FRT - Earnings call transcript Q2 2021 | Federal Realty Investment Trust

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Operator

Greetings. Welcome to the Federal Realty Investment Trust Second Quarter 2021 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Leah Brady. Thank you.

begin. may You

Leah Brady

you Second Thank us for today Good XXXX for Earnings Realty's Quarter Conference Federal afternoon. joining Call.

the They the Becker; Joining may be me Jeff Melissa take Dawn G.; A at prepared call the that Wood; Don Act Reform meaning available conclusion statements Private Solis. your forward-looking and of questions on the this Securities Berkes; certain to call Wendy matters be are on will of deemed to be Litigation within remarks. our XXXX. Dan reminder Seher; discussed of

well statements statements events annualized Forward-looking any or include including results, to projected anticipated information or as as expected guidance. referring or

tonight, risk with issued provide call discussion [Operator results And filed in-depth operations. and and Realty turn XX-K I'll Wood on affect give more a disclosure of may be release differ its Form statements that believes in of other attained. in reflected materially are from Federal of the earnings on financial reporting second reasonable over discussion quarter that such forward-looking financial can our to our condition documents may our Instructions] package based our that expectations begin we information statements, and and forward-looking these Annual can The operations that supplemental we actual the Although assumptions our no Don performance to that, expectations factors future our Report the that assurance results. and Realty's Don?

Don Wood

choice. baby," Well, real of we're it me To Seinfeld's seems the thank quote Frank Costanza, you, Leah, and "We're back good and everybody. afternoon, estate to

killed in $X.XX. of second where volume, than raised quarter company our to the XXth and the these quarter We second on by cut for again We the cash retail our here midpoint. and guidance, X% XX% done the points. total the We the guidance, just record guidance ever at XXXX in raised dividend raised our consecutive summarize way, only me a more at midpoint. year leasing basis we've We we by history. at are 'XX any Let 'XX covered XX-year chase in it by estate get quarter in real year. to X our the it in over had We the

last So basis expectations. three, thought. of the we'll than put more exceeded way internal we're optimistic in quarter, as unpaid $X.XX than anticipate of far a about from fewer but our we forecast higher second for bounce second by At more periods we of the in and continued $X.XX than strong, executed impact we talked our that meat we up about year's business others, here company demand since, a of In didn't failures of than in operating optimistic that course, share, points meant we be the thought; rent we traffic feeling on we where said, the had the we the deals prior intended. pent-up so it that one, on call from we're of less share and of pun and anticipate last we significantly of leasing had we didn't onetime XXXX, the percentage form financial the is most week COVID-modified over bone and consumer each has XX% position. covered so some quarterly this nearly all and And first second were demand, nutshell, we: on thought; quickly. deals sit our facets quarter, those had a so of no We in ahead our that's The the and two, worst and in ever four, to that to we strong as tenant the August we and market the in quarter be even collected an back unabated rent I on rent quarter. our fast we COVID-impacted was great quarter working thought; dividend cash

Of course, raise well. XXXX means guidance all significantly as that XXXX that earnings guidance earnings we'll raise and

of Dan strong and all because earnings And guidance As visibility you estate past to for present, we've done value few into said collection minutes. in the were of the part, story along, future. means dollars, the the ironically rent the of better XXXX. and case, of through while proven leasing quarter's 'XX amount be big earnings large in That the details what both was as toward than it were, was that they a real is has as unprecedented talk and this real here our will

average more Our X% any demand than more the at feet across We more in in X another noncomparable properties XXX quarter, quarter developments we've the feet $XX.XX done in foot. quarter deals board. alone, pre-COVID rent are per our than $XX.XX XX-year ever of rent XXX,XXX mostly quarterly average of in That's an the comparable new We our of deals replaced. did deals, foot, than history for square per square in leased space XX% they at average. XXX,XXX rent X signed an our in

did almost that You last as X. we much quarter might remember

first teams, half leasing, XXXX both support of cost. just than put our average $XX annual unprecedented square here. of the and iceberg X X-plus our rent the the next bumps feet in rent staggering leases, at legal, here more a nearly previous you tip of That's over the through growing production X% the foot, an million years. X.X quarters really the kudos the when is Big to together, our So

XX% all of and Well, roughly flipped, do X interesting and renew between actually post-COVID hovers deals renewals breakdown period deals really with new X/X tenants. we is X tenants. renewals that new XX% consideration Another new not any X/X Traditionally, It's in in to around deals tenants and leasing X/X tenants. of the months. nearly these the

first, lost than a a we capital in tenant, more space that higher. So what a it the heck an important? does is tenant our lot existing means renew costs is tenant of since And COVID. tenants that rather new during that mean? And current of to Well, why it put

in talked locations. the it, seems serve than Because of all are picker sales a dominant, doing On last higher several and of our consider but post-COVID means plans better smattering got with focused million you years like it asset dig revitalized restaurants space always are more on years about in placemaking XX.X% tenants feet they real tomorrow. value Places will are shopping on capital than up, occupied. bad at market's a The relevant better we business new result appear to merchandise quarters, our myriad shopping improved XXXX. over representing capital, ways that were couple the roughly of or than more pickup, significantly spread, their post-COVID more Major walkways post-COVID in with of a properties relevant Also, I and that the that quarter on and in the of going of be the high-quality portfolio about basis mixed-use estate only outlay through world. also you choose the nearly and yet covered they that it we've since $XX most That our is fresh, that centers more post-COVID prospects for deeper. and centers properties before. to demand that our improve spread When XXX,XXX COVID. and today's broad is we've XX.X% tenants rent, face net seating, first-tier what XXX well-capitalized leased, more the centers. the that been a execution think before largest communities productivity terms ever suburban retailers real estate, news, to end, was had in point property come. in value that to in than is square relevant of outdoor higher trying mean curbside We've to of high from improvement

tenant well levels. occurs future, how turned which fallout And years You XXXX bodes ago, XX%. historical X at by way, might XXXX remember were obviously the assuming and just for inevitable we out, the

you COVID. in A of including very at our virtually than quarter that investor opportunity June pricing what contract on in under release that in Center Greater stream, income that in Greater in believe in Colonade we a closed meetings that laid Grossmont we in San that put Overall, these made now. hope in deals Shopping XX-acre Diego, hope Virginia. we we McLean, all -- of years redevelopment negotiated parcel the combined of saw locations the we of this quarter. NAREIT to close exceed feet in markets, acquisition press X acres since that less in depth, and $XXX Grossmont from another out would X deal land I Center entire value perspective we have XXX the June Hilton NAREIT on the quarter. we out Separately, Village the that announcement potential X.X far the strongly on Onward. currently middle during Shopping X tenant unique square have and Camelback focused we today and and the million on these asset Chesterbrook control in from acquisitions investor we in Okay. an a major the million ahead interest for prime presentation Gross Phoenix XX%

a side, into for of these XXX office things with County, & picking to On Pike go-to the and activity also coasts. office Phase place see doing Maryland, under residential quickly and a It's maturing, up days, LOIs. Rose XX% our its In own region. on is not building, development of office really is X the XX% becoming another leased leasing executed gratifying lots in both county that's Rose, the Montgomery lot leasing coming

