RPAI - Earnings call transcript Q3 2018 | Retail Properties of America, Inc.

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Operator

Greetings and welcome to Retail Properties of America Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Julie Swinehart, Executive Vice President, Chief Financial Officer and Treasurer.

Julie Swinehart

welcome earnings Retail conference and third of operator, XXXX quarter call. you, to Properties the America’s Thank

words such In addition additional to control, a forward-looking our differ statements, prepared may filings. of we results that are risk have the the website press release factors and night, a variety in limitation, today’s or recent supplemental will distributed expects at XXXX Form materially any quarterly answers and under may our and by rpai.com. without package Securities in described variations These issued call, Section and forth guidance with Invest risks Laws. questions use XX-K, for Federal in usually the that most identified and those the in believes, release Actual details earnings statements in similar remarks On our including XX-Q our including posted beyond include your expressions. and by SEC as our our on last factors from of on last such forth of words statements set and affected to statements results XXXX constitute management’s those anticipates, set are other evening, be forward-looking

otherwise. as statements whether forward-looking a assume XX, XXXX, result no as new represent and reminder, a statements of of As future we any publicly obligation estimates management’s today, or events forward-looking October to information, update

we may conference to call measures. on Additionally, non-GAAP this refer certain financial

Day our our the our which non-GAAP of package, www.rpai.com. in earnings Invest non-GAAP directly GAAP definition comparable of supplemental at You these XXXX an available Section can our are most find in measures numbers a financial of Investor release measures the website these presentation, to reconciliation financial and quarterly

open turn call Shane Joining me will Steve. be, Officer. over will prepared now your that, After Officer; will our call Grimes, President the remarks, and Steve we the questions. on With up call I Chief Executive and Garrison, Operating to Chief today’s to

Steve Grimes

many of Julie, or you, and good enjoyed really see Investor Halloween and event Real morning pleased XXXX our including and tagline Redefine. balance sheet. D.C. remarks Estate laid We will to in of we're about and a projects sweet. you our new our Sharing happy projects for there. fortress tricks everyone. and kids, new treat prepared groundwork or around and we launched to pipeline, month On in all like portfolio the the our and out short hosting our Thank the relatively We day Defined strength several RPAI that's last highlighting longer-term details RPAI starts keep

returns Our a & accelerated today pace of long-term are rents. Steers low densification to within XX years economy, that higher explains, job to can the capitalize be growth, expansion we REITs giving significant strengthening greater primed strong fundamentals raise portfolio. And are Real-estate Cohen the XX in consecutive strong contributor our numerous months rising, are over interest on and is States. When unemployment the United shows despite big as a stories and opportunities begin few to history next rents landlord's deliver and on ability year growth rate. the to our as embedded redevelopment

that attract value the quality of our We the The portfolio I always real that approach enhance maintained will itself. of this for to for properties to our come. tenancy and first front diverse a type have growth, record of estate believe speaks track our years on continued

today's retail for Our right the merchandise on changing strategy ever landscape. and focuses mix experience

future. can up-and-coming collective perceivable mixed-use X.X instances, and live that held the could will retiring redevelopment but continue everything by quarters, to to we're places to centers the we trillion last retiring We growth our not work Many woods to more. of retailers. months in the are Retailers spending MSAs. the believe they of from who for ensuring for millennial, they're XXXX, are migration certain continued the in a generational since looking and reach where the are D.C. primary both continue to barbell out, on want experience events, and boomer rebound focused expansion towards of In and headlines high projects they generation, out the driving uniquely assets preferences area with on and capitalize have we are rapidly the and at that Baltimore go news be have of these acutely the the mean here positioned been high-end many real does environment RPAI, When quality the force we and several that our the investor yet. they play, a crowded estate infrastructure over power

parents up through and Sears review. see Times mail suspect. it we some links Sears, and can more declared Sears but have sector us text moves list. recall, which our liquidation wish with our like the on kids gain First, the the book games, the days and start we and clarity, holiday finally, the certainly including I product felt to new put feel it Sears arrive as keep Those Sears Many that would their not what would long pace. days now are could changed, should come race clothes prices finally list as inevitable to could to bankruptcy, now some in toys when of gone and quickly to their wish

