Regency Centers (REG) 6 Aug 212021 Q2 Earnings call transcript

Greetings, and welcome to Regency Centers Corporation Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Christy McElroy. Thank you.

You may begin.

to Second welcome Conference XXXX and Call. morning, Regency Quarter Centers' Earnings Good

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

our more reference website earnings this materials, additional comparable our XX-K disclosures measures uncertainties. various the may of contain in recent which market quarter's our Investor may our we could Form suggested discussion views and business It included have company's differ based and actual including materially Relations information, on COVID-XX detail guidance forward beliefs differ be our management's conditions. results that may business. also risks performance, to in These and posted specifically the reminder, in is are possible today, are the financial forward-looking about that earnings related presentation forward are presentation GAAP SEC, materially from and earnings future will statements those are described current may filings. statements and from are a on cause discussion the on risks Please in in forward-looking measures. with expectations to make. subject As included by note guidance actual results and The most additional a non-GAAP including website. today's posted that with impact we these Lisa? our financial we statements XX-Q Factors filings and financial the company's today of and to In and future on certain also

this joining thank you Christy. you, everyone, Good Thank us morning. for morning, and

most reflecting toward another restrictions has pleased capacity quarter The of across rise following of We tide report the country. to the strong removal progress results continued to recovery. are

is collections. of move-out fewer we've least Retailer in yet. Our And meaningful progress leasing our now not of to pre-COVID rent acknowledge and we're markets, foot therefore, on and, made lower than healthy. reflected woods This XXX% activity portfolio expected. traffic of are strong We is seeing in our at the back all out demand is we activity. we levels of completely tenant failures nearly that

rising the keenly as of we in many the cities are of We virus another wave all cases aware country across experience pandemic.

and additional restrictions return years, good X.X and we term New the in we storms. of the with last to ability some be and will knowledge mask we But we the of see even vaccine gained have with do long feel that are And weather we importantly, perhaps believe tenants term. capacity over stand risk restrictions emerging, experience our markets. and the if short that restrictions, about where impact that, new our

call, most and quarter's before, is evident of to tenants industry its last Our the portfolio shopping operate market Coast our discussed it proven recent the said will improvement were as have continue I've best specifically to say resiliency, opened the again, to this pivoting in allowed office. in world. we post-pandemic this Regency's and in as West all our center fully thrive the I'll finally in meaningful markets up. and assets months On

accretive acquiring low-cost path access in us balance on and to and in and capital our advantage sheet recovery, developing earnings basis. our competitive an We confident strong to a quality are give and

that track regard. have really a record in We successful

is might our demand. Bethesda, Westbard we with we multiphase Virginia, which project project experiencing Maryland, this I our started add existing so in tenant robust pivot, Richmond, and expanded And in

the also USAA XX% accretive on forward, this allocate a our we share basis capital during and investments. purchased partner's and operated known an remain raised future providing basis, Earlier equity assets Looking ATM our for a funding capacity have this on high-quality that in in as as our into to additional transaction great we excited XX about pipeline. We well quarter venture, we through encouraged additional joint opportunities opportunity for forward years. week, our

pursuing market, see evaluating high-quality even and however, appreciates capital acquisition community performance In active always, continue As investment these been for the to assets. transaction resiliency formation high-quality do today's grocery-anchored opportunities. we are greater There's demonstrated as deals. and targeting centers the neighborhood we of and in meaningful competition market

So of would continued our markets. cap you all expect, of seen compression result we've types rates for and target assets as as in a across these

