RPT - Earnings call 1 2023

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Operator

Greetings, and welcome to the RPT Realty First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Craig Benigno, Senior Analyst, Investor Relations. Thank you, sir.

You may begin.

Craig Benigno

you Conference us Call. thank Quarter RPT's and Earnings XXXX morning, for for joining First 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

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

based annual fiscal in factors Although these reasonable we first report on ended expectations could differ the and year believe to for the quarter XX, XXXX, XXXX. cause December our of Certain are our factors Form that XX-K described and any from reflected forward-looking actual in expectations. results as statements are risk the for earnings assumptions, risks in on release factors

directed measures. to definitions available section. first non-GAAP website statements GAAP which our also includes measures are of call these made which and measures Investors XXXX nearest release, in on quarter reconciliations and Listeners today's of financial Certain the on press non-GAAP to the these involve are financial our

earnings our throughout messages which for Lastly, we are the to highlight this quarter, introducing we reference quarter. call will presentation, the key

the quarter section. find our Investors XXXX first the can website You earnings presentation in on

Fitzmaurice, call the turn Harper; call opening President their Mike questions. to the now after CFO, will to over which, and like would for for open I and remarks, Brian we CEO,

Brian Harper

today. you joining call morning, Good thank Thanks, for and Craig. our

activity new spreads concepts our all on over quarter locations. substantial and signed by strength of our and continue of about on where strong environment, backfilling consecutive re-leasing leasing XX%, compelling feet square experience highlighted demand have Bath to We activity, XXX,XXX we Bed of in the progress third

have their boxes bankruptcy alpha plans Bed mentioned for treating of prior some ways, our to on well as filing. we the worked re-leasing we hospitality active, the Bath and earnings have as As our needs day-to-day ahead industry, on results. like hands-on, time management to vacant operational call, been In some sector, drive

approach, and create significant at sales with we proactive value our more stronger better our with tenants relevance higher credit, we rent, consumer. Given top-tier can believe

with the locations, us downtime. a across country backfills engaged which and several on have CapEx head single We start retailers these user giving about substantial with limits tenants,

we XX%. XX% for are by lowest the rents $XX.XX in in-place about Our at near which our Bed expect grow to Bath per square industry to foot,

leases X of HomeGoods spread our mark-to-market At lease in & XX%, we and the had have tenants, national then, we at highlighted by Marketplace end nearly released of Since buybuy to Bed X BABY. XXXX, Florida. Beyond a Beyond & of City capturing Bath X Bath strong River locations our Bed

XXXX X XXXX. deals minimal the other the these surprising on industrial deal akin rent commence executing the on is to on Expected in expected we the the sizable mark-to-market on downtime spread to the and quarter While second it in the quarter fourth XX% for been deals last with is and HomeGoods of years. have story given is not spreads, communicating and several

new beauty, quality off-price, and health larger merchandise, home our includes demand Additionally, of part rent a general active as between redevelopment and spread are we The sporting that at supply of are or broad-based is considered other grocers, driving X which to XX% LOIs and plan. goods discussions being negotiating are locations a weighted XX% tenant leases on on lack of X medical average tenants. X in improvement, exposures, remaining

Bath for for the all additional in Slide and Please remaining earnings Bed get Given next our see buybuy exposure. leases this XX demand, the signed In Bath locations. back. our the we expect in to we presentation months event have spaces details Bed about few

having is Co-Head JLL In happy Investments experience, of Capital transactions brings of York and a a as of estate community based office. served of office years at announce to our the in appointment and brings network Managing fit at proven record Amy respected Chicago Director, and real last the Senior March, Sands New Markets. known were deep Executive cultural City a President as XX we great will Head track be and over well and Amy Amy RPT. the well Vice within

we see billion consolidated investments committed efficiencies between capital of the joint our under are of $X.X platforms, deploy team her to With X our to venture now excited leadership.

