Retail Opportunity Investments (ROIC) 26 Apr 232023 Q1 Earnings call transcript

Company Profile

Participants

Laurie Sneve	Chief Accounting Officer
Stuart Tanz	CEO
Richard Schoebel	COO
Michael Haines	CFO
Craig Mailman	Citi
Juan Sanabria	BMO Capital Markets
Lizzy Doykan	Bank of America Merrill Lynch
Todd Thomas	KeyBanc Capital Markets
Wes Golladay	Baird
Michael Mueller	JPMorgan
Linda Tsai	Jefferies
Paulina Rojas Schmidt	Green Street Advisors

Call transcript

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Operator

Good day, and welcome to Retail Opportunity Investments First Quarter 2023 Conference Call. Participants are currently in a listen-only mode.

Following the company's prepared remarks, the call will be opened up for questions.

Now I'd like to introduce Laurie Sneve, the company's Chief Accounting Officer.

Laurie Sneve

Thank you.

note call matters the are federal laws. please discuss we meaning begin, securities today's on forward-looking we that which certain will of Before statements within cause risks results future are expressed such factors These significantly by that and implied statements. statements to differ involve which forward-looking can forward-looking actual or results from other factors. Participants should recent filings about report Form on company's risks annual learn these SEC, more the refer with to and other XX-K the most including to our

non-GAAP financial GAAP In on will found addition, website. discussing certain non-GAAP which to we Reconciliation call. results in supplemental, these our results results of posted quarterly be today's be on is the financial company's can

Stuart I'll the Executive company's the Chief Stuart? over Now turn to Tanz, Officer. call

Stuart Tanz

Laurie, you, Thank and good everyone. morning,

me Officer; is Chief Operating today our Chief our and and Schoebel, Haines, Financial Officer. Michael with Here Rich Lori

in a the in past worked first As for and is release, I retirement. couple for ROIC. then for of press at and leadership over be reported best her Sneve and with have at guidance Laurie XX years She some years. wish the her over years, here by grateful and Pacific together am us her of everyone Laurie in retiring our Pan XX at missed truly weeks. the all invaluable ROIC contributions I very will

the with important role. of XXXX forward to back Laurie look company's With part her Officer. Mike, Lauren Accounting team Corporate been retiring, Rich in new Lauren past Silvera as decade. the in an I and Chief joined ROIC for will working Lauren and become Controller the has ROIC

results. Turning to first quarter our

tenant and base to continue Our well. perform grocery-anchored very portfolio

leasing XXXX, portfolio an full leased start our terms end. at of our in at fact, history, most all-time in a essentially activity, of notwithstanding lease the over new quarterly XX% rate amount being space driving high achieved quarter record quarter company's of and active at the the In portfolio we leasing to

growth. solid we re-leasing Additionally, rent achieved again

our leases XXth achieving was years it new a fact, row over rent renewals. XX and in consecutive In both quarter re-leasing on of growth

Speaking terms the Many including posted to number out option a valued to well five-year most growing our of of to tenants. non-anchored quarter tenants past active tenants, as period. typical extend anchor renewing as continue execute far tenants options in renewals, reach strong long-time of our broad us with looking we by renewal early to range of a

our the tenant the its think of demographics. is indicative the base long-term our We strong attributes of It activity strength grocery-anchored of strength today. with of indicative renewal also and location and portfolio appeal is

record-setting inordinate February. we same-center that Dampening of up the the during result quarter, of we our leasing first had amount incurred notably, and in back area Seattle and Most July severe primarily costs an as in a removal expenses impacted the unusual snow several snowstorms NOI. FFO

incurred a we for during of of We we first with onetime that expenses, item on terms also quarter these to had the a seller our the a acquired. Notwithstanding related expense previously in year. open guidance concluding track remain an property

also are the to enhance through turmoil. light our portfolio Along our we to initiatives, flexibility, working of in especially with working our banking enhance leasing financial recent

During facility. the credit of the quarter, date first extended maturity our we

years mature maturity next as extended to flexibility year, wasn't out much extend date with until by to facility the as we it four the years. While scheduled the now to from five

swapped swap term considerably. fourth rate our quarter, market we of loan, rate rate during interest top the closely reducing debt floating our floating watching Additionally, the

the take turn you the our Haines, details. through CFO, I'll to call Michael over Now Mike? to

