Weingarten Realty Investors (WRI) 23 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Michelle Wiggs	VP, IR
Andrew Alexander	Chairman, President & CEO
Stephen Richter	EVP & CFO
Johnny Hendrix	EVP & COO
Mary McConnell	Citigroup
Greg McGinniss	Scotiabank
Craig Schmidt	Bank of America Merrill Lynch
Ki Bin Kim	Truist Securities
Michael Mueller	JPMorgan Chase & Co.
Floris Van Dijkum	Compass Point
Linda Tsai	Jefferies
Christopher Lucas	Capital One Securities

Call transcript

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Operator

Good morning, and welcome to the Weingarten Realty Inc. Fourth Quarter 2020 Earnings Call. My name is Brandon, and I'll be your operator for today. [Operator Instructions]. Please note, this conference is being recorded. turn to now Wiggs. will I it Michelle over And Michelle, begin. you may

Michelle Wiggs

fourth welcome conference and morning, quarter to Good our XXXX call.

Joining me Joe Richter, Hendrix, Johnny today is Shafer. Drew Alexander, Steve

financial of the are As due those of Securities or subject believe management's Litigation in to the More Weingarten's statements make tab meaning information the made variety investors current certain to located during Reconciliation to as under these These a results. I Private results from financial operating now understand is during website. such Actual Act. these non-GAAP certain FFO, based conference help reminder, supplemental to and of the better our non-GAAP changes this statements forward-looking about are Drew operations such call available company's Alexander. Reform both which within package is expectations factors. NAREIT, over analysts to the materially circumstances. in statements management our projected uncertainty Also are course core will on to this forward-looking factors and Relations in statements and we differ could in Investor measures the may a filings. information of contained reference call measures, from SEC turn call, and funds

Andrew Alexander

that reiterate all to felt Michelle, COVID-XX priority was inconsistent, community and and We to Internet associates, that patience working as well-being tenants, broader in some your for stakeholders with first behind be best you and we the of joining conditions. for last continues as and difficult rescheduling for want was thank week. begin the put you, our to Thank call and our I us. I thanks hopefully to team the the safety you call all us. power our from was of moving our

our with for the are We operating pleased results quarter.

primarily portfolio grocery-anchored of Southern the centers the trend and which Our clearly States. located Western of to transformed cash collections our reflects United in strength favorably continue

years know, demographics centers ago. Weingarten most several stronger on multiyear with focused transformation tenants. selling We As watch list centers embarked with upon a and

better in Our We've operate popularity states we strong in positioned enhance will for transformed our growing the is value of further today and Sunbelt believed which the the portfolio. of portfolio always much growth. the

strategically Carolina We Both continue portfolio quarter. Texas Dallas-Fort good the didn't to Charlotte, markets, see we but our real hone a exiting North during getting in and either. presence Worth,

made it So sense strategically, to exit.

development For of our totaling sold in $XXX year, the X $XX to Raleigh. in year-end, in purchased we X sold million, million X property projects. $XXX new we full and and Subsequent invested million assets X Tucson properties,

this purchase little the discuss remainder portfolio. We in pleased in Village Johnny Hill of best will Plaza in Houston, bit. are at certainly with especially our Bunker our one of properties of the a here further

While full lot box team this made occupancy, impressed there has anchor economic production vacated work the transformation recently as to portfolio already to but of challenges, for junior ahead seek unprecedented us still of road the spaces. certainly hard we we're We multiyear quality are return with a our several in environment especially easier. of ahead the have of gained of retailers our they've from commitments leasing as the

our near-term share much increase per $X.XX an respect grocery-anchored Our higher in base stronger debt to centers, a most transformation and With of $X.XX dividend, per a importantly, sheet resulted share. maturities. declared balance we much tenant percentage a little improved from with to

strong. Our cash collections remained

to the reduced in that only department optimistic $X certainly our greater are that make of liquidity. flow, makes revenue maturities of are look annualized We us we also With our not that than intent with year, Not rents XXXX letter are XX and with from our paying us. very no legal and leases $XX million future. signed material does of and about rent and us also yet monitor that over debt but pipeline requirement, conditions we leases an million additional approximately as NOI cash is this have robust as new annualized we but our growth. comfortable mentioned, optimistic the dividend, this We'll with are we worst CapEx XXXX bullish comfortable are very under behind

construction is investment that complete good three very is development nearly great residential and at leased are with for Driscoll, retail of new leased, There's value. currently XX% completion XX% long-term additional going at Teeter will begin our nicely. leased; contribute well. These residential large leased. West minimal we're leasing to in leased. XX% for flow Finally, residential XX% we're and projects is and creating retail, which they're Centro the At summer. progressing are excited nearing is projects, this and the cash this At under construction XX% Alex, all meaningful stabilization shareholder is scheduled Harris year, with opening their and Steve? Houston,