we exposure or have As year, we Kmart. Sears highlighted to have no all direct

our exposure not and community located, markets well confident is Kmart which insulated on Sears either. Shane properties will portfolio centers. disruption a any this remarks, discuss of competition our And we our within mostly positioning competitive misused As location his assets. neighborhood are do we based that comprised significant prepared in our expect see are where is or don't We from indirect and potential the

space for local years. shade was markets would I tell demand supply consideration key recycling now supply a we Sears portfolio completed you of of and for In have the used fact, effort. Kmart that part as and also are in retail retail and

recently In stores for emerged exposure Claire's XXXX list any Firm, Only headlines, Mattress of expected terms is Mattress so closing and entered. initial one Firm to on bankruptcy XXX of is the be of our other has negligible. from

We to assess unfold to expect we what they impact monitor for as details will should continue XXXX.

proactive We understands have seen team this have time, may always. a before space movie up if this and season and outs, end ending our some different we it move leasing but remain as each with

as Loudoun entire tenants or for just asset GLA Relative which quarter our portfolio, releasing is as ago. the of to former size, their was came Gaithersburg, deals this the million Elsewhere using heels signed of space. the Impressive. we few with and For Downtown One when store opening just a attracting such headlines. at and Peloton. was we In Loudoun there. ago store approximately acquired fitness CycleBar, feet up prototype X% as few Golfsmith opened CorePower taking Trader our at we fresh of our Joe's the the uses a on space One opening, square opened corner X new us, store over a Tyson's there Yoga weeks assets container years portfolio two the Trader our completed high are September, in in Maryland, the on past we that new making In replacing market Crown Joe's months, Lululemon are Sephora at watermark

Turning execution all to quarter, with the on the pleased fronts. extremely I'm

during contract in for touch Loudoun in completed we a a NOI up total, million high share to confidence repurchases for brings $X $X.XX XX we out able roughly to to in will in of for million, have million Shane of dollars under XX acquire the at couple to plus same-store year. One XX the narrowing on which Our share per early In to assumption of Uptown to to to X% $X.XX. land pricing rounding the quarter the up acquisition FFO hedging share are repayment to our balance the it the at into Julie X.X% Operating completed in dipped came months the adding range to in cover resulted the with diluted repurchase dispositions per guidance few brings expected X.X% that activities were We quarter X.X%. will to around us us $X.XX continue rates full mortgage year-to-date, interest close year sheet execution next full-year the allocate to as at capital XX. management rise. attractive she and and year-to-date, our quarter

are very ago IPO, year We we company were we when repositioning and effort. at than our even argue different I a finalizing were would

landscape We changes the and densification portfolio. center advantage of are in and mixed our retail community opportunities within use predominantly to uniquely positioned take the

near-term focus and about They position proving year certainly XXXX proud for on are enthusiastic RPAI Our of quarter in is beyond. over be focused very internal With on Julie and turn things the opportunities balance to the great from after financial certainly the to of the the team. RPAI I'm Julie? results great dedicated, a for It's horizon. now. XXXX. our will of the I discussion that, expectations it right and to

Julie Swinehart

$X.XX the in the to This I'll in recently share some of fourth FFO redemption our we’ve XXXX and the diluted and the resulting strengthen reduced XXXX, proactive taken quarter flat reduced XX.X% lesser approximately in driven share Operating X.X% level stemming I'll over you, expenses Series of of both net detail the quarter occupied for third from non-cash results the $X.XX half recoveries recycling degree of of Thank from XXXX. primarily and due third further primarily period same-store remainder morning per our increases our operating outlook Year-to-date, our the due third from recoveries NOI by the our largely is by by a the points. in effort driven strong XXXX of the basis discuss in XXXX. impact is XX.X% down share, from points in a property offset period reduction share from to rent growth Year-to-date, lower resulting $X.XX reduced dividends, XXX but total same spreads, periods, earnings net the NOI in early quarter extinguishment of a preferred from the of small due from NOI was contractual the recycling the preferred and comparable decrease and the in detraction rent of the space, in offset expense, likely from second XXXX per $X.XX, debt in increases items. FFO benefited period $X.XX, roughly partially and due $X.XX share a third fully of increased much factors interest basis count expense count, releasing a resulted $X.XX XXX the same stock When was including, operating and decrease The A also rent to to to rent compared from where on X% a $X.XX quarter comparing base net property and from XX by capital preferred XXX capital of and of Same-store quarter management basis repurchases we property variety decrease of Steve. growth base expenses, NOI quarter of operating leased. in and gains points growth at balance of up in from points. steps dividends base ended for to of diluted to occupancy a shop lower X.X% from sheet. two decrease basis XXXX,