ABR fourth I Miami, our which X% market. would our and a represents of to now to largest highlight like is moment take

actively to due We the expanding growth incredible is Miami have been the our area presence experiencing. in

spread a leased-to-occupied the expansion. shopping over opportunity provides a the just in one further in basis path capitalize public largest points are XX% It's in at market owners XX% the fastest-growing clear unique to on Miami center space. of to increase one XXX the of And the Our an in X% years, leased, X XXXX. rents past we have including up of country, where the markets REIT

replacing to facility, we Mission highlight X in in on Boca Plaza Bay rated portfolio presentation. rent. have of that our we Raton, no Health, Slide Baptist which XX a AA- Miami credit older earnings Office Over health a with were our At been last we the Depot replaced years, leases care former paying little

a a $X lease to grocer A finalizing foot Save rent. with was square a per are replace market that dominant Lot in we paying Additionally,

with the a lease in to Winn-Dixie per in foot. had XX We was that are leading years also been retailer $X.XX for replace over and paying portfolio a negotiations square

close equates meaningful Slides bullish presentation market foot. with rest into opportunity about XXXX for per See in and recognized on to Miami be an beyond. and details and and side at why restaurant the to we so a there. are XX% On the Florida opportunity we spread, older for Miami concept XX replacing internal are mark-to-market driver to a the our this the restaurant which our of context a of and will ABR XX small nationally it our growth $XX in portfolio, earnings more shop near-term an put to square

is crown The Brickell our Mary of jewel Miami Village. portfolio

real great a buy at great estate simple: in was we value thesis investment well. know Our market

to shape plans of form in the beginning value redevelopment that opportunity near Western the unlock will Our embedded to parcel in mark-to-market term. the of the realize a phased we take this are

the occupancy, foot, MBV. is a significant which XX% cost XX% to Today, since bought are future the XXXX, asset center occupied, nearly up $X,XXX mark-to-market of Sales from square upside summer. XX% X% the equates when low of reflective last per at we over up

The mix allow level that the highest maximize will challenge filling tenants generate optimal to It's the curating rents. here sales of and is not us vacancy. of

and retailers, good international top wellness, groups. targeting food beverage, services are restaurant We soft and best-in-class including

And We which the drive are existing clearly our Fundamentals our in-place tenants expect in to initial are per underwrote. at underwriting $XXX foot expectations. IRRs $XX $XX we active rents range, initially rents negotiations now of points rent to in per to blended are exceeding foot several we our square range. compares that hundred basis square and with unlevered in new the better and $XXX than

Longer term, of our densification plans include a mixed-use parcel. the vertical Eastern

a to unlock been site. evaluate our the working with air vision top-tier the our on We architect densification above and to options have continue

and years double away, digits. XX While this maximize into earnings and for on color MBV. to is a unlevered an shareholders understand Slides the IRR value evaluate with of on for an our creating are well we our now of plans to See the our timing opportunity options few additional XX eye the time spending specific at presentation

With that, I'll turn the to Mike. call over

Michael Fitzmaurice

recession a rate management. Brian, potential and the filings, Thanks, serve as of everyone. importance sheet the elevated Recent morning, concerns environment, disciplined good and of tenant reminders of bankruptcy balance

continue we controllables. proactive to front, be control the this On and

Our our EBITDA. floating until investment-grade to net continuing and about towards debt target with tied level only to debt is position rates, of balance the debt $XXX no leverage of a XXXX, of tick Xx rated million of X% liquidity, sheet to adjusted in down strength our maturing

for collection in rent earnings as movements offsetting and share income was on our growth ahead Turning lower after to quarter quarter versus XX the slightly well Operating of of adjusting highlighted per quarter rent of by first fueled our due Same-property base for quarter X% primarily rental $X.XX ahead at and G&A. growth to presentation. the probable NOI last $X.XX not accounting for X.X%, in of base FFO Slide some plan plan came up internal between results.

signed $X.X million, covering of In commenced approximately the about which square quarter, XXX,XXX we first feet, signed of equates balance not leases first to X% resulting a in NOI. quarter

million last gross offset Our million SNO versus was leasing schedule, by slightly new $X activity. partially of almost quarter pipeline as down $X.X rent we opened on of

trajectory of our The pipeline FFO add annualized Slide will an SNO X tenants high-quality by additional upside. largely of earnings benefit per is grocer for that discount $X.XX operating see we of and the share incremental on expect details presentation of Please comprised XXXX. our of

