RPAI - Earnings call transcript Q2 2019 | Retail Properties of America, Inc.

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Operator

Greetings and welcome to the Retail Properties of America Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

I would now like to turn the conference over to your host, Mike Gaiden. you. Thank

begin. may You

Michael Gaiden

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

details supplemental In distributed addition our with website quarterly section last release results additional package evening, we at the to have posted on the INVEST on our press in www.rpai.com. a

as including are remarks of answers forward-looking securities federal from statements your call, believes, usually by any may forth and the use questions anticipates, statements by the identified today's most such XX-Q variations described control, release those Actual beyond On statements, words will and our include and recent management's words night our under of in similar and laws. issued prepared in without or materially to XX-K, SEC results of last statements that constitute expects XXXX, These be a that filings. those differ limitation, may in our such are forward-looking including expressions. affected forth our Form earnings other set guidance risks in risk for variety and set factors and factors

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

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

to Vice and Operating remarks, questions. most our After measures Garrison, to Officer; INVEST speakers which You Chief numbers our of release, these President financial in www.rpai.com. and Officer call open and prepared can your website the will of Treasurer; Grimes, call, find Shane our non-GAAP directly at quarterly Executive On our in section comparable GAAP Financial the Officer; their supplemental reconciliation available will the Executive financial measures Julie non-GAAP Swinehart, definitions Chief Steve these package up President, are earnings we of Chief Officer. a today's and be and

Grimes. now to turn the call I Steve over that, will With

Hong Zhang Grimes

morning, Good Thank us joining Mike. Thanks, today. everyone. for you

quarter, X.X growth results, to better again Julie team year quarter. X.X% portfolio than the of momentum our vast RPAI the in our than contributed following results of rent Better in one of expected once NOI categories other as majority our expected will plan This above expansion Base roughly continued same-store delivered detail. second completion ago. to reinforcing also the transformation contribute,

as our in business. Overall, retail X.X% to both the retail leased $XX.XX, through with ABR same-store outlook increase first growth and well confident percent XX.X% we occupancy square the very the are sequential half With remain foot per NOI for pleased portfolio year-over-year a increases to year. growth our to of as XX.X% in in we

line approach to credit bad quality drive top systematic the ongoing Our impact below multiply momentum. our of us merchandising our and mix expectations debt tenant and upgrading help

same XX increase highest XXXX, the At to near-term our lease XXX time, underscores occupied in quarter-over-quarter basis spread points, to potential the since point revenue the expansion. for our basis

store rent over outsized starts, impact could intensely shifts of Shane dates half rent focused With expectations this have converting acknowledge anticipated second of term amount the near to NOI same outline, signed rent large year. back we current our in are we into leases half As an will on these future compared the performance. also that our on commencement

of full basis our XXXX points. year And existing XXX this to our XXX influenced NOI timing factor to heavily maintain assumption same-store decision growth

gains. development our plans use mixed operating mirror our along progress Our

at And our our already our progress original completed leased two One at rents We del Carillon apartments have thirds plan. and at Circle Downtown, continues expectations. Loudoun recently East Lago Plaza on above of

and oriented flows growth medical years underlying that retail, in super-zip potential density bring multifamily to projects from cash We of our same-store embedded complement these and expect coming completion tenants in office the incremental portfolio. the

disposition sides the We capital of also business. continue the markets and to positive in take steps incrementally

the tenants Center, risk our Towne to to continuing During our reduce focus at narrow to we in monetized exposure Rivers MSAs. asset and North loan Carolina, on South quarter, our targeted

$X.XX We ten-year maturity at placement also extending lowered our end average already to and interest our QX, end weighted $XXX also years of maturity secured revolver share. extended in of per to range, operating term average announced that allowed The to low FFO our Earlier cost received us further compelling debt million private month, diluted our is previously the of $XXX increasing the related on availability. million savings funding which profile. raise our our and now we $X.XX loans this expense

trends diversification and rent the at us enabled plan of the broader half below year. first record in Our retail solidification with for stabilization bad along roll towards efforts to overall have debt

year-to-date pleased tenant watch fallout manageable. provisions to and While our the digestible maintaining revenue year, assumption list have basis are annual of of debt be To retail we tenant our incremental our announced bad points full proven an this with XX performance, half risks layer bankruptcies adding for of remain clear, view. second

