Kimco Realty (KIM) 10 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

David Bujnicki	Head of Investor Relations
Conor Flynn	Chief Executive Officer
Glenn Cohen	Chief Financial Officer
Ross Cooper	President and Chief Investment Officer
David Jamieson	Chief Operating Officer
Kathleen Thayer	Vice President of Corporate Accounting
Richard Hill	Morgan Stanley
Michael Goldsmith	UBS
Samir Khanal	Evercore ISI
Craig Schmidt	BofA
Juan Sanabria	BMO Capital Markets
Caitlin Burrows	Goldman Sachs
Gregory McGinnis	Scotiabank Global Banking and Markets
Michael Bilerman	Citigroup
Kathleen McConnell	Citigroup
Alexander Goldfarb	Piper Sandler
Floris Van Dijkum	Compass Point Research
Haendel St. Juste	Mizuho Securities
Ki Bin Kim	Truist Securities
Wesley Golladay	Robert W. Baird
Michael Mueller	JPMorgan Chase
Anthony Powell	Barclays Bank
Linda Tsai	Jefferies
Michael Gorman	BTIG
Tamara Fique	Wells Fargo Securities
Christopher Lucas	Capital One Securities

Call transcript

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Operator

Good morning, and welcome to Kimco’s Fourth Quarter 2021 Earnings Conference. All participants will be in a listen only mode [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to David F. Bujnicki, Senior Vice President, Investor Relations and Strategy. Please go ahead.

David Bujnicki

you Kimco’s thank earnings and morning for quarterly joining call. Good Officer; the management during Cooper, includes Investment well CFO; as team executive Officer; Kimco questions of that Chief call Jamieson, President Cohen, Kimco’s Dave participating Chief other Ross The answer as CEO; are on today also the Operating to our call. Kimco’s Conor and our members Glenn team Flynn, available

it projected be is made statements the of address deemed during uncertainties the forward-looking, refer factors. factors. may actual to materially and forward-looking and to As could a reminder, that Please risks such due to Company’s important this course variety that in note differ call Company’s of the statements filings other a results from such those SEC

were certain be management measures our area the Kimco’s operating of During may financial believe investors that, call non-GAAP to call these found in our as we the will if and will technical to turn will website. And can of arises, Also, difficulties, reference make financial Conor. resolve better we non-GAAP possible, as help website. with presentation, measures Relations in results. understand additional need information quickly Investor post over the we try to event that Relations to I the to incur this our Investor Reconciliations

Conor Flynn

results transaction our for Glenn an key on I update year cover Today, our XXXX. the market operating Good the Ross update the merger and us. guidance quarter, earnings thanks will will give recap ahead. our morning, provide joining and an for our for and results for with on and goals fourth will outline strategic Weingarten

first, leasing, is reflected focus performance. second on and strong has priority. our continue execution now been, We leasing our to quarter by be will continue third to as fourth and Leasing,

and growth pricing team programs, that platform abilities, power. procurement our infrastructure worked tenant last resilient to portfolio data a we the be support vacancies, climate retail. in have generate analytics, and to best-in-class is re-leasing platform create when one-of-a-kind economic of when has reason mile favorable. why to utilizes proven future entire attracting simultaneously a quality, omnichannel mile the last It Our tirelessly are that is tough, operators while has shown scale, embraced relationships, This times have been pandemic-induced successful key

XX.X%, Small points and details some is shop XX.X% basis up now for points quarter. basis quarter last Now XX and from XX the to last basis Anchor XX and grew ago. from points XX.X%, rata up ago. quarter from points quarter was a to occupancy XX points year-over-year. Pro year from also a increased basis points occupancy on basis at year and occupancy increased basis up from last XXX XX

continued pricing to power. strong portfolio Our exhibit

in XX.X% solid by spreads renewals spreads, up were on quarter, increase new X.X% X.X deals XXX,XXX strong spreads based couple square feet. leasing million square Overall, to on feet. for combined options. were results. grew based XX.X% of which and the XXX the increased deals our These about as also based X.X our During a covering spreads for things renewals comprised illustrated XXX and nearly note X.X% healthy XXX feet. covering on deals on of by options X%, Blended million and fourth leasing square A

push retailer entry First, rents and sales our to by location. pandemic on to the trends spurred barrier increase our suburbanization helped high the supported to efforts

more the restaurants continues to which frequent as is eating from pandemic-induced portfolio grocery stores. driving cooked our to people takeout benefit our Second, are home visits and more trends and meals, work-from-home

As levels. have a of XXXX result counts activity, this exceeded our traffic

to as play retailer. centers role the continue pandemic, in normal shopping post We in expect this trend critical to a continue new omnichannel

non-grocer. U.S. top started annual of nearly shopping grocer. our continues. split from base XX comes and to our over our five-years our in the first versus centers XX/XX grocery-anchored ring have grocery a centers metropolitan of of our When mixed-use coming surrounding XX% this ago, was from Our it annual a we the shopping Today, have rent portfolio that strategy markets a strategy base major rent

successfully our of year, the converted to continued assets, have invest spaces. non-grocery We over grocery new in leases, eight and signed two past which

other the the solidified portfolio who now grocers major six have The with Sunbelt grocery merger we further leases markets. And in dominant backfilled vacated. former our Weingarten complete,

perfect every our into there extent, the increase cash smaller of assumptions. push We happy In were fit addition, a I flow. Weingarten all five-years, to to and we our grocery-anchored our retention Weingarten leasing, for continues redevelopment, fourth am exceeded over results The believe from further underwriting a and centers of next XX% ABR vision, deep dispositions. on report taken with the from was gains, to quarter and our merger a spreads, our from opportunity acquisitions mixed have portfolio be asset portfolio use occupancy combination own strategic rates that leasing to and dive strategic we to the a ahead and

flow. integration. their We new paid in have end the million, our efforts during continue to visibility exceeded really to a ensure for additional mine all complete, services of of the In to we merchandising forecast all ongoing and first approach to $XX margins our last categories. the to consumer outperformance, and savings we believe and by Kimco throughout and can day. good possible. points a and as long-term goods expect a portfolio in a tenants supply best drive that mile combined and to way strengthening and retail flexible this our by proactive through beat to growth existing right we Ultimately, commitment the most traffic enhanced growth entity range we first long-term the deliver the will demonstrated million skipping portfolio With into our ongoing without the leasing all chain quarter will the in across high earnings synergy addition, We in full the demand we at cash of into (Ph) strong that and the momentum, be XXXX. In attracting that want to have contributions creation. remain thank employees [curating] resulting off, the closing, see I that our is generate seamless to the convenient way continue $XX committed value plug including integration and for mix

Now I will Ross. turn it over to

Ross Cooper

incredibly make and few XXXX a have I our fourth of growth. banner and will conditions Conor, current market platform the good fronts, Today, built on morning, support for positioning year on a Thanks, are our Kimco expectations about future we and everyone. we comments discuss and the will many excited that and then quarter XXXX. activity was

buyout exit. announced our mixed-use structured public-anchored on previous Jamestown of and XXX.XX the investments. Florida to a XX of rata in Kimco valuation Arlington and formation activity outlined XXX-unit level transaction the our Atlanta for The in based new South Signature project, from million, Blackstone’s of to QX acquire the on asset joint ownership previously calls, gross ownership included buyouts of increasing buyout of a with typically ability A in a of from six for in XX% million, the partnership our upon a cycle residential is XXX%. the to the price As XX% earnings the program decides Virginia increased when Series California assets it XXX%. from last the XX/XX ownership look high-quality, partner’s Class deal first partnership the on centers grocery-anchored our subsequent And major a our having XX%. portfolio time benefit mostly BREIT, assets throughout interest this appropriate of increasing Arlington, value XX% came A Buyout venture asset our gross Centro of million, activity two while is to XXX both partnership and pro to the and

own, a While we we aggressive. JV all the remains pricing acquiring sold minority-owned as To remain in assets in our first success for that venture quarter, evaluation. extremely in was air more quarter very had assets our previously that of in market several of interest point, we prudent joint We the assets where fourth several open centers. anticipate and we portions hot selling have few venture retail XXXX joint the didn’t

on Town investment a the adjacent center side, $XX in St. Sprouts-anchored in Florida, investment structured closed Center. to financing a Johns the On million dominant mezzanine Jacksonville, we

with mezzanine As with retain future in return financings, sale, connection prior current achieving double-digit we any while will a in first of a interim. refusal right the

for inception future. the have capital XXXX, late equity returns, in option assets to million and quality our We locations, allocate the criteria demographics structured expect that towards add into assets $XXX preferred investment financing an program selectively tenancy, the and the programs to at of our invested fit the will double-digit Since sponsors. additional and acquire platform each of mezzanine with in we

of All performing as investments are these expected. currently

this reliable, at have proven this into landscape ultra As investment and entered as retail Rent landscape are a competitive, with different retailers buyers predictable flow our XXXX, time year. than interest last relatively today for classify to and has capital I its so abundance that at this with increase pause very crowded The lenders the not of investors are to to transaction in an of in far ready stage. level year market capital bidding modest qualified rates open-air rolls sector. alike, and relevancy the by shoppers with we they would continues undoubtedly any or created equity has put very exists more work.

