Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Federal Realty Investment Trust First Quarter 2023 Earnings Conference Call. [Operator instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Leah Brady. Please go ahead.

Leah Brady

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

on call Melissa me at Wendy be Joining the to the Seher, Jeff Dan available prepared Jan Berkes, conclusion G., of Sweetnam remarks. your and take Solis. our will are They questions Don Wood,

Reform on A within the of the discussed may Act XXXX. deemed this Litigation of reminder that certain to be meaning Private call matters be statements Securities forward-looking

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

can forward-looking The believes disclosure reporting earnings are issued our may results Realty's expectations these [Operator Although expectations condition actual from statements, Federal and our Realty annual attained. that give these be XX-K Instructions] and can provide we of in operations filed on reflected performance Federal of no operations. our this in financial assumptions, assurance factors documents other information discussion a the differ materially afternoon, we forward-looking and release the statements on in-depth that risk Form reasonable may supplemental report financial affect package its based our future and that and more

over I Don? our to that, the discussion Wood will with our turn first to begin And Don results. call of quarter

Donald Wood

year's Strong be last we've ever Thanks, both over result consensus of ahead to the Leah, expectations first XXXX X% best good per afternoon, growth share results, start Also quarter quarter and and quarter. everybody. here FFO posted. happens first with $X.XX and first internal to

exceptional X.X of XX% at in of momentum tenant a encouragingly late at rent million the end signed the the the paying was quarter, We XXX previous with strong feet basis. on foot, part. final cash leases $XX.XX than March. comparable more best year Demand straight-line lease, the than basis for the a their Here's XX% was higher square

that tail lockstep as months for for the haven't what These activity areas. retailers leasing that in major just of expecting by you demand metropolitan levels plainly yet. inevitable in As suburbs portfolio of levels and we and today's is exceed know, tail demand up. we first-ring the months consumers XX%, off these off historical now activity I've retail with been to The leases affluent product seen the offer XX%

Cyber the of quarter three performance of deals, of brands. the new grocery The Star drivers Albertsons and One a deals included Island. not Long renewal replacing and with Baltimore, renewals. deals and larger in that Food implied this leasing The Giant Warehouse, & Barnes I'm four replacing at was Michaels Boston grocer allowed new Aldi was to suburb Market the signing that Shoppers announce Queens on Plaza and yet Noble Meadows Karin Food replacing and Fresh

$X.X a for to Together, productive million in deals first or in base million per turned or rent getting these Northeast four Strong $XX.XX suburbs. point. quarter base the populated foot $XX.XX in the timing all rent done of in rents centers proven The future. them densely and bodes in well rent $X.X growth

and detail ramp more numbers. will in on assumed not Bed average a frankly, one are are There that inevitable our be than Deals is foot, we've With late we provide start should to in once Dan these many bankruptcy that write-off our serving will better being Bed in value and what retailers at of was with portfolio incremental on Bath so not up than shopping more for Bath replacement Federal's should customers. rest get the exactly locations band Bed valuable, The the productive Bath news centers. creating $XX welcome, our our be this rent base XXXX. all will in filing less assured data are can that works rent boxes retained. more

large-format modest a Beyond as basis primary Shopping of store of expected drop expiration was also in point at closed in a throughout January the Philly store the Bed the occupancy lease Center cause closed XX with January, when overshadowed and natural Wynwood Bath in portfolio. expired suburban & lease the a in in many fairly it in Boston, The quarter. the along Tuesday suburban openings morning That elsewhere closure,

tenants small QX Meanwhile, total discerning small points and basis increased on at that XXXX. we choose way continued our occupancy create That's them shop The ton basis our and occupancy properties of value. gains a quality a XXX a where since points. shop in XX of of quarter increase shop is we the

I not [indiscernible] tenancy find shop it's earlier, of I mixed-use as that side most impressive. communities retail grocery All deals And much four the the as is love small the I mentioned big