LOI rate, up robust negotiation. as leased pipeline in portfolio. basis leasing $XX quarter million our be focus same-property rate you same-property plus or We Our the of ended a on with the with encourage continues assess to I lease our strong lease year-over-year. quality you XX.X% to points XXX

portfolio. space impacting being is occupancy recapturing tactically aggregate temporarily one, are active at rates that properties prepared our substantial for X We in or are for redevelopment and our which leased

incremental that in to and older to XX% or demolished the rent a store sales a brand-new Publix year Publix growth. year, of we open representing the this smaller, flagship GLA market, Crossroads feet XX,XXX set Miami and square expect At are property last drive later we

investment-grade asset in Florida, we a last recaptured active feet previously a year that of to and backfill. are XX,XXX leased Beach Additionally, mid with in an was the proactively at tenant Delray or grocer GLA center our as square XX% discussions national rated below-average

redeveloped. our purposely to this Michigan, XX% quarter during square we first at Square In be about the County, feet GLA or of center Oakland the XXX,XXX Hunter's asset, year recaptured

top-tier quarters. on a projects We forward We in are the Hunter's grocer discussions more to our Class active coming X retailers. sharing look details in national and and with A Delray

over continue the XX-month in XX% quarter XX% below-market trailing the also on spread the rents, achieving the during up the our first to basis. respectively. X% on spreads a and we During and and leases benefits XX improved a quarter, X% quarter, to rent new months of also Renewal trailing were realize

rent leases has particularly Since on near-term and slowdown, no of mid-XXXX, light averaged we in new XX%, Bed our opportunity. spread the Bath see

escalators will with averaging over X% high-quality as portfolio. time. over the We contractual new contribute profile rising to growth our drive growth leases and of These on benefits XX last sustainable rent the we a realize also NOI escalators continue months to

as our during FFO and playing operating and range Given well basis operating NOI debt basis XXX expected, as are first rent comprised bankruptcy as $X.XX share of reserve Bed of out guidance to the NOI, maintaining Regal an roughly typical $X.XX guidance of primarily X.XX%. midpoint XX points expectation property diluted the XXX our our quarter Bath for totaling points to which we same of environment additional per bad our bankruptcies, X.X% to Beyond. per FFO tied assume is basis growth continues The and of share diluted lost to our outperformance with of points of &

Our We end decelerate of half second back the buybuy NOI Beyond contemplates FFO signed all operating same-property & & our the from BABY to tenants and by Beyond locations in commenced in operating the Bed expect we Bath but Bath as to pay Bed recapture rent. and not that we same-property range as open recapture space NOI and remaining our quarter FFO begin to reaccelerate and July. do our

will I questions. operator to to And back call line open for with that, the the turn the

Operator

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

Derek Johnston

Beyond are details on but the in how progressing? obviously touched opening remarks, here would other a be additional the I helpful. it's Bath any & point since concern Brian, of briefly Bed know X it backfills you

Brian Harper

Derek. Thanks, Sure.

start X, other those let So with those. me

those, very higher it, constrained We vacancy have environment. back in leases out spreads, to is as XX% rare XX% really of opportunity get significant This under-market supply I at a majority a call to XX% said, on the leases limited rent.

-- well quarter months more pleased This Those proactive we of leasing and very execution XX first less the than much well highlighted team's HomeGoods with resulted only XXXX, to move which could than I'm openings. having less months. than in second really approach. is quarter downtime, our X RCDs, earlier

us In this have to cases, see to X vacant no approach for some at allowed box. We many boxes LOIs one centers. of too, literally X these

majority the users, single said, less means and So are less CapEx. I which these downtime as of

Whole the the where X-anchor users, leases. first other the I I there in But doing center. Lane. foot. about Foods talked X square a Shops think on It's at exploring is really X -- non-single is we're shopping a X $X,XXX

Small shop command triple net. here rents $XX

So F&B we value and could significant retailers. have divide coming we creation. that enormous have And service-orientated from and demand athleisure,

We Nashville. been controls a and of part be Bed play, Bellevue this as bought you than in could box. always the is was Bath for which This larger land has second, a covered the development, worth. recall, asset And in the largest land 'XX, in less here

get we we on are for the and land back. Residential should through So roof, that. demand opportunities is that exploring adjacent

Derek Johnston

actually. private it's spread? to markets private are gears, been tightening helpful, just and Fed see wanted volumes of the we looking bid-ask guys historically. a you but the close ground? up the this what active to wide very how And markets? and are you you in I maybe on And year I'm have That's And slow, seeing thinking so you switch been Or event? do with pause, pretty the pick are anything seeing at a that's And likely

