believe Our average retailers last respective are vacated locations as a our rates power and rate. XXX,XXX options

CapEx Kimco strong make differentiator uniquely if that over will shareholder continue that retention balance our opportunities, rise to rates our positioned to outperformance liquidity sheet strategy In and the straightforward, the long opportunities identifying and valuable, term, We closing, all store decrease, value. us will to initiatives a Kimco focused add on to tenant will lead will in growth be for believe maintain improve. and believe in remains drives rate leasing, portfolio. tenant will expedite Occupancy future churn which long-term mile our continue also work total a to the We sector entitle patient, the for assets higher and our openings, more position of Ross? these is we return. last which reinforce density investment result

I Good having everyone hope summer. morning, an enjoyable and is

As and balance previous balance of via the we value we providing equity position our sheet earnings sheet and well the and To things all puts identified cycle. of prime we spot the us a second In as in JV quarter, buying the structured always pivot. we the liquidity how any that of quarter our X say closed in quickly of the activity investments this economy the this transactions outright business, of mezzanine transaction program further our a the importance the several of opportunities on maintaining to acquisition in a third-party opportunistic. second and of for point preferred constant to has unpredictability as centers high-quality creation. growth quality and offer point, of financing can shopping a pipeline partners, and portfolio, follow in the that mantra continue external is only strategy. are; support in change, showcased On strategy out strategy, elements calls, be emphasizes at opportunistic nimble organic supports both and that macro The which

long-term partnership, our high-quality, geographically fund of institutional longest-standing we payment increasing of partnership percentage diverse joint an portfolio buyouts, million. a $XX KIR our Kimco. for in X.X% of was XX.X%. The The of for additional interest terms thereby assets the net hold acquired this to venture, In ownership that approximately consist properties

by loans and approximately center Mercado On in Fairfax, culturally XXX side, part included double-digit during a the we others. returns. $XX Freeway Dallas, regional a of for power center Los closed pedestrian-friendly million, a Virginia high-income a mixed-use Safeway-anchored with providing mezzanine in irreplaceable structured in experience, in investment the the The X location a a assets quarter, supermarket, super pharmacy, a immersive a dense unique and zip Angeles infill along anchored center

right structure. deal $XX.X prime deploy were post components utilize of of assets to as transaction is centers grocery-anchored X have centers a located made able these structured capital million our of This on Cedar a which we these in end, program. New buyout part loan in potentially assets negotiate investment in example part a The view a investment tremendous opportunistically where the first Rockville, have the of end, sale, right collapse with leasehold Massapequa, are potential properties, a to position PA. quarter to look a a of million and a to a our the as with ability unique to we putting best event our upside position on X various fee by we us premier in to Realty the assets Pennsylvania Cedar participating centers. on refusal we first as Maryland, portfolio with The prime only fee to investments and we in to our in title we Weingarten quarter property previously position. converting that a Subsequent had their X grocery-anchored the offer in substantial leasehold portfolio also ownership own forward enables KPR or create acquired Both former a Separately, years of of York future. us All DRA asset the value and Philadelphia transaction unlocking. from $XX remaining. of XX net position site Also

assets noncore several $XXX the party to we sold where to had pricing. included front, This third a venture been disposition than share sell of value which Kimco meet the joint million the On assets, maximized. we elected approximately at rather

of We with asset disciplined will buyout whether to interest. make our continue appropriate all or where a joint partners strategy of this venture a negotiate our partner's sell decision and the

greater when especially I multiple type, financials or today's either quickly to demand bid-ask or choppy Pricing has opportunistic core compared the more everyday provides inflation believe services. between With to we dislocation continue We can previously the conservative relatively for bit to softening interest property goods in our that rates provide other perfection and quarter. to and were and the for with off asset risk on grocery-anchored gladly buyers Glenn with that, environment. be product to sellers for the healthy remains when see and we a as transaction pass will that market the occurs. starting contain the While our a to rises, becoming side, sticky widen priced lenders it verticals become classes

morning. good and Ross, Thanks,

brisk in the million than property you from by acquired share grew are quarter, acquisitions $X.X by merger-related from diluted the operational by healthy $X.XX was Weingarten other FFO portfolio NOI or the report FFO million, quarter the leasing $X.X Weingarten was per favorably XXX million FFO million was offset ventures. This pleased per the G&A same credit highlighted These was our for charge second increase of compared occupancy, XXXX. costs. and NAREIT loss from The $X.XX growth diluted from a improved $X.XX to same-site second and another Weingarten positive This strong $X.X JVs million our interest million of FFO last acquisition. diluted higher million double-digit led volume, acquisition, other higher due if or $XXX.X per $X.X achievements NAREIT NOI joint in share per increase diluted the FFO higher FFO merger. to higher contribution share, per $X.X by spreads. including We quarter $X.X $X.X joint growth. expense primarily share Weingarten consolidated and property of a exclude with XX.X% $XX.X or which from in leasing to core to from million of growth strong growth. year, million share comprised a XX.X% the ventures million primarily XXXX $XX.X quarter of and compares connection and to ago year $XXX.X newly million included driven

