RPT - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to RPT Realty Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Vin Chao, Managing Director of Finance and Investment. Please go ahead.

Vincent Chao

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

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

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

Brian Harper

there. the that operations lease, for the out team in company best XXXX, implementing our call attracting Since upgrading a lease; one portfolio; Vin. today. knew talent morning team be our strengthening our Thanks, to flows; joining strong optimizing and would story, cash the required and governance; turnaround you that our Good thank this joining lease,

and the that. the investment allowed put place we significantly over do data-driven just company operating transformed. This in been years X to Our last has that platforms us

We results. strengthened excellent We and quality have our team. flows, exceptional another operational for quarter, significantly upgraded positioning thanks outstanding the us to portfolio had cash

year, strategic make by RPT, top-growing reimagined will growth, wind transformation meaningful equating the suburb almost have capital our steady of this strides shopping and to XXXX strong accretive like with credit acquisition markets continue banking the year-over-year $XXX and line re-leasing the improved the the double-digit Miami experience that liquidity. of the our This and we their expected rents in activities, XXth support. about thank which considering towards last Village Mary country. in has on significantly in to of bottom were our partners and center be result the over put growth to recycling is drive quarter We in for next we facility vision we duration to our back And in to expect open-air years. Boston generational a top backload for operating To We lastly, would we spreads that our with at oversubscribed highlighted several in July. ABR The our continue consecutive recast, of acquired will to company of our fifth led and fundamentals million in in and holding the value. of stronger Downtown context XX% regions Brickell

superior previously this our tenancy, short in remaining Nashville rent tenancy, growth, to Marketplace an also has uncertainty. leverage to likes Through able cap tenants replacing were like factors efforts where By are we improving has aligned in more. the capital Maxx of Whole ABR, Baltimore. quality, Giant/Ahold, an and tenancy, period been our the advantage grocer markets Miami, are of fall that same multiple a in sales credit have buybacks, pandemic we smaller relatively to benefit this Atlanta. believe improving are at portfolio been much our our Foods, Walmart, we period, markets and X recycling important into XXXX. since population get compression rate now goals, Center Detroit Tampa which that earnings, size concepts, grocery are growth, our doing Troy These and we all markets Wegmans, some BJ's, higher-demand of the significantly economic ancillary like to non-grocery-anchored and nearly Ulta, towards cash at City Tampa, into 'XX As expected with of performance about with doubled like a our Overall, Nike Highland for as weaker Boston, in Lakes our center T.J. process, the Marketplace XX% is with in XX% and household to saying and a have we accretive of blended or better considering in and existing cases portfolio River essential rapidly strength. to where which driving last of job And us over in we allowed reshape we're years for turned Crofton XX% ABR. flow account have adding our particularly we investment translates a Chicago, Detroit for the markets income, In about time, of Jacksonville, portfolio a much, centers, which over-indexed, at growth, improve XX%

end well. at other for will contribute We we up component cross-shopping, not sales initiatives, helped properties and grocery the have a drive These Including XXXX. ABR, over rent growth. created halo small our XX% from performance shop which XX% of of much have our at follow centers effect have which signed commenced, leasing for as efforts more to a

$XX.XX, Fifth is Third like above XX% Massage Bank, at square ABR small in-place Bank, our we new an strong Chase shop foot This signed national XX quarter, shop average with leases small Envy average. which of tenants per

XXXX, key small shop strongest discussing the platforms. transforming this have drivers this up up unique in leased or made progress is million almost experienced million we the investment at The open-air we In of pre-COVID. second the XXXX, followed and by at we've X have Our have our with top $XXX the our another began the increase been XX.X%, $XXX remarks centers our were rate since I portfolio. quarter end transformation X% rapid of acquisitions my buyer now since of shopping share. of year

and open-air of one another and top through Brookline In of visible firms the a iconic combing Sachs, to portfolio Palm in from we cash our long-term great recently gravity given can the new an exposure country. over our see are is which is is based generational Manhattan Mary MSA, brand, now is unmatched grocery-anchored location. is our night. build on With Both scale attractive Miami Elliott to Brickell, in near-term and center portfolio, finally, of Boston the This Citadel, Miami in This provided for first all market great future During the joint acquisitions a ABR. in you great PointXX closed in -- within market, is our ring last our growth, Management rises more and our which growth shop posted the the the as RPT setting platform. including Brickell the that acquisition been South, additions like on we of our that asset, we second we of is investment separate stability, truly continue on closed in about the densification. July, the a property Blackstone, Beach. on of flow asset release on becoming the Crossings is quarter, the market and to up through X% potential ABR. The Village and Miami venture simply Brickell Goldman Mary Boston, centers offering second-largest density, we significant all press Village. with value-creation Mary have reflective potential, actively a which the West statistics