Michael Haines

the totaled Funds $X.XX $X.XX operations equating per diluted diluted attributable from per was GAAP common equating $XX.X for net quarter first share. Stuart. to Thanks, quarter income shareholders for $X.X million, the XXXX to first of share. to million,

results. expenses. had rental added for the That several on, actually income that touched the revenue Stuart operating the came GAAP fully our first in first from quarter, we was notwithstanding such our quarter said, above actual during that budget the property-level our quarter first As in expenses budget, quarter with impacted line

to bad was the our to the XX debt other approximately net quarter related perform various bulk vacancies. The tenant first base that onetime In to which $X not that Overall, X.X% million expense was of our the total below for Stuart million, our adjustments. mentioned to debt was first respect account $X of and of debt of words, bulk the tenant quarter, budgeted of With continues combination a revenue. related well. amount

extended Stuart we the noted, first maturity during terms the our financing as on line. In date quarter, credit initiatives, of

maturity banking maturity XXXX. for working March the flexibility our to another Specifically the extend XXXX February XXXX, with date group, to the to we March year from with extended

Additionally, our are on on line SOFR. now borrowings based

also to capacity $X.X up million, to the capacity double We have the its on line from the flexibility $XXX of credit current billion.

line. As quarter, of drawn the the had of end the million just on we $XX first

with highlighted, debt rate eye towards our closely we namely floating Stuart path, million to an rate $XXX watch the loan. our continue market As floating term reducing

year. and a of interest the million term X.X% $XXX at capitalized $XXX in favorable first our through we quarter, rate entered rate swap the million two During rate on are into August of window on fixed loan, interest next locking

XX% of we rate XX. With as XX% place, were to floating the March we started in swaps XXXX, total down debt from our of where lowered debt, our

we more the it year progresses. our lower the interest $X.X assumed the floating of the could put term swaps in as Having company's rates actual Additionally, of million the upon the interest $XXX interest year. on for expense, rate in throughout our place, loan overall would trajectory our initial million expense budget terms by that estimate interest the remain depending for XXXX year

December. the in held mature the options $XXX million flexibility year, rate together that is off including still we possibly later swapping order out refinancing to the of million, purposely million refinancing it in $XXX fixed in in terms floating, with In of $XXX us terms of give positive the

repayable gives us refinancing loan also which regarding two or flexibility time until is considerable term the any another in doesn't strategies. at years, part mature full Additionally, and

commercial in terms estate real terminal, of debt, there as the market, relates regarding forward. Lastly, particularly a mortgage concern lending banking going mortgage currently to the lot is refinancings with it of

banks original $XX had fortunately, one that bulk mortgage on of about the two balance the we together loans totaled in hold mortgage next sheet year only XXXX. Given matures our million, matures the debt, other and

is refinance unsecured both to plan Our loans debt. with

over Now I'll the Schoebel, Rich? call turn to our COO. Rich

Richard Schoebel

Mike. Thanks,

portfolio has activity and been evaluate and more While years, space of year. has the and new more may tenants leasing quiet the in of set existing quarter quarter in the recent terms first across year for have prospective any first traditionally become season. for buying In season distinct contrast, the our available following holiday as that the following increasingly plans each become active with relatively tenants holiday

in and centers. This development. self-care case boutique shop market which child restaurant A seeking the only to expand to and to the of as bringing medical, more franchisees the not more wellness concepts we it out all sectors, is where continue to quick-serve new sector, the space, of especially fitness number continue see in growing and number along are relates grocery-anchored shopping but with a seek and to

company, we our most record leasing Capitalizing posted active feet. the on demand, over for on XXX,XXX square the quarter

high to our new drive robust Additionally, helped a rate lease leasing record portfolio activity XX.X%. of our

highlighted, renewals. tenant activity Stuart As bulk the around of our centered leasing

that leased we the XXX,XXX square involved the tenants. first feet XXX,XXX quarter, during existing Specifically, renewing of

feet XXXX, the long-standing start supermarket square alone, at total scheduled already a space, XXX,XXX were during feet of have renewed first the tenants. of anchor anchor of XXX,XXX the to renewals months terms had In just square In Five of we of the the we tenant roll of tenants. course year. three anchor

the exercise now tenant wasn't through extend Additionally, their but five-year us option renewals whose and of their one roll a lease to involved XXXX, anchor long-standing until scheduled wanting to came XXXX. they lease to

