RPT - Earnings call transcript Q4 2021

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Operator

Greetings, and welcome to the RPT Realty Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. to Managing conference Investment. Director like host, to now Chao, Vin of would turn over the your I Finance and proceed. Please

Vin Chao

Act Good Securities conference At forward-looking meaning joining XXXX. XXXX for you be that of like morning, deemed RPT's made inform Litigation are and quarter during of not statements fourth may this me us to the earnings which time, the statements this for call. Reform within certain Private management call, would conference thanks historical,

Additionally, call. replay made of of that statements diminish call of as made. are passage statements will made during Listeners the the the date the quality time the should this by itself any of to understand

measures the Fitzmaurice, like their call would are open Listeners which turn non-GAAP financial GAAP on Brian fourth for to XXXX, reasonable our which actual and to risk factors file quarter I in year could call believe which, these now and cause on are XXXX from described and fiscal quarter to factors to risks involve differ assumptions, measures. available ended we today's Harper, report the after questions. the statements in that release made for we any XX, opening earnings the based our Although XXXX for and today definitions section. Form Investors results Mike later website XXXX. those Certain CEO, and President reflected for the the remarks, fourth in on December our directed will as to Certain non-GAAP annual nearest CFO, over also quarter be are expectations reconciliations the our of of expectations. of XX-K and factors third on include releases, will these press forward-looking call are that measures in statements and

Brian Harper

of have third types since through totaling open-air we significantly than or year we of our areas been RPT's of new morning, geographic our commenced all better create then many today. transformational are we for our call XXXX to upgraded credits including any XX% while by grow expect were of grade all to our replacing than lever fee management signed becoming income. market We joint XXXX a with our lease footprint our grow or reported in quality. not for spreads with and fourth operating XXXX, in Good ever dislocations addressing less XXXX. the more to XXXX and debt debt $X.X earnings Boston lease fund you multi-tenant data-driven created another more. investment accretive business. the performance, to income primarily for position acquisitions and valuations, our maturities year buyer in venture driven enhance tenants strong Vin. have operating of rated space year, RPT equity, XX%, amount and history continues you, shareholders. We capital a robust approach, accelerate. of our we and vastly largest between FFO and was in portfolio our across And weaker top we Thank thank cases billion, centers improving of today a Compare We to net capital platform joining XXXX, for shopping and formation backlog our value and We year to by stream. our our in advantage take by growth Through in single in tenant business significant lease fee of tenancy while assess we consecutive

basis few and on up of over management strategic start $XXX NAV and our RPT were growth acquisitions team an where a our in acquisition investment will opportunistic strong timing that assets underwriting, we cap bought XXXX. performance we lens we're downturn The early XX them front, our platforms, as our could market done we earnings believe curate traded highlighting the before buying to points our gross would in cap actions against to timing rates. case XX not sector. years, these rates multi-tenant at got three of of better Through the since into almost than the setting a close comps the think today's current high been of growth and the attractive considerably. XXXX million years on was senior on over joined assets investments. lead quality of we As compress short with of able window RPT Starting about for we acquisitions next ago, the tighter Based use in COVID-induced to portfolio bottom-line markets the successfully

competitive In data that evaluating a provides addition, we when advantage our have believe acquisitions. we science us approach

talent to success our analyze technology and assess long and trends, Over the risks, data-driven project optimize this our we In will the in invested allocation approach it decision-making, the clearly XXXX. better months, to in evolving property. several run past capital future of have happened

of put acquisitions into perspective. benefits me our XXXX Let the

XX%, our of and mind, year one done fees in we to joint-venture Chicago, basis accretive Cincinnati in Atlanta growth contributing by and by activities, income FFO earnings operating reducing XXXX. and with preferred acquisition Boston, vibrant Just in and Tampa including our about market Nashville is this increased net And an keep $X.XX growing the Detroit our to exposure of X%. by exposure

Our featuring of square anchor grocer Whole XXXX and acquisitions as foot. sales such per performance strong quality high with Wegmans were tenants also $XXX Foods

generate to primarily acquisitions totaling an yet commence years, leases income. by these advanced negotiation have approximately in three million recovery and expect to driven next of ABR the signed well X% growth over or NOI $X.X estimated annual above trend We

we with to will former on current Mart premier to underwriting, increase for the lease Tampa the XX%. The is the new box, to of acquisition rated million. the commencement able market is looking platform which are point lease. basis great over secure a During XXX grocer generate quarter, a the we can upon the occupancy just when vacancy rates. opportunities to leasing XX% a Lakes But of we we Stein Highland spread the kind fourth of utilize $XX closed occupancy center and creation AA for stabilized in of strong current new the and during between were that of This our example, cap yield buy replace value

