RPT - Earnings call transcript Q1 2022

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Operator

Greetings and welcome to the RPT Realty First Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Vin Chao. Thank you.

Vin Chao

Good morning and thank you for joining us for RPT’s first quarter 2022 earnings conference call. within would during to are Act this maybe forward-looking management certain you not of time, the deemed made of statements conference statements XXXX. this like Litigation inform me that historical, Private At Securities meaning Reform the call, which

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

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

Brian Harper

off of and flows. have have quality I company, like improved significantly front momentum, the on our XXXX, ended morning markets, our call people the we portfolio, In cash the access our Good transformation and at investment for in a witnessed with Vin. thank all years positive X today. XXXX continued of the processes, quality of capital. joining started much to Thanks, leasing tangible and success tenants, in my which you

volume decade, quarterly was a leasing accretive investments Our a deals the first team in over level XXXX. our best record-breaking quarter continues to after find while

our front operating into We translating mix time, financial on investment and reshaping geographic and in the is success success. our are real

X.X% quarter same-property is share transformation OFFO NOI per first our Our was growth expectations. reflective of of consistent and the XX% growth with and RPT of

Our our company might is different same, ticker ago. a just years the but it what from few very be was

single-digit XXXX rates deal with River the our wholesale few In reporting our the with reflected demand the last cash their we in years. opportunity compression. retention spreads attractive the a In that value has feet but combined activity the The quarters, environment demand of track a next as over of As through this we robust reflective trailing Regal retention solidify wake annual drive the a is more renewal It the flock the leases square years, our were we first lease a options the will I’ve the the will foot leasing ours. real to estate the achieve the also club quarterly drive signed Ross and we and categories retail deals, first allow also to XX%, to been our we create of since across in Sporting that is have few is in the will anchor and saying us square Providence improve cap of also Leasing Marketplace it leases in above per importance channels. is wholesale leases will distribution on the to of Tenants landscape, the businesses quarter consistent previously as and have upgrades all and of lease to next estate profitable for achieved highlighting apparent Not average. resulting flows. of ours brick-and-mortar X feet That the at hitting value and Jacksonville only XX worth our estate with a noting tenant at City been our improved the Further more ratio Jacksonville for of across level new XXX,XXX our years. first as elevated Marketplace, tenant a to City great past the signed XX% the strength Dick’s spread and to mark-to-market Goods included highest-quality the quarter, two XX-month the on improve like of volume. allowing year us continue exceed rent in-place leases highlighted portfolio over Marketplace the levels. is X.X than Tree Older addition ability with T.J. last below XX re-leasing in strong square quarters through and quarter by their to many putting harvest with club in last average transactions. should price significant year. XXXX, reinforced highest portfolio basis, spread pandemic pre-COVID Strong us on been remains to Cinema. the continue this as quarter, XXXX national first million of X leasing quality key retailers exercising we stability value of new signed types, Reflective the national struggling Maxx pandemic. renewal real is markets for Dollar leases. River property the that rate of that retailers’ several replace component are real became quarter, like at that during high but and expiring market the tenancy, XX.X% the center key in This and

signed of our Troy notable Detroit. deal Difficulty] sweetgreen AA-rated Another was the that back deal grocer this later commence at scheduled includes to [Technical The is on Marketplace in year.

with also has tenancy and earlier Stein upgrade way. a at Country example Town another us to attractive yet benefited box REI We to Strong that with we how at our in business the investment-grade our more is Mart in former redevelop Louis to an economics by leading combined that in along the the opportunities credit. with St. a centers, replace allowing of year, downturn resulting often demand Sephora signed grocery signed anchor also & our in

are in grocers centers, to Palm ground progress We in The and this in Publix Crossroads while County where expansion with upgrade Hunter’s continue great Beach projects Oakland break later Square of Detroit, working with our leading the is the slated to to plans make Delray of month. we at Delray Marketplace Beach redevelopment at outside

from guidance our the remarks we I to to quarter. replacing also XXX tenancy significantly lease is Lot, place. grocer deal continue center, zeroing by by of on of million our the XXXX redevelopment up basis compress upgrade acquisition are investment in which former where believe in to rates Save at and that new anchor will Broward points increased in wholly-owned evidenced the opening grocer A power platforms last once the $XXX We million, we as $XXX as want flex end our much another West net on as to Miami grocery-anchored a property my investments cap will

