Regency Centers (REG) 2 Aug 242024 Q2 Earnings call transcript

Greetings, and welcome to Regency Center Corporation's Second Quarter 2024 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.

Good morning, and welcome to Regency Centers' Second Quarter 2024 Earnings Conference Call.

Nick Lisa Financial and Region Officer; Chief Officer; are Mike Executive President today President Operating Chief Region Mas, Alan and me Palmer, Investment Chief President Officer; and and Joining Chief West Officer. Wibbenmeyer, Roth, East

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

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

a limit rejoin queue will an any follow-up opportunity and do we Lisa? on have X if you ask the who'd and respectfully to question This then Finally, today, the given the we to participants questions. everyone ask to you that questions number like so. kindly have allow additional your of call

had active everyone. and prudent capital Christy, you, morning, fundamentals and driven allocation. good and strong continued quarter operating another We great Thank by

strength. centers be macro new pressures of value. Sales and the economic but with benefit a business may Consumers and mixed strong. signals environment remains uncertain show that trends that price and we can our and inflationary a our shopping remained consumers, our to on While recognize convenience with focus awareness level a high-quality demand given traffic necessity, on continues service, to steady and to tenants leasing be be high-quality continues

SNO solid provide We tenants. and rate existing leasing our lease XXXX. to advantage momentum consistent will rent demand in sizable shop evidenced the This lease drive are of This growth with commencement and tenant taking record strong pipeline. new is activity into and our and and

Our continued available leasing limited success to is strong suburban trade with and the high-quality strength Regency's and centers supply. areas a testament of grocery-anchored new

strong value the is compelling the business exciting of creation of pipeline and our in Regency demand aspects Our one by tenant apart. assets areas that also demographically and high-quality today one on focus sets supported most truly

our long to team The progress platform self-fund program projects meaningful cash of and enabled existing on with XXXX Our as in success. as $XXX our track strength delivering executing make million with ability and of have continues starts another pipeline. flow, record Regency's expected of well free sourcing our to new

We are quality that to our centers growth also acquire to and when to continue accretive shopping earnings. able

repurchase. meaningful a take opportunistic I were past Westport, disclosed, values across balance public of the of with additional this an share Connecticut and currently also we importance allocation of the in to able our advantage addition stress purchase capital be Compo the Center market and asset strength and why liquidity IRRs, us position, a which previously disconnect with Shopping high-quality, select sourcing acquired is spectrum at are to upper an can't single-digit under execution to of in strategies, sheet As high-growth and opportunities Northeast. quarter to contract and in in acquisition we private $XXX million ability we enough providing May, the

well aware, we responsibility foundational our standards and goals our XXXX This you our and for strength, report, of past many along of as as strategy As corporate with published corporate are Regency. highlighting annual strategy. future is responsibility quarter, quality well balance our achievements also a sheet

list of opportunistically been we've to demographics, high-quality I is sheet move that we drive continued to these to but activity the Regency quarter. progress year, detail, of important sixth historically. These go guidance Regency's the talent NOI, achieve members estate and assets growth our accomplishments. In continue Our Alan? we've to raising outperform to value-creation disclosure recognition by evident us overall third term operating which to leadership strength the position best-in-class same capital seen the and GRESB recognition several real and and program first did of responsible needle we the us the are reiterate of more for I goals importance competitive favorably with we've our receive and have the favorable very that fronts, that in including range. us results strategic long in the on team over trade gives allocate helping and accretive industry allocation. in advantages strength our Newsweek's level pipeline made our toward year most more that the leverage strategically than capital, us eye platform include activity which now also more are including thus our second and development in ranking will strong the from appreciate full we we as allows closing, in a our our into all areas and we the and property people, the want in far, efforts companies with through halfway our sustainability in experience sector. strength but able for parties, and balance Mike leasing advantages,

good Lisa, and you, Thank morning, everyone.

and this tenant strong demand for wellness, environment robust tenants in shopping from personal the categories, restaurants, existing We off-pricing reflecting a wide demand grocers, and including in centers services. both positive new seeing continue have areas. leasing great success, health array of We're and to high-quality operating and trade

the continued Our judicious depth occupancy leasing well all ability success still and as spend. and recovery rents maintaining evident as in is while momentum in improve our rate, pipeline our higher our to and drive capital in expense

the to quarter, During percent XX percent we held points our increasing same-property same-property at commenced basis XX.X%, while our leased by XX.X%.

