Regency Centers (REG) 8 May 202020 Q1 Earnings call transcript

Greetings. Welcome to the Regency Centers First Quarter 2020 Earnings Call. At this time, all participants will be in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded.

turn Capital over Markets. I’ll Senior Laura time, President, Vice this the to conference Clark, At Ms. Clark, may you begin.

Good morning call. conference quarter XXXX and welcome to Regency’s first earnings

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

risks based materially a and the SEC. and with results are and financial business reminder, company’s the future and risks and today’s As Factors statements presentation filings to expectations These uncertainties. discussion included on are that about subject actual today current contains our our in to from forward-looking statements cause are management’s performance. on could these differ

measures which in all are earnings materials, discussion posted website. are quarter’s included measures. The non-GAAP contains financial today this of also our financial Investor on Relations GAAP The comparable

call COVID-XX turn priorities A Lisa, I regarding information in the and website. on Lisa? of our will key presentation the light will over COVID-XX pandemic. impacts is business address additional Regency’s posted to now updates providing who

Good you, everyone. Thank morning, Laura.

I I an you’re time. last could during And of that months with forget. of are will have you. experience couple challenging several know any have ever you been been that personally ever imagined, none have of well. nor The all of this one us us hope impacted our thoughts

protect services. with for working also many drivers, essential healthcare courageously continue frontlines, the all All and the appreciation provide that us. workers, officials, on employees and provide serve, name to so country and delivery to of those many first businesses are with to safety thoughts responders, are more, goods and Our retail our of public the

properties the our been and pandemic, serve. dedicated members, our in the to During tenants has communities Regency wellbeing that of ensuring the people team this

appropriately to have work property to teams fortunate respond same place management continued have and asset teams allow At systems in remotely. requests. tenant and our the to to to are resources any the on-site We our time,

I’m tireless And Regency everyone of all management has of proud the performed extraordinarily work our thank how property responded. proud you. I at by of I’m especially teams.

build any positioned significant As positioned that companies a our are of Regency, of they will and are disruptions, strength at strategic through been our which never company can our have in Those disruption how and that people, have diligently withstand the challenges development to of strength sheet. our so unequaled we balance combination is you the emerge relevant successfully. critical. and a with advantages, to portfolio, beginning more our worked advantage program, adversity, have thoughtfully At than today, major well

Our anchored are on national improvement Home another than store that such convenience portfolio, the focus by and our portfolio More of neighborhood Walmart merchandiser drugstore mass Lowe’s a or Target, a include and Depot. as like store, community a a national of XX% a XX% value. shopping or grocery service, necessity, or with centers home

continue to surrounding local to tenants enabling teams, have provide with and country, our services throughout properties been vendors, goods neighborhoods diligently XX that and tenants the and open allowing to operating, I working all need. the remain Our the offices of our

pet in including fact, form, groceries, categories some such our approximately operate to tenants banks, in drugs, In will allow XX% us April, restaurants, as office of and supplies.

retail are that or credit many Burlington, other portfolio as and remainder providers many service anxious high to reopen. well best-in-class as our as quality by The such retailers, of occupied was TJX

this these move value over have provide and pause, our or benefit from developments structured long continue term. creation future forward We time, investment either projects redevelopments and optionality to to affording timing teams with high-quality talented financial also flexibility, positioning us of to the us pipeline to a during that for the

sheet balance of satisfy of our Regency’s one extremely to strength a managed maintaining in the strong our critical a low liquidity strategy low positioning highest sector, featuring level key This is is commitments, this not but Lastly, thoughtfully financial flow free ratio least, and the of advantages element of our cash leverage, and certainly with payout greatest importance. maturities. is intentional

may success Considering dividend the this approved payment current of of over behavior, retailer management be future possibility country carefully able of and given and per the position, the beyond the that economy, rate actual of benefit our to NOI. of the we our said, quarter, extent and collection the months, performance, rent Regency still solid financial and even opening our dividend the coming maintain will and the view That share. of $X.XXX full monitor our Board Board consumer at the results,

uncertainty to we major with expectations though recession position on in our strength the will when be outperformance. where with decisions the the future we related quarterly level deliberate. the for have have the achieving and portfolio, balance This preserving there future we a you from better including and that near-term strategic metrics very view decisions the even call dividends, sheet Regency’s to pandemic weigh objectives us the must, earnings recognize our and I be we concludes of still that best August, much liquidity sustained for we will of may financial to our and impacts emphasize resulting should want our And company.

will shopping this world. our current the of normal, us Regency the retailers bridge imagined None thrive crisis facing new successfully navigate will I’m even to that environment, weather challenges convinced and the country, have the business. But economy, also not this center only but the and post-pandemic firmly the could in in

position, Regency the to and convenience development My portfolio, our management and quality, liquidity asset that unparalleled value-add capabilities, our of advantages experienced In is high strength unwavering. sheet and balance the of confidence and belief back this, our focused goes has Jim? my necessity team strategic built: professionals.