Taken at & and together, for in with well above and real Pike Row are differentiator Row, XXXX Row, and sales leased occupancy XX% Bathesda company more Rose Santana ever a than levels. Assembly retail demand tenant Federal before,

months. foot markets the with estimation, a are post-COVID foot is and product In beverage totaled in XX sales trailing a most. number of consumers per AI. shoppers $X,XXX. comes million numbers Placer the want traffic excess thirds report in representatives. food two that the excess of are tenants in properties this of big and X, estimated so sales and our world These XX the the Overall $XXX foot total That's database of from sales Roughly of big with the per in

I three that to fair heard of $X.X especially government the retail estate XX,XXX households to made, cash income grow. economy me and flow times many, economic us at for of that within cycles have Federal real many of household to with Past in but average stimulus it of $XXX,XXX especially the before, propped miles annual the spend centers. sit simply repeat know trillion families papers waning. now have pressure to is Demographics you've convinced Realty money have say up it. during times

back other agree same. four-year better. generated a That's $XX.X than income those route-mile within know a portfolio and colleagues billion or no more of family people three-mile retail sized of half in I have radius significantly

Newberg the a of for quarter million, sale. quarter on we where the sold population as one late demos suburban very located in $XX Pennsylvania portfolio the grocery-anchored flow, an candidate transaction latest our with obvious center small in shopping in in With X-mile center the for

More we anchors quarter leases Huntington our the the Noble a XXXX, Barnes in interest you're an had the with a I of was & from tenant Square someday replaced as we store consolidate this the Fort Center in purchased Long with With grocery Trust and this of interest property acquisition anchor at affluent shop North million. just Aldi Long earlier, finding on another fully Island way the grocery-anchored East Shopping And control $XX.X Back fee. interesting the transaction, fee to and hopes Realty creating tenants for Seritage in we now XX-acre Island. parcel portfolio. the in first leasehold mentioned

with With of investment, a valuable and immediate in we've much $X property million million-plus all a annual income on unlevered in our created million teens the more stream incremental low IRR value. an $XX plus $XX arguably

that better at helped significantly might the due by June million quarter's also our gold our You bond or noticed investments. five-year offering oversubscribed $XXX a The million refinanced end, in green X, with was new $XXX we X.XXX%. demand after have with lead bonds coming

XXX next million Next up year. expect of opportunistically of points $XXX the our be due will coming or this market half be we in bonds in to year. would financing at second refinancing the the

it an beyond, of plus already only at the process capital sheet $XXX to income additional source of lease source and not reflected results. a large and to XXXX For in you quarter-end Much and invested, construction in yet need on growth balance look of future identify million of is the

quarterly results Roads the our at III, the quarter, operating of full Assembly stabilized a Pike a latest phases was contribution income was Row in wall, mixed-use property million & of Rose XXX What contributed. cocoa a reflected namely $XX which properties, completed some Phase operating and from

attracting buildout and in as And seems Valley in Santana but property seen finally, the sector far to tours floor-by-floor Tech XX be the our is interest well. XX the is more from activity West certainly days. marketplace life Silicon at settled, inquiries renewed in increased have last to

amenitized fully mixed-use of in on office the to be space We our respective see their continue communities to choice markets. our product

this to Okay. up I'll That's opening remarks before over my Dan prepared to for morning, questions. it about and it your it turn

Daniel Guglielmone

everyone. Don, Thank and hello, you,

to Our [indiscernible] That deserve continue our increase. outpace and first our for last record quarter and was and probably reported X% as Federal percentage again a to strength of share which expectations above rent as a annual resiliency. per our representing performance Specific FFO expectations all business was mentioned, overage continues drivers, demonstrate year's sales $X.XX of broad-based $X.XX results, facets contribute.