of $XX SNO Our represents points at million XXX pipeline base sits rent. and basis approximately incremental

our to blended of of commencement in in quarter, increases negotiation. able and As another net spreads this leases. previously, ability were the and nearly mark-to-market more also the rent we of timing rent quarter impact our and XXXX. Notably, also X.X pipeline pipeline million discussed retailers, we In of leases drive strong into drive we've the fourth have upper signed success, cash to not feet effective rent largely will step exciting square the of only our beyond XXXX strong spreads negotiated continued XXX% contractual GAAP than in but teens, were embedded demonstrating X%. of

our these and growth the rent growth leasing importantly, contribution X%. second steps rent Collectively, same-property activity high term healthy quarter, average on fees transactions. COVID we rent of new was quarter achieved in all But the in while X.X% base Our drove remained lease steps record in reserve NOI of collections, efforts excluding very at period a X.X% X.X%.

are regarding is C&S quality real more, areas closing, about we of to on for I and XX and The Albertsons our continued in will learn Grocers Nick, levels, locations the new unabated, call and be to of estate the the out occurs. merger with more valuable. feel we lease Kroger XXX to which leasing our the these Regency recent has if list our as becoming space we pipeline to as detail comfortable continue address underlying to high-quality the retailers supply to divest the occupancy Kroger of wanted from and operate, portfolio. Further driven owned expand. portfolio locations remains the announcement very our combined prior with provided trade they turning in we Before locations. In stores obligations, intend the combined limited by approaches of a Wholesale of Albertsons strength the but C&S XXX all outcome in appetite merger, our proposed regardless over peak great strong the

firing leasing leveraging what on to be performance all sustainable we long-term in teams are cylinders, deliver the believe the and Nick? current environment will operating Our ahead. years

remain exceeding growing executing Thank active pipeline, you, and new We everyone. of very quarter projects our value and creation morning, starting in the redevelopment Good XX%. Alan. on $XX million second yields

development an Additionally, as foot quarter project in Jordan we XXX,XXX end, component subsequent the will plan ground-up community. serve called Houston Ranch. square master within a center the new HEB-anchored exciting retail This to started

to starts Regency's with We the more master approximately center $XX million. million, a the $XXX developer, developing our with joint bringing year-to-date are venture investments being than in plan

and communities. high-quality retail master benefits benefits of new, discussed appreciate centers into we've to developers directly an continue suburban our calls, we operator the of tents to value of As adjacent Regency, and bringing developer, and experienced our plan the on developing prior At recognize shopping owner the project. groceries same and time, their centers high-quality residential

continue with XX% on our more great nearly We pipeline, make projects in-process $XXX to also progress currently X%. remains which executing leased activity exceeding blended than returns robust at Leasing million. now totals

transactions. to Turning

have bidding well the markets pools. recent deeper activity in as a seen We as pickup in private

Compo as anchored well May, and that on we investment Joe's Trader growth Our underwriting purchase Compo strategy of Center. Westport, our actively closed requirements. In is which Shopping Acres Center Connecticut, in adjacent teams opportunities the are fit our as accretion return, to

the which which more we've have on our closing. grocery-anchored a also We post currently center in look contract, forward included under you'll guidance region to note updated sharing and acquisition details we Northeast in

centers as we rates able at as for rate. IRRs growth assets been opportunity high-quality can these are in opportunities single-digit have earnings well set to relatively select today's our source limited where remained we a cap we believe long-term market, drive compelling both low to While accretion to high have and

creation acquisitions focused to incremental is on investment ground-up this to ahead, we is further opportunities including find high-quality it value true that meaningful source our accretive is teams It's difficult where returns, Regency. continuing accretive to like value for building Looking remain and but as at these create our our believe well ability as development new pipeline. differentiator execute opportunities, a

now one execute who relationships, right liquidity strength capital, low balance national combined enable the platform and only cost of projects with our deep be at and can Our and us fund scale. developers to of sheet

objective heard With visibility billion the starting million $XXX confident we years. You've our achieving about are and next more XXXX, XXXX, to in our in started this another projects redevelopment goal. Mike? million in projects and planned us of of over $X start than to of X talk development $XXX

morning, good and Nick, you, everyone. Thank

X.X%. share, same-property fees reported per excluding $X.XX of FFO quarter, earnings operating and and we For of the term reserve second COVID share period NAREIT growth, core $X.XX of collections per NOI