pension or large, agnostic at external our creates class at exchange science, is non-traded York, the many D.C., we While in challenge seen risk-adjusted it threes. regularly asset competing REITs, when a cases, seeking Florida, investors XXXX when trading opportunities. twos deals for and positive X% on portfolios In the Coast, and of self-storage have life with a illustrate which industry REIT one-off cap rates wonderful growth including who are for and see are return public in Boston, Metro a we assets New consist retail open-air trading are us compared West the and To Charlotte industrial, peers, multifamily, this Buyers point, elsewhere. this to and buyers. on sign funds some

bidding success and from extremely a strategic helps not slightly and yield no There a greater circumstance market, than we fortunate fit there a continue is war. unique that of be or simply to will selective that have this only We higher participating likelihood differentiate acquisition to multiple opportunity environment. perspective of current disciplined Kimco provide further an a is but that a in in investment ensure are to than avenues question

growth, continue such, main structured and pipeline partnership external as buyouts in few source of our XXXX well. investments select to As as through we the will with assets perhaps a work third-party

what towards a year. this for net Depending in the and progress comfortable over our to continues. goal conditions of our us cost on the year ahead happy to to set, towards to expectations as Glenn are the now this see provide guide the pass year estate acquirer on we initially our will and our of results currently ahead. market it capital, investments we we real update you works, Given I’m for and being have of review opportunity financial

Glenn Cohen

morning. NOI growth, Thanks, from a good fourth of Ross, quarter Weingarten results further We quarter loss and improvement XXXX increased same-site from and acquisition. full credit with and produced strong the better-than-expected collections finished occupancy, contribution strong in

per For $X.XX share, or $X.XX quarter, to or the diluted share the fourth of about income million pension includes of plan. NAREIT adjustment per million valuation the and three Weingarten XXX.X related FFO was diluted

fourth NAREIT Excluding the per million. XXX acquisition for by million, FFO FFO Either per $X.XX compares NOI FFO million primarily of been XXX.X or for higher of way, NAREIT share. the XX would driven increase this share contributed the favorably $X.XX diluted which of to was the have Weingarten XXXX. reported The in pension valuation quarter adjustment, diluted

million and was year. were rent NOI debt In to billion from straight-line X.X with resulting of cash primary impacted abatements by expense of interest million FFO quarter compared from receivable, were returning a the which higher fourth basis including the the X.X assumed levels from XX.X last addition, driver, reserved. million, XX accounts acquisition. cash previously of Weingarten to improvements credit collections benefited reserves the loss, pre-pandemic in Higher

tenants portfolio Weingarten In was compared staffing addition, the rents fourth XX% to performance based as quarter to increased quarter expense the XXXX. accrual due to fourth higher operating collected basis levels on bonus year. of and We Company’s the cash last G&A higher support due for the from

of operating and the credit sites fourth loss rents The X.X% from were XX.X% inclusive cash to end the now with at same-site rents, Our base growth XXXX, X.X%. comprise of basis for results of the X.X% The the same-site of improved annualized and drivers first quarter. deliver third the the primary tenants down time. adding quarter continues strong of portfolio the only contributing X.X% for lower abatements, NOI of higher Weingarten growth minimum NOI

provided points. sites XX additional redevelopment an basis addition, In

comprised balance full strong the sheet. billion facility. XXX $X revolving liquidity XXXX of very with of a credit Turning and position, over We our million ended availability cash in to

in In scheduled addition, valued all X.X to our marketable in June Albertsons billion at expire this securities year. investment and restrictions over was of are

company consolidated the would our since this XXXX. and basis, X.X converted share improve times, XXXX, net level X.X times, and bringing lowest if look-through our debt forma year-end metrics was times, of pro the perpetual debt began in Albertsons net basis, to six EBITDA X.X times. As investment a by pro debt-to-EBITDA outstanding stock reported metric the look-through On disclosing to on including venture of below joint cash, were preferred rata these a was

our for Now outlook. XXXX

much on ago, a better strong sheet well-located goods balance open-air services. our everyday continues, effects Consumers its and certain highly continue in our are given shopping portfolio. than centers, frequent we While to of our the diversified which high-quality year and and center necessity-based position offer pandemic a tenants and

Our mind guidance approximately is acquisitions initial based annual in quarters equity from XXX growth positive. range from in million comps Annual outstanding XXXX G&A will or Annual keep preferred the to timing. XXXX, will robust increase. period first equity. real share three A against the million is inclusive or Based improvement represents XXX the of range. million, debt an for due with same-property are the the normalized straight-line Total associated raised No the NAREIT of expenses or expenses on with credit receivable the $X.XX. of we based of the to issuance to anticipated dispositions cash additional from This same the range dividend on guidance XXX the XXX of payout dividend our in to approximately during receivables. loss reinstatement period basis low based obligations. quarterly of assumptions: shares, XXXX charges investment. the of expected XX levels have FFO XX% for income on of NAREIT Board but be collection is basis following NOI and for Albertsons credit attributable on on FFO during of outstanding to common common tenants has repayment the stock and dividends area, expected of No The callable in per $X.XX charges per Please performance XXXX. XXXX of REIT of significant XXX stock prior varying loss estate rent XX.X% monetization a representing redemption to income million. subject timing last net million, an higher or of points no stock $X.XX preferred cash and quarter awards. our XXX prepayment share level ratio of XXXX taxable guidance perpetual XXXX million financing FFO debt accounts early No to

your was associates, progress portfolio, leverage ongoing close metrics. questions. There And year We back, we to we Weingarten successfully Kimco the spreads levels, are on-boarded lot leasing the improved incredibly an positive to proud to is XXXX. a Looking forward produced team We in pandemic. to the on integrated $X thank all fully all year of, despite ready look XXX billion XXXX commitment. made their with another and successful significant and hard occupancy take our be successful work for that, and entire year

David Bujnicki

you take you more one we follow-up line could appropriate to queue. than In I the just efficient caller. and with of welcome question then to today. you make up terms process, a the pretty rejoin Andrew, are Q&A, first the have ask To an decent encourage an

Operator

from Rich Please The is first Morgan questioner Stanley. ahead. go Hill

Richard Hill

morning back guide I good just and NOI positive. wanted Hey guys. little being come a the talk bit to about to guide same-store for of the

out. that and think maybe put some is I of you forecast well some long-term expectations had the that the below even of

be bit a comps to a conservative maybe I you it unpack more maybe a while the provide I appreciate of that appreciate and little more just little elaborate do on and can help so bridge. And us desire comment, and tough bit

Glenn Cohen

Sure, have noise Rich. But is Again, as are is for is of it Glenn. reserves, It a year. expect coming be tough to we of between little because about, the talked the bit how that you the do in we all itself metric doing? positive Hey full aspect credit loss rents the straight-line it, back.

have that. you So

specific So range. it to is really a really a endpoint challenge

it, a but will on it sides a just all feel X% range. NOI out took pinpoint loss of to growth you be where is, If challenging. very today, would both you specific That the somewhere credit to it give is for close same-site range the

However, comfortable and are this it be confident will positive we that year.

Richard Hill

you, Okay. also that. monetization just are noted Albertsons But for wouldn’t regarding But understand. the with debt not maintain what Conor, you into really Albertsons appreciate I allocation I given maybe, this process? the do It at a net in sounds is would including competitive you go and understand you it, good flexibility. recognize your one That like think through is capital your that is question more which debt-to-EBITDA And you deploying could walk are maybe guide. capital just now, maximum about helpful. levels right I assets is, where that monetization? the to When the follow-up want level. a FFO. I that buying And you

Conor Flynn

capital. question. bonds do year. Albertsons of different beauty due that gives the We two for this it investment, the menu a Rich, of to options Thanks, Sure. have utilize The us coming actually

preferreds. callable two have We

our at have the - core been strategy joint the out obviously and script. pref So partners, making. properties have external there well as of in Ross as mezz that we looking as on investments of opportunities venture menu. like piece growth, We buying is at do looking some a We that his outlined

of have spend We a and to do. no There about it. lot leasing is redevelopment doubt

uptick at not have and back only the in last net the want to You I in the existing in where invest wind new retailers and retail leasing say, think continues our seen sweet and that of but to in be are stores. terms store mile really spot in volumes, we the fleet

we menu options. of a have got So great

to year to will that really. investment But Albertsons progresses, We an that as perform. as the additional equity very see that continue feel continues look raise free that almost we will how fortunate to have deploy to we

Richard Hill

guys. Thanks Perfect.