level. This expense gains lower collectibility at gains traffic as Parking offset forecast assets Small impact by and both modestly revenues shop mixed-use above forecast. bad to saw higher. debt also and continues large the was property corporate our at or expenses saw occupancy showed again drive we higher was customer

end the rent of metric Cash period comparable POI grew comparable GAAP-based Our upper a comparable prior X% rent to of at X%. was the minimum by coming growth basis is range basis, term our X.X%. guidance. X.X%, cash On initial excluding X% fees in

quarter of was Term year. to period. million Please were quarter have $X.X these supplemental XXXX note comparable versus the XX this the $X.X rent Prior in essentially XX $X.X all we to added fees flat X-K disclosure. figures million in pool of and quarter and million quarter Pages this last each first period in that first our

growing metric and also basis points occupancy results XXX XX.X% year-over-year XX.X% Year-over-year to XX.X%. to lease from Steve. overall from occupied points increasing our our solid welcome, You're percentage XX.X% XX basis were with

at backward a took XQ partners we given January our which in expiration, Sequentially, in two small reflected anticipated and were seasonality guidance. known step anchor lease

of roughly in at rent. spread in spread open progress continue as stands show occupied existing not million represents basis rent signed we total This tenants $XX and paying. Our to points the portfolio getting incremental XXX

Our non-comparable signs rent, million. as $XX pool at the million sign $XX for our non-occupied stands not in bringing total well to occupied total

years, a unoccupied X%. in to lease our to mid-XXs. space, will figure brings total was in SNO Rollover for the and bottom in the results with this effectively over digits drive the a line These primarily of basis new have and a the straight-line over the basis, quarter up online continue higher. consecutive two pipeline number leases When to XXXX. the cash XX% SNO the on percentage even executed remainder our balance low XX% a second to This coming you into cash for number deals currently next quarter XX% line XX% and the roughly double of straight increases on include

shop averaged annual bumps I about increases small at highlight X%. reflects rent as shop small it the rent leases, our line number embedded rent anchor and contractual roughly Year-to-date, blended increases have portfolio. -- both straight in sector-leading across the X.XX% embedded

Now to the balance sheet.

cash. of total $X.X the available million billion at of first with end, under quarter available billion and quarter our We revolver $X.X of liquidity comprised ended $XXX

you unsecured many the we bond, quarter million, of a with no result, end As saw, successfully and subsequent of early $XXX as accessed five maturities to three market 'XX. and until

that whose debt-to-EBITDA ratio maturity expect roughly mind in have for option, extensions respect level we loan, to leverage also as in in our taking and is back With XXXX. XXXX, XXXX. keep our targeted net maturity to initial in at term we mid-Xx Also, fully metrics, our the two noted, to our our X-year is Xx be into the

Additionally, after targeting pre-COVID flow and dividends next cash year. capital we return levels by maintenance to are free to

only of against redevelopments active liquidity. $X.X $XXX our stands now with available at million, in-process pipeline spend of million to and remaining billion $XXX Our expansions

of and FFO X% per to midpoint guidance are $X.XX guidance. first a to at at solid quarter our range. initial affirming at on the we showing X.X% under share. the start for XXXX belts, year Now growth With top the $X.XX guidance the of to and

and with year, our to it rare continue in business, guidance strength that resiliency point the three quarters we for at the year. While this we left would is in modify see

time first seeing bankruptcies in retail. years, the we two tenant For in are almost

economic rates businesses environment in and diminished [indiscernible] subsidies interest selective struggled to government As challenging a higher compete of

points bankruptcies where point of to reserve basis basis very manageable general basis points Bath initial to specified still our credit the comprised XX XX XX comfortable Despite roughly exposure, XXX total a to and feel reserve. date Bed a of XXX reserve [indiscernible] basis with we of points

the the Now started reduced we've expected where cash range outcomes, of rents XX to May on Bath given points and has given now projected, range depend to received basis Bed the if our rent. process of bankruptcy yet May the boxes affirmed of on been eight leases are and/or not which that anchor and That nine will timing assumed, any. reserve points already XX we been this basis have including

for range solid comparable prior in basis an a period ours. first comparable on From of our a affirming given to updated X% cash key Page for adjusting growth a the growth as X-K to terms. summary the X% quarter assumptions we metric, perspective, X% XX range X% rents well are as POI provides our for and

commitment and on several addition to believe to POI we prior and the occupancy metrics, expanded investors that to relating information disclosure expand previously in and period the continuing business Now relevant debt, leasing our for I other provide revenues, notice we'll comparable to fees to additions X-K term to analyze demonstrating our also our is to growth, disclosure effectively most highlighted, rent our efficiently.