Lisa. Thanks,

pandemic experiencing details I the quickly we impacts, the began. solid around it momentum Before important think before to the touch I COVID-XX quarter is get into on first were

growth and leasing base expectations. Quarter First exceeded our rent

tenants. have been a execute with able to situation, renewals clearly negotiate number the numerous has been over to still activity and are of months last leasing X While new impacted the we COVID by leases continuing

TJX, such pursue Target, tenants as as deals Wegmans and and medical uses Publix, anchor continue drugstores, new as Many time. during to this banks well

seeing activity We that pickup are we are increase in country. confident once we across shelter-in-place will leasing And are markets further those on relaxed. guidelines where the activity being already reopening have clarity

Lisa priority our communities. in the As asset our teams and to management of and our mentioned, properties, wellbeing maintaining the the customers members, top safety tenants, for be team continue

have of entirety the open for of pandemic. and our All properties operating been the

properties, on set assistant up of group management tenants well make able are includes website. access asset resources also our government safely addition reaching and that can X,XXX-plus other to each to regular apply has Site they continuing our tenant as tenants, In or assistance how out to and visits to as for to direction on-site programs. our leverage, our

further to recently that our Regency’s tenants We and providing tenants attended, information a plans businesses. on of hundreds safely successfully reopen their help webinar hosted

deemed for although the to As rate our days pro total April collection April. of our mandated month collections rata tenants to within see over at next of base the XX% restaurants, a from end those to rata our XX% of represent many of rent ABR half represents was begin are XX This approximately for ABR. were April, retailers to XX%. of nearly which approximately we be includes collected We XX% pro as reopen essential, which XX% anticipate of lifted. tenants plans of closures the closed, our implement

And other service little which a X/Xrd and annual finally, ABR categories, rate XX%. April collection of the for represents retail our over was

to to in our base. to the help we especially start reopening remain uncertainty period time, them marketplace those and extent of of and totally ongoing on early for potential in the working impacts, of future the that their Given deferral allowing on been with closed rebuild plans have tenants focus customer rent stages a retailers,

We recognize as success, our that has tied it always been, tenants. Regency is to

being with we their retailers, long-term of contractual objectives. to So and rights while work strategic aim our mindful understanding our needs

As and a our we to help environment. transition post-COVID mandates and are tenants into lifted centers began

adjustments hand signage the as customers. and buy teams social prohibiting they reminders, of such of facilitating operation areas, areas, are centers, installing distancing for to our Our areas make to until use safe common all prepared and sanitation adding deemed more the certain online pickup are

over various Mac? can disruptions help are properties successfully doing we to prepared Just as through and portfolio teams everything as well to possible. and navigated and equipped tenants has Regency quickly team our and our history, and recover cycles successfully as

Jim. Thanks,

customers, of changes well about We may the pipeline. we investment to given have in our as retailers disciplined through our to create realized continue confidence their current reevaluating necessary, the of prudent projected future each and of needs in-process projects to determine to our as value our said, potential the formats. think as is on long-term ability scope, modifications and That extensive design including if be importance and to We and timing it redevelopment. reassess the projects, environment, development

At but nearly million of remaining pandemic, onset projects. process, approximately had of $XXX future and the the XXXX, each in reevaluated timing invested. million we’ve the and of to Since end we diligently for scope of be these $XXX redevelopments developments

process, where are as in of result those as a those we city finish to nearly this complete, intend As on that construction obligations. projects lease we well have

complete to invest these We $XX approximately will projects. million

approximately to select investment without also impacts at at number of our This where $XXX able long-term us pause value in-process projects, we’re to a are allowed construction creation. point that a commitments. of material fortunate We million other defer experiencing was to of has selectively

including planned, as Village Hunter’s Point Tampa, essentially XX The costs Virginia. unchanged. Lake construction and are The continuing at projects the and in scope For in Fairfax,

The and in and as Public Clarendon direction. like started Center investment We Bay the Exchange most Carytown future Culver other construction. For appropriate determine projects A in Arlington. the in projects, we Square not providing Angeles in in Area, yet vertical Harvard Market Los Market phase on us Common intend flexibility our have Serramonte to we these Abbot Richmond,

activity We time phase more allow projects. study potentially to have these suspended and to for

tenancy, require and of given these material more the response like reconsideration of ongoing return COVID-XX of the investment, Investments on impact timing pandemic. scope,

update on to We certain will be our as as they revised soon more clear. you become plans

investment in better thoroughly while near-term position visibility commitments opportunities also to our our these cash of our start, free order best to optionality are near-term we flow. will pipeline, continue manage and to have We until reviewing preserving

a projects major UTC fortunate NOI is to Verde, Bethesda start centers, these plans. We incremental and to We maintain tenants. investment redevelopments to be This the the projects position owned from existing by these and that It’s timing market as our of the scope excited Square Westbard in existing we of our deferred important shopping timing Diego. a San our timing of the note were mitigated of when to and right. roster projects, ability in these are assess continue moving forward, Costa and of remain projects to such includes while is

understand time, that the continue these and investments by conviction long-term proven have exceptional strategy. Regency’s require afforded We locations. patience these of to same cornerstones opportunities investment creation at But X in value discipline, Mike? the

and start Mac, start to initial Thanks, our I’ll off good results year relative quarter were our for the good with we to morning, first expectations. everyone. where a

