RPAI - Earnings call transcript Q1 2021 | Retail Properties of America, Inc.

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Operator

Greetings. Welcome to the Retail Properties of America First Quarter 2021 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] Please note this conference is being recorded. the to turn Moede. host, now will conference your over Jennifer I

may You begin.

Mike Gaiden

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

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

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

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

and of of the Investor available financial website financial in fourth the to both reconciliation Steve are Swinehart, first today's Vice the President non-GAAP With Chief and directly Grimes. of the call, measures a your open and information of up that, their GAAP I You our we in releases, section XXXX President, Officer Executive these supplemental over Julie earnings Chief turn and XXXX package be Officer; call our will Shane our at and Garrison, to Operating definitions measures the prepared find www.rpai.com. Grimes, non-GAAP all quarter remarks, Chief Officer. will now Treasurer; to numbers which On can Financial quarter Steven comparable Executive After quarterly these will speakers and questions. call most

Steve Grimes

financial I to last you, on us morning, joining our year. trend health with and the everyone. constructive over better-than-expected and report good I'm and QX, which continued public days on pleased you results outlined today. positively, The our appreciate sector XX and the sequential by QX delivered earnings macroeconomic, we Thank consumer of QX strong Julie we call for Mike, combined trends as built will to in in results last continue team, our detail. execution last our have gains

and $X.XX Our midpoint per stronger-than-expected full $X.XX of range incremental performance the from us our $X.XX to the share diluted FFO our year at enabled provides operating visibility to $X.XX. for in guidance QX by ahead narrow $X.XX to and year raise width to the

Combined consumer on urban-to-suburban XX onset stimulus of with strengthen the weekly The to the to migration to QX outlook more or aged Our population increasingly volumes with Tenants half months XX progress, at asset which hold of jobless leasing one consumer includes U.S. claims as April, forms and of ago double positive the well unemployment team the the Ongoing driving consumer as to economy, business. to and consumer a levels pandemic. levels, and economic for the years XX%, an the we housing, the pre-pandemic dose, At our receiving most spreads monetary balance least gains rate and Shane same continues dropped of utilize with outline. lows runway in year market rise. a time, the below the backdrop remains our rate and to vaccination fuel which additional think than confidence lowest continues nine of there high-quality well older than the results. still in long last to largest leasing deliver heart more confidence portfolio in well our continues to unemployment similarly the falling pre-COVID continuing will combination new jobs since constructive above federal as continues sheets.

We our markets swaths Sunbelt corporate through positioning population from and the also benefit migration. broad portfolio seeing other of and

census Our data. projects, gains at first redevelopment projects. our to return stream with population growth leasing these and will growth accelerating the U.S. leasing help Delivery recently revenue in among in for open our largest total ranked in and diversifying We operating at expansion developments Texas, of footprint, the largest date to portfolio including of project all addition roster. to door states and historical earnings supplemented levels our activity our Loudoun, other programmatic our One to organic our published quicken the

the and consecutive our each increased reinvest growth level that to in in Our two this for share the sustained quarter, afforded $X.XX has our $X.XX dividend, over Board for adds in quarter accretively cash broader quarter declaring Board performance pandemic to our when $X.XX the financial ability second in payout and evaluate a from increase common operational enabled dividend platform. time. retained amid prior per The to of our us The respectively. continue dividend and balancing will the progress a to tax up first considerations our to reset quarters, aim flows quarterly our

water our our key usage. governance quarter. which assist social system, We report to implementation matters and completed during evaluate advanced of will the in waste also our efforts the environmental, and energy on management power, We and

Board diversity goal further amongst delivering Our for our on directors. on remains our also focused

capitalizing concentrating well-positioned underlying of the portfolio tailwinds return is expansion Our delivering rising economic on the potential our on on and team projects. and

significant levels confidence toward to the positives the and in our quarter forward historical our While year appreciating to uniqueness Julie. on call ahead. full our XXXX With guidance our will over reflects performance. a I And operational of the path step additional turn current environment, first results returning of represent financial operating increased that,

Julie Swinehart

This and from guidance. previously we XXXX to you, rent, or I collection. review remained on XXXX. of improved compared Steve. I'll collection another balance XX% collected quarter trends categories an financial begin quarter QX will reported with incremental see I results, the rent updated on use par our QX rent to first for slightly base encouraged including our We morning, as The sheet update XX% our on across progress up quarter. trends, our Thank am of billed positioning the statistics. last

XX% up quarter. last modestly collection Our collection cash-basis of rent tenants, rent approximately XX% from aggregate XXXX from base base includes billed QX

overall decreased XX% due to first The move-outs XXXX. tenants decrease of tenants ABR XX as as offset Our the by compared points declined during cash-basis primarily to of was as a year-end partially ABR basis several denominator ABR early to XX% sequentially. cash-basis smaller our quarter, percentage of

be Regarding recognized due recognized Based million remaining of The yet policies, million, during deferrals, at year, contractually the revenue XXXX. tenant totaled tenants. during on XXXX. is total which revenue due the as to majority accounting was as concession repaid already million to our be $XX cash-basis start $XX the and deferrals from $XX of is majority the due structure of