Before to I'd take and extremely like to that's touch important a something I turn to Jim, to over me. on Regency it just moment to

second highlights leading of Corporate our ESG year Responsibility us the XXXX the which allows Report, us quarter release each was for showcase practices. to One of the the of our opportunity

are all environmental accomplishments governance pillars people, across our strategy, communities, of our We our stewardship. X of our proud and

issuance greenhouse and we of introduction the change great. targets executive and for responsibility evolve gas time. Jim? what implementation allow please doubt, on now community compensation; from the efforts the an well finally, is the several are pay of with the TCFD climate it's equity essentially personal was aspects foundation continue MAXI robust of our of And of reduction impressive over a more which a refreshment; we for makes and by in diversion. progress pandemic, as our ESG over engagement Strong really as our efficiency And recently ingrained philanthropic opportunity during last zero; these strategy; and challenging to So report X a increased improve recognized our professional; and were company. It's and look our me outperformance what team best is approach in energy metric to our our first culture. as and just highlights: of further on members share this corporate for in to risk; ICSC business, a all practices our environment awards; waste by highlights diversity tenant progress gender emissions, and gap us Board we And inclusion that this diversity, just no again, development report year. part

second and big rent leasing strengthening step convert were to by to good remain We during encouraged our activity. lifted, portfolio, another status. foot more operating We in morning, took trends and Lisa, operating our catalyst everyone. in collections continued improvement traffic, quarter including increased tenants Thanks, in rent providing as restrictions paying of many back recovery a many our more necessary the higher

and rewarding, While all realize sailing. we are the progress results clear very it's not

eating the Consumers resuming the vaccine more to fitness in monitor to and rising pandemic, and at continue earlier But normal geographies levels out available. now contrast stores, restaurants periods behaviors, working and shopping country. implementation vaccines clubs. mask of We are implication in COVID case of mandates around widely certain the of at are at

of an nearly resiliency in XXX% mid-July, in many now of all of foot at and And nearly tenants markets our traffic As are our of XX X.X have to environment, punches, of to years creativity or after XXXX learned demonstrating adapting evolving roll the this operating above normal. with levels.

again both Moving collections. at at improvement to regions point. XX% rent all in and this We July saw collections with QX

bucket Our shrink. to continues unresolved rent

tenants get them back fully been operating, have able rent get successfully As our to to been again. teams working paying have to

net strong basis is touch reduced up on. rates this But importantly, effective occupancy, sequentially and XXX previously, our commenced to rent also up discussed but move-outs reflecting occupancy we activity, I'll paying which leasing of over Our XX%. points ticked which quarter, more leased north

best recovery progress. is this believe of to continue our indicator the We

quarter, and strong leasing to to both vacant another leasing We are our working exceeding as demand renewal space accommodate XXXX get are seeing. teams also levels backfilled the new on tirelessly had we

harder We states including to regions, great the see are out hit pleased activity west. all across

restaurants, cosmetics. of the remainder the for health like healthy and athletic, categories look pet-related home, some fitness, in mall and tenants from year, and grocery, pipelines medical, leasing as wellness eyewear Our traditional active off-price, interest uses, with retailers such

we some impact material local rent from and Although activity all permitting timing. cost, labor at to municipalities, rising shortages continued is commencement pressure backlogs seeing strong, contributing on are

many staffing cost well fewer our pandemic-related we to in and in shortages in we rent areas pass tenants. businesses. are quarter operating making many in, with tenants sales bridge to course when the in to as our saw reflected these grocery they short-term we're restaurant We in able among that of growth consumers, also concessions But are the of experiencing higher second of their generally tenants. the that Our our as speak on improvement normal costs are inflationary trade we and strong especially hearing tenants pressures operate

and are We steps revenue to continue the cash over to closer historical growth levels. the above XX% our back lease. maximize spreads life of NOI and rent to embedded push rent our average GAAP XX% And

back we maintaining ramp on level remain of up, also leasing our spend. focused activities CapEx a As prudent

Lifetime. announce bringing take This extends lease-up office that commencement leased the and students and tours leases Boston to with Clarendon that building, lease Our square earlier-than-expected and At Loft providing signed health redevelopment seen to offices returning an date. process, a wellness ago our in rent we're also XX% and X-story and risk very new by with are a XXX,XXX component the X momentum in our market Cambridge, feet are signed we projects. will X% increase excited Abbot Arlington, Virginia, from we a restrictions in over in just Harvard. reducing to the activity returning we've over project employees co-working ground-up have to Massachusetts, crossing significant At development positive in redevelopment end club premier to leasing quarter of have now lifted,

mixed-use the second Westbard started Phase in quarter, Bethesda, our Maryland. of on in As project mentioned X our last we call,