Stephen Richter

for result to the pandemic is revolving uncollectible revenue impact net $XXX of bad debt, FFO in income credit last ongoing sheet, year. our Core included FFO facility of XX, which quarter reconciliation year-over-year $X.XX quarter a for share per per press of of same about contributing per compared is prior to compared to was respect abatements same of included share. for year. the on rent, tenant and to $X.XX the release. per the additional which Also available. program, With XXXX, fallouts, from Drew. Thanks, the was together $X.XX quarter, our the the $X.XX A of results, reserve ended balance during expense is us share totally our quarter cost the which our core year totaled an the decrease million prior operating our recorded to disposition December share The decrease and

maturities adequate comfortably the sustain With of and late XXX,XXX the repurchased of disposition after our material until growth with dividends shares opportunities. at we the During average pursue to stock no price have share, operations $XX.XX common of from payment an quarter, select we XXXX, per proceeds program. liquidity

Finally, guidance. I'd XXXX address like to

$X.XX vaccination XXXX remainder normal Guidance are to wider is range both out pandemic, run we've $X.XX many the bottom improvement impact for of predictably there and is is due uncertainty This our build from during a core the uncertainties. share. portfolio significant the in process possible the to there. year. of of The guidance gradual year. expected midyear and environment middle economy range While through as the country of based Occupancy per regarding the FFO great the for is scenarios this than find a of how and to a on guidance remaining deal with income retail net perform road moves FFO will transformed the of the to the

drivers some around our Let few components me midpoint guidance highlight simplicity. of using provide the at to numbers a for color major

this but First, fallout levels this terminations, tenant anticipates additional by from offset has guidance anticipated. that that and both will XXXX debt fallout be fallout -- largely occurred bad revenue will benefit uncollectible decrease and as

the in per in result of Second, new budget leases our straight-line cash along rent anticipate to does in write-offs XXXX. straight-line benefit rent absence any with $X.XX of This, rent to any the share projected basis. due will a normal not taking guidance straight-line process to

$X.XX coming XXXX. Third, our $X.XX offset overhead reduction per and in reduction share per a NOI share. development includes a of interest capitalized program of a This in by online $X.XX, contribute of in $X.XX will capitalized

our Finally, we activity. have transactions

we've guidance. of XXXX XXXX is will given are be of $X.XX, This certainly but is share per $X.XX projected these we the not is loaded, a during impact dispositions be provided acquisitions XXXX. $XXX which this front-end build Same-property the NOI of FFO will initially actual which and about guidance million $X.XX $XXX There to results bridge back-end XXXX. by XXXX guidance will projected loaded. reduce between forecast million million between lot reduce includes of acquisitions of totaling partially be year. to FFO to $XX in Our dispositions, but already million, hope helps net in million share. The XXXX which We offset added the per may transactions assumptions, XXXX also by impact $XX $XXX sold

Page of are the Johnny? Our included on specifics guidance supplemental. XX

Johnny Hendrix

Thanks, Steve.

Our produce the transformed, group. continues portfolio highly to at our results peer top of diversified

the quarter XX% XX, February the of billed. of As fourth rent collections were

the we portfolio across and with XX% where were our and other in essential we from of Only collections continue billed improve some California our exception Our X.X% California including have ABR XX% collected of will Large-format restrictions, tenants, to of all categories. been recently comes has QX. theaters behind consistent there. nonessential collections believe lag gyms XX%. total properties, the rent was lifted so Regionally, these restaurants, categories. X

company as is the months. last to collections several similar trajectory January the whole, For a

craft, states, quarter. we tax for to and who has not as to XX% also benefited sporting we XX, we've of not services services, important The not strong home That's Most nearly are many the expanding. fell collected make make demand first our severe Supermarkets, in these and tenants is post of inward billed. the Collections medical paid are of for categories high-growth, XX% help. February our containing These in geographic portfolio will have significant Keep and signed note of many to tenants liquor, XX.X% the Weingarten's We're healthy pro-business, up the transition who not of the can financial reopen. XX% with from working for tenants the positioning migration. sort who as our of pets, furnishings, wine rent. low home clothing, in there from have had any we tenants goods, quarter. agreement have some mind, portfolio X% merchandise, It's As Occupancy electronics, fourth still those and to categories only of company were are But are feared. discount be committed But enjoying last areas rent the able improvements, COVID. space. to thriving. ABR. not experiencing available XX% general of

