Kimco Realty (KIM) 27 Jul 232023 Q2 Earnings call transcript

Good morning and welcome to the Kimco Realty Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to David Bujnicki, Senior Vice President of Investor Relations and Strategy. ahead. go Please

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

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

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

And with that, I'll over to turn the call Conor.

and and notable close a updated of today. the term our begin an market Glenn an with longer Ross few the during and will guidance. environment, metrics joining with I then morning strategy. and thanks highlight us will cover our financial for Good overview of the transaction updated on leasing will provide accomplishments quarter,

to remains retailers the Kimco have plan, labor sentiment. bolstered robust a Demand portfolio. favorable continue for and for strong, space their consumer environment in resulting inflation expansion leasing market as peruse Easing

up strong across new feet. first-ring We new are second totaling regions. our supply, and suburban all locations limited closed our With over XXX,XXX with quality, quarter from rents demand leases, the square XXX of high

strong and our to spreads portfolio power. leasing continue quality Our validate embedded pricing

XX.X% Bed spaces, included the leases with combined we during was new closed the recaptured and spread new X.X & square four Beyond spread totaling we Overall, feet, quarter, million of deals on a Our XXX quarter. leasing the two of of during X.X%. which Bath

quarter second option with renewal renewals at X.X%, at and and ending X.X%. Our options was spread X.X%

renewals As the majority our tenant a stores. exceeding for with quarter in retention million and second locations, average the including XXX and the are their ended option and volume, in feet, and all-time quarter result base, totaling retain small of options, renewal consumer healthy to electing rate previous We five-year and desirable spending our square anchors, X.X renew, highs. shops reinvest near of kept

our XX shy grew points our we substantial the with high, points anchor most activity portfolio and XX executed XX throughout all-time Small XX%, basis sequential have gains businesses of over five basis only generated leases in to years. occupancy anchor of quarter, we this

plus recapturing XX reduction while anchor XX Bath morning, the for in points XX eight boxes in vacates, second quarter. & basis to basis still includes sequentially at of year-over-year. up occupancy the Beyond flat from of the an This second Overall finished XX.X%, only Bed points occupancy These XX.X%. quarter Tuesday resulted

XXX but embedded widened indicator growth future good pipeline of This for bodes Beyond our not to our also and leasing boxes retailer absorption the basis portfolio. well has between activity open another spread points, Bed & the remaining signed, Bath in the of

vicissitudes some and our the quality While bankruptcies, of retailer the cases withstand, not of failures. mix, short-term we team leasing demand advantage us diversity locations, tenant high to best-in-class to tenant in are and overall enable immune of take and

the including the second we've end quarter of of executed of a during mark-to-market the with Beyond, through locations new seven & terms quarter, released pro-rata In Bed second XX%. the leases spread Bath four

In addition, auction. Bed Beyond as retailers Bath three of the the of were & by part purchased leases our

activity Bed with remaining XX%. on Currently of we the Bath have XX spaces a opportunity mark-to-market over

third during at a the quarter activity lease to due Bed on anticipate in XX Bath the July, at leases the have the we remaining While of the and XX end vacating we locations dip occupancy of seven remaining.

boxes are we we of the and demonstrates which lease-up credit benefit believe encouraged Overall, the quality with market, will the brisk strength boxes, by of tenants. backfilling ultimately retail of and from the the further these these stronger portfolio

to strategic our good we goals, to long-term respect progress. continue make With

increasing a in added we of XX%. assets our to grocery portfolio First, Sprouts grocery-anchored new an Virginia, the percentage in asset to store

addition, mixed-use shine. In continues portfolio our to

a operations now opportunities. the have densification over construction portfolio, X,XXX with apartments across We significant reached offering and pipeline entitled, future X,XXX Kimco in of X,XXX under apartments

addition The and project The both example assumptions. and retail densification the in and will leased for asking resulting rate newly-completed positive perfect Milton, this compliments Virginia, our economics The of rest impact XX% the ahead site. Pentagon in and named higher the sites, rental have enhances leasing is is which A affectionately XXX-unit on apartment of rents residential on long-term the complex Milton our of activity. a already absorption

our to we the pleased our vacancies rental and team. our quickly meaningful with spreads, testament and to and are of performance closing, true team's strong of that of quality leasing platform execution In portfolio allowed at accretively the operating our proud a us backfill