in in is Our growth change This credit comps prior same-site points prior which redevelopment XXXX. last given to loss and reversals comping An we benefit our against NOI for year positive we XX.X% rent recorded basis a the remainder quarter, to debt the year. Certainly, the basis operating the strong and and for was X.X%, prior basis challenging the credit portfolio abatements additional were XXXX a Furthermore, anticipate loss our which the year NOI cash our quarter next for result by of basis XX a NOI outlook year. fourth be the full quarter. of from the collections large level as XX.X% from point delivered bad or additional for expect encouraging This growth sign XX.X% of same-site contribution tenants was positive will from from of reversals minimum periods. of growth XXX loss component NOI resulted doesn't be included quarters for projects. Notwithstanding, from for same-site same-site the our XX credit offset lower of due third also significant level in of points. X the reversals the

our ABR tenants, which in it now that X.X% XXXX. of quarter of terms the over from In basis XX% level is was due down during cash we pre-pandemic to second collected of

Turning to the balance sheet.

which debt This a since which metric joint monetizing Our current value market EBITDA, potential debt level this we share to ago. achieved includes our at disclosing NOI does the look which any remains through not has and of preferred level a net venture benefit and perpetual $X began of include billion. from investment, over decade Albertsons pro our our over issuances stands X.Xx, best rata

immediate capital of in utilized well as credit $XX.X issue With to remains XXXX, liquidity our our at common quarter we $XX.X investment. ATM million. the of a raising per $X program availability during our stock shares Albertsons price earlier, and as mentioned XXX,XXX cash respect strong second of billion activity, share our comprised billion weighted of judiciously average revolving to with million $X.X $XXX facility As position

of our In October notes and in XXXX, addition, in million due of due June X-XX million $XX.X X-X/X we of XXXX. notes $XX repurchased our

million repurchased outstanding stock. $X.X also of We preferred our

previous NAREIT fixed of and having is our only repaid XXXX. consolidated maturity XX% consolidated mortgage during a rate the debt $XX at worth quarter Also bond $XXX we as million of debt million average share consolidated of have guidance debt over Lastly, of again for noting, outstanding our are for nearly remaining a to year, strong remainder XXXX X to half the weighted years. on Based first XXXX range the the and results that the our to FFO on a maturity expectations for $X.XX of increasing $X NOI new the per we our the to same-site million range following is assumptions: XXXX of no additional no year, growth loss to credit redemption million something of Albertsons of based models. are Separately, the outstanding charges from our year, the associated respect The we expense the with for a call to your issuances range $X.XX. important full interest $X.XX preferred want remainder to or out the of $X.XX of for positive debt range with prepayment and of our callable investment. $X monetization

in page debt million with this, over the value $XX expense assumed fair more the better XXXX. we adjustment of on a our consolidated the reminder, in supplemental As reduction that market in interest associated we disclosure the To package. debt Weingarten result will in approximately detail illustrate expanded our

for on Moving the again our share XX.X% results previous third to of of on $X.XX common a paid a Board cash per dividend. level outlook, share. common per increase ago. represents dividend per the $X.XX to an from share year XX% level common and This quarter our the of $X.XX and favorable second quarter Directors raised new of Based the quarterly consecutive has our strong over

Kimco appreciate both distribution We and to the from and their cash the thank shareholder in value. over which with free now $XXX expect efforts line take drive questions. income leasing we level, for and recurring after continue million of dividends to are is of CapEx. to team operations ready maintain estimated a truly taxable and payment your We to And generate outstanding entire flow dividend create

from Bank comes Schmidt the question line with [Operator first America. Instructions] of Our Craig of

rate of for shopping positive the completed and new from on Or strong this put a just it power. to I'm strength reflection just bed of wondering is 'XX? maintenance the a leasing pricing your and centers? demand Is grocery/essential-based run

that the in of the mile to that closest center the in forefront, is the to at terms And retail headwinds a customer portfolio long all essential environment, at the estate, side despite, demand mean, shopping best in our grocery with foundation estate possible. there's the really build base, last of the your real position discussing the still I the that's you real obviously, think center what as we're current need anchor term Yes, and your quality I then upon.