And with can line that, for operator, the up you questions. open

Operator

[Operator Instructions] Our with question Sanabria Markets. comes Juan Capital first BMO from

Juan Sanabria

Just those relative know curious that you on I that leasing. to is XX, popped the a also a trailing if mix? normal? you the lower Or new look had some mentioned fourth TIs. kind renewals, in up anchor the you quarter, Is of

that. on comment Just curious you if can

Daniel Guglielmone

the regards a It mix quarter. during Yes. essentially done just what not was with

was we done. obviously, again, mix. the leases also TIs, a of up One mix the that had just a that got renewal the broader but them of grocer And

Operator

The Schmidt America. next question with comes Bank from of Craig

Craig Schmidt

telling grow resi now, might telling than And mixed-use? mixed-use where we I to XX. the about I mixed-use mixed-use second And you will residential, their be about you projects five could six And that retailers kind faster the is, one in strictly third about what wondering are time? assets and do of ones? mixed-use added are think of now, retail or I'm add you What have your rents is, that you talk say resi. noticed from your heard I've mixed-use? you've what development people page, wanted in you opportunity years' properties gone future on

Donald Wood

Craig, pretty I one to funny. how limited Boy it that's love we question.

You question whole paper in there. have white a that

You are the best.

So a couple...

Craig Schmidt

I apologize upfront.

Donald Wood

having I'm the little fun. Not and ability own, a of are real and the what a of continuation that the ours is pieces with is use of we shopping bigger at on estate the see wherever believe, you all. just can you when Listen, retail that we at all. what Don't to X-K apologies just centers in the talking -- successful maximize we're we especially about -- plant. know

the it's able ability to we'd that something DNA uses other add just do. of so And our like something to and to be part is

don't the I today. not them at any the over I would to the not Now should some don't -- into next future, what XX and make that to running months I make those us you that's projects in ground months, expect shovels putting the -- to because economics and is expect be sense sense supposed nine do convey.

be. found, overall differentiator. mixed-use demand Now properties, have with mixed-use It's found want clearly the both resi the respect frankly of clearly -- to a to at and real really the retail property hotel and lots and that we office a well-done where in for is people what uses is

to I also -- the a have It's -- sales. These lot properties. world, I'm result, to why And Lemons there's in in enormous. I Apple of that are the they you as made more counts talking raise would seem charge their the Lulu et in of raise there. visits traffic of comments prices They places areas, a that about to can value-oriented rents more there, see a lot the that than guess cetera, prices. lot And we like really of ability the that a are higher ability expect

think also should both rates see the the the I stronger in before right did been getting since was experience, we of we're than Now That's in it even occupancy and form other frankly, outsized if the then it's floor, users. COVID. our that on upstairs ground we returns, COVID, that

Operator

Steve from with comes Evercore question next ISI. Sakwa The

Steve Sakwa

you the feel mentioned here just not you, maybe held things Wendy, Don, about landscape. just healthy. has survey as all basis tenants. you remained strength you this spending I XX what and I'm you maybe I'm wondering picking has point today leasing I might that Consumer side, surprised bankruptcies hearing up. mean, you just or just sit guys have probably the know general you And wondering reserve on up. Don the of use how Yes. as are from

Wendy Seher

talked numbers. of the just you're shops. specifically seeing first the me great color side, the let right, retail small Dan in But Steve, on some demand before leasing about add kind we're

anything We have make people's decisions. to relates projects as considerable not ability seen and a to decline it of fund

term, for we're understanding that their that making decisions headwinds mom-and-pop. the these for with making that facing, these long They're decisions they're to discussions that they're and critical recession the especially livelihood, are the

in portfolio. So our there's quality a happen to that flight continues to

pipeline. bit, I in has So not. off a I I'm what feeling our honestly, was about as robust is I see little it very ever. expecting bullish to as and It it Again, level