tenants a tenant average regional foot. home component tenants extremely quick over Mary complementary square with of a this in cadence National an years anchored off by of is more $X,XXX here, sales of of cash mix success sales have for XX-hour been to ABR active to an the the square is a attractive well in tenants. that start. account food a the major In and and location, Overall, per Publix for fueled strength service remaining providing and will and flow beverage, doing addition almost do Xx foot be than with by necessity X to stability. averaging Placemaking of we here, term, Florida also XX% per center lineup, Brickell top-performing

of XX The sizable components that is by center X.X% of below rent over today, we types about center urban of tenants several doughnut square be lineup these could of unlocking is office as feet center, to a property While one at commence. or each residential, in where XXX,XXX most foot finest. typical for is that for stories of NOI of out be is development zoned optionality per Brickell Today, site a much yet over a the have leases center term, favorably acre. acquired believe its value future allowances Coupled $XX and at imbalance area. investor Average Brook the to most few for last $XXX this lower gives by with $XX that certain staggering. This a driven grown blocks the a but and setting, square street Be holes the perspective, rents. and expect million we sure above shopping our the is million fact per both ABR stable Page up in leases we we a signed over the market about to last compares XX feet check The deck. away behaves X.X made of the just decade. hotel. plans. the primarily your air as XX% of we lot supply-demand remaining per an at strength square foot. stats per growth square in the and have see the where rents will strong more have demand us also Market suburban From will land significant above-trend robust. This center. a $XXX the parking are is million front The sold Mary signed than market tenant escalators just residential scenario for market acre, for to in as office Longer consider which the

Although see happen things good is material to on development do of great not acquire this did estate. we driver real this believe property good we as potential and that We a future value, the based real upside. estate,

be multiple in to markets urban different within play As core the power vision flow our front. and strategy. amongst partners can the detailed allows first centers access market real clearly the GLA sandboxes knowledge you estate, can and large in on-the-ground grocery-anchored Scaling our our ecosystem. deal to exposure real greater continues and optimize in leverage operations of centers gain target teams, to retail our see, Having we these us estate retail and ring our types investment markets on

targeted the be outlook. details, data-driven We that, an acquisition call initiatives to allocation decisions financial funding shareholder turn with over highly I'll balance performance, our Mike? our and and Mike will to maximize capital updated order to in discuss management value. continue And with sheet to

Mike Fitzmaurice

everyone. and good Brian, morning, Thanks,

FFO healthy by years last and $X.XX fundamentals, to re-leasing proactive operating We by quarter, XX% supported Starting investment rate. expenses for of solid to and a NOI growth, sheet growth come. several pleased same-property We're and results. share bad net $X.XX by share Operating balance diluted with NOI quarter, leased strong another are higher also pleased spreads of very X.X%, allowing growth, primarily per by our report quarter management, our debt including strong up higher-than-expected fueled FFO second activity of performance over optimal abatements. driven with per financial for same-property lower was highlighted

half sequentially; volumes, Leasing spreads million XXX,XXX operating basis up quarter growth and hold the as a than about during since long continue steady. we up share, a balances, to this XXXX. in XXXX. feet NOI and signed leases same-property was from against quarter, backlog XX.X%, a was second level balance quarter impressive XX.X% points advanced resulting per feet, or sign-not-commenced signed-not-commenced of by negotiation signed $XX.X which commence a spread increases million backstop the is XXXX. $X.XX tail square which leased first through of of re-leasing the We have rent contractual square XX robust rate and in is FFO Our Year-to-date, strongest more X

$X.XX in expect of online XXXX, XXXX, the $X.XX come to XXXX XXXX. We $X.XX $X.XX in in in second and half

coming also with XX spreads the opportunity, with the rent drive rent were ended We our long-term also years, the positive embedded during over our adjusted our contractual compelling X.X rent debt our to our quarter for in portfolio XXnd with of growth XX% to mark-to-market first X.Xx. in million, backlog net X.Xx, our the at for leverage with of about quarter. we Annual $XX.X age at of quarter Including about of consecutive better quarter, at increases turn basis Given signed points. leases of XXX coupled would blended EBITDA coming be annualized continue leasing

venture will and fund timing is effectively of acquisitions leverage result this elevated contributions our expectations, including joint quarter we In of acquisitions the dispositions, Our with as with a platforms. dispositions. line to

achieve judiciously the that allowed for to timely quarter, Beach, Tel-Twelve assets, funding well. our of and million Rivertowne the most about Florida execution Detroit. our of have represent has sale source acquisitions, we including efficient us assets. we the be value raised end dispositions these yet and also regard We in is in settled to X that first Deerfield as the forward quarter Since optimal to equity Square first In of capital, in closed of $XX