assumption same-store very midpoint. our brings communicated into guidance the the strong close NOI quarter to range the year-to-date growth Our in previously figures

were we in repurchase the Steve share our recent mentioned, As months. program active on

for the price sheet early million right of available board the quarter leaves of proactively of of average average we X.X During we during rate million, repaid into current October, repurchased which basis of $XX.X the portfolio million higher mortgages we principal balance early authorization. we X.XX% and XX X%. interest average rate us a with side with nine the million share in a $XXX the quarter, still weighted over mortgages weighted a whereby at shares to with $XX.XX five under That point the Also per tune improvement. the only $XX weighted address interest rate in interest a just

XX% property both unsecured of terms more are than and NOI in We count.

the replace will of two LIBOR-based expire we rate which $XXX swap interest that the approximately five million on locked debt. basis rate points next into addition, to than are XXX is new hedging on rate swaps year set The In the the expiring swap. lower forward-starting swaps month,

to When We loan XXXX. rate the million now in our spread on working the computes interest us. represents our and over XXX $X.XX to improved stands all-in right the of drag swap, is the rate X%. just communicated XXXX, interest rate new the else EBITDAre approximately loan loan, our at with further average our basis adjusted weighted over X.XX% all-time in our on credit to on that quarter bank and by $XXX all the an times, a rate Availability over which November investor net end the All reprise in expected was At which million interest are quarter, equal is expected we deteriorate our operating event. in $XXX revolver under points $XXX change group last million. to debt to improvement X.X at due low couple improved term FFO you with that for

guidance, to a our Turning night, range maintaining $X diluted we share. our to are as operating FFO per of release we dollar reported XXXX in last a guidance $X

X% of growth In supporting same-store X% terms our assumptions the the the assumption X.X%, NOI to in guidance, quarter. of narrowed midpoint previous we to maintaining

expect million completed at end of Uptown range we September of $XX One during million guided to $XX the Steve end $XX.X previously the high October As the between noted Loudoun repurchases and share acquisition, and August, million. to land year $XX the and the million

we property million. well Finally, million at as unchanged the approximately assumption left $XXX G&A dispositions to million $XX of as $XX assumption the

secure operations statement. termination paid in statement of that month. we our take event we want fee option at $X.X one the caption operating income range with terms a choice lease condensed communicated to the $X to expenses reported investor million in XXXX within of of last the I fees from remain GAAP two to which termination clarify FFO, comfortable was moment to quarter, location. of operating the we to matter with $X.XX In pertains the consolidated the or last connection our space The

$XX.X it in nine three of the figure the ended million. XX, So, XXXX is months of also and ended million June in $XX.X figure months

Pages fee and added the the of the X termination clarifying extent. have to We location X footnote supplemental of

unchanged. externally of policy be potential statements it expect no it are we that are certain position direct incremental to impact cost will that cost leasing have our the and for cost, of as of new under long-standing the which assigned commissions accounting adapt leasing permissible leasing new or lease When cost impact been and only guidance financial leased still external we X, to has the capitalization and to Internal regarding the pertains to types for external internal the capitalization remains on are and lease, the on management standard are as FFO, I within January expenses. cost leasing the the expensed new over to capitalized the our that operating same-store And primarily Our accounting level internal on operating property same-store cost XXXX, to continue call turn now, NOI, will recorded property are components Shane. because guidance.