Glenn made strong progress the details also a sheet in metrics. related We shortly. balance our ongoing efforts have will maintain and provide significant to

continue said, to better. to ourselves we That do challenge

deal our lease execution time tracking and from build-out to our ultimately to are We commencement rent efficiency. costs enhance

timeline for and past year-over-year years. have net space two growing the to for continue We on reduced the rent focus out building effective

leader, a of at recognized top to shopping the as accomplishments the strive be only these to REIT by to make we are a team center proud list we Kimco. addition, leader enormous net All Forbes as are sustainability. an In XXX reflective effort in zero be

results of our stakeholders. opportunities to as headwind for advantage will maximize While they positioned take are we ongoing our are of that in to we also present all emerge, themselves, withstand effort to inevitably ready

Ross?

Thank the the of I you, That morning. to activity everyone year their retail significantly we're volume summer thaw was hope the down so and XXXX. half Industry is enjoying sector. with first up warming said, far. good compared transactions see in starting to of open-air the Conor, market in

properties as of our patience any did While program quarter, liquidity structured acquire we in position our arise or in the strong investment new believe rewarded and utilize not back the the will second be we year. half opportunities

have be the and that high the there time, At are investors institutional in for pricing noticeable private both current we seen in the increase to with demands prepared same from open-air hitting quality retail. late expectations. sellers ICSC market meet quality Since a products Convention May, significant continues to seemingly

and expectations ready in borrowing elevated, dynamic, levels While deploy. costs nine seeking remains past any of feels significant has and months. remain market equity at the healthier retail this it more point With core to the vibrant the and than yield capital now strong

to as few finish Considering across of we detail over $XXX targeting been come this There acquisition the backdrop, the opportunities end and coupled deals select to selectively we investment. move on cash of it and some year investments with these the structured a we more be balance second ends. line by existing close accretive our expect pipeline on on quarter, million the sheet have of at will

income-producing Most dispositions, for dealership to Delaware specific $XX land we notably, As it auto our selective approach development operator. redeployment potential an parcel to it retail several relates clear best investments. of for risk evaluating the sold our both into choosing direct return plans directly our adjusted to million industrial, continue and proceeds sale we subsequent that became a for allowing Christiana, assets was operator, reasons. After for

balance over both on and prospects while side various our select we assess generate strive the strengthening to FFO continue growth to new opportunities will time. as pruning We investment incremental further sheet

now outlook. for on an Glenn the to will pass and off update it I financials

and morning. Ross Thanks good

high strong metrics. positive additional results, Albertsons to operating leverage to and continues Our received liquidity of enhance from we leasing with our Furthermore, quarter growth another deliver same-side proceeds our by quality spreads. and investment, continue position NOI portfolio highlighted favorable

per results details million year's per of or results. share our quarter share. $X.XX as $XXX.X for $XXX.X compared or FFO second on million was last Now, quarter second some to $X.XX diluted diluted

debt quarter and of due minimum million, These by second of million. by $X.X Our $X.X growth the had consolidated bad largely of million as from period rent which higher year, offset rent loss last of NOI were a to expense percentage driven were increased compared level of income results reserves. higher increases current $X.X $XX.X benefited reversals pro-rata credit million loss of to more higher to normalized $XXX,XXX credit due

pro-rata rental expenses factors were quarter costs in $X.X change million insurance increase includes higher in $X.X property which interest to the million. addition, of Other by income results greater of million. second and in $X.X the increase recovery expense eclipsed expense related G&A In the

on earned sale cash income during partially resulting the by Albertsons of dividend lower benefited We was higher interest also from income, past the invested that shares months. XX our from offset

debt uptick expenses non-cash expense related G&A well previously bonds, in the was as quarter, rates the due ventures. merger, market fair rate joint as last to market in linked greater to to largely the relates staffing higher awards. following associated The interest retained well in our the anticipated floating above lower amortization, increase of the levels value expense with to as Weingarten as interest Weingarten higher equity valuation Similar to

excluded even Same positive the the have if of second X.X% quarter to period X.X% better collections. and was for side been Moving NOI growth we would prior impact NOI. at

in the of the side our higher the these same minimum offset we point basis components portfolio. XX by from These points. improvements XXX well-located boosts NOI the growth, a were Overall, rise basis rents encouraged point of at strength basis rents. and Looking from XXX results increase are continued demonstrate by of loss credit percentage

during net sale related shares we gain to have from It tax million the the tax of on the million is sale the relates intention provision. to are Both stock pay investment, and it recorded ACI X a capital and almost the on FFO. gain of from our quarter $XX As the received sold second excluded tax million. Albertsons and proceeds XXX our