$X.X XXXX prior quarter, periods, we deferral was million again of represent of resulted million recognition strong amounts the as of to from deferral XX% during $X.X repayments. collection QX we continued collect in which experience Our this the portions QX, due of income in quarter. which during base rent collected Once

and collections Our basis and basis and QX each the collection QX collection of current and detail. XXXX, improvement Steve outlined XX% including XXXX points with of base collection deferral last XXXX from to will and our rate macro the the XXX strength rent robust illustrate the QX current as The demand quarters base as Shane positive rate increased tenant XXXX XXX in health increased of XX% leasing our rate, also three the QX well rent points. base triangulate helped indications

contributed better-than-expected to per the operating up during $X.XX $X.XX generation nearly share, collections sequentially. our of and diluted strong FFO quarter and of Our year-over-year retention down $X.XX tenant

impact million as if in of last and previously any noted income would of efforts any $X.XX team due had cash recognition move-out cash-basis recognized detail due tenant XX, our explained evident $X.X revenue of was of cash on rent these and FFO within I straight-line in we Also, basis reflected you QX subcaption, by million lower well income $X.XX many please improvement We tenants to The cash-basis of is benefit impact. income G&A expenses sequential per encourage timing year-over-year in interest impact which always, moved uncollectible aggregation earnings of And transparency reflected received the already $X.XX FFO from more but $X.XX net improvement all net and information of which our supporting toward in nearly pages. in I quarter and statistics. partially FFO $X.XX the increases from to as disclosure within is increase portion impact recorded deferrals of the in occupancy period decline was net. the that and I collection find rent the Page Page or $X.XX out-of-period cash amounts on especially $X.XX lease tenants rent of a can additional share continue who the previously aggregate what reserved tenant during supplemental, lease charges net. accounted occupancy I And new of receivable. operating we expense, reach our of declines to As from was clarify consists $X.XX as is from the the deferrals, income. out-of-period The quantifying Sequentially, the quarter primarily rent even call night's approximately the of including from $XX.X help rental out had added and income by our to base income Also, the we This from in for out-of-period occupancy factors. the smaller from impact fallout Year-over-year, collection include and to collection as base $X.XX impact higher our pandemic XXXX. lease offset contributed prior first in fallout uncollectible accounts from current driven upon supplemental, an of an operating out the non-payment and bonus differences my you accounting lease G&A XX uncollectible despite recoveries. fully remaining by within negative benefit diluted concessions from for and non-cash This on operating discussed. decline detail provides for of release, of expense the in on helpful. expense decline lease the information hope base repayment decline. review

decline limited such or decrease completely decline million and as in include a NOI, tenant relates of XXX charges occupancy from of The tenant same-store the our X.X%. our the increased aforementioned QX as million basis contributors same-store quarter significantly to from offsets NOI concessions impact $X of to the Regarding point impact impact same-store out-of-period deferrals same-store same-store cash-basis year-over-year. from The population cash-basis almost X.X%. we Negative in collected XXXX. decline just tenant a NOI impact new $X.X properties to experienced current year-over-year year-over-year approximately nonpayment and

disclosure For same-store we of include and additional base XX on Page supplemental. of our analysis, purposes income rent uncollectible lease

fully as positioning. constructive million includes collection million end, balance well real measured of of revolving million our hand collection of and $XXX up line $XXX our $XXX deferrals annual cash on including quarter Our credit. reconciliations, of as the cash unsecured helped Total tax as $XX to sheet estate million trends, receipt reinforce on year-over-year undrawn and strong liquidity

sequential quarterly leverage in further position. EBITDAre existing our affirmed sound improvement has $XX.X Our million

Turning to guidance.

earlier. compared We guidance of our guidance $X.XX are XXXX full $X.XX new FFO to a to range of range year our results the updating per operating $X.XX constructive factors strong and discussed macroeconomic to quarter first initial This and $X.XX. share tenant diluted to our reflects

recognition Our saw future of income we like QX. updated guidance range items does out-of-period not in contemplate

we as still of additional our have accounting, accounted out-of-period However, the exists. basis tenants on the XX% for of for income cash potential

on progress in Shane. reinforce we will held the and optimism that, now the the opportunity I QX toward the over that start forward year, business to look delivering results I our to With additional set call quarters. coming our turn Our to

Shane Garrison

Thank you, Julie.

combined new of our high-quality nearly quarter, X.Xx the combined with quarterly levels the approach, quarter first majority operational addition In of annual our occurred profile. continuing distribution. contractual visibility All continued all commencements, large forward These contractual to rent in adding for to each quarters. rent have planned to in earlier seen points results sequentially basis two spread demand anchor to Three leasing of our lease signings drove increases, points points us continued for of assets. pragmatic acceleration narrow prior Our also occupancy enabled the upward tenant basis box starts growth relative to the by XXX co-merchandising build QX. momentum and signing carry XXX in further increasing reflect economic approximately portfolio, than high-quality ago rent toward XX.X%. basis leased-to-occupied upon anchor in points helped QX, retail momentum basis markets profitability, bias in also feet, by square the of activity XX to XX our increase us sequentially our These earlier which year in XXX,XXX to

anchor progresses, continue in small occupancy As we improved the the and drive merchandising expect shop year to signings quarters. to our coming

to quarter power accelerating again significant, demonstrated leasing pricing remains of XXX our points X.X%. portfolio, increased sequentially the once velocity we which our third While of spreads, consecutive delivering basis

drove result. and new on renewals this spread XX.X% a aggregate on X% spread Our leases