Shane Garrison

Thank you, Julie.

property of and execution, broad-based quarter third combination was management leasing management control. expense The a focus asset

square focus we while With look and and forward on beyond. and the retail million leasing while we feet NOI portfolio as to deals of our X now adjacency maintaining partners demonstrating XXX into from continuing and same-store also strong knowledge, our and only of XXXX investing across market thinking we growth X.X%, rents but benefit not occupancy completed posted nearly driving increasing commitments relevant also

our mixed combined tenancy our or believe unique growing focus developments real-estate and as growth our showcase ownership year, month provide community at first long-term broadly places portfolio investor million skill ongoing a with well relentless near-term XXX our reposition development not opportunities configuration generating event focus teams use to and the platform shareholders. and Regarding while to in of on with projects development experiences sets for gathering next create mixed-use fully as D.C. and in and over focus And I our starts several execution, last for

quarter. highlights X peak from the portfolio. statistics, Turning was XXXX volume nearly leasing square representing operating Again, of at operating our I’ll to total with volume million with of begin feet over some QX X%

and for new spreads the the For trailing renewals, X.X% basis on contractual comparable containing the a quarter, month on quarter X% were XXX increases X% basis. X.X% rent solid annual and blended points leases, of we XX and at on

the the in signed One more we co-working one use is deals a mixed our centers. in notable office of quarter lease of

page our the XX,XXX GLA XX years. achieve of our was in supplemental, of study expiration square term spread of X.X% with a feet those lease this replaces expiring within anchor you XX,XXX and the For who square feet lease of XXXX

mixed-use to center We welcome opportunity an are feel additional we is strive the to that at value space happy driven our asset. co-working the future, our everyday amenity and tenants strongly create to for each by retail through the

in on significant now to the Looking process, QX, providing to at beyond. we remaining execute X Toys XXXX, us position will former expect more through growth activity for "R" for locations further XXXX comps which Us X in and

transactions. to Turning

in we sell signal single in count expected to and contract under our currently are assets, and noted from collectively the exit leased which are the to to reduction As two fourth The quarter. XXX% earnings assets our asset our two. release, just Connecticut late are close of tenant

year, will market options, it taking liquidity As we further have consideration as and stated remain into relates values, to sales, visibility asset all long-term strategic needs. opportunistic we

year. well of to-date most us buildable quickly our QX door piece XX,XXX On of Uptown of million next offense is as multifamily acquire quarter. square significant commercial to as square we construction announced over commercial begin expected largest XX to to site and land of adjacent our feet of dirt the the with the acquisition Loudoun GLA front, entitled will currently our what allow of one One as continue project are densification play fourth to to becoming to of FAR. event next defense units both X.X in close and XXX approximately to in contract and asset feet and expect XX under for in acres One is Controlling represents prime acres Loudoun this investor September, Downtown

tenant leased at and to spread spoken occupied in I and permitting QX the regarding call throughout commence X.X%. of NOI accountability largely Through basis coordination, those process, transparency expectations same-store the indicated our as expected to turning it we represented XXX and QX same-store. X.X million QX track to with specifically continue our active that internal by QX. be Lastly, in ADR points on to in

continue Looking "R" and expect and occupancy forward, for we Toys in Us both rent provide drive to 'XX. both spaces 'XX former and will

now million XXX The quarter as of it occupied as is in two the nearly points, represents leased X.X As high is last spread up which spread has been end, the basis ABR much start years. corner weeks a XXXX, our location. the replacing container remainder including opened of store couple the which at of is that expected to ago ultimate in former asset Tysons

continued XX% thoughts our high-quality relative portfolio success leasing retailers on portfolio to of continue lower to immediate share approximately minutes by I'll a take headlines. my lease and of the Given expect year end. exposure, the in now few bankruptcy some a we rate