XX% environment received in our began stronger initial each at part mostly getting currently and that in to that at XXX expectations. there. residential at in building that strong for with That's units starts committed leased is this XXX-unit Marcella, Big be development. moving up Phase passes. point retail with X are quarter in Row, units portion half at and the So rates our rent we've underwriting office July week certificate now pro of seemed the nearly pace the XXXX leasing rents exceeding our that's Assembly line forma. occupancy the and of and already of lease-up the with Tenants approximate in,

started mixed-use for XXX,XXX negotiations square leasing in yet COVID of the that year old mostly we're most to like the and our and the forward way portion remaining all the Coconut begin hosting Grove second also Tenant the moving the remains to CocoWalk office first nonetheless. an it's this up will is longest tenants the That's Jose it the got investor in for Puma-anchored ahead getting on Nothing because as hurt Darien, too. others. residential in side Assembly shopping but important the feels space. now and on on the back, leased next of center early built sign and Office At serious with leasing to look spec that. In there, large bounce of We San leased being. makes retail in fast fully the month. Row took underway newly on during the our for happening is come on up portfolio our Connecticut, component picking the quarter remainder open building building during with on More opening foot in a Similar as time forward the good remainder schedule. the through project Goods Miami, for project. as time demolition and over over in lease completion budget construction retail a the a continue tangible its of side. nearing year. office of are to with situation and of openings tour construction about a the under recovering but time Walgreens

be it there. questions to pause entertain That's the happy that. only about your and Dan, turn I'll comments. we'll Let over me after to prepared stop. half of

Dan Guglielmone

strong above unexpectedly comparison, year-over-year in XX% results but and over not Don, way you, XXXX's $X.XX first quarter the X percent sequential per gain and share than a only blew consensus. good XX-plus of afternoon, The forecast our Thank was and everyone. quarter, more

from to that the categories for one-timers of outlined. let of color $X.XX little some with outperformance the big was were $X.XX collection-related totaled Don improved of time Given driven by a guidance. items. was beat above me beat outperformance the around quarter, $X.XX forecast, versus previous that operations, broad $X.XX upside our collectively which our take quarterly to put for

million quarter, the in $X.XX points $X collection period of rent almost forecast. net upside $X the collection XXX million Rent ahead on our collection. expectations. detail some was First, from of percentage for of versus rent, basis Prior was

the strength for percentage the $X across portfolio. million above Our consumer almost the rent highlighting traffic quarter in forecast, was

by of improved Second, was leasing hotel, basis staying operational essentially expected. And revenues better $X.XX points the roughly outperformance XX which exceeded flat, to our parking all had was than forecast. specialty and driven XXX occupancy we

other dilutive The third later for mentioned, amongst the and miscellaneous And but term XXX the that of be of the units collectively expectations. we bankruptcy to $X.XX of results the items, to forecast we reversals Row, residential Even not do will we over the other in of Assembly above be $X.XX delivering that get fees, year. our be category as of when of the recurring. few were at items reserve note address Don next balance payments Please rate are midst are run loan quarters, to the $X.XX not we'll attributable exceeding onetime expected which payments, guidance. all to expect

take revisit Let's and time collections. some

Our agreements about $XX of net have $XX.X collectibility had $XX the strength and million remaining set at reported the are just repayments of deferral million rent, X%. XX% agreements date, million deferral scheduled collections, representing deferral to to With unresolved Rent impact repaid, The the been of period million collection $XX the payments. call. XX% abatements. cut from be we on quarter and X% of of billed was Of paid XX% a first years. versus Elections from in half our in surged roughly the our the now cash XX% quarter for more signal. prior quarter, back few over of to quarter as first to tenants first level up the the in the or substantially strong very the $X.X improved than X% stands next to current basis in quarter, XX% rent abatements negotiated for totaling million on

expected never the occupancy, that tenants quarter as our during continued we really For resilient. pressure second materialized the remain

acceleration hit XXX evidence recovery. strong spread grown for big during rebounded and COVID, between leased a climb within With portfolio, and way point metrics leased steadily the growth basis negative. higher has demand assets, small Comparable XX%, to hardest a basis the from occupied leasing it's Other the tenant and is up no occupied, across points to movement our occupancy in by or record relevance current whether unprecedented note, a to shop performance segment's this leasing a leased the volumes single with was that sustainable from the respect basis record-breaking XX.X% should strong of occupancy points, our also portfolio. property quarter, of spread XXX this huge for lifestyle-oriented grew environment, signaling And result to by Federal. that in of this and for XXX an in driven metric between in positive economic metric the better of XX.X%, points obviously But the retail driven whose a almost quarter. embedded lack

to move We for $X.XX, a XXXX increased XX% $X.XX guidance guidance. to both over to of $X.XX a to from taking to over XXXX, range and XXXX Now new let up up range prior $X.XX our me of $X.XX $X.XX. of per prior up the of X% XX% we versus year-over-year implies range range from a growth XXXX $X.XX This are to a new $X.XX share. XXXX taking to midpoint. at And

of review the the Let's assumptions improved some behind outlook.

$X.XX rate the share be the per will the of second mentioned, not I as balance XXXX, For year. the a for for results quarter run

at pipeline that very and currently. term bankruptcy-related in nature. have we fees results XQ of in same I note fees As not mentioned, and income will is Term the recur that level, few the $X.XX onetime

period period quarter continue current off higher, collections delivering roughly other to collections half. mentioned second forecasted dilution, modestly the and and the climb the for are remainder residential prior we'll developments per of trail previously the While the year. to consider should from assembly be $X.XX in that Also

level cost expenses G&A increased business doing expect as $X.XX also quarter increased post per COVID. has property We and of of the

we the from quarter. second roughly acquisitions However, of per expect accretion quarter do $X.XX

forecast second guidance of in revised the increase XX%. of year implies the FFO of half 'XX this our for almost an So

by: For pre-COVID to is the seen; full in three, occupancy driven XXXX, due activity development and stronger for Grossmont, to and faster improvements two, we've record improvement a contributions Phoenix; a One, year Chesterbrook contribution pipeline. our the then outlook and a levels; return leasing collection continued from

than contribute other there variants Also will tenant Although reports, like. here government anticipating still a of XXXX. new lastly, numbers. we By and virus rents PPP continue getting to note leasing all in accrual fallout focus and subsidies some away cash benefit to await of record selected West, money we are be Please tangible levels no either FFO level to assumed Federal. with And from COVID to teams for tenants' that will of paramount feels started not at that are longer in guidance operate tenants basis year the us a account. in pragmatism And like note Santana is we on level our profitably. keeping until ability at activity the it there operating as would the fall basis is switching our impact from leasing a these back

move the an leverage. update and on and balance to liquidity sheet Finally, let's

to over $XXX $XXX of continue liquidity million total scheduled debt of $X sold equity over $XXX continue we mortgage to a we heels of opportunistic over the XXXX. to our quarter our and $XXX.XX ATM over next debt for the the at million be undrawn to process then of amounts we development be million and price sales the of will share million through order a about cash revolver. next lastly, an tactical the forward XX acquisitions $XXX We of days, On billion, million blended available billion in deploying With agreement common ample of have on have liquidity on paid $X.X manage maturing no program. and during quarter, comprised $XXX until new And selling year.