Operator

The next question comes from ahead. Michael UBS. go with Please Goldsmith

Michael Goldsmith

my the re-leasing markets a really coming new Thanks that like they and into be the questions. on is is spread, helpful. for both from renewals. concentrated certain gains, nice in morning. would and Good through dig lot you the the acceleration leases what broad-based, A driving to where were taking were they was really anything on walk Can strength

Ross Cooper

is the point. Sure. broad-based, our of majority the would executed coastal say majority are Jamieson. Yes. but leases It from This Sunbelt XXXX Dave is at substantial leases portfolio our That a is markets. in I came and our that of this

So geographic uptick look in is activity. seeing are when you we a significant concentration, at where that

the retail to of you that really course distribution year, this of quickly pandemic. the In as absorbed terms last has into what Conor brick-and-mortar inventory the is a have no of relatively and it mentioned, is through you the result getting value own have come that utility its of mile come you COVID this ability from seen rents, through online, of our push have new development supply

us that you further supply it drivers so north. with pushing are push helping And that is rents demand these have muted

are very the any in we So I qualify as about quarter. spreads all spreads given comp this deals that the deals encouraged the always by quarter. It are is lumpy. say

does go effect But we does net as costs on the is in go it because It I factors what down. of up. that are rents, well. focused it at when So really look

our X% are We we trailing in at four at we over and quarters QX, up were year-over-year. up look when XX%

factoring to well. me, cost is in is as So are we where better indicator that, a because going that the

Michael Goldsmith

catch-up good helpful. think of has dried the I hit we old-fashioned underlying know, a leasing, that follow-up, demand what about like is drivers the than a That the of is pent-up don’t can we left rather had demand as up been kind we really relevant the as in where point and seeing past? And is,

David Jamieson

to I redefining demand strategy who well of been But that can their to as leaders the store. the is No, and pent-up at continuing retailers their more to They test for you how the have still brick-and-mortar. full-sized continuing think with it you ways find make have to flushing small investments have they format repurpose like their utilize some forefront years Target importantly, the as are to connect is And customer. system. through now how better

that and regional to are think down into players. see you trickle other local I starting then national,

value. You come brands are to The that seeing market appreciating digitally brick-and-mortar customers. are on better margins distribution the native has into the

the XX,XXX a XX,XXX of grocery box, fulfillment So box reinvention seeing you at to accommodate When look square stores, becoming for and/or adjacent are is the space like are to this somewhat you carving people how this within component. store utilizing out the their leasing new in use. of feet

So you to takes the absorb. are time which pent-up demand, beyond still just

box the center, into we consider for utility really new sector. as seeing encouraging open-air of the are I iteration the which is think I next and the move You what shopping

Conor Flynn

Yes.

additional towards as well net that new mile dollars as stores because to I replace more the but quarters, And I a big watch invested last you they to from mile capital anticipate significant hard where focused allocation e-commerce that starting Just going that is add years on to few just next being see think were where a one going will on towards are thing And they is this I prior stores. be probably platform in quarter last you to our are to occur retail. think see the more retail. shift shift start are this shift to really retailers, for you now and and if to the not really existing that dollars is

Michael Goldsmith

very in you luck Thank XXXX. Good much.

Operator

Samir from question comes ISI. next ahead. The with Khanal Evercore go Please

Samir Khanal

everybody. morning good Hey

the additional you talked what we guidance savings assuming I to know here. wanted kind So a Conor, bit guess dig points into overhead but to in I of from XXX are rate about opportunities, of their have occupancy more that I lower. understand time, this just the that just little I’m Weingarten? before, remember terms I from basis about probably at Weingarten’s trying perspective, margins was

to trying opportunities there What is guidance. in today? see portfolio that are in the Just exist what the the baked

Conor Flynn

Yes. Good question.

lower deal. So occupancy we when the have announced the Weingarten portfolio did

frame the announced we level. the the we Kimco’s time up occupancy by actually it when time Within caught closed, occupancy to

that So of we tandem as The and . new go for. to going nice tap sort that some now concepts, savings, about, it, I lean we in network is forward. that side mining my There our to the force size of mentioned be into going markets. as are is earnings are on there of as really are demand reviews the in leasing using targeted forward. continue to ability will script, the our Sunbelt growth that, think mentioned driving the we and above Dave using continue part we range the our coastal robust of strategy to And and across be going our for portfolio the scale, synergy our forward,

We very the have focused been integration. on

ground the have We hit running.

have hasn’t our a of type to there with where any results, As of hit bubble you pause. sort we any like seen been

Pentagon define project, to so continue as running major of mixed-use a on on the buying our focused is redevelopment ground cluster strategy market. We we their assets near out have there D.C. our entitlements and Ross mixed-use and in the that asset projects think mixed-use JV partner the more nice have mentioned side. the there that hit We opportunities well. the on

portfolio. is for levers pull there of a Weingarten number So to the growth from different

and leasing foremost is it. First of the side

is and Second before. JV it obviously mentioned as then buyouts, redevelopment I the side the of

profile of obviously, continues menu going a to shine. is it the So Sunbelt And our growth options nice to forward. help

Samir Khanal

sort And mean terms big my today business? period on that that And XXXX. in in Please rent are Glenn, you active that collect bucket the bucket, is in collections just still could today. tenants is guess how potentially second remind us maybe question, for I those percentage of that what of I of then of prior

Kathleen Thayer

So and Samir, Kathleen, your in will is actually and I jump it answer question.

to right we the course, of had have is of cash now, way ball our about a But I best tenants it a million. I think So think, don’t. wish we we $XX.X crystal at and all reserve look basis

about And about to vacated tenants. seven related relates quarter of it so is our it in deferred of that number, and million receivables then to

So from is. a looking XX.X%, what the when are we reserve narrowing which side. at perspective, with cash And start you that that collections what plus any you the is then down basis is on are on

Glenn Cohen

we I Again, add. just further will anticipating not inside mentioned as that. collections the I guidance, any from are

additive some just So we extent the that of pick up it, we will to it where be to are.

Samir Khanal

Thanks much so guys.

Operator

The next with question go Please Schmidt comes Bank of from ahead. America. Craig

Craig Schmidt

in Thank store off-price The opening. aggressive you. category seems particularly of terms

Kimco portfolio of XXXX?. they I plan are into between these think entering in Ross opening XXX many and I you over the Burlington, on TJX, how stores. wonder if could stores us tell

David Jamieson

Yes.

dollar So stores XXXX, deal of some almost the flow. represented XX% with combined actually in off-price

substantial XXXX. signs that of anticipate encouraged through the pandemic. is been from will expanding And have TJ seeing saw by pushing. has continue So I new Maxx, they markets, would are they the HomeGoods, you all trading are to are They a that really as through that voice Marshalls, off-price demand brands, category. the now T.J. well. they multiple HomeSense which

So of they in Same density are concentration efficient utility of a box. white the greater Burlington see to becoming market a grab footprint. much and their to runway and they more pockets can lot fill that lot Burlington. and the space with They continues of modify also of share.

that have flexibility penetrate more to them them otherwise markets gives been it not So available to may in the past.

the sweet see share where the good they chain, grab I are in appropriate, can, services, them and spot. have continue to think point market they goods is are going appreciating price really mix. have hunt, So treasure a they to they you People merchandise that supply love

good position now. a in right are they So

Craig Schmidt

grocers And Yes. the trying to number been Kimco update to have to been add? portfolio, us give add an can able the you you has grocers on of

David Jamieson

eight of grocery-anchored a converted centers non-grocery deals into grocery in those XXXX, and centers. did we couple We Yes.

across is board expanding, really you In terms as demand, expanding. it of the fresh have market the well. Sprouts’ grocery

looking have Seasons New in deals. to Pacific Northwest do new You

side more on value-oriented Aldi, have expanding. You the

country. grocers Conor’s continuing So point, customers, in They pandemic. some they to that, earlier the were are appreciated have of this about able obviously, to in time structured maybe vogue with week, shops change behavior a more retain does you during at the our across it work-from-home, has home. it scale material when hybrid meal That now, one go-to-work, impact the one a increase

you aggressive. Amazon expand as through. see fairly initiative continue And obviously, I grocery their will think is So to well that and

Craig Schmidt

you. Thank

Operator

The go next question comes from Juan Sanabria ahead. BMO. with Please

Juan Sanabria

the for thanks time. morning, good Hi

talk underlying bit could XXXX to into should the the cadence we trends about spread the year? both be given a how of from guidance expectations you start at and/or a environment XXXX. And little robust hoping for and think expectations looking range you Just occupancy or that

David Jamieson

So this had to post always hold we muted that the at XX. look little jingle Great look that XX to range we about year-over-year. in on look quarter-over-quarter year, Obviously, historically on XX Recession, more we forward. as it rate. XX lumpy we basis of point recovery last are to when is It XXXX, can times. gain you to occupancy, gain the a noticed back And try had point basis back Obviously, the recovery around XX within a a get the back to holiday. going In mill, be we been

of you is strong, are have is But as today. seeing that. course would about. of already sort the talked And demand then So through we the play as year, we out have it that it where to manage you

Juan Sanabria

spreads? on color Any

David Jamieson

a look in category what really and I rent. are a about is is schedule, on XXXX XXXX spreads again, at rollover I say depends when It $XX it before, falls quarterly into lumpy. it What that would that foot basis. on anchor mentioned our you Spreads,

Our on last $XX. signed was average ABR year anchor

And have you to highly to nice in growth on So seeing again, see rents. there a the some are continue well. and is NER, window as that focused we times we where encouraging are

Glenn Cohen

I add, portfolio, a just still, amount of large would as Yes, rents. we below-market have

point, come But Dave’s are pretty those they to the as due, portfolio. they add to considerably So lumpy.