As said we or as Steve to and Kmart. repeatedly, we stated direct no have Sears have exposure

at don't the looked overlap we in In of analysis, have concern and portfolio. the exposure, have of any indirect terms area we surely

we leasing and coming with efforts and next detail remain handful existing tenant we occupancy in a filings, redevelopment Mattress Subtracting bankruptcy years We less closures, locations assets positioned, continue is relevant the on new to rent Virginia our I'm in happy our little XX improving note, the our discussions only proactive along recent leases, clarity believe the the that portfolio Firm space functional and backfilling closure, upside, a On of we have in like a well now month no and of event. Mattress Kmart currently. to With than of and having are list, contractual we healthy represents of close additional and with several or over the spreads expansion former perform to at position to that project investor are X% bankruptcy. and for longer better have Similarly, XXX months. Sears accelerate. which in some locations retail last shared portfolio, expect Firm engaged store of the one first as our the of the staying are we and of are our lot toured site. the generally terms ABR growth annouced report that

projects are Page beginning net project, apartment expect and D.C. put on disclosing be timing Miller for in we total QX. returns million spend projects of Plaza leading additional a and focused on in have Street are million We well Chicago the in which supplemental our will our plan in These XX. investment, Del and renovation site Scott Chicago XXX Baltimore Promenade area as lease for in Page approximately in Lago Wilmette corridor core to represent we be the will XX and our as of now where added five XX, Main Naperville work Carillon XXXX. commenced

team, project providing capitalize a Loudoun One regular Steve. look East broad-based project, Our Over back updates and in past our and two the Downtown our the Phase will we rapidly forward Baltimore Friedson of Nick continued projects, milestones the H as largest and now, G call we've of opportunities repositioning D.C. including continue over Coast through will to on turn including to area run efforts. increasing development the Craig on the pads to to And six Carillon. progress and I years strive created our over One I

Steve Grimes

you, Shane your Julie Thank reports. for and

a internal our It different sight under minds to we to first the I balance portfolio quarter-after-quarter. ensuring out opportunity easy Another our creating solid thinking incredible that significant in are solidified were of we carry is in an focused heading just fact and importantly, sheet, when of are and reporting become. fortress-like to our approach, year us, of company front progress estate our enough on how real has We have most of cannot stress and focus you lose quarter nothing have that platform that assets our initiatives. that with valves

our opportunities. the that creation value And our to growth the for to sheet over turn shareholders. and I'll balance of for our is robust that, portfolio have back It's all existing and operator within growth We’re with lean, nimble, call liquid, questions. gratifying achieve

Operator

your Christy proceed a with conducting Instructions] McElroy, question-and-answer first question Citi. session. we this question. comes will At from be [Operator time, Please Our

Katy McConnell

trend how out? Katy guidance XXXX? if that is XXXX spread you progress the narrower where can This the and on could you any month to-date leasing with clarity wide fall Christy. that range you've throughout update an within you to the lease does And provide Wondering, on visibility expect more range, provide more for six on McConnell XXXX laid

Julie Swinehart

that Katy operating is for We wide same-store a the provide for that and growth remarks terms but mention We you is the I'll guidance lot still Thanks FFO prepared still our XXXX in are unchanged a for question. assumption there points did starts. NOI XXXX. in you in range basis are moving that the right. did pieces valid, of tell of in assumption rent the fourth XXX quarter

update So, assumption call narrow on February. we and that range will that our in

Operator

next Johnston, Deutsche question proceed Bank. Please Derek your with Our from question. comes

Derek Johnston

in new bit? to and Can that it's volatile allowances statistic than tenant mentioned, understanding more The lease term but I increasing a look quarter does the much. speak Shane up spread see were like most, you it didn’t but lease little leasing a volume the --

a anchor statistic this that if lease sure, it or or was notable some large relation one trend? skewing to weren't maybe just signing was in we So other

Shane Garrison

is Yes, all X leasing This we had million about Shane. feet. at year square for the time

of had call are had the anchor entertainment our on was am that though you years at best the that in still mixed is we of concept margin But said, lease New being in margin side, to foot have when This period. because XX one our pushing the whole York anchor skewed pool, side average period, $XX a that the look right trailing the put terms On it a us Loudoun. on point, last quarters. type will six we tune we the in into basis probably we that large new your size size, to small we a of use out the and

think I you it plus in it overall, pricing XXX segment. margin when the out to great our bps outcome use that especially put contractual speaks was continued think in a about mixed bumps, I power and and So the that think annual