So encouraged. I'm very

Donald Wood

only least, happy would day in really is anniversary I laugh By bit, do kind and XX XX XXth first-time I And Yes, It Steve, in way, make anniversary small me though of the basis mom Wendy the to businesses points. to it same its those XX right? because room at have might understand whatever read that the there May guess, power I you the May tenants. a or don't do, or want shop that is. sure something We the type some of Don, Steve, pops. add you we newspapers mentioned that little of here. don't I And makes and be that. But things the my

use adding or the are into the they're to They almost a at is flight a store food fourth place adding There That's that -- from fifth. always or component. or quality. expanding a whereby another location, strong flow third from that a the critical cash

and the next whatever us. anything parts happens one the place year or year differentiates of this that is of the portfolio prior like if is recessions, this anything So is this strongest our like

Operator

comes next Scotiabank. McGinniss from with Greg question The

Greg McGinniss

Is bit you the let's interest demand. updated lease-up this about we'd Santana all in office talk on floor? Can West feels initial additional more like appreciate little whole XXX you're any is talk a Don contribution by about then color XXth seeing tech expectations. info helpful building increase? and it And serious so or And to also just there. Happy celebrate -- rent

Jeffrey Berkes

is this Greg, Yes. Sure. Jeff.

Don Let Coast, obviously, me jump the question. on part West on second can start off your in of the

So late by and building we business last year start the to leased allow decision out to by to building. the four be made the building four

out great a for coming heard the were on I'm space that's to is we the So you've sublease us. that market sure working alternative about

a little at think, couple combined, they're the a and of space as to it, way with and That to more call forth a of tent in with office market what mid-sized going in tick I the, we bit least settling tours of as need going up, have tenants. back paper cause the

So happy any four-by-four. whether but full not, of this and made And very is course, get activity know really multi-floor to of but we they made that decision tenants, they're the point, would out when there good. building and we tenants start at the we'll activity building not are don't I them call I more

Donald Wood

And a don't That said to Greg, that. difference. have is Yes. feeling. difference a that I is say we could think obvious, in just the

on In February call didn't maybe say the fact, or we it last November.

So it's fruit. -- to about really it's too. respect will this XXX, really it interesting. really XXX bears tell. at And happy Time decision point, that Hopefully, with

over the we yet. we building are XXX, out turned haven't their Then they XXX, space. done to the building choice. floors XXX On over

next a year. We starting will from -- next contribution them have

Daniel Guglielmone

year. the of End

Donald Wood

End of this year.

Daniel Guglielmone

Yes.

Donald Wood

lease, really completely percent going know, signed to turn is the And the that space to that's the which, well. -- as is -- so ready we're so XX-some-odd building then then the them. leased. That you of also, almost Sodexo over

a back most number of rest and the We the of at have on forth tenants of serious building point. this for

country we be is that new office at a a a is mixed-use a a possible interesting And have. know, the a that pretty word properties actually us be have subcomponent ring it obviously of first time as in it's when, is where all can't that's in you suburb, would all which dirtier of than undersupplied. So there building component you

the we encouraged West, at is to pretty by certainly at new we're up tell I'm same hope have So And with seeing something Row. I at here Santana what Assembly you. Road activity

Operator

Connor from The next Mitchell question Piper Sandler. with comes

Connor Mitchell

entered to growth not see do the I time So Phoenix, and now you more Hoboken you've you're how infill any urban just market mentioned that or deploy you you've areas more population about know start capital, types. you and digging as soon. maybe two think rushing different But

Donald Wood

problem usually that Nothing investment want be areas. wouldn't The it with It's Conor. growth. lot be supply love we've room there's more big to supply-constrained made to Yes, than in growth population Hoboken, and constrained in areas means Street be supply Washington population big we certainly with more there. for that the a And added.