the Atlanta, and about Jacksonville reshaping total which value, account now total. rapidly like XX% portfolios the are our towards of higher-growth of markets Nashville Florida, property collectively for Tampa, Boston, XX% with Florida markets accounting and the We of for company’s X Miami

that below high per end the the The our is tax With income this after doing largest state center near Portsmouth, market Dick’s sales. square $XXX Buy, the $XXX,XXX. closed Five true market-dominant Sporting about Chipotle cash proven Goods, has average Below. the flow to here credits of strong of New We include Crossings and we Just fits and believe X% our XX asset which The bucket. the acquisition trade tenant of up X-mile combined million on center XXX,XXX, foot year-round realize has square Best XX,XXX Crossings second been average an at When and sales Kohl’s, is quarter, coastal of The center grocers unlevered acquisition, several expected XX% moves be the Hampshire Boston The our and from in Joe’s, $XXX barrier, over credit Other with $X,XXX for lack This Crossings later the of city benefits just as McDonald’s, has near for Ulta, our Aldi also XXX,XXX with of cost. IRR Trader years. center’s high which within shopping vacancy, range. nicely Boston of well last-mile Greater square term. a to is square into The to strong of per in who a foot, two with ABR. durable, year, asset center to that very sales acquired we generate to foot upside we boasts a attractive lease net in XX% expect tourism this parcel area foot MSA. is replacement we attractive This comes in targeted platform can or

based to on order is rent which adjacent mall annual We some a is space increases coming to from the dividing up tenant contractual our drive demand, center. are in that of

Boston existing street street mentioned real real such for have High previously, we Back infill been not Bay, very estate on here. focus SoHo or is the we have focused as As the in strategy estate markets.

Village, that We of replicated. collection Mass, deal our on alluded Brookline the on foot $XXX,XXX. boasts in market This are went Brookline the on markets, first-ring income targeting Village enviable that I real small under Harvard end Brookline, can’t properties call. is estate Street an neighborhoods million. X-mile and Subsequent be located is quarter, we fragmented household and of for to highly population just the XX,XXX with of Cambridge contract to last XXX,XXX of outside square in a of $X

little street which us in value scale ability solid fractured, a us long these with unlevered strong to Boston annual CapEx, of equates product our first-ring which of the gives abundant area a IRRs. and to no neighborhood types with source we properties, provides Greater This is lot generate to where runway growth create can of the to shareholders. type Our for

acquisitions We more lot quarters. first-ring upcoming about to expect in a share

XXXX $XX.X a core. quarter, Stop on the lease Mississippi closed of Haven, keeping while just two the on Ansonia center, the the net acquisition started outside our for acquisition as million. lease is that of significant upside in of market square on centers the foot of neighborhood the two Shop-anchored of has shopping closed in Early RPT’s the and realize foot aspects lease-up from million; we & during of $X.X Starbucks Ansonia business. quarter the $XX in small Stop tenant for platform & on second for New through and is where of platform execute million. properties across Finally, Landing, net a outside Ridgeland, the can portion single RPT’s platform XX,XXX right center, off sale the the of all shop Shop Connecticut

transformation Our is accelerating.

driving our to also continue share OFFO We lead improve portfolio our believe to same I substantial and that turn while tenancy, creation. property over geographic we that, will and our With call to shareholder Mike. quality, mix value will growth the per

Mike Fitzmaurice

Thanks, our everyone. Brian commentary guidance. end on I’ll quarter update on Today, results, good sheet provide our and discuss balance liquidity, our morning first and an and with

We are results. quarter first our by very encouraged

management FFO $X.XX and due fees. to income from up $X.XX operating per quarter First quarter, primarily acquisition over of net last higher was share activity diluted

expect steady. As we to to into to bad XXXX, historical we pre-pandemic collections debt move hold continue as further levels revert

of delivered contributed portfolio which year. by growth operating of This over X.X% and annual driven comprised X.X% of occupancy last rent expense, growth gains, strong X.X% was NOI minimum bad re-leasing lower and spreads Our rent same-property debt growth escalators.