to $X and we total with we leases, We synergy than of felt investment if platform X the the the we asset the pricing value and Tel-Twelve, property. exposure about previous our sold reduce with $XX to lease our between parcel were of together, able of weaker sales In obtain were while between net we where of both Rivertowne, able and full on we remaining total the Myers Lowe's combined sale had million are our value realize value million harvested able assets highlighting of occupancy to to the the platforms. The sales higher credits XX%. attractive to Winn-Dixie long-term for Bealls, case was

customary Mount went Chicago expect Prospect we contract under to million the to sell conditions. quarter, for closing to recently third also that We plans close in $XX subject in

sale, Following to we one exposure our the will Chicago asset. have just reduced

best these X to platform: centers our joint Marketplace into our Midwest public venture that assets, exposure grocery-anchored between Both Lane highly Finally, both in we've is our in the interest shareholders considering quality dislocation of Columbus, private on Detroit; and terms believe to agreed but properties Troy are and our Shops Midwest partner. joint properties contributing in meaningful contribute valuations, and the we venture Ohio.

flows Our in trade flows us measured capital stronger, for allocation approach cash has allowed collectively growth to and Miami. highly occupied Boston Midwest cash higher

this IRR-driven accretive are we As done on buyers, an was basis.

However, Two, were on contributed center basis asset for were our manner. implied we sales, advantage trading traded on lowering balance benefit the X points, of is three, to portfolio nearly of pricing stock our about All private inside measured the our XXX our to sales between today. of to accretive, in fees. we and expected contribute platform, due components clarity, to our our rate for cap based platforms, created And resulting One, which of direct portion were management of yield the a an which lease to able optimized to asset that our remaining transform reasons. where continue be centers the we is few of of capital, quality our took sheet. public additional select open-air yields enabling enhanced X net our the X dislocation kept on in us JV cost to significant and to year valuation sake neutral

Turning activities. to our financing

principles economic to To company times. as existing loans. liability core amended commitments $XXX for we of well as growth thrilled The an a that have I'm of binding million through unsecured line unsecured to credit $XXX an received credit that of our facility, of million protect to million about to announce and uncertain increase our $XXX our is the and be $XXX restated SOFR-based our credit facility. of facility an end, management One over term initiatives with proactive million consists revolving support unsecured

maturities eliminate facility financing this by near-term ESG happy debt our I'm also XXXX liquidity, of to debt year. options. recast, enhance weighted average our our and approximately this lower have tied we is first the debt our result a cost, directly that X new through time As initiatives maturity into will we report increase our

growth in early the close customary are raising to facility quarter, performance the our moving guidance. growth as expect We planned Due reversals satisfaction given comes subject August online, same-property the operational lastly, of NOI our We not in have or NOI $XXX. to in forecasted conditions. during And for range in we back on share our of rent $XXX closing as prior same-property but to we adjustment from to of remainder XXXX, include guidance. debt by guidance estimates Also, the period basis bad XXXX SNO operating our maintaining to we tougher XX year per decelerate at debt FFO end points any low accelerate year. year while base expect do the to our that consistent the to year-over-year bad to half unfavorable prior growth same-property expect our X% the X% above favorable a of comps backlog reminder,

or acquisitions Lastly, time. not at guidance increasing we are dispositions this our

an which and open positioned to the to the we manner. I'll strive identify call in accretive, questions. to we'll measured that, continue will sit not operator line opportunities to RPT value with However, to And the idle, back turn is in for add

Operator

first from question Derek Deutsche Bank. the is Our Johnston from Instructions] of [Operator line

Derek Johnston

for So row. the a occupancy I decreased see in third quarter

taking aggressively back balance? How anchor, Brian, may you you telegraphed past. are occupancy? that this, are about how specifically, have you Looking space rent I thinking balancing think in you are But on the And lower versus here?

Mike Fitzmaurice

this Derek, Mike. is

to back at year doing several telegraph upgrade at the year proactively going for You're we've to tenancy last take been of several and spaces this mix we centers, that the outset right, the merchandising during did are several which the we years. the

this in quarter a leased acceleration as rate during bit. at our you noted, an up did come rate though, we experience we the So -- down did see occupied the about XX.X%. which was But

which located During to as that by I at in open, very in rebuilding a we the asset. tenant in at that from coming center the and excuse end flagship we've the couple of with BJ's already quarter, that to the hold took next well back here assets space a part is will -- spaces: demoed steady online, believe, store, in quarter But Wholesale we're that grocer; a long-term a a Jacksonville want second Florida in Publix a year of our our signed will offset Crossroads signed-not-commenced the It's upgrade lease we of redevelopment that struggling well a will one is open of we're flight back the partially with remaining regal occupancy a theater we one, connection for the our project one process year. other was at or for, backfilled Florida pattern where taking with that into a already with better at of our 'XX. Publix, the and of asset in me,