and I take that of sort of think to through a of here. the observing fight current retailers it now lot advantage what opportunity headwinds wanting you're seeing is and

of think we we the to any as construction, completed. new then only quarter, construction terms it's feet the lack X XX%, QX, I supply last new million about I in demand strong of see progress with, retail retail coupled of year-over-year year. And believe not but continue was this through of the it's So out obviously, balance just only also down over square of the

puts high-quality together really when inventory So have a on good in estate comes this you of real you COVID the us that, sort all and position. have

comes from Stanley. Morgan with question next of Our Kramer Adam line the

I'm all showing you hopefully of a especially macro, kind those some there's what maybe earlier but about of I Conor, I cautious clearly the -- in of of that I quarter and in think kind regarding little how of your recognizing optimism. are kind cracks kind some of right, cautious some I'm more the kind the Appreciate in your the comments. commentary. think that of your optimism words that of open putting use phrasing others things outlined think you than puts think, And kind and think to you of maybe see And I comments, out not and bit I to caused of you going mouth, wondering forward. takes called kind you're

expand that. to Happy on Sure.

proposition to They're really new And customer. I sort resonate that we with retail value our product are are how the provide you're it's where with convenience. I consumer. value with the people of really shopping we our the of prioritizing convenience seeing resonating age So think and today is and can and think

shopper, our on inflationary with well. and at there's our in environment portfolio up having employment consumer, we is positioned the is we with. the is dealing some a continuing strong, average lot cautious U.S. are which, of gravitate seeing optimism And of where When consumer the drink that product. first of that right the Kimco shoppers quite where resilient wage affluent we're increases are holding is the to major the than traditional towards we're now metro they're the stress markets, the more are sort again, obviously, think I look

their our centers, the an a we're in we continued so we're lot of date, we that with that the to retailers we last are all is ball. expand what think value. right where going Everyone that where that hold. continued demand traffic cautious on as pounce to position I power be we're our the for a to distribution points. landlords obviously the pricing a squarely e-commerce continuing has are in cracks create is different to seen We if going remaining, continue pipeline using camp. vacancies remains opportunities And optimism the emerged mile can stores and integrated crystal can future are have feel But wondering as to of opportunist what And limited we've towards a it's creditworthy see

Our McGinniss Greg of with Scotiabank. line next from question the comes

to just extend quickly Conor, lockup want on Albertsons talk I on the shares. the decision to the

the there. were drivers curious kind Just of what

Sure.

our you're consortium term. value owns the most in our see that shareholders for think longer I when of sizable really stock creates it's to interest it So amount make sure through an for that a the in a to organized execution really shareholders best

along considered to there's everything consortium to we obviously through. we options value. wonderful management the of felt And so and that through. for of tremendous made money to possible want see that's It's is feel this like table the Albertsons our amount with go initial maximize this We've doing on believe And investment the a compelled that see act been do on final to a the the we investment shareholders. why and

Albertsons' And review. so strategic we see important the their the period with was consortium management it extend to and opportunity to alternatives like feel that execute the lockup to every on through give

of question Craig Citi. with Mailman comes the line from next Our

position activity? were million the things. X And the good about potentially fully just where are active kind you're with on I what's this story the of underwriting is you looking return as that new I'm but And to number guys are this a sheet for curious today, $XXX portfolio financing a guys quarter. week [avoid] you hurdles there kind in plan value be two, a on was the One, are strong of balance equal liquidity, the you buying, out year? in ramping what equity is acquisition just

Craig, I'm address happy Yes, that. to

at a mentioned So as it organization. of evaluating everybody top in metrics in of the of I've look that's single look when capital mind the a We investment for do day. is past, we potential every something we're Cost at variety

growth is accretive think the it this So creating we -- a in for it in environment, when rate value check focus company on day is spot an X really and about cap way. a our and on doing enhancing

investments So need And in it that there's other of sort out starts our if a an acquisition, at low ensure program able find were we to of put to avenues that's which we near-term need structured to in. we is cap day at attractive growth of very to returns on capital relatively investments, terms X. enhance rate, comes amount tremendous achievable. the our returns a where

confident And and partners accretively, of structured strategy term. we that growth long so buying core a acquisitions feel pillars our out short, returns get sort we selectively medium on X the in to the to you point investments, return very between going to then the able our we're and that acquiring the our where achieve and we're on our investment in when blend of get layering

the really we funding, in really position. strong feel and that that's where we're unique In a of terms

we leasing mentioned, over dividend $XXX As flow million Glenn free of and after CapEx. cash have

cash have balance on the We sheet.