The parking proceeds. net land include project million, will building of foot in will senior with cost XXX first structured of a developer being net project operator. new living for best-in-class podium-style Regency's developed XXX,XXX and square retail about this about housing phase with a phase sale units be this $XX giant-anchored senior partnership

had impacts hard far, of in but have we've very due and and we're good built part In large lot cost have work impacts happening. and progress And labor thus development by We're We to summary, the our in higher our underwriting field. seeing things leasing are made, we material some seeing the the our Mike? a rejections modest costs, escalations construction the teams to in been management, encouraged for the of that. trends minimal. from

morning, as Good for second the I'll Jim. year through moving everyone, portfolio and walk the in thank our full addressing us. as of then you results joining the and guidance parts begin Thanks, well quarter raise. transaction by JV capital and changes

lease million. Uncollectible in FFO million cash reserve than million tenants to items. collection by on income of by of approximately more was per with quarter of associated was helped Second quarter XXXX the $XX NAREIT several as the $X revenues close billings offset current were period positive reserves a share, $X $X.XX basis

this on our XX of can our of Page see supplemental. breakout the lease disclosure, COVID You uncollectible income

year we reserves during as previous exceeded XXXX of million full quarter you range end. while recall, As that may 'XX, about already collection guidance $XX our assumed have of

in the from better-than-anticipated first. Most outcome do That's quarter in process. rate expect recovery of benefited going We more to are higher also second following our basis recovery quarter. up rates We annual the seeing reconciliation back we from rate a our XX% in normal from the second XX% forward. on higher-than-expected our collection a revert to tenants importantly, cash levels

of close buyout time funding the partner's opportunities. to JV settle quarter, about equity at JV a effective $XX the $XX.XX During in roughly forward program of of at of view price The the balance raised ATM third capacity X. to equity USAA can million of our currently plan portfolio capital through completed interest the for the future August shares million before component average and recently per XXXX. on fund XX% We our as we any June of closed raise to settle remaining $XXX in an the our the quarter investment common basis of We share. buyout

unique X.X%. to a earnings-accretive on assets high-quality in was As was The Lisa opportunity mentioned, and basis. about a invest rate leverage-neutral this cap

the partial mortgage the of addition funding the income transaction received of upon debt and forward of our promote partner In $XX assumption to of JV. of million the ATM, the liquidation settlement includes share for

move you to full in guidance, larger earnings. our We've increase certainly to needle our slide resulting the they the website. to our year to meaningful posted Turning change expectations. the point movers another healthy continue right detail we most in XXXX. basis discussed midpoint, direction, deck was is And to previously in The to changes previously in earnings and we the our our this change, the at XXX same-property reconcile in NOI forecast to these that made forecast, for deck. increase components the of Of collection XXX an to up our of we slide in points attributable reserved rent basis our points

collected million another for the through have mentioned end year have quarter Of million Our $XX up the $XX is and $X from now forecast million, $XX as previously. million about earlier, July. recognized $XX million we I in

note activity, other tenants year higher through guidance progress current rates and XXX forecast, the which by from in basis raised expectations the the the tied promote balance year. basis of added collection and the improvement, of driven to lower supported move-out The the to transaction quarter the income portfolio second million NAREIT $XX cash is fundamental FFO points JV that the for will experienced Please increase quarter. by also we third be recognized reflecting our we've

include metric. in core not transactional income earnings this onetime will We our operating

have second we a in tenants While accrual with from of subset current that yet have cash expect year. the accounting not we are tenants to qualify our back basis of on moved basis, any remained to this rent evaluation continuing half and

range. this any a a on on guidance into rent have straight-line FFO, impact sheet remain revised balance positive we perspective, of While included have NAREIT and From our conversions we yet footing from a not movement visible leverage meaningfully. continues levels. to payout to without path solid dividend, our back reduced flows as cash ratio our Benefiting free grow on may pre-pandemic low having very continue our a

have no forward our from unsecured opportunistic. equity maturities be raise on full capacity XXXX capacity, revolver and sheet We balance until remaining debt cash to hand,

have for of recovery basis, it our continue rent back due on annualized to levels takes time NOI commence by year the an XXXX to to discussed expect on to space. previously, the backfilling end primarily As vacant we we next

the of to forward the vacancy, able to and trough taking we grow. reserved every rather we dollar shallower With higher recover from to continue absorb tenant, every paying and that look with So the which the rent can your are convert questions. that, the than level we we back will rent with to