TJX is of top shopping Center U.S. loop Stop that ranked that high we And through We XX,XXX marquee demographics and & XXXX. household closed traffic to population in The Boston, income info the a with joint do square volume of and center grocery Dedham portfolio. by of property XXX,XXX. our for Boston also extremely Dick's This Boston here. sits great our a also We and platform. inside Shopping that with XXX addition have centers Shop great venture the anchored focused foot a to density is well is soon. X% already amongst announcing the retailer look a features lease $XXX,XXX strong the forward in signed three-mile

Looking forward the on we expect to remain investment active front.

in deal Our flow. industry-leading volume XXXX led to has increased acquisition

investment enhanced with yields. have rates though cap a our Now three competitive through platforms us advantage provide compressed,

properties infill opportunities deep We can centers already larger We're in where smaller to with grocery where ranging can where centers metros across where enhance income and joint more selling returns have a our deals net of our a allocate looking we lease from variety platforms parcels scale. acquisition at by granular pipeline we opportunities high also anchored existing have suburbs venture. to we portfolio

are could portfolio Cambridge realize a where tenant that two the time over sales For significant opportunities above NOI center, top smaller enhance tenant we preserving we with owned Inclusion currently well that could markets grocers with of multi-tenant to of portfolio $XXX We're single our to & target our valley million RPT's while we see where could multi single instance, also the curate tenant selling a parcels outside to incomes lease These mountain looking now venture. We increases outside opportunities. Mom entry properties platform, we ability we properties are realize we would be hybrid multi-tenant of Pops Massachusetts looking in growth. properties portfolio like X% high-performing closed net our pipeline, acquire by by the of north arbitrage lease lease centers net our on net of average In the opportunities yield Boston joint and at platform's has did densities. XXXX. some at acquisition. out with where and in to

We this be expect Tyler very to and his year. busy team

in sales allowing which slower did our growth and asset also As with we Webster markets redeploy proceeds like is the revisit market potential where in uses our better we from into weaker recycling are froth us is a higher Place we quarter, and to we Plaza Chicago, discussed scoring can model. seeing Market last opportunities

could govern the In harvested densification expected best and the interest Regarding at or we a we Webster, it return the data by the decisions concluded are upside and NOI majority the proceeds realize in rate leasing execution. and leasing IRRs felt we On development asset suggested selling we expected simply of shareholders. cap our that any with opportunities. was our vast risk our had a selling X.X scenarios, we the Market and the both evaluating deploying after and value risk of pleased the higher of into multitude without Plaza, that cases

further source and public that are of Given attractive allows also quality. private our to between dispositions and reshape improve the disconnect values, market portfolio us capital an

in markets detail As our million $XXX in XXXX later, Mike outlook, projected with million we match have about which of about $XXX of acquisitions. non-core will funded embedded dispositions we

leasing. to Turning

and no fueled importance of overall channel, tenant retail While renaissance pandemic the reinforced of mortar COVID brick and the demand. one wishes a to happen, has has distribution the

career. the across seen strongest types, Demand geographies broad-based that tenant categories. in midst the in my environment I and have currently are leasing ever property is of all We

we portfolio signed increase at foot feet XX% XXX,XXX over a $XX square our the During representing quarter per nearly square average.

we year, of the highest quality high annual XXXX feet leases, the demand signed our is since level validates in portfolio. million which square and For X.X

by lease we portfolio and XX% unlock We embedded the growth new spread to evidenced X% blended in potential robust continue the the as achieved.

our during in X.X strong quarter Our performance backlog million. and fourth drove the open leasing that to year sign the

and by income. XX% quality attracted to able achieve centers able are addition Overall, $X.X our ABR XX% our grocers, improvements from pool, to also from our million fitness, in to in with totaling recovery tenants were get exciting We economics growing leases stronger incremental clubs we in for continues boutique concepts, to the weaker advanced are credit to sale locking In to XXXX. on estimated ones. grocer stronger. ABR the more negotiations in to important whole also increase replacing were tendency Equally and casual SNO fast we

Bryant turning REI, Lane Food AA Sephora, Stein Trampoline Mart Giant, We and grocer, Warehouse, and into Ahold, are Airtime Park, a Ferguson. and Burlington Shoppers Game rated

our investor the XX rent double on is of what XX As is about for compression basis you page deck our value are representing can new points, tenants rate XX see replacing on they these for about significant both these metrics website, cap and to creation. assets

leases advance and one five tenant will leases materially leases upon mentioned As see that top investment-grade rent become top begin our online, tenancy come the is you commence. as expected to signed a grocer more signed change Including premier will in negotiation, previously to commencement.