getting thing very in We're would see we on we just at more the to than numbers it is the fact. I have encouraged into headcount. the make long. more us or very look like the us project again, two markets But of like some whether attractive under extent redevelopment find likely I'm are sense. where expect make going type that. or To that work. that We'll chasing can But to month the effectively one far sense there, already something that. it we by all construction in makes that's next can that's not, to day

Operator

from The Mailman Citi. next question with comes Craig

Unidentified Analyst

redevelopments returns. about of return given How thresholds Craig. X% Hassan for active elevated have you is The the projected for This thinking on are all capital? project starts mixed-use a [ph] cost incremental

Donald Wood

in those good basis need won't returns unless faster. of IRR it's they grow No, [indiscernible] IRR stuff but points Yes. basis perspective, because on couple think of way. think The perspective. more or I an reason like I've do projects, from our it capital an XXX IRR that do keep a saying top we the from incremental perspective development in this XXX incremental we about points is least at I question. answered terms returns very And We cost of of a this of

getting the clarity Maybe getting with the get -- Our depending cost to going add a what increase is projects of able that, like once closer our a hope we -- of be, IRR respect shown risk we're I'd top little that's from project On incrementally, the capital from more the to experience debt there that that. an on little to perspective. that is those are of XXX to I side. us But way comfortable important Fed. has on helpful. we component rents particular bit faster. with are XXX residential The

Operator

Dijkum, comes from Floris question Van Compass Point. Next

Floris van Dijkum

I guess gap drive do occupancy about your is even you could more how the number, next that the I And and occupied will ask XX% increase at shop leased, over two this and maybe years? leased between what you that can think year? will much more how much that

Daniel Guglielmone

The And is would both Yes. small occupied to shop up expect of to higher. percentage XX%. we able those be of drive

XX% And that's up real a occupied XX% the lease of and up think I above percentage on towards the side. north towards opportunity.

think run that our portfolio. more to I on room there's still

Operator

question Johnston Derek next from Deutsche The comes Bank. with

Derek Johnston

perhaps spread. rates a and that But calling to of wide know, on striking touch Fed year. a stability hampered cuts an with it's been Do recycling, frame. you what condense think visibility such in Don, REITs. primarily or of bid-ask can time I first important this round capital some a wanted narrow around the especially for a must be 'XX, and for somewhere and because pause rates really, somewhat growth you in there's it's maybe as tool QX here And

some growth do maybe So reignite that and the year? engine you later acquisitions can accretive

Donald Wood

And hasn't is change. that, know, be to Derek, you there will That There level stability. do, be there some mean different. I very been, as predictability. to as sure, question, has word it's you in of the I without the bid-ask has said your

other it sense, going sense for to Now acquisition not disposition change will is. makes the an market is it stay that time, or a there market and it's makes just than dictate things are that over way whether Fed's but that there

run a I continue long term, some allows level No done. to will do yes, questions. we that. this long us business be stuff run mean, those time. So this And there We've reversion a stability We'll business. cycles, get that to during of to for

Operator

with UBS. comes from question Goldsmith next The Michael

Michael Goldsmith

call, guess a speak next had or over slight as for beat on expectations maybe separately, more you would year's you're take you more that -- a are for three then to the like for, And months FFO what not you relative year. looking of the give earnings outlook Dan, early confidence the little are next like on higher? you caution touching year. would consensus, can an the we the looking which you in it's the I what give that in still terms when guidance you bit would

Daniel Guglielmone

think be biggest continued I leasing Look, the volumes. just strong would driver

It's been is of date large pipeline Our of pipeline is what's as and in strong to been in quarter executed this executed the terms what's as LOIs. never higher.

continues, And so that see and we can that continue.