ABR Additionally, the are lifestyle and demand foot shop of per our comparable at lease small highest QX new reflects seeing square we space, our $XX.XX mixed-use first is assets. XXXX quarter particularly for since

Our with these duration to average TIs the of efforts our period to an compared an payback return, new reflecting continued mix. average economic X.X for lease signings merchandising of years, years maximize term associated and lease X.X measure

portfolio leases activity. the last as increasing deferral approximately in to lease aggregate base roll for tangible portfolio year. rent in and occupancy QX XXXX. consumer tenants stabilization of durability and base quarter Lease billed occupancy our results new is for results points an quarter sequential XX amendments and X% in down of improving sound contraction X% illustrate also the Broadly nominal the our also as demonstrated our consecutive The ongoing collection rent our our to improve helped health lowest the statistics XXXX quarters. from QX rent, decelerating by our as accounted further already both approximately in quality sales increase the the our the last sentiment decelerating to occupancy credit amendment declined push well in five our Lastly, XX.X%, incremental collection second tenant basis total over a in representing drive as further accelerating in

existing differentiated leasing to G, Vyne our Our drive multifamily XX are of seeing the redevelopment at strength units in projects operating our we our the growth. the Loudoun and to we Pad growing expansion at quarter. incremental in adds ability At XX portfolio momentum organic affirms signed

openings attract in continues opened look anchor location move announcing at this At Urban expansion Pad leases our potential the of XX,XXX we April other the H Reed The the G site to feet and forward Outfitters area remaining asset success of In vibrancy of Shack in in X,XXX signed and feel addition, outdoor remain as square we that leased location. retailers or Madison bodes XX% our Towson. well other with footprint see the reflects lifestyle in to we and base. our of lease G In of an an another the the Towson additional merchandising to and We is East, delivery at office earlier the and at anchor we Loudoun demand from across Ethan strongly the Circle and mixed-use by formats. and space from summary, sooner-than-expected of space the indoor tenant, encouraged office Pad project positioning This Shake complements momentum picture foot positioned Allen Pad negotiation. progress we for overall the One Downtown. square existing market is to in QX. significant at continue

economic next with we demand. Steve. we few year of the turn in broad year call, consumer I to of see expect new trough As our sometime balance benefit make in to due second in spread the commensurate in occupancy recovery quarters, cyclical With to significant in of the likely back to the with velocity leases a call widening leased-to-occupied and pent-up XXXX. will we outlined these statistics the the that, With likely sentiment, the QX's over more half to continue leasing coupled expect during our

Steve Grimes

please and questions? With for of that can commentary. updates, poll you that, Shane insight Julie, operator, Thanks, for lots your in

Operator

our is Todd [Operator And Markets. KeyBanc question Instructions] Thomas Capital with first from

Todd Thomas

it, First heard I have And into on pipeline, I the other missed question prepared you're on and any projects seem remarks. recovery. to don't wanted acquisitions move focused I investments, I get advancing, in but but to we those investments as thoughts on I may be development about the think know further much just your

Shane Garrison

Shane. is Sure. morning, Yes. Todd. Good This

would in your us allocation are markets XX% some they're our well. there, year indicatives opportunities of portfolios having The list are in discoveries case priority for So there a in closer capital grocery as it over be generally just rent so transaction to in markets, yet core a a look right, but assets tight, in pretty are developments like to XX expect pricing a general. remain of there component. possible point, deals off-market, there's heavier getting We that that few those To interesting may well know from you really a markets, bigger as trading, that's a couple we be up, loosening to XX a still nature some standpoint. don't certainly imagine. significant as we markets have report. still and nothing this some select some But But

what balance as transactions and we a bit, I significant do think to economy just from opportunity. up the see should it to a relates expect So, a depends comes it don't have few we the on But broader on to loosening fruition. but certainly to sheet again, here, other things tax it policy as year the

Todd Thomas

about also some in forward at to with development additional the some in-process phases move on the projects to the I and begin Okay. guess, you with pipeline, talk forward of these And move then, plans sticking in that additional pipeline altogether? some those Just sort that's the to if of of projects. advancing you and are dates discussions start projects given I'm increase in the enabling for tenant demand, of can the curious begin

Shane Garrison

Loudoun touching cadence the to on Obviously, continue move current perspective is at just QX. we leasing beginning along from the and well. in going in-process. we Towson, extremely Sure. the year even the of And Loudoun's a outlined

got to point, now It's and entitled. of first units into a mixed-use next to over the call in little that here kind retail it, in that are bucket second your multiple we've go I'll detail next about a that with to of, office on XXX,XXX right XXX floor tier, So in turning more XXX,XXX general. feet sites.

next we've T, successes pre-leased the expansion So up, G report to quarter Loudoun & that Pad office at the I'm given and in the for here had on now we to are H subsequent happy office end. XXX%

finishing with with T, that well for Carillon. with got square very XX,XXX XX,XXX retail, Pad retail, certainly about So feet retail, we currently of square be first costs there would that, about then the there, which as queue. first Crown, the square are a of we're first project as office updating costs Downtown mixed-use and feet vibrant floor is office again, And in floor about environment. multifamily feet. in a which XX units floor XX,XXX we've is front Naperville,

Hospital but a So, one. June, will open opens in late Carillon big prospectively. is bit a

just about and is finishing on MOB XXX,XXX more which the more back feet, multifamily XXX-or-so have the We pad. as units there, our as costs well are and day, obviously which every building, important is entitled,

all of are lot So velocity projects these of again, general, a in entitled.