parkway the Development. of build enter next think value. agreement roughly them we Upon on venture and We about obtaining Florida. will to DeBartolo an our completion our with into entitlements, land XXX-unit maximize a including properties multi-family with Jacksonville, undeveloped certain also of recently to in creatively property to to closing We conditions joint use continue shops executed best a highest

Delray stake Miami. Sticking plan in will Delray, working the with which of $XXX,XXX on sits and the development. sub-market an We the equity marketplace a in beach for redevelopment We're XX% at desirable at contribute exciting highly land venture.

We of seeing given real quality the demand are the tenant market. robust and of strength the the here, estate

We few the in crossroads weeks break set our in are market. to property ground also at a Miami

existing the Total to million for new XX our prototype building public better page detail. with costs a X% Please supplemental serve them demolishing and X%. is to are cost customers. expected their store we on further of see $X.X of Here larger return

XXX our of side Michigan, square the expect we the also north in where Oakland an county to redevelop identified asset Finally, that have center. opportunity we

We rated grocer strong from investment the have to project a for anchor interest us. major grade

yields costs, two. We the expect next quarter scope, or timing to the over share more details on and

opportunistic fronts. capital As continued all we and Acquisitions development. on in active XXXX, look leasing be will platforms, across very investment investment our of allocation forward all and in three dispositions we

NAV color growth. Mike turn All of which will to to and drive earnings our I'll future the over outlook. that, on results XXXX review quarterly and With our call provide

Mike Fitzmaurice

recap operating end was XXXX to fourth good the more with everyone growth Thanks, will Brian, our year for results and I drivers and detail, everyone. in quarter quarter to per XXXX financing plan, from our above activities morning and acquisitions. discuss understand the help due commentary G&A Today to financial our for of offset against from share FFO operating than earnings outlook. our $X.XX short-term due $X.XX incentive last expected by performance Fourth NOI our primarily higher partially quarter down target

$X.X reserves of rent For per of primarily to on a their high our third property increase exceed all about the compliance higher FFO million relief expectations. quarter share XX% collected, year, Today, and continues driven XX% to range, yet our about operating improve rent, And with tenants quarter with by collected. rent above of XXXX's XX% as over only and collection reported the quarter be a net fourth of in guidance same continue third our deferred penny of collected of agreements reported are have material we we rent $X.XX, results, NOI. to call. deferrals up from of Collections end

we Brian lease totaling including spread our of fundamentals the new a as As square portfolio renewal spread. XX% and blended comparable feet spread finish for a X% XXX,XXX had XX strong at mentioned, XX% year to to leases signed a We releasing operating strengthen. a continue

level spread quarter. of steadily since renewable at new increased the consecutive Our while quarterly lease seventh is second have highest its spreads the for XXXX, quarter

we our be opportunity expect in As leasing in continued our demonstrating double in look the digits XXXX, the ahead spreads new to portfolio. mark-to-market continue we

up the quarter. from basis about Our quarter points last lease rate XX.X%, ended at XX

goal to Key of basis sequential XXX include point ended up share FFO. XX%, open service. and negotiations advanced fitness, long-term categories XX% progress fast quarter leases the signed Our a operating boutique with lease is including per backlog of demonstrating lease in not our increase percentage of small and $X.XX casual to and We $XX.X the million year shop XX%. of a or demand

this the next few $X.XX visible from growth $X.XX in And platforms. earnings a and setting cadence, absent incremental incremental tailwind our for to share XXXX. of growth any benefit is annual of the terms in course strong external XXXX, is Clearly, In XXXX in over per $X.XX up us years. is investment providing this

quarter address Turning a busy one core on liquidity, balance our near-term and debt balance to as is capital we our and sheet of very he tenant sheet strategy continue the front, to opportunistically markets proactively maturities. to

private and the of in nine X.XX% in to to interest of prior a balance replay rates, no and raised placement blended XXXX. we XXXX only maturing about million debt at maturities about bonds maturities and XXXX in with quarter XXXX duration to rate the During jump XX% sheet $XXX adding and of leaving XX-year through debt year a our

grocery close In on joint debt with venture anchored of addition, million our mortgage with GIC. $XX we

rate with weighted X%. pleased years the very an under of average are of interest tender We nine and

front, cap under disposition On assets just average in the sold we non-core weighted Chicago under market a million two rate for X%. at of $XX

