Regency Centers (REG) 10 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Regency Centers Corporation Fourth Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Christy McElroy, Senior Vice President, Capital Markets. may you Christy, you, begin. Thank

welcome Good XXXX Centers' quarter Regency conference morning, call. and earnings fourth to

Joining are Roth, Mike President; President; Mas, National me and Executive Operations Nick Chief Chief today Property SVP President, Financial Lisa Wibbenmeyer, Palmer, Chris Executive Officer; West East Leavitt, Alan and Executive Vice President, and Vice Region President Region Officer; Treasurer. and

that future future forward today's statements statements based current the about actual from in in and could differ views recent to materially by actual and are be today of our differ may that forward-looking to filings cause with earnings SEC, filings. are may suggested those discussion including the results forward-looking various possible performance, risks contain statements business materially results these conditions. from the may in reminder, detail financial in on a described beliefs As we Form and and XX-Q and specifically These our and risks included market guidance are more XX-K may It's presentation company's and management's uncertainties. most expectations and subject make. our Factors

today, reference financial The included website. presentation related our Please certain disclosures to GAAP have posted will our we measures. also are are we website earnings a including in on financial our non-GAAP measures materials, forward quarter's Investor information, Relations In comparable this with which discussion on also earnings posted guidance. note additional that

to also caution Our on statements these presentation applies materials. forward-looking

Lisa?

it quarter all with for Regency, XXXX on Thank on for ended us. year a good fronts. is really everyone. morning, Thank we note results good solid a high and you you, Christy, fourth and joining

of and testament of team. is centers, our the performance work resiliency hard strong our shopping to the quality tenants our and of health a Our the

environment the with This as look that our rents strength forward our to the continue and of over We in our growing by enter the years. support several demand portfolio. across We continues great persistent tenant to further success also we leasing economics next have momentum operating in development fueled strong projects. pipelines to growing pipeline redevelopment XXXX

is it important challenging macroeconomic bringing relatively have This last tenant early the same product a back and bankruptcies advantage in store opportunities backdrop not getting light of to do But is acknowledge centers years environment. which upside of taking It closures, couple our and the more see by limited. it for importantly, strong is been areas. where tenants At intentionally have at-risk trade time, and years. with portfolio of spaces is of exposure suburban of the many our the is we cultivating to And we neighborhood accident. that strong exposure, leasing

along clarity impacts inflation believe our economic factors ago. some from the underscore These our with the than environment markets, moderating, business Additionally, have on stabilization in the with capital outlook. we more our did XXXX we in we to months conviction three

returning shopping centers. are from Shifting stabilizing impacts validates situations thin, resistant a cycles. to starting activity. reversing grocery-anchored strategy investment this on high-quality economic financing we to markets remain increased markets, Transaction volumes treasuries course, for competitive are private but see and the transaction with bidding focus portfolio believe convenience more to value as centers We our are and and our necessity, with

of turn couple Alan. I A thoughts final to over it before

structural open-air and the out to rising sector with benefited has stability tide. coming all boats In of the grocery-anchored the steadiness tailwinds of the pandemic, from addition really shopping lifting generally centers,

team. and locations the estate, and strength really that work believe our the tailwinds liquidity XXXX we spotlight do pack. of Regency's allowing While we to our of tenant include quality and the sheet These balance amazing continue, our can attributes, a on credit, from real those us to hard shine our expect and separate attributes dedication

for outperformance business, our in steady meaningful of how and and and long track and growth. cash create win flow by growth. sustainable in investment that record dividend value Regency's is day you shareholders It's the generate we solid margin decisions making on our every operating this In reflected

Alan?

The and Thank the another we XXXX operating environment proud really Lisa, quarter. ended good retail you, morning, remains and of everyone. strong with healthy, our results. I'm year

to our We points had our up to XXX XX% with mistake, closer occupancy XXXX strong still one over XX.X%. leasing, an our points leased same-property of ultimately make But levels year-end get up aim back levels year have helping to and we exceptional XXXX in level to higher. ago. to of basis rate rate or basis year our commenced and gains we lease rate no peak room back is drive Notably, XX run

our was the ending proud pandemic. our of for the the basis driver shop during XXX we with basis year rate leasing especially now space XXXX. up year record XX recovery above primary The challenges lease shop shop I points many faced considering the points am occupancy

debt the historical a to importantly, the is GAAP of bad retention for tenant rent above effective mid-teens And were to X%, as leasing remains back spreads embedding rent of rent percent north of record our due levels. in in spreads rate spend. net our Our revenues our team's pre-COVID averages, contractual track and of steps our capital year of accomplishments judicious achieving cash maintaining leases the initial majority and

excluding fees. year the of another strong and of NOI progress we've collections reserve trends positive these X.X%, contributed growth and to of COVID-related All same-property made term

our points of than At positive annual us XXX basis signed giving occupied represents into $XX XXXX. of year-end, pipeline momentum million not more rent, base but

Importantly, we newly to commence, with pipeline as leases replenish continue this executed leases.