put that of able be work we which we'll to monetization, to of Albertsons' amount course, acquisition our recycle ultimately, moderate activity. into then, have a new there. We And have dispositions we'll

fair deals do fund ways a believe we that these So of to have we in an amount manner. accretive

of line Evercore Samir Khanal Our from next comes the with question ISI.

in half implies take we deeper be provide. When I sure, about the for close half I out just I $X.XX, this can is you and the you're which want second in XX%. to something first trying getting wanted XX% to $X.XX your this dig bit should guess, guide to were to some a morning Steve FFO, color there just make guidance and of? is maybe the to the figure you here. aware year. Glenn, little

reversals I No. or bit at look are if $X.XX, settlement quarter, $X things It joint in time. on you some of that And a ventures. items, we range little as half benefit LTAs one think about the second I related from mean, a million $X.XX about second the was reserves less But in like more have a loss of of there's $X There's loss of of all And there. did I credit X of going our level we're that credit straight-line not well credit as to year. numbers. million the we credit forward of income of have in mentioned, loss, million that's still loss as income. do $X the of anticipating the

imply a to of end kind fourth get that quarter where third quarters. for roughly of we and would range, upper that's $X.XX So the which the

are we We're and those to we baked interest And but it. think happening we've we cautiously is watching in feel decreased put that the it we the level have, out, keep happy we that said, the guidance optimistic, that are that but at we want watching we to achievable. Conor that I'm into closely have the economy. So as again, components rates pretty what's we level it

BMO question Sanabria line Markets. Our of comes Juan with next Capital the from

opportunities given because opportunism that maybe are strength to think maybe our you to bigger distress see some near-term sense it you trying be? coming the eventually just touch I up seeing see possible I you and get on is just there maybe I'm may positioned balance that the there's the potential something liquidity. there up of wanted maybe set opportunity mean like in is works. that sheet opportunities you're and/or will now? potential sounds that open Or for how a

to would wonderful balance for with in we're say continue we think sheet, position, presents that position we investments absolutely prepared distress I our as be We'll but that make. of the we're seen have we once disciplined yet, itself. a to be liquidity extremely upon opportunistic our that Based it. Sure. the not

in very that pandemic, a we saw stages recovery. the You quick and the had of then early

extent and stay presents that that the aggressively, there that we itself it. in some but disciplined the we're very to when quickly we'll move on dislocation do ready some to macroeconomic conditions from So to challenges the going is be very today, of

we've in patient, think opportunity, bit cracks. the I the we're Ross, say, investments structured of little return seeing versus want. being structured of side those too, I core seen opportunity, And a a lot bit for as more we're you investment they higher little looking the in with would acquisitions think, a

about tremendous a itself. not a to about deals. transaction if provide combined, it does capital fourth on end. it's that the that just third investments or subsequent were think potential could Yes. amount opportunity for the as outlay, quarter quarter closed $XX one And were while It is, one And see the million in I of a just those closed for of presents the you pipeline out we nice X things we the put in structured that much release, there larger structured investments was

very it's much today return So investment with lead attractive a road. relatively bigger to modest that could a opportunity the a down

next Our Sandler. with the of Alex question Piper Goldfarb line from comes

Just consumer. a question on the

or any some and of off? XX-XX or ones noncore being -- sort of shoppers sort the of the that what business of at their is look are shoppers your across of the drop the whatever some they take where seeing or they dynamic have shopper remains it's to back, dialed I'm people go that of people. any in fall change businesses more out XX% some their restaurant I'm it's Are a shopper core you that sustained costs seeing by with -- your So there's basically, but rule any really continuing really or XX% As seeing to is your getting not tenants at understand all the that core overall all fuel if and if stuff, centers. their of rates and the rising just in to that interest just base? still adamant shopper trying about change been tenants,

bit making It's good question, me little Yes. go-for think a a here.