executed leases quarter, During renewals. the we fourth and XX XX new

$X.X is fourth rent. since generated new represented leases leases highest the The million we've quarter for strong. minimum volume XXXX. pipeline in This is production base New

human demand we've advantage and quarters, poised to resources we're several for space. the great take production adding last the Over our chain to been of

for several we with X.X%. new under and urgent several Care, Kelsey-Seybold Sprout leases leases We're clinics Rent Care. and to medical Urgent signed growth was increased X%. have with facilities, home XX%, fourth leases with just along During retailers. Quick Supermarket and almost the while renewals Ross, Hospital executed also Rent Clinic, furnishing the for PACS Virginia grew quarter care quarter, excited

we renewals X.X%. quarter-to-quarter. Management year, modest occupancy. growth the XX.X% rent for grew from likely new at as overall growth considerably For rent will through leases with vary improving XXXX focus on anticipates Rent

This college average XX%, of strong and high-volume we're over HEB, company centers very The partners now XX%. and we educations of It's XX household next the of we'll very our months. have this in project, Today, and miles around demographics to year. very improves million our one Bunker is assets. on outparcel the XXX,XXX, buildings, X centers Houston-based they Excluding with the redevelopment own the X-mile Academy, Rack. provide projects over Ross, very of Village and to within $XX comes Galleria. XXX% obtain River assets of the company which transaction XX% from is We year. XX% in million of Nordstrom spend Houston our in Most a completing these X excited ABR are over spent anchored $XX shopping incomes strong, The Hill believe $XXX,XXX finest Houston. We've supermarket-anchored almost a Oaks, of PetSmart are here date properties another a population interest shopping at to by returns executed Houston. the these Plaza Burlington,

through Our about of diversified. XX%. properties to we are very of Houston Houston the determine economy effect Drew? I continue Collections continue we continue with and associates the our a at household exact is Houston's but portfolio the and perform XXX,XXX and regained to the the formations. and pandemic confident group. at the will to household new recent on It's half am expect employment XXXX of know positive peer of grow our migration, base at $XXX,XXX. provide X-mile is the it population early lost jobs in average too to for has incomes to top strong beginning our our XXXX. will company, is impact challenges

Andrew Alexander

questions. constant are associates our now, Great Thanks, so to now deal the all Operator, feel Trust XXXX. feedback who but results. we'd hard these very provided in of to through quality and take things are Board Managers are to properties There I great to great positioned our right times. continued issues difficult Johnny. all a improve Heartfelt equals people, throughout happy to be working thanks thank call and you of Weingarten. for for we great today your with, platform still goes interest joining out and who

Operator

from And Citi, Katy McConnell. [Operator we have Instructions].

Mary McConnell

Great.

this how pricing provide in to color just the start, and can both the acquisitions trend you on you on So some to year, for dispositions expect range?

Andrew Alexander

This is Drew. Sure, Katy.

it X with already Tucson, As continue we said looking strong advantage tenants power few of in things, a to at wasn't dispositions that was and map that's the would guidance, we where sold in Raleigh, two be being center people's hone million. supermarket the want properties, and some that most of to more that on have in average. $XXX we as million we're watch list; where X We've the as take and our $XXX to a

or buy have stock a of a of remainder sell activity. opportunity swap So we and Last a few a year did in then disposition forecast, other opportunity forecast as the could largely honings, for would see asset stronger tremendous the basically a COVID amount was be result little crisis, our considered but to Hill. we we Fort than to the of back what Bunker the to Worth last do don't

coming more trading we're But market, at look a at markets. lot call we'll good coast little as are focused, see property it, coast. XX rates, continue selective. know, coastal very everything you aggressive quality a X%, about some trades On hear brokers to be cap markets, it. less like will acquisitions, to properties We about that activity the to So in do looking dispositions We pretty talking we're less on front. certainly for still and on

So have growth make growth sense. good it identifiable to has some it, to to

we some but not So in big do activity, see transaction XXXX.