LOI full. Year, remain continuing demand pipelines seen in and have New We strong our the and negotiation lease tenant

off-price. categories restaurants, and wellness, veterinary, health and grocers most active include Our

appetite We today outpaces top which portfolio. to inventory expand well Regency's quality are available national high-quality the that from hearing retailers their bodes for

basis headlines, XX points which only XX bankruptcies one filed ABR. will As over Among be of that we we less retailers move-outs is Regal store points about ABR all stores, think in have Cinema, for know than of closures we City impactful have basis from recent and only more tenant X Party as early XXXX. bankruptcy, recently comprises and

had the had context announced points naturally In stores Bed year-end, those closures the week, one XX of Beyond's January, of at We announced locations XX we five comprising the on closures, we & ABR. list. basis of in last expire Bath recently of had and store

range, guidance assumptions we've tenants relatively XXXX these of said, our loss more which our for to believe Mike in limited. exposure detail. discuss we credit store Within at-risk announcements is overall embedded and that closure associated filings But all with will bankruptcy

tenant own at-risk really tenants, merchandising retailers, from our normal already back good And and bankruptcies about with part of current a are to feel replacement our base of that of process. teams the mark-to-market rents being closures. as extent a rents of centers tenants the negotiating ever the we estate. outcome the our quality we thoughtful for we the get to our the opportunities the real is in have business. than intentional and our we Our result that And at of all are To healthier in Tenant merchandising higher end, mix upgrade stores underperforming centers. at known whatever

summary, momentum provide and In positive the we today are experiencing trends QX into XXXX. results our strong

Nick?

include returns than our rising million ground-up year, and redevelopment construction completions Good those we years $XXX San These Alan. development solid on accretion that over successfully $XXX Even from of on million investments provide to in projects our in achieve of you, pressures will strategy. costs, with Last morning, fourth with come. Marco, we here in earnings to continue executed completed we quarter. our Thank To the Jacksonville. development more East that end, public-anchored everyone.

public-anchored all metrics, during as expectations is success on two XXX% original Torchy's Burton's Carytown in and development. and ground-up phase. We've Exchange Grill this Carytown Tacos, rents. including second is split tenants Starbucks. such recently outperformed another phases leased the project property the on Jenny's Virginia We The and cost completed Ice pandemic great with and had timing, leasing into at construction Cream, Richmond,

center Preston including were and the Dallas. We an Farms, the center and mix Mendocino now Heyday Oaks XXX% is merchandising redevelopment is shop by HEB-anchored new vibrant significantly upgrade leased. tenants, the of in to adding the Everybody, able property in

as first the of redevelopment Serramonte interior phases two These as the project and well our included addition Chick-fil-A we during at phases mall the renovation fourth the Out this Center, and of quarter. the completed space second expected the redevelopment half Future the in of start of XXXX. former Penney outparcels. addition project, are buildings of the including exterior phases to of two JC Starbucks

discussed we've complete. our made Kmart year-end. this in Highlights in Angeles. progress detail to redevelopment in-process the construction redevelopments, addition which Foods-anchored also and Los of demolition commenced nearly completions, Country our and the million We great has $XXX in a building ago, but project is In Town Whole & former development include quarter fourth on at totaled quarter our

and on $XX of of job later is open total, redevelopment to on managing time XXXX. and track this continues incremental an Old in we believe Shoprite Bridge, Additionally, to with deliver on remains and projects our at our expect in Green accretive and NOI program development Target's team opening and New on million in XXXX. budget. construction schedule costs Glenwood anticipated we excellent keeping to Jersey, The early XXXX do our development In year,

focused I'm making our continuing sourcing Beyond in-process pipelines. value-add our unlock as projects redevelopment by on as projects, to our new development really through opportunities we're pipelines building redevelopment through portfolio. ground-up growing new encouraged projects, acquisitions, in our shadow existing progress We're well the

could developers financing joint with create meaningfully which opportunities. facing venture engage to continue also We that are additional challenges,

free ingredients key to grow as advance forward Importunately, additional unequaled, these long-standing program, self-fund our around the development sharing top retailer country. the combination ability the to the In totality, robust growth to of with markets demand, necessary experienced We details we these we we tenant have in opportunities. teams have believe capabilities including relationships, and are this look flow. cash we

Mike?

you good balance through and results, full XXXX position. I'll highlights morning, Nick, our our on some then our everyone. you, color and assumptions walk Thank year through before QX ending take with guidance from and sheet some

and specifically Our by growth. underpinned growth rent from strong was year base performance in NOI more last

XXXX Excluding rent redevelopment in increases the the commencement NOI accelerating XXXX, over quarter rent to in growth fourth occupancy re-leasing, from by which base the importantly, in on and for a contractual reserves, of and in base Again, year X.X% XXXX rent This I'll X.X% mark-to-market steps, rent COVID of the collections, today quarter. refer saw last contribution and projects. from as in delivered been same-property of year. has driven growth we most collection X.X% X.X% growth fourth full we to the

levels, That's our are set occupancy were fourth collections XXXX. quarter now back from eyes down $XX million As the Alan million for the in mentioned, $X our year. COVID about $XX higher. is to in rate leased million pre-pandemic totaled even but and