velocity and expectations. also continues exceed leasing accelerate to our Our

in per As total square share. balance, into totaling a signed over FFO and increase be feet, to XX% XX million will ABR with we our incremental to square commenced Brian average. portfolio leases signed operating with $XX.X ‘XX, negotiations, tailwinds provide to a to about not a ‘XX our leases expected benefit continue foot representing $X.XX This weighted over average of mentioned, upside driving XXX,XXX including $XX, per

a leasing an grocer, couple quarter’s This a resulted been in to of anchor re-leased sequential lease XX.X% has our despite spaces, already rate through surge one the Giant/Ahold. recapture of investment-grade in of which uptick expected

the to with quarter also this year-end rate see year leased to the to on to first level. are is end pleased Based unchanged We is of We number we of adjusted in an to in customary increase XXXX, This portfolio. transformed net EBITDA as current continue atypical from yet dip debt first strong it tenant leasing shop is which quarter. small annualized in march XX% quarter pipeline, to for indicator this our last the our our we at post X.Xx, another XX.X%, up holidays. point upside demand rate as our with in a from occupied leased very

million, including better our of commenced leases $XX.X not would at X.Xx. our signed turn However, leverage advanced negotiation be and X.X in

Given leverage towards as expect of and levels over be continue comes expected there range our backlog reported the some leverage online target our timing our years. our to we dispositions, off volatility few continue impacts COVID-related to in the acquisitions SNO burn fall next quarter-to-quarter, but as and to our strong could

of revolver million of million to us basis opportunistic debt the as $XX continue end to advantage acquisitions quarter, our cash. three the opportunistically access capacity forward of had million, capacity equity liquidity including Our take of This strong we across of total million, and liquidity $XXX platforms. remains the we of $XX investment At and equity markets. $XXX allows

In XXXX ATM, sales, with terms in platforms, equity our and our an be debt contributions under on creating with sustainable will all to we all value, shareholder of grocery eye continue growth keeping acquisitions, funding to our assumed and while lease non-core including check. JV leverage asset allocation opportunistic options, and net issuance capital of

a activities, million center our commitment or mortgage XX-year rate we interest share, a on term totaling grocery-anchored with our fixed million our of a at Regarding shopping through Dedham debt a in X.XX%. $XX obtained and JV, Boston, $XX at

second less second customary conditions. to closing quarter, close ‘XX. to and and XX% maturing rate core address year, maturing zero half risk virtually have to the In our through our at this in we subject the all material any all of to facility credit on debt Today, the ‘XX rent, was we next loan Also, debt fixed in in debt with reminder, than expect over conjunction mitigating ‘XX in of years. We headwinds our interest this of as ‘XX. couple plan a recast

of guidance, Moving growth to are basis our same-property on raising given strong we end low performance, leasing our NOI by XX the points. guidance

$X also are share per FFO to guidance raising $X.XX We our to $X.XX even $X.XX. to operating from

year-over-year the property online. base our As in expect growth look forward, year same we of we backlog half our comes SNO as rent back to the accelerate

Also same-property reminder, increase assumed of remainder reversals growth in to However, open in prior to back ‘XX, guidance. any XXXX favorable noted, acquisitions bad given And the our we to million questions. unfavorable for as tougher debt $XXX we And I our did prior XXXX operator a up for will dispositions. include we investment not adjustments to the million to that, do in guidance with or expect decelerate comps that roughly period lastly, the NOI turn call $XXX year as in Brian have the estimates year. from bad debt line and the

Operator

comes question first Your Derek Instructions] Bank. ahead. [Operator you. go from Please with Johnston Thank Deutsche

Derek Johnston

where retail, potential but didn’t smaller wouldn’t acquisition. these going to reasonable is rents probably to is as you Since street think Brookline for small, you first-ring but interested everybody. your and are can to competitors CapEx, would about growth company – deal, certainly this more you needle? much market? morning, of I forward, hear And that be need a alluded a It’s lot the justification. the see below one a said is The there deals the your avenue this move it it, – it pretty in, do good small Hi, Brian. love Hi, a