XX% you confidence of our point gives the So rate directional make that we from trade of of about to that leased over a XX%, credit see end the over long can very cash year, you kind that that get term. is, perspective. this the The flows portfolio excited which last by creep should XX% absolutely I'd

Derek Johnston

Kind And the deal. in have of All think, And one was of Mary have a kind of a was asset. marketed this It's to submarkets cap this what here? to in I is then, it Brickell underwritten right. guys, Miami. high-quality rate on property, Great. best imagine acquisitions,

like your another to go the over did did Or here? deal? have guys So have this top team what you advantage to win way,

Brian Harper

just Yes. a given $XXX being rates, Thanks, really within I ABR XX% won't upside. Derek. at foot $XX a rents get not done And occupancy market. the into cap appropriate square with now

any It's That's the upside that. without underwritten years won't unlevered which on densification, X% for road. several really on to massive So an come IRR. down

escalators embedded upwards of to in X.X% X% have that. We

have the So And this on previously densification asset. curation, but capital. competitive. in capital that, established of was is saw long-term of investors They This we fact and It a see I just our the growth about massive equity not It very reach. the upon debt you about tell just potential mentioned, was rent could wasn't global we intellectual JV GIC both with markets. XXXX. billions really deal only as icing. and with flow of, partnering just the astute And billions in that

have We have ones. They global relationships. deep

are obviously, their and up -- they top to We show of generational they And world. ours, global brand without one sovereigns the detail, us the too the and with win in talking about getting reach along dance, in when much obviously, this asset. helped

Mike Fitzmaurice

some the clarity at on opportunity. today And currently, Yes. This is $XX asset said, just offer Brian over like in mark-to-market The to is $XXX. well market ABR.

which mean, extremely have portfolio that last I producing high rent mark-to-market which is here. drive XX% we So our been been quarters, We've spreads. as to well. -- continue we've with re-leasing XX over opportunities, runs parallel the

Brian Harper

up very transform I've very, with of the And really, flows type the you in markets we'd you a these cash the And execution top-growing an been portfolio our generational asset into in when the is basis, pretty the buy set this of say to on JVs of could and why dispositions resilient country. -- this Yes. higher, neutral dispose dispositions. pleased

Operator

Our next Markets. of question Todd Thomas Capital from line from comes KeyBanc the

Todd Thomas

like? there. be of the spread of the likely. accretion year ramp you there? how roughly like? over Just should anticipate sort But of that with Or following there much that does would might that to second and look the come heading up leases yields there in dispositions investment. sort to pipeline some on there's X lot XX look of some online what's color mentioned Like, perhaps. Mary the I neutral you executed Mike, provide months the What leasing, guess, year and maybe Brickell additional the next, XX That so yield ownership the you acquisition Village. fund If into a could

Mike Fitzmaurice

where there we lease bought yield ramp Yes. to prepared where about relative got we're absolutely next year. we signed-out of his yet Brian Like No, said some to from today remarks, so at. or think that's commence at the in it over I are XX%

So XXX I you're points points basis would to spread say, it about, above we today. basis where at probably XX bought looking at of

Todd Thomas

term, you little out term, you it's a you'd not radar didn't sheet. I the near venture about and build-out some look current like would on realize structure, balance something that monetize having think like, But that anything RXG longer think whether to bit development as execute term of then risk just potentially that necessarily. within you or longer how the the risk some of underwrite necessarily curious potential probably if for you that would And offload something the Okay. on that vertical and or, the

Brian Harper

years in not future. as taking assure a it massive to underwritten is upside Yes. really, out. the can about that Nothing we're X this was the on I It's ourselves. X And you densification. as far

the road. who of a residential great but one the a help relationship the way that's us world developers with the air, really down Miami top have would We in and long monetize

Todd Thomas

market. guidance. just investment on today else partners' does is of your And of cost of a general guidance investing? like But in significant within for maybe implications What sellers share. net it you're has nothing seems your or back are Okay. property in because capital bit the I like there's that you're others there. for realize little appetite's what dispositions embedded to continue And range -- really off at holding appetite sounds either your are slowdown for it or then RPT? in sort increased kind like pulling What's a of in your their acquisitions have citing guidance, investments,