we around certainly and point So One, demand existing generally are assets. don't these we're have of lot entitled projects business, a and local around for to known demand, the of and we've tenant trepidation us, two, I expansions think side. your

with in comfort markets, demand we're broader So, I the think the the comfortable setup profile. footprint very and macro with our

through and I think work to continue just that. costs, it's we

fairly scale escalating we're some of costs. I again, rapidly think, but I all advantages, think has aware

deliveries is have supply work to this, are buildings, I we think through some what the in to part And issues may it of relates as and a especially the of possible some just What it delivery. other time. for does general. hard the like larger of costs from look standpoint,

visibility more large very So, is The and only issue entitled. cost there. pipeline, obviously

have I around do quarter of today expect the this. or in would much So, we more next than so visibility would we most

Todd Thomas

projects starts Are of or any or Got beyond? for with it. would and there commence expect in future mostly you any in material phases XXXX projects them XXXX or expenses to begin these these anticipated

Shane Garrison

an of ask great a That's another have would Carillon, start for we just off kind the no site the to alone, of of quarter. the a I standpoint Outside off would early capped year. this kind start I infrastructure infrastructure lot infrastructure the we as year, Again, the question. need I early from put wouldn't early of in significant of that on But, ball. mean, to ground later kind investment into year year. last we early next that, ground

So year. the going don't investment, planned dollars long any and basically is story above which over this see Towson Loudoun short, significant out and

Operator

Our next Golladay is Baird. from with question Wes

Wes Golladay

how timing have see tenants just on you or rent, on you I a resolution abatement year? do do of have paying for the that of right you how see X% think do that question the playing that I about now. this not are out last, last X%

Shane Garrison

morning. hard say volume, had a in I business basis Good in comps that to case now this you and retention if at and and little dashboard looks just I'll right gets triangulate X% just in active the the points It's it, better. and bankruptcy tell look over you collections well. better can quarter that as last what We and call the still around, XXX business like. Sure. -- if of kind you

than the interesting a you indicatives, if it's an a But at pattern, our So linear look it's all little you XX% on at or last quarters, I look retention, XX%. if it's tighter four just almost the progression. collections, think

We on QX. for year about to We are we actually we mid-XXs think thought quite mid-XXs would retention. troughed low last quarter. at this be honestly I QX XX%

comps if And there. overall was retention velocity leasing. in So you then, and at look better

continued the points to momentum. So everything dashboarding again, business,

think that addition occupancy the the down about you talked I to But we'll develops on think collections, continually our tenants. slowing I look that the the at had attrition momentum I'm if we've tightening year. in some business cash points sure We've on better into call. basis. resolution to as it get attrition just weaker around through

Julie Swinehart

just that, And million and amounts previous add this improvement in of impact each there's that called out as right? to we've quarters, $X period those reported of QX. on to We of as XX some XXX from as our back amounts. Page of from We improvement Wes, would way XXX again the in basis improvement XXXX, quarter, the prior seen basis QX prior point I the approximately growth supplemental QX collected, well looking points

So those to pay see we continue do tenants on older amounts.

I to collecting a it resolution only as of our of call the guys, a that So of XX%. received will the within again cash-basis supplemental, XX balance so And come XX% yet we're we X% component the from that's those disclosure, our tenant the hopefully, lot think, pointing as XX%, of not enhanced Page population, in. the just

cash you'll continue basis. It's with collection demonstrates ABR. we the each on monitoring hopeful absent every to that we it resolve. health, is I'm which of We only improvement None to those saw the and expectation basis, contemplated to ways year-end. hand, in payment which why doing So, with you've from it's our cash it tenant said, guys group other the for then things there's XX% guidance numbers got rate, for actively could tenants of And the all But that those I'm if a down obviously but full that saw a good range, I move tenant, come higher that are think way few of see company. we're can in hopeful tenants. some that basis. some the And cash of and continued come two is on tenants right? really and news out, on-time from quite as and off the happen, of those were of our that one for see QX. would demonstration it for cash that be basis, They move-outs, and off

Wes Golladay

be all I Yes, the talk could have missed from a the where question, but might have paid disclosure. But you may the do it you I not for that got tenants spot One it. accrue rent love potentially it. expanded which on there, you couldn't cash-based have quick on upside? be about disclosure And

Julie Swinehart

We have XX% but terms even quantified I the current in period, elements the it dollars. So question. the have collected appreciate page. guess I that on in don't we right? I've of of total, got We've

collected is But as was part I the not end I XX% population tell tenants of income. cash-basis recorded quarter the uncollectible expenses revenue from the lease as, guess, $XX.X contra at within technically the our million. can you of So billed-not-yet-collected

think possible. it our many And it about Now on $XX.X of come year. as last range could I of deferrals from but should I fairway again, some includes call that deferrals $X.X is would million tell none come in that of in. very that teams Again, you and in million bucket history contemplated our of guidance are focused some that collecting as dollars within

Wes Golladay

Well, maybe last it. one Got one.

a demand any type pretty call, about feet. space? seeing talk On you the between in space exception for that up there good X,XXX of last being Are the and XX,XXX with the square demand of was tick

Shane Garrison

better. a It's bit

bankruptcy think you But some velocity. of that perspective. of see were had in I bankruptcy QX to Just pure in kind which Xs or generally, were were continues also and three increase we our backfills, comp we think that backfills the QX, overall a Especially, velocity. of up our just helps to right? I from those six demand Two splits, Pier quarter. X.Xx,