and to my bit of bit going I'm use a So anecdotal fact of little opinion little and then assumptions. a

we and is, XXXX compare numbers pre-pandemic. it's when XXXX where traffic-wise, in with to you care where was it it compare to it less more when levels, back or our line you then So over it's back XX% up

have consumer. the which So the activity or and the volume you Then site, of dynamic you the good. composition on look of at the of there sort is customer

is still Obviously, think communities, we extend restaurants, this spend and been the people seen out a that their that the summer. to has entertain to we've dollars positive to and entertainment. through seeing I discretionary the seen have what near-term we've with sign been desire themselves services, go friends and society theaters, success some wanting in reengage

think value base I beyond you're shopper. inflation probably do broads is. seeing recurring just some being what core price So it think obviously, trade I your that your occurring, with

customers more to making of the really which Some its store, they're grocery is Great Maybe focused but store. on those grocery decisions slightly found still value off-price and the but where different continued they're acceleration. be buy, they Recession footing at may have to purchasing, -- going the

the to continues up change but a resiliency seen right as So is they where consumer some board think bit seeing across spend consumers you've how a activity dollars, of I now. want is think you're about the in show probably the and to their

one X that's is induced pandemic too I'd suburbanization. from we're first that themes the major Yes. benefiting the say and still

think we've around in portfolio. obviously, seen, uptick I population our an

being hybrid out home. still There's a model there. from work The second

typically just still stat remarkable portfolio as a it's going And is traffic of distribution third office. closer Target from are lunch out then patterns still goods robust versus past their they to the sort mile saying XX% gone with that the important from probably store and are that component. have elsewhere cooking for So most for people home came last base a online cheaper to the to this to ordered the more center. distribution month, at the shopping might them or center are our deliver or as

going retail. in We to sort I think and landscape. first of think inning that differentiator again, of very, adoption really going retail mile a proposition in value major across first for is, is very the focused that us We're forward. last be being the So

the line question next UBS. Our with comes of Michael Goldsmith from

lines then in of the back, the has long times impacts discussions before pulled financials. that eventually I has guess, the the your of leasing it when Along positive how and optimism, kind consumer taken

Just to to determine does from like worse your up things get in if show numbers? when here, trying in your this and conversation start

think cycle market every is I mean, I different. Yes.

to in So the the now commitments, retailers say in is the looking terms these the forward, deals closest right being long sign show retail X about evolving could seeing of mile distributing at long-term are ways. primary make with our that I last store. I they new mentioned what not play. distribution They what for it conversation, may as and appetite value because Conor different earlier slow said going have margin we're fulfillment shipping and from and the strategies complementing customer there's options all greater and itself

meet each to necessary real individual secure to that So that's company. a great now estate within fulfillment your strategy evolving is opportunity

do certain that higher to retailer see you some hold have order the that higher-end -- daily be in real areas you so, we that terms to the demand deals. But the of may to doing there in of continue start some up, supports essential, and that's pullback, out That So there trying consumer on pandemic. maybe to said, still see value-oriented may you result to absorb continue as a daily the quality side customer, that estate side.

because optimism this cautious would of a the if just today. years real the portfolio. I where transforming add, of spent We Yes. is think of some lot estate you is

in and be curbside see you with whether having embedded a the the way has been today of their it the a are the And it's in it'd as top So markets just point. changer. really these many real communities, pickup -- fulfillment retailers game using it store

is improvement, you then very, continues real that, Starbucks, that benefit. that a and off-price, the it we So mix a have, And it'd real look home stuff doing it'd [Begoguys], just then goods be at Donuts, everyday Dunkin' services, whether tenant essentially we be to based, be that's think and that if whether grocers, very -- is well.

us gauge kind little in of a day center and every watch gives in and office some the it comfort a sit bit. to it level, traffic we our shopping So

Our next line the question Haendel comes of St. from

Mizuho. with Juste

I expenses, potential is CAM, rise remains as on structures items, discuss question taxes between likely net revenue on NOI Can mix growth various and contracts different because of a there expenses a lease guess. on the So fixed you of other things with strong? lease and pressure some for top although line

Yes.

improving margins line, been quarter-over-quarter. have So our

when XX XXX points spread, economic As you at to it more XXX. you've compressed lease retailers look basis from gotten open, our those of

to expand continuing Element seeing operating contributing so your margin actually improvement recovery. expenses, to of favorable out way the we're is contribution you're So a the moving in more in as pandemic. of

typically relates it most forms. our to those to are dominant leases, fixed As net as

now We X-plus at plan. us, fixed program. is look our For program a capital year multiyear camp a

also we as where that factored midterm, fixed we're are markets well the that near the within some note factor recurring and the important an going too, inflation contracts. So contracted to services appreciating that's out change. do spending all over there insight it's as And dollars CAM of an then to be to the for into have are pricing to component the multiyear