The report accelerating retail Friday's of and and increasingly interest much we hold the industry. our about Combined successful optimism the same integration confidence. of sector the consumers. firm further find consumer footing in aid for jobs with the wages GDP finances accelerating highlighted accommodative the should rising of power Last environment rate to of that ongoing spending outlook in strength pace consumer the gains the market helped continue has bricks-and-clicks,

key corporate website embracing we this I rpai.com Turning all proactive QX. to visit addressing approach you launched ESG topics. we to at learn during about our long-held responsibility, the of encourage broader the microsite have part to and our topic these of to

our of be and efforts. will through enhanced We positive which and further initiatives, incrementally environmental our are on are the development we governance initiatives proud social

in in while the are delivery commencement confident we rent above first schedule. same-store delivered on robust our results of year, our of planned this half Finally, the focused

our rate X.X debt for sheet EBITDA to We are $X loan mixed platform, in net key nearly advance capital. balance With and need markets measured July continue positioned a our no plans, term development all control quality our and which of lease us. strong sit with percentage, external five portfolio at and also our liquidity, we use after our to goals. billion remain which sit excited to annual solidly near-term top and differentiator times to closing, our continue have our robust in Combined we for

I will call turn Julie. With over to that, the Julie?

Julie Swinehart

in $X.XX contributions both Thank we period quarter up you, quarter, Steve. Year-to-date, and of count. NOI morning, share, markets This diluted I $X.XX discuss increase. year-to-date NOI expectations. $X.XX split operating first results, above FFO also our per XXXX. $X.XX X.X% Same-store for reduced and capital share evenly our share prior among a half count the from FFO quarter for operating growth internal XXXX. the outlook our delivered drove diluted and the the year In over outpacing this balance will from in $X.XXX of positive This share, our NOI second of in second rose is activity XXXX, we of same per generated results, the expansion reduction increase

year, projected be by As QX. to same-store contributed we the in base points same-store to continues start rent the driven growth our year-over-year growth at of which XXX expansion, basis

anchor growth, and base to also continued increases rent spreads rent re-leasing contributed. while Contractual this occupancy

same-store lease income and benefited growth. other lower related year-over-year higher our debt Additionally, bad

lease rent In which of terms bad figure consists related as and approximately of base XXX our primarily debt. added in same-store year-to-date income growth, growth, X.X% higher well points basis improvements NOI other as

to expected deceleration quarter, point in during decline same-store occupancy. the QX during XX.X% discussed we due first our we we quarter sequentially earnings to call, a in in growth in a had occupancy And in in fact QX. decline basis an XX As flat realize second anticipated from did XX

us largely best proved estate QX. tax expenses However, refunds for our slight Better tax by in real helped wins projections. be real operating our was which in categories and net recoveries, internal the all expected driven versus outperformance quarter in contributor the of performance than largest of to nearly modeling estate

lease better-than-expected other Higher also to of our wins bad same-store than beat QX than anticipated drive as to pattern for year-to-date NOI also growth. internal well same in same-store lower estimates as our debt broad growth. forecast base The versus related helps contributes X.X% small and well-rounded income based rent NOI upside our contributed QX and

bad versus our efforts points and the year's by bankruptcies basis first NOI, NOI exposure or to debt Regarding basis at-risk in XXXX. bad XX Year-to-date second $XX,XXX the results. last same-store X of half measured bad against in of declined $XXX,XXX have or in decreasing Both same debt, year-to-date reduce year-over-year quarter store tenant of retailer $XXX,XXX debt bad comparable decline same-store our this of cadence $XXX,XXX quarter, the points moderated driven debt.