Derek Johnston

pre-close just levels. in clearly at share I Also wondering activity the you quarter know impressive current repurchase was to it's

million at since here look grab your capital that grab find. priorities high repurchases, you just and to just it they're what relates that to to acquisitions As pretty especially pretty target. as tough almost and quality clarity, thinking wanted we redevelopment XX But to close are some look like seems

you what redevelopments So from thinking and are repurchases here? about

Steve Grimes

Steve. is This

in As probably Day, we about will the talked Investor transaction be XXXX particular for neutral. in

not That and acquisitions all the to mentioned. of year. have be starts about will So being your sort million that for point, our XX really with you our reasons said, opportunities had online and year and coming very next obviously, XXX are million towards any expansions we guiding that redevelopment we do next of right,

beyond through asset are to averse can committed are That us that, we program. of that So, using feel we happening. which we the But two sale not easily funded is 'XX. certainly an to buyback share tool the or be an for opportunity into going

we and and we that to use to the allotment we proven it willing of are it, see the remaining able use prudently as it toolbox, throughout and have we will of use have happy duration that we million are XXX tool So, the to fit.

Derek Johnston

real quick. one just And last

rising. placement, that wondering you think about low I into with know I desire a your was Day during we from first that million half still there accelerate discussed XXX 'XX? thinking source? rates to and or with Investor you leverage Is private discussed And and you XQ the are any

Julie Swinehart

payments into interest placement we risk the completing in locking tapping terms of into of terms the We talked early in mortgage into and some market, swaps little swaps quarter rate a rate interest in about to done that In rate the manage terms it is of early the something XXXX. in the November. things private expiring

the it in will at redevelopment need doesn’t early look the spend stand it revolver and end balance XXXX, the there quarter trajectory I of feel as with like that be comfortable much of We’re of a of the when anticipated as on. terms too in

both rates the revolver. mindful of balance So, and it be will under

at with this staying point. that we’re flexible So

Operator

question next your KeyBanc comes Our Markets. question. Todd Capital Please Thomas, from proceed with

Todd Thomas

third Just that much quarter circling in that half. back of quarter in numbers would you to ABR $X.X the the the online mentioned quarter? that million showed of second come How this comments around last up

Julie Swinehart

Todd, number of on of fact tell we the large for an growth don’t the the came I you based I print much but -- don’t would third rent that quarter. part that, that X.X% a on the that same-store exact quarter expected we in on have was third

X.X the XXXX. points a the Looking and within to spread first the with ahead XX of XXX basis QX on lease Shane now of expected balance, XX% good mention in that the in spread occupied, representing half come million ABR between of is to

Todd Thomas

just curious expense that's the And in about specifically? the the reimbursement quarter. ratio impacting fourth run expense -- into think there reimbursement should quarter? we this, the was Okay, how but then helpful. rate, in I the about increase anything rate that missed the the And Was I sorry

Julie Swinehart

We addition in few from we area all the this reconciliation as some I we in from that long well benefit have did the from you field certain in some our also real refund, that adjustment common were some did in estate benefit as will tell the continue that quarter, maintenance not third as anticipated, tax favor. of coming of cost made XXXX we market. year closing late effort created that that offices though we those reduction quarter out

same-store XX% QX nearly of of proxy probably in we’re see trending I So the for year-to-date recovery better XX% percentage terms and that like. the XX%, that’s led to And what quarter. same-store looking in

Operator

next One question Capital question. your Lucas, Chris Our comes proceed with Please from Securities.

Chris Lucas

capital start with guess Just quick I me follow-up priorities, about question on let the the this. a

be that picking assets than in remaining you after issue sell? holding to time other that guess just one the anything your there of I portfolio anything or sells. single that's got two we up from still Is this thinking should tenants there Is about? like You sort

Shane Garrison

This is Shane.

in remaining on that would we the California. one the of extending I larger theater there. better the I have work that so lease, a remains that item We be guess would before one one liquidity on think profile --

The other assets I nothing would more know there us It's up. hold is opportunistic. just