We option us that also three had renewal five-year seven their came out extending tenants years. to anchor about to

extension March to anchor have our renewal expect we now within of that leases future we as into our tenant like renew several to two scheduled account, year, they of five, in all one activity portfolio of the at of would roll instead leases seven-year other seeking which anchor with three similarly roll locations to also this only extend Taking a years. XX, and

foot is currently we several expect to rent. discussions square to anchor in with where space increase which a achieve to the we With tenants lease XX,XXX lease, the are respect third new in prospective a space, significant

we in have renew. anchor further to which out we currently XXXX, scheduled of XX XX that Looking roll, leases will expect

of roll. non-anchor year, space XXX,XXX at terms we the of square to In of space, feet had scheduled the shop start

feet quarter, first that of XXX,XXX which we shop of were space the renewals. square in total about re-leased fourth three During of

quarter increase an and In quarter, growth, XX% posted on terms we re-leasing of the signed increase solid during another X% a first achieving renewals. in new leases rent

spread the to million stood commenced and operating, open the to Lastly, build active leased occupancy between new quarter. space that and rent. taken of yet $X.X rent had with paying tenants tenants the At equating X.X%, start and successful respect new have getting not we from another year, of at

that occupancy, During the the new leases yet not the $X.X stood rent March representing into has At $X.X spread took quarter. commenced. quarter, taking first first representing million during million at new $X.X account of of signed tenants million the X.X%, XX,

expect bulk move we $X.X as the the come online We through the of year. will million

the call turn I'll over Stuart. to Now back

Stuart Tanz

Rich. Thanks,

portfolio as and the the Our ongoing space challenging increasingly continued and speaks demand of environment our of leasing to success on and hands the fundamental our benefits approach. volumes for strength against the of with backdrop economic uncertain

As the on and of we most every demand, continue opportunity mix. strong service-based we our making necessity to tenant to are capitalize on focused already the enhance

that renewing to and continue we tenants tenants portfolio. Importantly, disciplined are as with always, are we and the the we our selective to new be bringing that

acquisitions up property, for have substantially and fully we center, the as NOI $XX.X value-add reposition sell acquired the currently some increasing years the It's ago property we one re-tenanted million. to and play. a Portland the along Since the acquiring back under remerchandised of terms property In we a that contract way. in market dispositions,

a grocery is few stable the in one properties anchored. not is is that property, portfolio center While of our it the

have that we selling. are Beyond exploring this, several properties we other

at the until we with clarity However, holding moving moment, more in off the market. forward are currently there's

Just acquisition market active months short of to becoming signs again. few favorable was show and the starting ago, a encouraging

as has However, to sellers significantly. capital other well back the as pull sum lenders buyers and banking traditional turmoil mortgage and sources caused

activity currently As limited. is deals a market in consummated in actual very result, of terms being the

occurred market been to the in in activity on have where been that the but really there transactions Coast, recently few the the the to confidence know West have low-Xs, heading. sector with grocery-anchored cap is respect rates enough With hasn't

opportunities we there's years market forward experience our in on are clarity quickly are position many we in our move proactively off-market to strong challenges, often numerous in over of and especially sources, and patient, so a acquisitions. being arise, While continue with discussions continue Based once off-market marketplace. engaged change to have be that the to we rapidly conditions through terms

the we portfolio macroeconomic In the rock continue Notwithstanding portfolio. intend the all our challenges, drivers remains our existing diligently enhancing working remains to business solid, our and meantime, fundamental of in sound. the various value of grocery-anchored of

open will Operator? up questions. we Now call for the your

Operator

of first Mailman Thank Craig will you. Citi. from [Operator Our question Instructions] come

Your line is open.

