Regency Centers (REG) 14 Feb 202019 Q4 Earnings call transcript

Greetings and welcome to the Regency Centers Corporation Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to introduce your host, Laura Clark, Senior Vice President of Capital Markets. Please go ahead.

Good morning and welcome to Regency��s fourth quarter 2019 earnings conference call.

and Lisa Financial and Investment Officer; Thompson, Operating are Mike Executive Officer; today and Chief Chief SVP Mas, Mac Officer; me Palmer, Chief President Officer; Jim Treasurer. Joining Leavitt, Chris Chandler, Chief

that with On important forward-looking statements risks cause today’s those to statements. could outcomes results Please and Such from risk materially filings performance, involve may future refer call, differ forward-looking to discuss the Actual those results statements. identify differ may in and contained we factors statements. SEC, forward-looking which uncertainties. expressed actual our in from the

We will certain measures. financial also reference non-GAAP

Relations a We and provided GAAP supplement, measures measures our reconciliation have Investor to financial their found comparable website. of these be which release earnings can in our on

be for the presentation will we a slide a call. utilizing of portion Today,

through You section presentation regencycenters.com. our in view slide can the webcast Lisa? link or website the the Investor at Relations of presentation

everyone. and more Mac good a walk Thanks, in before with Jim, through Laura. and start thoughts morning, had we ‘XX, the Overall, outlook year. and much in few I XXXX you a Good future will XXXX detail. Mike of a recap on

team in growth in million additions lower by most seventh high $XXX of year part exceeded of are operating accomplishments acquisitions our key opportunities, our ago. the some we of million the our funded We projects the redevelopment progress were substantial several at and notably on year portfolio guidance consecutive the quality from on unique have or leased. year X.X%, XX% from started The at represents of initial core acquisition our great in-process enhancing million adds properties to Specifically, ended of made developments were of Capitalized We sale $XXX development clear the projects; Pruneyard to This year visibility better; pipeline. the assets. over our and through grew XX% that completed earnings talented than and these by more approximately the growth future $XXX share end per for portfolio. which top our well-located, a

already one social of our funding demonstrated environmental, few. long GRESB and quality top inaugural in scores, and practices. of sheet, fifth country the We list responsible consecutive needs and finally, organizations The one further ISS, housing best-in-class for of our highlight balance here, Responsible the through accomplishments to recognition real a engagement the in We Companies as for governance recognized score employee from in to commitment a continued is to being way the just but list year, as improved Regency’s would XXXX. governance all XXXX companies those list I sector. XX Earning highest most Green the Star too being like the Most Newsweek’s solidifying impressive recognized leading estate receiving America’s

really exceed accomplishments, these yours, of did that While XXXX, for growth. we acknowledge we are proud and ours expectations we in specifically NOI both same-property disappointingly not

drove of us that we first expectations. discussed, it range. the end strong with our NOI the growth well important closures bankruptcies year to year as finished store velocity year leasing full have we that As as note same-property the original half really lower and our to leasing volumes of in is last But met

NOI quarter, Looking expect slightly and future, growth we flat last indicated we XXXX. to to same-property for as earnings the positive

are believe physical value on community service, into experiencing capabilities, neighborhood growth. with that Jim? locations will of our centers from leasing growth is our as healthy is exceptional line with demand our is of on retailers, both a beyond by translate truly redevelopment The for operators relative believe our the sheet, in is an muted demand combination provide below plus X% of experience. basis. We despite the bottom this deep for higher the that in and absolute progress unique many meeting among standards shopping reasonably that remain line quality XXXX, growth importance quality I’m we the in NOI earnings will to as management NOI again service objectives. and future to and a objectives will do be and temporary supported a categories Better providers, with that This plus centers. favorable environment together beyond, value-add Regency focused we confident these convenience, better with strategic pipeline. operating However, achieve our customers is Regency’s and our growth the restaurants challenges us sustained XXth XXXX to an team, and XXXX, that pipeline, leaders. look sector and performance position be development X% asset I on But strong XXXX portfolio, objectives we and soon return same-property balance of

the met allowing growth NOI in expectations, the full year full for strong line the for that to the expectations Same-property ended our with us Leasing finish at year. a very X.X%. finish year quarter was Lisa. fourth with Thanks,

fact, was past In quarter activity through the the our QX X highest in continue leasing this years XXXX. to anticipate and production new momentum single positive we leasing

leased, XX% at shops Our same-property over portfolio was with XX%.

did levels dressbarn in move experience out expected basis driven shop one of the our occupancy decline QX sector, points locations. the a the by of XX While maintains we of Regency in highest remaining

spaces. signed and teams Our on these active locations the been or have backfilling recaptured diligently leases all negotiations have currently on working