Brian Harper

case is and question. in you Generally thank and for and I real that our Derek investments moat. like deal believe example have Portsmouth. in morning, A speaking, estate Good that a Yes.

because zero has entry, in, there it that moat market it’s a high-barrier being While of that’s not is anything of ever options. coastal threat relocation its built and tenant Street or

on suburban downtowns large said, the buildings. Regarding given to very investment, is And that first-ring scale, street families company. CapEx. these be would firms my with really, it away in operates requires investment runway of This requires single neighborhoods kind own meeting of iconic Brookline, there this one, our fractured like attributes the or of conviction four core a on-the-ground leasing take have in first-ring they that, number replicated. today. kind ownership can’t needle is This I for the could really or these But you cities little that as professionals, move that an is RPT key also, that

extremely extremely confident are and We these areas in MSAs geographic know the well.

XX in you’ve cities I an really having selective in in local being instead As being and believe index extremely of disciplined fund. seen, cities markets

strategy, are first-ring or significant usually I annual these mark-to-market is healthy at in TA least and of CapEx, no X% in our escalators IRRs. think have targeting signed the Majority opportunities that leases. require second are areas deals have attribute their

communities, gain compression portfolio even portfolio premiums also we these rate sales. on cap more in we the As scale given can create

the the third we something all and could I think pandemic that is acknowledge shift.

shifted As permanently Cambridge. these ever communities the work follow and X-day-a-week suburban retailers. dwell again, frequency such it in-office, to the an And likely and as first-ring we environment increased pandemic time has from has environment is visitor being the fourth Brookline

example, point the complementary are be. to Sweetgreen, they first-ring retailers extremely may ones this Our an to other us strategy often centers. as where want is suburban that our Having to want be at our center our Canton & Shop at looking center, center, our they’d to Shaw’s in in Foods be Whole and at also Stop Brookline or Winchester. Dedham Bedford but

that our throughout this and this same we occurring seen playbook initiative. first-ring have see in portfolio, We

Derek Johnston

a think to deals just raise raised obviously from was helpful. We one more bit question But have And guys avenue million. noticed the I that’s Thank pipeline $XXX guidance. you, is, a used $XXX next issuance we’ve million know Brian. is of it placeholder. did and is very a acquisition No, that you was being and ATM you

strategies, your thoughts opportunities, that, the pipeline of varying that and the seeing, could you’re outside partners funding the you there? So given discuss your

Mike Fitzmaurice

that’s Sure. currency. be Mike, keeping our disposition our in sales, disposition guidance to morning, attractive sit do This point mind, a $XXX cost lift point, asset million the to lowest currently for specifically Derek. to to billion asset two million. about also have – And did platforms the good still but assets that your of it’s sell about our Not we great $XXX very about ago, deploy. At continues in our there JV an ability $X have still option environment to is And because for we We have this to outright, only we very, for contribute income, us we and institutional very second And owning table are leverage enhance then still on get to our these capital quality a assets. the the assets. retain really fee while our management all XXXX. options to

for simply, to million. But that have with So box that’s improved through issuance check. goal is that accretive in to be said, you’ll of these options for of right debt, we we see portfolio buy currency ATM. equity And and we that will there full formulaic redeploy to mentioned. the our and revolver have disposition into about the equity our us, to various earnings out $XXX $XXX with and leverage complete opportunistic the absolutely mix that really was of But always of million been acquisitions the strive keep quality, mix a be have use

Derek Johnston

Excellent. Thank you.

Mike Fitzmaurice

you. Thank

Operator

from Todd Markets. comes question KeyBanc Thomas with Next Capital

Todd Thomas

And two targeting $X it’s realize Hi, neighborhood further begin strategy much initial you the like how relatively street a Good investment, little initial compare allocating you’re of to in to morning. and what about yield overall of move I little to you’re to on what I’m the questions. think envision how curious capital portfolio a that bit first-ring initial here. just the you direction? yields bit deals a thanks. retail buying do I the that sort the and but as sort million on was wanted otherwise? then investment follow-up small