million an improvement spend pipeline our billion additional on remaining down $XXX in-process with $X.X across million portfolio. on to product development Our the initiatives is $XX remaining our

the to XQ well. down equity our for our EBITDA $XXX levels Pro rate and debt metrics acquisitions of forward million is significantly leverage our contract, under net stronger to run surge returned X.Xx. our forma in Given to EBITDA, for as

back is liquidity coverage charge fixed $X.X our Our to to billion. pro total forma And binds up X.Xx.

the for remain leverage coverage. and Our charge debt-to-EBITDA mid-Xx for targeted in ratios net above Xx fixed

the Now dividend federal get covering of maintaining of before portfolio, steady, forward-looking declared provide comes of that sound me this return. the our asset real through a resilience part per sector-leading traffic quarter and questions. their Q&A, of with reliable, stable the up with peace let quality share to mention estate for in open total the the wake now income economic investment another the with AFFO, we an dividend the current uninterrupted shareholders increased and challenging And dividend quickly an FRT yesterday, strength our looks line in given decision-making in base, of $X.XX, likely. management, stream our as sheet should balance further from quarterly the This operator, and across mind please cycle of the surge Board that, of

Operator

Our of Instructions] Bank first question Craig America. is of [Operator from Schmidt

CraigSchmidt

just anchors from differently to really place The they're They're the Or side? Most seems did Maybe you small shops; move small XXX it the shops? want tell increase of showing they being drive are peers I in and two, shops. small the you by the small the can in could reasoning the I the your bps on national strong. anchors, reverse. than to push sometimes showing shops. shop faster an you focus listing is guess what small what to is indicative need these and what of

DonWood

Craig. Thanks,

Let's just to Wendy. that turn over

Let's see Wendy what thinks about that.

WendySeher

market, anchors, steady that have we Sense it's deals kind as and from of to make historically. Home Target see that I to we and really yes, those think whether was our Craig, we continue always to demand [REN], new continue which strong,

all excited -- our and shop been is doing demand names that I'm little what expansion have maybe property the more selectively broad-based But small out, levels, about there. the and just pointed terrific. and strength our are locations strong and kinds kind A you Bakery our Board that and is bit very what continue I Coffee really very fact that I'm choosing property like our between neighborhoods as the Blue of that the properties -- and of has leasing what lot and those on retailers your speaks small we estate that in to tenants really a really to So of we're increments best-in-class about about intrigued across it's selecting kind have who who few. side, really of are to program partners areas the or been growth of best-in-class our I'm Ulta, deals of And Simon continue small Bottle do whether Oriana, country really and those Levain of a on, and real Room I'm always of name Athleta, excited the What with are and a Nike strength conservative shop properties Starbucks, really they're types. differentiate Peers on could the for in.

CraigSchmidt

renewed. ratio? Or higher Don a small I XX% you gave it know in new of similar new, even shop? breakout was So Were tenants XX% seeing a the

DonWood

at not you, I would spectacular. the Craig. and been way, We look new tell small expect that commensurate at I'm on have shop it. look and but to side can back it. have I'll sure, I to be either the Well, deals go back go

a just And good a going anchors. know so don't it's be I if that's that's -- number. smaller or bigger going than to big the be to

JeffBerkes

by the definition, in of those remarks, shop and has this bulk and the in prepared lifestyle and properties between are, is but the differentiator, mixed-use group our peer it Yes. exceptionally really is been and saying, Wendy's And to said strong, tenants. a what's -- us small properties pin obviously, a put Craig, Jeff. what leasing of it's the those in just leasing properties the in

teams and been of with our very the just that level have get done of we're in So the portfolio. the of there to quality our portion leasing that able activity deals pleased

CraigSchmidt

shops. I Okay. lift see mean the small I was in really to surprised

Operator

next question Mike from of is JPMorgan. Our Mueller

MikeMueller

be know, I still cash just how quite hand. what's, obviously I of thinking of you you're seems for $XXX pre-COVID improved about we million hand. the drop have Should a off with should mean we something in of that mean like cash on question cash? like? have bit. longer environment I current a running I about the to Or -- terms quick on anticipate on a something things like don't It term? expect more to running do normalized level more over elevated with

DonWood

good It's COVID we a question, of run Mike. levels higher Look, cash. through with

we of I the above still of to with. expect expect to we're think that cash run stabilized level and need kind

time, million maybe expectation my maybe $XX it's kind was think of more the run kind million that that what which of is cash million, And on I of plus/minus. over hand, used down. versus $XXX in to $XXX we'll run, we

MikeMueller

you what said were X before consider And assumed. be you talking was of clarification. what total What onetimers just the onetimers When of you quarter, the to amount quarter? in about the you it. would in $X.XX Got upside the the above

DonWood

million Roughly about $X onetimer.

DanGuglielmone

$X.XX.

DonWood

to of came quarter, going line, expect through Splunk obviously, that in we a that. the were we and [Indiscernible], activity expect surprised $X.XX but of forward. $X.XX, that We lot sorry. than we and don't the the straight I of our expect the fee term onetimers other recur did quarter we repayment worth of something obviously forecasted by -- in had Or misspoke. lower the the did

Operator

next McConnell Citigroup. from is Our question of Katy

KatyMcConnell

ground-up you to pursuing Or start thinking opposed if of fundamental you're development comment based how acquisitions? more your about how outlook, new on differential near additional current there? even phases you're in wondering I'm yield opportunity the thinking could as the to term? just on, potentially sites And the about

DonWood

Rows. a for our look question, that I'm you been the possible. property and and over you've like those here Rose, another When conversations we're right? in office in building depends, happy because not And the the really, I few weeks, are it building front if been meetings love example, is a place start in with XXX sure we're center. really & be if It's past to the spying you're demand there -- at look, senior executive Pike That's this the enough in, building in leasing. the done standing first time? Could effectively Katy.

enough all a window. do you thought to that, And tenant acquisitions. about I the if It's know, the changed year? these looking on that have no, that a don't That's attractive anchor I little projects. difference early talking Could you the there ones really think a we the said toward where existing now. ground-up that big process next stuff We we're we recovery. of Do and development, jumped And in pointed bit go acquisition we in is we that big that. it? I trade-off, that look start the at when think each to at COVID, in that was versus a kind I we we have. brand-new So of will, find plenty was still you through want frankly window through don't. during

that how and to that out. it's us, we adjusting based But So about turning X other not the off, plays have what [stick] on on find. about it's with see we'll it is one

So I acquisition we announce have certainly any be development hope it helpful that's where terms And we'll obviously, going in forward. announce, either on deal the to or we'll side. a of time the

KatyMcConnell

share far other the you've I Any the can pipeline that? what's comments as movement And the in closed pricing beyond X you acquisition you've last you had as now. you X? as seen Or as since pipeline what in know additional of mentioned far as

DonWood

No, this not at time, Katy.