We reserves. tenants result, from a recognized cash, as the During accrual with nearly basis of our reversal remaining X% the million of a straight-line and the we back rent non-cash tenants cash from to on an our another accounting. $X basis ended converted income quarter, of fourth of year of X% accounting of

average nearly ever uncollectible in higher current strong were on points basis our as lease billings is profile XXXX, but exposure metrics it's income, For tenancy all for as our we some of to in-place bankruptcies, to historical limited potential year XX about by close been.

excluding midpoint. to to XXXX ahead are close Looking growth share operating year-over-year per of after COVID core guiding collections, the to earnings X% we and at

you in X which point to work certain through our as earnings to I'm like We'd helpful extraordinarily presentation, our you'll X through outlook. you find Slides

embedded positive of excluding which continues rent commencement projects. the property base the X% to largest of of same rent be rent from redevelopment expect completed We delivery growth earnings NOI shop as by contributor The into new XXXX. well to as steps, primary is collections COVID and growth, space growth, leasing X%, driven driver

assumes including points our impact and pre-pandemic I'll the XXX Importantly, minute. same-property move-outs early which to bankruptcies XX Alan our points in will basis occupancy well from year as occur. above roughly be a also potential guidance collections, closures, Again, discussed. impact from for lower should range the loss XX as credit an -- that credit basis NOI excludes COVID loss income current to modestly uncollectible from average end lease flat those any bankruptcy-driven discuss to includes this impact range assumption that tenants anticipated year store tenant of This of

be NAREIT rents revenues reserved think from last by $X.XX to reconciling well accrual. the as tenants adjustments, from non-cash continues As about on to impacted collection you the Remember accounting midpoint significantly this of $X.XX including FFO of in era converting impact year as to a of cash previously COVID XXXX. guided that metric

in our have continue fundamentals expected continue they as operating And as this Our to they year. are strengthen, cash these true items in earnings. XXXX pandemic-related can and growth to mask

items two step as these It's important year-over-year further to comparability. take this this meaningfully morning impact a

million collections COVID lower $XX $XX increased $X also XXXX in lower anticipating revenues Please our million we midpoint non-cash $XX in by the million at XXXX, non-cash million compared new likelihood year we continue revenue the ago of rent are guidance second, accrual accelerated full accounting we will information, last from year. including an to a to assumption in will XXXX. for potential to store million $XX account converting closures. the of as First, anticipating note triggered we we that that quarter bankruptcy-related XXXX are amortization well recognize as compared in And for tenants that to below-market

strips With in underlying This COVID on these certain find provide this as transparency, are added COVID-related approaching you positive growth. fast impacts also The presentation, out focus is earnings create which the impacts. same-property we it the and noncash collections. operating why meaningful point better why I we Again, to helpful evaluating you adjustments will use the longer see we encourage that excluding in core earnings, results. NOI is very our noise our in where reported materials I'm no these the news good you'll can

and REIT most. sector from balance a To sheet we perspective guidance, a time strongest matters pivot are the how about to of one at we feel the when from in positioned great with it finish

expect Our of our flow commitments. leverage is to And X.X times debt-to-EBITDA. free our at range million self-funding to targeted north and this X we the $XXX year, lower of development cash times end redevelopment generate of

capital favor year. this need X we While moved the the access over to financing last markets in no markets have have the our months,

line revolving we no Our mid-XXXX. maturities year-end, and was undrawn until unsecured have credit at debt

and position to. remain and walk to patient liquidity provide the maturity profile us when need we ability Our and act

With that, we questions. look forward to taking your

now Instructions] a [Operator be We'll conducting session. you. you. Thank question-and-answer Thank

your first Our from proceed Michael question with is Goldsmith Please question. UBS. with

morning. for for my Thanks taking questions. Good

your organic NOI of in the this of you long-term guidance that chart X% same generally drive property to same-property to nice factors XXXX that. consistent growth termination with without of collections NOI have fees or where X% your You outlined your algorithm X.X% presentation to X% reserves growth is

as Thanks. can you're And setting moving are you the reconcile this that just does is maybe that up So a XXXX algorithm your what year. pieces? Regency mean year? with expecting Where long-term average

Good that. question, for you Michael. Thank

Let me up, color still intact. think the is that you'll find algorithm I that and

XXX also leasing And tremendous activity We largely commenced important are points anticipating rent arena north line out and increases by item. XXX we basis percent of being of coming base on call, rent year X% and the base of solid highlighted the occupancy driven growth the driving lease small delivered, total, shop the basis growth. of that's the team good points really this that

contribution. there. Rent XXXX from playing are steps contribution Rent into spreads XXXX redevelopment a

elements all items is those are us So credit dragging some loss of our being are there of algorithm highlighted reserve. said, XXXX, which as down in there. are that one in That you our

accounting remarks, last on of higher to touch we a sequential prepared for we spoke excess So year. are for the the be potential in what bankruptcies, over would XXXX and a in for experienced which XXXX. that basis, I providing

drag net recoveries And then is the a coming as line slight well. item there from

It's spiked You fourth the elevated may year, the won't for year. and recur in have noticed some going been of into little a that next that that, quarter. bit

we And So deliver up place. I the and north a set of identifier. to algorithm in that is real perspective to base run upon growth is growth leasing well that room Regency still feel has like a extraordinarily profile. positive 'XX X% from on in rent still seeing balance, have

that to XXXX the be going XXXX? (inaudible) there? pipeline. by realized much follow-up in of end is to how you of a my the is type event? Or able And quantify Are And is that is on

to Alan color, start of and if in. me jump roughly It's provide $XX Let million any he'll wants ABR.