Brian Harper

quite other mean, were This property There very a really, some every IRRs. These we’re is north mark-to-market single-digit for deals driving time. as I low IRR IRR. And high of call. rents. focused, was at un-embedded said and Yes. were X% single-owned that deal really what’s are we’ve on Brookline

have a in the top-performing Starbucks region. You

really to our more We have to I value. put tenants the in buys. and maximize being really see street that of XX% of in XX% tow

We your we’re deals target for our are end is unlevered such day, and actively Miami. the that’s our well Petes great as the there at of what achieve of looking for, St. in IRRs Tampas as to world the here. as shareholders. MSAs, But striving and at And other

Todd Thomas

different to on then from parcels? impact looking that for And sort as helpful. about for, there and say, in, allocating execute guess, that deploying costs, here in capital pricing capital, RPT? way, RGMZ and does of you market That’s be buckets hurdles the have any Okay. to I impact the the kind borrowing are think implications its in an increase invest on of return RPT assets across contributing buying and such and any for there in ability economics Is you’re

Brian Harper

around tell with three There are platforms a obviously, hasn’t RGMZ large appetites that world yet, can all at say been – all volatile disciplined Todd. appetites. you I with should the I triple-net large hungry triple-nets. is platform,

and So But in should focused we patient think fund. year team patient as are this into to enormous deploy Tyler larger they we’re buyers. on going of and his being in unlevered there deals and be GIC, come RXG with capital have year. to next a And We later are opportunities far very that. lot that is that thankfully, as

way get as – with that’s think require the markets I you sellers seeing today, as thinned to debt. all on wanting cash. all-cash are opposed we’re are be all – to And as they that. rooms even of a able for And discount buyers are additive us may out buyers wanting in another be being that

a as very advantage environment. is of having So fund in big sovereign the a this wealth there cost we think partner lowest capital, out

Todd Thomas

then it. one, last Okay. Mike. Got one And

occupancy. that achieving toward You your path comments mentioned a in XX% you see

to achieve little occupancy And occupancy the the end frame with guidance you the it at to rate? year So – Where then of year? as for upside. ‘XX points to what’s the the an update shakes Can think end? you XXX in over outlook anticipate out of at you that it’s do time a basis stands that today, portfolio regards there is

Mike Fitzmaurice

Sure.

rate. So right on XX%. then – and By quarter the to between be year, end the leased XX.X% and the of ended we XX.X% the we’re at going and XX.X% XX%

include there to online of really pretty the the that, come in have million guidance to years, and get our as night by signed That’s original level prepared expect gave going to last the not spaces. do which nothing’s to we additional We online of income of our visibility and from we a $XX.X have negotiation, close XXXX $X So about our come have based X changed But operating the XX% lot in commenced, bit during fully Todd, in will leases back a $X.XX by We’ve currently that that February. recovery end time about today. talked some of in ABR occupied does in that’s to disclosure do on well. that million next over $X we FFO. million remarks about that we behind

feet least incremental, quarter million us really, square really feet necessarily over to XXX,XXX leased but directional start about indication towards this to And XX% to onwards that this year the our to a goal gives with had leased not to the we you X it’s good So level. or year on year. for square at get – credence to and

well the to rate. is have XX% that that retention we lot supporting a get of another level. to thing as So conviction And that’s

about as mentioned was prepared quarter, remarks, in it at the his XX%. Brian During

That’s embedded this guidance. XX% be in what’s year. will at about We for our

you continue for next this anchor visibility that much in it portfolio, Just to we’re different around on that the based recaptures years is of retention today about see was of given XX%. context we And on proactive it some X we to X doing years the bit XX%. re-merchandise the give have to ratio and better which tenants, that than kind little those a over the that historical was ago,

to XX% the ratio, very, retention not about feel very ‘XX. that of and million million between we good commenced level $X behind by the getting the to the that, $X So signed end

Todd Thomas

Okay. That’s helpful.

attributable clarify, and to $X to million Just million the to? $X income ABR of what’s recovery

Mike Fitzmaurice

Yes, the will that occupied is next over spaces several recovery that that income that’s for today months. taken are – currently for back rent be

Todd Thomas

Okay.

high there. of So opportunity in – increase and re-tenanting an increase mark-to-market in rent sort

Okay.

Mike Fitzmaurice

Correct.