we we pleased term. with to steady declines our few merchandise over tenant We near well-balanced a weather bad any trends remain are and further the quarters. poised to anticipate last distress in thanks concentration And mix, tenant debt

full consistent we only XX tenant of debt points However, we revenue year for the debt assume XX NOI, outset. of full-year bad bad for have year's XX% also our fallout. or our assumption of QX, Through basis and to continue total of at allocation XX% points XXXX, basis used with

debt to markets; proceeds on early the placement outstanding $XXX all to revolver and years the in signed private in turn using years QX. Turning XX-year from second amounts up as million, during to funding weighted from we capital quarter, end the the received the of our maturity of of the April, X.X of repay X.X of quarter, average second in extension our driving the

issuance our locking We of term in points. contraction term at the subsequently LIBOR $XXX XXX on effect current in QX, basis to August X.XX% of seven-year debt cost on outset XX curve XX, July fixed, grid. million and the of the loan XXXX. end to on debt and LIBOR priced leverage in swapped based points These total variable seven-year at We exploit at of for the for basis $XXX our ongoing plus XXX placement on million low the in take LIBOR this a continued loan, the rate term five-year exposure yield term swaps X.XX% five-year priced plus on closing the

our $XXX the revolver proceeds today used undrawn. gross to million repay and $XXX of borrowings revolver million is completely We

weighted June an almost extended interest a rate almost our X.X Following million average loan average XX improvement. by basis point XX our of and this years forma at half-year to fund weighted $XXX maturity raising, X.XX%, stood term pro as

of debt assumption. proceeds, than the efforts have $XXX year-to-date aggregate generated capital raise Our our million million $XXX midpoint original in more

average years excess to improve We repaying raised leverage rate to higher weighted rate. maturity ratio average secured the amount weighted to which mortgages early, and will interest interest our redeploy expect

did, With raise expectations. outsized interest rates as unsecured to our accretive they activity earnings capital debt our moving proved

stems increased our line assumptions of with per to measured operating in At expense. our from $X.XX QX, times in rising guidance a share from our debt EBITDAR of end net the $X.XX expectations. part adjusted to the turn of large X.X Our interest one-tenth quarter diluted FFO first around

busy back expect schedule of We of the will leverage continue development from to which ongoing the CapEx over our year half and higher balance starts investment, the to accompanying rent year leasing for Shane detail. migrate

drawn our solidifying We also maturities leverage to to our X.X robust. or with liquidity in grade our no revolver amounts remain expect our facility remains investment goal, targeted today debt XXXX XXXX, no positioning. under and either Further within profile times X

continue same-store our Turning to to X.XX%. of same-store growth year to full X.XX% outlook, NOI we XXXX assume

so been We also we more which significant XXXX, results are strongest our same-store far. QX, posted in facing debt year of QX bankruptcies the have last X.X% that has now NOI will the our in announced while comparable bankruptcies bankruptcy NOI exposure become terms impact dollars. more quarter toughest bad than been that was starting year-to-date of assumption covers quarter announced Also, same-store our our limited thus in although our growth XXXX to far, in

plays the role while embedded goal, year to our in $X.X growth $X.X million NOI ABR, occupied of need store year-to-date including same commencement million in full store in to critical the lease performance basis half of NOI in XXX back points the positions achieve So to our outlook. our well on ABR same-store spread our execute same us a

same-store commenced NOI of fourth rent visibility approximately to factors Most equates This When existing year-end. full-year growth points our combined recoveries. signed, adds from the variability back weighted bad assumption of adjusting drive of to bad expected of carryover base both revenue basis is that's basis ends for expected not debt quarter, the the for to of points driven. the timing first our half the our our through rationale debt inherent expected in these impact before year, Each of heavily after start factoring context and that but more second forecast assumption of in this than half anchor in month underscores rent same-store the with and of range book XX much in XXXX, to lower to annual our XX half, the it place. in keeping