we recognizing private disconnect over and quarter, shares executed share. at on X.X% repurchase balance of sheet range, million, to the X% centers investment where an We today meaningful the to between liquidity and compared for X.X position. to the pricing, high-quality During opportunity average per sometimes cap are $XXX accretive This low representing even of private our bought in roughly to implied was rate to us was public an Xs. by market approximately opportunistic just grocery-anchored we million X.X% afforded earnings, shares market the seeing for strong the and $XX values in price our

our the net the our to strategic expectation end debt of within with leverage and well remain X.Xx EBITDA we midpoint an range preferred to around target. to Xx year Importantly,

including continue to flexibility opportunities, acquisitions. new maintain ground-up also developments new sourcing accretive investment and We redevelopments,

share, on close X changes. midpoint collections period to core midpoint, presentation X in operating implies refer in and earnings I'll year by our excluding now highlight Turning COVID forward the at details increased to reserve to Slides which you key earnings the XXXX. We X% this per growth our our some $X.XX guidance. through the

show discussed effectively previously. increase an now increase growth we X.XX% capital financing developments net share in in allocation basis X expectations equal parts XX range, the of a in our accelerated the presentation, Slide of of this nonsame-property by and ground-up activity, repurchases in positive As to impact contributions X.XX% including from NOI, same-property largely I've related NOI at on point driven increase the is

revision, We also for matching range by $X.XX midpoint increased our our $X.XX above in incremental per NAREIT operating increase items. earnings share the guidance our noncash the or an FFO at core

the we the this yielding maturity debt in January of second you come expense proceeds the parked the of our balance As a were about million June mechanics impact our $XXX much as a bond purposes, interest of year. half recall of Therefore, earnings modeling that of year, income higher the interest similar in deposit for reminder, for offering date. and accounts awaited from through refinancing the rate the as will at this think

XX embedded year-end, next to from Looking XX point the and to our see we redevelopment coming over the continue leasing to we progress. growth elements beyond months,

at approximately commence As is the year. about representing Alan basis annual sits which this points, of of XXX mentioned, our rent SNO by pipeline $XX scheduled base end XX% million to of

commencements within weighted lease the expect next quarter, our continue redevelopment we have outsized to resulting benefit NOI these are where commencement is double growth this delivering to which growth will points, the And completed years. to past to positive in of year. what an same-property from contribution normal experienced occur largely As the fourth XXXX exceed NOI part basis we projects likely in would with is pipeline, XXX

opportunistically. of invest capital sector-leading liquidity Finally, balance and sheet which of Regency and ability cost with the provides we continue proud to the advantage to position, be our very

rate. is nearly fixed debt all Our

years. were Our at net preferred allocation cash weighted debt range expect And available financial Xx to that targeted employ toolbox million to for leasing forward from successfully allocation reference taking in we unique that, with our generating remain tools quarter, we leverage $XXX second accretively operations investments a options capital close reasons the capital We all current earnings, balance an questions. together X various EBITDA, average strategic than look more and to our to free to these year your annually. Supported utilize purposely times. of to the display. With and on we we outlook often we within flow to full X.Xx of unequaled maturity had sheet our different within Regency's opportunity and wrapped position, increased of by management, continue and and to on is advantages nearly

from Our Goldsmith UBS. Michael first comes [Operator Instructions] with question

From quarter. kind in past all a capital perspective, allocation of you the did it

ground-up bought, development. you repurchased you you and started sold, You stock

versus stock touch maybe was cap to your of for back type So rate just how can Regency you about allocation cap in a bit what the about And capital at are centers little your talk market buy implied and of the you looking are acquisition shares? you treating rates priorities? caused the where kind

of the recognition And appreciate Michael. every capital Great. question. Thanks, appreciate I used kind tool, we really allocation. in I for you that basically the toolbox if the will,

for quite mentioned we we that. the they And execute the the all -- in on we offensive. our to Our in development able believe company, program, my are and repurchase in absolutely execute balance the quarter. And program. time objective of with that us. belief very to is our -- the to the goal share shareholders. sheet the we need And history in do value best with now use had liquidity we and to -- the consistent we've align to that successfully sector that capital stars capacity, did And a for on our strength, remarks, we've were we on the create our very is our remain in position, been that this intentionally to we some been how our as about And the prepared talking it all are for redevelopment