While of operating I full not indicative results, healthy. quite important do think to it’s expected environment was that the know year

receivables pandemic, for result a at However, negative of basis came open quarter after as reserving the in NOI the property growth points. for same XX

quarter As we earnings by call, for our did our move driven growth rate related on those bankruptcy last noted expectations. were better first but still underlying results than plan a outs, negative

as reserve for the less is collecting requires lease aware, we’re we of are entirety However, you receivables the many that probable. of than obligation GAAP any

pay tenants, tenants receivables local environment, emphasis tenants. tenants, rent, that reviewed and April Given with all all we current on the not watch-list restaurants, did non-essential

planned. approximately will as bad in Any same approximately and received. million. the non-cash the those property probable above million This a rent originally growth as certain of resulted than line the tenants amounts resulted standard, receivable expectations collectability of that we Relatedly, reversal straight charge by reserved, recognize the $X we was changing a also are what and debt the for of in the required was related in $X.X quarter less income

collectable to the continue will our situation We uncollectible lease or as current evolves. evaluate income reserves,

and balance our the position. sheet to liquidity Now

of access flexibility highlighted to have in well-laddered flow, to to to balance committed low sheet profile set rigorous maximizing levels strength risk. reduce liquidity years, the our cash to maturity free leverage, needs, by we and maintain principles of meet a and Over a order

positioned from we As and a this from ongoing standpoint, response crisis. liquidity impacts towards the to the mitigating as health are very well sheet result, balance a pivot we

total combined credit liquidity facility. our During our we drawing billion. on of equity the cash when provides solidify forward capacity, proceeds aggregated offering that to position, further several a steps down balance closed quarter, including when revolving actions, undrawn the during positioned property sale approximately $XXX which quarter, and with Regency settling of our with million, took These with $X.X

level position, While including managing dividend liquidity spend, future development and property protecting requirements, Lisa. as by payments, as and capital earlier our G&A as enhancing mentioned well also carefully expenditures, we’re all

monitor response amplify Importantly, our said, future our will ongoing liquidity what and the to on be our forecasts. with of and dividends position, and our will cash our to closely subject impact Lisa we flows, income the taxable ongoing pandemic leverage ratios comfort

Lastly, as COVID-XX extreme previously of announced, guidance the situation. we XXXX uncertainties we due our of impact the to withdrew the

warranted. changing guidance we that to information we clarity around possible. forward end, need for the look we to business. are mid-quarter impacts and transparent material in We and providing when will environment provide as committed to We have greater business in if this the reopening our To again, rapidly and timely March, being did understand as updates, as

now remarks. And our concludes That welcome your questions. prepared we

we’ll Thank time, a now conducting At this [Operator Thank you. be question-and-answer Instructions] session. you.

is your question. proceed Citi. line first question McElroy Christy with Our Please of from with

spend Thank the to of sort you remarks. up extending pipeline, that projects question just pushing and scope construction now thinking the is you. potentially those of about out and assuming following projections? revisit reduce permanently of CapEx, reduce and that’s $XXX on opening those pausing for will pipeline the you’re to just for extent that your and deferring spend just plan million of first morning. Mac, and My Good In that some what understanding

that have productions? should the yield expect removed impact you’ve ultimately? these What And those of given some and yield interruptions productions delays will on we

bit but clear, revisit a to and these It’s to very say continually. still that I’d as morning. with soon And little will to stop. back come more reassess do if not tenancy, as elect process. pause, the timing, And you has Thanks, pipeline when scope, we it’s to Christy. And early some, becomes and in we’re so these going ROI, that we’ll say mentioned, projects. visibility online. to too projects Good

we projects. terrific in And projects. be this point, concept. But very much and these the I believe they’re term, in the long to think think at locations We believe we going

So we just projects. little to at more take this point, time study a these need to

we’ll can’t this and you constantly lot revisiting I but those, clarity give know whole we’re point, a more at more. So

sure As to the be quarters come by update everybody. we’ll

is Okay, second question for Mike.

cash ABR as to you of accounting conservative more started bit can how of you’ll already in color for convert you be further You’ve leases. process this think evaluating environment. little QX? a obviously, collectability of percentage did become, this the your maybe XQ approaching your to on as more What basis you in And the provide about

Hey, question. Christy, you the good morning. Thank for

were the at a I first your of question, point much end of quarter using to books was our respond profitability. we about to reaction think it’s cash receivables at did inform convert part basis too you the to did and how really early to time, the those our What assessment health of little that crisis on to in April the your that

has collections of tenants March. our for as of probability our a simply, was of it decreased segment So certain

where think lot there’s will question determined relevancy quarter, of play. And to come still move into we there. I into a the the be that’s As second your

to we we as modifications up, And revenue about they’re of the of As work and the progress how us tenants opening necessary, inform on standard work with applies to will the lease the discussions. we through extent context our agreements those of those think all as recognition.