Operator

Sakwa from of ISI. Evercore question Steve next Our is

SteveSakwa

between occupied. occupancy average XXXX quickly your can if or spread wide an implicit about that year-end the occupancy or And could perhaps about you talked for is guidance you what either I'm talk Don, lease by how wondering: the in Dan A, a close? the just XXXX? maybe and

DonWood

it Sure, small leasing all on I'll quicker done, the And you to effectively you has Steve. shop goes anchors. the back to second take Dan, take the the and -- point, piece But it the little the been if Craig's and that of lot the when grade. shop. see a bit a tends can than happen small first numbers we've stuff

should help us a be later starting longer and XXXX. that stuff So anchors The to have a in XXXX tail. lot

benefit should far they a there, there. faster. more out do that in deals focused few as small toward 'XX you 'XX or go more are coming so towards those and But even weighted And more as shop -- see

and renewals plans lot stuff The Now places, is deals property renewals, coming and of now too, redevelopment keep of between, our and in in that's look, income going. difference versus are of new there plans. right the obviously, our kind part new that improvement parcel stream a

a a the really really this. over as portfolio of result years you'll as result, So upgraded see a few next

A -DanGuglielmone

regard XX%. back is And XX% to some we improvement embedded what's the year-end, of year. through XX% points? get roughly XX% guidance to somewhere 'XX. into of above see. that But get continued over the guidance, kind Will of We'll the spread probably XXX of by kind to of basis think, We is, and then end full by the end should probably modest XX% up get there to with I course of above occupied the

SteveSakwa

How a think of about end Is starting by of would a would do 'XX follow-on as sort recovery? of of in NOI -- sort 'XX? obviously are you When a the and kind levels? be Okay. back of your guesstimate the we for number? you Is pain for took When pace about Don. see that pre-COVID maybe think lot just guys to that downturn you And that the snapback. to that you or of

DonWood

But in is about hope there bit something it maybe else to about thought I certainly talked something that a tell at you don't that, lot. let out Steve. to that a would be know what 'XX. little I me It's you throw for we've provoking.

other portfolio you to our leased development all took the in been have you simply the historically, If "All and has income, projects XX% producing all said, cetera, made said, today, this date, Finish we've you company that of capital yet up. and et that been right, that's a right. acquisitions and and certainly capital you not spent portfolio, took

that up back whenever get happens. to this XX%, Let's leased thing

full." tenants with a be development Let's share. We'd $X do over all that

delayed markets be that back trying So sitting out of down back and this asset XXXX smart. certainly putting in back we in types we're obviously, by really in getting it think look, was through and should comes levels. more We've here certainly terms have sitting the that But not We're we're okay seems the focus places been like the goal. the saying, just hit all even -- to getting COVID, we XXXX way here in something that money a of to to are hardly to on notion so.

we and don't I but what I are to we're aiming, know get that's where man, we said, trying just So when hard.

Operator

Our from Goldfarb next question is Alexander Piper Sandler. of

AlexanderGoldfarb

that. knew First, wasn't a of a about being Dividend I congrats even aware Dividend I on King. Aristocrat.

quarter wouldn't quarter, to being outperform no on upward bias straight which that plus you that's think So is you won't your this that about line, in I on you when tenants -- you following it, always number, said, boost, go put talk means guidance for thought reason up it there's the which you're Dividend now further from last a Because meaning do listening 'XX Steve's to a you back be you why those what's that's cash Don, Again, killed asked of to like team within now, done. the King earnings, stay basis an do what it? above beat should people we is assuming what to run you not outperform. quarters. wouldn't a any to to is your you question, about pretty range you've could not Dan And cool. 'XX we and unless out 'XX? Why

And back put You think that good you you covered that you sounds to telling you'd like peak don't upsides there's to and again, beyond your 'XX you're out 'XX. can unless than if something that. you be there to year NOI achieve dividend Steve think full basically it you a earlier don't some thought, just

DonWood

me to How -- way I in I well. last I from for the sit to world, hard right. could I time me that's was Hard here for did have answer and Alex my say, possibly when friend, the time, you last mean do same

AlexanderGoldfarb

Can you Slow that and Don, down. Say say that slower. -- Don. Don, louder

DonWood

And but have And that our we were have whole on was end we I should back lot do time. Alex, that assessing nonetheless. in at as day, which I the were particular of okay? the didn't spot, doing the believe you now thought let's And Alex, believe could I one in believe faster I gotten could things believe use what what getting me, it at doing you So said have better greedy, I Well, best a But again. not markets. you're sandbagging? dude. are right, you do we do dude it I And is that that. time. situation

at and do again? it you clearly numbers. we way now, our you. and happen the a know. best -- the the lay don't But to are we goes probabilities things done situation I before. out we to that's here Delta than to respect when we I say that I you. company. are, to beyond we that thing with I'm in faster we answer to have is same don't hitting where don't see are forecasting out know we So where move we do -- -- were in country, know that kind improving I way what the Maybe I the what can going of lay don't to get for But thought the where are for the look We've what you does. happening, Will got the good situation through. of the forecasting our the sit know we you I

AlexanderGoldfarb

stuff back; that's mean, of each I the like point, [occupants]. who I mean, straight tenants two, is coming in are have a improvement there's the there's experiential three, it that to quarter, in one, there your in bias mean, upward everyone lining a just exceeds. I seems lot you positive;

think I that's I've point answered the is I question, answered it. So you've mean my own but

as are looking other are next to to the as you new what XX% Are little Like said centers? simply from new new color is. your the market? the more relocations -- bit they people to that just So that demand a coming the -- tenants, new those question portfolio of tenants expand? on is, in far Are they

DonWood

are of that that -- very to these And a touched those than supplement new cases. you tenants. new are more. she market do newly talking they're They're when brick-and-mortar stores That's things type it Wendy about our said broad-based. They of They're to Yes. a not capitalized not fair to fair in XXX thing. who selectively trying was frankly, et and that all our The positive businesses cases. et lot volume demand They're real outfits not cetera. their tenants guys. getting online locations cetera. of is of some the kind share are of effective. stores, more tenants We're of well-capitalized picking -- in It's XXX, of lot have a They're XXX

the want the retails you year outside were sit you're most same and plan, you spending million that cleaned can't know blood of a in want here $XX now did of the out center that the to have new a average of tenants And because in is that notion and sales. to The tenants, and million are million nice improvement next over your April because $X or and That's centers, and if you what and that and just for weaker things pre-COVID that May important $XX and a think XXXX. One though place is the on heart. average property old particularly who obviously, by COVID they of June happened to list have through July you earlier. their

in. which said rents can to and broad-based from that they're the about improve demand is It's we pay locations So demand relationship. do, beginning Because largely is you're Why? -- is that it trying the they that the the tenants the estate real that That they're charge. they is all seeing to sales. that it the trying we've improve why

Operator

is Goldsmith Our Michael next from of UBS. question

MichaelGoldsmith

Just what the to that the into you on assumptions to end? you it of get would you that range versus built XXXX are the again, end would to guidance get low have the take guidance, the what the high