Brian Harper

with a cap is markets a is rates of assets still outside where -- market the Brickell there's such combing at -- of where This that buyers we're moved between as this all, sellers. uncertainty the cap trophy haven't and mean, I caution. rates

grocery and RPT settles, until the we that the or platform platform sheet? balance to contributions hang we asset -- we'll buy others room. more contribute attribute something don't So accretively a to a where Sure. maybe an Could have. That's do around unique that on

perspective. that the and time, not there, IRR have outside will -- as that. there Todd, when I of we on at capital's the to from same a cost I'm do So yield want assets, striving could highest for the we settle yet of that we're see not possible, -- the where mechanism things But trophy

Todd Thomas

Okay. one touched just more the trying took at XQ remarks occupancy little on understanding it expected little bit that one. think you last to the beginning a get it of of there? is sort to then space think, this, much I the think had was bit go afterwards. that you better XQ on identified how prior targeted your majority this I just have How impact a of XXX,XXX -- forward. I a of off-line in And in was place square on to Mike, year. to And much the of already come moving and recaptures the end there you there might and think and rates that XQ? feet I regarding guess, about And maybe I discussed, year. prepared of the But the

Mike Fitzmaurice

spaces -- QX Today, space few XXX,XXX of quarter see first call It's first quarters. we're our Yes. BJ's that's a Yes. have to XX,XXX I Boston One we've in all re-leased. quarter I 'XX. half X going re-lease feet spaces them referenced XXXX. TJX then the And taking going up third open And square the going And in about -- square that recaptured will going Total One over been back is these for and Wine. to concepts. to hit in earlier has of Sure. been to mean where that lease the to the to three back. of it's we're one feet one approximately, released we assets we're be of two to of open take your it, that point, another

So very, SNO very, to with end command the but that's towards occupancy the hold very cause line strong our of the given kind upgrade of steady in offset occupancy, going to year.

around we is for right really north year and today, rest would to 'XX. occupancy Todd. which be kind in lease the XX%. should on where steady finish upside more of you year again, focus hold of the But the rate, and going more the That will think 'XX I we're at So of provide

Operator

question Haendel the of Our comes from St. next line

Mizuho. from Juste

Ravi Vaidya

This for line Haendel is the Ravi Vaidya St. on

is north that? recession? reach comfortable in we as net horizon target Xx, had that Are here? the leverage you And What sheet leveraging your sellers the high to your of With balance time second you what's be you philosophy in Juste. to expect what's should half? leverage? your And

Mike Fitzmaurice

Congratulations on end dispositions. new a acquisitions X.Xx. timing elevated the was and quarter did given the the at role. of We That bit

strength grocers made It's flows, tenancy exposure of element efforts into your bringing worth point, net balance I'm half to online the focused where in the we in Xs. we that X in centers. as over like the 'XX, will end comfortable and year. we'll essential signed-not-commenced is and our low of non-grocer mentioning to year Xs. high the sheet. in then on just cash should improvement relates get come the We naturally as 'XX the second And the given it leasing And be to the also the especially So does leverage geographic our sellers of that's

currently our We've the And The I of been X have management. or once would recast the is prong XXX% done floating facility, weeks XXXX. going liability of is several here with it second then proactive of prong debt today. for is debt on term to front we're the couple years. risk. other element call in rate loan maturing very through as credit our that hedged last And last next we're our

on have debt the vast, rate vast there. we interest fixed of our So a basis. is vulnerability majority expense minimal And

kind feel and strength really sheet all it when about really, it's good add balance So the up, you of I where going.

Ravi Vaidya

That's helpful.

more one here. Just

of You've given getting that supply faster forward, online you be time great done anticipated. SNO even any labor a job ABR like any chain problems? the going there's opening do anything think signs ahead store and of But or delays to than looking shortages,

Brian Harper

the that's into more I a take conservative longer and embedded in leases. of embedded -- really that We lead times, we're approach laser-focused on and with our guidance.

more leasing of management some sooner. with the the municipalities, job all an and asset open team tenant coordination we a are the upside doing of potentially tenants for hope we So coordinating get as -- actually and great and from even operations kind

more and a beat these and hopefully, And So and this online those open. of mind leases supply view chain. in targets get we took cautious tenants we'll of with

Operator

the next Credit Okusanya comes from Our from question line of Tayo Suisse.

Omotayo Okusanya

information Hopefully, on what I any the loans? also term these didn't new and of you the us credit about miss did give line on would but be pricing the details,

Mike Fitzmaurice

that's on term we've about X-year points the hedged XXX% Tayo, us. on they of And just We're Credit we're in X-year spreads a about terms, talked change more bit the it of given today. are basis lowered currently all so again, past, at Yes. from term. coming XX to in going the And for are at the today. where that spread loans

were to about first If X%. X.X%, I'm that unhedged is into loans, of we it interested something The would rate X.XX%. world the more be that term time gets until million about environment, is a in on come $XX until which about we that not hedge normal hedge have doing is our which today, XXXX, and current

it's today. So too where it's from not at much around further

Omotayo Okusanya

But how is loan the rate -- specifically on -- is loan on term new how the the much? term

Mike Fitzmaurice

It's where it's about less basis XX at points today.