on will hit And continue accrual of head, to the modifications you some nail in the result accounting. these

on investors be inform all can and we’ll And to going and of Some cash impact job you that and do stakeholders basis. will best we the into our forward. converted it’s in us, possibly

helpful. be Thank you. will That

question. from Please proceed Greg Scotiabank. the is McGinnis with question line next your of with The

everyone. Hey,

to thus fallout. few mitigate restaurants. your due taking the reports a how So of dire to try year, and the evolved to specialty apparel, retailers steps primarily, on what through potential just what seen fallout potential the has been you’re pandemic I’ve watch-list and this bankruptcies in exposure somewhat any retail, I’m curious far your pandemic, have

a Hey, fact, I the nothing’s of been. really level, X% broken of with sorry, less our been It’s sizing high to it too really, – of as to watch-list a our tell. a our is bit it in ABR, Greg. respect record than watch-list. Good The early on little has about is morning. think, from changed I’m And maybe same identified.

and in some could that anticipate our we filings? significance think I that just environment result don’t time. occurring in failures Absolutely. an yet. in some amount there resulted And any Do be acceleration in bankruptcy of tenant added that. we to This this and But is has situation will certainly that haven’t watch-list

we it’s the of that we add, real world like would I neighborhoods, shopping think I grocery to quality post-pandemic It’s we that retailers even the be, operate need. Whatever of looks part to having think something and to retail they about close true think that was positioned. as physical I still and And estate. that have centers our in, think focus I are as estate presence, it’s anchored And real going that more pre-COVID. on true I I like, best continue the post-COVID, fact which I think, certainly

physical critical And cost has them. And to that of picking if going delivering strategy is and to their presence close best be in difficulties overall is that of having the to critical up, as of and be the anything, to perhaps locations the part customer. of importance and some highlighted going really being the of this

then me and been them those in I the step much do Or guys you have rents? Right, then, loan? benefit side? more is need use mean, your help And And that’s you Paycheck and rent keeping it they on fair. so from to tenants pay getting successful folks Protection to funds? Lisa, seeing plan are employed may just in

this. opportunity shout the – me property is to dig ultimately – give responsibility team, this has provides management I’ll this going to our Jim into really let really out to I’m But Jim for. another which

get So into allow details. to him the

has don’t capital done, tenants let our local and start staying those in talk the really that. markets touch this? so, really Jim with particularly Jim of all the that tirelessly I’ll worked has them – since tenants But let And bridge to team to I’ll access our pandemic, have this I to of through

Okay.

forms hosted educating Yeah, fill obviously really of for some sharing a in of assistance. Greg, tenants lot We the instances helping we’ve physically local the information, some application time spent and webinars. out

So I those get good programs. that, helping job to think we’ve a done of folks access local pretty

– the And tell folks April, benefit a I you they there say paid access from of can’t due several that have I will basically had those of fact exactly have But able tenants spots. what ratio their to were the that in that that program. rent been to

indication that So that there is has worked.

they get answer may – require will deeper tenants, conversations with far certainly play the come reopen. into we evaluate we into the to how we that needs as that additional as As

Thanks, All Jim. right.

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

Thank opening as acceptance and just of has non-essential open, in in these retailers markets shopping? your you. I tenants of are consumer the terms lifted the wondering, more some can been what discretionary mandates of

are very, customers give customers Number for some in to I our retailers with opening. field. hearing they ensuring it’s have make folks are X one, all the feel returning safe I to. very a the focused and that to you can Craig, if what limited, environment return led obviously will, charge on the very, we’re sure of trying but very kind safe their think Texas to work, very welcoming you the early. May are from

the back. customers to top everybody’s sure feel of mind, So coming about good make

is perspective, XX% folks, more – make from right general think a our for in-room where bring folks with they is XX% sense it sticking occupancy, full make have to there just profitable more I that their we that, service online are go for and because now, waiting impression them. full now are dining in occupancy. would What may guys is back to the say, service I restaurant seen right

have and here people Jersey spacing That’s And BurgerFi, Mike’s of kind kind seen has far. up. we’ve inside. of good They’ve that They’ve taking it in advantage. got the opened so not to town are some and got folks customer great say those they the where embraced of that

the the the again some That Atlanta, in when door. one dental: door, thing the back is Obviously, imagine, But cautious, number protocols, would pretty bouncing they’re up, the can say quickly. some opened one we instituting waiting so that’s lines, as literally I slow category And pretty Medical, back was, popped out they’re of noticed room you salons were reopening. what out chairs. quickly.

gyms they waiting bit seen consumer and cautious, green I’ve is, this really got The And have to confidence given got we so now a They’ve right when come place. the to a to think, for were light. the of out, that’s of they’re in frankly, I far. going sure they’ve is all Quite really in real Atlanta correct little make good got program. taking consumer approach what about in kind protocols be a for to Again, all back. seen key we’ve what come

to interesting It’s great. lie. That’s the where priorities see

other one wondering of negotiations liberal program I somewhat if public thing, relief rent rent any with tenant? more your was your informed deferral Just

answer, no. Short

in early As I the stages negotiation. of the remarks, indicated we’re in opening

certainly all. a approach We’re taking at blanket not

will and handled individually. Each We’re being targeted. strategic very tenant be thoughtful,

goods and ground possible. common soon is goal open our services retailers selling get as to to and negotiate Our as

our enjoy well platform, majority be Fortunately, our on want tenants of here. a the we perform assets and to high-quality and

and we’re think, I both worked anxious to very So us. get behind out this

been positive say And productive, in We frankly, any nice would possible, They want real line quickly in expectations. we’re get But quite document there’s through be a and, there. as And with I I trying conversations, to, expeditiously our so, right want negotiation. the negotiation. as now, are will say there. the to and data balance have them

detail. for that you Thank Bye.