Craig Mailman

everyone. Hey, Good morning, are you? Stuart. How

Stuart Tanz

How about you?

Craig Mailman

I concessions to in spreads that guess looking this at to to kind you of kind I'm other willing go been beyond commentary up longer wanted tenants doing for? rent extend up which to to the and that have on they give in five-year Or you're are healthy, you getting, point? been early. has to I lock of than your what come follow looking other term good. on maybe

Richard Schoebel

depends have really tenant we'll that, Sure. have situation. of all same in we exchange the bunch it for want and and may anchors start and And may option. simultaneously, tenants cases, expiring I are year. an the a so expiring options two anchor we they don't, those situations, in mean future, to other on the In remaining, of have to insist us splitting that we limited the come additional that on up committed want lot term. additional expirations In a in

committed it a some value So term. and we're trade-off additional and for situation, of always getting really depends there's some where requests, of form we evaluate those form on every that

Craig Mailman

parking like those put are are to you kind getting the that field escalators? NPV better longer? in what's you they kind leases or some to of encumbrances had have for say looking may you go off of of When to out kind taken the you able your improve on value, -- of goal Are

Stuart Tanz

able of to number a in one incorporate from There's Yeah. now at dealing the perspective. We're is first with that property an this of successfully level we're ESG need we ESG. terms items very what

we that make Second can do sure can. thing very uses in leases. to whatever is we exclusive the We're active or on front

zones going the create build no anchor ability from The build more tenants. forward. the NOI third to and is Give us more pads

them series obviously, of of incorporate extension. really in actual a to, this but all of we're in trying term, combination it's of the giving different things terms So a more

Craig Mailman

It of like talk you Can to That's you've guys to, contract anything maybe And what moving you you but that then the of our helpful. under have the time the kind there? it sounds of you the don't at sounds acquisition then had And the kind market. of discipline one deal. conference, talking market, have in to buyers. been the on happened buyer pools nature like the

overall. Just a little more bit color

Stuart Tanz

buyer the in out. mentioned remarks, my I I as obviously, Well, has pool, think Sure. prepared thinned

thin the but to a there. market, while once when we see we the pools out extremely are act And again, things very -- grocery as a in good tracking center So very are buyer come drug closely.

have, In couple at that terms of us. primarily dealing with around the still issues. deal level, for on that that currently the of still is items some But table is particular we a transaction the us. We're for environmental property deal

which we tell encouraging. will side. our on on our on discussions we transactions, And move units a into importantly, lot then of as been those some the think year we external certainly sellers, you, balance very is plan of through play off-market pulse I pipeline there's will again have certainly the OP which game of the ongoing with well of more a

Craig Mailman

cap And kind that still in of rate assume those I range? X% low going it's in

Stuart Tanz

have the been range. buyers rate XXXX low that had, -- traded the that have cap in primarily deals high of it X%, small Most which of number Yes. X% very

Craig Mailman

Thanks, Stuart. Great.

Stuart Tanz

you. Thank

Operator

Thank you. for question. One next moment please our

will come BMO next question Capital of Our from Sanabria Juan Markets.

open. is line Your

Stuart Tanz

Good morning, Juan.

Juan Sanabria

morning. Good

to better the some have what just the about to are run bit hoping in and know growth Just of guidance -- range. you removal on would time onetime more be little model a confidence that the and talking expenses where P&L, And a mentioned how of on to but if spend helpful previous the included could have sense those is? I NOI forward you anything the kind snow just rate above orbit same-store cost, of conviction your some to

Michael Haines

is expense, the property know we open an a finally removal it's times, numerous that to parking finally was mentioned disputed operating. I we And the keep the seller be as a the a we going then Well, bought where snow there onetime lots resolution on the cost, that item Northwest of snowfall region, had in took and issue with resolved because them bit and occurred ago, kind couple significant operating plough the Pacific of one that side. on of Stuart and of expense years we came to to a

in expense, was other I think expenses. that our our operating not

right -- you in operating budget. I if So exclude those with our line those, performance is think

Stuart Tanz

look, expenses every mean, terms obviously, budgets in we I Yeah. in modeling, increases do buckets. very incorporate and of in detailed we those year,

any very in control. were the items to relative quarter, we are again, to see very, won't which, So focused think going you've that situations Hopefully, and like our first going you're out forward, of I don't Juan, see. seen

Juan Sanabria

onetime And with dispute how much item was that with the the seller, the roughly?