Citi. Our [Operator Instructions] with McConnell from first question comes Katy

going provide wondering on if And can more how opportunities first, some then forward? about USAA background acquisition thinking about? So you're just how transaction the you came

ago. I The to Katy, obviously, too Mike. think They're forward not about I'll presented estate a real and USAA start, talk in of Lisa consortium this really was a jump long is mean, adviser. will transaction representing is opportunities. I itself, investors.

-- to a what and little give formed I that think they history, XXXX. was of you So JV in bit

to think that We've happy portfolio. that. fit that partner them best forward for happy portfolio, return. opportunity is you owned a good of buy option assets and with whether ready in transaction. very we XX were this likely high-quality as consortium advantage with if there take a to buyer. to And characterize these opportunity, about buying consistent for with crystallize them really them for the with to properties. was able So We your as the now, very first operated that. very in them as years single any And know JV, were were or And and very asset I'd They a extraordinarily move that nicely our well. we

not And talked improvement, much that, I'll the pivot a to And the to confidence. we just with successful $XXX clearer prepared talked excess we is low just continue And about balance to have and in offense, and when of access said had really just we take that I cash when months thinking the in track also cost we that acquiring, strong about and path turning great. of really think had forward, that back -- we record I continued we corner, we you my but see really free in other flow as which because that's have, the capital, really X about developing. a Katy, low-cost remarks, sheet to million,

low-cost always and access accretive to looking. continue capital have is we're to advantage capital that competitive going investments that using a So forward, to and

second for is on you on securing how Carytown Westbard retail where phase the then for far of Westbard, as And then And that you've on resi far maybe comment side, so for stand now as started can pre-leasing and going project, the partners? basis future the development Great. components? you the

our couple good marketplace, Carolina activity Texas and Yes, Katy, out North that take know, migrated I'll had days Taco deep. other of of and people really centers to it's some opening Jim. Torchy’s X leases, has in On XXX X names executed have in you We've of a first. Carytown may that

as people appears. it as Prospects, high-end the North jeweler Liquors much like executed most as ABC is in deal. barbecues, Lululemon. got iconic probably So like us Virginia they Richmond dialogue marketplace Carolina well tacos with in we've what the Also, as

that So we're flavor you tenants talking a gives of type the to of there.

very, a good we we've far dialogue received But Westbard, obviously. had very is We've ways construction. early, to got have marketplace. the as started confident in going expressed just interest. As we're But some that, be to very, some early with tenants feel very that that go. product very well We've

partners, we've this X for the continued dialogue point the been have agreements Phase finalizing on at and last engaged years, we're that to we towards folks with As X. some working with

question is Johnston from Deutsche with next Our Derek Bank.

gone with So how the get possible helpful. to given preparedness I that share sure are I'm from sense maintain exposure? markets, your Do they in given would officials and comfortable you had their you of you in mean, and environment shutdowns especially conversations a retail have any with maybe and guys the them. have the conversations safe key have your year leaders West, handling ability you any political tenants. for a perhaps be last shoppers greater Anything could local spikes? pandemic-related Have more evolved and confidence learned

can political what speak that I know what could leaders I even say. Yes. because they change may regardless do or of may don't to that not

the there have I were given do you when open if safely, protocols, of the to will, markets our service seen operating that just that, confidence were restrictions, there that has who tenants terms providers our the believe retailers, are are how tenants, in think, voices have I speaking big more confidence It's and real when our but that's as we still their local even communities just in their when in their to loud and constituents shopping what not really owners the are center that -- local voices. leaders. think the have operate businesses, businesses political that leaders really the live It's speaking. well, in to hearing. I and own the And communities the that they're what

have in even better as from improvement restrictions, see adapted. that Even continue I And or restrictions and mentioned So see restrictions have confidence we to remarks. do increased this if to prepared we forward. operators capacity going go do they've new we're masking vaccine or some -- that believe we we potentially learned, my the