Juan Sanabria

sales on both of of us guys on that. last and/or terms It any color size the joint potential about side? on around in you thinking year my and/or Any and/or question, the dispositions buyouts then seems for those at pricing how And you just potential first give acquisition you hinted quantum half around transactions? it the sales, can the are here particular the just kind opportunity in venture some of

Ross Cooper

a difficult keep it with horizon time very partners, strategy. to each all every our their on one and have mean Yes. We is on contact bit of of I views degrees predict. they close investment varying little in and

are We year we several. year into will which having with don’t this active five-years necessarily or So even ones or future. the know hit conversations next

view on we guidance. maintain what active a So is partners acquisition and conservative several try But tell can our are pretty disposition you I that to today.

fourth we more As minority anticipate and in first a I and joint a of here mentioned, we acquisition on disposition few sold interest already venture the thus far, the own quarter side. do we in and have that couple quarter both the

progresses So active terms we the the what of as will ongoing. year volume but are conversations you update is, there substantial in

Juan Sanabria

you. Thank

Operator

ahead. go Goldman with Burrows Caitlin from Please comes question Sachs. next The

Caitlin Burrows

loss. just Maybe morning. back credit on good a Hi the question

extent basis is Can guidance about bucket? more of how based concern you pre-pandemic what compare through tenants general have is versus XXX on a go unknown years? would this this So a And specific to that to assuming you headwind points.

Glenn Cohen

hard of are is lot points very, strong pandemic have loss, Again, about to so do levels base feel look Caitlin, today. - is an And the take in tenant was able The very would if certainly to in we on, range basis we are they you our I where back we I a good very levels. the we XX because a of say starting the the it pretty that more And went we you pre-pandemic great job again, guidance. basis to But replacing coming we predict collection have probably hit. early of needed certainly then a uplift were And a away approach obviously, that the to And good in away. and to credit will think point. given report the in XXX somewhere XX points pre-pandemic, mean, team year. a side quarter-by-quarter. you from done that, occupancy has just that go low from tenants

that the think point. we So starting is really right

Caitlin Burrows

the you be Okay. was maybe what one I back Got of monetization. then is FFO implications wondering when tax to go kind could it. Albertsons. through And there could a just if

waited, able more not? you to and you avoid time significant have given or what impact in are As the a extent to manage

Glenn Cohen

question. great That is a

test. I the test, year, The gain receipts REIT. we the and today, there investments think in million. stay mentioned XX% the in way previously, absorb as is gross held any given key sell And gross around receipt to that $XXX the I a the could REIT of could a we do

receipts at X.X in somewhere So today standpoint, if we around gross million securities the X.X you of and XXX of on we an would could gains fine. that look it overall company including and billion From range, do we marketable not FFO. billion, are again, be gain, is FFO

that an mind we fall obviously and cash cash guidance not away. sell, is would the that in the on have dividend it baked in whatever come but we is are the would how some earning, issue, impact in utilize would which we Bear that FFO So FFO.

have we of something larger, into has So part That can we have room. Again, that other move the implications. we TRS. investment if strategies tax a also was back

we So the over opportunistic be monitor it we investment and going try time. are and to monetizing as as can and

Caitlin Burrows

you. Okay. Thank

Operator

Next question comes from Scotiabank. Please with McGinniss go ahead. Greg

Greg McGinniss

the entitlements about potential a growth less-important that the we or I think hoping growth to given to how you story development have? projects. quarter-over-quarter kind going to relative talk just aspect which good as about be the Hey should moment, to for continue become already appears pipeline external was adding has a mixed-use you of deliver the But especially projects, for to down morning.

Ross Cooper

are less observation. influence and the strategic the is basis would an two is emphasis side on more I great on obviously broken an development Redevelopment go-forward shift redevelopment a you say on of It our accurate seeing development of categories. into distinct investment ground-up where on question, and redevelopment. Yes. on

big a which focus use being of is repositioning very anchor outparcels; activation second for the to of repositionings, the of retail space. has part core are And retail of It out is and been COVID redevelopments. within mix of center, backbone of XX-years, ours our last adding one our the part really of first the pipeline. that right DNA our and XX, coming that entitlements The now

HQ in SEP, Centre, Amazon Phase have obviously which currently we is under The Milton you construction, Pentagon the can campus that see across the Virginia. the as Arlington, in So II is of

that, residential have is is though, XXX Pointe which is we Square, addition or another part one In Florida; project, in Avery X, well of a do that as Dania Camino South in the to as units. couple so of which the Tower ground leases,

have almost units our under we or through construction, Pentagon at about a structure So either X,XXX joint venture structure. the rounded

future. condition in to continue proceed. what focus on way will to and to market how opportunistic will most the on is, time opportunity see activate and entitled the We those as sort of structure we the some The be of the the projects

going forward. So that focus to is our definitely going where we apply are

Greg McGinniss

growth assets? So do year? give is size future you pipeline as that there size we like future spends in just level level expect in kind Or up development spend to you some same any of the guidance level expected income recycle and each can of or pipeline stay of terms finish of on and expected the around

Glenn Cohen

million between I say, redevelopment XXX a from is standpoint, a into on our have XXX future million would baked we what somewhere year and plan. spend

have what be to seen methodical those executing are you we very So But and to about on previously. start pretty going how similar disciplined again, we projects.

Greg McGinniss

Okay. Thanks.

Operator

comes Please go from Citi. The next with ahead. McConnell Katie question

Michael Bilerman

benefit sticking benefit when the about all fourth sure obviously, to of the with you, quarter, $X.XX it back $X.XX probably quarter, so reserve, think the Katie. which on the X.XX the here to fourth it G&A, with really appears that the you just Glenn Bilerman we was said going next Weingarten out adjust Michael $X.XXX. loss make in correctly. you Coming circle this credit I have added a just is $X.XX to It It guidance for wanted Maybe on to call year. you had I

So low is guidance. maybe end of is the XX.X, your rate which run effectively the

really And everything so it it put sounds together because I’m just is to all like trying positive.

year You positive the investments made next going the fourth net you investment you benefit have you synergies from same-store, income, increased have positive of have you have quarter. the Weingarten, in

to So that I’m the I comprehend X.XX of really bit X.XX guess sort shouldn’t X.XX why to a to and X.XX. struggling up be little towards

Glenn Cohen

guess in thing. important, The with a I was on that accurate. room when Again, pension onetime Weingarten math pretty are accrual guidance he me because you Michael, sitting So points the is your were we right? hit doing is the

So is why have out. again, it we pointed that

tenants for of to million basis of that. So you X.X period that during do penny About out need collections the came quarter. prior pull cash that roughly

there. in that guidance, in again, So as I is our not mentioned,

things of right, are some for start there to is room rate good upside are We going we at. So is where of collect is that kind run some the where you right, feel that, your about is That extent out. This you to we where too. are. and are

which We significant pretty have is back put credit loss a in, number.

We loss are of we about net-net, credit had, million income. in this $X numbers using where $XX year, for of the million

are So is $X.XX. million $XX or a at you swing, looking year-over-year, like which $X.XX

the is that of kind math. So

forward, will accordingly. will adjustments go we where will As we see out we make things fall and

Conor Flynn

was we like appropriate the we and this felt midst remember, in are just spot. Michael, still the Yes, pandemic, starting

before, is have you start seen is it finish. you not as how you Now how

as midst the pandemic, And would in think focused we in so are a spot. is like starting And feel a like we feel on we I it good still we that. sit of

Michael Bilerman

I’m is that make credit other So a this a people Is nothing in it are XXX there be or else is sure than the in sounds could where to your loss else as negative probably missing what that probably numbers. points of are basis there be probably surprise than Street at are were numbers in an credit relative like relative there positive loss obviously there least that surprise? that of that conversely, drag to there just things trying expecting. to estimates out else range is the to acting incremental $X.XX nothing would we $X.XX anything other

Glenn Cohen

early couple there think the things, is I of are a we mean on year. I in

a fair have We done. refinancing that amount about fact there of needs the talked to be is that

again, And have forward. really depending on numbers again, where and out we are the Albertsons, is some do falls that baked impact interest into go where things of where So this time on the rates everything level at it, at not point. could

anything has some well. impact happens that So there as

move We on. And along through it. about way are early will to the is tried continue the we pieces of update it out the year, all again, as So lay to we we again, thinking it.