I obviously, think confidence. some we'll have that

tenants some continued or in not And very we've environment, On bankruptcies. able that. think tenants I side, look, particularly we I economic there, uptick balance, or see the got think whether balancing that a whether market flip the to is out regards difficult well -- with and risk this not we'll done be to weather

to hope continues. I of just exposure certainly, in very absolute but relative think our that terms we've have basis, we those or exposure little to bankruptcies, on that managed in a terms

Operator

with Juste from Mizuho. Next St, question Haendel comes

Ravi Vaidya

Vaidya well. Ravi I Handel. line is hope you guys This for are doing the on

Just and snow to comment wanted spread. the ask about

bps. at Would you view as state could for You steady XXX this what currently a are be? long-term snow

Daniel Guglielmone

Look, XXX we've basis points. portfolio, get points XXX to existing metric points. basis our to basis job, that think, XXX to in like down We'd that of of our to done from north down SNO bringing I like points an We'd to get exceptional tighter. XXX down basis

equal an that that that is is we though, to to size. differentiators be large and have our and is of expansion space One yet that pipeline SNO delivered redevelopment from our

rent total existing $XX to of million So in expansion XXX and and portfolio, that redevelopment equates have we $XX points. million basis the our in development, over pipeline

points I been I is think a what's that is the that's has pretty don't redevelopment a and something or portfolio the scale. what's got pipeline compelling. equivalent effectively existing in done, pre-leasing think that's in that where has we've of because the differentiator more. basis that real XXX anybody the think, portfolio. And it's redevelopment I And truly,

Operator

The with Hong next JPMorgan. from question Zhang comes

Hong Zhang

occupancy. Just question a on quick

I think occupancy mid-XXs economic the last pushing potentially in maybe you year-end. XX%, by above talked about quarter,

given Just your general? bankruptcy wondering that's changed and risk on in if the Bath views announcement Bed near-term

Daniel Guglielmone

get an be would depends think sense Yes. far there's out. from one What perspective, closer purchased We'll we'll percentage. it unfolds. Obviously, that plays look, how rejected. that to to No, had XX% clearer at if out. XX%. somewhat lease full what the it see have on of be there And I a going hope liquidation, a we bankruptcy so how terms anchor in We'll from number boxes, all see -- our then on is we're we've to of probably not But gets X only leases plays that that as in liquidation. occupied

Operator

The comes Paulina Street. with next Green Rojas-Schmidt from question

Paulina Rojas-Schmidt

you your good talked economic And bit portfolio in apparel. how behind price more peers an about are higher perceived your you more outperformed vulnerability little categories foot have that. But slightly have driver how an downturn. demographics a highlighted affluence, you Don, a to restaurants believe is perhaps as are key cyclical exposure

the a categories demographics bit lesson please performed you a could to little of on overlap in have portfolio how a downturns understanding of and cyclical in historically better perform. history high how provide segments between have So these your

Donald Wood

distinction have -- is kind of like they generally real of sorry, higher-end asking prepared it's local. And found effectively mixed-use with Paulina, thanks my estate I in retail do. a look, make those what and remarks, how wanted to that. how -- for tenants, we properties

currently, they ability very of increased we're specific is inflation, in importantly, So to and on importantly, prices. period both and sales the seeing a have the what those tenants operating raise historically are markets where

I this, this. and you I something like don't the I ask think to consider sit I When know answer to and -- but about

you able to how effectively. tenants, lower two years people Lulu take the been imagine of and the next And If inflation prices of Lemons compare a that world, demographic. maybe the big much like aspirational the aiming the lots world to they've that is for -- increase something more or over of that last

et That's it's restaurants, to all -- press us harder a thing really to harder It's includes for that parts in price important cetera. increases. push

Realty Federal was restaurants, more remember, those don't doing everybody XXXX, financial if going had you don't it worried I've that before best-performing about lifestyle, we in was we that. out you I Now about XXXX, and because the know the the were had turned whether because everybody into great crisis not, told more or this company but categories will, Federal, I worried

company, look we Part are those them of the cover generating is and amount happen. more. when at ability performance they've goes that and to foot in volume type about rents there's mixed-use because is I properties, that But raise part are prices. the huge I at them today that we restaurant there. because of gives to that think charging that they of to a that to able in would you And continue certainly a that the through when of the areas, look our $X,XXX sales. And And been of over expect

we our The a conversations we have, are than properties terms and smaller in we're of very of competitors. company tight, number

through to difficult able have be our close they understand to are tenants. difficult work times. is economic doing with relationships -- more We very We that it what

to we those been so that's confidence long to hope doing cycles. it there a it's I similar helpful. because the give this And and behave time, And I way expect behaved are things historically. me have