bought back between of and an we cap market implied So rate at than disconnect more public X%, has we ever pricing permanent private shares and imagined. much been our this

that as And were while the so Nick are just seeing see a that balance sheet market we're as been touch to as to we into rates on can can bit able well. lean in I we and cap have very we've our the active active well, acquisition you because little

those are would excellent in We're had and more a lot, seeing. rare. it seeing that what a lot like grocery-anchored bring conviction you're more to in And a We capital. And made an to the the trading in use share more those the mid-X and But a we're if that to of -- likes assets, for shopping love that transaction haystack, market lot Nick I'd invest that of are the rate the X.X. we range. Nick little our seeing are in centers, needle a are the touch say on quality lucky, X.X to cap repurchase

Lisa. Thank Michael. question, appreciate I Absolutely. the you,

bid are deeper they seeing we're As Lisa pools much to, quarter than were a alluded ago. the

pools. now disciplined to to be to So trigger to very we is are our fund bidding the going things which staying always pull to accretively. quality and on on the our more we're articulated, And that market have we've opportunities that very what have accretive growth and profile, we're have

so And we've disclosed that this the opportunities far so year.

boxes, not rate the driving You that are check going a have boxes, mid-Xs. that they comfortable, did can We're well been and have all those yields cap those there stay we disciplined see sure lot the accretion. check to are and we are making opportunities those in below of traded that in in but market all very ultimately

seen trade we've in low so things the Xs even. And

America. from Bank of Our next question Jeff with Spector comes

I question. do repurchase confirm I $XXX program just know X that's question have to but on a left? markets, it's Can million, I clarify still on the the

Jeff. No,

Jeff, -- repurchase and our Board million. an about open $XXX by program to just board of have at practice -- So authorized level as likes we a like the a

So our activity quarter the exhausted previous the authorization. in

simply So refreshed the for another authorization at million X we've years capacity. $XXX

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

a small ticked I bit sequentially. shop the down noticed occupancy little

is some for in you're that Is any seeing small of healthy? the shop color still relatively signs on the particular, behind side, stress local Just curious that with that. mom-and-pops? there Or

and national what no where our rates is how up year-to-date. also the regions, short level. historical underlying local about remaining have Juan, trends which we to it's the XX%, been. are slightly the Alan. Sales X% the year-over-year, fundamentals. in traffic Again, above would being we're you are about those both no. above foot of in point feel over and health healthy. thinking Retention are There I answer terms appreciate We is of mom-and-pops. local I is national question. concern great The both

So The that as a occupancy. to a all feel very together, we testament how today. that I process very comfortable that's And think for sit portfolio go of is we put durability we largely of through teams healthy. certainly rigorous where qualification our

way. be higher about much and are with we space It to it's merchandising. think better we like shouldn't at able re-lease it, back in position this But comfortable interesting. we're getting more the in, it we and it are that When strength rents we're because seems of when

we going So we comes renewal, if are isn't -- necessarily tenant pay. what when lease for a them up pay to to the want

happy on. are to We move

question Scotiabank. McGinniss next with comes Greg Our from

Greg the on Viktor to This side. wanted McGinniss. I is for Fediv just ask on credit

have Are revolver. we million new So for more decisions $XXX today we've on now to than cover bps that? now within the a seen decline on XX bps decline you market month. and last XX the Because

just on So thoughts that. curious what's your

appreciate question. I the

very First, say revolver billion recast comfortable recently our we're we so $X.X of We liquidity capacity. I'd today. with have our

correct. You're

from But expect, continue to pretty monitor we those a rates. markets. in XX We have have are to spread of in bit and perspective. in on see type public of at been that choppy, largely at past hours $XXX base the It stemming second towards that the largely a we'll unsecured treasury and bias as million expect a long-term to. do drawn us a rate, a with credit is attributed to That's significant investments as repurchases. We're movement, quarter, basis -- you I rally little fixed start active made weakness you monitoring would somewhat the capital on would oftentimes financing also we from the markets, a mean, have our We seen facility. you

and So facility is be going, and highly just will market term that when the think where attentive expect appropriate. we us it's attuned to out we to