Michael Bilerman

well. I Katy, question had a as Okay.

Kathleen McConnell

Katy. It is

pay allocation back wondering Just how is to as opposed go you to year light capital to or upcoming start. refi guidance I’m could for down maturities. your allocate to just again, you preferred think pretty this the potentially debt wanted acquisition much

Glenn Cohen

the refinance forecasted to after cash to is obviously, The of I is plan XXX bonds extent is, the part, - cash exactly most expect we a debt dividends. of it repayment. company have. ran our mean, fungible, debt the as again, million good again, we But plan to is that fungible. for around use cash would the flow is but that So towards capital really generate free today could that portion we that towards

levels, debt the levels overall, year absolute how on are not So debt whole depending expecting you again, goes, really

Kathleen McConnell

Got okay, it. thanks.

Glenn Cohen

again, Michael want to little just I just to point, back I a other think one add bit.

today. any prepared prepayment into debt. headline around plan make think I to preferreds charges this I plan we obviously incorporated your FFO adjustments any charges of redemption said or the not the Should that have occur, guidance, will remarks, related there my baked the are of no that but in or in is

Michael Bilerman

you the And second? the I the forget it, a the and charges in net about anything numbers or dilution have of do embedded the is effect refinancing mean accretion for from

Glenn Cohen

But Yes. later into modest we amount most that the of it. Yes, a is baked it do. There is remember, year. is in

preferred isn’t preferred August, and callable the until in December So second XX. middle until the is first callable of

for going until and are Xst. that. impact little mature to bonds The as don’t XXth relates very November XXXX you October to have it So

in where late the of the year. really similar is items refinancing So situation a those

where we refinancings So of will and we the get more to it see occur more those is - later, the impact, a it is time. XXXX of will but at of a it

Michael Bilerman

you. Thank Okay.

Operator

The with Please next from Alexander Goldfarb question Sandler. Piper comes ahead. go

Alexander Goldfarb

Hey plus one good Dave, use Michael maybe you permit me Bilerman’s two and to question. morning will

obviously, guys back Michael’s up the is XXXX simplicity, because the et rent, following sort in So what cetera. abnormal question, or on onetime of collected of for you just benefit just lot a

how XXXX, So et inflated as repayment by rate about cetera? the we XXXX one-timers, the was prior run of heading rent, due think much base the catch-up into

Kathleen Thayer

Alex, Kathleen. it is Hey

So million you that closer we AR, X.X did the is include if deferred XXXX income line, straight it items. to is to related record for those and

Alexander Goldfarb

million. X.X To

basically, we - about take X.X the So to of million thinking call comp the are FFO we the XXXX, get to out when would guidance it, start for base? to

Kathleen Thayer

have built Yes into the credit we XXX from points basis in add and then loss the projections. that the

Glenn Cohen

Correct.

So $XX you of really when million of I have - about spread you you - guidance. the a spread . was have mentioning, was a are that looking at

Alexander Goldfarb

Okay.

questions. for two my Now

back reasonable a going on potentially is client more be is or and assumption mark-to-market up we your probably supply obviously, argument based make that and of buying Couldn’t rate not is in inflationary tenants coming what that to first got far crazy. The guys cap be rates compress on? be is CPI that print rates. that that a happen store proceeds, just go finally and buyers to that cap that you the a of like and in with aggressive want try not fleets, have maybe continue XX-years inflationary change no that as making is, what their shopping that as institutional But to bidding that which to given because see you you and view buy mark-to-market lot the or Albertsons real will compression going mentioned is as the you X.X%, actually no cap been that could is for centers there decisions in would we acquisition out is intensifying happened like to

Ross Cooper

it I and really be we point. No, I spots. to mean good a is our think Yes. selectively like pick aggressive

on impact impacts inflation You interest counterbalancing sort from have of and the rates.

growth at in the versus is with, seeing what So is grocery-anchored real Obviously, which very to are of these retail. My look at. a regularly and other we of the it. do for assets. The in rate other is is is low cap lot these when wasn’t you deals return buyers we And And rate growth rates on we solid good of risk-adjusted competing frankly, metrics an point they just the say looking multiple who land impact. are one are CAGR, in that annual then when IRR a critical. we the the that There is reason obviously lot reason a are there FFO are that of not Where see we rates cap compounded justified. classes, cap and a transacting substantial asset asset watching there cap that acquisition opportunities, cash, fours, classes, closely. to in rate, are compared cash again, going pricing

variety the So be continue out. going rates throughout market of interest reasons, we this where pointed aggressive year, just including that what we to And spots. go pick very a to you our will expect for is notwithstanding

be will active. We definitely

will putting cost is your will money. what capital point to factors. of well be We variety a taken. opportunity net other where acquirer, do out depend of We extent anticipate and being is and a But on our the set

Conor Flynn

to in to going some that mean a other the of toe our one Just just are putting formation them point I getting started. is food said, Ross And pretty is add relative private think impact for REITs, work. returns of water, the are product. I some other the capital to on they put the major XXXX rates start to a groups. relative be lot still in capital to And cap when juicy really are a as

Operator

go ahead. Van [Operator Compass next Dijkum questioner Instructions] Point. The is with Forest Please

Floris Van Dijkum

question center Thanks country largest for my morning. are guys Conor, in taking the now. shopping the REIT guys. Good you

Information saw tremendous you I have Officer. fingertips. at information your appointed You that got a Chief

amount shopping the than probably You the huge else in access data, in a country. center space to of have more data anybody

your about mining small in is by XX%? anchor think this your particularly historically unanchored in lagged segment. the do an space almost view space, occupancy space shop which And get you talk of help heard of how to yesterday information that because underappreciated competitors data, you impact about what using also We trying or they level, that. to has how data are what they have kind that one to could all your raise are have into of Just us think the initiatives in that monetize your place center

Conor Flynn

Yes. is ways. lot Floris, And in are question. you on it spot a a great of think I

might have picked data well. up script in You I as analytics mentioned that my

big advantage analytics that having to information others And a it and I that is to tracking and opportunity with in understand your gives can’t. when scale consumer it before invest it helps you And and able differentiator. capital the you think helps has ever are data think I with than better and allocation leasing. it

so And forefront we at that. are the very of

different out have a to we we understand understand things We than habits ever are than would that products. We have doing ever before. areas I consumer we of trade before. better lot say better test

have We because sort the inside retailers they we to with center, partnering walls. data are where have also information around start four our to of share shopping data the

these the say, So differentiators are, I all would major of to going in are future. be

had critical, a we that best really on, make And data And space sector. shopping we just to come allocation our to a has anticipate trade is the anticipate can And on to at need. I us and that what resources what you a online I it leasing, they I and from to scale is analytics going advantage to do well sort analysis think to of that think I And be major habits see your our starting. as very as into game continue as of but data, that analytics for utilization have going take the it and we of important, tool missing, of just all center retailers the demographic capital online goes for where human needs, of side think changer acquisition think starting going brick-and-mortar void are is is data are think are of a time and I putting area customer It that capital most all for on the are of that, retailers. leasing inning for information. of brick-and-mortar because now to of advantage lot it. very you is both be think sort your the utilize sure in first investment, what long I we is it

David Jamieson

in able didn’t of the the really our short actually XX-days skip continue numbers period we a very their our I time, able portfolio into a have you center to we that And have I take center were consideration several to appealing on platform, and into now some doing beat. their and very retailers invested of and a a our operating that, forward. just are make building an to last allowing scale initiatives, the share refine the things. for we so very to If we back the to how have a at the Weingarten, specific to option dollars will result operating the a cases, to so. going we is a we had market two in drawn in efficient time But them. center, One, investments performance be different grow sophisticated you that a of and absorb would competing done platform position. that we like that we retailer working very in large And also and team second in to when look I that, didn’t be is report and could we because over at been of related in information the share overlap the the it have invested are area, in context three prior to that Conor very think that have versus Weingarten us operating technology center, utilize to at that years, mentioned, have would add much think we with tying broader is to data our had catchment and retailer as

in that me go-forward that a can also Flex. is to So utilize we opportunity

Conor Flynn

pricing number I going for a You at technology. be And in to And opportunity. probably advantage passionate is dominant look two, power; probably I number the to technology historically, G&A be take it. scale, is of about tell that going flipped. one, is I benefits mean three, think think of the scale are savings; reason it we and can when few think a been, to pretty of you quarters matter number I maybe that