Brian Harper

and with we're of any think think Fed pause, Bath, vacancies. We Yes, hinting not with selling be around do I going see a the and yesterday certainty a Bed I to at more and those of higher market growth year, a now, do were volume see the half acquisition boxes enormous But from large. if in to back much beyond. I I at guess 'XX more

have is would hit these yields best double-digit for I portfolio for beneficiary. putting all will highest 'XX really a They now mostly say anywhere towards lease. And under-market -- capital our that. focused our right capital we on lease, lease, be we're any We really where get can't use major allocation, near single else. RPT an

see number. have RGMZ. Second fees. of of and a money I more we returns in a and could is already and look small RGMZ Monarch love us to position very this have large a right the We of opportunity. do playing pref a venture the mezz amount on more those Zimmer the focus. pref And still in with with could That's and it's love our if We

Operator

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

Todd Thomas

last comments boxes at Brian, Bath. to that characterized Bed just around you And back XX%. quarter, mark-to-market Bath the made around of circle think on some re-leasing the the I wanted to you I Bed

XX% projecting filed now you're and, Bath that to that and Now guess, sort improving timeline sign actually anticipating, rents you're XX%. in, getting to changed leases retailers the Bed has replacement at and demand all? are they of I Is that the

Brian Harper

The certainty, resources pricing and put changed. rent's and I With to -- use. mean, me let time There's the are now on Yes. legal design on money has their higher. retailers more spending to demand. costs

a opening really that, That process year. this Let really it last way vacant getting going me really talk vacancy for the approach. mid without we starting that like 'XX. to -- we greatly about to you're That's the started time. is late tenants really If of 'XX until treating proactive impact do didn't not

So quarter as is timeline proactive asset our based projected, and is the we than much last approach. on higher just same rent management

Todd Thomas

a Or these see are some competition you're interested can competitions you where about the lot bud single-user for for very hearing Are much backfills, these of boxes? it we're spaces? guess starting single-tenant you characterize you're up process that retailer? competition you Okay. seeing really I or Is one surgical mostly competition a seeing? they backfills. -- And there's how sort about are and talking to

Brian Harper

the do It's merchandising highest rent? And as rest sales too. time, focused the all market. it's to get the the performance, bidding I say in just tension to the How with the not bidder. leasing the you credit, rent, highest getting center. higher And the is This on we're credit, obviously, team of

LOIs City you give asking Center, center, But you X had in box. you X. And the interest that only -- then X I for one vacancy Midwest within about still But some of of in LOIs, had box had River amount vacancy, enormous the only can for cases that and specific that. Florida, box, X examples.

So users Bed lot or of And performance higher signed I given grade. not users, are retailers names, X think just permission as household names box. this sales these X this coming is allowed obviously do a for say which they'll multiple we're already, investment they're leases than to we've many And Bath. the by

Todd Thomas

And look quarter exposure guess of the Bed of see you been Okay. any since additional the some activity boxes recaptured exposure Bath. the of supp signed on I the leases what’s as like? end the so the The we just of look financial end that one if last and there, -- after has to space that today or then? XX the March in we your subsequent quarter in there then change you've terms

Michael Fitzmaurice

today. we Yes. year here The quick it's are we I'll sit back Todd, lower, answer, it it so as bring where but last bridge and to at

the we X 'XX, at It locations, of Bath to equates about X.X% Bed rents. had were So X our XX end of buybuys. were concept,

One captured national quarter, and is redevelopment And larger to, retailer. other re-leased part already then alluded Baths. the the we Brian the one to X Bed we've first that during of a

in has the release re-leased to quarter captured Subsequent highlighted the to already in location that additional the night. April, that end we HomeGoods been we've an last

we have today, So of are buybuys. them X locations, X

We part signed that do mentioned more national locations, expect one to then of another the recapture and large other already redevelopment, to Brian that tenant. is one one the X

sit So locations of and as ABR. we'll only with left X.X% today, about here X we be

Todd Thomas

discuss All in little around and helpful. then terms And bit today? Delray, a anticipating? anticipating Hunter's right. run the talk scope That's And can redevelopments what for in how frame more projects the dilution rate for are you're you Square Great. incremental Marketplace those much of cost time and what's the beyond you and and of also those