and of Year-to-date, Albertsons we shares million of expect XX.X $XXX.X has opportunistic stock retain over a $XXX million. $XXX which investments value We million for of to and currently reduction. hold approximately monetized have million ACI debt

in during FFO. special which was The special a received of not we is the tax but As the income purposes. dividend quarter XXXX, million income, ordinary Albertsons first net from dividend considered reminder, included for $XXX.X Albertsons,

to paid continue the Board team As to by the redistribution requirements, and needed dividend which will evaluate year-end. our maintain compliance such, to with amount stockholders special our the of be

consolidated Turning and metric X.Xx. to and quarter the debt we net basis, look-through the since second debt EBITDA this was the best with EBITDA of preferred Xx. net JV pro-rata than perpetual we ended first to outstanding, stock been less including level time The debt to sheet, a X.Xx. reporting XXXX balance began On it's

of billion liquidity, over XXX hand $X.X sector-leading liquidity full the and comprise credit in over immediate position very of Our cash remains involved on our strong with availability facility. million of of billion $X

In in addition, we million. value over have Albertsons the remaining $XXX shares

our on Albertsons $X.XX to all FFO from we first previous half of of previously are and monetization our remaining assumptions $X.XX, per we've to year, share shares solid expectations for $X.XX the range the the results, of guidance $X.XX the same. tightening our to the range Based again disclosed balance

And questions. with we that, are ready take your to

the our [Operator come begin question-and-answer ahead. Samir first Please question, now from will We ISI. Evercore we'll Khanal And Instructions]. go of session.

everyone. for the mark-to-market Bath. morning, Conor, Good Hey Bed mentioned you opportunities

get will the balance, and about that you I or required guess the be that are XX% required capital was number like the thinking CapEx it gave. the how you to think return? Thanks. involvement was I to you said

to Dave, and Yes, as chime happy in well. that can you take one

lower where you think which seen have box, whole be you box a it of have the you're improvement single tenant if obviously user users creates for very your I side if take to landlord a the you are taking were split bit quite an demand individual allowance situation, to box. and the ideal the work entire here, obviously tenant strong then

inventory. ahead I've Boxes. that continue Bed Yes, as through a mark-to-market we've of range work bit Obviously, we that of we seen the plus given little on the been one executed. that to you've on the XX% box Bath the

boxes that bucks cost it's right least, to deal around tracking the foot. around $XX, we've we've currently square historically XX.XXX the range the side our anchor on at we're ones with seen XX,XXX for line with Yes, executed of with ones and feet. is repositioning what $XX in That falling

with lows have and another go. but or there'll been related think seeing XX more we mind So far. that, I be in highs to to there'll be we've Obviously less what so

question comes from go The of of Jeff America. Spector next ahead. Bank Please

we more about, and you morning. little categories, you expansion bit saw provide Can know plans ‘XX and what about expansion seeing ‘XX? NERI, Good to we maybe regions, that Conor, Great. more about these retailers you are are you color? bit – talked talking you you continuing since plans. and pursue at talk a a Can ICSC

a drivers about broad you We the of We're now, now happy of when really in Bed right it's think great terms the have right retailers. that demand into base of inventory. pick boxes is to coming Bath to. Look, we're which best-in-class we experiencing the litter have

– are anchors of that a have nice to combination grocery have we We expand. think I looking a

look at Foods you whether Albertsons, continue the and ramping plans. if up to they Whole So traditional and specialty Joe's you've it's Trader Ahold, the grow expansion grocers, Kroger, grocers got with

sector to got You've got you've ethnic warring that And to the off-price expand. grocers for continuing continues space. be

combined the of banners. driver continuing Bath demand at being Maxx with some real TJ other other of a nice there aggressive That of auction the it's like incredible an space. that sporting space. for for Burlington the and banners, their categories and all combination of look is Bed with very really goods have things, their and to and anchor Ross we drivers course It

the high on occupancy the are and tremendous small a that seeing is encouraging of small continued the there, small I The U.S. all-time make retention we're shop heartbeat the business Because economy, of shops, think demand demand new sure that's our other about I of it piece think the leases to highs, very, robust quite overall to for I want pipeline and up economy. driving the forget very being you rates very don't if U.S. mention there. is building though near really

and So anchors it's shops. small a nice on both combination

next from of UBS. The go Please question Goldsmith comes Michael ahead.