We XX% fourth the year achieved full solid contribute X.X%. which in over of of to rent quarter, spreads spreads

unlock though demand leases of top in rent closures achieved Kmart, rent leasing pipeline, even tenant XXXX, to continue retail creates and over short-term more it for that XX the our while business. bankruptcies of NOI, with experience half will same-property disruptions deep and been it for XXXX, We and roughly In has struggle. refresh Barneys to operators a continue of opportunities to regards result. is basis will of upgrade end location to weaker We growth growth possession but NOI points solid by steps In of month. at we we Sears opportunity our to us accounting in the Importantly, annual value. Manhattan, and the of be space, this failure they generate this that healthy impacted know than the on still store always vacating on And to notice executed of tenant be the allows merchandising part X%. the XX% the has average was given in and us quality

same-property this noted, approximately of growth. previously XX our points impact will bankruptcy As on an XXXX NOI have basis

possible, the space or plan value the the selling re-leasing whether is focused team maximizes asset. that property, be on Our the it redeveloping quickly as as

Moving note XX and with move-outs. XXX to from and This NOI bankruptcies from past basis anticipate unknown and impact up a in typical a expected XXXX, and same-property Sears, to we to closures. also of IPIC several additional Barneys, bankruptcy-related bad includes bps total is an debt years. known Please that XX up the points store to line our basis points remain

While that such retail is and shopping closures a as in retailers well Elm to as as and Trader landscape. for be of disproportionate Athleta. that of today’s continued Publix, H.E.B. earn Mac? country West These to and our like in centers, we thriving expanding around and critical provide store recognize we number elevated the neighborhood open-air their an including working retailers community retailers grocers are grocers, realized prospering success headlines, Sephora, what with Joe’s Wegmans, are high-quality number excited centers

Jim. Thanks,

projects objective our than the substantial strategic the During over $XXX developments progress more value-add to started meeting years. of make year, continue to redevelopments X towards complete of billion and and to we million $X.XX as billion next we $X.X start

professionals four Mellody Houston, Place Farm During the quarter, Village four in including Miami and ground-up are fourth in a impressive unequaled The Ballard suburban reflection speak our projects we our Chicago. developments, of platform. Seattle, and Riverstone in at breadth completed and to development in Pinecrest These talented Blocks

line projects projections. with these The centers initial and sales leased over Returns are on projections. XX% tenants well, performing with in their exceeding are many are

full approximately year, million excess the $XXX and of a at stabilized completed yield of we X%. in developments For redevelopments

plan, per pipeline future Our of our including an projects. several opportunities. of on major I’d steadily update these key to like redevelopments are provide advancing

office XX% is is building project start redevelopment Market at transformative in than This our as complete. framing Arlington. Let’s steel more constructed with Common

luxury We take tenants opening to spaces. anticipate remaining an year floors are and executed completion We negotiating building the with the fitness operator of with this of the later X first have lease for many in our construction users several XXXX. with

in Moving Abbot heart XX% smoothly, located on This in are Construction Harvard the started XXXX. project progressing is and Square approximately to complete. The we Cambridge. of in

the ground in users and We our retail floors of a floor have with upper are variety working tremendous for well. as space interest

opening tenants this with We expect first late year delivery in XXXX. the

Francisco. Serramonte our south X.X is just San Center located of miles Next

integrated phase in a of new announce quarter, three-phase the the restaurants our addition of consists to a of the a hotel fitness club, the excited This redevelopment. are We lease. fourth of Regal several a outparcel on insurer in with started and first new we ground theater relocated first the mall, new

leasing mall’s this enhancing commenced prior long January to a and should and that of in our The phase of the modernization already includes project velocity. interior second overdue season the is year’s complete holiday

the phase redevelopment in JCPenney arguably best we our June third get is the of box, is The which back space.

scenarios the estimated and in XXXX. evaluating is are reconfigure several start to We which space, to re-tenant

X in of offline approximately development. NOI Serramonte we we coming multi-Phase million As have XXXX discussed $X.X previously, this as will execute be at

some our first redevelopments, compelling known anticipate phase near-term of Westwood, this of this later located We starting year. as to Moving Bethesda. the project formerly Square, in Westbard first, mixed-use

additional in and a will subsequent center be relocate include XXX the previously of townhomes. for XXX feet of units assisted we’ve million coming disclosed, NOI current As approximately in an we square grocer. sale retail, million XXXX project XXX,XXX will of to our The years $X offline portion apartments, in of as living also and approximately XXX $X order demo

in follow retail co-investing for with We X developers project. leading X retail several non-retail XXXX, supermarket in Phase be Giant in and XXXX. this The floor open partnering Phase the will of multifamily should new should components ground and the

retail, dense of station Westfield growth. after best-in-class $X same-property These across offline Initial starting UTC in and in will approximately in endeavor demolition, in the hospitality, approximately support This opening we vibrant anticipate X occupancy with years of just the plus is our to X% expected objective our intend $X several few years long-term additional a office is are the We include over joint discussions office venture NOI deliver REIT. to NOI projected project Accordingly, redevelopment and Costa this new XXXX. the next prepare occur San teams Lastly, commence in infill million is mall this for we new and projects that of exciting are an located come property the as year market to to and mixed-use the XXXX. trolley begins. will million Verde, a Diego, and UTC construction XXXX. from of

to process advance. approximately Our X to both term, near value. XX as in in years with almost representing capitalized forward of projects, projects major you to these $X updates NOI of million generate billion look providing I the expected come, incremental incremental and further redevelopment are Mike?