Michael Haines

believe. over $XXX,XXX, It was I just

Juan Sanabria

you given de fairly minimis, but kind I just Okay. May, kind of for us think the just. could And is then of out already had the What's finally just the to of bad is think in the exposure, of of your in mentioned was year? for running debt which But we're which curious, crazy if known fall line. You've balance about. assumed assumed some obviously you balance of remind year, tenants almost kind what's

Michael Haines

there. operating more very $X and the To that up. million, exposure should Morgan is pop million -- any other headline our for have any I might which range the we onetime covers out to of your full than think $X year the point, typical The to minimal retailers

So that range for stand the entire should $X million $X to year well. million

Juan Sanabria

very much. you Thank

Operator

Thank you. for question. Again, moment one next our

America. next question Doykan Bank Our Lizzy of of come will from

is Your line open.

Lizzy Doykan

Good morning.

Stuart Tanz

morning. Good

Lizzy Doykan

take is changes slightly in put amount wanted low-Xs on you changes any about that still maintaining quarter? in and higher Or in out acquisitions dispositions assumptions last to pace from out quarter. curious the pace. to if priority guidance willing there's last leverage? would the just pace in Just net put I EBITDA the you to around any assumptions was on I be was of -- guess, your as debt the see on or

Stuart Tanz

Yeah. guidance, still we're to sales I I mean, answer the thing other there's year. have the terms in to be year. half you funded guidance. of speak and of -- million as on track and important in The I'll lot acquisitions on the no doing. that the $XXX get the to second of that can But -- guided Mike, the will question. change that Obviously, But goal question this the things mean, we the the half we're modeled through a is second more

Michael Haines

our debt leverage or them. intact those keeping where In relation to they ratio, lowering all are that's

Lizzy Doykan

Thanks. still dig to growth it. on that And X% wanted X%? on range assuming bit NOI just Got to more. didn't into same-store snow the we that just remain spread a change. the Are guide I the to given seems or same of that And

Just end bottom your wondering assumptions to the on leading changes to outlook of the that any if top and range? the there's

Michael Haines

would up in starting quarter, growth had year. out down as same-center through budget I the steadily NOI the say our slightly No, ramping actually we and first internal move then

four So earlier, that within same-center year. on in growth the at months of achieve out the put that range. still full even we year, end this guidance track to That's the higher range NOI potentially the we're point, for including

we're that as stand comfortable with range today. we So still

Lizzy Doykan

on efforts. the densification couple And you And quarter. I update efforts the could lastly, others I what's if your last mentioned of guess, Thanks. get Crossroads? maybe latest had the at Okay. latest entitlement on then just

Stuart Tanz

and fully is another maybe waiting close moment the probably sell for just done and fully very final entitled we're out, a it. to in and put Sure. entitlements, Well, that on XX we're time to getting to Panola days the getting right XX bit longer. market Panola

Michael Haines

You said Panola.

meant You Novato.

Stuart Tanz

Novato, the in we're at Crossroads, terms to the now expect be end quarter. permitting sorry. of by And completed currently probably we then which construction X Bellevue, of meant, not through in I Phase on Panola. the moving third process,

not or to difficult will marketplace. that complete once clarity to municipality to we is that the tends commence more given time, at whether construction the But at. the we pace it's there gauge Although or the operate in process wait until determine

Lizzy Doykan

it. Got Okay.

the as clarify, is just been, those the guess, chain has still it biggest hindrances I delays? the So or to are just guess, just, supply same of -- I seeing time line factors due it to

Stuart Tanz

related things. I the Yeah. process other really Bellevue to city is the than chain and supply it mean or more of it's to internally

control. but -- So we again, this outside of process Hopefully, anticipating the our get through the -- again, maybe through end. finally get that. third But towards we're quarter, it's

Lizzy Doykan

you. it. Got Thank

Stuart Tanz

Thank you.