Good question. a for taking morning. lot Thanks my

is about million hand, $XXX Albertsons think million As in of narrower the cash, opportunities we saying with more pricing. acquire like and there then that you it in $XXX have was thawing. to of in in that gap about you are What marketplace a are activity the Ross then what the marry capital sounds What you for kind sort there And in seeing catalysts out centers? sellers? the shares, much

cap you're So transactions that what's right the for for now, pursuing? the ballpark the rates

additional to seeing your happy mentioned we address as are that. activity I'm I the point, Sure. to in Yes, market.

are can more market, We're the caps some somewhat of still assets starting still have in has yield, many are the where a but higher trading, they hit which hit grocery bit but some in there's more miss that cases getting that that Now, terms to it see is strong the or larger are where them. the six and a maybe still in been you of quality. market bit market, assets demanding quality pricing a is and hit get ones little spread pretty that

the but the about have, redevelopment for taxes on address some a cash still to do we positive, ACI uses and well. net certain about the allocated cash want of the special We're that to have committed spend fully sales, dividends. talked that. of that do were uses the spread you that about We the as for acquisition of bit I talking million already we and sort $XXX

for So of of have already we we but unique while maintain our a level we're think side, spend, discipline. position a some is acquisition do position aggressive sort to the that that be strong that on capital still given in do cash earmarked pretty

Citi. of comes Please from go The Craig Mailman next question ahead.

the market, opportunities that and to color in of the where Thanks. on of finance Maybe seeing follow-up maybe side Ross, structured incremental side you're prior on the things. equity on question, in some acquisition just things, better

bit do that? teed Xx have above down? you and just reported you here fund $XXX little near ramp said that acquisition back to opportunity could back close term that leverage dispos And but million to you enough up kind acquisitions, have term? buying go an maybe to Is in or Northern do above the near in up that drift is there know million be the like were that then of guys I net a in You something $XXX a Virginia.

size The of pricing million some Sure. seeing to opportunity in mean on grocery Yes, of in million today portfolios. where think we're the the $XX larger from anchored the standpoint deal I $XX sort I asset single when spread is the pricing there is about be range us earning aggressively acquisition. as to get think to currently we And cash still a you for have, position about an are which X%, as needs that a ever. meaningful excited

going will both as year, believe to, side. to active not within and of investment that some well asset the the I'm as program this back specifically side, the the comment are do referring half about on I as mentioned, closings there that be we the you're we acquisition structured within but

next The Please Markets. from go Juan of BMO Capital ahead. question Sanabria comes

Hi, It's Bath if curious lumpiness for could just Eric auction, about you I same-store Bed understanding that and cadence at could year-over-year. on Juan. any stores good of talk post downtime NOI some morning. Thanks. just the was the create

Yes.

So again, guidance on side same at X%. we guidance, the to the X% same left NOI our

quarter were my the we at I as remarks, second in X.X%. mentioned prepared For

obviously will and got We with headwind little comfortable year. the that feel we the third very the with out of have in a Bath that put quarter. for But bit guidance the Bed overall we bankruptcies leases back the range we

converting. and and based varies of the the on filling conditions obviously back the boxes, the downtime Yes, use existing it with of type that on we're

line it but with as conversions more could nine go last that's XX our with less we've years. anywhere several activity traditionally anchor what it So closely or now are and monitoring months. Slightly in slightly the longer from to that measuring for more seen been complicated, at right the falling we've

Our go GS. Caitlin will from come question of next Please ahead. Burrows

debt that do this any have some you year you maturities, know significant I XXXX. but morning. Hi, good in have don't

preferreds in your if how wondering you year off talk was versus debt weighed cost unsecured maybe maturity. debt of second you that have you quarter the could today and I XX paying do XXXX about So

that. take I'll Sure,

We part have cash the the Again, under $XXX XXXX. just we of in have today. on bonds sheet maturing million of first balance

We be liquidity out obviously take with have the bonds intent would of year. the our before of revolver, to those lots our but end

XXX pricing, again have have somewhere probably is, around. pricing X.X%, X%. to would moved in range, that we tenure, X.X refinancing bonds moved about a the other the but you bonds In range, are it of you that rates and say yield quite coming are where on terms have bit, But effective relative keep about I are today, around of base off with X.X at know over the an