With over that, Shane. I the to call will turn

Shane Garrison

you, Julie. Thank

as Julie with to that as our the same-store remain the delivering on to drive contribution execution, on high XXXX. rent outlined. expected continued better dates NOI point quality And XXX portfolio year-over-year most spread in to in we focus these in focused our value the occupied than rent adjacencies and basis commencement coupled Our growth acutely point sit basis XXX starts majority importantly, embedded lease of shown

foot from ABR to markedly our denominator Payless per portfolio square of and decline expectations out quarter-to-quarter. and XX NOI anchor volatile prior vacancies years, of Gymboree. a large anticipated move internal commentary as and from $XX.XX in and quarter dovetailed and with can a With first reflects as than the leasing basis XX.X% be smaller well occupancy retail box previous activity The point the

in merchandising tenant for rate the addition the reduced we in increased and exposure our account Proof on points declined which relevancy not into basis and merchandising as XX points, XXX leasing mix point, distribution have leasing, but a period. brand by continue profitability, basis lease reflects that year-over-year platform rate retail future reflects to smaller cash XX-month partners stability XX.X% locations point in our basis market drive to provide taking increase also leased portfolio asset basis our XX Year-over-year, continue success for our long-term to we occupancy focus of while points just value focus have XXX our top the and those to and XX in sequentially same by future, flows. Our retail relevancy, awareness.

signs more broadly bad of our Our in increasing with contributed has outperformance year-to-date. diversity retail stabilization combined tenant the sector to debt

the in portfolio rent throughout QX balanced than also points. of While tenancy, we approximately relevant more remain of XXX in comparable focused and on XXX rent all QX, contractual assortment points our merchandising signed contractual averaged annual growth. we focused on annual averaged driving signed leases new In basis an effective rent basis with quarter increases remain leases bumps

Turning to the show quarter our XXXX. through during our merits portfolio of signed since highest blended X.X% our leases comp the also spreads for for quarter; the quality high blended spread QX, fourth in

transactions; opportunistic approach Charleston, in to QX, take Rivers South the million. of XXXX. the non-core new strongest relevance. Towne quarter local accelerated continue XX.X% to state increased Center Carolina This breakout, in disposition In at sold with our regard on Looking South spreads sale renewal on market QX North comparable and for quarter advancing power market $XX.X and X.X%, the Carolina, since and North another the spreads to leases of our in first from in comparable marks we focus first center the incrementally exit XX% scale from to we the an to

developments redevelopment Lastly, achieved looking number our and at to future we a of and the of development RPAI -- milestones mixed our use the efforts, quarter. in

at multifamily the front, multifamily our Lago of units ahead underwriting the above model. XX rents renovation del leased completed XX at have the we timing to-date, of and redevelopment On Plaza and

our look and of multifamily successful ownership plan and redevelopment our While this pipeline. adds above more in and mixed-use larger expansion modest to our the project to in site experience and confidence execution scope, complex as segment in we projects the

this of Vyne, owned development. June, the projected At One our next and tenants broke quarter ground corridor to our with AvalonBay with East, joint Loudoun multifamily Overall, lead changing venture of multi-family for updates we engaged use at Downtown, as mixed up commencement continue project. activity the in several heavily in quarters, the XXXX merchandising progress further we at mixed-use at we Turning as over remain set ground bar continues few will at move-ins activity Circle that activities, we project. expected LOI near this will portion the first

and units at the space We and extremely nexus two-bedroom residential late expect bring commercial in XX,XXX and H spring for open this Loudoun. expansion successful approximately square This XXX merchandising 'XX. on capitalize pads G to with one more mixed-use of vibrant and will product to feet

we in before the GLA advance and and Phase vacancy moving and year. of XX% square on remainder construction the Carillon, the of as pre-leased July XXX,XXX we of early retail spend approximately already at to portion expect escalate, began to Finally, continue of X activities feet we have demolition [indiscernible] through

adjacent XXXX. project with on expectations the of continues Hospital spring the System schedule our Additionally, University of and in Medical for Maryland opening

and team. while sits same-store Like Steve with center our Julie, pleased the our commencement I solid rent our am roadmap year-to-date, with and for growth half performance front second

back in same-store of operating leases. in needed to to the $X.X and year-to-date looking embedded our the growth we are continue our half We signed will momentum ABR our million carry to over on back annualized drive focus half year-to-date delivering

With turn Steve. the that, back over to call I will

Hong Zhang Grimes

you, your Shane updates. and Thank Julie for

the turning ahead along of to any laser are we half on with bad on debt of our second potential fallout. forward Looking starts focused year, rent staying anticipated the

over And questions. to with I'd like that, call for to turn the the operator

Operator

At you. McElroy this session. we go ahead. thank [Operator question Christy from question-and-answer Please from be Our Instructions] Citi. is a first here Great, will time, conducting