Mailman from comes with question next Citigroup. Our Craig

having difficult guys you of XX-year interest been higher good financing it competitive the others kind least for potentially do or going pretty construction lower an harder projects on to here and guys peers. just pullback position and rates more But maybe have becomes environment here, in source rates in feel start a to it liquidity the for given for option gets a made side, forward, going the forward? like as But you clearly, you development at

there's the defining development Yes, heard those talked these on appreciate Craig, one as question. Nick. again, this we've a is say them. capital in executing look, lot time a and goes lot, key I that you've components. time and of opportunities is And about me

which opportunities become the And on others. needed expertise for is to so open that and some and But does relationships forget if does capital available, find these other not opportunities. let's up X execute ingredients,

but those expertise the And in the best coast and tenants so in not that team also to brokers the clearly, we expanding, continue we're have the with only relationships to looking our key coast. in. business that And has expand to markets the are landowners

more regardless as get look pipeline share capital our we're fair about as opportunities we And of continues our around And these markets, we to really so our opportunities. than to arms feel of these good grow getting ability forward. shadow

the Our next Samir Evercore. comes from of question with Khanal line

And year, just on [ I'm you've first point. clearly strip bid or see exist whether at understand Can much next growth see in be on 'XX to of put just kind -- push from versus what best this that you how how to just much to trying ] for could incremental right? more out of it's a already there expand the trying on start when will the have growth shop the trying occupancy opportunities one I'm sector can you space? you more the

question if think pushing just petrified be and pushing I team I'll answer I because keep might and pushing. the this

I'll Mike So it. answer let

we're our you I excited materials to you there's beyond fourth XXX investor fundamentally, team SNO of Let runway our and point near-term points that of we And in and for into cover have nicely dovetails that. That comments the opportunity. to percent our year quarterly quarter would peak, Alan, commenced Page that helpful. about really to going me largely kind $XX we're us million start, that pipeline know and built, historical very the prior has And commenced growth. basis XXXX. And is Samir, And line. the my gets in that's the that bullet I of this what X so just of starting occupancy can what is we think compared on prospects indicating that deliver up. But

seeing, chart I quality the increases can about of the see As over our of being to team the and the it basis we churn. X- at any points that X our can't and demand achieved forward to -- don't see still significant period, think make than look equal, going as percent we're And why to process going think I you there's reason we that X-year all quality and right? take about leasing XX over You're have near commenced will longer the year term. It's going a that replicate period. be about post-GE of GAAP else portfolio, differential, recovery to

You're to going move-outs. still have

be As very going we're our said, Lisa selection. tenant differentiating with to

than more take will but and bullish about very worth year's here. it from of our excited prospects growth time, So a

comes Kesten Our Dori from Wells Fargo. next with question

refinements process low Your you've highlights tenant to just versus through tenant pre-signing added year? any the on in credit Can and peers. the is watch list process evaluating you quite you exposure over the hit of the go last

announced we have closures, store filed I cons this for Alan. [Rue] not if our question. Dori, X. rigorous. of very filing yet the list basis think bankruptcy, although is our you not Eastern industry we We're bankruptcy, again, about occupancy. ABR. deliberate how thoughtful is that our X. had of experienced about think X. quarter, Big we the yes, Mountain lots Sports, But watch we approach XX, roughly to I for would has lease this It's for just in we retailers. say XXX appreciate had have comprised very and points X. We what do

at not that of teams this transactions, I with being on thoughtful aligning And so exactly go, have front. retailers, on and of great right we think but stand our feel just leasing how I where and the very asked to that in what sort look about about is we doing

to and of I answer started go short is applying concepts business leasing the ensuring our it term. are also our objective part in also and -- how shareholders. create create long I to And for first we for principles just the by we program is to our term, think do that every the create merchandising value we the can to that back I not question those

St. from question next comes Haendel Our

with Mizuho. Juste

Vaidya This on for is Ravi the Haendel. line

touch the and wanted the Just to TI. on CapEx

For going versus anything quarter, How forward? do leases trend there to a do expect expect you previous this Is it this little how bit in you quarters. elevated onetime there? new And to go?

feel I GAAP The are how is to appreciate about I that effective approach good prudently Ravi, we capital. rent the as bring would net very answer of question. us percent managing I of back a rent. XX% range when say at for very that also I trailing And comparable XX than that we're would XX% quarter, months. in with. look lower total comfortable to our is we're capital you the just it

or don't not it. is on trends team growing fundamentals focused shift rents question. your the I to underlying see And So We're but rent in rent We're appropriately. prudently managing just any spreads, the embedded steps well. as

comes Truist Bin with question next from Our Ki Securities. Kim

it setting a you're mean, I up -- year pretty So in like 'XX. for looks growth good

spreads. rent add if some course, step-ups at look you points and there's upside, XXX X% the basis and lease then on If upside pipeline contractual snow of you of from of

in can might that tenant everyone about to positive bring of But talk just some large renews. pretty occur the future. have any growth known factors. the down Obviously, factors number. you not can of move-outs get you big And might of kind foreseeable So those that if a you some