availability million. full cash XX total nearly approximately of and us $XXX liquidity our As with a of the year we on leaving ended with result, lane revolver

very to X.X from adjusted with times, carefully. quarter to annualize manage flat EBITDA We enter the leverage of We net fourth quarter. last continue debt

that However, be $XX.X backlog including our commenced our of leverage I referenced X.X times. would signed not earlier, million

opportunity. occupancy We And accelerate the look embedded continue a we various range XX% capital drive leverage to towards also to options. our our for stabilized we occupancy to fall our mark-to-market expect X.X opportunities continue towards capture and to through allocation as times level to will of target trajectory X.X

initial Moving on to outlook. our XXXX

growth and share high guidance the representing at We end. growth of XX% the establishing a per a are range to $X.X midpoint $X our X% at

NOI the related impact drivers. XX.X% net debt XXXX we which increase bad to X% in begin of the growth to end Let's prior This X%, the year. to the reversals property excludes by expected approximately by growth expect is periods. primarily of which be is XX% to eternal to Same with driven to occupancy,

a bad property percentage property points same debt Our of same NOI. in as basis a XXX XXXX embeds NOI outlook of the about

mentioned do or in we total of spec be that minus million XXXX. expect expense important per per future Regarding quarter, $X.XX share which G&A forecast It's or note not last prior quarter. it as revenue to or reserves, $X.X period we termination I plus reversals to in and million $XX contributed

move dispositions. comprised operating our guidance are the underpinning assumptions income now External XXXX FFO Let's to and of Fee drivers. range external acquisitions.

assuming or year. we We are acquisitions plus million quarters second minus that the during $XXX and close of third expect this to of

over $X.XX due minus million, is expected to expected of Fee of In joint close course XXXX $XXX terms XXXX. to over readily venture the have approximately of annualization or lease grocery our plus net to and to anchored investment acquisitions in income and embedded is dispositions, be preferred platforms up about related we our the which platforms.

years, deployment out expect the over venture upon to FFO joint between $X.XX look our we As full generate additional annually committed capital of of we coming an platforms.

shape of I operating The a is for of and of the that addition in of result year have to the online in a a open in in decelerate call The the the And second second deceleration to re-accelerate the handful backfills the coming As the operator planned for spaces will to half year. the first FFO, of of signed to that, the in to re-acceleration anchor questions. expected signed half we timing. already of timing. line with back the half documents turn acquisition disposition addition the result is re-merchandising

Operator

question. question first Johnston your [Operator Please Instructions] with from Our Bank. Deutsche Derek comes proceed with

Derek Johnston

guide is you $XXX the year's since than balance balance could partners, hoping sheet it expand especially last pace? morning. active with RGMZ initial XXXX I over contributions. net Thank RXG, and had guide lower acquisition and year also meaningful very then everyone. net was mean you on acquisition discuss with on and on RGMZ the you. sheet, dispo some Hi, guide. both I was Brian, between Good million for can But the last

Brian Harper

morning wouldn't we basically guide don't And you What represents saw This anything We good we tell something have in is really us can what I on visibility read what's the to. did guidance. typically you Sure. those awarded Derek. our or at million or The this is $XXX time. year just and results. I acquisitions into contract last to following.

focused extremely investments. are on We

leasing much are as are We company. as company investments a we of operations

We pipeline a meetings deal week. have two investment

on to capital all especially all creation could deployment. where we simultaneously our single unlevered setting a these our cap too, coming deploy. million three all even deep with our grocer seeing higher we've our have lot fronts. earlier, street sheet, which up, something with can with Lakes there. And spent retail digits, those grocer AA year ability compressing lot centers, we But we Derek infill We of have a on as types to looking into rolodex uncovering with time similar said to as platforms I close. I credit a create It's seeing value that value and with And to $X.X $XXX got to moat core the of I'm large we we and in platforms types. our sign are rates from of Investments, into billion ways to grade immediately shadow balance out the decentralized are JV, IRRs deploy also personally the product of of yields Highland where business, focused grocer off up energized we definitely deal size We're this platforms. which up off-market recently tenants. But and now set product our markets. high apply fund created anchor to instant in because at say three approach, opportunities we obviously, is add shown where we've competitive investment a are outsized unique we are last-mile/power, the

Derek Johnston

off, view avenue, for the like How Thank in opportunity hoping I this was of you. XXX-unit a Alright. That's more Parkway. for insightful. equity do XX% expand a or a seems deal. new the the RPT basis this you helpful at Brian. agreement given growth and could set I multi-family is your it portfolio? you now on and No, mean, JV. good And guess development very second tapping question, first contribution one-off is a the