Mary McConnell

Okay. so us from And how could that's you on of cash tenants coming today trending Got far? collection been then it. update the and percentage levels basis those ABR have

Stephen Richter

And about has been enough, XX% this $XX.X QX about Total in between of cash the interestingly QX, XX% basis XX%, for which is today for is ABR. the tenants collections are and Steve. both quarters. Katy, basis range million, our cash

Operator

From have McGinniss. Scotiabank, Greg we

Greg McGinniss

it and not to to glad breathing that storm at is all appear the about after was the winter -- I'm are be totally of dividend, this the represents reasoning the dividend right hear taxable now? high for currently being one were We does XXXX for Are that gains setting the that income set reestablished understand Is is within distributed? much dividend. to Or XXXX? the what one of room of to doing which matching there surprised like level I'd moving the team talk highest of the CapEx after some needs. the kind group of level yields the shopping call. give center

Andrew Alexander

but Drew. is for the was that's it's It across you and the the tumultuous main kind a Thank thing. Greg, state, everybody wishes. week safe,

several depending robust, guidance, obligations XX% that past at growing as in when with terms as leases things signed So script our the AFFO, how main tried that the thing say this not upon very But the the your And of of comfortable look the of we on we it of what's as score to commenced. taxable going at is income on mentioned at in function to is $X.XX. we huge about year with dividend, the from get what It's of you would years. question in We of well midpoint the look into our strong, we're a estimated but a portfolio, are middle FFO that it. is XXs look It's the amount I pipeline. you

to new developments left capital We that will much revenues. also continue produce more on that don't have the

into position. with feel to a comfortable very the it. of So 'XX financial in look we as great 'XX, We're and end we

taxable with $X.XX. cash the at felt the the comfortable flows, trends, looking we the So income,

Greg McGinniss

so growth XX% higher to of that Is payout? we payout there dividend of you're of what point if up shopping of portfolio a thinking outsized do match expect about this from the within kind we average a payout an to kind ish maybe kind targeting we FFO historical more repopulating get ratio? and tenants to in center kind I'm ratio with lost expect XXXX. that basis? So Or growing from Should maintain the at on back was kind AFFO of

Andrew Alexander

can income would forecast. FFO we you hard COVID really really, taxable do. guess what really, dispositions I that's gets only to Doing do, how in give our thoughts, my But And is projections of but income it Steve a say I'll where challenging but elaborate. is is dispositions what So our own taxable and income. into drives then world, not much we taxable

those are a there joint forecast. We changes for our again, be ventures some but have around relationships, and hard been venture great in while, of to some could joint have very that,

into rent You tenants calendar in get terms pay issues year. about when even the your of

complicated. So it's very

say taxable a to for So I thing. ideally very at be XXX.X% be of would what would income, drives but imprecise it it's us

So I Steve? Anything think Steve's else telling it. me, I covered to add,

Stephen Richter

in going has minimum articulated, was just we're REIT XXX% our careful to Drew maintain long-term to that I because of, the status. required is or No, order will, whatever you the been out But pay be having but in you reinforce kind if of that to precise, anything to advance. to calculation strategy that with and do income net have as

that maintain to a REIT minimum strategy dividend longer payout a the status. So is is term,

Greg McGinniss

Right.

Leasing seems fair. And quick No, to well question in on development then that's Okay. a be just the pipeline. general. going

comment decline. of on the updated yield curious curious leasing final you Centro also on Just stabilized any if you have Arlington thoughts And developments? I'm if the could residential guys the

Andrew Alexander

we tried as we from of we've a whole rent. different fall as to free in of couple tenants as Centro lean at Yes, Sure. the the -- encountered unprecedented we lot year, part of talked in formats, the a pushback

that to due were home seen competition, different work to environment, the investors some of this heard a but the move some some happy from this not have country to and new whole conferences this was at. to with of they across in from localized were move environment, we only lot willing folks, it conditions we've that stare people was Some quite apartment to walls at

back to in So now We ratcheted leased, up that's year, we in little remarks, XX% we got down. posted. into rent. XXs. on end as that the free heard from which the And a the is up up dropped we're the prepared supplemental you've bit We of the about the

More to X HQX. are well. the So projects high. the are quite entry people Amazon barriers from things are office, going to back are The going miles

good feel forward year. we things, the we rest about move So the as through of

As the still far X% are bit broadly speaking, it's a yields, to but looking we a as stabilized yield. at, challenging X% -- say, around X.X%,

we've We before, are as no said where capitalizing. longer in the we're world,

investment our expenses. due So to going is not capitalized up the

each expenses So dollar of additive. somewhat set, is the are and revenue

So low very long for exit the cap this in feel again, term be about even good Xs. to we the product of middle nature, maybe will rates kind

on years. So should West and the the happen many it good can't value is at in Alex, to Harris the see of projects to supermarket And overstate we get Kroger It's creation, them all important we've which how many, Teeter, great open up. worked for the early leasing part summer. the