Operator

you. one next please question. Thank moment And our for

Our Capital Thomas next from KeyBanc Markets. question of will Todd come

Your line is open.

Stuart Tanz

morning, Todd. Good

Todd Thomas

whether power begin mix portfolio, just issue. and with little the a rent it's XX.X% to a conservative have spreads Hi, given you within regard the The leasing space term? curious see how bit leasing spreads morning. a taking back have quarter. was more to whether spreads. a rents even of question to talk solid good is I and in the the improve leasing more Can not leased why strong you been to about portfolio Rent that you approach the just just just had or stimulate stronger quarters, near are on several in last maybe very demand little order production leasing pricing and but in to sort lease you're expect over

Richard Schoebel

and a but on back are they that's rent by spreads. in significantly market are below are, leases that we we're and at then also I rents Sure. of scheduled don't and which the some dictated that those are baked side, really the see that the what options, of to impacted already some where below we'll control are that mean, market, in, lifts. there lot good specific renewal were by of leases have terms over any where is getting obviously, And roll

it occupancy, opportunity. rents really give we the and But does opportunities as you say, the us right to leverage drive have that the when with

Todd Thomas

able If what's a Okay. we and XXXX market fair ahead like XXXX expirations, you'd to with those mix leases of the look to between be that versus option balance value? rents negotiate renew also or the

Richard Schoebel

that do not there I don't have have a are. but options, specific percentage

the Some invest to tenants are early in been in they where leases a come options. additional want the place of properties have us anchor off situation capital options, to starting they where their for is the what space. in while, to particularly That's some secure these burn to driving to

that hard expect consistent give but be range, performance. past So to will you a number it's it would specific with our or we

Todd Thomas

a I bit do if the And or on maybe just look you year. Mike, -- variable pricing the about still And out. there's million $XXX on maturity Okay. detail floating, this would swap loan million $XXX some an of incremental thoughts whether or of briefly, then, to think for this unsecured remaining notes? little you provide Where that today portion might touched term more you think but add that could the you be XX-year rate later you amount talked that's

Michael Haines

the second part Let address your question of first. me

maybe do given goes keep bounces mid-X% around. in from X where XX, to today, expect year to of I around where low here. my spreads treasury the have think would it today, X the XX I kind a think I are. the range deal XX probably I is XX-year or to XX-year

we the as goes, as swapping to as wanted But far possible. flexibility maintain much as

of hopefully public Our with goal issue December and the to and public maybe achieve investor interest a that $XXX are bonds. reasonable new million refinance is $XXX to bond up better to We issuance due look pricing. to million in

$XXX to into set, of that another the $XXX ensuring when to bonds So a it available have then XX which $XXX date bonds million get those looking to XXX with million term along that the million swap leaves look bond the we refinancing of XXXX. do off. year another a $XXX end becomes total of of with next by again loan we We part That refinancing deal, million the could million.

term of of million and So it's back doing deals, issues splitting issue of to two kind the they mature. loan our of bond kind flexibility two public a refinancing back $XXX that

Todd Thomas

to result that then of be right? you place as swaps it Okay. that put quarter, And now $XXX,XXX guide. Got think that the expense I initial year it. expected you the full said That's lower guidance the during about in a helpful. that as interest is to pertains than Is the

Michael Haines

curve modeled curve was that's see long. was, know, that's Where Yeah, curve term the the right. the and the And we we at little or the and that bit. year initial million moving $X.X expected really the guidance. time. we'll you the as when more. interest loan It's to on model But around float a based the for And all did about swapping original where

Todd Thomas

December outside But there, capital guidance? there of maturity might embedded raising the what in the do is and you Okay. additional activity no

Michael Haines

That's correct. Correct.