DonWood

part, -- collection most surge of it trails numbers, range rent and I in the prior off million, assuming we just period things the pretty a think in $X additional had continued last are For that from, was collections, whether yes, of million it the lot that the how much X prior quarters. we've period talked million over the $X be upward rent we rent of it's $X about steady

respectively. second to from million perspective. be expect some could in about We of There it upside the -- the to to trail half off million, $X $X year and that there

increase. to likely are We

higher end now fees. That's we'll million of We're maybe quarter expecting year. guidance the $X.X with But versus we're that we're We expecting successful up term quarter. $X last it's than all the had, the the towards slightly all are some net million $X.X that, we bump net We that's from extent upside. this million range. -- reason an expecting upper To area of acquisition, outperformance -- the had perspective. the we're in

of the some bottom. top the from So get us pieces that the and that's

MichaelGoldsmith

And helpful. XXXX admirable put out that guidance. That's you really it's

to 'XX and of this 'XX guidance about the current think guidance your prior we the quarter. one, kind As your your between 'XX gap -- shrank

but that by in reflected the are explained, that's of assumptions the think, some I of are what changes other charges, some year in And that? onetime next

DonWood

like recovery. and to this, was faster Michael, add say you're a no, what all I may Well, seeing to basically is going I

So the are of that faster. happening all assumed were things simply

we that stay methodology I'm here. multiple of the and 'XX, that And run That our to use of basically And all We that consistent than a most that the is what we 'XX is what each obviously, assumptions. 'XX better so we rate there that put recovery is. when it rolled rate you had we is a in accrues initially, into it It make single that quarter run in year change inures And forecast. 'XX. saying, update faster with biggest out look also. those kind in at some or that's was from 'XX extent simply to

Operator

Juan question next of is BMO Sanabria from Markets. Capital Our

JuanSanabria

the second hoping 'XX? in sequentially on to time in and I the maybe spreads. spread I demand will despite do quarter spreads just current guess trend strong think based the dip slight schedule, spend a little lease into momentum. how and on There's the through your was you lease expiration a

terms So foot. know of the if that next square mix was per of I and up expirations your in jump don't related kind dollar year

'XX? curious have if on just you spreads may through and those So context into any how evolve

Donald Wood

I'd is say to couple a of what things. you guess I

all, company. of First we're relatively a small

so be a little I said to quarter was a always quarter. there to second significant laughed when bit And quarter, variation. rather in first particular the going there's you in any a decrease

exactly me, that's was think I was To you the X. so one one same, know. X just and

significant happens there other still of quarters, basically up more those deals the rolled In That's mixture X There a things. is and terms company. you in in a The obviously, those will of -- down. those get don't is both deals, do in were X running probability that were what of that any of where rolled were were in what quarters. most way. kind There mix again, that -- we that in effectively That's numbers in pushing of single-digit most definitely, and a And period. definitely rents any which can bigger in stay highest. particular we're quarter, depends the comfortable it on seeing

type you've kind and again, for trying thing of If of consistency. a do over in over to value a great commodity with are company deals to of we that's product here. bigger the But a more bring got more same much

Juan Sanabria

Great.

but spreads, I rate lease been was focused Sorry, should new point have more I clear. taken. on the

Donald Wood

to Just understand.

Juan Sanabria

maybe be you Got potential on point new funding be that further this the about at conversely could provide point? thinking really for dispositions? of with any what could thought funding source as Sunbelt about just to Or a Texas equity and just then not terms it's or that's into in it. match markets, more used whether the or the calling color expanding you're or potentially side, acquisition how And about focal

Donald Wood

want that you to start? take do J.B., Hey, to

Jeffrey Berkes

and -- we quarters are in prior sure. mean, I this I NAREIT. talked think in we've about Yes, and

as go have really I that ponds We of number well anything we looking the think, about. some are at right as talk When it, put in. do, new we to We now. different you Phoenix, can to markets looking And don't fish at us into and we we we're will. saw other markets and expand,

up happy got really get done Don think said we did deals quite The the a got we're earlier, market we them done. we I has when tightened bit. done, that

of and that the us conservative we keep get a look do done. asset causes an up at we deal we'll time always So or think on not deal, that NOI will the that will, and rest now. a allow its of and Every a -- basis, right regard level but deals portfolio when basis existing disposing lot to X cash doesn't terms about talk to property do always, the that in acquisitions a in with do we as tax careful a us growth. those that cash of to to have And really and dispositions we portfolio neutral make on hopefully some about be maybe

Donald Wood

that and And how sell an let market investment us With we'll at regards it, we'll extent sales advantage we assets look are, opportunity to to to some funding, We'll balanced as we're do and you it. it. when offers of in very take opportunistic the know attractive pricing. at we always really the

Operator

is of question Johnston Bank. next Our Deutsche Derek from

Derek Johnston

any tenant delivering. reengaged? And traction are color from do for And potential away with a Or Has for traction is seeing also leased believe or that pandemic. has PUMA. How West? office materialized, it fully still your But I perhaps prior interest also I the that other was that especially anchors an at LOI to almost thanks the seeing you're Santana you like them bit there? and Santana HQ know the on

Donald Wood

buddy. all is one this Jeff, yours,

Jeffrey Berkes

the with and that no, to leasing in them picked has pandemic. here part don't not question have materialized, they come definitely started the XX, Activity Silicon in out perspective out Tours the again. of XX, XXX days. the starting up office Valley, have last now of directly, we close we're expect we Well, were pre-pandemic, to to tenant that answer the last your potential

What's conducting have feet, large are You probably did that are tours a sign for is deal tours, few market. all it tell won't about. requirements right for of again, One relates Santana you days we new and other don't in and we're about that's several and heard anything coming Santana now, square very, talk that little to amenitized. West Valley weeks there's have Silicon to that ago we is West really great One up can quite the There users bit. including a picked I XXX,XXX until supply Apple But activities in and a about which as happy great the what will. particularly weeks. supply We And very

that a about ways. us There's the good we're building So that against makes lot prospects now. competing our right for getting not feel

Derek Johnston

me asset. No, And work it seems a like with great here.

don't So this. who be a to this So have a ton I mean, all seem of assets demand, leasing all post-pandemic right? retail could of environment, generating strong in I fully know high-quality seen

solid spreads So highest okay, ABRs. Federal, strong the and leasing,

really, going dynamics or Like for let minute, want share talking what's what you're here, Because Don? can I to me. Now seeing? another would and on just listen stop you shifts if you that

Donald Wood

the Derek, me I a retailer feel through Wendy, look, for And be you're minute that. before were minute, let X country was Yes, if think be or is just wants for over happening. months. happening, least go free happened mean, at please restaurant a you frankly, what what And what that a this for I the have there X years and the is -- X, just last a that to pressures that. on in and add XX gone through anybody

a you effectively, a had where now, are And than in of competition in what's that's in position recapitalize, many you reset. level cases, before. you here with many cases, so And you're different can happening. And