So better, I out exclusively. a it call wouldn't but bit

up overall. is I just think general in momentum

Operator

McConnell question And with Katy Citi. from our is next

Katy McConnell

metric we last bit color progress how few what some this about quarters? has on upside should And provide new it you drove the stronger this over little But given think you volatile lease bit. the mark-to-market Could forward quarter? going spread more a just been touched a on

Steve Grimes

hard paint a to of linear picture. It's kind

the pockets either, this I don't untouched environment, comps see move-outs. over is from certainly I'll think But couple it inflationary there's most especially an the But forward. expect going our of given environment, things pipeline. that be and looks in-line outsized last totality. think baseline especially I like Our the use, right? see context really, we'll in the just ABR But right? rents of to in I think diluted in of just a we what has relevant we But here here, quarters, couple of ABR kind

So, million on a converted last for dollars, quarter, we signed pretty were robust at million was its us leases. new in number $X.X and pure $XX We which the quarter face. to just

million XX%, really was it since if from you're kind which $XX.X move we're and XX% a at pipeline grown fairly quarter. million, so just in don't the QX. take of the then, robust just So, $XX a pipeline, net has But net-to-net you

back, when I certainly even you peel it's think and compelling it interesting. more

in $XX million is average it over $XX. ago, Our was A quarter $XX. rent that

you not its can to XXX XXs the kind the only accretion ABR pricing that of just today. in considerable basis XXX the points of occupancy running we're portfolio power pipeline XXX the at points but So feel of and basis relative and of low general velocity, to

but will definitely the So, that play momentum out year. we pricing like and certainly feel also power through

Katy McConnell

tenant Great. talk whether you're Thanks. you're side small-shop thinking forward? fallout factoring the quarter, more and further how you can this going about on health And then given non-anchor about in thought

Steve Grimes

Sure.

most I is think, important again, So the pipeline the part. is considerable,

tenant actual and CapEx, tenant We understand to of every down rent rising continue if CapEx little right? Our a at sure bit make you if forego a That makes get to looks back again, roll being intent to a you and collections try the Obviously, of has we lot save our negotiate to looking XX% XX%, like. come additional environment, will can, last been dollar, need can what also spread. we kind it sense. in that tighten always and at said, to a especially to And fallout, we of

tangible from is today it's perspective, than visible interim it and been think there's much I pain. more But roll a some tangible. rent the long-term and was So, more much pre-COVID

far As trough expect from the fallout we as still here, couple occupancy quarters. next of to in

on we I on in forward feel don't from in very flows the we here. make think fallout it the of obviously, focused the that cash merchandising. part this and And there's any and momentum moderate some replacing with focusing really especially will are tenants, cycle, pipeline,

Julie Swinehart

a lot of space collection tenant from dispersion. And Katy, sizes, in not terms real just of different there's quick

in anchors, mid-space, XX%. X,XXX So subcomponents collected some call that shop, we XX,XXX collected collected the at the XX%, quarter we feet, XX% so, to in quarter; square XX%; it, the small of

quarter. small led technically, the actually So, this shop way,

Operator

our And Securities. from question Chris is with Lucas One next Capital

ChrisLucas

updated the what's of the this guidance? just in. & or of those two Is year's delivery there Hey, to is in in Or pad terms sites? a not associated any of contribution couple with G from on the any drag One in Loudoun Julie, there just what's H questions at guidance pads

Julie Swinehart

portion elements would in factor if up into minimal real current of much because operating space in can't There's current once bring CIP in noise with anymore Chris. question, year. or the and it's Good estate not Yes. the interest, that say you service you you capitalize got along year you've for I capitalized expenses. down that the that out the taxes, the

be So, XXXX full first would of the a year stabilization. story XXXX, different certainly and

in a or route different So, like guidance you with would to what's you go going were out. some additional thought I spots,

Chris Lucas

cash-basis you collections Well, with in your you're first what the I going were was quarter. assuming at to with go about XX% given rent

Julie Swinehart

to Great. Great. Happy answer.

some brief around midpoint move. start comments can with I the perhaps, So

moved on we performance of I midpoint in the guidance strong up said, So QX. as based, really $X.XX our

April a and benefited collection us also helped to taking levels from at to the influence that up peak move $X.XX. We really

I So were recovered also quarter. of recoveries you of again, the very rent about with And curious XX% first during this we base can deferral quarter. XX% from the proud layer. share billed also of really, the we collected

last on call. I the think we talked about that

XXXX, have we tenants as in would to from curious paying efforts see to additional those our were were January be them successful deferrals of many and we kind an of how For start layer. who asking

billed on have confidence think collected the looking additional XX% cash-basis it's April, and some gave about for rents XXs deferrals XX%. and nicely fact I layer optimism. already XX% the us tenants paid When we like that in that base trending and collected are So, high April were

of rules, hit the and cash-basis I accounting it doesn't So, appreciate even from you us binary think to mover. And the the It's nature tenants. main benefit kind you hindsight. as know of allow

more from about can in XX% think XX%, tenants, would guys we that up when QX guidance. So amounts in think, April it collected to have QX, can't collected, I taken although cash-basis to record from that it the fact $XXX,XXX we comes I which on those our