Todd Thomas

Okay, Alright. you. it. got Thank

Mike Fitzmaurice

Thanks, Todd. You bet.

Operator

you. Thank

Next St. question comes from Haendel

Please go ahead. Juste with Mizuho.

Haendel St. Juste

Hi, good morning.

there maybe move-in million you two question on is $XX a and maturing plan mentioned thinking maturity quarter. be is no loans spot There smaller talked of year to balance for curious each. unsecured given still a a sheet And that’s the a So I’m term an could spend this the here. think, if you or second couple year. on guess and like XXXX, debt debt via, you next of $XX I a the you pricing those I today? would million, last issuance about address rates maybe the sense Thanks. what in

Mike Fitzmaurice

Yes. Thanks, Haendel. Good question.

So XXX% fixed of today. debt is our

$XXX those and hedges about term none all our stack, is today nothing million. of That’s off next until debt year. of complete roll fixed which our loan have we component So –

modest of So $X.XXX is today, run interest we’re rate it’s naked that which in that terms will in are where But in $XX through impact going most, XXXX. what recast, X%. maybe going given to we’re that maybe million $XXX million at the rates have matures about a to to really, to a but And take that ‘XX, ‘XX from doing at is duration we just that play. –

between through out going add So total to about to capital stack. duration for ‘XX punt a our our ‘XX, we’re it year

do to year. of expect half that the in this second We

for rate of through the debt is way that currently, we given RPT really, XXXX. hedged headwind XXX% have, isn’t interest out So that any just currently all there

Haendel St. Juste

move-in versus versus of are balance Great. sheet sheet capital? as should balance given Curious acquisitions, rates, balance in how Thank about we you think on for of cost maybe that your in split forward color. the what’s capital the And seeing kind then of sheet? thoughts maybe on go terms of terms where some you we JV off

Brian Harper

the it’s mean At opportunistic we I towards platform. grocer first-ring this like dedicate we XX% acquisitions of and strategy. the that. love that driven. same very said And our XX% time, We I Yes. do GIC to as to will Todd, earlier

marketed We time deals are off-market deals. in both spending a on market, of lot and

of And one sheet like as so see two our a what versus could this to ratio I that change. balance but JVs,

of dependent on Haendel, deal-specific. lot a So, is this, very

Haendel St. Juste

Good And Thanks. $X.XX it. forgive of $X.XX what’s advanced the split the negotiation, of rents, to the we guess how year between I under sorry, that maybe – or achieving SNO this but a including about that cadence FFO? me and next if you potential quarterly optionality. million, have should I Got the $X.X think missed cadence year this, of

Mike Fitzmaurice

Sure.

quarterly So, In And to have ‘XX, you in million XXXX, run $X.XX maybe And or incremental about so which XXXX, smaller benefit, $X.XXX in XXXX. $X.X you so. a there, a you QX. will a from or have benefit is rate have will have so $X.X you then a your incremental $X.XX million. will $X.XX then benefit, benefit about

Haendel St. Juste

Thank you, guys. Great.

Mike Fitzmaurice

You bet.

Brian Harper

Thank you.

Operator

question comes Wes from Baird. Golladay Next with

Wes Golladay

you morning guys. what’s Hey. an known Good on left Can tenant give move-outs? us the on update

Mike Fitzmaurice

yes, two known, one re-leased that The to in the about earlier the discussed remarks, our Baltimore. as already at Crofton was recaptured of first so was the calls, That, quarter. Ahold. World. feet that in we the square Giant, prepared We during in took conference for Centre It we XX,XXX back year, Wes, the I on Shoppers quarter, that’s mentioned so this spaces previously

Florida first and project The the excited redevelopment. additional assets XXX,XXX did second quarter, at that that to essential feet your a River already be all that very that’s feet re-leased to grocers, lease XXX,XXX-or-so the back tenants. took at theater, our quarter, about in that are the square will so, already We in backfilling is we Michigan second one concepts about discount. has been remaining about premier we a going XX,XXX City square third Total space of Regal the re-leased The during square and our that. take three of which quarters. Over back is are for a then one Wes, that And That’s so Wine, half tenants. wholesale square we prepping down feet, of XXX,XXX got couple of foot spaces or TJX another to primarily was we

The And offline a that rent and represents that’s back between about rent about high-teens spread. So, has of about all come when you online million. come going is kind is ‘XX that’s up, to re-leasing That million. that online add $X $X.X the coming ‘XX.