Operator

And Schmidt. Craig have America from of we Bank

Craig Schmidt

just dig little I Yes, a deeper. wanted to

with you continue you're struggle but just struggle, the what's noticed time. earnings happening some it's mentioned shops? rent degree You realize of to smaller smaller about seeing small dipped -- might your release I your and maybe that what in of some portfolio, the from talk still could that for wondering, think January to I a XX%. the I'm XX% it you collection shops part

Andrew Alexander

then astute are we it mind know, that think at Yes, I'll the generally that in things this need of a Drew. is quarter Johnny. things keep typically turn Craig, season. of This to Craig. an all to I shot you being retail, over follower one is as is Sure, bankruptcy how good and it take main

we're our we appreciable of to that we what good tenants really our top very we see bankruptcies feel One top already the exposure things our is don't look at XX, about and dealing as XX, XX above beyond with. top

especially for So to like in to But the programs are sophistication us There's rescue. the the more come have good We to be the know, mom-and-pops, lot will those -- a real have of California, about it it's challenging. getting There it's coming don't that looks better. level. hard it we use government that. been feel when restrictions, does

us to So add? it's forecast. difficult would Johnny, have to very for else what you

Johnny Hendrix

many it has Craig, of is mean to we've But very some collect. timing. been happy. I January, overall, Craig, days

some think amount it I of of fatigue. is some

struggling We use a if have soon. service could lot the a coming some Washington of that tenants and bit still is are who little still from help certainly

Craig Schmidt

And terms Or in of then little activity. have to willing acceleration could transactions And a to XXXX in overall? leasing XXXX are the in but leasing on you Are think later when maybe want seeing agnostic they're you tenants just sign they year? Great. the greater ABR open leases than opening? do of

Johnny Hendrix

policy, year I that say a Craig, will governmental somebody for to get it seems to given take about open.

So probably anybody who a signs going is now be a in to And that year. open even be not for some lease longer. could municipalities,

back open. or think could that space where once lifetime over be been last opportunity centers and to to get properties be in get years. shopping people and like X great anxious haven't the able other Oaks River they are They to see X a I an

a of that. I people And advantage really So of leases. to lot I what think that's want take think driving is

delays not any seeing new are in We leases.

where to that are are is seeing did lease we're And relative a be. could is a how contingency there when gym. their come, amendments they some seeing really new -- -- some there leases transactions. where delayed on delay who what occupancy or But any of where kind Texas specific We could of a in doing those the some taking deferrals, some theaters, more place. Now amount gyms, in areas X we we're a

Operator

Ki we Kim. From Truist, Bin have

Ki Bin Kim

talked pipeline the leasing you guys So about growing.

this negotiation. quarter, and in $XX I'm of $XX You talked how far deals about much just is million have curious, you've signing in 'XX this that signed another just million LOI $X under or of thus fall another trying about might will I'm today tenants? or other leases? this to how of answer much that ultimately, of paying get your And replacing an are be out to to line just like bottom additive that tenants versus replacing expiring million

Johnny Hendrix

this is vacant. I majority leasing Ki I would Johnny. are vast would say of the spaces that are that say currently Bin, the we --

did they Probably over go months. when vacant they vacant? Now last the went XX

And replacing I place. So referred they're in think tenants the economics of -- to with Again, still I'm even the to bit us there's if abate are not to significantly if I for is this to very them that while we even the many get if many tenant tenants we're a idea we of side better pandemic. trying rent, as as it's it can we little can less a to other renew a little had that for work rent.

to and of trying we is replacement shop replacement tenants the the we're that doing the now Most leasing of the Bealls who of we're So left pandemic. of can. where right Mart Stein [ph], do during

Ki Bin Kim

year-over-year, minus Got at X%. look change same-store didn't level high it. all worse XQ. than much XQ quarter, so like you NOI last in occupancy when quarter's versus declined But And your the this XX% it metrics, Steve, that

good. If at collection, you And went obviously, a up pretty debt the little look bit. bad still rent

just this a NOI same-store XX%, went mental all negative I'm bridge we put negative to things with think forward? up going X% So to of and about come why those should from to how together trying

Stephen Richter

in one mean tenants tenants. the that you some basis lot added a that, pieces probably thing to, bad cash example, I and there's think to receivable write-off is I obviously. that can we QX, point quite debt that the But significant. -- for go have I -- And was again, fallout into frankly, XXX about of there. most any is

as that all and more really some QX. little build. it's So we year, in of debt in have part that and are the a seeing still begin a to caused middle more bad fallout, we then debt. bad then to we'll expect And But about bit noted, little 'XX

So around fallout it it's that number. again, all debt bad

Ki Bin Kim

an NOI, next the element to quarter? fact, reverse accounting by of negative there will a XX% course, just matter Was which same-store

Stephen Richter

it of your the missed -- I with do the part I'm had sorry, first economy? to

Ki Bin Kim

an the XX% will No, aspect NOI same-store is accounting there reverse? to that negative

Stephen Richter

tenants QX and on having the taking just numbers. basis, is sitting sheet AR than more write-off certainly cash the basis Yes, cash balance to the that's accounting to

I some mean, I think So accounting. it of is

Operator

From we Mike have JPMorgan, Mueller.