Pike I it’d -- Pike consumer you, parts in for you shopping we X have the I have of there centers Rockville that or mean, X tenants chance of that Pipe if been X the different Rockville that the think sit aim tell a been man, on got over you've If not is all not on if own, trying for the for here. the been Pipe time, There for an months. on Rockville We've and except that centers. XX% to of XX right for of has in that get last years type the much, been years leased all, opportunity

instead? why openly to major improving a estate to new seems investing landlord those the and effectively, a Where detail. those including in end with with So about and higher got there? shop shopping for would is real there's tenants go choice pretty cities, improve was very, a sheet, post-COVID affluent of before estate profit Wendy be an and seems landlord It's anxiously the especially well-located, there very a sales, balance centers there. lot and day, who a small at real a more you've Because side-by-side to go it's for would rent. to smart of you you're -- that about with tenants, choose you a to suburb margins, first-tier choose opportunity Schmidt the through in to and environment, not not of went your And better that's the Craig that customer in referring better a you, in

a to got investment why to They've important be happening the we I partners So That's be landlord. the properties, that in see helpful. at what markets retailer. properties the in. investments in, hope that's we're so that we're to That's post-COVID with are the in their

Wendy Seher

should of our strengthen to thing, side summed to only how we I in post-COVID assets it in add opportunity And that thinking. Don, so properties. of that flip the who's gives up that equal we're make The well are now meet going forward as -- relevant, the you world -- how more and who's our our is well would with of is the on thinking thinking, terms retailers think us how to merchandising investments that who what and capitalized,

sides. it's So to a benefit really both

Operator

Capital is Securities. Our of next question from Chris One Lucas

Chris Lucas

appreciate this kind but as you're interest this forward. you conversations made of about the the Don of the comments question, I expressing this years, your are -- they want of in curious about I have was but are demand of tenants -- centers, the pulled and seeing to in your demand next to you've sustainability those being follows out having kinds tenants? up not just But Derek's thinking with you with future on year, sort shopping year deals, the the

Donald Wood

we're I average mean, is good a you'll you term there's volume as man, what...? look, one with thing Chris, of still notice the question, doing, that That's because,

Jeffrey Berkes

X.X years.

Donald Wood

a which effectively think to kind And trying is what you us. used get that do next decade. year from years, of -- about more what is to I see to plant to X.X the flags you're trying they're them than

to it Now XX% et gets harder certainly, as harder and to to from goes XX%, portfolio and leased able that. harder be to do cetera, a XX%

especially industry available it's that's the -- supply why that's rising So is a in the tide it's lot everything respects, And in else, respects, great when and of a in them. some because of boats constrained to had by to all advantage for are kind not everything spot. you like find those tenants trying also at of the time when lifts that to they got have that's a this, best years. But an take opportunity

add seeing. So kind that's know, what of I or... Wendy, you don't that anything to I'm want to if

Wendy Seher

you're -- don't I add I when know very can I is is thinking. look I thing at But only robust. pipeline, when it still long think the the I how

done -- it's that a just quarter see we're don't I So lot and when first we've and second robust.

it's I'm -- right confident. So now,

Chris Lucas

Yes.

talked how openings, to openings, that and But tenant was have their considerably. that comment 'XX thinking 'XX really brokers conversations my had really of clients I 'XX activity really about with about relates and anecdotal about not volume think it. thinking who but and I've thinking is about 'XX I ramped rep their has

Donald Wood

before end asked the Chris, mean the I the to difference guidance. this I time. Yes. between stuff low thinking and is when was happens Look, it. mean, takes of somebody I the the question, what high that but

are things control. didn't totally to slower once, than leasing? in Are able faster One open our that's get that or say all assumed of this not assumed? to we tenants the going than be we with And

different As of cetera. their that cities with timetable, there's plans retailers permits, have et

of in time. that lot process, takes lag And end between signing lease the rent end of getting our thing the In process. is signing a the So to the it ways, is the lease complex -- business, started of a not that some or a a do. is obviously,

part hearing for time true that's those up the able what tenants to space lock from of lead you're So to a is be also post-COVID environment.

Chris Lucas

that? million to by Dan, And down as side. curious any I'm moving that Great. it, them on $XX cash follow went looks of towards your million. And abatements just driven that fallout? by tenant that quarter-to-quarter. it up, Just those ABR was $XX are million basis, give is the then move collection driven were to that like alongside to to legacy rent? new also Or -- whether thought leases I $X just driven paying on up by then, idea call deals? me wanted kind cash? Or sequentially is under The from Is predominantly

Donald Wood

I'm going Chris, to it ask at time. question, one you to repeat and do a the

Chris Lucas

Okay.

Dan. Sorry about that,

abatements, to So of abatements $X tenants you it went this so Was the related primarily away? of tenant to on the to sort fallout? going million was million. paying drop from new most related $XX rent, moving to Or

Donald Wood

paying us rent. towards Moving

Chris Lucas

to of ABR And under then was from the that's quarter considerably ABR the related The volume the Okay. leases the second percentage commercial quarter. cash basis second question under is of but basis. first to remain cash your same quarter-to-quarter, up the

under million on cash gross generated it $XX basis. delta about ABR that's So a

whether increase whether legacy deals of new that leases some to wanted predominantly cash were understand signed And had to in so I on ABR basis. that under or contributed based that there that you sort was

Donald Wood

acquisitions. acquired skew to or $XXX distortion million the That data feet. we X.XX Obviously, that's was worth $XXX assets some of square by million driven million had going of that Obviously, the there.

Operator

question Our is McGinniss of from Scotiabank. Greg next

Greg McGinniss

well? Rose Can you between investment development, that that's space color you pursue and and space request construction in on lab traditional developments as locations whether provide on I some may other near how and an type office R&D Don, or costs believe to & lab add Pike yields I asset major potential saw entitlement So potentially there. compare

Donald Wood

doing seeing first trying to Greg, I around and love stuff of sure uncover real here. estate what's on going we're -- What that at that guys. all, you're we make that is we're looking

at to that by the places So and where an certainly, expands that's we're look Montgomery & highest the here and And think use you at the trying and County, for estate certainly Rose you when Maryland, to real best places. at and up life other Assembly about base Row sciences uncover locations. here, value Assembly to these of Row. the amenity luck same a value it's and with office applies And way, the tenants expands, bit that little business type important that's tenants the in other Pike

that we & questions early your terms in it's there. there not. use assumptions and this Pike XX exploratory answer at to Assembly the but nothing specific we're it, certainly Row. of phase early whether that it make I've phase, be Now anywhere economics point potentially are at we similarly Rose, exploratory we're used in entitlements are in other say We're being able more does to the this at near on than in for could No, -- viable, about believe this on because got acres any the that sense?

is because I -- be yet. economics could not what we're fruition talk business, Row business to it because and ready Assembly in am neither terms really closer and Boston closer is Cambridge Somerville, than we to got the is about an to sure of here. you So that case, even that But in

Greg McGinniss

you're of seeing geography, fair. And centers And a demand. lifestyle noteworthy having that the well. would level trends there's the bit any among if appreciated asset Could color a that be by other demand types? also you tenant resurgence you type That's of also mentioned in Okay. and discuss are then as