call our can rents. You in-place that X% of

all SNO So fact, this XX% in And think should XXX the from in year-end, of perspective, nearly I online that's to of XX% timing the quarter Michael, year. for speaking area of the I'm we're that of it, about -- basis XX%, a by year-end. be points by third

you Got much. in 'XX. very it. Thank luck Good

you. Thank

Truist. Bin question. Please your question is next proceed with from Ki Kim with Our

Good Thanks. morning.

you is lease. how quality across typically look describe So that left would you or space to compared lease center to space always in that's occupied? Meaning currently every the the when portfolio, at harder always there's what your inventory leasability is to

trying I'm So to calibrate just forward. -- just expectations to trying our going

Alan. Ki following heels that's Bin, pipeline amount it's that and answer tell with a of strong really full the on tremendous it's a of I would to to still look that activity year. our question XXXX you

XX.X% the eyes we merchandising back great remains So with and our the get and we certainly do to can to our we -- setting as and space in will we're large, by pipeline. will higher, that remains at that said, us believe allow and leased, activity quality that coupled XX%-plus

to reached get, spreads on for think linear, I XX% trying better. mentioned, occupied, that you little And the but it's like the just what you've lease your as more always higher you XX%, and way know going a you're understand to do you meaning not spreads that forward? dynamic means

Yeah.

I as of includes of doing spread look our digits Feel and single there's how think a in that that, our we is steps Ki how that. as high again, levers cash also embedded shooting we approach know, kind that for capital. really you that rent rent confident into go to we're lot But at well spend as Bin.

going think so with And the we feel we're the again, trajectory down. and I confident collectively, that path

Thank Okay. you.

you. Thank

Scotiabank. proceed question McGinniss is your with question. next with Our Please Greg from

and discussed we backfills higher demising expect are how I Bed much announcement, realize points then type many I'm And since -- store at rents, looking what higher? is clarification. break versus should downtime that how you on of you few just a morning. Good curious but Bath have hoping might of you closure long it hasn't the on those? been One

Greg. remain talking Yeah, to again. But about fun do have of we points ABR. that that represent stores No bankruptcies be basis XX XX

the list. only portfolio. five on but good And about the stores totality were really Bed again, the We closure of that come have Bath not may of whatever those five we feel stores,

are such perspective, XX,XXX those mark-to-market Bed the you to XX% bankruptcies a generally stores happened square Authority, when XX,XXX the Toys and in we Stein think From I that the we're Us, Sports to think Mart, in think past XX,XXX about in have XX% were the And "R" range. stores, foot range. square Bath foot as

so the most interested pool which a not will splits, that for your part, of downsizes think users provides I really part much play question. that, again, in wider capital And require or a will

are I'll We time what that all in But of negotiating appropriately the we're obviously They deals just instances, our will for call known in announced recently raise. equity some demand of And an and RFP tell. running even relationships. closures. interest managing

So staying all staying it, active close of we're our spaces. to aggressive and and on we're

you mentioned doing are on those getting on Okay. are up of the And you close any looking of you developers some how just to and And financing of deals assets? with. at facing big those investment an one follow-up who of how end I'm might deals kind done? challenges curious those

question. is Nick. Great This

can As a investment. you of range imagine, wide it's

guys for the seen construction local is effectively frozen. debt you for especially have As developers markets, capital

our relationships, in well combined our I very clearly with are situated, available our we the capital. so mentioned and team country And around retailer remarks, our impressive prepared as with

and days we XX these conversations from that would opportunities. coffee real and say, real analysis -- are, into started moving so of negotiations dialogue ago And I

very And stages do like but meaningful are a the early it's feel pipeline. the so stages, to I growing important early

look these development appreciate of scale. could of And our historical that you some when program at projects you

excited So it. about

for you time. Thank Okay. your

you. Thank

with question with Point. proceed Dijkum next your Compass Van question. Our Please from is Floris

taking your can some more $X.XX for retailers. you. that question. of Thanks two the I've maybe got we nonrevenue is bit Number some of little for guys. presumably, guess, morning, related mark-to-market. the detail on get if a Maybe, I one, Good And to troubled

some as sort and have some of Bed thinking a also properties Station, Buckhead can mark-to-market of on get back, more such give and you in Garden, University exposure. bit if opportunities you particular, about If your Beach, I'm properties South the of some that what us color would have this that you space of Bath little particularly

Floris. Sure,

anchor I accelerated the think potential you're the about to rent get asking below-market with spaces. back associated

Beyond of anticipated situation, -- the back into to do -- scenario we roughly which have Those expectations. tied touch itself play we It is, so income spaces. get in we fluid guidance may those what amortization. our Bed for a accelerated a or $X be incorporated So those believe into what we our be & potential as million the to it, you would is incorporated out And call that we know. to of Bath have