Floris Van Dijkum

again, little sources. rates can on is about can follow-up. talk portfolio markets? It If trading, very or tight you be that pretty another slightly must based should And supposedly less cap you print on cap the forward? confident expectations guys growth more people Maybe Great. we get ask Pointe market rate I at and how lower one maybe impact much to but feel Dania a the have return appears should going factoring worried about are The that. income that current growth looked in

Ross Cooper

a look, mean portfolio. is great it I Yes.

and is of Northwest power and the country, the let’s capital diverse, mid-Atlantic continue love of New was are a There especially, the lot So that, fact tremendous of see and to lot amount England a we for there. that to But is of a competition see the to remain chasing as traded are and another the are Sunbelt not a of not data with And lose going aggressive. points it lot demand there pricing other just lot markets of and a continue and for of capital been see well. we parts California supply. geographically Sunbelt and on invest and the sector surprised very Pacific a has we it. there many to It certain aggressively continue that is our Northeast sight because that the of we smaller to you emphasis and especially of pricing that we in

community rest a continuing to see in entry around the to to is investment surprising barriers are a not there And tremendous these it So of provide assets. of those and to lot it of lot coming the capital markets. to

So to single cap and to more assets surprise and are. be there low more to are is that going going how competitive continue and rates portfolios

Conor Flynn

private and disconnect shines come be apparent sizable ones, that light public very disconnect still. it as And a will that think year, there between is on sizable still I through that deals a -- pricing. this especially It

Floris Van Dijkum

Thanks Great. guys.

Operator

The next Haendel question from comes St.

Juste with ahead. go Mizuho. Please

Haendel St. Juste

I’m Conor power are was margin all, expense where in seeing the bit. what Kimco from a platform’s how technology-driven or know a much two guess platform from you guide ability Thanks. also follow your this in to side, morning. curious, offset cost some that technology, and thinking up these but of rising costs, you are savings good your I pressure I Hey by ABR a rent first on reflected for of maybe I of the assumption both comments those growth from most growth is of pricing or intrigued expansion items? benefits the on we wanted what year to built-in is the sense from

Conor Flynn

Yes.

and I So margins. the making portfolio ours and is focus we sort operate a I up date to annually, sure that And are to there of and be improve and of do invest, technology for the think does think to efficient our keyword continue platforms invest. most the

to data sales utilize think portfolios upgrade us a gives is continue did that it the platforms real give there to relatively integrate, pretty those time. an tremendous going onto We significant us and backbone whether forward or our as force advantage NRI. and So one-off and platform really

continues so there annual And investment to sizable. be the

Glenn Cohen

somewhere year. million $XX $X invest in a given We million between and

Conor Flynn

continue new to pilot well. as ideas And we

investment right you at think I is a think look as differentiator continue and I think way it of that, the again, that as you an it. to going long for to forward, as

I soon are start not as and corners have start looking think you as forward. an going it in cut you at then get to expense as to when to you is going going you the can are trouble item, advantage that because

Glenn Cohen

invested developing to transactions. a spreadsheets, and having we future using in people things money just I you amount do efficiency little we of bit just of drive Yes. I mean, I of things enormous help Instead fair mean, are repetitive that it value focus bots a higher-level in will - our on that creates doing amount give that have add Excel business. the allows technology, and are to an people

to things mean a increasing CTI, really to technology taken we have our I that. MRI contributor that have to So anywhere have the major we power we And can advantage of from are where we even migrated like use that we product. done

very, the vendor with we closely Salesforce. work very thing So same with

efficiencies So all a we doing are key the technology of we can what is the part within business. create to

Conor Flynn

also are That mean all of our value is stakeholders. is the we look making, if I the all the investments that ESG waste, includes improving part obviously communities you we it initiative, creation for really of It to improving long-standing at serve. our

Haendel St. Juste

That seems you cost some be able you the do numbers. numbers for one about will savings. some then could do original Maybe pieces question, is to understand is It key that a I’m pressure when you put you think guide that put talk to potential still still you was maybe those helpful. think points. early the be the back in expense around you I kind this will curious like of when able you And I growth of bit, are guess what are investing. And of year. some on of

Glenn Cohen

again, something the standpoint, expense and inflation an from to mean with. works is have is deal you I clearly Yes. in that

Our recovery standpoint. rates and a are pretty CAM tax strong from

margins tremendous, you So And look you NOI XXs. not overall the in that. of margins, NOI if are the at low have amount leakage is but

expect the kind is guidance range side, we so the it in G&A them as gave already the We you stay relates year. baked guidance range. to So into of that on would that throughout

Haendel St. Juste

Got it.

Operator

Kim from comes Ki question go ahead. next The Please Bin Truist. with

Ki Bin Kim

morning. good and Thanks

to will going just like if help a us in on or And it last have - much the prices? pay reimbursement. amount you how of that. the on would curious expense much bit tenant pay versus about expense back Just question reimbursement a on understand XQ. you The anything caps you there that that how was rate dropped I was can reimbursement do looks little

Kathleen Thayer

Sure.

comes nature there and recoveries, down of to spend the spend. it. really of Kim, to is to it timing It lot a facets of comes So when the

in caps their have certain leases. there tenants So are that as

the we throughout irrespective the it your the have may you of related that the also spend that drop from pro and to fourth spend just So see capping cap you in if it the component of particular amount an to recovery dollar tenant reaches things, a quarter, where the that that as comes lease, to happens. which When comes that CAM, off are going fixed means a amount year set through actual of entire rata a get is example.

again, it a is bit there impact, to a recovery, it comes lumpy. little makes which when of lot timing So

Glenn Cohen

just would more that, I fourth Yes. clearly spend. of quarter at you during the when the spend XXXX, look it quarter versus fourth add of XXXX again, the was

spend that related to amount was more acquisition, have limited. of XXXX a Weingarten not and just pandemic was of spend was on going You little the but bit more the the fourth still deep pretty quarter in

look that quarter, about at going. is So you where rate spend the when fourth I decent think run a is pretty

Ki Bin Kim

XXXX and of some inflation is on maybe CAM So line, that guidance a all what pay, for your your given tenant these some in fixed nature were is? drag would that at caps expenses your same-store a

Kathleen Thayer

year to comes the to there with regards note, CAM, a reimbursement each just the the is in us. lease it that fixed to tenant gives bump something When

So is keeps and it not set increasing it the a forget the over years. it, amount

David Jamieson

of building pool. open, the they are starting CAM tenants more contribute And there to component back are terms and is occupancy also as you to getting in a

center occupancy You a operate bit. little down if is shopping still have the to a even

bear a So will which have landlord you new the some of expenses, comes still tenant that recurring have until online. you

start is we economic cap as see contribution manage within our to component go that tenants any compress, more will to grow annualized budget we both market the the element we associated retailers starts through contributing you the well expense be. Kathleen’s understood, the could rate fixed be for lease is stay least us to and earlier process, to make reimbursement investments So increase. top need and and ensure an our pool, and allows basis and open And with to our recovery CAM the as what that point, may essential at that at the that the to relevant to really on our the But is make what centers customers. of that continues

Ki Bin Kim

CAMs was to I but perhaps Right. are growing, was your I not guess the of pace what fixed getting inflation.

So basis that a I yes. wondering is -- was on if

David Jamieson

No. Yes.

and stock managing morning, came just needed. you real are this the we out So you numbers is is very are Obviously, here. inflation through that as so as your The to well adjust but opportunity have inflation. and that of mindful spend

that that what would in for stay that and prepurchased that, started needed essential front is also XXXX we items utilize have were to is be we we through preparation done well manage budgets. back in are knew in will roofing to just XXXX, into addition as continue we of We to that materials In we materials our have buying something that, working . XXXX. and other

Conor Flynn

your it We same-site on don’t having see to impact a question. NOI negative

Ki Bin Kim

you Thank guys. Yes. Okay.

Operator

from question Baird. Next with go Wes comes ahead. Please Golladay

Wesley Golladay

of lot Hey is everyone. rent. quarterly noise morning noncash There in the a good been

a basis? is And so in year year the can for rent you tell this the what embedded full on noncash us guidance pro rata

Kathleen Thayer

were million we Collections X.X of for quarter the that did collect. reserved previous rents were that

mentioned, in embedded is no the Glenn of XXXX. what is inside is in actually What there XXX loss is credit basis projections actually for of past there collections is the numbers. As the estimate

no we I income of prior mentioned, in any as put the So is included that related there periods numbers out. to

Wesley Golladay

the Apologies, rent I meant from non-cash rents. straight-line the

Kathleen Thayer

there. Same concept

to numbers are reinstate the that. flipping line. no the accrual tenants we on back where to any So related we straight of not in showing There is the impact

Glenn Cohen

fourth X.X the about million in quarter. was There

that X.X income the line. it that number, line So came back if million you about through straight look at was

figure out So bit. you if have would off that of kind you trying are to little run rate, back to a

Wesley Golladay

maybe Can looking been exactly now centers. we is or we assets is the look going you strong as I And the how much that up? market disposition I about some opportunistic noncore then have guess, it talk assets, was year, well? mainly program what then bid as that well, in And private noncore from this there your when the has up shopping for the, at will firming in tightened That be for. do assets back to bid

Ross Cooper

whole at assets of a don’t have fortunately, Yes. I point. noncore we mean, this lot

there we still there growth, a really of Maybe disposition at less we credit. maximized lot our when it look market. demand So good we is where is pipeline credit in for have feel but tenancy, the value. is the for And year, assets good this

So just I and be lifestyle, have aggressively not pricing more we power of well. certainly and open-air as tenant grocery-anchored single to compress priced, cap but continuing rates product facets think seen have all retail to continued institutional

amount of everything as getting So the the into is capital flowing more aggressive is sector.