I’d on and good Mac my same-property Thanks, through walking XXXX earnings by our everyone. like our comments to NOI outlook and focus morning guidance.

this will I with think help visuals the discussion.

and to is that start growth let’s the the up first of same-property be X you’ll Slide the slide website, materials as reminder can’t on I long-term our encourage make follow X% So NOI, package its quick This objective. those plus components I’m live that sure our presentation, helpful. a on find

increases continued contractual our annually. about of First, rent generate growth to X.XX% embedded

need of in rent formal redevelopment which over positive averages. together was recovery rental our rent of last mid comes spreads to through recent changes that on XX guidance with our flat understand would to same-property historical that and has another the with last this With XXXX confirmed And in as consider high our years. Next, growth to as increases well points impacts points like consistent rent income, positive XXX growth to to digits, which contribution several the averaged today. basis growth from the is paying to as NOI we occupancy with slightly walk rate single better lastly, were from call activity, our backdrop, basis I a previewed of XX outlook base

as is or in spreads from Let’s flat This rent with key impacted leaves embedded paying outlines drivers move assumptions contribution are guidance. objectives. of changes expectations to the certain how around this year. steps the growth Slide occupancy contributions X, rent by our line and rent key and better long-term in Contractual redevelopment which our

redevelopment closures; As activity; or we’ve to and around store key calls, in and first, discussed paying second, the by of impacted is bankruptcies tenant volume of downtime past on timing rent fallout leasing estimates from occupancy activity. expectations X forecast lastly, timing our embedded assumptions: sets due our our

impact unique will material perspective, IPIC feel bankruptcy Barneys, failures of the we a of Sears. certainly from First, and the

in included such the up include unknowns. same-property as we In and rent addition, cause points, to In paying on dressbarn, in have tenants activity occupancy a total, actual basis Pier have as past, which of other the could and bankruptcy drag these well Avenue as we growth provisions to potential of XX X for translates X.X%. approximately decline to as

Next to redevelopment, growth projects. of size previous especially on we given year-to-year, have can calls, contributions from the that NOI and know be discussed as uneven our we character to current

Westbard including XXXX, in and projects we bringing future growth been same approximately to are we While those $X.X completing and for as NOI and value time, such successful NOI taking million projects Square Serramonte have projects in the of incremental position at at offline creation. online,

result, essentially The and occupancy leasing redevelopment when a planning rent approximate which leasing paying on paying both of X we translates in commencement, the activity of In point our for component basis to volume occupancy net caused outside by on outs. a we a of activity, the and rent you and redevelopments, move-outs XXXX, projecting activity. timing from are XX are timing bankruptcy to rent consider the contribution basis driven XX impact the is final As and execution related an into average both point growth. up decline ins of

rent to items, and include property about for and other basis which drag points income level percentage a expect other expenses. we Lastly, XX

return results making XXXX, objective A big the leasing and most strategic or in prior we encouraged negative year couple redevelopments. growth, ability the including taking that over better by in projecting long-term, our X% of second is growth couple the of a same-property toward are as closures. strong a Lisa quarters, comments the as about on to and we are timing important, confidence explained, in our next we bankruptcy final visibility our beyond on thinking first to us by this half of progress goal rate And are this XXXX gives NOI first, same-property XXXX. look And growth our the of driven we step of

on – a now Slide Let’s I move XXXX guidance, will is well, of earnings items. to a will few roll our which forward X, I touch just where just

contribution given pool, project as to range from by $X.XX our be felt spirit, Our XXXX on is asset. call, X NOI non-same-property to in of NAREIT will non-same-property in a of Regency FFO moved Transparency XXXX, of the comes performance performance we per that also non-same-property total essentially only on of the the the share NOI and offline NOI $X guidance growth of size, minimal, following assets. million the and online have years about expected growth over The quickly, ground-up in is to disruption with our project, would back this is we Verde into and and inherent comes actively metrics pool when that de-lease indicated the of value portfolio, major $X.XX. remaining from both offset completion. our our its over coming NOI development as Costa due million And next like distort $XX previous occur scale an beginning materially as completions we

information disclosure Costa impact appropriately in the around to level of property find pools can in together our property with Verde, supplemental. additional You model changes the other