Brian Harper

in the I especially markets it and potentially Midwest, mean, is even partners. avenue with and No. Yes. the in a selective northeast some the southeast growth in

retail residential a a I As We're to be we not said, company. company. are going

in and in exit and framework we XXs this high highest on the land We throughout you highest saw markets country. have deals give a DeBartolo. number and tremendous kind to especially on doing that that's a even through as of to this IRR are multi-family. the upon cap We and a that, unique levered based And very now. maybe Tampa conservatively, done rate was possible. have And drive relationship way a entitlement the with really this, the even we're XX as going of was They're IRR raw expecting compressing of the process

the our partnership grow to So, our we're in some centers. excited. and with We're on with even the unused expect land flattered maybe others REITs -- publix next them and to

Derek Johnston

Excellent. Thank you, guys.

Brian Harper

Yep.

Operator

KeyBanc question Capital. Thomas with Todd Our comes next Please with your question. proceed from

Todd Thomas

Hi. Thanks. morning. Good

just to the investment up, First question. I wanted outlook. guess on I follow

Sounds a lot seeing. across out of there like spectrum products that opportunity the of you're there's

the You little You cost issued equity the at $XX have GIC, private $XXX that investment here? which market to under formula you but stock, a of What importance you share. as have the today is share, RPT's talk under about cap can a of a stock to about particularly equity does the from for How are rates mean capital in commitment million little the price, a $XX additional little $XX. a compressed? sensitive flow, deal

Mike Fitzmaurice

No. the Sure, appreciate Todd. I question.

last From late where on at cap X% can redeploy portfolio, First, a in assets get few into Brian our two opportunistic. have be from assets these markets a into has sold we're sit yields where where market a front time we described own And year that absolutely markets again. able acquisitions. year playbook quality the to very that non-core high our to and redeploy taking Chicago page our creatively time assets with same that We were we in standpoint, better we markets can with and think non-core we're can rate, attractive we monetize. sub in going look, be an we in equity that I this active together that

equity for year talked ATM our I mean, use pretty saw down I to have about the it talked fee. and over Brian's over last were at to about comes us. of the You again, over opportunities enhance markets through again. with us prices. the it healthy access And program the we and over yields the where it have that re-partialization power between platforms our arbitrage really really through management platforms and

upward to Now basis XXX of yield. enhanced that's points almost

So giving for us the at that sense opportunity equity to prices raise make us.

to So front. continue opportunistic that be we'll on

Todd Thomas

the Is any in raising guidance? embedded Okay. capital there activity

Mike Fitzmaurice

No.

Todd Thomas

Mike, sounds to Okay. a year like executed related leases outs some first And half in the and the move of in FFO then, talked place there's deceleration about of it that the you for.

offline that offline. of in you will I any or Is that's NOI that are coming begin XXXX? XXX,XXX talked that think XXX,XXX a in NOI previously I think or we about quarterly Where bit, yet process? of it impact

Mike Fitzmaurice

Yes. really earnest begin will That impact in XXXX. in

best to the explain is occupancy. You're for thought going this -- the probably see to give occasions our you way

we year Because already signed level there in XX.X% end the it we're replace not year, at. Shopper's back year asset that in the go the quarter then at And to year That going to back decelerate in the it's in from then a took quarter better the should going commenced and last near out, quarter Grocer where took of box grocer to first much a the the that's the up end where throughout terminated significant there and Shoppers. Baltimore taking occupancy as online. World. a from comes obviously re-accelerate than up You're ratably pretty the of in was first see to to it's XX% XX% we're bringing we Giant this the first at

attention is remarks, So, benefit But about a are my that to $X.XX as a commenced in not bigger I people which in hopeful signed prepared XXXX it's paying of the mentioned benefit. $X.XX from benefit in XXXX. about

So really, when XXXX and tail really going XXXX. nice into

Todd Thomas

for the Brian. just Okay. And last maybe question

leasing bit. years having locking The lease discussions leasing Is And more interested you Are see a leases starting a discussion little little up? with the that looks bit On strong. something XX lease the that in you're was obviously term increasing that more like at out are new having in and very little average longer this been weighted bit. terms leases a tenants schedule, point. to stood and

Brian Harper

I And yield deal box. And cap favorable big where TA Jamestown right to rate new flagship obviously, I cost a deals, Absolutely. both are stacks look what the the saw But would abundance leasing XX some deals the would side, healthy very have between We prototype really net do X%. bps mean, the of Building the Waltz doing. we with the the obviously The been lease. very, we're too demoing XX-year deals And conservatively. [ph], on at XX up at but a you're well. this publix bucks. longer that that We're that deal say, And the think Publix. Waltz as led them seeing triple without multi-tenant the I of compressions deal on there. grocery elevated got that X% traded. grocery crossroads roughly

So we're the have excited that which as of say would But you're our about deals, years. XX averaging really well. been grocery an I waltz around seeing what are

Todd Thomas

Thank you. All right, great. Okay.