The Piper of next Alexander question comes Goldfarb from Please Sandler. ahead. go

out and a one on Hey. in the day we'll apartment Good morning touch naming The there, Conor see nice Connor Milton. The land. tower assumed

So Conor your small necessarily spoke specifically of per small the And for question about on insurance, for you the tenant, not opening. guys strength tenants. shop you; for but se, you

is Given all how been that you guys the property get as of this know a there not not that avail insurance headlines insurance rates tenants sure about, want business something and avail that a way interruption into business affects you lower But themselves of Kimco's we've is type pay you of, the to insurance. that tenants and wrapper result can reading in. or themselves smaller they would insurance play

scale. tenants that to help think about can Just size trying given you your and ways your

Clearly best a insurance looking what down Yes, be we're as would always Alex the this to a has low-cost overall market. been provider try as keep property challenge in and can. and costs and try I year we say is,

at we which a This do a we but tenants, we have together, of and through can us blanket our we us. minimize to overall rate that again, is rate blends the and that do can everything recovery that it avails pass does the a which help get. policy, try of we Now, think properties to look all

of it, look to to obviously we how a in that extremely benefit are your insurers the spot advantage, evolve to properties trying to individual to continue we've use lot. that price of of residential geographic really commercial the it, we've insurance unnoticed, benefit insurance talked diversity, because we out Obviously know I that how benefited market. and feeling whirlwind Yes, pass the strategic our a you there through side from that have the think pain, gone portfolio figure at as a goes commercial are has on us spread big do pain having feeling I and market about sometimes of allows know the where tremendous think on we pain. got that we've you you if though said in our our as well Glenn Even diversity tenant a one-off base. portfolio or The

from comes question St. next The Haendel

of go ahead. Mizuho, Juste please

go press this asset bit understand I morning and Hey, there. a questioning be line to rate. the sensitivity too Stone transaction to good X% cap kind reporting discuss the wanting out the but it wanted back I in Bridge specifically, of not of to rough. to a is

in market you a of bit terms for the where can you of be So talk cap assets quality would today rates buying. about is in interested the

you're higher then back thinking perhaps in there's perhaps the year. motivated And interest the discussed this to from transaction. specific this if for are selling of a cap sellers see And of now facing maybe to Thanks. and in perhaps would starting if that you some half about quarter, perhaps cap rate moving expectation versus lower the how the the the rates interest leading environment size, rates just higher larger of be here, rate seller something last X% more

to top bit their buyers, in size, financing, yield. a as you a into quite are start larger a that get little higher a there's ultimately think cut are bidders finance we were the of as contingencies, all can without that bit relying centers as that they format fewer which about that time some and upon When check larger still have earlier, range. check leads sub-six to cap that the bite grocery it's in aren't I size, neighborhood cash aggressively pricing Yes, chatting are

seeing to the a So able than plus $XXX better transaction of some yield million size, you are the smaller deal achieve size.

own classes, open fundamentals demand to bit When I owners raise of are continuing be of strong. air a good at to it, it's a it's noticed all In that are looking and really over lot terms asset of the of sellers, want really look of and shopping to And a compare capital. think buyers that centers. little really and our sellers but that you have in the to other we’re it lot institutions the And a that spot. dynamic they product map,

a place good shopping low were value sell cap to really able us be of where particularly in that so to those never couple in to strong maintain we've It's still and other sector pricing, open-sir extremely relatively sectors, really our last centers, this centers gotten the acquired for years, rates like well. some maintained

comes The Point, from Dijkum next please van Compass question of Floris go ahead.

keeps I to general little wanted can some to where you -- seems occupancy third have supply higher give There Maybe in bit here. a Thanks. comments on going think on maybe in could retail. little down going be term to trend. you Obviously, near more quarter. Conor, the you expand go very occupancy if it's

But your portfolio Bath back. you this your spaces much to your view, use occupancy forward going your Bed going mixed do and position how in get because You've you into does the levels occupancy on how a boost beyond you're push push of indicated how peak company can also basis. help and

that take to one happy Floris. Sure,

we certain we we haven't of footage and of have sort of large demand had about been before of size had know it We've virtually junior small square into I think last sizes a really different anchors, multiple anchors, where phase at you you really we across the XX supply. this where in specific haven't of because get box started of for retail, that we're new new the excited terms where in we've I enter today, it a that's but drivers have, to breadth paradigm the boxes, look no had potential when years board for retail, at demand the future shops, mid-size in and categories. we've