Thank you, Craig.

Sood Deutsche the is Our with of your Bank. next proceed questions. Shivani Please line with from question

morning. good Hi,

pool third-party you Regency a of available history working with capital. capital the a So of has And wide have you guys. to team certainly guys

demand particularly given centers partners. utilization weeks, anchored conversations from recent these there just distribution weeks, some So there your centers trended as capital incremental of in recent of is just how and if grocery in curious have

appreciate Hey, morning. Shivani, I question. good the

– liquidity just We with start capital I’ll perspective. are from a

with some relationships, have, the country, in you capital. we access We’re as fortunate largest of And the to be CalPERS, CalSTRS, State of those to funds said, pension long-standing very in Oregon. partnered

partners team and as to plan Jim is cash work to his that the the And Our best operating with well our tenants, capital. to of and access to our to minimize income flow the ability. have disruption

partners our not And are with Our in see. that has been to approach. surprising agreement

I a product think that’s of a longstanding relationship between us.

been comforting. that’s So

think capital And there. space, I continues you’re think forward-looking have I’ve the opportunity our asking with consistently about our continuing more again, necessity-based partners, that capital private what interest grocery-anchored mentioned asked is of – I performance. historical Regency, type the investment our to interest our given product those in question. together in an alignment in markets. There is And be investing

better our So that, product prove time I’d this and been the – and say, retail no our I vision concept of with this the of there’s the the space, to agree And especially think in that needs. that as essential well. with country requirement than they partners future out is of and no now, believe relevancy the positive which

that appropriately changed of sized. actively And the own we portfolio looking venture capitalization as feel is we from our like We about with that to to this though, necessarily Regency’s still know increase know don’t that portfolio has changed. partners add joint strategy a share. result going that, I has aren’t to a And I environment. And our don’t our currently perspective forward plans

meetings, that, also as those relationships talk us important But and always we of – I many term. meetings, do our as we prior with them you think we’ve always And value have well long thought of partners. as one-on-one in about this it’s on calls heard

available And time while pay believe may, us future whether some sometime, thing And at that right in capital. for we holds would believe need the well by treating partners to might capital third I good future. off and quite that is, if I and think we your knows doing who to so be the needed we And party access their people what haven’t now, the we chose.

That’s in there And we if I hear. you. Thank guess, of should April, received if properties, aware great specific would debt the anything on then that revaluation in covenants, requirements XX% curious, be terms to any potentially rent is trigger or of mortgage there? the

Nothing communication though, be in of with mortgage all aware to No. of, holders. our been we’ve

closed $XXX action closings of million and actually it first extended a there past. on crisis. we’ve runs the Regency. to fact, a those maintaining that. our relationships, in at fact, to have us appreciate appreciate who Mumford, when, He and think many over in commitments the business year, speaks done the the an was up we value capital And them projects, to of mortgages has our this markets congratulate closing on quarter make that lenders, and I the Andrew opportunity remarkable created team, In our that into shutdown point we’ve not those to for health mortgage job, those in their relationships, living to do Again, I

product the type. importantly, And

the a this the by comforted day, durable loans lenders those And we’re highly these think asset understand into I that of quarter. close they’re end and productive at to grocery happy stores. class, getting highlighted

We week. quarter. this Not close this them

This week.

your for Thanks time.

the from line of Richard with proceed with comes Please question Hill your next Morgan The Stanley. question.

you Richard me. got for Kamdem X quick Hey, ones Hill. Ronald on for

first back going to the dividend one The just decision. is

everything you. things more comfortable the of X, sort the to I just read little really get what’s would what bit if going were what’s you like because, through of at the table. sort process knows you supposed the know, But don’t into that about seen I XX the think, months? over just to next nobody a worse, could happening, If think do But that thought X, happen – of we these as levels, felt to obviously, there, Thank on color are be that dividend having a sense Just off data? thought April scenarios get is things the decision? get trying maintained worse, that

would But this. something over could we’ve – in it to able we’re prepared said early is course, really sheet we that – disruptions. and early, in never situation of oftentimes withstand, what our be reiterate and quite imagine going objectives that will to again, strategic know that is recession Of ourselves And withstand XX it this it’s really that just balance some X, months. next like really and what in really X, intentionally that it’s the strengthened I don’t positioning our the back to the go to happen we just we next said the that be so And circumstances that positioned remarks. part I’m clearly we I’ll