Ki Bin, you of that. number time growth well. lot of very spent appreciate wheel one, We our a communicating articulating I

we property to double a of anticipate pipeline to attributed what that would in of historical the basis same XXX activation next expect points have So average the spoken thank is we we And plus redevelopment our about growth year. you. year, which

lot that about growth. to a indicating. I'm talked about stand up providing from I the guidance talked come to any for a on short appreciate where going of direction I We I for commenced are we set that you're SNO the perspective. percent next get stop pipeline. as as headwinds, work. some there's effectively going more over, be But as side move-outs. back there's we our to into year, plan. and always we soon dig is to call as this

on You're always retaining anywhere of that everybody. I awesome to going selecting we to from I think role. provision depending know we play basis Bankruptcies range you're in do experiencing job don't we're points XX are on that. But could -- what and an a is who now. basis always XX to speaking, big a credit being wildly Historically going not want. And a different would our look-back than loss factor when who that files I anticipate timing

the lot So it. we're where had quarter. is We XXXX, -- year. end I'll are of more a we next at positive same into to momentum building come looking way but did last we

Our next Kamdem with question comes from Stanley. Morgan Ron

Just quick X-parter. a

of this on, open center lot the obviously, you're space. season, shopping looking at since we've Just institutional capital seen earnings a

if the general, just or acquisition address mentioned you way transactions really the front is, I then in the you're occupancy on space. And the on part had forth gain could so that and either coming just slides into the of comment a seeing deeper. second equity more and to did sort market institutional Can whether Just basis we market in? I so of if capital, you think follow-up a second on private already on the, Mike, pools I is or where have commence you points. peak on believe, where Any that concentrated assets? were to maybe touched really because as get Nick double-click that layer XXX it's that upside the Nick

any changed at kind bids just Nick, the all? the if maybe, the if it's seeing, composition we're that of different So of it's

deeper question. and pursuing assets the we're Ron, evaluating. Absolutely. looking at pools much and appreciate that for bidding are The question. No

X were bids so X And bids on assets. to now before where to there's maybe XX XX there

all into on Mike articulated flow reasons And for just so bullish funds in. we're our definitely we're class watching the that asset

bidders of institutional, are equity lot et it pension whether cetera. a appreciate, funds, it backed, whether would those you be be private As

lot assets so institutional of a And seeing now. question no pursuing capital right

Ron. recognized that a And perspective, that will about that also XX% 'XX, that is moving roughly to occupancy, to we be recognized next about shops, needle 'XX. I X as have XX% we anchor our year, Take our composition you'll up at that some we've and with investor posture and look a of the activity. see And I Page SNO Alan only income say, want to about of opportunities bullish be timing income working it's our think room I is the some get really may the presentation know team anchors. good respect I there, that the we would color to detail of thought XX% on you'll for pipeline. quarter, to -- though, existing from going on. some that of front, in think to up exciting on got XX% sticking run And some [indiscernible] on have

peaks that, only mean, definitive occupancy to to I XX.X% our at XX.X%. Ron, and put we're would thing Yes. to is are guess, add I it I historic the

So there are couple is deals certainly that stubborn right runway there. There's goal really I'll at been out there been them, now. the of, that have line a call right

some for SNO to we also will of are look would sitting about gravity online, So and merchandising great there are. I provide to the say that trajectory the grocery top feel that go pipeline, where we're and at center I synergistic I that with really stores that it. ancillary and get of are X excited