Tenant benefit convenience well grow and new into to tenants and well. all space, demand health the value, about as as that to starting it's the starting center shopping we're get whether mall and demand wellness drivers, are medical, coming continues to anticipate and as it's net

are as to handful, that and now occur to traction to retailers plays. multiple they Because mall where locate with you're but looking works gain and as consumer just a So seeing started starting snowball it their well. to originally effect closer lives starting are

looking And so to significant we quarter. of tremendous demand activity mentioned where on we're Kimco where shops we've part about past, versus forward. the The the think think we But evolving. I when a you like all-time back in will about I that's you're back yes, look inventory Bed I some sit the feel get in the occupancy nice think is, third high I do And and as spaces. But that's to that all-time and encouraging. see are before, I breadth got depth small really those going continue see upside our and high Bath of

all base vice this that and use the the and sudden to mix multi-category got dynamic to significant of that amenity a versa. center rents is shopping multi-use, providing, a the apartment and you've you component and driving upside is center shopping add The is where

are retail. base driving The apartments, your built-in to consumer sales the

years original thesis program when that just a us we fruit. use And there this mixed so was we're that focused is and harmonious few our continues mixed the started obviously ago, bear to And And on use experiencing. for is apartments. effect it

We have each retail of the really the NOI from thriving office. apartments off no of the other. like We coming percentage of and combination

comes Scotiabank. next Greg go Please ahead. from The question McGinniss of

morning. good Hey,

year What of lease regarding you tenant expect the through of fully boxes? end? those are Bed all to do credit over units boxes, will debt thinking So and given expectations Bath those how events long guidance types are the you it level and expense tenants taking take Tuesday how to-date morning bad and about

Sure.

XX leaves three That Bath We picked So as we seven right leased now, auctions. that up the then XX. had through were two that mentioned Bed and resolved. on were have boxes we the

currently also We activity mentioned have. that the we earlier

around Bath leases have the with locations LOIs. Bed We have in existing seven we process and number of a

trying feel to this year through position XX% exceed to in a as pretty terms getting at as of balance we end plus obviously push and far we least the can So we're of obviously in year. like by good resolved that

we the up vacates relates We'll one were other regard. have picked QX. that active which it vacated to As that assignment XX of in one QX. Three mornings, in in that by Tuesday below five we're very have and

have midsize have world, looking tenants of those two of that at, you ends other So pursuing others and a lot are box the are boxes. you that far currently those

the I standpoint, from a So we very on good that that we're to looking currently an through think pace balance maintain and we're absorption have year. of that the

it, towards to our credit that to XX vacancies. keep range, the lost though basis loss around XXX range. it six is end points. the rent lower to guidance so unbudgeted Through our relates component points, really mind basis for important does As some potential the just the of account from we're is It in it’s it again, to months XX

we've built So again, the of with range we year. we've current that remain the kind the put that guidance into comfortable and for out guidance

next of go Powell question The comes from Anthony Barclays. ahead. Please

guess to on optimal XXX which it's the but have rent I for that? should to is quarters? you sign going as have go opening these up the back Hi, signing morning. But good few a basis and question points. number commence the from in trends new start the store guessing leases pipeline, down whatnot. and in few lease, now when I not how What's quarters coming evolved Bed a I'm past opening Bath

lease occupancy the loss obviously activity then and right. I mean expands also new so Yes, of through lease the occupancy, economic

are or it. metrics can that expand contract two the So those

Baths, the basis signed expansion in this offset So new total. have million $XX Bed vacancies in obviously by at addition of by that quarter, and some you openings were some were XXX offset points, of deals for

lease will economic anticipate fluctuate would term. in that near the the We

continue the be getting have other the Bed will sorry, stores, Bath XX we new go-forward basis well. this those as – on will impact rest so have to question? we that that open an of that As still But back quarter, number I'm a what's on

it will and When down optimal? what's the come

I Yes, mean.

on it in months. coming don't next down a for material anticipate So I the XX near basis term the

range. that the gap I was would prior XXX pandemic, historically the to just running low XXX add, high snow in

openings the lease that continue start up, point. continue to to see catch So again, to at and it as down come further we you'll up

little it down which RCD has think Conor past, it that the his to of tracking come we’ve script decline we've because bit execution the what well. have your pretty anecdotally a that issues, seen supply is shared two part and etcetera. around other in RCD last question, – was the Sorry, I a was We're X%, contrary over to issues, years dates. the execution in of the permitting chain of mentioned

ones that volume more the all to of challenged at when it to seen through, average improvements. pool looked realize regular activity, of you on a we I tend we've our we think activity together when So when are the net-net total of the have you but get basis, modest you focus population that on actually

the team, that's place. in attributed I tenants, that the with on obviously the and there and to plans in the permits hugely tenant out market the think getting early working coordinators their are constantly in construction teams process the

those possible use working permits with tenants as downtime. to get or GC's to to really Working those soon materials the with equipment issued, the of order get open trying cities and materials construction, and collaboratively repurposing like HVAC to existing then as that the limit on