Can of Should run like the positive a And color guidance year? the the a in embedded half. collection versus million we in we quarter million just, per $XX just it around surpass versus kind collected should second the you $XX $XX bit. Mike, maybe reserve expecting in the million half. we change $XX to modeling a in believe throughout collection million higher $X.X the is it of It rate of year-to-date. XQ? then And clearly, indicates through there's hopefully level? recoveries I second assumption to half were balance opportunity million second XQ an previously in for we run little anticipate Any Or welcome. rate out the seems

the collections. it's Yes. we to do And July. I'm it, very And offer the best those in I going Derek. predict I million can, to appreciate but $X did timing the of difficult

-- of But on confident that, beyond We their a advice be that consider of we we straight-line year. bit feel out around to around more. challenging obviously, to as that obviously it everyone little may that models. the an move number. into year. could within throughout midpoint number, pop bit finish collect little can It given least get I a basis put It range. changes million do it we in is kind the $XX my have at think arms the the We had less. is larger our kind a So unpredictable We would a collect can

described effective maybe up of just -- the higher assuming same a that paying rent think bookends as bring we the just net about range I little we which balance year. the range, everyone, will is bit that, As about level, is XX% occupancy midpoint these continues today, and the to be for grind it helpful of to through property essentially the

trajectory they a today. collection So way, said year basis northward rates. than the XX% slow higher tenants, their were coming cash are we They're That's anticipating on into in at XX% another January.

of I I reiterate call, had this increase it. last quarter's we've said there. So level a remarkable just on

-- full you on collection range, income. to rate of $X is think X% year If basis tenants about our basis about worth a that cash on million

us $XX the tolerances And also $XX X% So of book which to in has -- equals think accounted think with collected as just of this and that range. million that think the I the that help end $X think all everyone I million, full those about think that in everyone as will can the help range but with help possible. at pieces, been transparent about point we've be for That X year offered. time, with I trying we're million

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

more you've you redevelopment? higher been external cost, But on terms the I have have acquisitions With wondering cap growth, competitive of those with appealing most and acceleration. know which in I'm and labor material. is lower, of construction driving you touching the just growth levers redevelopments, or its external rates. acquisitions,

to of above. the very this that choose, the Craig, make because love one going always has say returns. you all an me clearly, to consistently said the need I'm We've I'd We higher that end, if choose that

flows be know back for best we to further and time and capital and NOI, base we've I'd to to our able the earnings accretive we of I with use low To accretive and capital are and that that get cash is our portfolio that all. operated so platform, that do word, like that quite to the our of are and and to leverage we our really do that to assets returns. we our us all. it like extent assets further like do grow I'd in add said, then grow our And -- redevelopment and our and into that say the investing -- the accretive I cost knowledge end to to able can But high-quality on owned can quality allows some markets

And looking just redevelopment/development as retailers the and then assume I interested XX%, Verde location percent are opportunities? at at leased pursuing Costa those at that in new

but I Verde and add exceptional add Yes. we much estate like, some fact an we're to can he'd value is Jim location real And there will have amount Costa mean be we add really that. There and of as to will speaks demand redevelopment, asset. that color the as to -- full there. to commence ability if the for when going that do the be retail tremendous validates and space there already continue the is a

I'm Great. XQ know mix I 'XX. last if leasing new leases spreads wondering flat it's why question. but in one And on don't related, is new the then

direction, is little heavier to But than mix. have normal moving did trend for anchors to a spreads it I'd -- are importantly, in our is with stress, had shops a line like the all versus metrics. bit mix do Craig, of the think We I as right operating really this quarter.