Wes Golladay

seeing changing of then the that front, to pricing buyers centers versus for winning how And still a it. deals? And larger you are cash smaller acquisition was are turning centers? lot Got

Brian Harper

very even $X of cases. mean with $XX still cash under some you The have deposits have extremely competitive large had million, Wes. and It’s – we one are buyers kind a few there. selling out of million where dispositions on some I in very

competitive very even say under cash I that on million it’s million, So, $XX would the $XX front. and under

obviously, cash on into think, altitude less you buyers it I get higher prices, of and the as becomes debt. more reliant

we So, us. future, with in think an and the both that’s GIC with opportunity

are cap grocer. – this think I is rate with take compressions in is power, good happening. And is is still This we street, platforms to are that. this of So, very it’s situation this community, advantage our a three

Wes Golladay

can be you quality highly One last me, the it. accretive. Got and going the acquisitions But between asset spread dispositions? to rates is recycle cap about for talk one for the know I

Mike Fitzmaurice

Yes, it’s visibility on today. neutral relatively based our

different guided not what historically. than to, we So, much have

Wes Golladay

guys. Thanks it. Got Okay.

Mike Fitzmaurice

you. Thank

Operator

from Jefferies. Next with Linda question Tsai comes

Linda Tsai

you whole lower Are debt it morning. bad for came still sounds good expected? XXX than because embedding basis in the bad like debt Hi, of points year,

Mike Fitzmaurice

come the did is million given XXX Linda, bad a we basis lower embedding than about a of million, which total the year are bit at are It still expected. But $X.X for for just debt. little where $X.X year, points, in about in we

Linda Tsai

noticed retail, then your to required, an as Got approach scale you What’s approach street in control your efficiencies? CapEx peers merchandising. have of this to purchases one less gain For example, you street Do contiguous strategy? noted of to scale overall assets retail – you more terms it. And to upside. rent suburban

Brian Harper

MSA, Sure. the it this efficiency try for depends There but do on ourselves I the together. to we really not to curate mean, be portfolios is like scale some where and like really we buying sake.

more creating these think I a creating that. that’s of and portfolio shareholder buying one-offs value out curating really and of

there ground each those markets, throughout Boston there to portfolio. seven where or in the in Southeast and the on of but six deals or be Northeast, We the are there out are have boots maybe had five opportunities in

our value I creating in a rents. is to us the it’s But of We portfolio do under-market buying. think great XX-XX to the want the upside opposed individually get broker-led that the that’s a buying little bit just as to We both. from creation want there leased. doing portfolio and really So, building already from

Linda Tsai

Like And considering are formats currently? you environment improved? towards then thoughts are there also or power other overall retailer retail what are your since lifestyle centers the has

Brian Harper

and great We sizes. comes and all that want estate, real really shapes in

type. grocery, want go real they agnostic estate. real street. power, go are estate, go will go on to will They will They best to the product will now they have they just lifestyle, retailers the you to to If

Stein really data that they We among And And deep tenant a Highland is that use Lakes, science had day AA-rated But us grocer all we We vacant. Sure, no to want these example so that, analytics and this that that up much There the we with deal relationships, in. Mart other having us an really sites. lease on they tied center be very our site to closed. that where in that it it’s had was mostly use at grocers center. really XX% two grocer want to and occupied to was intelligence. signed of retailers is these market is us a they tell to lead a be. AA-rated that. the lead would where

are they trade So, us, very, stabilizing are a investment and that partner low-X% decisions. at important cap. it, X.X%, a our to that call to very at Retailers could

Linda Tsai

you. Thank

Brian Harper

you. Thank

Operator

Schmidt Craig America. with Next Bank of question

Craig Schmidt

elevated forward? acquisitions, given redevelopment Thank you. of additional could opportunities do a I of the am level source you going just think wondering, be this