Michael Fitzmaurice

start, All dilution I'll the Todd. occurred. Sure.

feet the we Winn-Dixie about last it then the recaptured XXX,XXX quarter. So we year, Delray had old square during at at first all. We and captured Hunter's

and redevelop those expect get projects dilution we will both as incrementally It all those forward. from leases should more be you as no centers. move So signed X we positive

Brian Harper

trying got those many say And Delray, with like tenants of since I to here, buy to been I've especially I've want out.

on both all here. is this proactive parts so And

up Hunter's, project coming the we'll give in soon and costs you Delray next supplemental. So

good. call good. demand in and tenant a tenant LOI. are you have At Yields then pretty type, off-price, lease another in grocery, LOI of and tenant, credit it, with large XXX,XXX retail The a Hunter's, negotiating is a lease feet square Delray national with marquee

retailers NOI and the thriving market. $XX in really we're was mall it's now So that and old one in Hunter's and creation remerchandise both about years are into XX power incremental replace at that's in into Delray, really a really considering environment. ABR converted excited value sitting And a the to assets, today's was that that time center. And asset

back later with clear at cost on our in that So numbers a date, we'll to and get provide yields you supp.

Operator

question Our line of St. next comes the Haendel from

Mizuho. with Juste

Ravi Vaidya

Ravi This look wanted where is you I one CapEx up? broader up at more to more comment Bed backfill on single requirements particularly Bath. redevelopment when line the just spend Haendel. required you Vaidya on the the cutting and the TI for re-lease boxes, Can or to you're a here follow on it

Brian Harper

it, Yes. really a the do minimal varies from cutting And I $XXX. users Lane. only the you're I focus -- mean, is really up. And we're this on it call way CapEx that looking going and really cutting up, the Shops to, between very to on single it

of for have not square lot XXX,XXX estate. interest a You of feet square for real XX,XXX feet

that users will significant number would are the and single not, a we boxes, the that divide box, Lane be that if yield or So down to is. of if at proceed as take route box go the there

on this the box $XXX, really tenant. $X think to and So depending I as would of

Ravi Vaidya

quarter within for going dynamics of than on More renewals where markets? your proportionate you leases a Can renewals. your this XX% supply-demand can as were helpful. we leases? rate they're And expect run the total broader That's forward, this it. Got comment

Brian Harper

our the this Obviously, on have asking SNO It's me one. thanks Let robust. Leasing is for pipeline end an question. peer set. we higher of in important significant a --

$XX of million We pipeline with have legal. the in $XX million that approximately already in

they're feet, is new of spreads are nature investment that a of really portfolio we've majority grade. footage XXX,XXX leases extremely national printing, and Square tenants, square of and is to sizable what most for high-quality size which similar being The ours. been

grocery, and from improvement home off-price, gamut the run F&B. Categories

So it's a robust pipeline.

is extremely foot's window is the knowing leasing and in where gas. back at our environment. this wind producing X a Our focused, that are days and on a week, Legal this

Michael Fitzmaurice

your to quarter-to-quarter question leases. forward look percentage of renewals as Look, percentage business. a we're the our we total as around Ravi, a And not of

So at times. it's going to certain be choppy

the that well very I recaptures to Bath year, to consistent last what how that transformation some which in the we will we the given be we're last environment on the Bed to supply years. absent we north of we're that of performed tell the that And plus is portfolio quality But this expect currently have XX% we going retention expect year. constrained is given you the X that over continue, today ratio,

fully get that we potentially XX% grow 'XX. expect So out into we as then 'XX,

Operator

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

Floris Gerbrand van Dijkum

X balance it's -- comment the on not Well, no you here maturing to the years. much debt sheet got because next for

the a change relative some that's So nice companies. to other of

to new Most leasing Wanted to ] that a your a I Bed Bath by retention. were into is the impacted was costs delve $XXX re-tenanting. noticed the costs bit. little new [ Presumably $XXX of leasing your up foot. leases square

think cost, about portfolio that come should how we could increases? So the again, but lease as lower down capital forward? going And new occupancy obviously,