So great the looking future there. is

Van Point. with question Compass Floris Our comes next from Dijkum Gerbrand

answer the a peers. fact wanted The like formations. able think uniquely There's the in that it's to But I a to private of question, likely probably more September. bigger one I this. -- looking question, something of Obviously, Blackstone there's the ask coming is are rates interest down position you be perhaps. to at news, Lisa, picture you're your

the price rates about view? sense. rate headed in comes And your your little X% see shopping cap get curious a could You in you the XX% do cap pretty retrace and down we and IRR interest sector rates growth your as higher, back appear that from over bit. But the is some cap your come down the gone XX of rates talked think frankly, than it's to back months from where stock. is I'm to expansion in so are being capital XX bought still stock a center itself little bit interesting? I mean, at you as assets implied Obviously, when more next

back values. had believe regards the to private that to we not market would Floris, a repurchase. -- the the thanks executed with We have share what meaningful I question. would for the go to conviction discount we

we product cap because what throughout it cap down rates And a in centers. think that grocery-anchored, the our see stability be thought I that's we rates should time the don't We've sticky. rates potentially future. when are cost believe and if sustainability rising of And that rise, higher-quality financing product seen with really would were type going shopping type, cash our So I offers that, of cap that flows.

they down, coming you more are perhaps cap cap should say think and if convictions to the up. with sector, have anything, in the And are. would private we go where the going into So that's scenario market, stay rates described that capital I not rates

comes Our Linda with Tsai next question Jefferies. from

Could Xx positive online just the underlying rents? of drivers? Does from points being do higher-than-expected on it in the coming contribution basis average. underwriting have of you to some On redevs expand the XXX XXXX with

It's really Linda. specific. No, project

have development, a little in redevelopment And which acquired of about we much several opportunity totality, Equity the to frankly. we time, redevelopments. recall, last go years, in if in back been Going several back over talk through the our bit merger us years the that's working One you that kind pipeline, more of balanced

these income the on They've well largely way. delivering been now into their are property we're constructive. been leased, pool. that and same So They've projects

feel of by rates visibility. about [indiscernible]. the it's and So a than is our the which, quantum function delivering projects adds more rents the way, to of on really good We transparency the it the

comes question next Our with Instructions] Okusanya Deutsche Bank. Tayo [Operator from

us occupancy, already about quarter. on pretty that occupancy the what In high. commenced could think to Congrats could you like is into Again, curious look XXXX. if regards going help

strong as new also pipeline, large through very you're going very well. but a leasing have You

course what So could of the over just end that months? think where going snow and the XX kind the look of over XX next curious can next up months like you

And of commenced I but -- to the basis Page at occupancy reflect question. basis changes our materials, if when can and investor to in historical you points. really commenced good contribute to of XX years, much up every granular we points -- can property you same you the move the XXX appreciate percent at I I'll promise, point that visibility it's increase number level by time. right XX growth. points it's points. And basis about again, But X, on in that I'll we'll in XXXX our give more recall, XXX basis a

which basis we comfortable Again, points moving get of would basis of give is here. commenced points, XX us timing that growth. redevelopment, XXX the XXX occupancy where being basis XXX So indicating contribution matters about bps potential that's points the through

and opportunity our the want you investor the of some materials. in us, into too think to that you set I So appreciate would in should front that time I don't on XXXX. But on X I help encourage understand spend weeds just get and to Page

from Alec next Feygin comes Our Baird. with question

anything the Kind about the explain competition is to there Regency what's driving And there? region the the of increased curious Northeast? in seeing that to activity specific is

question. saying I'm It -- not the sure you're we understand increased transaction activity? the

Yes, sorry, the activity. increased transaction

tell Yes. Appreciate I couple would the question. and just you Nick. this a is

of up a just things. got that Obviously, the that's presence active So it of a acquisition is UBP of there, lot also increased throughout our market. couple very our team timing. and very, But

Northeast activity that been presented. the quarter, and country. this of although active with opportunities have were lot the so very we across seeing in And a We're very the happy

into geographically think move And past it quarters, that was this be you'll see than I so more activity as dispersed we future quarter.

opportunities at continued markets our each presenting of point. themselves in So this are

comes Our with Mike JPMorgan. from next Mueller question

put have seems concentrated? are recently. to I When opportunities kind here Northeast lot work like between the today, you more a of the [Erstad], guess, at under pipeline the contract, looking it you geographically see that the Westport you're diverse broader center you or of still up capital acquisition and

to Mike, yes, we're coast. seeing coast definitely opportunities

quarter to just up the But our I West opportunities. relates on the working And know Central and region, region region, is a is the timing the is Northeast. doing continuing to there they're it well. waiting opportunities find as as some this it so for announcements And related Southeast team anxiously great job

good we're the all And seeing moment. country around we feel so at about the opportunities the

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

I We your to for thank Have a you in approximate interest of spending us. appreciate the weekend all with hour last you. great Thank want all. Regency.

conference. today's concludes This

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