So drive net-net that's helping all here. a compilation that of really the of that's success

Fargo. The next ahead. Kesten Dori comes from of go Please question Wells

your rent leasing would today pushing? good and is increases Thanks, with negotiating tenants your else where morning. beyond team How leverage you currently describe prospective

low it Yes. I the leverage, and inventory. Very has years it's been think a several favor because – for supply. been obviously new over the the now of mean was of the I years COVID the originally in last development landlords limited it's theme

Bed that inventory opportunities tenants. it's creating Now are Bath for some

seeing Again to expand share, you're otherwise market that markets, their new the grow of centers earlier, so lot penetrate shopping tenants were occupancy wanting Conor a was into before you to as high. reachable alluded not because

a So us demand seeing you're which given favorable of obviously opportunities, come play, to into negotiate forces terms. enables those those lot

is the both do At parties. end really the we partnership a important. It which deal of a long-term day works that is for

them rents That opening for cost. open numbers. it's components So other out hit outside The theme to was it's growth team that for think obviously important that really came COVID. the of retail that do, of may not have tenants ensure we our a landlords is of important. Whereas resources tenant, had capability the available a which so I some to their

these the that of growth our So I and and a the with think seeing that's strength retailers. partnerships where have longer-term you're major we lot

around, that escalation. was the annual annual You're running seeing also improve. to Historically X% escalations now we're business seeing continue X%, and call it it on above

meaningful power landlord to shop that's shifting really side. pricing think I seeing So the small where the side on that a you're

of ahead. from Please comes question go Kamdem The next Morgan Stanley. Ronald

Hey.

of year. to breadcrumbs Just quick thinking same expense. store and interest on some as here we're sort about Trying next questions NOI get

So X.X%, in quarter. call it growth, the and you have rent minimum X%

XX tenants year, points, next watch about one. basis bad there's that given thinking on still we're to XXX list the some of really As the number the is is biggest delta, sort that debt

And interest little cost, the you a provide on can then more just comment. bit

capitalize about year, early well this refinancing ‘XX that interest. You as maturity as and talked

Just some of should we be maybe are things Thanks. the mindful what of?

I expense side say same a again, NOI more normalized is the on back level. would now Yes, debt question, that at bad

look versus will a we XXXX, on expense what when in growth. have debt within think occur that I at So NOI bad side same dramatic the XXXX what impact the not should happens probably

would activity we the the up potential lease on and lease I other there's situations if watch it. for the baseof think an that activity, then bankruptcy have have up impact to

we've As to it fair expense, again, continues the the relates off. to interest about talked amortization value market burn that

pricing that to bonds off. will bonds it'll about burn of next we to then of year next there's really less come the relative today. down another set $XX have the So million And the that

next goal year. for certainly to The expense expense outpace will do interest is operating higher we interest obviously portfolio the So be growth. the expect

there of really coming south because have to mixed-use a in changes then coming project And then this the it, the the service Milton and program. should in year capitalized Square as be redevelopment The on into that, modest side Suburban we interest we have apartment

Please Rojas of The comes Green Paulina Street. next question go ahead. from

Good morning.

investors. the you on transaction incremental provide you I'm asset color classes? in more good seeing shopping it's other any in please but increasing you're interest difficult institutional open-air bucket are sensing market? retail seeing to to this segments versus centers within their interest from Can if sure active for mentioned You the And say, topic? exposure In what particular,

capital I Yes, we've think coming together. continued formations see to

that You whether aligning compared intentions I ever are have some be the Again, with or basis wealth. to institutional as been. relative it strong States, classes, think on when are other capital, sovereign operators market a attractive as themselves open-air in asset today the it's shopping centers United in