But this ratios, said, really with payout that right. came into we low with

that believe, unknown, do XX%, Our low dividend. is us range. ratio to to that’s spend developments a current provides even ratio are very free – cash financial what much in maintain absolute us a that We payout some FFO low able the XX% because capital we on our that And – but and And afforded so there we our defer we in still be of we’ll is flow. more our level the then AFFO uncertainty flexibility. high work possibility payout of there’s the was

the don’t behaves, going critical And to it’s management to weigh we’re really And going strength important. do manage again, we our balance, I going in it critically be the if impact to the but best the second as as with open our the this said, mentioned even in, tenants. what part my our dividend. to And we in be close X in to and the such closely, monitor But this, a consumer of confidence because ourselves are go is the prepared again, quarter of a stay is And – big positioning we’re said, dividend were future and well will this can over to we to board I Jim achieve that have just they really and consumer success months. positioned achieve closely. paying that’s very how remarks, objectives close happens – can you going that strategic stores, will so paying it, that. – financial that objectives said consumer and we with ensure confident The to next to

those some and property to Helpful. of be in back was And much My assuming like be sort some corollary to question level collection second form, just is can question how things taxes, your that those of be can’t. right? breakeven sort of can much actually to probably deferred? can ways would rent expenses the how what utility maybe Thank provide to of on expenses, But deferred on of just color We’re you you. going expenses? cover

perspective, efficiency OpEx best-in-class operate Sure. shopping believe center best-in-class From at an we we a a rate. listen,

as the then all our on of and when approaching in you really So operating. – call, centers are of XX% we tenants mentioned open shopping over think, are our

will environment little result doing expenses, feel variable, we’re ourselves So at to when the although levels where than flexibility to we a property within what can. cash we’re a provide like we the Where fixed the some running that, you line slows that the about needle CapEx? the certainly operating move down, items to of they’re perspective. can leasing you from think and the savings extent can liquidity – we more on more enhance But

a to, there option items liquidity we’re the the we at considered manner, able – that I capital as Lisa to in development helped and we provided effect, our we standpoint, $XXX as confidence, property million, we And capital To really achieving roof think to the pipeline to mentioned, onetime respect with was as defer the isn’t dividend. felt have needle mover – the future, extent property that some that, were our our like repair, that we which we’re goals. the But lot with we safe from will. we And doing at speak. level, can level, that repair, in beyond that extent, parking the a

your Sorry. Breakeven of question. good second I’m Really sorry. part question.

So from capitals. And then XX%. roughly it’s about around on a – the collection capitals, XX% top before it’s breakeven after line to rent

transparency just want it. for thank That’s Got the to helpful. disclosures guys again provide. everything you you I and all and

it. you’re I We your think leading here. appreciate really peers

you. Thank

exceptional job we recognizing appreciate you an do and Kathryn that. and Laura

question. of Our RBC Please Hawthorne with next question your with comes proceed from Capital line the Brian Markets.

one long-term tenant adjusting mix you it’s balancing work that better strategy? tenants current for your will you a feel me. trying guys just them of – replace with some are versus if or Hi, How of to the kind

No.

I think the – question clear. yeah, wasn’t

Can you repeat it? Sorry.

see just get pre-pandemic? him at waiting asking, going changed the from balancing maybe you back that to that? space previous Or of that to are people and your kind are all Has you strategy, maybe you about tenant either were looking and of just How and were them? replace at were thinking Yeah, where that that some Sorry. how kind – mix I’m you the aren’t attractive adjusting now? ones

I asset Brian, proactive management. ourselves we in pride think, our

we’re merchandising. tenancy of heard you’ve as upgrade our trying constantly constantly our the We’re to say us quality

may So playbook, looking in this always we the I would have recapture to that. standard space, pandemic, do during but I More future. and potentially think, opportunity some remerchandise more to come, we’re to our it’s say

more anything – where tenants in particular, you’re of there industries than any or before? maybe interested any you were in kind remerchandising Is now

No.

would from I the think, the to pre-COVID kind stronger, be suspects to where retailers, have – planning frankly, opportunities space. list. be that’s on arise. are that the of expect That those – that would their talking better it’s watch kind we would the we’re known that quite of And eyes in spaces our

really tell could that’s on you I all that. So

mix, And This always that and I’m long-term. our Regency’s Jim our managing is an humble. ensuring you of of bit for going centers merchandising look that job if – evolution, you the our no positioning that’s is proactively doubt. and some evolving. – at mix, record, if say, Jim little has accelerate retail done – done said, the he were tenant track We’ve and we is to a because the as done right, I can not really, it. we’ve one exceptional being team

go, and that and really have working So It’s merchandising our users we’ve at optimal we to centers. come are an continually mix ensure had we users important.

Okay. Thank you for taking questions. my

Our of with Mike next your Please proceed question the is question. with from JPMorgan. line Mueller

Can a versus your about compared today small I government guess Hi. aside that how GFC? the this putting have talk time. you bit little shops exposure some you Yeah.