So it's not pressures. near-term impacted inflationary directly by

So the term. we the good still position pressures together, once are near very all absorb yes, mix a of it to you in

of I we our out our items into at Yes. The because services that expenses, is just amount we're benefits bulk go these look obviously add that only discount of goods the we size the thing we of purchasing. When we scale the of and out a some and have. bid services of portfolio would get bid we and recurring

as sure we've have trade -- feel I that net the of make that and costs area with amount our of we a scale. triple like try lowest portfolio in the that embedded our so well, we because expenses in the are And typically of technology efficiency

we So advantage under our mindful of to control. our that to scale keep very our are costs use and

real And you cam your I estate number. mention from is excluded just that because specifically fixed taxes, did will

Right.

program. XX% will after year, at I Now in, inflation factor have definitely to run add, was But year if our I we've inflation into though, that, impact. an some Dave having said built or cam as XX% fixed mentioned, would a it mean, year,

So absorb that we it. it can it think built we

of with Compass Dijkum Point. Our line Van the next question Floris comes from

seeing are impacts you year. I since of a had as changed growth underwriting expectations higher to but the direct rates, question Or look of how a at rates? beginning slower of what your market you is result as and on And react obviously, expectations typically kind in cap they've cap are you the impact of in rising what return kind are the acquisitions, inflation? terms your underwriting higher your of, of

Yes. of increases, no it. cost capital There's doubt that rates hurdle alongside our as go up

in to in We disciplined try mindful extremely that. underwrite in rising when stay So of deals. of terms do we assumptions a underwriting. think, opening that these amount conservative very anticipate rising. have time approach deals making lease cost lease-up assumptions, take execution from that inflation I take, We Very healthy to we're we our very of a to been and that sure expenses our fair

and cap X bit overall dissimilar your any X on So what rates, certainly all the than higher certainly that's through a even the transactions those case. cap the was moving today point We've asset than not months at saw it's low ago. hurdle month the less factor ago. to up into To dependent a continued that's location. all-time little rates, it maybe quickly months this X, occurring market, rate And see of very we upon than

power now Xs a no you that or that's to buyer have a doubt direct if that, in center and have months commodity hand, they're a there's other the the Xs, borrower going borrowing borrowing the impact. On whose ago, a in X

target to of is, institutional movement very much we've composition all-cash cap in it's a seen buyer a whether the is who So versus levered your asset be how the going to the as rate. buyer and audience an private meaningful difference

the Our JP line question from Mueller of with Mike comes Morgan. next

Is investment implied seems a it cap debt? purchase? of the just Or the assumed it that was the envelope, was And inclusive cash high step-up what the on million back paid? rate is $XX year of rate. Because like cap fairly the

venture. Yes, number. all the that liabilities debt is in joint cash in the factor net of We that's a

one a negotiation net direct value a then those. partners with was based the of I of million minority of that position of it that payment So tell and our $XX there. of collective ownership would upon the of was in sort of views a all assets factoring our you

the say cap what sell So open in was market to we today. that, rate I than your would a higher it see point, would assets those

Anthony the next Our from question comes line Barclays. of Powell with

negative to given headwind seeing that looking last are only activity e-commerce for retail. just retailers back the A pre-COVID that positive incremental in Or is more saying lot Is your a if Is is that you? shift of terms as maybe activity mile of positive important? or player more they're centers a a use a that store that from less see distribution? you to material

Anthony, the day at retail, it's omnichannel.

have both, presence. brick-and-mortar, disadvantage of just to have to pandemic And there's it beam a bit at think pure margin maybe pure-play of put in can you online I as is some proved out the play. probably I You relates of right? mean, that a distribution online having being you advantages

both. it's think of a I combination So

a together. sales. one ebb brick-and-mortar as retail about you the I sales bit and see e-com it's look really little you're do strategies, see when think But as infused flow to you going holistically

total continues and I the pie long is So how the as as grow, they utility product think that brick-and-mortar and there for net-net, use to distribution.

is on Really costs. it's customer acquisition the a part focus other

terms a think costs to struggling of have stores at continue are the to nice and acquisition been I pure customer a the return get to players boost customer involved the costs brick-and-mortar where pretty over to you acquisition when online as Advertising e-commerce sort margins integration of really lot the the they that. in players, extremely and think continues their their I expensive, the be control allows have healthier. look major try play of them really that with costs

as for players, e-commerce stores. you've benefit I us So it's a pure seen, opening physical most think net as our

are look, blurring. clearly the lines mean I Yes.

a fulfillment I estate is It's markets. Some e-commerce just mean these well. the have is it better of that as sitting point picked we about, in seen talking than today is product the where up big you're of this the being itself -- being benefit that's store. -- the we've real

the of Deutsche with Johnston question comes Derek line Our next from Bank.