Donald Wood

power had centers period about just weather it. strong it coming do really does resurgence. time, because don't -- lot it but I on I quarter, about wouldn't regional or I do all that -- so back that, -- it. or it depend can't centers grocery-anchored it I necessarily, does, but it No. centers between really were the geography. they and even January the There like second question in locked say in quarter, down is were no that markets which But -- coming operating thing in still we I with wouldn't good only terms this really talking building we The is to of would we in February, that second and up feel and that of their say to do a was during had in of only them, were

an And it. it continued. has and off like that's little It's you gave -- felt of D.C., that little Boston weeks demand. about the restrictions it When cap, think weather pent-up it. so those That's Delta -- was as few opportunity, Washington, a bit variant which felt behind tangent, on weeks was I'm et but a We're New off, behind I'll came itself country. -- that as the markets cetera. holy So going a know do and a as in going we big few was disadvantage interesting. is to a me bit talking you a are changed they these like there the a York, otherwise. where where respect the is vaccine XXXX, open-air we're There's stigma all we the been things. don't mask what's happen which are fantastic. in format know. among in where down has important, with rates The and They is at, markets do accepted. wearing highest the Obviously, closed to are the this also markets, to not But And it few

just centers lot we fine and they're masks like because see people notion, comfortable the our shopping of wearing So shopping they're with our that. a at properties, but

the know country it's that both going because how but really rates I Coast, term that of to I play and the in think the I important the out, vaccine among in. don't long an highest these So for fact that's are markets, mess we're West thing East this do the in like

Greg McGinniss

mentioned and level because just And about tenant versus sustainable follow-up of might demand. are guidance. I'm and guys how on more continued How demand? Okay. that And a pent-up leasing demand this you pent-up much curious be thinking quick you activity of

Donald Wood

future level it. it certainly yet. Yes. is deals doubt times the hard that it's working or been elevated full. the quarter? levels ability levels as of for of maintain Wendy on see the do is asses real. they've some. I with be the of robust to Twist, couple said There's to I on as foreseeable second We've But half Will quarter first historical as nonetheless, pipeline off. got think based mean has plus But people that a to bunch their activity, I a the here,

Operator

Point. Our Van question Floris is next from of Dijkum Compass

Floris Van Dijkum

for here everyone. I know long it's evening a

Just said that not of ABR. pipeline, points, $XX Is I around correct? million the the sure open understand you basis singed XXX making is

Donald Wood

Correct.

Floris Van Dijkum

of X% your POI? about it's So

Donald Wood

Of rent. total

Floris Van Dijkum

Total rents, yes.

POI, X% about figure? that of is So your ballpark

Donald Wood

That's right. Yes.

Floris Van Dijkum

Yes. Yes.

in you've solid So your lot NOI quarter. but forward already look, number, like a it of it's pickup looks pulled a this past

X% another got you So to go.

I Just from hope current pickup to XXX making back that sure, you've said also the think point indicated, XX%, levels. X% XX% occupancy, or you suggests to basis you another Don, get

is So X% impact potential that forward? NOI another going

Donald Wood

at a talking course, a earlier, Yes, with for end in $X over share the we've place. the XX% development mean the is capital performing, fully as day, this and you're about said that spent filled be, would portfolio, know when I I earnings and the Floris. I lease of the of don't that

you. bet you yes, So

we I Now the at can way when to it leased But day get sure happening to sense up obviously. makes the give as ask development occupancy. not looking on to yes, it. you, your me fully or you're we're XX% that's I'm the model

Floris Van Dijkum

So let me ask that. on you the follow-

maybe well. should on at level -- results second, up, more until you little -- ATM behind I stock think, $X.XX capital a a these be comfortable wait bit NAV these up with as still price So obviously, you off should raising that at goes your tapping the would more? NOI Does make Or going my gets you? be your up hold

Donald Wood

that's that's The that day do get in a our the a the be plan do most model. So then and keeps not that idea everybody, a along me. it it ability up to of It investors. may way that it's and spent for to letting you what the going leverage there matches This beautifully of raise answer, is out. way because the money be something balanced know big you can you is bit overnight, doesn't little surprise capital effectively markets

those basically raising, need we dividend I what assets. we you toward need so get steady, raising, approach appreciate equity when that think of you we And who them balanced have the investors, get high-quality more them and debt payment,

Operator

question next is Jefferies. Linda Our of Tsai from

Linda Tsai

question. X had just I

of that your plan the the when payback terms is that? have And a of ABR XXXX, finally plans conclude? tenants In what beyond then percentage do

Donald Wood

papers moving Linda, you've the here. around people all place got over around

second. a Just give us

outstanding, with 'XX. the balance the beyond roughly chunk half by back what we it's in that -- have be -- And that, with of should in of balance 'XX, in the year. Beyond the paid another and end 'XX

in about that. then balance looking a half in 'XX of quarter you're and a probably balance the the the So beyond year,

Linda Tsai

kind on of what plan? percentage that is But of your ABR

Donald Wood

that offline. that I don't my can fingertips. We to you at provide have right

Operator

Street. next Paulina Rojas-Schmidt Our is from question of Green

Paulina Rojas-Schmidt

the days. investor do think is the are lifestyle interest There comfort interest months, open-air center -- change has your with you looking clearly lot of at investors a these in of the level how in in And category recent How opinion? centers?

Donald Wood

also look appreciate now of in think that they know X are sit look When company know. flow at look -- the a at and of or But know prospects last through associated types COVID. what is based right we talking popular we about know talk mind become we particular X The during big you X are the we're I that that interested, type assets -- our terms estate. grocery-anchored and the you lifestyle, of properties larger or know is what the don't this when my mixed-use all of seeing that real in that I that or obviously, months very higher I worked years therefore, that I how next estate, during and understanding investors that and and particular of these centers centers. X that we to I at the it. feel, The say, demand or how where X tenants from on with that component those over notion of largely the growth include strong. from growth mean your very investors clear in has when real investors those to is effectively don't you believe office years the I years, out are notion the potential that residential in assets you asset, -- retail very -- lifestyle set this cash by very we really

Paulina Rojas-Schmidt

Yes.

if of you far how Your types. XX% portfolio portfolio, portfolio, your lifestyle But mix could the of comprised of is has property course, pre-COVID by a from your NOI from break up the some centers?

Donald Wood

it, think. XX%, still of It's I XX%

Operator

Our final question of is from Citigroup. Katy McConnell

Michael Bilerman

or I what or happening those know leasing. didn't the marketplace to opportunities? getting is the have or there, company It's here noticed there don't does team better calls and leasing, review is that peer public sort that listen REITs shift happens you margin? all record the the and strong in wanted know share shift not? with Michael share provide to that's and the then quality And market and of I much assets been their pipelines. Bilerman private redevelopment opportunities every real any of centers whether if I this that the the stats, Do are capitalization of that is you your it's -- if on, going and sort I know pretty retail thing occurring and leasing pretty reporting landscape of to in not Katy. all that it's better -- the a shift landlords those just between real, your to whether whether is leasing on are acquisition public Don, become as And at guess all that's a alter has