I'd NOI percent Our of which our as cash at on certainly the does to peer that, spend allow prudent say impacts said free CapEx the to philosophy metric. us lower having end And maximize group, a this tends be of CapEx flow. total

to steps asset management which our rent try total do these out sit lease in in, be there at to year we I year we historic to and at And total recoveries well to embedded expense continue initial and very As which levels. growing business successful up very rent. make decisions, our rent includes, spreads, we, continue achieving, look look space we think, and obviously, back

going long and sustainable larger creating I of the result think growth those in combination, in the earnings in are all NOI to objective run. actions

with is McGinniss Our from Deutsche Greg Bank. question next

Me, Scotiabank. I guess,

you've And What should So of recovery in net economic and volumes. cadence the growth, maybe think tenant about effective accelerating retention tailwinds leasing headwinds the guess? we sequential how to shown of potential or lease, occupancy demand? I paying the and rent occupancy, a occupancy are some

operating call. forward. We're challenges there, say, of the on if time commence it's hopeful, sometime, which we XXXX. basis, result of -- progress we're see to goalposts, working of or to threshold back with on very half one to end to a to an XXX our it's But points -- start leasing reference pull mean that issue did but return pretty continue We it in hard rent. lease, XXXX need time. the how I'd to annualized net a I'll levels visible the that is, the about making a recovery I Greg. the a and or But as we pandemic. build just to we to is out, of basis that much takes of lost that a take are headwind up, we And occupancy does see income

about some Maybe he the is working -- talk little forward Jim the meaningfully a of more that we that. So challenging, as the side activity. leasing that headwinds bring bit to but that do operator are sees as in hard we from can to can

Yes, I strong activity before headwinds, we're on the seeing touch Greg, think all very regions. I the back would I on like go is to today across

be robust. pipeline when look think continues and it at to forward, I look I the

from it. of opportunity we're a in and us, is standpoint, take the advantage think of leasing front to think I I So tailwind going

indicated, historically. Mike we've vacancy As more than got had we've

talked So think what X I got about. are turn we've product, things Headwinds, make those demand, got occupancy. and into we've rent-paying going to we've obviously, we're

are that. there's How those this think to tenants, with them dealing supply to of retailers lot we pass the labor don't point. shake the say those out, consumers issues, pricing, there's at through costs I are today, know. will I able A chain issues.

we're but So they're it not They're really stopping feels like headwinds, things watching and are way blowing them, progress. now. right our

think it. I think about way that's the best to

had than facing we about it flipped. tailwinds than that has and -- think now. in stronger you greater And headwinds any -- are clearly the XXXX, tailwinds were If headwinds far right we're

that a color. I bit dig more, to the little appreciate into So maybe and

are watch to the industries? improved list XX tenant list still you a environment the view is on watch of has what compared or tenants over exposure months? what analysis the our years. much your how last higher-risk improved few So some highlights And as maybe that, last just your viewing curious I'm

Let list, the me watch start Greg. with

those finding look by our of years the tailwind through right? may it's our privately and filed pandemic from And centers quality, improved just list retailers watch view have whether system and remained, of have essential a There's and much this quality mirror to bankruptcy credit would a who or subtraction, I whether think kind over a improved spaces. we worked as have for our have capital re-lease So them tenants markets, lot there. meaningfully we access and yours. a have or consecutive their operations, many Those improvement back been out through to of retailers and that through are of perspective publicly. lot certain moved of had quarters, credit been where at we've necessity-based opportunities

an landscape. view the our -- and much like a anything is So different yours, much landscape improved Jim, on

Not really.