Todd Thomas

you. Thank great. Okay,

Operator

our Thank you. for question. next moment One

Wes from Baird. come of will question Golladay next Our

open. line Your is

Wes Golladay

Stuart. every Bed was that, not looks Bath follow-up you morning, tenant news every on buybuy these on one the the & overall of just like have banks the be that are some And that branches or wanted exposure you the every correct. exposure then Follow-up day, but Can would sure good your Beyond. day Hey, in in comment make I portfolio. of question to BABY. -- health It to second often? so to

on recapture space you that? comment the And to feel you how And do Aid Rite of any exposure? year? look then Would one, this your can the you final about just

Stuart Tanz

only we buybuy two Sure. we any don't Bath for Well, ABR Beyond, Bed -- do & accounts the BABYs. But have have X.XXX%.

expect buyback less ABR rejected. to than sales. locations, strong are great a be don't these an So very perspective. half two X% leases These in of from We babies

certainly we good go do we up to away. Rich, active lined and both very if have some comment Aid? tenants bank However, the on and to spaces, branches things you Rite market re-leasing were do been want have in currently very

Richard Schoebel

Sure.

from rent, XX across of terms leases account all in total about portfolio market. Aid, -- our is with which of they X.X% of leases, base about those there's In are for many only which markets our of only below our Rite

the in Aid One of significantly market. leases It's a is that two up years the one is that not in Rite coming we that is mentioned next renewing. lease

We the a to very replacement have big spread rent. on expect

of follow-up then bank from branches, really seen terms we banks. regional And in haven't any

that and still We from they're have drive-throughs, we received some have the getting we're back back demand spaces but giving West while throughout strong banks we're coming that currently rents facilitate drive-throughs those to -- incorporate redesigning Coast. that notice those in, the all space, the some for larger buildings

see actually retenant opportunity spaces. we those to this as So an

Stuart Tanz

Yeah.

Rich, think, situation, In lease I one Chase during branch. a of had in released fact, quarter, Bank the we America a actually new on

our we've we've Rite terms seen prototypes, drive-thrus. pads bit obviously, newer are means although number mentioned of in a which a seen on activity think leasing. So the side they're on we've also of of And other Aids as Aid, new fallout, some then Rite before, with I mean, I

a top of of are of sales. And in the in terms sales, three in number Rite terms Aids our

XX capturing Rite of play comfortable getting sort where Aid of feel out upside this So in portfolio we've today last of to go certainly away. seen quite Aid. stands terms nice and of dealing Rite with years the before we in terms And our where some over

Wes Golladay

Fantastic. then, low And guess quarter, I a this on was abnormally question, modeling going looks anything special other revenue quick there? like

Richard Schoebel

higher, related where existing initiative, a early lot year, tenant. was other recapture an replaced to primarily it income was we last the lease an Actually,

it So outlier. actually the last was of kind that year was was

Wes Golladay

time is appreciate that me. the I for think I And fantastic. it Okay, guys.

Stuart Tanz

you. thank Great,

Operator

one Again, question. moment for next you. our Thank

Our Mueller next question Michael from come JPMorgan. of will

open. is line Your

Stuart Tanz

Good morning.

Michael Mueller

Hey, good, good talk to you.

what of listing you're You attributes other bucket centers for big thinking that mentioned about centers earlier curious sale. in the your And of that there's those? that of some how are about, some just is, comments and

Stuart Tanz

have market have, that anchored, other And that actually execute do actually on Well, yesterday it's Sure. well. the an think as LOI we center in non-grocery the I that's only may we actually came have we we on.

that So of I $XX million or don't $XX million another, us know, gives proceeds. potentially

the the on market other looking we of in little well. couple internal a at like of assets growth, assets, outside those on selling market leased two we're currently that as But stabilized Portland have the one very are putting fully

bucket pricing does than four depending depending so the probably on and more on And market six conditions, anything answer question to is your centers, else.

Michael Mueller

Got to know two it. exclusive And about? that's four we that the of six

Stuart Tanz

And as exclude densification That's that does well. correct. the

hoping better gets provide $XX proceeds. of selling ready million and market to assets, a both called I'm the to on So $XX those multifamily could that's bit go that million another which of we're

Michael Mueller

Got it.

thank Okay, you.

Stuart Tanz

you. Thank

Operator

question. one next Thank you. Again, for moment, our please

with Tsai Our next from will question Jefferies. Linda come

Your line is open.

Stuart Tanz

Good morning, Linda.