To a low how It on the reversal Wes little being about exceeded largely to if get performance the million of your a occupancy again, to least and currently rent there? with both get the that of vast expectations based likely April. guidance a range, collection are level But met strong the specifically move be the would So some the I of collection QX, the end, take declines would backwards of at cash-basis and midpoint as to in In think would was, we and $XX.X end what's kind occupancy collect not that like on and, in of trends asked into we that peak any again, would the XX%. retention due strong high about. experiencing, we're not majority point, moving coupled deferral. continue

hopeful tenants, So any of we'll above the that certainly but I it. not billed lot it, we would of But amounts of of all us take end range. the high got cash-basis collected am a if the it from get

was factor contemplated guidance other or to changes in cash-basis population. the The tenants any not

kind another on the space will these through So tenants so is tenants. demonstrate their there's line, and folks that cash and million this some assessment. mentioned out, that's basis really of Because straight straight these over line, stay the really term, and again, that's will of move position, they of the $XX honor to much lease of the of the be feel hopeful reserved but non-cash will I'm whether root time, of healthier cash-basis some in a of we end kind that reassess we and I able

off example, record move guidance. on just we line not of element would the extreme an straight if million million in cash $XX.X And were that record in so to in today, flexibility collectibility any that all require assess rules the would again, to yet. And we $XX not to us more basis tenants and have we

Chris Lucas

you Shane, starts of I for color. a for recycling or before. what future acquisitions. on either about the was That's question you. good then capital needs just Thank side, capital there new as disposition about lot were Thank potentially development was thinking a to you you're if thinking about to particularly so curious pay acquisitions much. And

Shane Garrison

Sure.

the on triple-net last or So, I XX about call, of trade up whatever we've full but continue think have, the happen that would last very cap we regardless this assets compelling may quarter's some liquidity to few XX we still pads year proceeds. other almost what lined have talked go parcelization, be would that certainly need that use are that a circled to of this from and standpoint. would some rates we at be a trade We that large of kind or

go-to we bucket, have a it's So, non-core. do generally

to in we to Chris, other to thought dip But prudent from bucket compelling a have, that it. there's standpoint a time, asset of certainly kind try net it we nature, assets if there. could you and few given we make need triple at management know, we that attain prices and liquid as go obviously, sure an market First, and was was generally, any the assets, we would of are into if

Operator

question from is next Derek our Bank. Deutsche Johnston And with

Derek Johnston

is further discussions can are the negotiations? only timing insight the leasing Urban? insight will Circle of Avalon's East? residential pipeline you post has there some us is get how broader we the any progressing help how lastly, I performing How on then give And this stabilization guess changed? sense And and a that lease-up since also Can on

Shane Garrison

good Sure, morning.

Towson, we So, progress. to continue

Ethan, quarter we moved that it quarters one, needle when said got we've given three of is open. to definitely and Reed XXXX now stabilization there. at least there a Madison the I we right couple We've obviously, the we've Shake out denominator maybe we're feet that at Urban, two, which bit leases cadence got from X,XXX now. Shack, we would moved running or a and last think the progress quite got Urban,

So paid we've that point merchandising see gets in the the I off your with think maybe has the traction and patient, to been you therein can that implied and quality better. regard lineup

and, just So a points right kind the sun and showings certainly quarter comes active is north out we've colleges, that to Kind XX%. the different. And corridor did point, we of more that stabilization, AvalonBay to we us got everything no your gets many as ago. think have even of of better I now, LOIs in

continue glove there us. they so somewhere think a XX% or progress they of anecdotally, with I in to now right kind are lease standpoint, from around hand

think mined is there more outside tenants and be I to in corridor. the

not and quarters a to relative the couple in especially So only leased can of great pipeline. it activity, but the certainly even ago, you feel

Derek Johnston

hinged success? that's has success especially derisking Loudoun helpful, my proven East, Now, restarting is as somewhat Towson, Carillon a And in demonstrating One very in Circle be, Shane. opinion on to

Shane Garrison

million But it's Yes, bit. success, qualify Loudoun at the being, won't it's pre-leased multifamily Towson, $XXX we're XXX% but $XX quarter but maybe and in end I'm multifamily million and I almost a I would XX%, XX% at say not was already a Yes, it question. office insignificant. And or diminishing a not great million. It's $XXX post already. say the runaway quarter in the with

validation sheet, the I investors team we only but So, do the basis with relative is And more our gravity proving proving a given important. portfolio, our that to we we're this think looking not off. dirt Loudoun, the have and I Towson, conjunction that and concept is to on think have pull for balance I in what to think,

large your has point, Carillon you and at much think if will, it yes, when be, some quantitative certainly lot are aspects credit, But again, phenomenal So we is say qualitative that a thought and success. our getting a that certainly of do go how we to process stage. should and of just is, I