Brian Harper

Yes. greatly the in sales that square at And at or a the City. we foot. ecosystem. per best Maxx change, they're -- has think we was the retailer deals. T.J. improved our That's City, which River didn't River where use HomeGoods is $XXX didn't that their Jacksonville. Obviously, should asset credit it in quality of that's deal a dominant I have a I And say, really, probably

costs think that XXX on going but this X could spreads as over the do to XX%. down are, range time. Bed you And of wide it's quarter, saw I the Bath backfills, come be to

square So feet think the mid-tier boxes so small I think or XX,XXX I the moderate. some will of more shop, at

tell can there's space. one you, -- even where there's like this not just Brickell, at I is no And

a and TA space in it's the which only well when are space, foot. when It's rent we're a so discussion, up discussion. curating not And $XXX the square the comes a

as well. the there, have So substantially down underwriting for come costs

Michael Fitzmaurice

year, CapEx to Yes. tied next the is Floris, I SNO. most spend this year and our mean, of

down a here. spend So come 'XX. make but we have bit to you expect heightened, it's to to And that money fully be in money got going to

but really year. ] making Bed 'XX. not [ next of coming in growth also commenced returns really, can to We had lead portfolio, our opportunities the deals, these and other within nice We're 'XX Bath which on really lot signed online a from better $X.XX

if NOI I what then at of you next and look I over the same-property same-property you re-leasing profile years, growth be coming just rent mean, ] spreads. looking X% we're basis the [ couple have at points mean, should contractual rerated. from NOI, it least increase to XXX

So cruise we're is -- to use your speed up. coming words, our

Brian Harper

$X.XX too that's -- million new deals, with And That without legal, extremely I'll feet which without $XX in. of is in is add is which square the XXX,XXX sizable. robust

Floris Gerbrand van Dijkum

[ question, very follow-up Maybe the guys details. put out more by you strong. information and ] Brickell a tenant Obviously, some there as Mary on are I sales was encouraged

I to if goes to from, obviously, that Curious call upside like sales I math, right X% redevelopment rents our it? of it, -- I about Is $XXX, the investment mean, go without on that to on be a looks would yield those other what the based then and low stuff. mean, way see your the from that to the space tenant shop think to on small rents based as an some purely mid-X% on the mean, if Publix. it But --

Brian Harper

a not would into I at In lot capital. without of unlevered as well this the cost double -- Phase return Phase absolutely. digits X, any Yes, look X, densification.

ninth bringing X in heightening If is a redoing marquee X the and supplemental. bringing future tenth. you in tenth, storefronts, the facing provide this best just reprogramming cost that direct Elevating, ninth Avenue, a the and opportunity flagship the cost in and Miami Phase we'll for look courtyard, and at yields on brands,

higher it's people thought thriving. square we And But underwriting, migration to submarket, a foot. the obviously, when than it's it's mean, $XX I great. and businesses at the much just really of

out, when a sales take XXXX you And and the and to enormous. at $X,XXX look from a change that's $X,XXX, -- Publix productivity square Publix this mean, foot. mid-XXXs you X,XXX from I at square today, you're foot includes

comps You XX% higher. have restaurant year-over-year XX%, at

can't in I the this because So that people, events I tailwind is in, more bodies, is Brickell thing part income numbers in more marketing you there out signage think businesses, one will really digital not be is the and more a and submarket. And Phase massive which put to place-making the of X. put X and and of too, Floris, This underwrite. ancillary behind is any Phase

a you of hours. over we and company had If us car construct XX pay luxury data, kind $XX,XXX

It's rent more in our some of shop small than a tenants pay year.

a -- So those payback that high-margin a signage marketing of income as great digital just even that we will and and ancillary return. business, see yields a lot higher. that's That's push events and

Floris Gerbrand van Dijkum

kinds I If I California can those digital that. that rights on boards. follow issue up that, about Vegas of particular, with in has some in know zoning communities, an for difficult granting just Las presumably, very are clearly less of

add you fair frontage. of a look But have of because And city of block in terms how presumably, that? -- can you how amount at a does street much -- Miami frontage,

Brian Harper

Yes.