Brian Harper

Todd. Thanks,

Operator

from comes question. Bank Schmidt of question Please next Craig with proceed with your Our America.

Craig Schmidt

that is And I given XXXX. observation leasing of Thanks. Brian in your strongest markets for $X.X are you've volumes your ever wonder this seen? in XXXX, your one the million leasing Yes. what expectations

Brian Harper

Village, a near what and tenants I higher it Center outside of to year, Winchester on signed, with replaced Park mean, Shoppers Town but replaced in AA & double lease deals out World to tenants finalizing if rated Center, grocer. this it Charming took beauty I Crofton or placed importantly Lakes credit. based Providence, Marketplace grade on, replaced. number and grocer. is a AA former Stein Charlie, you Stein Michigan Ferguson. Airtime mean, expect we Tampa, the I which last Trampoline investment it we to Nike, with Troy Giant the year. Craig, the last Range with Woodbury, we're at more we Mart Again, the visibility with the the Highland Lane at a be a REI, Mart much the tenants of the be -- of the of up higher than Front Country, at Mart Stein on Sephora, rated there. in just mean, based have former We of I Troy Charming Ahold, expect maybe Bryant, And Charlie, Lululemon, to I even look Burlington, pipeline it's rent of

will So that number size that a subsequent the I talked both to formats of even we call today large are in of about. be of this signed same have which deals and

Mike Fitzmaurice

Yes.

to around that Just do the in increased we volumes Brian's the XXXX. expect enhanced echo thoughts

about a We execute to point do expect increase. The as that square million feet. X.X million reminder. Just We about Brian's did feet X square in XXXX.

to its XXXX. you it's about level of and the for $XX at Craig, that's our [ph]. considerably. up if be So the so so a going new renewal And plan percentage leasing just plan our done look set on leasing far plans,

volumes. So in feeling convicted those we're pretty

Craig Schmidt

you and compare then center the power community rates, compression grocery And center to you. compression concerning Thank how compressions? of the Great. cap anchored would large the

Mike Fitzmaurice

mean, Midwest. in we've saw one I in in considerably. the a dropping six just fives Its the trades the formats I seeing now. at handle been larger

the and on grade are the is especially investment real top now as I real institutional think But of larger buyers, format, well. through great cash estate great private flowing with these credit these flows are on to it get of realizing important. finally kind is finally you but people certainly estate

seeing considerable in compression So all types. rate format we're cap

Craig Schmidt

you. Great. Thank

Mike Fitzmaurice

Yep.

Operator

Van comes Point. Dijkum question. with proceed question next with Floris your from Our Please Compass

Floris Van Dijkum

Hey, guys. Good morning.

get Just wanted a to sense.

is X% midpoint -- reserve of guidance the same-store that? has about bad assumption you're your debt So growth. What in your

Mike Fitzmaurice

morning year. $X.X day XXX good equates in that is back in portfolio a basis $X.X which different Hey, Floris. pre-COVID owned XXX The bad we NOI, per levels was about of context, the about grand to XXXX same million. for property put assumption To points that about million,

we're a on So at -- we're bit given year. in the bit being front just a where that conservative

good at assumption this pretty a So we it's point. feel

Floris Van Dijkum

And you that of certain very historical clearly you Mike. growing market some clearly and to your Thanks, also you if exposure guys, signal your can you're markets I maybe reducing markets. the in -- to mean,

in the suitable you in as and at existing you As to in go acquisitions be would assets source of to you for looking have Or particular And could would your platforms? or platforms? those well, continue in there look new some ways? own [ph] Cincinnati, Detroit you they the JV they in some be would dispose you in -- for

Brian Harper

have we very at investment They I on froth to We're Floris. a actually could the good we're mean, I both, angles. -- be appetite right pretty both. levers now. mean, seeing good Detroit pull looking both in from

has up Illinois been state think even and good kind gone well. we're of and of Minneapolis in things Detroit seeing Cincinnati cooling as in I it's the to and

So we'll look the come at what shareholders. to for both angles. cap we And best the need with obviously up rate is

we So got run something on both exploring sides. both we're to it's But parallel.