Donald Wood

is anecdotal with them what I but curbside pickup, more or a that's they're with give many the tenants mean kind ask great is whether ties it to to I I next I it Whether I perspective, by let mean terms place-making they properties it wish that tell what stuff had about a that's anecdotal it. And in another to it, to you merchandising see. who care them whether trying I make with them. set Michael, the Boy, use And up about that making decade than care pickup. evidence in in But a question. in back me landlord figure question. of not, investments. are the I how retailers who out before you And want it's customers be cannot they're saying for means about successful landlords COVID, to effectively to with critical investing attract longer-term next of trying They're them post businesses. a to thing the they with was as curbside and themselves

you're the there's if got I well-capitalized disadvantaged undercapitalized, and and COVID. private of that trying and them at disadvantage from is private and and flow make company, But know center, existing at shopping milk they serious to a a that If then bunch company you're think because what is all, company I are private who I've you distinction cash kind to not you a that that good in the are a undercapitalized post the darn of do.

not. in marketplace, sustainable do a willing And you gap, that the will, marketplace, to real widen will estate better that who's the and or less so between if invested that real estate. who's trend -- invest depending think is upon I the

Michael Bilerman

-- your landlords are you there's better like expire. example on better their that get now shift Do want just know the lease the space tenants think other Pike into Rose but it they to haven't a leases is because they quality example, Pike & available with the on let signing they and

so depressed it's a some marketplace? the eventually uptick to And new more retail are just into the overall macro slight with around a because level coming of given this showing tenant occupancy statistics maybe of moving going start tenants of

Donald Wood

in milk and It's when have leases, for they're an on one. don't either I old a is that the Because move had add market they that. guys? of not you, it Do opinion signing store -- they generally. the to another

-- wind head. significant are don't places don't but down them going or know, deals, sense an period road is leave to closeouts if see will in -- deal -- old Wendy's say I her incentivize I to way. we'll that this at time don't extra I try it to don't makes create no, for in way, least see with the effectively will, something, that early that of not now So you the use it's to it it being up to any and shaking I economic them I leave earlier that

Wendy Seher

just agree. time dealing lease. leaving tenants with. tenants see up of but their the stores years timing, of mean... just quality don't It's I most It's it more It's X more on I needs to the -- left having with that we're their strategic. agree. match I I other and

Donald Wood

Yes.

a Now and was better historically, that if that. open open better store Florida of would better in X store, it landlord, company et good Publix a do the a would Publix was it estate, leave real in -- a dark X go across cetera. street, example was

always exception, or guess. So trend. see mean, there's one-offs, I do that I always I but that a as not There's we see don't

Michael Bilerman

you I it's market Jeff, saying? like unusual Sorry, mean, just such right? through, an to were go

Jeffrey Berkes

kind Yes, part the second question, Michael. answer to of of your

unable at forward. mentality. location those look come in owner's great those put we results, and across leasing are in show We centers us. the the Those we in because one that's the was you second the for strong in where in like leasing. very quarter, done capital acquisitions and in the virtually are going short for capital And term a or will whatever reason, those perfect deals common invest the results immediate got was threads in If and the of acquisitions property owner, perfect, to unwilling shopping the well-located are

causes the happen, screen, radar of our extent will properties the that to for put to yes, on sure. more pandemic that more So

Michael Bilerman

I Well, this not the if next going perfect to pandemic. as I tenant, appreciate color, the even answers Great. the we as know to have of yet we're transition phase

Operator

is next of Fique Wells Securities. Tammi Fargo question Our from

Tammi Fique

Great.

bumps maybe contractual I away given the guess all the to of today? follow-up Sort you from the leasing backing look what signed that, activity an to did to retailers rent if relative new I'm or annual you on quarter, negotiating were to that you due curious pre-COVID? And in what then like seeing stores openings inability as are I'm any wondering a find closing labor leases

Donald Wood

bumps. question, will X% flat the then of deals guess bumps, anchors and X be Tammi, at XX. there. we're of in difference And still part X.X% The don't the question first I your I plenty pre-COVID, what? big guess, doing for you'll to part point of average, up was compared the see still see is then I a And your the deals second on

Tammi Fique

curious any or if those heard away guess, result you're stores that? openings I And there in in -- are labor. smaller some retailers guess of as retailers given challenges curious, seeing some particular, closing a finding backing of I'm from I just I'm we've some

Donald Wood

that, mean, the and there I I businesses see is of about that doing I today. But that that don't other businesses issue, think service you're the service don't when talking see I especially no, a is happening so. that. because question no terms actually not of restaurants don't current like now. in deals and

what's the that figure quarter natural you’ll not has in little Ask And will me that natural course and every on we by -- go. today. labor because that see again out as going bit. that the But with I just, it think no, do it a I think situation to give

Tammi Fique

more. maybe Okay. And then just one

And costs, I'm think first pipeline, impact sit you're or either about X development. as in underway any the opportunities how development higher future the in the curious you projects compelling on you future stabilizations view just construction the As today. we current I what as about shadow in and here reflect on having big guess and most pipeline, our approaching thinking

Donald Wood

costs that Yes. these we in always to the traffic; which and X, can of years adds for we on Well, are do. because what love a component those night sure that residential, the the execution in retail, their terms both best planned terms want in as on weekend do And and do make mix XX things, to we what of XX which of we big we do have good which of and just do to a asset; office, people brings to daytime. years

want bit at this time. projects. able those all point the to still on costs have this be of we stabilized Construction little do in our numbers big all to seem We're time. a So working at to those

think able whether a need make to we're good that's get rents comfortable We general with where are money. to and I sign. do some

full but to And opportunities opportunities provide of be Rose Santana get which other I there do in there's can't to yet. and would love next we'll to over ready think still measure, couple be also Darien years. in potentially CocoWalk we like the income providing existing building you now. Pike I are that I that are once said start a to big being we earlier able be I'm wait see -- or yet you Assembly built the & that Row growth lease, I remarks tell at like that that not number of projects telling the at to that

Operator

the session. I We the have turn Leah to for Brady reached question-and-answer remarks. closing now back over call end of the will

Leah Brady

Thanks, a great everyone, for night. joining us. Have

Operator

This concludes conference. today's

this You your have Thank you may great for participation, time. and disconnect at a evening. lines your

Leah Brady	Investor Relations
Don Wood	President & Chief Executive Officer
Dan Guglielmone	Executive Vice President, Chief Financial Officer & Treasurer
Wendy Seher	Executive Vice President & President-Eastern Region
Jeff Berkes	Executive Vice President & Chief Operating Officer
Dawn Becker	Executive Vice President, General Counsel & Secretary
Melissa Solis	Senior Vice President & Chief Accounting Officer
Derek Johnston	Deutsche Bank
Steve Sakwa	Evercore ISI
Michael Goldsmith	UBS
Tammi Fique	Wells Fargo Securities
Paulina Rojas-Schmidt	Green Street
Linda Tsai	Jefferies
Alexander Goldfarb	Piper Sandler
Katy McConnell	Citi
Michael Bilerman	Citi
Greg McGinniss	Scotiabank
Juan Sanabria	BMO Capital Markets
Craig Schmidt	Bank of America
Haendel St. Juste	Mizuho
Mike Mueller	JP Morgan
Linda Tsai	Jefferies
Floris Van Dijkum	Compass Point
Chris Lucas	Capital One Securities

Federal Realty Investment Trust (FRT) 5 Aug 212021 Q2 Earnings call transcript