Katy McConnell

This for wondering for is on also if and closures of being for maybe provide fallout Katy just expectation up then back-end the ends you tenant your your morning. weighted some just McConnell timing actual more I on in the balance growth of us in expectations XXXX. on the directionally Good especially if XXXX, was Christy. commentary update more could year

Julie Swinehart

question, the Good Katy. for Thanks morning.

of outperformance assumption that with is that in terms half back allocation of or of year, it bad which in had So bankrupt tenant just position guess additional maintain that I you'll going as bankruptcy, the to just the I'll NOI. lost we any from year the that be today, year would you full the would for the significant and stemming see first trajectory, as some fallout bad of combined some tenants and see point the expense we're debt that for debt debt, of that bad that moves out half our to naturally

bad But that originally and So to look. the year it in won't quarter significantly line the expected compared to as changes -- NOI show by the we up how item. debt of same-store shape

to in certainly going noted QX a I As prepared comp. be my is remarks, tough

So I of before trough would terms QX. likely this in in QX, same-store expect growth at NOI then year the will our for growth point re-accelerating that in

half on the in have to about debt, utilized mentioned allocation our bad the remarks, of as year. only we I year first Just the XX% of touch full prepared in

few a digestible, had certainly in have you'll back Gymboree, year. they've We announce Payless, of of that see some the folks proven like although so tenants bankruptcies, half the

to at of looks I'd XX% bad the call I'll second half So basis. of tune anything but in on points unknown same-store allocated allocation to a basis year. been, of the half the remaining of full-year is if that half, in the like say year it, XX is XX% of call another, to that XX year, the assume, leaves point us it, with outperformance original back allocation full for for first second has of, our opportunity And half I'd those there say sort tenants there; certainly NOI debt this

Hong Zhang Grimes

the is half XXXX Steve. your of I And back this Katy, think question trajectory. was on

while to be tail $X that a with that end as To right online don't some this occupied of about year. year, do now, tailwind of things extent million. for really which guidance most do towards next has the of give our lease So of one bring that's on to have we XXXX, the we that should we note, spread

in to at we year, thought. a taken what than fallout that, expectations thought in bit renew. XXXX versus tenant had the our more of we're we've we it's if look muted to at for a And what expecting underwriting to little So terms be we of might approach where beginning in we the conservative XXXX addition

we're feeling for So we're more guidance, pretty headwinds just XXXX, actually I point. well, say not would confident about this tailwinds than that giving at

Katy McConnell

Great, thanks for color. the

Operator

ahead. next here Todd question KeyBanc. go is The from Thomas Please from

Todd Thomas

good thanks, Hi, morning.

growth First on in little to forecast. dig same-store question, wanted I NOI a the bit just

just delays were there that about of like there some or around evidence the in uncertainty year, the uncertainty the shed happening comments curious comments wins, of sounded being you portfolio, small potential because leases, bunch of a a of those the in so commencement quarters there two I sort if your of could actually it bit. on So light was little first is

Shane Garrison

morning. Good This Todd. Hi, is Shane.

caution. very it's think To in we point, on your cases been successful year. the I at just rent have early appropriate some turning this

as as taking concerns no So is what place. far

signed -- I to part north yet large what it million $X Again, take rent. done just we think around that has lifting of in have is place. a that it's in heavy of actually

have we execute. Now, to

chunk some we'll a stay The portfolio, we in X allowed any so it have any which So lot just deliveries about permitting potential that yet, but good we we there, eight expect take it in anchors news has have very of are place delays. is rent actually abatement, that QX, isn't well delays, good as and a August on in with it's issues focused XX of deliver us front also variables. material a is, any to which

important help deliver year, on to for should just out turn number again there putting that delays that which and very context. about don't but expect any So million X XXXX, plus of in XX% this