Michael Mueller

if press results. and going sure you than I I think, make a the of Just take just pre-pandemic want I year, full months. to think expect to can guess It's to of when less recovery you us that, what any do you I release, mentioned a you're time give not operating many months, is And XX% occupancy comment saying. where trough can color frame be to now? level on great. that's midyear And the that you more it where could would compared at or think

Andrew Alexander

Drew. it's Mike,

So yes, still in terms number XX of months, months. XX a of months, months are

we it entry year. about vaccine has when in operate, to the do earlier barrier to as this challenging it sort of And as Johnny game lot when say a fourth markets that things But we announcements was it's very saying said, the be was activity year. saw the Johnny quarter So really we of came to what evolution. of more on back, it with a and are where we've that an is, with commented, and in get will extremely it pleased the because amount of out,

So tenants looking that been actively even we've at opening months 'XX, from so space. this for have forward, been they're 'XX, talking several into looking basically end to point 'XX. then at of really And

we and that get definitely there's part be And question your how things and I'm when another more commenced that all forgot. is sorry, yes, of those I translates could months, So than XX. many

Michael Mueller

crossing talk you at Yes. midyear. occupancy about When

Andrew Alexander

company. has that never dropped the Signed of 'XXs, history question in answer plan, some occupancy supposed dropped late never below financial we this we to don't global the have Didn't in business isn't crisis. of the to Great according XX% And the below. have sort and know and year, to, we don't and internal occupancy the that around has Occupancy. will and in didn't in amount tenants. And Texas some. said, the lot discussions tenants middle have many our really of, really but hand, a do tremendous a high-risk leases that level. right categories, signed. We in And a at totally close function have of but be the new other of Johnny on the it's with it we leases being working then because as we're

Steve of So for said get soften the in bit the prepared as remarks, we continuing then a the do, see little and it to rest year. stronger

not the So XX% play drop will plate close say. does be the at as whether it a below or very they

Michael Mueller

about... talked you And it. Got

Andrew Alexander

And I see. it go sorry, personally am Mike. we'll taking won't drop, but I'm ahead, that

Michael Mueller

leased correct? Yes. Got you're just Is occupancy just rate? the clarify, was say to to that I about rate going it. talking as -- to the opposed

Andrew Alexander

the sign. The said. definitely. as we entry sign operate. takes will and as between Yes. as the these time. That said, Correct. in all a barrier get widen we will we backfilled tenants takes the commence try about a year, to and to commenced generally long think, where markets It And Johnny spreads That's occupancy historic we've

Operator

Point, From Compass we Floris have Van Dijkum.

Floris Van Dijkum

you wanted questions some ask that, Drew, with Capital I to interesting on developments. some allocation.

a in If of Hill bought about of the exited a You Houston. can are but very having control little -- full you the details potential talk your maybe low And Bunker noncore know view? great, you more if give asset you X what's on I that. presumably of rate Maybe bit upside your markets. that market cap asset demographics core in in can

Andrew Alexander

it's yes, you. Sure, beautiful here Floris. And Thank and degrees XX today.

night week were joking outside had a makes. what dinner about I and wife difference last a So and my

it's incomes. with strongest is is of potential because and in in honestly, the but of assets much, concern, the Bunker your not it. understated growth a the the for one the terms of it, through improving that our you thank of super has super so north it we're area south dramatically. portfolio. The high demographics but So it area zip And Hill

We was to apartments, office, want some the to is us. the is great the tremendous across freeway densification is something us. on going it, increase that's cements leasing the further along center hotels, drone any economically, to management take to rents over to also right because an asset This cetera. just River high-rise Houston videos with that talk at who of are It tenant with such it location opportunity of also going shooting with Oak, it Post and thinks ability new that about et is flagship lease for to our it Oaks, coming a incredible

platform have great the Charlotte And -- good it in markets. it also would market of good take But are Dallas-Fort it. in our not the getting only came growth, sort our one. we leverage. it had either just market of up And Worth does presence So portfolio properties a certainly trouble increases both economics either, and in and strong if any at look the we've