development, on hard sought so some On Kim's -- held back pretty entitlements. in-hand

rents about timing thinking maybe face for multifamily, the in development balance rising towards rents but you and how now? potential are how and demand? sheet development do desire given rising slowdown economic balance starts given guess, more for to in these flip potential with the I the rapidly So Clearly, you newness costs, your of also new opens

through think actually you I the Yes, you answer all question mine. in your the have parts

now. in development position if down compared projects years. under move the in Milton one, in market a down right I is continuing to to contracts. Phase we're wonderful Pentagon think we capital Arlington X where project, X don't construction as of as We commitments So break were big last we long-term it with have our GMAX

So we there. feel good about the pricing

we're through we're you As it see what we're are thousands that activity, new at and at looking to we sheet, of in as at our to the at of is looking capital units we to opportunities do can do option joint venture, and the the so the plan, balance right supplemental, entitled relates now funds self-develop, use our we're best have doing looking decision and do have at tree them. and looking place how We lease we the our so. entitlements at ground what And is that ahead we time us. to that go appropriate we in activate then of we're do

forward. what looking are and in opportunities, we have sense and pull sort near-term we want midterm at how we it to also the then of makes what So

that's So job. our

continue We of some entitlement an basis. we to pull feel those we assess out there's will. like the a them, quarterly opportunity and shelf activate on it to if And of

profile when set organization. growth once. to mindful what's of on But enhance to going with think them, we I the focused And at the see we activate to entitlements, be we're on. do that look the continue opportunity going all the path have way not been that the activating growth best FFO of at very We're we've we're you too on many the FFO when to continuing

Our of with Truist. next question line Ki Bin comes from the Kim

tenants a your looking the just look space how space, the of many if customers, you -- type perspective. at top confident when for demand When in have to at longer to might amongst of quarters good are customer your today you couple just deals base? overall, be So changing funnel And quality ago? open gauge of I how I'm curious trying versus plans a close, are that quickly buy if guess, taking

table, real their mean the seen, real strategy. often, high-quality today, And is inventory have that helps estate also I evolving negotiation and bidders and multiple that continue think already which again, the you've want obviously I does not estate seen come Yes. we all with, that to we at that it. available, mentioned multiple times people we've to are as how strategy have utilize they

for they're quarters several announced was focused really whereas unique ago, full-size that target again, pretty going urban something formats So on penetrating and years small because markets. which concept they're the format for

is their for evolving our -- needs real are estate. our and creating people retailers demand which wants, and changing constantly So

very of and trying the deals get I the to activation as done timing it to the deals As both possible. and as quickly negotiating focused actually on think are sides relates process,

They of stores and expedite right? they how have We quick directly growth because retailers as number targets to working way as a to have our in to discussion lot open, target, possible. best their those that conforming both have achieve of open is have targets own We're with negotiation a leases. that get their the of to

as possible. quickly We to want have our as them own get growth targets that we open

where construction of say, we So there's both pretty process within a a felt friction mutual that's unique. pressures, both benefit had of, we point actually the and now

we go And industry solutions, for for and retailers. which us partnership closer forward I the together better we better think find our with as so ourselves as net-net it's is in just brought work to better

next Our Credit with Suisse. Tayo of question from Okusanya comes the line

trying a And piece I additional it Is better get alluded to? does guidance -- just by $X.XX. incremental $X.XX, So credit I'm to raise to on trying better Are reversal of that provisions what handle trying get you of guidance expecting is. growth? that the midpoint guidance what to you a in just better of by better raise beat same-store sense occupancy, increase I'm understand NOI

minimum the built reasonable run $X.XX potential as we of year, we look do remain the year, certainly same-site amount more But we we that certain we expect in -- last and I this But and in mentioned, pretty when balance online. for doing over a we're are the have NOI third level, of can have think credit that think Occupancy Again, while the do it. for year. the has into guidance loss at level expect quarters. we the year, Yes. there that rate a absorb there's comps that's coming tough that. increased rent fourth full positive Again, the we

the the investments cash favorable into So And to Ross we're interest that that then has is in plan investment return the the mentioned there balance bank that that's are part that as well. that's all the quite of our on built using really on some were earned it and relative sitting accounts. initial sheet not

Tsai Our next question Linda Jefferies. comes of from the with line

Yes.