$XXX basis quarter, in providing our keeping a proceeds ATM. that a also sold at are settle while forward the to this leverage this outsized trade time were area of note our is Please through through time together September spend on our we that We equity development $XXX to year, now last spending targeted and million fund development remember third check, approximately any spend, can anticipate year. the good guidance and which with we starts million this development on

below market straight-line include approximately and rent decrease are items, to which million. expected $X primarily non-cash above Finally, by rent,

recognized the acceleration deceleration increased a has of balances in anchor of item. to reminder, related of few we This rate income market XXXX, move-outs this a line significant on rent the leases. As below following

are be And and in earnings measure eliminate core will and positive in anticipate slightly return operating guidance, per XXXX, to business lastly, while using which We we long-term. growth the our to we share flat continue remain performance over X% earnings non-cash certain confident to plus to ability but our non-recurring providing of FFO NAREIT we growth only the core operating to report items. earnings,

look ability to in remain shareholder or near questions. at our dividend return And is we and growth, turn, of is welcome the earnings your the sector. and remarks. all As forward, concludes continue extremely on objectives, the achieving that now we growth in to prepared team focused deliver confident our That top total our we

coming Our question Instructions] from [Operator Christine Citigroup. you. today Thank McElroy from first is

Your line is now live.

morning. on your in Good same-store XXXX about thanks. Lisa Hi, beyond. both that FFO X% in and mentioned sort X% NOI, getting growth back and Mike, to of prepared you remarks commenting

thinking paying to also XXXX likely of from contribution moving the then the but about I given experiencing from should XXXX us And bridge think rent that and of bankruptcies flattish elevated redevelopment the the all in pace same-store growth, a the of how spreads, be of sort in does move-outs of rent looking – XX be and the from how in a XXXX, got growth flat the could this recovery the occupancy what’s lot rent contribution point laid XXX contractual gap basis year? we you pieces sort XXXX. you’re to I to more if wondering the just you in you XXXX in have that am Mike expectations given sort are us those help out in now components.

Lisa. it’s Good Christy, morning. Hey,

with question answered question. I your think you just the

right, really those two, redevelopment. of the breakout sort it’s more last of Well, occupancy versus it’s

Yes, start done – it team so the have because with get to rent contractual really a we great do you steps. has continuing job –

right. are spreads healthy, really leasing Our

sure back and looking range So remarks, lot starting as going you X%. in have am we it XXXX of it to have magnitude the With on at more our I last formal meet we think, first prepared an in quarter going always that. said the to top Barneys unknown. paying to just and and those basis on perhaps were have large guidance make better are our not said, said we redevelopment in IPIC don’t been regards even – But be I we XXXX. add coming say are was that had of as – rare, like a those giving We that’s words not that have a certainly XXXX is really XX to And we XXXX do a Sears that of in really historically future, Hap’s execute heard certainly occupancy, even to more spaces. XXXX, expectations. contribution we as But visibility XXXX, of then the what have we or us point as prior rare in two the have and events because of confluence bankruptcies in see rent replicating

is redevelopment rent unknown about from contribution. paying really an certainly now, So, and so months uncertainty, more we but contractual is economic feel rent spreads lease occupancy steps, XX than good

spend $XXX Okay. you appreciate at that redevelopment think million and as are development And about use then which just we the and looking guidance. of sources I of capital,

of about, you of have with You a which generally $XXX but fund most basis, forward over-equitizing equity. are talked would you that have free the on of sort flow of that got also million cash leverage-neutral million $XXX

million that, a additional So leave of to wondering from that and all net year a perspective does sort dispositions end? causing raising you sort why impact where the of which of is your at top leverage capital FFO I am $XXX on dilutive of

guidance Hey, a dispo Christy, Mike. from Appreciate it’s the really ‘XX. carryover question. The is

funding acquisition. So The to this Pruneyard all in our effect, goes back plan for

would uses, debt level to we that million. balance there the overall by which about nailed you So reduce right what our $XXX is $XXX to in and I out are sources to planning XXXX say million

lower causing of there And the guidance, that’s sort is... expense interest Okay.

by in through driven together the Yes, that refinancings ventures we bond refinancings, well as going the executed on market. with lower as some we within interest ‘XX are the to accretive do in XXXX the is joint being accretive

Okay, you. thank

Thanks, Christy.

Thank you.

coming next Our from Yulico Nick is question from Scotiabank.

live. now line Your is

This guys help were QX, a new renewals. of spreads bit, seeing to want Could good this little in just in this leases spreads Hey, strong year from the and Greg XXXX? anticipate what I morning. able both is you with we in mean Nick. you have to I about about to spreads complete those on very healthier talk seen talk some and metrics boost deals quarter you that rent

is Greg. Jim. Yes, This

Kullen Roosevelt, mix had and or on anchor we Edge Publix, anchors strong quarter we as a on new noted, deals. leased good we pretty that and side. this heavy as King side. backbone really really of the it Kmart, and Fitness, you were fourth increase LA deals at and was Every new and the quarter real some and have anchor percent strong Fitness As renewal quarter accretive we pretty the very mark-to-market to look the heavy on help spreads all very, grocery well on the

pretty equates both objective I to be. rent long-term X.X%, are about those mid So that that our single-digit, of meets would strong straight we and and metrics spreads was pushing line that like still this that to growth a to think we quarter. high where But the overall, XX.X% target