Steve Grimes

Steve. the From said. all to we we had Shane going Derek, that on is This developments, call that the I'm the of to recall you might big perspective add three. what

capital are details this out, some that would Julie as further of the as close terms has provided Shane projects the then, into front had And then, of sharpened on pipeline certainly is by, delivered and in side made a real opportunistic that for comes to allowed sheet has importantly, All that. to lot way. when said around the we up being what and pointed entire of the year, when toolbox we these And to of deliver has it to encourage then, clear last strong. here. but that to sure order along very go coming not pencil, Julie to on clarity execute thing as doing has coming a on disguise a blessing I we what very, was supplemental stay further with have projects us Shane dispositions. we actually with our have right of around of to we delivering very some the can acquisitions like So the quarters could it said, could in continues I'd to-date going front you pointed us the timing results so add at in the what all is, to we of be unfortunate be construction. might has repeatedly, on tighten good a mistakes more Shane COVID been a a we'll Carillon lot of of know be momentum this, really when perspective start All it lot assets And is, the because we being out that that and The was everything now you do time tools that outside page, should be bit in I of we piece lease-up. his of fairway project clarity of I will, that onset and there's the in to balance the the year, from is has how But coming it of be said, nothing that. returns, think every what on good pages the might his development operation proving and is be what out these doing team and bit think one very One that strong. is time has that prospects to was, we a have the a to Loudoun it, very avoid if we

I that to Shane's wanted So just commentary. to add

Operator

with Tsai Linda from is question next Jefferies. our And

Linda Tsai

the they occupancy-cost metric off or main consideration moving Is of can terms the the mentioned key you cash primarily In basis, Julie, the process stay ratio through? go through term. is what's you

Julie Swinehart

tell detailed, Thanks a I process for would very I granular two-pronged. it's guess and the of, it's you question. sort

our who teams to So frankly, the accounting right? a I They not to data. close role have monitor are, my different tenants, ask

layer payers, they What So would able just bit what but if tell not paying in which also tremendous higher is off, on are creating to they're a they hurdle basis? in a it's these we We're by Are they're off, seeing tenants come cash but they trends interested rent and of tenants never a cash for there we amount pay they deferral a Are and full, they to paying so are you on basis their full? in volatility on are that have a current the late hurdle go seeing? are judgment. moving or is one? I different of paying little are paying? their if it's Or lower than to

a thought candidate okay, present house. of guys months Shane's accounting vet gather like initial So, of will side data, good about, for on have seems these That time. with the kind six paying to been an

their and we on of the then valid intel really they topic. So terms tenant asset that tenant And the input consult any the they're have the with managers, we opinion a other because are and to very go anecdotal the in conversations managers, who closer property close to have. or any value

tenant So collaborative much approach use categorical it's direction. of approach not terms internally. in a in either very a It's

and that continuing quarter just to can are to and page, if you you on will. those the every happen to the will committed information assure we continue each conversations I So provide

the the XX the helpful to to happy in always the a there's There's phone lot Pages through. supplemental on information there. investors call, said the So mentioned, XX on a as I and is on and of talk pages hopefully out we lot get to

Linda Tsai

forgiveness component period? continue first what year? the then, of the in is that a of those Is like? remainder for a quarter, through or concessions arrangements concessions do the for the your tenant it the color. nature And And that expectation look Thanks new percentage rent

Julie Swinehart

Page modification in involved either QX concessions of it of that this earlier weigh The on believe described that from and or and much a tenant. few that challenged significant but category larger down the ask was across I'm is well, we abatement use tenants I was and and full to only one lease X%, abatement QX X% it's the as that thinking were in category Yes. quarters very combinations in with certainly was a abatements from XX deferral. modifications or think I I'll Shane lease the

Shane Garrison

the it merit back rent. tenants hybrid. I have up to balances thank you. success shown These as of kind trying or opening is open of And would trying are back spring. we're say general, a old late some some that Yes, percentage in in up are as up clean well a here to in temporary

of is understand short kind is very it make your statement can with a just trying period. there they a So, time correct, blend and to in we're if

Linda Tsai

Thanks for that.

going payback The Just TIs, that on forward? the one history what's to year how does X.X compare expectation last one. and

Shane Garrison

Great question.

new I especially on think low, population. $XX the the ABR are the given right, TIs

the would say, it's most an environment. like just tell it every especially So for really to looks what going I the to Linda, inflationary try hard lease, with you forward, lease. we in get

any it's try payback to forward. great to to case, that and the real still have like looks but hard we so tell what given we'll confidence exercise a And continue estate, in going momentum, this leverage, leverage, you with that

Operator

Our Instructions] Street. Rojas-Schmidt with [Operator from question Paulina next Green is

Paulina Rojas-Schmidt

sense helpful. much the last maybe this class front think Do on or be coverage XXXX any has the would how the market how lifestyle thoughts speaking, changed versus do you changed months? asset private for in more interest updated or centers you have of broadly color the in Any in

Shane Garrison

lifestyle I obviously would class out or hit been with harder. around has morning. bit if any In asset don't tell is say interest been is though, better It's fairly the indicative you, loosely. worse. there Good proportion in last an there's of higher that know thrown Sure. the month, would that a unsurprisingly, non-essentials general I

it, in component, aside, is mixed-use which right? a has COVID is a viewed Interest and a temporary as kind office. especially mall true which sales, this asset with viable just case, qualify multifamily very proven this So of mixed in If lifestyle case, have you high, blip, use and especially reconfiguration an with of the the or right, issues really continued quarter enclosed out, really it play just pricing but the has so, retenanting momentum momentum which question proven broader is yet the in of and sponsorship. to and the around the kind power, kind given there, is last

from the have exclamation of a sponsorship and If assets a that But, $XXX power. has standpoint? get play you has on of to big complex out. an only one-off transfer yet think I think what best think generally, I the And million-plus, appetite better put I point assets that that are COVID kind is basis on

very very also expansive for alternatively, covet multifamily So driven but need are and expect would is out or, great exposure of really the retail are exposure at I number much more the sponsors amenity. extent to a there some interest there power that viable looking office more retail retail that by