Floris Gerbrand van Dijkum

Only much are X for probably suitable only X but could of probably the sites or there? X, you add How X maybe zone. the

Brian Harper

into It specifics, we'll driver. specifics where awareness a is at to But come is of significant. don't that could Miami market want I date. is commanding later and get lot into digital brand a a be huge a

the mean, America I throughout billboards Miami today. in North some commanding of highest rents are the

in to it's it getting -- I means we're the at later come there, space. out -- are but very threw But we'll with exact not a you speed it's We and it. I'm to opportunity this and date, digital square footage an underwriting by much expert no up back

It's unknown. still an

is with lot There We the are use conversations question to have with do city. in this. for will The this. The will has much. Department be Transportation -- a of allowable how

into specifics, So that. back I'll without with getting to you come

Operator

comes Our line Doykan question of next Lizzy the Bank with America. from of

Elizabeth Yang Doykan

attractive to the situation like redevelopment this on the like comments opportunity your more a land is Or monetizing opportunities peripheral wanted covered back a you're that? more of and go for land you Nashville and see I so How play. recently? in seeing markets to more unique do seeing many with Bellevue opportunities

Brian Harper

-- XXX that in see And late you we million with stabilize had roughly in you XX% XX% or as Group as threw And unique. in interest we the we for for land $X.X of there. will DeBartolo not early 'XX. units contributed It's Jacksonville, saw --

So we say Cincinnatis country. are Austin, throughout our at up Texas from it's there great down I all in Boston throughout Florida, in the people asset the There's Detroits of conversations world. with leading but of certainly way number to all the a resi interest even and broad-based. the would

best the provide shy clarity gun the are on of in for not of puts are we specifically and more opportunities doing use And what's there produce resi what future. and we'll exactly yields. highest So takes to outside

Elizabeth Yang Doykan

had a the renewals. and you cost provide first really for a LC more kind question that on recorded ] $X the TAs Can I or And color on amount that quarter [ in of on just what that function Right. you was just of?

Brian Harper

the Just no renewals, was to renewals. any did TA there -- we provided just

that So with just contributions. was a quarter no

Elizabeth Yang Doykan

on anticipating this again savings for the remind then period with the can of the you Sands year And been cost targeting Okay. consolidation Amy head have just announcement becoming newly the longer and place. investment full us over the to you're of take the time consolidated year you of platform, this maybe

Michael Fitzmaurice

will embedded $X is within grow about range. $X.X which about annualized an it's million. year, guidance million going This it year, And into savings, next our on in basis

Operator

Our of Zhang Hong JPMorgan. next line from question with the comes

Hong Zhang

debt one of expense XXX run the guess quick the in in the guidance? of the for bad was relation points basis first what your is Two I to first ones quarter rate me.

Michael Fitzmaurice

XXX we about debt. Hong. of is be had had year of shy low, basis -- NOI, points -- the the XXX the XXX full -- was bad about the points year. we'd outperformed so, full for We $XXX,XXX continue equates It or estimated which that for to and so We which basis on

you strength look which give again, amount. the quality a Tuesday $XXX,XXX a bit data to Bed $XX,XXX the to the was and at, being great when the low the of is related to of such a rest portfolio, portfolio the But the little cash think Only flows of Bath, assessing point related very of is of understand it's breakdown that important Morning. and of City our reserve I to for $XXX,XXX Party a was to --

And take in we our as it in about Embedded guidance as Bed back back we will rest locations, buybuys the July. accelerate we remaining our take the think all Baths. is of year, including

accelerate. quarter tenants, related But this X to majority little So you the in to the and very note that will the that important I are think at-risk it's number portfolio. again, bankruptcy of that was see those to of the rest amount

Hong Zhang

as Got about would I the that. a Bath for I it points think right, to the assumptions relates Regal math you for basis bit of July bucket? talk guess, tied to do Bed closing account -- other it. if then, And Can about and little bankruptcies, my in in I your that X/X XXX tenants

Michael Fitzmaurice

Yes, yes.

negotiations have Regal leasing and based locations. X we lease currently is believe our working do we on advanced We that fully to expect -- through assume

concessions the there slight XXX have embedded XXX that will rent We in are basis points. -- or

back Also, we're also, then taking have And back locations. too few we're X we Morning Tuesday our Cities. of a that taking Party X

points. basis up the to bridge closes XXX So your that really

Operator

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

Omotayo Okusanya

likely In on could us regards just around the leveraged just work sense kind tend about to of putting just X all most a platforms. kind JV entities higher be specifically to some to again, acquisition put outlook, the platforms platforms they to across those you given how of of where capital you're your of work? you to think And give capital