And it's the of To put those it's rent reflection those the about will Alan's again, mean up point, I Alan's tell the we and of would point which XX% on original opportunity mark-to-market that up. shopping a at on acquisition of a indicate direct that where time really centers units, end amounts below-market were economics exists. time true

double Great. XX%. about Obviously, total a your portfolio Where occupancy little about equally, your XX points. the to talk physical note the mentioned I typically. occupancy can are created you little a I up small shop gets basis also occupancy follow-up, go? rents bit maybe And your bit? all leased shop occupancy in the maybe past? peak shop Can that Where went where occupancy, rents small you've more. know anchor your you your small then not talk in -- that see And a was spaces

different command, in I that like Alan different and and jump that is I answers shop those all than quality. all I And much say just would feel retail but high-quality and question, of it's not from Before equal. anchor say lesser recognize have not small is to space created rents actually is space you I and equally, not very this appreciate

your let question making appreciate I'll you I more Alan So specifically. that Floris. recognition, answer

Lisa. Yeah. said, Really well

think peak historically. answer is is Floris, only the the left to where thing I XX% occupancy? And there, at that's

what really is we there, our again, in good of get as only where our XX% shop at perspective right are said, a And that. can remains feel to about and but not now we pipeline so I and exceed hopefully, on ability we kind occupancy

Thanks.

Thank you.

Our proceed [Indiscernible] your Bank question. with of with from next is question America. Please

taking I the driver NOI primary for exactly XX% rent if could of redevelopment? assumptions assuming behind the seeing base was you Hi, the my What of Or Street? thanks growth wondering that from walk could rent you're as question. guidance. same-store you then commencement and on are you if just about in-place rents for the rent your talk strategy balancing contractual through how

walk question Alan about components I'll Sure. we're really provide I excited in with talked some color rent may a the opportunity Michael's things, NOI about base Lisa a of X% XXXX. coming and from or and growth, to through our several growth strategy it perspective. right, as of North algorithm. earlier got with It's that respect you combination from

move So butter contribution our has contractual we higher we're to that continue XXX every time, to It's a basis growth been profile. point rent and and rent the the been and embed lease needle positive of with as bread for increases. in steps, the trying a that's -- higher range long

Rent to spreads contribution. continue be a positive

of I What this talked really X%-plus saw be in will You from call outcome depends That it, of are redevelopment points excited that the online point NOI upper XX timing contribute XX say It we're area. basis will now from from about NOI translate growth to We A that's we about perspective. our on redevelopment item. 'XX. in million same-property commencement redevelopment $XX starting through to a in is with should coming is XXXX. that rent come and at that line will that perspective pipeline We've growth in that that point end impact will from XX That on to of to a pipeline. strategically It delivery delivering perspective. basis development we're be NOI of try a the this at time, range. from this lot to we growth. our pipeline. deliver

then made outlook moving around strides for comments We've And commenced in our rate occupancy. in some I that in remarks made XXXX. tremendous the

maybe XXXX. getting reserve. impact sooner credit to will in SNO the hopefully, BK even deliver the But little pipeline, a we're our loss now We and of continue into the

bit So depending play of factors a that could be a over 'XX. on face the of how course bankruptcies to contributing the would out growth. impact the rent dampening Those be

Great. you. Thank

Or Another what what in market? within I dispositions baked for allocation rate? this now? Thanks. an Is million you're just included -- your an of $XX wondering cap estimated for follow-up, is was at seeing assumptions that kind the of in guidance on a just is X% based the

It's specifically identified They of collection JV larger are a coming from projects. actually assets portfolio. our of one

a we've owned assets in the So properties. minimal. commitment on the wholly we've that's our to bottom is -- to whether exposure risk It's one nonstrategic, why Regency's of -- assets. culling so portfolio, long long it's been It's JV of believed kind a calling basis, of reasons limited just our lower-quality, active or lower-growth

So this -- the $XX million is just projects. that specifically identified

a identified are placeholder move But around. on those projects. for there could an the now expectations that timing it's just Note assumption

about over making that, that And long Mike's are And fortify believe may that the quality of a year does terms really I'll NOI appreciate of XXXX, that sure that. sustainable our we do the just really add. in we I shine believe comments spotlight growth a We portfolio. that on proactively really managing term. like

come a X% that to transactions just a to the that with year's bit that. while more that that's more of have looked But we'll a and guidance to we and market. said, disposition regards cap through So placeholder. move rate clarity with movement as perhaps market added year did at as Mike little We last come,

the and our enabled of of growth important an and again, has I one NOI believe property end to, the higher committed remain it's industry. us part we that But same strategy at to deliver

Thank you.

question. your with Please with proceed Our Craig Citi. question next is from Mailman

Good morning.

normalized of guys Just of types bit end cash. little back the as you or want what back give by level? I'm quarter? could from sit fourth of X%, today. to you think and to we tenants color to just more of more accounting you of on the follow mean, what's just of the move up the in to on move a here X% And the kind year tenants what's the transition I curious, a that maybe of where moving probability accrual

Craig. Hey, Sure.