on then transactions this & guidance, Thanks. that And to do to incremental count is year hoping basically, just clarity not use Town million left then Country Great. acquisition at and do some on this point dispositions, first well, so on – only as to much the $XXX left? so you grab purchases into

technicality a our of somewhat guidance. is in that yes, Greg, Hey,

have in ‘XX. we was So, Country, think & an Town into did been as entry show I the acquisition, initial – we that

hopefully, including property we additional of acquisition some to find in kind and effect that way XXXX. We not. have Town about in in are at thinking or And this this ‘XX then added is as a shares redevelopment – will throughout effect, of buy spend more I the in our final even In staged acquisitions hopefully & asset, piece not but that development Country. we am guidance them

– we progress early talk closing a on California and honestly, that our look to but diligence So, about forward XXXX. on potentially do that project part have about, Southern have a actually that in we are probably we contract deal, due under making too we in excited early of the to project

follow-up seeing that Okay, just are quick transactions, owned market there CapEx been you the the an terms you give start right then you of one bring update talking increasing other have is well? about that And high-quality of thanks. needs just can maybe are as that cap product a to rates on obviously, now, us in in there. But terms the market to more assets impact on mom-and-pop and what’s in

is this Mac. Greg,

seeing sort types typically that very we few buy of of of still the very on the – are market. We properties

comes are can it’s expertise scarcity the of and the are really that plus are that looking or traders find XX types Not kept moved in acquisition. to beyond lot everything in progress value core long-term either just in can for cap of long-term all has a growth low. market ones we just add some and in our we or market. but but nature a those, that time really by only seeing and to So, really the we a rates we our core see while. we well of markets somewhere where potential, growth platform a also have we use not The Cap quite our very do submarkets and rates haven’t

clarity. the for Thank Great.

you. Thank

Our Derek coming next from Deutsche Bank. question from Johnston is

Your line is now live.

Hi, good everyone. morning

a but are you mean, there or you I evaluating in So interest in to downtime space? committed into you project the the and Barneys associated unique, did redevelopment value CapEx been closer much guidance? lower the market, are carry has disposition baked as this the it is is possible weather to

would happy this Derek, answer be to that. I Mac. is

looking Definitely redevelop and considering are at could scenario. looking multi-tenant it are we scenarios. if in sale, to that single – tenant see to are it or when transact that we a really We three in scenario marketplace the is either are we

So we are marketplace the well. as in too

more sure we very as one are be that. to get limit communicate are not we will ourselves to of and all So, to viable going them. we And options clarity,

I we about and think well evaluating can is as the most us really time you value, matters are shareholders. returns important as as maximize to returns the thing how when are to we options our as well thinking

that’s value about maximize we can And the So, time? thinking of in really how are how shortest amount it. we

just tend mentioned an thank discussed Market relatively with how prospective this yield the Office Arlington, component for the still And make early. you. attainable tenants you that’s being Common Okay, compression project? And there, the yield on discussions in progressing? just office decisions tenants to wondering with are being out issue is X%

Derek, this is Mac again. We so. believe

actually very the Equinox, having and the up – really get floors to views that a upper the have well, to can see favorable, very We frame which you we there, the boost tours couldn’t have you the got that’s and big signed now product now back tenant that tremendous we completed. had gone until have

had have interest. great We

we interest to to communicate where will to time Now to as it start but convert we takes continue the we absorb. we on are feel leases, LOIs and good about prospects that into

one are guys X% Okay, that of leases towards the on escalators, holding this real end And the quickly year just they were on great. environment in north renewed think writing? you for new current of I leases, new last firm and is

again. Derek, Yes, Jim,

continue to success X% We increase over leases. in of good that have XX% embedding our in very

like to tack. can we that follow So, we continue feel

everyone. Thanks Okay.

you. Thank

coming is Capital Markets. Metz from question BMO next Jeremy Our from

live. now is line Your

just a Marissa Jeremy. Good more morning. in-depth to I for little on go This bit is wanted on acquisitions.

underwriting the mid-X% to keep cap in looking is paying And rate a in Specifically, what IRR, sort that also XX you all, how current the of for last months? XX the at if dynamics changed upside to are you environment? are

almost Mac does. compounded and you Hi, again just here. strong get get that the sometimes mid-Xs, like else And the bumps. in we growth to everyone a that IRR are product order need upside, paying upper Marissa, sometimes through tech XX-year it’s really we in Really, the they contractual underwrite mid-Xs, term X,

market under comes even are today. be And more lease they of XX-year of things could be that look the that the this. the upside often sorry, we due, doesn’t through some is second leases – and It mark-to-market those period, in finally is for. on there Sometimes anchor are there That an kinds could our in through up densification. XX-year show then

you look to in but neighborhoods, think up and physical the that upgrade, rents, improving so see for well. demographs also right in merchandising the are but as signed plant not We trending are the not today, where can demographics, in we leases only we that direction, and might the

haven’t that’s what looking IRR and for. – we Ours are material in change changed embedded obviously carefully for scrutinize We that. underwritten a are not very our our underwriting materially think we so to certainly we