Chris Lucas

going we -- development, as And kind this your death to you've again, on float sort about topic buybacks beat trying taking higher the to you're then, you're it your and Investor as a 'XX investment as kind curious competing back and let sort we to how probably was priorities a of program. I relates 'XX Day, then of guess got just redevelopment forward as and stock between compete step just but willing and much potential at think of to and that leverage because

net kind level? the to wondering, debt range be on Just EBITDA outside what would that

Steve Grimes

have at This kick inside future, profile a we capital will the Investor times mention times given most could expect of all continue that of X plans. to that X for the for in Obviously, markets clear stay debt that X are actually period don't that foreseeable for would do assets we net the part good equation. EBITDA that to the another some non-target of our our range. the again, activities a to and range I part, utilize. with us anything for that long of in us feel and two years But and think above affects is we time. see liquidity we for within are the And We that of We to mentioned Steve. Day that we we to next X is

Operator

[Operator proceed your Instructions] Milligan, question. next with from question Please W. RJ & Baird Robert Company. Our comes

Will Harman

to RJ. This and checkout bankruptcies And you store for just talk this Could 'XX? is about closures, 'XX? expectation 'XX Harman where on gets Will relative for your in

Shane Garrison

Will, this Shane. is

it mitigating I the think size roll ago. fairly a Company exposure in literally the six years have consideration done was admirable rent our especially we half job

if no when 'XX about and sets this expect 'XX again with portfolio and think know Sears we talked process. I certainly Relative that talked we relative I somewhat us XX even be to are I on more to Our muted. tenants that think top wall. 'XX, Kmart, that XX% now being the I like to started But something XX% we versus mid said, or don’t XXs,

typically use it watch We expectation the bps our Mattress some in with. are list, is, and that on Firm, what run going bad lower debt today, we XX year see still prior to including the with than based this bankruptcy, on it has year. conversations based is our we But including been

Will Harman

could year, you be back next guys we 'XX expect number we you still over million 'XX? that well? that to in that as or million see Or revert elevated that saw XX XX It to had Could this like around would closures 'XX to So past levels in more few I with have XX year. million looks muted the end CapEx LCs, elevated know more you up TIs, years.

Julie Swinehart

This is Julie.

year We are looking again. heavy a ahead to 'XX as leasing

in like be largely. you levels think And 'XX would are looking 'XX are in so, seeing there I the they again

Operator

Street question next your Our with comes Tibone, Please Green proceed Vince Advisors. from question.

Vince Tibone

I if that have market wondering, incorporating the value and you Phase are a projections what of land any question the supplemental? in just you return for on you -- I'm of One the on that do land Carillon. of into estimate Can the think a side? is cost value fair

Shane Garrison

This is Shane.

Day deck. over as But JV units stepped-up about assume we -- about carry million and XXX about million multifamily to can into ratably FAR, at And million, parcel what X,XXX kind I X.X JV. said or feet of contribute XXX had value each into think fair the consideration that and I how of calculation we believe, as in at that we which basis a we little then, land the X commercial current about but our we square are the contribute think use land entitlements, in as taking million, the pull Investor the Phase. the far JV, as off we we I kick

about land on a there to So start as JV $XX on Carillon million that One, the Phase at example contribute is for process. we and gain

Vince Tibone

Okay.

trying that a I’m there XXX shown XXX Just get value to like maybe spend there to sense That’s is in million any just allocation the the clarify Is like land supplemental to -- or like in million of? that estimates? the million. the $XX what a

Shane Garrison

No, that of it's net land.

Operator

the the for would reached end question-and-answer to we back gentlemen, I call like turn have to of and closing Steve session. Grimes Ladies remarks. the

Steve Grimes

and your attention thank Well, everybody today. time for you

have corner. around As a always, we typically the conference

I’m coming Investor any this be further as the out in our posted transcript. have a for deck obviously terms as well many Certainly, of in So, we'll Day available you we to of week. you both there, of bit sure been the seeing have, website may the that’s information a quite that questions

So, lots robust of much. information question. and hope to see you all next week more with so Thanks even

Operator

today’s concludes This conference.

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

Retail Properties of America (RPAI) 31 Oct 182018 Q3 Earnings call transcript