in at as X% at we're So mentioned that's down I and significantly. year-end, the remarks,

the largely of was of XXXX personal -- ABR. tenants, is shop XX% that I in small that at credit, question what more of think local is watermark and of just And that originally. was reflection The is who who the high our to peak services. your a it's answer

out actually a And set a bias It West to the it who to of those up we've specific for who -- are requirements bit it very that conversion. being came has later. now of kind tenants there are of internally Coast from the qualify because impacts

on and no rent so been for billings, we have current what So current time same nine period or of around months deferred anticipate. a all is

hurdles. pretty they're So meeting strict

And is point call, with this tenancy we're the about satisfied I extraordinarily mentioned conversion about forecast of health our expectations. in $X.X million worth quality of included and To of at we on your time. point the That on into our XXXX, have X% ABR.

is I years shoulders think impact respect the ago, of cash in the that. I higher So where we the code standard accounting than X% were we'll brings That to our down touch tenancy to X% of new than settle think -- from is and if higher probably in perspective. area. we code basis ZIP that be. But with another look given you for to it's X% over out a about a us ZIP touch the where the A

on market maybe little bit, feel three visibility Could what months the give whether credit? it's a today, of bit going separately, visibility ago. leasing, business you back color you Lisa transaction more better aspects about a of the helpful. And your tenant you to than you like just today then talk That's commentary on have of

also, to -- what guidance today, sit if you just months of give kind three I'm three where today versus kind ago we were versus ago? curious, And forced directionally of months

Answering mentioned it continuing and the those are pointed first, tenants of are three remarks, the another how to grocery of months markets, It's no seeing the It's all to. fall, seeing in that my restaurants want for starting as sales actually our come stores. were prior we everything months the market. above. that and rise transaction to to -- properties months I our it's of own. It's And activity leasing at situations and seeing competitive we're It's we three of performing bidding months high-quality to in another pipeline. ago, prepared of types our properties three three literally building the and you with

of lot If would So conviction and to make more us Mike, can all give guidance would just I the just I of forced it's what X this ago really just to be a reasons ago, all thee I it today I similar question. confidence that above the months giving have to confidence. did. just say than I sure was answer months at did we I'm I is and looking stated. that Christy that that because

you. Thank Great.

Thank you.

with BMO Sanabria Markets. from question Capital is next Our with your Please Juan proceed question.

the for changes Hi, quarter bit fourth a thank a a or I was delve the into that noted and maybe in expense elevated that the hoping into Mike. Maybe question could and you. bit little were 'XX? for year you recoveries just morphed how you

Yeah, down out. supplemental, impact asking question quarter you I for impact point can and XX basis It about the full diluted appreciate the and that is It's the pointing in Sure. alone. bps. see positive the year to a you and the in XXX

quarter. billings that to actually the from the in quarter line do the seasonality recovery perspective recovery in be tend some a there's item higher that of on -- So in fourth end ratio We side. the

of expenses higher removal, a bit of like like rate. real a just taxes think can You collection that estate snow have

really them. it's I'm also drivers of to a component, the a lot of Another through larger Juan, going But unique. bit little is some and things, go one of

impacts, ultimately Going bringing supplemental the well. and those for And billings. get remarkably tax impacts incurred, here One long the now took tenancy municipality the to in cash it to through then Prop billings were basis and XX collected Equity back you're later merger some as as expensed but

of thankfully, gratefully, and it XXXX. we've collected So all in

well. that the a bit being into Some of that's of bump accelerated as causing quarter fourth the so

combination We're about X recovery area from collection outsized perspective. I our think into of fourth holding driving you in things XXXX would steady your a rate a quarter. about the model. really impact anticipate XX%-plus those that feel I that rate. that it's as really So good in

for for space? of and Amazon, do Foods grocery sensitive your other but to maybe there Great. across their a signs regards to think and lack is And Whole how you're then thereof stores what brick-and-mortar using from new appetite question, them space, concepts demand guys any on you the just with other with there regards traffic And weakness versus concepts? foot

the appreciate I question. Juan,

performing in they're portfolio. still really look, So strong our

in given a as and how They're the our of Nick on in the Whole of discussions stores that they're maybe we have We have at that new conversations. can Foods terms bit abundance expanding, portfolio. touch on a with looking stores his relationship, great

really our coming in certainly is around them, the we terms traffic assets. totality foot love merchandizing great of a they But with back retailer that remain of and

Yeah. grocers just continue the from there's just expand add, Juan, right as lot alluded now Alan around a to a of of to I -- our to, would demand country. there's lot

and grocers performing opportunities do expand. a that's driving our and well, is our them grow really excitement others. lot with to as continuing so of what's such want about Foods And excited key They're portfolio to we're development future about Whole

you. Thank

Thank you.

question next proceed Barclays. Anthony your from is with Please question. Our Powell with

& points in Good the more assumptions is debt of there to bad much guess the Bed XX basis for number? like question known a much XXX year. And situations cushion tied morning. on How Bath Beyond? I how is to the that

Anthony, Sure. Mike. it's

a lease impact come high that of on important a loss end it's maybe remind could that's midpoint, credit with expense, everyone, it also, low through together uncollectible a think combination from I and rent to And how about to scenarios when about in like I reserve, we base from lease rejection the talk bad Let's of the or think a is bankruptcy. income debt think end.

a base item. expense in it's as assets the line well as of So combination rent

a From go there. scenario the standpoint, let's from with midpoint start and

call We classic are midpoint scenario at our of reorganization I range. more the a anticipating of what would

that points. encapsulating XX XXX to top the to is So middle really XXX bottom. that to the basis XX in the way, And by of