Omotayo Okusanya

you. Got Okay.

the looking you okay, value-add deals. at of unlevered to things just to the only dilutive upside cycle cap look these Brickell, helpful. it's doing today at and makes when kind there's then where, not Again, opportunities matter But underwrite sense. And neutral even work talking and capital done this may But or up I and term? like occupancy an question just maybe about really maybe the to opportunities, That's of is IRRs, put in near capital. you of such earnings X like deals of start across looking look that of maybe kind just at more to cost rates then take over or at to a Okay. near-term, point projects it -- way platforms investment lot boost of of that. single-digit get to But when following kind things from high not the about a get about XX% kind on whole given get the kind

Brian Harper

we RGMZ the Maxx TJX since of geographic With for XX% types into two T.J. on spin-off our Boston with a almost center of tenants a done left open, I a deals. with in combination shareholders more with the a we'll of be those markets, anchor and We've stronger top much these few parcels, And those deal with growth focus BJ's XX% -- that tenants of left after that lasered we're frankly, three the a of all bought where combination. and a core RPT world, the the X.X%. of consists think X brands. to it's our country Wegmans it's Say, investment-grade five And Northboroughs time acquisitions. we're yield and by only with concepts. the the CAGR

markets At highest that possible. in flows resilient end is top So want the very, we with very still the return attractive. day, our the unlevered of core cash Period.

platforms, I set really, that, lot of it optionality that So think the have. -- X peer we gives that's the why with up, us that set and a doesn't

Mike Fitzmaurice

Yes.

told mean at increases of from basis to XXX long portfolio are and back out XXX us, have greatly our online, XX opportunities few there. Mary the is at compelling when rent at. like can that's XXX wider to to term. I I darn about we the yet rates points the come to cap look growth ago. the a you Todd that Brickell XX pretty going about points For minutes Contractual we is all there. Brian It's the basis about expansion talked It's mark-to-market signed-not-commenced which opportunities where points, go basis XXX over

to the push continue to and buys is target, That management that to it that that's high So On single-digit us that. continues top through like that. way get gets other we that, the fees. to asset there get IRR we of

compelling. a our to for us. it competitive that provides point, to then Brian's of bit the option a JVs, So able it's to within and advantage options have And be pretty

Operator

Bank of the from is line question Craig from next Schmidt Our of America.

Craig Schmidt

Just some be mean tenancies. questions taking and on at some Brickell. Any beverage thoughts has Mary it high Brickell? unique on the a might food direction focus very I you and leasing

or you in was you continue taking. Just change already direction would that be the might obviously thought curious if center a the there

Brian Harper

is going of Florida. doing on this lot that user. grocery-anchored got the like this co-tenancy, average the offering in asset. Craig. foot I a upgrade back we country to top today. Xx about mean, really we center apparel I We're our their the diverse is square mean traditional Publix No. XXX,XXX in a wind really, behind And one the don't in food it have I net with and beverage a There is what submarkets volume of

the Sexy just of lot They're our necessity sales. a London. there of There in that's week a Fish restaurant across-the-street are $X today. adjacencies. too, even So interesting, million opened called a doing uses And surrounding recently what's out was is

the compared our look Mary and that in you If restaurants it at restaurant from eclipsed traffic data to those greatly SoHo, thriving at Brickell. of some restaurants

global obviously, least, So food name to is from core digital-native say recognition. there have massive demand pent-up boutique, a even household some brands the some and beverage, tenants, fitness, that

rolled running we're up, -- really since and are our excited, sleeves hit the and ground So closed. we're we've we've

Craig Schmidt

the mark square feet ABRs $XXX or And are leases, those of signed near just the $XX? XX,XXX the

Brian Harper

between, the right, let's the are near $XXX. There memory are in a some center, me second-level variety are back of $XX, bumps. if some kind it, contractual serves $XX, call the of in with of They're -- They're space.

good very healthy So and antidote really around that reps. not but a

Craig Schmidt

read, driven Was wondering there previous $XXX.X difference rate that that traded between some the cap NOI was it accompanied I'm I just mainly that? was then million. growth? Or the compression by the And Super. and just Brickell, $XXX million.