that since more talk I’m Jim sold, think And look have we just XX that to disciplined It oranges. that we than I made Regency the time we’re about to developing we significantly moves today – in and I happens, years was also, we let hold refocusing is XX, years to ago, versus lot going what at thinking – comp a – you it’s years of properties – what’s ago. the today, significant details. a And apples in terms really and development guess ago the that really But XX, would at happening much having just program XX XX versus building Regency different. rather sell. if properties Regency of only to want generally

much it And at do, a bit the level I and quality so numbers, rough I I was – a with I that when think talk higher of is than then. little and our tenant and think have the that today And certainly Jim more. base can

real In of I about Right a And good hard animal. to that our improved fell It’s what end quality in. portfolio. still base, fact, it. the feel shop but we’ve now, But in about overall be. really the of in quality top feel good we come the quality then. estate. I occupancy will there’s feel too feel occupancy, we our of we good a good lot one and which was tenant to And the that’s sector that so We of about GFC, this on even our different layer the about to the predict really then there’s XX% we more that, highest the operate the that XX% unknown. really of is sector’s much think really about And

you some then cash And pulled off it. line? look potentially you what repay triggers the the do forward of Got to

since was really Hey, think GFC, and response the of will pulling are potential will on about playbook – reaction very partners, the time, Mike, treasury’s good really out revolver. we a assessment little comfortable of a capital the that I point with economic that our feel us that we bit frankly, I our become crisis, and to we’ve think of a in line with lenders our dovetail to down the

markets to to time carry It it give sheet. that the So insurance see our portfolio. triggers say I being about are at are rather always maturity probably some what would financial debt the in we balance right looking on time, profile. than That a capital going now. more the same we’re those said, we is occurring At the policy inexpensive

limit recently determine looking track and And X can always live if no principles, – history of maturities very debt capital. perspective. maturities safety our think our that years annual set we’re that, show to from just to I we to XX% stretch be record would by we to a our is capital and total maintain our more see opportunistic specifically and out a one of built our than we of a X, which out

time, you we markets, XXXX, doing to and is So evolve our we’re forward, we’ll looking But feel have be day our taken be maturities, the see capital day to careful at nicely every as you same several in be a of it’s and of they markets of – the the last next presented. XXXX what capital this limited XXXX. Obviously, activity, over weeks. know. from – point XXXX at we’ve how We’ll is what the quite new And is monitor to can something mortgages very And kind already. many have be we’re that care aware, you to in opportunistic that target.

it. you. Got it. was That Thank

Our next question. from line is Floris with the Please proceed Point. question your van Dijkum of with Compass

a have But Good morning, guys. just Quick – a have – of broader been you. more I my guess, questions for question lot a answered. I

Given lot sitting this A that tremendous tenants sheet, liquidity. are your struggling. of you’re on Regency’s got balance this great

think, stick tenants $X that some particularly provide their well? knitting? – your Or Would to loans billion stick in to some of view tenants. the going Brookfield of some peers of announced to a to or that actually your you your Some pretty invest to fund your to I is retailers, – ones consider your in just to are of either you looking going – are investing you’re their

center. tenants the of we’re fabric it’s discussion appreciate of part Again, in of and do an – that our really the our retailers. with process many we’re our early are important We acknowledge

in – And it’s much right, uncertainty. It’s up, and behaves too are tenants on in – never. area. specifically now getting how on. a the and There what right much centers. team But them to anchor almost early we still of not they and upon focusing what And with the is them definitively. there’s to that’s depending consumer reopened focused it’s in I succeed. the never say, understanding team – and the restaurant working we the can some again, so order discussing so and surprise, open another be they – And answer specifically that how need to would and

Lisa. Thanks,

you. Thank

from & is of Jefferies with Tsai question. Please with The Company. line your proceed Linda next question the

Hi.

stat the I investor XX,XXX about past centers? that of you groceries industry Are XX,XXX. the magnitude there any on that thinking past the going – investor might of disruptors cited the maybe the potentially are presentation, think number shift fulfillment that in proliferation you in to How of micro now?

about saying actually investor the investor we grocery U.S. presentation, Not owned it. in you but Regency as XX,XXX sure in we probably was We shopping hypothetically other think if saying, traded ago. really estate. real lose peers an – were centers, were about we just, really talking at do are institutionally there and time we that print still best how that I a mean, an right. it’s stores well really on ever recall even That’s all calls in XX% And it about the that our of I publicly put And half to that number owned when were think to other the as reduce. – year

XXX-plus centers, anchored. And of think do stores. to which so gets somewhere XX% XXX the math, shopping grocery grocery If you I when Regency, of in you are that

this to still they’ve also do are that of the believe in out we what of guess, believe to plus actually They’re unverified terms right. going of doing we are rumors, to critically best is of even throughout is already, continue that I operate. the there to – some and even if a have terms best important, open XXX operators opened we’re And XX,XXX, – presence look a at Whole to continue though So they the the of store continuing pandemic. physical grocery buying be stores, Amazon Foods in going

quality real anchors, So future our quality changed fact outlook the our for the necessarily of the stores. that haven’t I we of think grocery that estate, our

Thanks.

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

Good you morning, provide already to this, Jim, what missed everyone. I’m I agreed percentage requests? did of ABR a deferral but if wonder you’ve sorry that

Chris, didn’t. no, I

– be this the I able said, road negotiation kind to you there’s like I of can We’re behind down us. as we’ll get some more we’re tell come we of early share in and And process. all to the more

Mike, that lender were guess not that you’ve to sort I I on sort COVID on impact whether is X miss Okay. incorporated or of And then underwriting there from to recently the as I of process? for One didn’t just want to their changes questions curious that. I you. make any the loans sure guess, closed it.