I core think I haven’t the – it’s about compete think capabilities. in last just it redevelopment and a been Mac X able Mac’s mean talent we think over in to where successful are X add, would bring have that exactly if whether years. have you expertise, or been asset to out where if It’s acquired I other you when the the development right our the market. as we properties our we about buyers our and be really are we are we If quite proactive really even successful. with That’s down to as the there fairway management, shopping very center, mentioned, straight able that just

sometimes said. able into So we’re X% to IRRs, north to turn as that’s rates low these mid-X of why Mac cap

you. Great. Thank

Thank you.

from coming of Schmidt is Bank next Craig from Our question America.

now is live. line Your

against a sort given you’re by wondering ‘XX, which particularly shop the occupancy strong quarter, I leasing in small of small able year-end pickup anchor the leverage guys expect fourth was to can some shops? you in do you if

like seeing, leased I are I pick talked a ground. we We’ve feel Yes, We’ve the one about think, can at it. momentum point. here. had we up high, we some Jim that with Craig, think at XX%

So not could think back I’m around up I pick think got and going to this runway, get we’ve I we’re year. we some saying but some do there,

Yes.

point. that year in in representing seeing of make leasing percent But as the and leasing anticipating presented as some new basis what on are at trough leases, are anticipate just and will all new our XXXX. that I there, And spot our add occupancy leased is ramp move-out increasing activity. agree we a with be Let result me end materials, of importantly, commencing as signing a Jim, some in potentially this too. ground we well in completely that the that color to down we up from is activity, that’s in the leases of our forecast

long Okay. how the Thank you. Barneys make mean, may an that that sale, to I types isn’t long then of may how And assuming different – to take? tenants, there maybe, maybe redevelopment lease outright

years. be to certainly but a relatively multi-tenant it would probably estimate you be quick, reasonable tenant a Well, it’d a if basis, – scenario, single X.X went

Yes, add standpoint, and me let just from disclosure Craig. a

a As path and add if we get you’ll supplement forward the and timing. take, refine certainly our redevelopment, we between disclosure we’ll redevelopment is that better of move sale picture decision and that to

Okay, thank you.

Thank you.

Our next from question coming Rich Morgan Hill from is Stanley.

Your line is now live.

but quarter the could I in this bit guys. of little Hey move-out. far? sort prepared alluded wondering a on been move-outs updates just and was so last have to remarks, leases beginning you good We at And the trending more discussed how give morning if timing you of

I volatile the and kind move-outs be identified in perspective those that the ‘XX, But space IPIC, Barneys and – of shops, seeing pretty in I known ‘XX a plus to foot am and tenants reasons our and for in that a volume we’re going million ‘XX range, space, etcetera. and the we ‘XX is changing. given minus. And of anticipating of year-over-year is the that these square think see volume are it where consistent level think we on some or of don’t this number I in in to shop comments because anchor – From limit what can

a feet quality. these up about had meaningful the of replacing losing that’s transactions. we tenants say, merchandising over that think are period, that high-quality But X-year a We the X million making X-, new X-, one well. leases, and over we on and is improvement we’re move-outs. we And upgrading are we’re are we and already that very margin have tenant mix every leasing the we to And with would I as full, but we level that volume remain of activity the look of roster, while leasing on as signed with including you – new the leasing activity at our If margin, pipelines, obviously the anchors. replacing square

the the just bridge to it. NOI, on you helpful. very, for thank And Got helpful. that’s That’s very Lisa,

that’s So me. for it

Thank you.

Clark I find Laura to have to We be that be really it you goes a credit to same. say, appreciate to it on that. and we helpful tool, are all the finding

Thank you.

from is question coming from Wes next Golladay Capital RBC Markets. Our

live. now is line Your

morning good everyone. Hey

of shut rates rate that X.X% Regency at on and are sales planned the tier dispositions, a tier when for the for question of but dispositions. bottom the opportunistic I year, cap portfolio? to bottom year – has this every the portfolio, Is you your look strategy where more quick cap the now Just

X.X% going users. are Mac There is are year, And shopping guiding convert a selling, is Florida. bit they one and little the A cap buy because to user year one it. we’ve and property lower. office to centers This non-retail condominium the to here. this is scrape rate. going It’s that a the a in sold already other sold, normal assets. to really we’re development, basically X XXXX, One a about being is that’s Wes, property typical to one two we that’s the of is

non-strategic selling in the cap, the in those are – we’ve sort X.X% whittled have in assets rate isn’t go – that’s profiles. lower So the growth But properties markets what typically and down. typical makes typically a there down general, that’s and and those is cap we’re non-strategic income of

good Great, and quarter. thanks thank you for the

Yes.