Wesley Golladay

Great. thanks everyone.

Operator

comes Mueller go JPMorgan. ahead. with question Next Please from Mike

Michael Mueller

talked Conor, hi. retail wanting last think few Yes, a I times. you mile about own to

difference is the retail you between Just what isn’t? what and mile what see curious, last as

Conor Flynn

is Yes, good a it question. really

embedded that using I it people think when the at is area the in understand retail, when is data it you you live. that last retail closest look it community we define that trade analytics, mile is that So the to serves where

that is market sits significant so into supply store, come locations populations, barrier-to-entry within anytime necessarily have neighborhood And dense sort high really of where opportunity you the grocery asset the new that to don’t soon. the see

in major the where our sweet look map continuing last shifts locations And we we top in demographic have population entry. growth, barriers of to you of we we spot seeing to have right that a because a why for around retail so mile is or and XX the when lot are think a is to lot we us that metro chips, think are put the continue really are spot lot string, markets first of at of the our where

in continues and to favor. our So the demand be supply

Glenn Cohen

going to add. was I

lot the store distribution looking are you the a as their today of at think about main - If they point. a retailers,

are getting, are the from product online that So activity they delivering a that they lot store. this of

advantage I pickup and the think the also for for having is retailer. curbside another just consumer

So if quicker. product easier you their an much surrounded just that together, is when you get to sitting asset all them is housing, have put by just it that general for

Michael Mueller

Got it. Thanks.

Operator

Next from Barclays. with go ahead. Powell question comes Anthony Please

Anthony Powell

Hi good morning.

losses. one maybe me for credit So on

said increased at future the of looking in long-term, more the the You kind you at XX years historically base? that quality given you improved grocers, that tenants, quality XX given that of to are basis tenant points. XXXX Did exit you level? could below And be of

Glenn Cohen

you fall I But predict question. the a but And I we point, are tenants the mean great I a if going ball, still difficult is mean, midst answer, very what out. tell it in happen, it I I is possible. had to might is to could of Conor’s pandemic. it is to which again, guess crystal

had it could that little way. is something would very have it possible the It great would We happen terms continue, other always could if that go bankruptcies. that be but of in very,

And better with. So it this again, the to it if guidance, think we we and adjustments we And sit appropriate we level than about be go. think what improve, we really certainly as can as start is. make things is will see

Conor Flynn

all if deals, upgrade base just lease think assumption tenant the plugged after into fair new of should last that have, and credit use, mile e-commerce you are correctly retail the used that supply a is is reserve. doing credit retailers the loss it lower think with a to finally in and tenants the that I you chain platforms we able and be our the pandemic, that

make. think fair is I to a that assumption

Anthony Powell

of on, maybe retention lease a there were Is at renewals, renewal. very those are big more an guess, went guess, given you a point? quarter. to you spreads. in was I on new higher are what focused the or And strong push I between opportunity some this bit difference There seeing and They

David Jamieson

in an Well, for to tenants as renegotiate. I encouraging. single-digit and that always to or to be range, continues high look away mean, the which option spreads high our single-digit We be mid at renewal continue opportunity to walk range,

that population positive we time healthy are comp the spreads that so quarter-to-quarter. spreads as with fact continue that back And case-by-case. on to a I So as it can based Again, that can. forward. still fact revert always a in we is the are a It the We is holding do good. posted going vary to, certain hard push that though, point will is

Conor Flynn

more X that. point on Just

New embedded you get have at replace renewals would lease spreads market of to any then and and bumps to don’t have below-market what more are leases where typically the be. options where than coming some they are more rent them because mark-to-market the higher with the opportunity lower you maturity, control that have the

David Jamieson

top shop to Yes. is that did of still. and so you of And lot closer where difference small typically on one more the which is that a seeing leasing we is that are market, part

Anthony Powell

Thank you.

Operator

from Linda Jefferies. go Please ahead. comes question Tsai Next with

Linda Tsai

Can trends any Hi. note between quarter legacy us you and Weingarten in the portfolio? retention color to on give the CAM some shop and

David Jamieson

both about been so the has the several is Weingarten portfolio very the we think overall years of And nice strategies is really it What over pruning complemented quality. the Kimco assets, had noncore improving portfolio. how similar I

when there we So August, merged together quality. in complementary is very

was highest similar the seeing XXXX, our When and we the five-years, trends to XX%, at retention really XX% was is between look the two. over over you over are which has it So in been levels GLA deal in very XX%. almost retention

last historic is retention So is the time it to the well, over as we lowest have six XX% level at point average. below as well vacate the seen years our really

fell forward, think midst purging what a XXXX. I path couldn’t XXXX. during of is the a that make it pandemic just happened the reflection see really tenancy, that So the distressed though in of really of didn’t really really And out those this through, and

that in a obviously, deal then had to So stay you that are within is you the the shopping XXXX, where with relatively center. compounded base desire And and new seeing occupancy the now, a really stable, saw was grow activity renewed growth.

occupancy growth vacates, are deal retention, not you elevated but new flow. getting also reduced So with only

Linda Tsai

the one have centers grocery something as mentioned then And unanchored heard in some discuss are competition we of your and increased this smaller transaction competitors consider market you would anchored? sticking Is or opportunity. with you

Ross Cooper

We interesting love at grocery. retail. an all of about of look is We talked It it past. love We formats do in We concept. sorts the mixed-use.

of power of our with have We best also seen centers performers redevelopment potential. our some some be

anchored So having location, believe a day, that are that at a of the a of that lot the real traffic we on grocery to is and but adds the really center. component do the focused we lot value the end of estate,

grocery-anchored something So right focused now, is wouldn’t say want discount or strategy shopping centers. our that just been more to given I it we the on type consider. don’t focus we But larger-format, have

Linda Tsai

Thanks.

Operator

Michael question Please with BTIG. comes next Gorman go ahead. The from

Michael Gorman

and grocery last currently talked especially a be know lot there mentioned just retail think long. just morning. Conor, I Yes, ones MSPs here to do for maybe have thanks on kind side. running we good I to the you there you portfolio, to us about in about Kimco opportunity that that here, you tenants improvements the and in some well, I MFCs planned the stats portfolio with any of invest give that are is and mile are in try your for are MFCs you as Can quick in will wondering, an the centers? partner

Conor Flynn

Sure.

commodity groceries A very, far lot where continue adjacent automated, that micro of some you off have the also on, locations micro comes that have space of of with not that that to to think continue that on the early where type What mile think testing last looking so very for see evolve. mile the are is when of some they fulfilled that have are get where at on rim outer continuation and the that. bolted center of you to checkout help found retail And have lot fulfillment, the can within with a vertically goods your are actually you will of either going meats for walk you last to you talked walk our micro freestanding a store. integrated, ready I goods, of store is that talked you that through the then and what is are to delivery. So you type are store, and it I get is rest get is fulfillment are looking fulfillment. bakery the fresh, to think that the grocers we the store are around we the

base, So it But in very, their still reinvesting with way think early be we their that of part the I retailers is very that, store there. that strategy. will see a

have will probably that we integrating it. some will some test Now bolt-on strategy,

retailers, probably that it evolve. how I focus store are the a for to our be freestanding. going Some and continue But think have share to of see continues the you is lion’s will to

David Jamieson

I micro fulfillment got something parcel well. of are bit square the you some also so existing wasn’t change feet, racking to same XX% visual through to XX,XXX that little add is their something think QSRs to change and a to noticed fulfill about They There a are I there different orders, micro that is their it grocery with needs, accommodate physical the capacity? would target, to than a year throwing Is like store XX,XXX so have start, a you a as you think, distributed system that have out thinking a may robotics is differently. addresses fulfillment some ago. goods to that then you But like footprint already of store. a similar utilizing not that

still and to that evolution, very So appreciation point, or I to days that. Conor’s But it be view in think retailer. it will for have is how of definition we its the broaden we much early different each of