Brian Harper

merchandising think just sure, particularly X.X% NOI Vacancy markets in was is the I'm community. owner is so previous Craig, a it rate of of, -- and nice that bit cap and compression being with. by demand. the did Brickell here, also given a job mostly this curation in I and Obviously, little did growth only rate

just remarks there's and the like And us this rents marquee really massive of prepared elevate deal a demand minimize is said So I CapEx help and spaces. and I urban on demand. my our what really street where more in really and access supply

Craig Schmidt

see the guess have finally, going I to of -- Is lux, a Yes. after? them a Center do more And you City Brickell much of then just competitor you're more goods that tenants focus. type seems

Brian Harper

different. Completely urban, very really serves is the huge that's as oasis No. really, community-driven. This This heavily undergoing heart landscaped. is growth. an of in city very this This

large dwell a for time service really we our So community.

of average X.X I over think hours it's dwell. roughly a little

mall well. completely is different enclosed well an feel city and as doing at So tenancy extremely than mall that but center,

Operator

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

Floris Van Dijkum

count did retail the a -- guys wondering, Bernstein street give I'm -- to of slipped drink Ken you benefits here? you

Brian Harper

a nice And to very they obviously. retailers No, we speak do -- Floris. job, us,

with relationships like deep the we're relationships Retailers to You these to our point with but retailers. the our heads know acquisitions. how point use acquisitions of smart, We're are retailers. not in us We this. us them to

off So Brookline see in of we're the ring excited, another first can the and future. heels deal in Boston more

Floris Van Dijkum

that. to going to I was Yes. get

but finish up was lot actually on a There's the of thinking there. center. vacancy, It's nice-looking obviously, -- So me a I've recently actually, that's Brickell. let just being filled.

The where the on street sides believe where very they the side over bulk the they of sit the rights, the or Miami east sites center both that's is are on well rights, of I which Ave. as air your is, existing is west So The side? encouraging. South air the on of Publix are

Brian Harper

and of both are street. The X.X east million which allowable X side square the on both feet parcels, square including west sides of entire on the whole footage is the the acres,

Floris Van Dijkum

So it's both.

Okay.

this, most there filled I'm down can would can about place where of you you the Or out. thinking it years existing you you being have I stuff? So about just take seemed road. build you talked know But -- this down require already is in it that and Or X the the is like top are on structure space things? of to --

buildings? you require existing to does down take So it

Brian Harper

the begin some only that's initial foot. of and in again, on little go the we're a a with residential demand residential bit been plans. down. buildings developer X street value a can square It construction in require frankly. lot to going obviously getting road in office even working just a and It's A create of given with that away, embark that's better for just on would working for But of creation years for we'll a that, square where demand the we -- both, the X top frankly, down top which or $XXX foot concept But the that's office. years XXX,XXX would signed across building, market, tenant that's a new

really of curation are But we this of kind bullish. So on and embarking our right lease, asset. and lease, remerchandising focus the is the lease now,

Floris Van Dijkum

assets, Columbus, were Maybe All the to to assets right. also the the contributive the think, that touch Great. X JVs. -- I your upon on Detroit rates -- cap contributed if you and

Mike Fitzmaurice

on kind in cap point, for this It company comment you small -- acquired tell reasons. will and look to as a what I asset outsized what variety Boston, funded the this here basis. neutral in recently, was Portsmouth assets you on rates or going of we buying will over an X we of remarks, in growthier-type that Florida year the absolutely support then the contributions, I'm growth in I Detroit, years. Yes. Detroit; against But At and that asset prepared of Chicago, Mary perspective, Ohio; across mentioned then if sold. coming not And my mention dispositions a Floris, did we're in in X the think Brickell IRR we a all my that in from

Floris Van Dijkum

mean, street And the we of then Brookline, one, more of one briefly. Or asset? it small what's retail, retail the I these touched you of having expect $X I things? mean, small acquisition upon maybe last benefit can just million.

Brian Harper

portfolio The a value is or consolidating submarkets creating that. and that around submarket in

in unlevered mark-to-market demand. returns. it's It's lot mom-and-pop ABR the asset highest low lot Starbucks owners huge of particular where and with on of a our capital, existing, the in think again, the top a use So had, so place. tenant highest best That region,

core at it's markets. same time, business the we to investment But our other we're opportunities compared So that a across like. evaluating

Floris Van Dijkum

not either be you correct? if surprised kinds more of be [units]. Brookline not would or neighboring we -- should it acquisitions, Would the of to that have be Newton of some in these were But or

Brian Harper

the correct. unlevered Yes. returns absolutely. If That's there, -- are the

Operator

question of from the from is Zhang next JPMorgan. Hong line Our

Hongliang Zhang

talk trajectory little but occupancy the XX%, about target? be relatively of I think occupancy for will long-term the a when of you target laid XX%, hit and that you'll year. you remainder of growth occupancy you it bit a think out Could stable the sounds like