Todd Thomas

any Okay. And loss moving from is XQ notable XQ? that's to expected rent there

Julie Swinehart

mind. XX% that as basis, or of Shane so in expect No, the I quarter, fourth is so mentioned, to should But on not rent fall nothing to, not but XX% late a QX signed, to coming expecting net about the call -- into horizon grow mean, I more it's the occupancy -- think current the is XX% is in so, anything I'm out. terms More I QX in come year. of don't commenced on looking. near-term on it, yet how we

Shane Garrison

use to the to thing Julie's Todd, focus one earlier, two as basically over have the commentary is quarters. bad which debt on, of think we XX% our final I reserve

we and healthy fallout very as utilize have more any debt two, one, expect a we to don't So well. reserve

Hong Zhang Grimes

mentioned back sort original demise rent about QX, biggest answer comments in I or that so QX, in in going in her would keep rebound we to QX, the related that contributor it but expect on that of add what I what that been don't which think also what base Julie our really has or to comp material the and QX Todd, tougher mind on any then, And the is we to is puts in stress in that QX. same-store

Todd Thomas

And it. of back properties, to same is on store, XQ anticipated, pool if I so of base properties, though, 'XX rent look any to I is and to the at at I in the XQ change relative it's those lines Got rents base you number the properties same-store are the this there same any because the pool, 'XX, quarter the guess, look supplement along at XXX look if end where are trending X.X% the there higher line. by

was, I know may don't that's if related there's terms something accounting same of impact lease that So or if the in Julie, changing that store anything else year-over-year it financials.

Julie Swinehart

acquired lease did update, to of have we them. same-store on natural to pool mean, properties accounting always in that related I we just when course portion. based No, enter just We the -- through respond nothing XXXX the

entered store del Promenade, So the Plaza Hyde XXXX. New same Those Park, all Main retail Street in Lago, there. portion

you from and So but out or would the shape, of of sold QX the real pool see 'XX, year the the the adjusted and piece the part was the refunds. recoveries of the is that the tax estate we updated to same quarter highest. is performance next QX stemmed pool now with QX in where a when couple would 'XX in then comp obviously come assets out, print even we go those

being favor. that the also ended bit aggregated of year, up. had [indiscernible] previous that to up But handful trued in We our a a

nothing at in So related, of same-store all. driving that's pool accounting nothing really terms lease that mix

Todd Thomas

Okay, in are pipeline talk if of works you the rent are and backfills can of anchor Toys of to the that, of remind backfills that. to just is Toys us, much "R" still how and the outside that just And of I'm how or kind the still in pipeline, composition "R" got much is that come. that Shane, $X.X related Us can lastly, base Us here, you of and it. just the then curious about commencements million the

Julie Swinehart

Sure.

remaining. is run Toys So We've and schedule. just date. now north are those an in in LOI. speaking the that with to right us XX% that One we've Toys of boxes specifically, of -- three one lease And leaves two then to is had comps on delivery

of we to been it been an expect overall, a number, we from So about this contemplated XX% deliver $X year. And there. a again, than million has that where couple right box the comps longer for of bit have the plus just

Todd Thomas

Thank great. Okay, you.

Operator

from Sood Our Deutsche here go is question Shivani Bank. next from Please ahead.

Shivani Sood

Hi, good remarks noted there was morning. progress in front you redevelopment opening good that really the and Shane, quarter. development this on the

this guess do as with larger del as see Circle longer from of look -- you up or what at point. here, out do you some near I the term and So, guys hurdles running Plaza really projects, mitigated more you risks getting think these or Lago, of these most East, the have been

Shane Garrison

it to time the was development, and a Yes, hard you, hearing think redevelopment I specific cadence but I'm thereof. having

things experience for done, XX% have point. a team to leased Lago, we we this apartments of del almost That addition platform was that up, So, all the the move-ins the processes. to and has in in building that the XX%, XXXX that, been a -- are managing and a up of really that and like rolls, great rent of pop the issues redevelopment tenanting built at to setting