on head, it hit the Mike. You

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

the actual maybe of XXXX. to and stronger. X just months maybe space generically the in been talk not anchor last quality a growth I space truly what relative degradation curious if Just where you've portfolio, But bit seen hoping as rising? just little stronger, rents shop trended and guess, we whether for, located rent both any have and just or people about And if are or getting improve inferior on across the fact, look rents so, small the if the your to has could market over market and those how in they're

retailers. good really I my I you tell Strong appears want market would seen pre-pandemic. pretty guess to retailers that it steady be good seat, good to other I would from we've -- retailers before, what from and attract next centers rents are Well,

we're to used before, and said and who generating interest of from are simply, retailers a general. seeing in in think space activity thriving got I answer as than that I So minute want in. had pre-pandemic used be we product But more ago, we've type. our to it's we've your to market system is lot a rates a to were question what We're,

can funds any next then that goalposts maturing existing have months? the could that like that XX joint or on? -- out where maybe to opportunities with any in Okay. Great. their just convert And on over you are partners the things other some interest Or see you XX, ventures, you could buy

ventures no to finite them. so of there's the are all lives Juan, long lived, any

kind that nothing the contractually horizon. would there's So an to bring of opportunity

overall and opportunity They particular a quality. from are forward. all very of unique That grocery-anchored retail. But a very allocation owners. other the our they this space. Regency's Their portfolios joint JV quality performing mentioned, are to with this committed enjoy to could well, their we change venture a consistent group As in was partners to going time, well point at

But and now. there could So we're have we as point. going we that to be seller potential a have with as right it's this don't We a USAA. willing at buyer there, take

of that, a important do we ability seller, become probably capacity if think act. one to willing And that's I they have the really that the most points the and

question next Richard Stanley. Morgan Our comes from Hill with

on Hill. quarter. You on ones. for Two Congrats Kamdem got a Ron Richard quick

Just on to the levels. recovery back foot pre-COVID impressive traffic,

people and Are now versus demographic change base? pre-COVID? any path in sort different intentions discernible more? Just on spending you've anything of it spending different curious there a from patterns? -- Just Is spending seen if the any curious, is

I think were baskets we initially, but baskets. what -- were bigger fewer seeing bigger

but less as were equal were, people greater. often buying they trying probably I've or come to So described,

across generating think traffic were impression coming to so at during the sales I of XXXX that out is was number I the kind But significant grocers think activity, to impressive. above is teams coming country the the that and down likely size levels basket is really quarterly is listen when the all leveling look It slightly. of my when summer. -- obviously report you back, restaurants foot the of we this increases

coming to they're And is center, that the up showing me, indicated through anyway, just and walking they're the traffic back. clearly, not it So buying.

So we're with what pretty happy we're seeing.

Great. question my just And then change. going second to the was guidance

the the more, And to is commentary how from just that the year? half tenants -- the think clear. move-out of I the a little of in compare year? maybe does Carl, on normalized are But And half? assuming what see lower did sort second a you the pretty activity you basis bit in first cash What

limit mover uncollectible activity better the of 'XX so the reality see biggest the rate, because my rent the leasing the leasing than to of inverse we time, Ron. in of numbers. move-outs. of performance needle is were that's higher going gratified see and occupancy, the same forecasted levels that. paying to measure don't a I'm And comments effective net component, levels for to our collection At lower we Really,

So I perspective, we're that's to to a where But from in to of to percent -- We a through net on to to the higher the and think year. speak going more it rent beyond. guidance going will balance or Today into XX% from grow paying its so. that think our lease we belief that limit grind giving continue just occupancy. will effective 'XX we're continue

Mueller Our from Mike JPMorgan. question with next is

Yes.

redevelopment. very Your towards that few next I'm a development, there opportunities curious, skewed the shadow see is of new over just could pipeline pipeline start is redevelopment years? we heavily off

absolutely. Mike, Yes,

and from to for the As the in locate recovers, We're growth. with grocery is certainly there hard sector working world appetite that an tune sites.

in the and Our to are doing we're traditionals to type opinion, And shadow portfolio. nicely. of business pipeline groceries our used that is building, within my historically talking we

yes, what about from feel we're activity good pretty out there So seeing an standpoint. we

team those diligently And And that pause spending, projects while throughout on switch, advancing right? to you And before, on. and to that paused the we on heard even ensure a Development we us turn really to it Mike, not working continue XXXX, did forward. not working already off. move may ball speak was don't you've we are the is we have

to pipeline you'll see that we in-progress convert continue do So shadow to expect a that pipeline. real