Paulina Rojas-Schmidt

not And question, you rent detailed helpful. payments? little Very paying most then on rent they or their were them current were quarter, lost more of this a the about tenants thinking

Shane Garrison

So to it's hard interesting. categorize. It's

very would diverse. assumption over of maybe the think I space total in I the restaurants. would popular the you be restaurants. XX% It's quarter was turned tell

at quarter. We turnover in already and already leased we've which Some and the feels had with didn't a over move Bath leased welcome to which tenant. LA had that this look the a like end we Beyond out in the & watch That year. quarter tenants had is turnover already quarter to moving build issues. just deal was which forward, kind list last Fitness was is had in in a Party exhausted already point. quarter the the much in out leased. have the I that the We there vacated anchors expiration, City an Bed We had it's really at any new interest clearly beginning which quarter, is a the from of it of were closer than anchors, most of If five

the on we're overall think the and and and again, and So, focusing it's gravitational cash basis greater on focused of really that's exactly really relative assets going now. positioning about forward have quality to a on just I footprint merchandising a right flows what momentum pull and

Julie Swinehart

add just terms it in can was significant. of population, cash-basis I tenant And the

the was nearly it half of nearly of half it the and Within the move-outs, GLA looks ABR. like

expirations of to the but So about rules. some the tenant is and back is related move-outs would cash-basis nice ABR tenant $X them working move-outs isn't in and intended. these accounting were This best natural were tenant think cash-basis guess, of sort nice million the but many I early quarter accounting to this as the of point cash-basis word, example, I I

XXXX of So these revenue the guys cash in early from move-outs, a you moved noise when straight-line these see they was or number the in that don't basis. because in to all taken

guys. tenants, were So the to move-outs lower those of a yes, amount your so from least point, levels fair cash-basis at payment

Operator

next Zhang with And our JPMorgan. question Hong from is

Hong Zhang

bring low little guidance report, given bit imply to in can of with of, seems kind to seem would of end material what one. imply the a talk But of for in run year reserve? no Julie, quarter of $X.XX about, just a the is or midpoint the would that the $X.XX the rate this which change about you you $X.XX income, thinking FFO Hopefully, closer a $X.XX. guidance first with to more just quick $X.XX non-recurring

Julie Swinehart

Shane I And occupancy. you Sure, about expectations talk sure. think our heard around

of there a in quarters. the element of an there's couple So next trough

So from QX. negative I think directional that's a

tenant we the I of amounts. in component record July. volatile can't cash-basis the period in component again, most that biggest collections pay And is we hindsight, even the current just the think, or can't use they dollars the benefit again, QX within

can't the we in dollars pay January. that year record forward And so fast year-end, the to in they

be reversal trends, in combination again, low-end we're occupancy some in to the collection negative beyond the So I of would what a surprises a think modeling.

off can then me. midpoint these much to any from comments think feels very aren't you again, of the play today So collection high-end the on guidance the cash-basis the to And billed on $XX.X basis of the in And my that of top from even in of also high-end quarter. again, I of the element and tell to related were components that move folks some the guidance. not that, in paid if not even accounting the million at cash during year, end that's of these tenants

materials in go updates we provide So again, the and and it the and the through year. quarter-by-quarter as mid-to-high details comfortable feels we to will take continue the provide very

Hong Zhang

I are or portion that tenants of and And last expecting for large collection, Are quarter the could still tenants deferral a if bit that in one, Got them? just it. but guess asked been on payments deferred another just are weren't or at tenants sneak looking a your time with this I disclosure have they rent they guess, haven't what were received little year vast paying you like aren't that I for, paying more now? conversations

Julie Swinehart

I time the that that cash the with our do come again, we've And so get portion about uses. of just A basis, to that that some dollars. in. folks those on I in for the really we'll don't dollars benefit And context, those it's and over I are dollar, of on QX. And think repaid but this wasn't every see a is chasing the expect why team page we challenged $XXX,XXX those put additional good tend people I know, pay. the again, portion seen is time, know of we'll talking of that

Operator

I'll reached closing the question-and-answer remarks. Steve And over for the to the end now we call turn of have Grimes session.

Steve Grimes

everybody. thank Well, you, Great.

importantly Julie on any QX you sharpen outlook of have To certainly noted, you about require Mike going of encouraged the do to this reach results As understand We encouraged do and pencils the help prospects Gaiden. your that quarter models. year also very you beyond. had the we're ready and that. very as perspective, we out by the is to for traveling questions, And from her to more stand then your and/or to we're mentioned, extent And that again. many our

are field you're Especially a So, host interested out back in the bit interested, get to in if tours, that. some certainly doing happy in we're to extent the you of any you property thinking light spend some One of encouraging all for of the certainly that about that you great would to Loudoun progress made an all our doing. time at I we've asset, trip think be

with Zoom, that, soon meetings hope you last via let's at Finally, many we meeting forward do that's but back look speaking and the we're albeit Zoom to in-person of NAREIT, to after that.

again time for your We much RPAI. support of of attention very all and your thanks today. So appreciate

Operator

this And your today' you you conference time. at and disconnect lines for participation. your this may concludes Thank

Retail Properties of America (RPAI) 8 May 212021 Q1 Earnings call transcript