So a they case, from this the step in it experience. then and Loudoun here iterations. as will in great three, we Towson, into we And all small are different learning call big Carillon,

in on year, both So sides. the XX,XXX AvalonBay again of expect feet Towson, total from the square end that's the of at we delivery Shell still

well that call. merchandising to tenant and be will can from From site hopefully only the a for call into around cost we are really going point, at We the next have are the we plan future set on few, at Towson, it, leasing leasing a I and think really this signature that standpoint variables tenants talk here related. tone about

movement have side. So the any need We extent will build execute it here cost as of in to TI or well. so be to tenant we related, just costs, the out risk on a leasing lot not

be of are precast overall, some continues very fine because just On data there. of a there, our The Loudoun, forward very running pre-leasing offices funding collaboration and a underway from ground center actually employment, it's everyone sense XXX% about happier obviously and again we it design to the standpoint the leased Loudoun footprint but pull risk is couple June, the ordered we well community just pads we drive County off couldn't so and from and extent demand looking other and standpoint, to project, at us, a that been we around center tech broke Kettler, there, value with itself excited residential makes may here are the with there. in inordinate early

And then have done biggest our now in both apartment is four demoed on JVs a side, weeks the -- few pad. office are announced. Carillon as began we're and the this Trammell on the prepping side Crow, we about we demo down obviously ago, medical and case XXX,XXX project, feet

We expect December. foundations for to in the multifamily start the

retail On side, together to on we expect the sorry, in and the and March foundation. start I'm the MLB

side. all multifamily as being and 'XX. I hospital on to like relates it the and side lease timing especially by MLB driven finishing is So in really of the delivering this our up,

three groups we projects now, continue side, food bigger do but the into to our which always is partners this And think these with that point, I things your on day, projects. these focus right the to considered, So in all step risk every was plan.

Naperville in case at or Crown are pads malleable or line the the at about fungible more a below this we a bit look this or anything think you any talk when I point. other supplemental,

we risks on these focused executing projects, debt We liquidity are profile and to while as cyclical and maintaining think EBITDA our on large about executing. laser

Shivani Sood

that Great, thank for you color.

contribution, and the can Investor the the related XXXX you In as mentioned, that over I three Day, was the terms NOI us update just just XXXX, we into it get at near-term, by an $XX you give million XXXX. of believe,

just So the there if cadence? -- any term near update of more any in is terms

Shivani Sood

quite Not out Yes, from presentation This lays a change of that that Day really the nicely. Investor lot Shivani. is Julie.

the impact you that benefit will from it's in stabilizing with then that's of Circle earnings on Our from worked the impact XXXX looks and like again so see start really all are XXXX, of see Carillon with to XXXX some the East from and then projects. out at and full-year East from start in Circle then and Loudoun benefit One and those dates and leasing full-year two, I that to with the supplemental, think in a the consistent will spelled project kind being next XXXX data QX longer, the little the returns you XXXX,

with on and Day track I Investor So see. consistent from what largely

Shivani Sood

Great, much. thanks so

Operator

is Hong [Operator JP ahead. Please Instructions] question here Next from Morgan. Zhang from go

Hong Zhang

to a guess I up center disclosed was Carillon, comes that as it or relates your after pre-lease portion pre-leased, the the lease that XX% retail the as back is online? you hi. are Yes, plan to much you -- as medical holding possible portion for to

Hong Zhang Grimes

a what, great know you that's question. Yes,

is and a just the entertainment important anchor that site very So anchor signed, from plan think perspective. we was

We will see.

early returns look significant of is the hospital. -- the given you adjacencies I think demand imagine, the is like the MLB would as

a and maintain think is think makes I transit would teaching that here, demand. the will a so site, The good have we is, back stance some demand oriented from a we significant, given also we as this I positive early is see hospital options sense. multifamily, news hold that so is look

Hong Zhang

Got it. Thank you.

Operator

Mr. over question-and-answer to for This the closing to Grimes like the turn comments. session. any back floor concludes I'd

Hong Zhang Grimes

Well, us you We thank it's busy know today. all joining a time. Great. for

know some is month with vacations quiet also planned. a August hopefully We that pretty

whatnot probably on we road you So of of we many see process as the September. will road in the with conferences reconvene kind and

today. thanks a your So for time Have day. again great

Operator

today's teleconference. This concludes

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

Retail Properties of America (RPAI) 1 Aug 192019 Q2 Earnings call transcript