Tsai Instructions] comes Linda next with question [Operator Our Jefferies. from

the from conversations change shopping X landscape? maybe space, or acquisitions center standpoint? peers the having tenants of larger in with in the Like does leasing consolidation a space Given terms in competitive

from don't larger up in up coming, there and sources, Jim we high-quality I'll investing believe -- certainly looking the landscape that private peers which public is a could I'll or many the centers shopping been also times as against I in, capital that we're competitors. hit against on public. those well. from competition leasing. some are and small, from large, coming touch grocery-anchored market acquisition And regardless really be does. of is size I competitive the upon let acquisitions, the you're And mean, depending of has always it that be going from The private, capital for we can and smaller, of competition going leasing really our -- then

a standpoint, leasing From I'd…

the The asset… quality of

the the asset, does The get to of it quality individual down asset. really

owner's competitive And frankly, an so from don't quite I think set the changes, perspective.

second 'XX going cash accrual, to Is benefiting your relative best of but like basis like far about XQ? Mike, think a tenants pennies then, it what's a not the factored back in to the the the benefit? benefit, the potentially to of helping greater being your or And comments potential half in couple cash estimates about way basis slug of forecast, magnitude

last some that's is ABR And the on best estimate classified it really be I do -- is appreciate then I potential me, this The that back to talked likely -- year. our current there's believe can X position quarter guidance our me hard unfortunate and tenants. we're -- about flip tenants in you accrual we Linda, in requirements, question, basis and XX% as and an this there. of to which the for volatility it's cash equally But is accounting volatility as and providing I FFO for is as things. this, possible, currently that that will of and accounting about includes forward-looking. it's as transparent rent can't give One,

would an So of a of core basis let as potential that to an And flip earnings then that those metric. just all continue earnings report from that cash be. convert could in this thresholds will And to use pretty why we I'm will operating because large saying we high not accrual. we population lastly, before are me indicator tenant add, setting is how standards and on be and

We how the how making our internally. about. talked This is noncash. what we've impact is of are the we're decisions our about This This talk running Board to business. eliminating we is

believe finger the metric best operating that, We continue to to our pulse the success. of on that keep is a

Our next is Baird. Wes question from with Golladay

you credit this Or was the series Can entitling? something this Did entitlements you you sold you for talk place? get still in had quarter? were about the you

you. Hancock. Thank

Hancock. Sears the I'm sorry. We building, Yes. on, early and alternative use. was better we down going other were retail on probably higher use that than the path determined the

versus direction an down that's So for we we headed. absolutely did the user, which wanted be path engaging office. the We really were lessee. office/medical And to a owner with up entitling of an go ended

way to was redeveloped the we into neighbor. still They're be we good best thing The this and was best that and user looking we that asset could, or us to traffic high daytime the made. for expanded for So store. that We're highest transform selling end pivot they're HEB us. our determined generating pop the a to is soon-to-be going value

We And so us. sold operator, asset it's very and great terrific they're a neighbor. good to be a win-win an for to going

on the at the centers. more existing Got acquisition to your with Would coming partners look it. you shopping more then capital do you into front? more or space, joint And ventures mentioned looking

I when the them. the now access in which mean, expertise, to we access serve of don't to wood, we've on always need the will opportunities. but come also More purpose from also unlikely. joint knock there it's could that's ventures actual spoken ventures access Or of to about or that's perhaps our right capital, be in -- properties opportunity access case, to some probably will scenario where joint actually

to we opportunity so the allows we how access extent an it. us partner venture otherwise entertain And that to have it. joint would absolutely, a to we have, not And then think about may that's that

We turn At time, to have I'd back question-and-answer Lisa like over closing call to the session. comments. this reached the the end for Palmer of

nice quarter results. do great And your time, a us joining appreciate weekend. Friday. the also Regency to a for great team. I out all a quick shout to thank on a and you have for want and Thank just give you everyone, I And

concludes today's conference. This

your You time, and participation. at for lines disconnect your may you this we thank