Operator

The Tayo Credit from with Okusanya Suisse. next question comes

Tayo Okusanya

you of there last on. it little of quarter, solid when working or was a like quarter. on over million a $XXX about Don, pipeline were sounds of so you Congrats talked a dispositions, kind kind bit

like kind taking whether because the it's market. the the Could this I think you it a what's shakeout of to of kind of kind there happening debt done. of announced on close bit rest pipeline, $XX quarter, of the talk longer deals of you little million about

us of sense kind front? happening just what's So on maybe a of that give

Donald Wood

Yes.

we would of have we what And business good plan. of as a our that is. bad and terms that continue a to in We recycle component assets list frankly, of and have in have times times it list

got few So a get properties, of we And look talked to comfortable that it's -- we're that we The those are get we paid year, at. but last last what quarter, et lot well. that's not a cetera. to going about

know, on that And a mean just question we as the table. a in some means anything was is we some could. earlier, those and pickup little side or to stability conditions, it. see to bit there's don't Jeff, that? add we get so the of as the couldn't understanding that pursuant in there through of you'll many going asked That market come Dan assets of the once That Think general I business. to disposition comfortable they process, thought that's off doesn't our

Operator

The next question comes from Linda Tsai with Jefferies.

Linda Tsai

was the yours. I'm just pipeline. that their rents think for this in it of wondering had if a one talked but you average not number SNO for I at look sure I your you if about way, peers

Daniel Guglielmone

come XXs basis Probably rent the on in have we probably upper I you of a with basis. don't exactly here. the mid- mid-XXs low But -- precise a and a can rent on kind to numbers. total XXs back them to more to upper the in on base

Operator

Our Goldfarb with Piper from next question Alexander comes Sandler.

Alexander Goldfarb

sort a the into for number on years out in Don, -- to Hispanic of shopping expanded guys seem Korean Then like can And centers of to of the California. powerful the world that you the be update have following. also those a also cold-type pretty you looking an also centers just ago, anchor, Marks and that. seems H

see ago, So not your more out so you Asian what of Or a bought maybe experience with thought. number do centers? you way panned is expanding years in the Hispanic far you into the

Donald Wood

Thanks, thought. Alex. out the panned It we way has

pandemic. really local during our It right that given the better be properties probably with manage the to consider with, depends on course, would we aligned to pandemic, those to partner. well your -- fact, answer the we and In that terms question need thought we in -- to global on need that depends partner a exceptionally performed than didn't -- that need the a fact with the be really we a and and to the can we market, views property. way respect be would we comfortable of What

been got really actually week they've and any out perform to individual of deal those it. Prime have deal, have make more by there are a sense. well. would some But find of has next But sense, partnership. those trouble assets I'll good added adding Stores. be been We with had it. made on very didn't Store to and wanted to to more that. Prime that We've It's Monday we

out worked part's really well. that So

I In get not we're leased demographic that familiar because these any right of to other hurt. comfortable decisions that if are estate and and with, specific terms have type be say, a have be have grown we a real and property market we're to as partner with, to to need with we'll not the as be operated

at we've have not time. better that we partner, right and this the found So

Operator

This back concludes like Leah session. to conference to remarks. I our closing question-and-answer would Brady the turn over any for

Leah Brady

joining Thanks look many coming We us of the to for forward today. seeing you in weeks.

Operator

now has Thank today's concluded. attending conference for presentation. The you

may You now all disconnect.

Federal Realty Investment Trust (FRT) 4 May 232023 Q1 Earnings call transcript