Floris Van Dijkum

Brian. Thanks Great.

Brian Harper

Yep.

Operator

from comes St. Haendel question next Our

your with proceed Please Juste with question. Mizuho.

Haendel St. Juste

a of enough. don't Hey, good you the missed under million? know you can assets did -- cap guess, morning that that Did cap that rate $XXX maybe the have question. discuss guys. I million in I contract. in have mentioned if type you mention the you I rate $XXX you or you But first discuss

Mike Fitzmaurice

not one said across dual rate would be I'm high prepared gross to give Boston, the is the Yes. close. it's the into very where high volumes north I extremely of tenant I'll our we country. dual you X% of in volume, anchor, going anchor center -- sales cap a until remarks my get grocery top current But

looking that others where unlevered like IRRs are we we're high IRRs. drive But can at and just street, owners & single-digit infill Pop Boston more looking Mom kind unlevered. tremendous of our Some we're

and compelling market pretty it's too. So off I say should

excited we're and So, been that just XXX on but awarded, has and the visibility expect more. really we that what have what is

Haendel St. Juste

question it. the Got on not open yet Fair signed but A enough. rents.

if you any you're guess XXXX. the why And at given also constraints. into of I on labor concern seeing impact I'm guess or think I I opening pennies then chain, mentioned this you at supply mentioned so I'm I couple think million taking for curious a some X.X curious long? on, discussion. $X.X is timelines signed, first million

kind on of seeing of color pace? the and timing in some what So Thank you're you. the

Brian Harper

Yes. pace. Thankfully the

any percentage at these takes there's best of dates I'm of and and XXXX from which of hasn't of ABR -- worries been in the slipping to tenants. our But driven the that the of of lot any -- opening if are or best tenants XX%. We've about commencement late business, delays pretty rated, any top time these lot tenants, back these their Let XX% XX% of impressive. me but the some groceries rent XXXX. portfolio start grocery are as some for there grade grocers. all with hit delays yet with a will of are of worried of It's on investment always XXXX, openings back. The repositioning we're a

and really in open getting boxes it's for So and moving moving that tenants just and around demising time around that. them

with bit of this most going XXXX of say would into is and I displayed impact little into to a be XXXX So, XXXX. late Mike as

Mike Fitzmaurice

upside, there's Stein tied in mean, that we're acquired bringing in to I at acquisition that's replace where fourth Lakes grocer signed Mart there. lease Haendel, one that lease investment to down XXXX grade quarter Yes. AA new Highland the the just in we Tampa the the the we only

the So come bit that's that's taking to one one deal. and only time online a of there's

Haendel St. Juste

back guess here. wind wide help from rates? as Got despite think fairly it. I Brian, stock to year if I the gap, top the this cap multiple curious at the pickup and price what's of priorities color. that just, of Appreciate that the the you're and close the acquisitions your demand and leasing last remains the And favorable kind you which I more. one JV's year, about guess, I'm

Mike Fitzmaurice

some getting had part I here. our the of think take really, really on I Look, Yes. year. right? But the continuing a the can drivers last wins really the board, year, capital good operationally key of question put we to really is down this of cost

is going year to be better. even this think I

is indicative next few of signed very think volumes the years. leasing the commenced not the I that we expect over

to think one continue NOI XXXX on have any? Brian, year. busy very do think into tailwind same property acquisition XXXX we'll rates the have you that'll this front. be experiencing We growth of nice and some very, and I better we're the for

Brian Harper

Yes.

and So in XXXX on it's apples-to-apples to where Hendel, getting about compare environment finally compare We're we actually FFO deferral to occupancy, the all leading on apples-to-apples growth this back be can on this stuff. I nice mean, without NOI, is all levels. sector compare apples-to-apples

on things. where great So we equal expectant now, very for are we're an platform

a cap when grocer That's top significant AA tenant. I going these that geographies There last is Boston moved investment happening I points said -- an power say we're outlier for five CAGRs moved three, posted stuff. the our grocery number new investment-grade creation think up, compression Atlanta's into in you've the portfolio. on the too. rate up. But in a centers, being across reshaped seen XXX and number board peers. value massive of basis the our we that seeing And deck we initiatives night. Tampa's We've

cylinders. we're about So, on all career. hitting I've is in as Team I'm focused. been and Team my excited energized is as

Haendel St. Juste

color. time Great guys. and Appreciate the

Operator

Please question proceed is with with from next Our Credit Tayo question. Okusanya Suisse. your

Tayo Okusanya

is that million sheet? morning discuss, happening that business. at so guidance all Is on and of Good funds any The $XXX far. balance of Could Yes. just you the acquisitions everyone.