No, Chris.

living I commitments, and there no them related they up to their COVID – was for As we modification. said, applaud

thanks. last Mike. question, Okay, And

particularly we as Verde thinking provided, Just of that the Costa Westbard? should larger you how on numbers development have are point, to these de-leasing relates review projects this of it at about be and previously some some

as project Penney. to that I’m we expire But I sooner in that J. it’s termination. – going the had which example its an generally to than off to is is Westbard with and their think, was fact, specific. And hand C. actually Serramonte, Mac. and it to project going likely NOI occupancy a to I excluded maintain maybe already lease relatively negotiated think more

hand off he handle can Mac and disruption. I’ll to NOI So the that

Good Chris. morning,

continuing position order to to And to spaces. need what’s sure really these our that ability start. that, get is we in make to think tenant we have to we’re projects I important to do the

we so basis, these be But on So income. we timing that able is start should extend continue tenants maintain right, we’ll to a short-term when to these can the projects.

It gets tougher.

past. As we’ve be you the not unexpected. that’s to in That’s along, revealed what go

when worthwhile projects can, position but right. we’ll So the to we these best that’s hold to ourselves think to we start trade income a is the timing

it. Thank Appreciate you. great. Okay,

proceed of question Next you’re line the your from Fique Please Fargo. Tammi Wells questions. with is

Hi, morning. good

Chris’s know million of earlier? on closed negotiation, to were those guess, place negotiations taking just question Well, taking they – the on going I pre-COVID? guess, Just wondering those place back I I $XXX but were mortgages, recently,

Yeah.

Okay, so…

But retrades we no commitments importantly, Yeah, closed those were made institutions working from we or mean, into Tammi, those April. conditions. on I And into both pricing were deep pre-COVID. home. real

cap-rate anything just assessments LTVs the changes at or are point. or Okay. in an difficult lenders guess, to for else making this But, say I as it indicator that underlying

yes. point, this At

were we secure as are is there underwriting credit speak. think spreads that likely for ourselves. up changing we from know able to we And what I

just struck on to These We yet haven’t closing had prior been tested a already that deals crisis. been securing mortgage. new have the

what collections on seeing Okay, far May. wondering, what if I’m and you you I’m so projections are in you maybe touched thanks. rent And relative your can in what on this if sorry to May comment are already for you collected April?

May through, what mirrored sit And in as today, April. seeing we we’re in we collections experienced through in What is those have yesterday. fact, our here rates

just and how anticipate given to than we that, late did April, be the that potential timing don’t less they May. any Beyond Tammi, when of the have occur were coming to started expectations kind in of the into closures May March. We had

to would But this point. basis those April. We likelihood April mirror a seen thought we’ve collection a be a there rates day-to-day worse May was reasonable that on and chance than

said, a And going providing to think, committed surprise lower transparent than and they we’re still remain being That very updates. And may April. as at to settle I level well wouldn’t Mike us.

you we’ll we report, that that. that numbers we sure we when make to have with feel So good good provide

appreciate you’re particular any Are April And wondering collections definitely markets. seeing your of yeah, of I’m you pockets that. weakness? for seeing just Okay, the range across

really, No, there’s point. geographic Tammi, at this difference no real

we will it’s we think that interpolate. there open the same. to I markets, be kind right board, can some now start But across likely as data of

wondering quarter, last then you that thanks. that the goodwill question, All right, took impairment just just what And to. one was in the related

Hey, Tammi.

last saved the I’m just to best joking. You there. No,

merger on value. One. purchase back And back with the if understand the goes And at from is price it you books. accounting the Equity goodwill of an and is in you our to synergy the that the the So end about allocated have think why day, to way reflects time go goodwill standpoint,

it’s then, merger. platform. accounting Once company’s value that acquired into like to of goodwill And you get not then a get your estate And determine effectively It’s of is you But you the spreading the forced assets, literature not that companies that the then to assets with point synergy allocate assets. for forward. overly Regency. assessing the value from across now respect but real in you awkward bit technical, the to all your to that are goodwill, that impairment triggers you’re how

That’s in analysis, Really, of qualitative that impairment triggered the flow that a Then the reduction write-down in approach. into goodwill. was a you qualitative. And the was triggers that move crisis. of our with XX% is discounted quantitative onset it your rapid that which test original cash about a value share resulted

individual That merger Equity has synergy One. the with you of absorbed that synergy say bit awkward, I the value and is for where literature to Importantly, And force assets. estate exists. to respect with real a they been that still the value it’s therefore this reflect to in allocate goodwill to it is companies

Okay, thank you. helpful. That’s

Sure.

Thank you.

Thank you.

have [Operator this I’ll the over Instructions] Palmer Thank we for closing you. At time, Lisa to remarks. call additional no questions. turn

thank to quiet a outside little thank to I was want I’d frontline did through We the but Blue here window. Angels their time. my fly have workers. all our of want today, again it everyone for

also Mother’s Thanks So saluting happy again. I thank to weekend And to mothers. want Day for them hospitals. Jacksonville all the

concludes This teleconference. you. Thank today’s

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