Brian Harper

Craig, I level. it asset on could. depends, really mean the It

to many in did all that. re-merchandising mean in land efforts getting There yields roughly that, we contribute But have own residential we a like Jacksonville, I I and densification think where be we double-digit opportunities, XXX could are in of we XX% proven DeBartolo, ways, in Boston. our relatively, on builder units. of and we Florida particularly

tenants with highest-paying tenant bring rent the certainly lowest-paying in rent to extract want So, and we the great investment-grade tenants.

ways So, redevelopment into And will achieve to the we at we look that doing do if that. highest IRR. goes look that’s for that,

Mike Fitzmaurice

opportunities us, Yes. to on that And and of our we the based estimates on are that getting our is re-merchandising yield point, in allocation. today then Brian’s capital front are highest the

$XX And and spend on we re-merchandising will X redevelopment, about million that and next redevelopments to million so over X just we some that the between years years. over the disclosed supp probably next $XX in our

Brian Harper

year. a That’s

Mike Fitzmaurice

Correct. Per year.

Craig Schmidt

That’s per year?

Mike Fitzmaurice

year, per correct. Yes,

Craig Schmidt

Okay.

million total $XX years? $XX say, X to or so next for million So the in

Mike Fitzmaurice

$XX year. per to million $XX Yes, million

Craig Schmidt

you. Thank Great. Okay.

Mike Fitzmaurice

bet. You

Operator

Next question, Okusanya Credit Suisse. Omotayo with

Omotayo Okusanya

everyone. morning Good Yes.

kind year exit it back there kind X% IRR. NOI probably would rate back cap of maybe assume to strategy, I of seems When the as your mid-Xs your look or calculate valuations. this of us So, It first would first-ring is force that, off like so. that go I unlevered no at yield to is to like compression you cash deal

be of going this So, of so, growth? kind thinking or dilutive more first it’s actually kind of should the to the stuff to you we like be the earnings do, year your

Brian Harper

new first on it months with Call can several at for we cash mid-Xs. And that this that leases. example, really, get within flow one,

around country. from is – in each really of flows asset. we depends an then are on there really be very that’s now it’s and one unlevered So, depends on in XX% markets quickly. IRR you this markets fastest-growing hottest not it cash one that hits but can would one I tell hovering right really perspective, the it dilutive And the

want much high them IRRs So, want we very and – are quickly.

on at year lease are get or and look at as a crack we real that getting really back X that looking lease. or estate back like buying So, in a We at “Oh, we year we five.” this years four will year that X will and hopefully don’t saying, get

Omotayo Okusanya

your go But on That’s of the up acquisition balance is partners. volume kind year. sheet? just most the cap second Again, your current helpful. just to of curious, work, that Okay. just even JV thinking capital the kind about for your general uncertainty of rate? And then partners question, markets guidance JV putting around given does in And how are possibly capital and

Brian Harper

That’s sheet a one one is really – that, guidance, and JV to partner. our for balance one the from

triple-net looking and the in very about sector at that are real I think fund, think We very will – GIC, first in best that for moat They cap being my around earlier have iconic we that. today before, highest I IRRs, rates estate. from we that are And as to in alluded conviction being real the philosophy wider the move much disciplined question. same the I patient. are talked really estate, approach.

hopefully estate. think great I stuff will of So, they do seeing soon that real like all And you JV with be announced. shapes some and sizes

Omotayo Okusanya

you. Thank Okay.

Operator

I Brian will remarks. the now floor over for turn closing to

Brian Harper

operator. you, Thank

a we ago. tenancy, But amongst the mentioned XXXX reflected amongst RPT opening to operating processes, in XXXX. top same REITs it different our that being pack improvements most the be again I shopping in platform remarks, The as our ticker. portfolio much a made So, just than my the of few is to in and today was center geographic changes open-air have are tangible now in our people, the performance we portfolio years our believe mix, will since importantly, and our quality, company financial our

and so Have given joining. uniquely great Thank investment for strategy platforms. wonderful these has coming on to is a RPT day. all and sector tailwinds, you much of the differentiated positioned our pandemic tailwinds Our out capitalize complementary

Operator

teleconference. today’s concludes This

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

RPT Realty (KIM+N) 8 May 222022 Q1 Earnings call transcript