A, to I we And be should that say where we significant in market, we day, so you can't our if or somebody other A the a focus the either strategically, in factor heard want be can. resources then

great, a lease to an asset ability continue if So made the to and but any a we densifying, push just makes It's ever with at it to and great could it. sense good sense is Bunker to back, incredible of just focus center. but markets, did lineup look get economically great And rents. tenants big we probably space

Floris Van Dijkum

Drew, I insight. appreciate the

you price fact you're about you presumably NAV which -- think to the allocating or repurchased trading you're shares about consensus to allocation? in your that think shares this I opportunity, in think thing, I closer will greatest going allocating think do to you're the how that think other about value your do acquisitions stock create going you that a And only for forward was capital? actually quarter, can do the West that troubled about see balance look has means I Presumably, markets? your future now Or how recall below back to significantly markets? the obviously, that actually do and past the you on it them is How you're dribble today. company Is do strip I you capital where you in greatest sheet, those resell testament markets where shareholders? talking guess? where core The the the the Coast? feel it Is Or

Andrew Alexander

unpack. Good question there, a lot to

sold lesson the underlying X as the and decent a pretty good tried that price us reconfirmed asset couple a that were in the with, we lot up underlying X NAV. keep really of financial very, dry stock of the assets Orlando crisis lined we to midst So out to powder, able in net were value. a may you was a the that discount remember, very of coming timing global that at buy in and we our Durham to pandemic, have And to very a we comfortable of

lot then our because buy of that to powder creating able were the higher dispositions of a it to them were COVID be, advantage some we we of of why So take crisis expected in 'XX than back. stock and to a result was dry direct

swap the were talked The was Bunker dispositions other higher that to reason out about. of we opportunity

some want we'll of does see itself, in stock present certainly I price. hope certainly dry have we powder. we don't those that advantage. But take kind opportunity to if And So the availability

San have look or or underwriting the focused. quality happy dozen the certainly and Seattle will markets or Washington, we're test two the in buy the we It's all the D.C. where across growth. Francisco California. area about and to And other or acquisitions the things Florida presents individual assets meet Southern whatever or itself, at So Houston that

So present sort are we where opportunities don't just opportunistic preallocate, the we themselves. to of

Operator

[Operator Instructions].

the we Jefferies, have from Tsai. line Linda On

Linda Tsai

Your earlier XQ. cash to XQ collected in XX% and on comment being tenants basis

upcoming highlight trend anything And in same? quarters? the on was Just this does how to it the why

Andrew Alexander

changed Linda, the $XX.X In million. In we that like QX, million. QX, population bit. was had little $XX number a

to why, I continue both So and through out, team as good of collecting that quarters, -- or XX% I a than for and/or have to the a as mean -- The rent. it indication go job do XX% time we to are great fall other tenants changes. added don't we does

that 'XX think build for think I about a of half if again, overall forward, then you first that. weak our from and trend going little things of we terms the think In stay

I way it you're drop shift increase? could to another, see So think but dramatic it or little don't one going Could bit? Yes. a down

Johnny Hendrix

Linda, this is Johnny.

A of and been hasn't of California, they're the part lot and are are just a theaters A this. the in and stagnant. that gyms. there still about our theaters think gyms And lot large pretty Just of movement there.

Linda Tsai

that, I of the Or that guess, signed, tenants? the those category? would are fall not X% like to in related more local kind that's gym

Johnny Hendrix

of there Yes. It's luck are are and gyms. gyms right matter the mostly We've kind to agreement a really of had paying large later that would to gyms of on. else or concern. as coming the the one, sort defer we've fall few a And say fact, small is to out, the with in. where big that very I jump had good small some we've had someone gyms theaters ready

who category who in interested category There's and becomes that will folks lot Orangetheory have the recover when are full vaccination and that Stretch. quickly released You a believe are of restrictions effective. and

Andrew Alexander

requirements concepts for business have a model The big don't just for capital them. those that good equipment is

Linda Tsai

up? just does Got finally steady tick on pretty at XX%. it. then rent this Does Or in collections the it stay XXXX? And

Johnny Hendrix

Linda, I California the -- it and XX% this for believe -- rest XX%. the at of California I is be up. personally is around the we country, ticks Johnny. would is

of So And probably rest months we that for a movement restrictions the is My there. area see we'll sense of behind are I is four And need the the California the think to really being target. lot collections is country. relaxed.

have worse, and lot As issues a worse had. because a getting And longer. lot been about you the a activity the some think closed to leasing lot their of problems they we've are resolution

Stephen Richter

on other me add Steve, Let that. one this is just thing,

X.X% never were have Historically, But X.XX%. the at laggards. of you XX bad to get XXX%. some You we XX%. is we're always the days, Historically, XX%, debt actual end and probably somewhere between

rents end XXX%. pandemic certainly historical. than be But get little to still of has don't a day, to the the different Now the collection you caused at of

XX, the a XX% that, is over We're think good. XX%, we already, pretty little So in probably. at January

have you're going a little So get to XXX% it I grow, think to to but to in put perspective has room you it of not either.