Mike Fitzmaurice

sheet, in No, But of that's JV. the I the that's not north the sheet little balance of be we're can that's that the deal part It's sheet, so about grocer balance off. say, and for bit Boston. that's without a at of most on excited arbitrage measured the balance would fund all. spin-off

have million the platform that and for upsize of XXX billion one sheet. balance is $XXX a But fund the We on triple recent nets. mostly

Tayo Okusanya

you. Thank Okay.

Mike Fitzmaurice

Yep.

Operator

from Tsai Please Jefferies. your with is with question next Our proceed question. Linda

Linda Tsai

Hi.

FY the guidance. there that's of reversals category to the from And What's not the terms prior XXXX? a $X.XX know, draw that potential pool reserves. of are In it's more extent your period in I XXXX included in

Brian Harper

Linda, a look At side favorable surprise on the we as unfavorable this or we XXXX. side the point, to expect really don't out

reserve right reserved. -- $XX $XX million stands receivable our Our of million which around is now at

million be We to yet or is have $X.X collected. about so that

think of is So be riskier at there or going flows for reserve there's that don't cash this point. I tied downside to point to most tenants really this that at upside

Linda Tsai

saw of the little just the Could strength XX%. then high, leases. And leasing six on was leasing, you I there but new were talk about were also a spread that? [ph] it. Got TIs the

Brian Harper

deal, bucks. publix Without Yes. was mean in really it the have that I XX deal Linda, XX-year would outlier Palm lease Beach. the been

was a deal XXs. that So, $X to going and low

have we of quarter extract releasing our needs of I the mark-to-market where have favorable second So, good since very really spreads again is comparable everybody that So that mark-to-market just happen and right? just value XX%, another is very, item this happen the to for that averaged company opportunities. we'll lease to new think understand mean, a going as I continue and from to lot well. will XXXX,

Linda Tsai

put are environment Just seeing one transaction given them market? compression, competition the final question compression are rate sell private to assets because just more and inclined on or cap on increased you of the less owners

Mike Fitzmaurice

competitive. it it's on -- depends I very we're who think competitive, it's I broad. it's mean,

knocking owners But competitive. on institutional it's named all having people as have We with boots well. doors, on the absolutely the ground, calls

looking to some private retail. some of I owners divest are think the

owners the some private to hold love want business think and I it.

bit So of little everything. it's a

Linda Tsai

Thank you.

Mike Fitzmaurice

Yep.

Operator

question. proceed is your question JPMorgan. Mike next with Our Please with from Mueller

Mike Mueller

Yes. Hi, Mike.

of or year but XXXX Just $X.XX signed point those to on talked Should and run clarify. coming about opened we in in impacts rates years? you at of $X.XX XXXX. coming on those calendar during When think not as some

Mike Fitzmaurice

calendar year are those Yes, Mike. impacts,

Mike Mueller

it. Got

to how years? you then, as the the Okay. And that portfolio in it resi few be the today see many development think sites, over actionable could relates do you next

Mike Fitzmaurice

State. Ohio at at That's have number, with tremendous there's but some in our demographics right price huge even a bit. Ohio upper we're Arlington shops mean, I where Foods it's at to a we just Columbus, lane mean, don't project I to quite want in I anchored Whole several. looking demand. center And next a

want a out a that it's number don't on deal of since really But focused Jacksonville here. more we've got back there. larger COVID on runway a put to been of I halt up But a So put that I've with it that. side. we've kick-started for this kind and business see

Mike Mueller

Got it.

Thank it. was you. That Okay.

Mike Fitzmaurice

Mike. Thanks

Operator

session. answer turn question to the we And would back and remarks. call Harper gentlemen, of I over like reached the for and the closing have end to Ladies Brian

Brian Harper

was Thank RPT. a accomplishment appreciate for XXXX Really year everybody. of you everybody's time. tremendous

stronger. is portfolio Our

cash more flows are Our sustainable.

to Our gives is sheet balance market the to full. conditions. changing adjust flexibility acquisition our pipeline And us

Our be could success a and XXXX I have was laid not XXXX we with progress been four the the foundation have as not strong happier past the into would made years. possible over in without that company

no come. that will to of expect We success execution innovative the a thinking for doubt Have to and up another be years wonderful in set XXXX continued year us growth, day.

Operator

conference. concludes This today's

You may your you Thank disconnect for your participation. time. this at lines

RPT Realty (KIM+N) 17 Feb 222021 Q4 Earnings call transcript