we’re the generally, not kind will. of the pool, identified you – just changing if it’s of So disposition kind

you. Thank it. Got

coming Mueller is from next Mike from you Thank JPMorgan. our question

is now line live. Your

how of on XXXX, points much, if year-end, the XX% quick already A headwind any, – XX occupancy hi. potential basis Yes, was reflected level? that of for the in question

the commenced? In percent

or is it Is January anything already point there in Yes. X? starting that basis incremental all is XX on

No.

was already percent year-end, for the at like, commenced example, IPIC moved it in of had out. Some

you this percent basis at is year-end. get to occupancy XX not commenced I’d it’s all The So rent you a is back Mike, to number, But incremental rent average have offline. paying to come to paying year-over-year. citing you’re precise occupancy. clarity, Again, average just points for

some So there year from could tag be end. over

was Thank That you. it. helpful. that’s Okay,

you. Thank

Vince coming question Advisors. next from Our Tibone is Green Street from

is Your now live. line

on have over that? just core the given morning. the I a malls questions that not are curious on type. are or curious few and skinny, your on I’d the Hi hear your thoughts the be Serramonte good stabilized I’m selling to starting property project asset pretty consider redevelopment. obviously project, yields Did you

we And yields little a than one. take see. that’s The is Sure, I’ll for couple are of what lower this a Vince. This typically Mac. reasons.

turn, we see tenants very And long long done as in the are already well out we That’s time to the the The we been interior on of first But also hasn’t there a over extra will elected a actually a was very leased. realize that time. takes it because add help that actually are the the benefit relocate a the mall, which we to and that and operates them rent were We to new always energy, outdated, modernization of a well tenants better going is gym. because the location, the we mall pad to with interior help really they includes that. of to and a think loved theater. offering gym replace the them interior to hesitant it the is seeing tenants to also little worth even gym yield operate but performing that will traffic The this move and today. little It’s stand-alone. will all a mall this the have a mall better better to tenants, thought

time. to over which that the And So to term. third you’ll see is benefit JCPenney, then phase long start will take some the

different very still still it. evaluating. operating We very The is have we’re of on options location we’re mall property. lot comfortable We got a are that bullish the terrific, and

and really the some like it, have to long term. prospects now history We we

just a And is we’ve really got again, we it got a really Yes, to almost would as is community – we team center don’t I reiterate It value that. talents I apply But you’ve had harvested And mall some that a any asset and And in really own be It’s shopping well. value. there’s to it’s it asset. malls. center. we’re, And an still it, creating other high-quality opportunity a sense, of Yes. Daly applying can we’ve lot for our exceptional there. exceptional an and visit City. shopping the out to know from

makes sense. That’s Now really it helpful.

mid this box do am follow-up that, or that one how recapture did you up control that year? to quick have Just end you just pay getting I to curious, on JCPenney of

of fourth a was very end rents, that’s And kind quarter. to to is Yes, driving will we increase non-cash there in what May. write-off of think, of last below be that market JCPenney I JCPenney. rapid our make starting had payment – a small out,

Right. Got it.

So you just own that. clarify you always make bought but the the to I box, sure lease,

separate property, gives right. everything, we That’s that optionality And That’s right. pieces there’s – you that nothing and – that the whole of years. think over also entire there we no own is lots

great. you. Okay, Thank

from question Bin Kim SunTrust. Instructions] is from [Operator today Our you. Ki next coming Thank

Your is live. line now

morning. Good all. Thanks

declines. Sears some move-outs And So paying from the from points in IPIC, and the accounting guidance, XXXX occupancy basis have XXX Barneys, for others. you rent in known points your basis XX you commentary said there,

unknown mean points So that basis can to XX is future I take for that events?

because we’re about here make you occupancy talking there, Bin, growth. Ki I numbers I the want paying between were over said what declines right crossing and we to rent all breakdown impact to sure just and think same-property

XX points from to activity growth. right, the basis forecasting activity. from same-property points impact That category, decline translates bankruptcy an growth timing is another basis to of we of related then and So impact points basis occupancy leasing an That pay due rent occupancy are of XX basis rent and category. on bankruptcy the decline XX leasing paying same-property additional other on XXX activity points and to the

further that then our driving everything XX these Barneys, two of and segmented three XXX think kind IPIC is basis I basis numbers: categories, that and – materially we’ve points, is else basis and then points XX are Sears impact, that same-property down So breaking growth points. tenants is there

points, Xs around would an historically appropriate We speculative basis history, the basis our XX is we’re the in keep tenants, we we – And just let’s of dressbarn assumption XX that range a end It’s the points, a XX XX Bin. through by – upper and carrying digging Of half the basis be question. in we what of the level environment our XX identified that got supported and make that looking in recent XXXX, on that’s plan. of more So to And based – at prepared want here. is that, was and points Ki roughly it considering to in to plan. a that the other Pier here, experienced other sure have the just good remarks. to to identified we thought that that the we compares in,

you know the XX with And feel about what over, given you that you basis point, comfortable do your what have you rolling that, think tenants?