Mike Fitzmaurice

the several spaces plan Yes. over in like, remerchandising where taking tenancy on Yes, connection double-digit our the last and tenancy the job on telegraphed did that, yields. we we're and several And of our essential improving of this team is fantastic those centers business Yes. in each at doing a focused quarters, grocery upgrading back really as the initiatives, we at year with tenancies. more

then. in that's of going when And is lease target seeing of pleased then XX% were than by is where have XX% would leased, did very just of the year, we of which that say, north which the in number. a of be Today, couple see mid-XXs we that XXXX, our we're 'XX you 'XX that XX%, term. better shop date, up. And effort. long you'll get And the late much pathway lease at be terms the at, hope with XX%, portfolio I the to largely the the we we small So rate the driven gives we'll directional end to of into percent a shy a and over start we end by at to

number frame. that time 'XX/'XX XX%, his turned and in will prepared that the over same remarked frame believe portfolio, probably to as remarks As in that Brian XX% time, we've time of over the about XX% we get

Hongliang Zhang

And year. fit there contributed could Got criteria point properties curiosity, time other later in any that a potentially out contributing venture this grocery-anchored as at that the so Are later the be two joint assets you're of well? it. to

Brian Harper

Sure. accretive -- sheet I where go would can Sure. And most proceeds likely the contributions an think grow will then the mean, to we in I balance manner.

we unique accretive to could a the platforms and capital is company. partnership So the is the again, cost instrument, our this there, venture appropriate extract when for that a look unique yield of not

Operator

from Jefferies. from comes question next Our Linda of line Tsai the

Linda Tsai

you off-line have the you the all to of guidance. and occupancy the like earnings a with didn't had coming Does It quarter, in quarter impact Brickell? second seems Why with execution on you fronts it or raise guidance, solid increased NOI do too? Mary same-store

Mike Fitzmaurice

Not The No. recaptures both all. those over at embedded the planned set guidance No, all. the transactions. I not our mean, Brickell at within Mary is all year. and

of lifting as far year, the at time. in cautious we're the point uncertain environment. just an guidance part this in As think remaining of I not sort

So it. feel we're now. to where good going we're We pretty about right sit at

Linda Tsai

relative of trophy assets Brickell At then in you you the Missouri, overall given those of years, three average about of look how portfolio. realize a considered is think which few to But over And with kind the JV-ed today? you've But time, in the were if I your it. do Got quality the Florida, GIC, are original past in those in at assets Mary one changes quality asset. the one made you Michigan. that

Brian Harper

a improved assets, of tremendously. original medical use large the one that referenced redeveloped a Boca online is that's here flagship Creek, signed doing Crossroads, next believe, we've will the Publix come be remerchandising The I adding Coral leased. efforts them Mike Publix into done that with very, In we've greatly year. Raton, leasing, where From amount well-known Mission of Beach, is Bay, phenomenal shortly. and we're a being sales. Palm very Publix XX% in will that

signed HomeGoods. just a that to Steinmart with where this shop great we go with Chase a signed -- & leasing. deals We lease did at replaced next with We've bought a with We signed Athleta job rent spreads. done lease a we small have huge of week leases Town opened with ungodly and we REI Sephora, done Country, got box. to

higher market them healthy, that's Orchard, Louis. really tenant no sales that just that that from the at getting be strong X with and to periodically Old options Market, a And then higher for in really grocer. a with Plum So rents. or we've of replacing St. curated end renewal significantly property wealthy consumer And CAGR good been been at

each with been the results So not those of assets. flows extremely of have speaking for seating the our assets and partner, of that the the happy improved we've cash original credits of and

Operator

President, CEO the session. question-and-answer have turn to Mr. to remarks. L. would Harper, I for call like now Ladies the Brian reached and we end of the And and back gentlemen, closing

Brian Harper

Thank you, operator.

So given rapid our quarter business. another macro the one rise inflation, second was environment active remain RPT. about cautious in And optimistic about are the for and rates the although we we

all improvements reflective proactive while competitive performance of Combined our the believe with observable the a portfolio we for in are advantages. of Thank wonderful that perform very joint strong past liability cash our excited flows Have Our of the the call. over in about taken few management, venture well that has with a environment as us joining to place RPT the is dramatic is platforms future. our any providing result and you quality day. this years, are positioned reshaping

Operator

Thank Thank you conference concluded. RPT your of you. for participation. Realty The has now

disconnect now may You lines. your

RPT Realty (KIM+N) 6 Aug 222022 Q2 Earnings call transcript