REIT more a on business continue of some the consumer remaining the to the buyers and institutional I certain the quarter-over-quarter, capital see relates as to conviction the strong, the as a well of to open-air worries the extent and here. lot So it we fundamentals as our subsiding of our economy think macro private just to it to shopping side, peers center, gives and as

the relative no just It's a other capital. right pretty sure is so as it it of risk-adjusted of on of And again, there's basis return a good seeing feels And fair. shortage matter making that you're combination sectors, to a now.

go of Golladay Please next comes Baird. Wes ahead. The from question

by estimate anything end can for Do of everyone. a do the of the morning, dividend? there minimize you the year? an Is you it to have of Good cash leaving guys. Hey range special

income, to be. that a mix. at dividend variety we'll say have goes So flux $XXX received I overall the total that It's that to Albertsons better we're still in into amount evaluating the the the strategies handle by a of required. think cash Again, we much quarter look reduce will third level be on million would the of would from still try end taxable today. special where we

I to and a large. before call, somewhat. quarter payment it don't think end we'll I think that be made third get special the the on already will conference towards by But handle the good be able dividend end. have as will we it been mitigate that the of year the We've next

comes Truist. The Please go ahead. next from question of Steven Kim

Good thanks. morning. Hey,

a Just questions of on expenses. couple

First, year-to-date I'm with going points is element timing is on year, your ratio. What thoughts numbers to just going margins running curious timing that's element like are taxes, when you're that happening, at recovery on real-estate the about the on if, lower And last looks there's a there views basis I'm growth and to your ratio Bath not on kind year. this? you you. if but overall Bed it sure up. to Thank next pretty your compare XXX minimal. taxes of recovery back just a recovery

Kathleen. Steven. Sure, I'll take that. It's

at slight continue, anomalies no so our the on on expect that your we for do taxes, properties, we So, question estate and real trend that just seeing. year-to-year to see we're that do happen increases there see

insurance categories an prepared On the remarks, Glenn seeing to increasing. are in the his recovery that expense, due side, other mentioned are seeing are in as also we we and certain increase inflation,

seeing So is impacting of that recovery site ratio that you page. on that that are NOI same

will the continue to expenses, seeing. an we costs We are are inflationary our going on controllable and that anticipate impact to monitor do that have we that

go The next Tsai Please from question of Jefferies. comes ahead. Linda

to expect year-end, being the you moving given Tuesday just the about some boxes? you of And do then, the CapEx how occupancy end Where morning allocated Hi. pieces? think do Bed to Bath versus

headwind Bed Bath, not probably seen, as we we've XX-basis by you to small throughout a through Bath, the dip but in point mentioned and only very the other anticipate the slight know box we occupancy, It's having a QX. shop activity encouraged due mean, that of the I all activity we're activity. Bed but call,

can hard So levels have, do. our continue and job we is as to what the we we'll maintain to as push that's to

which CapEx back signed go that size allocation, we to of way since highest and leases all terms the anchor with volume. In mean you quarter, I have is this XXXX, XXXX the then XX to

boxes to more morning. basis on the there a So say anchor see Tuesday would go-forward that relative allocation towards you sizable obviously, a is

Mueller The question JPMorgan. of ahead. from Mike next Please comes go

we at how give little bit was you of Thanks. Investments you're looking thinking on can should wondering, just color types a I and economics? Structured about of the us be

Sure.

at real-estate, as quality the of it the the first looking Program, to quality of the and Investment the Structured the we're operator. as foremost, when well sponsor know, You comes and back

would put strayed not from financing. MES what So we we as acquisition really or to far all at look to acquire, would have look out criteria equity preferred of where to our we

approach. that staying disciplined with So we're very

the there nothing close that we we quarter, deals, some do this year of seen able back you've new be on. do didn't will opportunity any as other But target. in And we'll to the half because that think fit be the

of greater than expect in returns our to excess the the accretion of hopefully we standpoint. So upside double-digit that and investment some could that with from generate at cost a so continues participation be it's do But be able well capital, our pricing to nice minimum, it program will future. in a be an

today. program really that's way So that we're evaluating that the

component refusal too like on right-of-first again future The is other have the a nice we make acquisition investments pipeline. allow almost a it, which us preferred to equity have

of well. we the building to to Investment that love would assets Program it's us to in acquire XXX% those Structured the own allow So future as

question-and-answer This session. for like Bujnicki to to back concludes David any our I remarks. closing over the would turn conference

I'd you just the I hope like so of Thanks enjoy to today. us your for day. joining rest much. thank everybody

The and conference is you now disconnect. attending today's concluded. presentation Thank you for now may