with Bin. Yes, Ki we feel comfortable that,

Okay. tenants And some how they guys go restructurings often are before preemptive with you trouble doing BK? rent

Ki Bin, this is Jim.

think our I’ve environment, dialogue, very But said in in the door real today’s lot estate. our as imagine, get to like you position, with knocks feel past, We is, the position of this question. our from we We’re the comfortable on real can asking I a our we general tenant estate. general in

re-merchandise. and better to real – it’s estate take sick your Sometimes tenants back

a reductions So it to when requests. of game comes hard rent kind pretty play those and we

general, that short-term but we hard make in instances, tenant will and determine the with working pretty evaluate capture with on on basis a reduction. a rent the sense, landlord Some we we might play most

you. thank Okay,

proactive management merchandising, so, of all job we long asset really time. do I – of part the myself On time. on the a good it a on if I’m same the really back. They I do that have say do and may their for the patting I’m the patting them mean not it’s and – of back. And changes we the just and – upgrading business.

on tag We to are that. just –

instance. We very dressbarns, are take for proactive the

things locations, and recapture. we an all think that opportunity have XX we’re And have basically, them we to QX. these got back just for, spoken so proactively are leasing We XX

we we So opportunity what because that’s set know the negotiation in can of part the looks be reason like. we know strong estate, pool the real our

you. Thank Alright.

Jefferies. Tsai is from question coming Linda next Our from

Your is line Please ahead. live. go now

and in the and new quarters? prior a elevated the Tenant these XX XX were the allowances will in What’s leases coming quarters. foot this quarters, a to past XX little up XQ on versus remain in XX two driving XQ increases in

Linda, it’s Jim.

the driven. I really – this was anchor quarter As this indicated, mix year

So in were of and merchandising board, number in that and day, in out operate the the but NOI really Fitness, reasons. costs it across backfills. spend. step Fitness, Edge But general the all they and one Obviously, was the great to continue that see mix, we’ll mostly day Talbots, think good tenants, of of end increases construction our to that capital really was XX% somewhere that the LA back is at look the spend, of the we when Marshalls, we between continue taking at the XX.X% quarter-over-quarter to NOI we XX% movements, XX.X% at end think to we

Will in opening sharing? Go. to details comfortable if are your see Amazon And a any store openings? you Whole any And so, XXXX grocery an properties of low-cost and Foods format then alternative store these as is Amazon

Just as this quarter, question about at talk that unable we we point. to last are answered anything

Thanks.

Thank you.

Securities. Capital Our next from Lucas One question Chris from is coming

live. line Your now is

Yes good morning everyone.

guys Have Just conversations there had you again. follow-up store with programs, a Serramonte, realignment at them about a store had shrinking Macy’s on the footprint your any disclosed Serramonte?

requested no, or they that Chris, they’re they with recently Mac. so, But unhappy store is this rent We given this that, new or all redevelopment. news front. especially relief that the like of in them talk have us time, to as part anything and no the indication haven’t

proactive more terms being to buy out? about of them in thoughts trying Any

with we opportunities We JCPenney are that, like always just like looking property. same on that accomplished for just

that an always option we explore. that’s So

then grocers or bit a exposure Lucky’s, close part Okay. – of Lucky’s. this a couple seen little regional Earth Fare, and/or Fare you’ve first of got stores Earth we’ve year, to of file and Fairway, And

thinking grocery forward? regional about to that the your of the Just player going about curious you’re thinking you cycle as sort tenancy point how vein sort how of are in and in this at

in quarter-after-quarter, as really operators, ability their balance and we the better point with to we’re to sheets, we Chris, aligning Generally view. sure speak us ourselves with back heard want reinvest that haven’t speaking, the our make really of changed you’ve strong with business.

have they are everything continually survive technology, of back ability at something and this in disappointing uphill especially mean are battle. able long in to ones to always in-store the And grocery. an innovate actually to it succeed be and retail are a have the as has as operators environment, competitive are in to retailer and the the see nimble have higher lives, And It’s business those that that’s facing looking with we’ve of the the as really all of more time. future. It’s part segment that the to but to certainly, company. been but happening long it continue leverage, world smaller in are as experience doesn’t operators that. that going be flexible, question. those better in to It ability for ultra people’s So reinvest dealt with thrive well been delivery, any that smaller we grocers going we’ve center business, retail impacts sell, and not regional, an it’s for shopping a the No and to is

Great, have thank all you. that’s morning. this I And

or end session. any comments. closing our like floor you. to further to the for over of question-and-answer I turn We reached Lisa would back Thank

you Madison, Thank next all. a happy and Just to month want in think, quick and time. Amy. very for to some see thank of all you the or your We’ll you, I so birthday Greg

does That you. Thank conclude teleconference. today’s

at lines you day. may your time your a participation today. and have You disconnect this for thank wonderful We