Operator

Chris have And from Lucas. Capital One Securities, we

Christopher Lucas

and to that where How the between should excess help conversation. timing NOI? from catch-up future mismatch is should to back dispositions Or some dispositions going capital for The of some sort replacing that of that of that allocation we redevelopment and timing of something sort 'XX? point the in sort reinvestment, sort is is is the that of proceeds something be of thinking investment that we be about the going projects? probably see Just at --

Andrew Alexander

Drew. Chris,

of terms in guidance that... You're talking about the

Christopher Lucas

guidance. the just Yes. Yes,

Andrew Alexander

opportunities, Yes. Yes. I it. fine-tune Chris, that make sure. can't appreciate, wanted totally we around totally just to It's the

will As I make think well time, of we we not acquisition lot and for sense. this a that. seeing opportunities I think will said, opportunities. at more positioned development exact we're we have second, that We Over are

our years period total multiple in million that to pipeline As you know, we with $XXX have could of another a Oaks. talked over a that at $X up just River roadshow about we've billion

on the a money timing. 'XX, that 'XX, sort some of we in drawings of of if terms in again, be Now spent quick -- lot construction would

something to is positioned be to that term, it want but for underline the the So long we long want I term.

hole meet growth, in our criteria money and not the of and our list to happy. to essence identifiable and as acquisitions, I a be dispositions to we're can that question. that be hone perspective to map the We're focused quality watch good think some from gives be good on a Hopefully, let year, but this So burn term. don't responsive if do so we'll we be to going assets sell the We're we'll investment pocket, it your deal were. the continue and long tenants, have going that. with much going that will money it

Christopher Lucas

Yes.

you this scale a it shot smaller number? at a of through significantly guys sale basis than So sort in I going wanting for just the portfolio rifle past, just selling. Is more were guess, was a Or process repositioning of anticipated is In approach the the similar assets follow-up. amount a usually the on to of terms the dispositions? process, you when of more on market

Andrew Alexander

middle. a it's It's working than think I would -- same little would but nowhere the have the bit we more say magnitude. sell, near do we of sort in it's we

that just working Kentucky good a of don't some think we that been center -- title on get center. resolved. have will X a in more it's is we've because But we rifle it So we issues

little longer we if can longer, we hold to a if it Kentucky. we So makes it hold sense exit little exit Kentucky, probably a

do. there's say what's how I much probably to just leans rifle in we've honed that left and would it So terms not to of that

Christopher Lucas

-- what's Is any something there versus looking over difference there jumping word second. shop any getting the -- in just anchor terms on terms then of a leasing right Okay. in the hustle, for to here, is or now And space. their there done? of to Is interest leases of in right difference more close tenant pace

Johnny Hendrix

Chris, Johnny. Yes.

probably through little seems there entrepreneurs, more have home. looking boxes, a the when a process lot The a the been, desire quickly. are move always I at think more the from have to as working it you're And that guys has remains the with they same shop been. to work difficult

ability for box flexibility our from had did one is pandemic some restrictions this some in the and of does never quickly the will the boxes done. of the Sprouts. for at had to take tenants, have that on little partners, are of benefits the incredible some that were of deal while meant we're at little the friends lease in areas we leasing bit to our we that been longer we've so looking And complement generally, lot it moving uses been They what the little And shops we lease I centers. to have interesting. the us. did great a shopping stuff. some of say a exclusives But earlier certain now of a that to the loosening we providing individual, would ability with them and very faster. get a It's I get to say, other very seem I valuable is

get to get never spaces And so eager before. really are been to these tenants these that they've able

Operator

turn back to remarks. closing now we'll And for it Drew

Andrew Alexander

are you, everybody's available the some We're talking next few shortly. other coming in in weeks, Thank later, Brandon. really Weingarten. There be investors. we'll if I there's to questions. conferences And interest up appreciate

very All you a Weingarten. day. in the interest best. Have all your thank for again, great So much

Operator

conference. concludes Thank today's Thank you, and gentlemen, for joining. you this ladies

may You disconnect. now

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