Michael Gorman

doing potential just in of some or seeing you or is it these look leasing, are where they there place are looking out too as evolves are as things for And for for space, like adjacencies still them for ask more flexibility more far it space? you Are you for seeing already are that? grocery

David Jamieson

No, may no. feet. a very that It is they much could have been was I square now. format sometimes had an older box that XX,XXX-plus have mean

I And in But will know XX,XXX were a the they space, have be that to to and either some. so would of adjacent otherwise. where for conversation or vacancy, now basis newer slightly and on then would smaller. of number left right a be of that like so more they now in the to near-term. that I available continues views five-years might that do utilize last are need their topic formats do the portfolio maybe a of to some appreciate you they retailers me We now back the of the with expand weekly or say now what they out to the that going

Operator

with comes Wells question Fargo next go Please Tammy from Fique Securities. ahead. The

Tamara Fique

in rates up curious across and on you center power grocery wider that of Thank cap narrower been cap rate seeing historically? I’m where or question just you. compressing are are is and understanding it is market segments. between Maybe terms versus pricing in following and just the today spread today what asset the

Ross Cooper

I think it aggressive similar. both are They at compressing a is pretty pretty pace.

sub-five. So seen institutional we have if now quality grocery anchor

sub-seven, some commodity traditional lot in seeing more of a the centers sixes. We power cases, compressing low are

maybe average. into spread compressing, go So think think a pricing, course. you lot cap the of I historic. is consistent still XXX Everything with just I rate-wise. But are on basis point seeing that factors of But is

Tamara Fique

And XXXX. Okay, the to what to mixed-use order and XX% to get of curious, or do you target you. need by thank redevelop acquire then ABR in

the for longer-term million planned $XXX to acquisition plan. annual spend in think to Thank product redevelopment, $XXX the context trying million there of type Just about the in if is that or this of you. activity

David Jamieson

Yes. It a is great Yes. question.

a mixed-use is of component that there the associated ABR ABR is with So a center, it.

at acquire number the activity, opportunities But three are we that several team to of when So have out lease years, be have the help our well. use. our Ross activation of of multifamily next to Obviously, if the external buy projects, pull ways. you partner Obviously, on to we growth those and different his trigger for it and of entitlements opportunity and the to several several finding entitlement could platform contribute mixed in over were of will contribute we us, what through get more will look doing, as ground achieved thousands which the potentially full that. income benefit the the the

Conor Flynn

ground Clearly, we is is we multiple bigger the that continues. it. ways, the obviously, the projects that to In number of then, that percentage joint Yes them. continue trend that But lion’s internal to And in platform, a entitlement coming different the will have from phases can of higher. share activation lease, venture.

use. XX% we mixed of think are I at today

So we lot was have done because work a five-years ago, of that zero.

adding has trajectory will of and shift our you away of our more side that, the from continue is assets, up density nice continue development towards So existing think the capital we to redevelopment to that see where that to equation. ground that allocation plan

Tamara Fique

thank Great. you.

Operator

comes ahead. Lucas go Securities. Please question with next Capital from The Chris One

Christopher Lucas

the to the macro the thinking just could how quarter way touched or are print you Fed’s in with it about inflation the you how front to at. think maturities the guys. price I’m as quick are morning. XX-year Real the And you bonds thinking in terms general just you funding Glenn, of matter what outlook, you I get curious was, XX-years plan X% fourth your not on those? guess expectations, you thinking are those about for of it want does this

Glenn Cohen

sooner a we with monitoring That have something do But look one constantly for one to Again, later we are windows are the November. October, great of that them. one the market, watching is two us maybe always than and for will markets Again, pretty issue. try sense that to in question. we mature, open we bonds looking makes closely. probably in Ideally,

depends particular above around depends so I In we treasury. on $XXX XX-year terms the the the market. -- that the It say of or pricing, are on somewhere probably But really again, in would day. range it

So be XX-ish in you XXX, coupon are range looking the at would three today. somewhere that:

Christopher Lucas

you. Thank appreciate it. I Super.

Operator

follow-up a have Greg we And go Please with McGinniss Scotiabank. from ahead.

Gregory McGinnis

two Just ones. Hi, quick

about that. Sorry

into before start there weaker collections fell is at or quarter, slightly that is from occupancy out highlighting year to just timing last and recovers that, that anything tenants fall to rent Looking the read issue? perhaps a some

Kathleen Thayer

is are number. that it is your contractual every like So fourth there, what the go seeing you actually related is estate those quarter real rents out where no month aren’t billings to taxes. some there our significant Greg, in And

it out, to a go when longer those. bit So those collect takes little

So what is first that the up but small will causing quarter dip, taxes. pick that just in related is relative those estate those real collections to

Gregory McGinnis

was you year, are certain true starting improvement where see Is to XXXX limited in rent Sunbelt And you at to NAREIT as last well. growth true versus mentioned Okay. that regions then markets. other still

So you growth would rent any can details be appreciated. provide market on

David Jamieson

mean, posted, rents effective we move were XX% I case when over seeing you at point. net for no. Sunbelt look between market are almost XX%, Yes, the of at markets, every the that and which flow, represents in this rents north again, our deal coastal volume spreads activity

and a inventory relatively the of really been value have several may getting otherwise development we country little of it I that open air items their supply, fully that in expand balance talked grab the obviously, result air muted and/or in to think quickly, a throughout and bit open market growth no wanting retailers past. absorbed before, about spread open appreciating share has is the So

you I nice that some think so is for to. our in those demand putting And all, we us when get combine that can favor

Conor Flynn

to where say, Greg, another tool of advantage, pricing allocation the sort has market in where the some clearly, there airtime. to we us there is I on would we right, is a a Obviously, lot continue But of potentially pricing Yes, that give that lot growth of there. And are use, we power reflect see. we up. analytics capital yet going Sunbelt an to of other maybe rent that manage see understand yet data is not down with in to rent growth that that reflected gets markets

Gregory McGinnis

Okay, thank you.

Operator

And today the comes Katy final Please question from McConnell ahead. Citi. go with

Michael Bilerman

XX, the all XX breaks where in entitlements where only out active X,XXX up whereas supplemental pretty then It and is ultimately, does you XX Michael least Page entitlement at at of comprehensive. Page that sort How Page the broke the are Bilerman. It and X,XXX. XX so you at XX Page tie is the that that have today keys, and XX Page it value Page about and to units

know X,XXX certainty. of other more I undergoing units just is coming some Can are reconcile those are So that? have that from, you that that where entitlement don’t maybe

David Jamieson

Yes, it. parts yes. There is two to

necessarily that actually see is are ones So fully one our entitled you for earlier, those of the now. on are accounting that so entitlements over have delta the getting actually tie are is in which you undergoing page. in active I Avery just won’t other wouldn’t you the right it - the spend mentioned completed, then reflected and effectively where of X, that Square is a Milton which portion is you be reflected where units But mixed-use stage, that have the that are XXX which Part Camino that and out. But

Conor Flynn

Michael. leases, ground are Those

So is pad prep then over. it like that our and spend why is is

So that why you don’t that. is see

Michael Bilerman

I then and on is count Page at right, it XX, XX.XX multifamily flip Page Yes, XX.XX. to was then XX, you

David Jamieson

it currently you under will And tie construction. that out. then or and you so X,XXX another Right. are have I X,XXX have

Michael Bilerman

active this of I starts XX, these look sort Page we grow? when to projects mixed-use some that is of your so year the guess launched what Okay. potential that get at

David Jamieson

Yes.

you - So XX. to you I look the are actually, evaluating when Page we mean, at entitled product, go

are that So at pending are on approval place when look pipeline permit you that entitled developers. are projects the there, in the leases ground have XX referenced there are from that currently that two the

be to could opportunities those So activate.

it we are And addition wanting are is that, to market had those. but to In evaluating of we three everything I pursue. mentioned again, five to something conditions, that before, probably capital

Michael Bilerman

And is capitalized these the a that of balance entitlements, all now that have you spend projects? for pursuing all capitalized costs there is certain and in being

Conor Flynn

spending that definitely projects the the into I is capital are those mean building on goes for It the Yes. we capitalized. basis asset.

Ross Cooper

we of capital We nice - the using is into have are activate as without seen a well more as and a trying bringing to of have going of in can leases have much much projects, because much mixed-use lower-return it these we activates ground drag It these opportunities these to having growth. balanced focus FFO activate developer, world-class Michael multifamily on how how we too we a sort projects. continue are that where

probably and So to ground Kimco projects from set the up future ownership benefit long-term. have collapse for generations it the shareholders these

Michael Bilerman

few weeks. you See in Great.

Operator

back This turn for concludes would session. over Bujnicki to to David closing our like remarks. the I any conference question-and-answer

David Bujnicki

enjoy I your participated call the that day. hope you. just our thank you rest want to of everybody today, Thank we and on

Operator

The for presentation. now today’s concluded. Thank conference you has attending

now You disconnect. may

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