Alan reorganization, on that closure Nothing's But would classic what that a have for So scenario the gave at they've us least. been at be in not identified rejection. some intel That this point. clarity mean happened some been midpoint. does for and identified stores

be full guidance. the of scenario liquidation be captured to a know also our by that can certain this of name You low would end

-- we that very process, we to are comfortable comfortable if happen soon scenario. would follow paced capture low range that So were relatively with a of here the that and to end our are that filing even a quickly liquidation pretty relatively

upper and midpoint that into -- extend actually the I'd say, the scenario I'd then then end. And

be frankly, that be of happens an they unlikely and at concern, range. lot what are is our no may of good scenario a a to there all would that that bit little if Bath going Bed an upside So and closures as guided a continue

there's actual also loss, Now a the to XXXX we I an credit in so call, it's increase respect expense. with mentioned XXXX outlook recall debt of are little bad performance. versus bit

merchandising So good little may aware our the in the we'll really out of plan bad And perspective. really from our debt how I just quality progresses. headwinds bit about about a good, expense be but all what feel a of there classic the again, more feeling cushion are see there. potential tenancy, we year

acquisitions. more one And on maybe

play you your you cap transaction of assets you're out. year seeing Lisa, given potential what volume, do How be bidding in processes think, more mentioned of that cost to own rates, capital? your view this you acquired see I

targets, spend. of we're strategic even the and leverage and to within debt We us investment I'll gives are the we cash point even just to our extent generating $XXX flow. free do million. that our north staying potential flow, million to of the we that leverage debt-to-EBITDA markets fact neutral balance able that net cash But that have sheet access development $XXX

you of say we all get be to earnings, rate act. checks it the we're will our If three So be accretive active. quality, me future tired poised It to we are the hearing our to If has right? active. it's and probably this, to positioned boxes, accretive to be to right growth opportunity. And accretive

you. Thank

you. Thank

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

about slides, start months. talked Hi. think, that it's to you the In five over like your next, I XX or XX could XX redevelopments

what's should process how on returns those look already wondering, to today? Just compared in

what to very Thank is historically. you answer for question, simple similar seen The the we've Mike.

our target so redevelopments And have not on returns materially. changed

our so ones you in targeting are that our And similar for ones are and at process, redevelopments. we're future recently returns when we've look completed that

Got it.

then, what guidance the But ins Mike, are moving I outs for parts the and occupancy Okay. does of a year know assume And commenced with and lot there level? of occupancy.

that commenced, what's plan. SNO the base flat And lease our were and I'll all item. leasing rent rising And our the I if two driving it about to if to pipeline, of level said layers, line -- think fact I But think that's summarize -- that the that to a of Mike. to like that in about bankruptcies slightly it's about base -- when to is pipeline appear. think negative what percent as we're and I it's the in it and call again kind that going -- deliver I billable

lead for could layer flat the percent However, slightly maybe negative bankruptcies, when my to of us possibility you outlook that a leased. to in in scenario midpoint

that on re-leasing excited really the good comments way. afraid lot best some Not actively to potential for come outlook and the it working back that to news would vacancy occupancy of a there's outlook but also in But Alan's today. of space So be on there's that our occupancy.

should of as we roughly flattish? So it the midpoint, think

scenario I with the tenant respect of in the question. Including a to outlined scenario reorganization

Got it.

Thank you. helpful. that's Okay,

Thank you.

Credit Tayo Our next is from your question. question with Okusanya proceed Please with Suisse.

Hi, thanks your how everyone. Lisa, acquisitions. morning, comments good for you're about around thinking

development, prioritizing the well How you guys made versus You or today. pipeline. share accelerating guys just one capital freshness of redevelopment of cost comments think the kind as given do also just some as other kind redevelopment of and acquisitions, curious, about repurchases? about I'm

be not changed. The use of redevelopments. continue will best to has developments the returns. and best has prioritization capital get That the and been our We

successful over track the you, disclosed our of delivering underwriting really record which acquisition market. are and to premium that a a competitive we have bidding clearly We underwritten returns

invest we in earnings, quality capital time, rate, two that will in successful to on that. future then an growth some bidding quite the closing as check we had off-market I do well. that actually two invest, were are shopping three really competitive the of have we shopping as our been of same stated. high-quality those all boxes -- past to to those centers able the We accretive and as And we've one to accretive been if years, accretive We've centers successful with or and At well. boxes, check just to active

And use few a share to repurchases, we've itself. times significant a the of be advantage we the to had what continue quiver in believe that the opportunity our presents Regency, the will history when in opportunity market to dislocation and of we in take arrow

thank Great, you.

is question Please Rojas question. your Green next Street. Our proceed with from with Paulina

difficult there so transactions on Good millions a of are more was it's but -- having are spars retool and still before, of than hands. morning, it pricing, of and hundreds dollars exchanging