Linda Tsai

Good morning.

where In terms of end, the today? year price that at would $XXX million bond

Richard Schoebel

probably would in mid XXX. be a at it range, to about the assuming X% or Today, low XXX tenure

Linda Tsai

And does benefit more shopping thru cap how the then you. rate in centers? your of one the Thank drive much

Richard Schoebel

terms of the process, -- by drive to not cap I throughs drive paths? our helps The think but any In meaningful it's rate going would difference. certainly it certainly certainly

leasing the in I terms from to property and leasing rent. as look of throughs we disposition in overall or perspective, think, are drive of and more increase at the an But related and acquisition NOI. incremental you it get part

Linda Tsai

exposure, then, your and Albertsons been has further communication Kroger And X%, that. for of there terms overlap? Thanks of potential in

Stuart Tanz

of consolidation in just And just continue not process. it's the usual, to conduct renewing the business as with and We're process too regularly plans the including to both early at communicate and terms FTC government liberty in of yet in leases. Kroger discuss their we While and Albertsons the terms and.

Linda Tsai

assets? XX potentially are they buyers And for just focused SpinCo your how inheriting centers, terms in then of maybe on potential

Stuart Tanz

deals that's up have one the that a come discussions. in from I Safeway, to and you all The Albertsons truth of at tell on had market perspective. hasn't or think terms two or the either the impact much don't pricing It

at day, of of on there's Safeway the really, Because the it you're real impact it hasn't aspects Kroger I end importantly, of around perspective. and at really more the not very a the estate as anchor ground looking it attributes and sales this. what But there's tenants. you're the the had -- really pricing economic noise a to buying of relates or the obviously, little from lot So mean

Linda Tsai

Thank you.

Operator

next Instructions] Rojas Thank Street. you. Schmidt Green [Operator Paulina Our from will come of question

open. is line Your

Stuart Tanz

morning. Good

Paulina Rojas Schmidt

Good about is morning. costs. My question occupancy

all evolved? you you your for the how wonder, tenants? relative if I that say has So small about would costs it we usually And at shop how track think even to Or anchors. does that loosely, do for compare occupancy you metric And do past?

Stuart Tanz

you to? do Rich, want Sure,

Richard Schoebel

occupancy of mean, over, I how the rent occupancy we that very possible. because big we we're occupancy overall continue the any getting And, the get But on has pushback on out of on pay to operating we their close sustainable. as as not the keeping can to tenants. stay costs we renewal the perform that the attention focused always from the in much expenses tenants things side low have well, costs. tenants costs, as are control them terms And effect Yeah, the a such

Paulina Rojas Schmidt

Thank then you. question. And one last

for representative portfolio, transactions, the those mentioned have of few being a the view, that do one couple that to you in they your low-Xs. assets you your And a of are similar coast quality west seen being I'm of very to you portfolio? have times but seen strength You constructed your has that have close the and curious,

Richard Schoebel

the NOI about. These that have nature. because of anchored of been Again, been growth in very talk leases. that rents quality, certainly, quality has these have at not in strong, newer there therefore I there. grocery to good terms stabilized tell level assets property pretty brand creating been you But were few centers. assets high, new the are the would transactions And

have and to assets. of most very But that continue closely. of deals few newer So market monitor very again, very the these been obviously, them have traded, stabilized we these

of a view, in not occupied. rates because cap there's they're my growth, the typically XXX% reflect -- So sort internal just of lot

Paulina Rojas Schmidt

Thank you. That's all.

Operator

in to back turn to seeing now I'm Stuart closing the no further like would for conference Tanz questions you. queue. the I remarks. Thank

Stuart Tanz

for of today. thanks us you closing, all joining to In

in appreciate ROIC. interest As we your always,

by can any our If Mike, Rich next our questions, additional website, Also, contact me XX-Q. And directly. you of well as those you ICSC or the who additional have booth. quarterly please convention our month, to supplemental Vegas posted lastly, on for find package which is please stop you attending Las information as are in company's

be booth thanks on We there. day will in have again one hope South the a And great to We specifically you everyone. XXX. see number and Hall level

Operator

This today's for Thank participating. concludes call. conference all you

may And pleasant a disconnect. day. You now have

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