Just in given proceeds? Are little changes the the about landscape out. Albertsons its of you thinking lock use the of differently a the extended any further

be a think We position come look really in of off in at is far which opportunities. landscape haven’t, unique we’re Linda, the September, we’ll where a to position I not

number different, have our unique as or investment we that We can items that our unique invest through like are a mentioned, Ross in to feel different of we Kimco opportunities.

opportunities The September we that well. present investment be could as be to pay bonds going are There coming well. some preferreds from unique come have that might as due potentially We off. callable themselves

being think term. value of think So shareholder focusing a on create take my any where unique and of as remarks, And uniquely value I key is that lot presents positioned in that’s opportunity mentioned itself. I really patient to Kimco can the and the where for enhance in opportunities I near us we’re advantage

in Yes. accretive. I debt mentioned, be be about whether other the mean, yield the any just look, it Conor dividend thing almost investment of going that the investment, down that anything do, we to on or our investments Albertsons, do nice it’d you if the pay is

have we available and lot to opportunity. lot hopefully So a of options us good of a

line Our with next Mailman Citi. question comes Craig of from the

X quick It's Michael Bilerman. had just follow-ups. I

I Kimco's sense estate estate terms in a position changed could real of we obviously, type of, the does a guess, transaction anything like the Albertsons. of from potential one, Just have options company, on as monetization create Albertsons real Has that. some and conversation in continue estate real as you

they the only then I on has changed and in that a Or cash? JVs. So option strategic take as alternatives? stock through follow-up mindset to at go your And had just quick sell is all had

we've obviously, done within position Michael. the can leasebacks own focused retail. Really grocery do sale where, an before hasn't of in we that where a changed, store they we I past. own on the their more We're We've where in surrounding as that mean of been the asset assets well.

a rate compression the of grocery sort the by on we entire anchor. asset So cap controlling get

that So available playbook us. have the we still of to part

used but we'll the and is strategic we've how to game play as have So plan continue alternatives obviously an out, wait to that and see that a before continue opportunity.

time of portions effectively So we think multiple down of kind that it of option either converting into are of or about sale stock should selling your through start over taking some that holdings stake? an should for leasebacks you and saying investors the this all real stock assets estate about thinking options

No.

marketable and think the monetized situations will used I investment I way sale-leaseback that's to redistributed about it. think, about and unique to from Michael, mean, that those will be to the is the separate easiest securities vehicle we possible. be think the be that. be I The own way would it in proceeds apart best then think

results. NAV pieces here from you paper of more JV right? of looks rate into to least buying your for at others? trying think KIR effective partners? stake desire cap. that billion sitting your you just You're to desire How you let's out that the in call this equity are Okay. earn we at should or value which spread, on to cap that $X at now And direct, the GAV then in buy syndicate you more got X% like about about it, an in a Are at discounted that and Or arguably NOI yield effectively asset, bring

XXX% to plan? You continue of own What's assets? back in buy to out these syndicated you going the it. or own to go-forward Are to try XX% of

Yes. a question. good No, it's

this our I venture it XXXX. at was is KIR joint specifically, you think venture, look longest-standing when established the in

more our there sense portfolio. ultimately, the time that to point for made time, a alongside it. in of the New has to fantastic partner that within smallest was X exit. State Common tremendous the own the in have think minority At think we I us We love So would since been where it their same We York partner Retirement are a Fund assets beginning.

itself So relationship with to we that And be presents if a and exit, to the venture, the anticipate partners. ready KIR any them. a conversation. that to have we'll great new to don't continue when they we'll in desire opportunity But maintain have bringing specific

the Our Haendel next of question comes from St. line

Juste with Mizuho.

then Glenn, clean hoping specific I the XXXX on It the guide ex GAAP also quarter? was a also or you guess maybe in and what what basis a And range NOI a adjustment of were could you, could prior adjustment provide on to more a rent be if period the now -- be used for recall. prior I second I period clarify for basis. both, same-store X% you expire bit

full be for year, as it not the are we to to the As guidance mentioned, expect it range. a providing I relates same-site we positive,

happened during can half the what's You first year. of see the

and for quarter. we're quarter. second for there, we comps still in have X But in that currently these sitting months, at and the So X.X% X.X% are there's some the difficult fourth again, uncertainty very the third

But want So at comfort I be positive. give for range full point. to it a will to the provide really you that this don't year,

mentioned, that wasn't period As reserved, from collected, million. about and rent it XX% also I difference that tenants, tenants so the cash as same about those $X collected to we collected from rents during was second which basis $X that was of about cash was relates the that basis quarter, prior is million

kind of of So wash of that other. out each -- kind the net they

for is session. to question-and-answer floor for all today's over back time I management the to the comments. like have would turn That we closing

our posted us for the are Again, very summer. our on much Enjoy you your supplementals joining Thank website. of today. rest

conference. This concludes today's

participation, your day. may at Thank You enjoy time. this your disconnect your of for lines the rest you