Brian Harper

again, want Tayo, reemphasize, leasing. leasing, to, leasing, we're just I just

So that's where is capital going. to going a lot our be

direct question Now on let's acquisitions. go to your

the And the next. alpha had up year coming an out centers to that a shopping Really, amount the and that. and space. hopefully, There's investment of from in are put this Yields team by and grades XX% creeping RGMZ, by flows lot amongst triple that's going nets. their be, cash powder XX%, be fund of there's owns to parceling we buying with think disruption

The is that are very grocery, of that hesitant patience given looking is key. the their given at. markets clearly has something signal, very, We're capital we just

edges, bps grocery XX, steady. part, check XX of cap most I rate lot. the but around the not smaller have mean, For deals, the sizes, especially a it's of kind held been expansion,

at TJX most X And cash a center after only And what Northborough, And in that spinning TJX of be the we that X will flow brands. X now, rate I are the combination parcels. cap platforms, really, off I think where the that was XX U.S. yield now bought all the look concepts XX, of which of cap. is with

yields hit would type same of flows opportunistic quality markets, could Northborough. those that that in type cash if investment-grade be So and those have core of with another our we find to

Operator

Our comes Baird. next question Alec from the line with of Feygin

Alec Feygin

Miami are other demand. seeing center I'm highlighted if curious any types tenant strong high seeing are regions that the shopping specific or demand. also guys You But market there is

Brian Harper

Marketplace it I traffic Lakeland up in Nashville, year-over-year. year-over-year. up XX% Florida, Park just but data looking Boston, up year-over-year. I night, It's last Lakeland, really Providence mean, broad-based. was in and Miami, broad. XX% is in XX% Dedham obviously, at in

markets. hand-in-hand tenants goes just of with it those demand in And the

there Obviously, see from which the the world. the absolutely announcements up is shop Florida here. small and in massive some and demand, is love, There's Boston, Cincinnatis the Detroits we demands massive world. ripping of So the both in demand and you'll boxes of

So And it's just demand really that's by top density. is I'm I The where MSAs. in portfolio. not most XX retailers how believer the -- really we you it's broad-brush. is power kind think of the a pricing geography set and have agnostic, up

top where top that's And XXXX, left XX% I markets, market And what we've at XX%, look as markets And with secondary we we've think XX since secondary I growth. rent markets outpace that really think you XX those the sold compare will stuff. to that secondary for all MSAs. can

Alec Feygin

portfolio? on that are list do I other the on watch your Okay. part visibility some How well what tenants the gone? Bed you And are tenants? is, guys on And what's site-level know that now reporting Bath second your specific for the has guess

Brian Harper

hands-on asset mean, active a -- were Yes. managers. I have we very we

local robust the the system the I'm We managers with on where kind local managers have renovations, a tenants very is on national going. tenants, that of speak data speak provide of the and sales, speak

The tenants have you to of as to How do much a to we very managing how approach portfolio a have a visibility? can't New have at -- You you data shop tenants. small like we'd and visibility. look have conversation buy York. out analytic There's have conversation, a

have we provides team an that feedback us. on-the-ground, So asset hands-on to

mean, just any XX-Hour AMCs. everything Thankfully, don't been list. looking people second question we have that at thankfully, we Those of in from we're watch entertainment. I listen, the The markets hearing Fitnesses. concerns. credit their don't have from on are I've any what from And

focused think the expirations volumes I is around outside But well ahead there's well, Tuesday things sales we of to of have lower the don't really But Party Thankfully, where are we where with edges. and lot the there's any near-term a City's those. that. exposure as we're of of and Mornings,

Operator

We to closing back further over I Mr. time. Harper, like have comments. no now questions at for you would the this turn to floor

Brian Harper

Thank you, operator.

the bankruptcies, despite uncertain our levers environment, return sheet has retailer to strengthen believe internal and national macro cash of we select So the growth flows. balance RPT

robust of year vacated backfilling economics confidence by Continued leasing for tenants at that great another be gives troubled company. quickly will XXXX performance and solid of demand spaces our superior record track us the

Looking to day. you a and great Have forward of seeing ICSC NAREIT. many at,

Operator

and gentlemen, Ladies this teleconference. conclude today's does

and you your time. lines have day. participation, a Thank disconnect at this for your wonderful You may

RPT Realty (KIM+N) 4 May 232023 Q1 Earnings call transcript