So for your the product what has year? changed last of pricing since, your assessment peak how say, in let's

activity said, to I'll thin. -- you've going from are Nick Paulina, market as seen again, results pretty with we is is -- Barry is But I farming Nick's kind really to the opportunities. falling, going still as Argos team this he's of active, transaction those I'm the along handle haven't as let one the been

that. So I'll let Nick address

question, for have add. the lot don't I a you to Thank Paulina. it. Appreciate

As specific data just point can we to yet. aren't Lisa points said, there

we we country here our be expect market type assets for that However, and are around investors. for can There's the high-quality from to continue them. days as of XX asset, grocery-anchored in real to to solid XX competition next some in of have the do demand seeing transactions these come demand

to And specific But to highlight to days so XX the points expect of be quality here next, our deals -- the to close. some XX assets. have -- expecting these we some as of those it, we're data in do call

product a also and table of institutional we back that the Because investors that investors that of a sell product today. confidence? lot segment have are characterize to you hear regained selling point can at need are to And specific

demand you that back? margin the at So you the characterize seeing how coming are can

really -- Again, hearing be as underwrite we're to great seeing question. to we'll is it's specifically continues and broad-based. talk but as about as deals again, And our close, buyers able these what who team and the specific these transactions point were, to

investors institutional it's so around And the country.

And broad-based in seeing we're so broad-based the sellers, the seeing buyers. we're and as much as

right single the a the so that's in can't And broad-based to or both seller now. respects. I It's buyer institution point

last And anchored today? that hopefully can, think short. do centers grocery if the Where CMBS I is you market for one,

for Hard a to really not user. us tell. Mike. CMBS it's We're Paul,

that, So day as have to credit. that neighborhood appreciate centers I'm know familiar pricing product, close tenant with don't or resilient, with would -- not rolls market shopping are quality that I I I day. imagine the will us. -- to very market of would that as that product. underwritable our would grocery-anchored to for great I be rent available that

especially quality credit -- But of and than have borrowers capital debt great most. most market scale, less with today, We'll more the it's will limited. little markets, access the have relationships. it's as with today, in have reputations great borrowers access credit And Regency to but with like with

you. Thank

you. Thank

next Linda Jefferies. Our with from proceed is Tsai your question question. with Please

Hi.

With Just of centers? or little a to more in is transactions reversing showing inflation at treasuries up one abate one. is traffic terms bit, starting course your this and quick

to flat Linda, we're basically XXXX.

the good really feel traffic there well. we and so really performing Again, retail, they're right now. And necessity-based that's about

as are exceptionally performing others. are well, Our restaurants

a think back So right to steady a we're from pretty now perspective. state I traffic

Thanks. That's it for me.

Thank you.

your Our Ronald from with next proceed Stanley. question Morgan question. is Kamdem with Please

Hey.

me. ones Just two from quick

leasing back to going the XX% Just potential targets.

you current is? the run blocks, the Just that to out curious to what to Just that achievable building just of Is sort trying breadcrumbs get we Limit how happen. the for that need to seeing? outs? to move XX% figure and are see that rate

it's we quality in feel as achieved we last level. today than shoulder time even of past, our achievable the about over we own assets the that know we Well, and our the when better look we

we how that's So achievable and targets are. it's where know our

outlined You breadcrumbs. the

lease XXX on our on commenced that meaningful ability XXXX. percent small the I pretty added is talked basis The points We've We bps give about we third from element in XXX time. shops. of space would And I previous coming calls delivered rates. of at mentioned occupancy. the lease to

work only of again, than a our but material to of the time, really time. And going we in way team, that to a we're ahead that effort It's more need win. XXXX, not if lease of by that of then matter there's bankruptcies can get just that. not months kind time space But XX anticipating holes level, Ron, to leasing the So continued not there -- us in that be that we'll will say, achieve due be and I'll bucket sense achieving through. in we will time, put

setting talked And if expect for team really add, that, I strong. that Alan our is high, about, bar as our leasing would those not deliver bankruptcies, pipeline the just I would as and

We'd And we the in those my have and the to are bankruptcies increase have be have lot know visibility closures we a didn't if We momentum. hole occupancy we that expectation, from of able store bucket it. XXXX. in to coming,

then haven't just if And heard because I it. sneak could in one I Great. quick a

you about any how are Just on guys as updated to thoughts this, the Kroger the thinking relates Albertsons, deal and Regency? it

announced XXX much changed. report than were not they has they was XXX stated the actually It's any I there first this mean they they I just think publicly a stores they that's that transaction. looking what that not sell different. but Yeah. narrow more said to I morning had when where -- know to

though, estate us about be information, of combination do We've so leading grocery we them. believe stores we But allowed of know. relationships you give feel So we're our that -- what know really good. we not we nonpublic grocers material quality They're what real the the are to just a great they're wait is happens. and and and going and two Albertsons, with in the Kroger got of see what both we have good would both our to any know

provide more the both blocked, gets that, we anchoring estate, grocers still reason, in that would well ability feel our leading as about and think X their We if real in bricks-and-mortar really more some have for them technology. as And physical it our to good invest scale, of we centers.

disclosures. the Thanks. Appreciate Great.

Palmer are further comments. I'd you. for Thank the like no floor back turn this closing any There over to at questions Lisa time. to

with this us thank once Regency team we to all. a XXXX. really further also thank want look Thank year. I And good you and forward and you for again to conversations results all being for to morning, want great the this Just

conference. today's concludes This

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