SITC - Earnings call transcript Q4 2019

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Operator

Good morning and welcome to the SITE Centers' Reports Fourth Quarter 2019 Operating Results Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Brandon Day with Investor Relations. ahead. go Please

Brandon Day

Conor thank you and Lukes; joining On Financial us. Operating certain aware Securities today risks Federal and Good hear you materially actual may These our uncertainties of statements from within from call, meaning Officer, Chief are differ and statements. will constitute and Michael may of forward-looking our David Please statements Chief statements forward-looking the today's be Officer, that morning Makinen; for Fennerty. the Executive Chief Laws. to forward-looking subject Officer, results

these XX-Q. found our we including about today file press information and risks our issued and SEC, the most Additional and recent uncertainties be release that with in reports may in on documents the XX-K earnings Form

release, non-GAAP Reconciliation in of directly supplement, this time, today's non-GAAP the Relations to we on operating website Lukes. At www.sitecenters.com. release. comparable on can be measures GAAP Officer, the at FFO, Executive section the is of quarterly to found my Investor Chief addition, today's these income. and including found maybe This will introduce same-store it operating pleasure our measures press most FFO, discussing David slides our accompanying financial financial measures net call our our In be financial

David R. Lukes

for Good earnings call. morning fourth our you and thank quarter joining

am year expected ago NOI I out were an expectations. Key excellent we managed expenses. Our capped and Investor OFFO XXXX were and and performance execution. growth Lower proactively for is throughout about ahead delivered and drivers better Day a year consistent revenue same our a the Fourth SITE the themes focus our quarter five which at on our laid year results store as operations little on of with great NOI business Centers G&A, plan for our the to property full team than year quarter start a teams over enthusiastic significantly

and announcement our us repayment included acquisitions. quarter these $XXX I'd company's on of XXXX position business and plan; full including a profile results comments and into year the put year offering, with acquisitions, significant and Teachers new for investment three the components five underpin portfolio. like steady to number actions expected JV preferred years our It's our of XXXX equity of growth quarter our the ahead. redevelopment. accretive assumptions of activities that sale and within Blackstone and transactions, growth and of from my long-term context are these the a well three fourth to the million our leasing, fourth also Each three The with along guidance XXXX the

we are leasing a story. First,

over At opportunity highlighting to of opportunities those is spaces XX are we've for at our top a been with year. of or estate on We've now list valuable past the XX% Our executed leases growth strong anchor leasing real spread. biggest fill the tenants. LOIs the the blended XX

we important openings part our also Day, number the this was well variances. ahead versus X.X% The XXXX. early by Investor positive Full year driver growth which of component Our five the from NOI for year most the the business was success driven and plan, supporting was largest a third anchor store past boosted the outperformance growth, of the quarter of X.X% fourth acceleration average of out the budget primary of of laid plan. of by at was over same year our quarter

the first particularly the several XXXX I'm difficult growth a bankruptcies years are and signed shops excluding the announced and comparisons next our As redevelopment. NOI start a of tailwind key and outlook they'll rent and considering several midpoint X.X% of same in of the year. anchors the for store driver behind and steady redevelopment and pay X.X% in to including open recently the pleased with XXXX weeks range, of provide guidance

is The component of plan acquisitions. our business second

for last annual and excited leases five and of below investments announce expect deal the plan to quarter. two our properties Portland. achieved in of portfolio discussed As our and Austin, in quarter other cash acquisition now our year produce reminder we Both in excess calls we XXXX investments vacancy of $XX well the with recycling, funded a three vintage, in fourth and NOI growth in are through consistent average. million a vintage I via goal plaza Texas flow I'm market Tampa where capital to

Additionally, despite drivers. traffic different formats, properties natural adjacent from benefit both

of in an a Tampa, top Publix Center by submarket. performing Southtown collection is Sprouts in and affluent service surrounded shops oriented anchors Florida, grocery

Portland, are blocks retail at as significant condos is XX at Pearl apartment which cash of of constructed a is the growth a opportunity of lease district. expiration. users, signed alone. in in mix to upon submarket leases significant urban more majority population fitness buildings growth, the of flow base unique and in banks, collection The described Downtown This the occupied the Oregon since prior the Portland X,XXX XXXX different population seen The bit apartments has footsteps increase restaurants, to I our were a by properties, with providing of

Both to retail the for traffic. customer use market true on rents. retail growth gives with the of format a allows investments a space, high up picture data identify. in concerned and demand roll and less and much economic with us proven properties it more these our recent are of very Retail focused traffic be customer challenging rent to clearer have But to us ability

of additional acquisitions economics of be while over we are to With cost source remain which of course the XXXX, mindful that capital. will of warrant on up our our and optimistic that competition scarcity time the our capital. format high to all able on a return mark-to-market We highlight use enough bottom measurable be these of at that's investments deliver a renewals, of we'll same approach the agnostic confident

at open Bay also third fourth the are Boulevard the course our which the quarter the projects. for over of phase the up component of of progress business Plaza our will plan, and on at wrapping space during those Brandon to Tenants started remaining We the the XXXX and Venice strong of to make complete at demand center. seeing Finally, [ph] collection we're redevelopment. transformation continuing very set West are second

flexibility Finally, executing means year work sale, In through continues venture, large risk plan. projects, through our our pipeline on summary, better an of as embedded a focused invest on another profits scale remain SITE stronger our sites, tenant significant value entitlement it expect ended sheet, driven portfolio realizing balance of early five growth, to flow to year joint be I continue XXXX occupancy with uplift to and much year cash demand own. benefit mitigating opportunistically. assets, on we all a or successful on a a strong which we whether of supports the by and these and capturing from

years of to Conor welcome organization Board respect very Chief staff Lastly, want appoint our Fennerty our Executive to track Directors, of behalf to throughout Conor and Officer his quarter, make wish record leadership call earned his he also his sure Centers. Ostrower a we past are that, the company the investor all him SITE I'll Team. as to five our he to fourth of results. Financial and hand fortunate during impact our the as three departments. here And were and with operating on I has the the to has friendship new over years. proven an tremendous of and Mike successful incredible the adventure We well thank FP&A at next past him to want and I like over our Makinen his will Matt with for did finance at and over contributions discuss this a

Michael A. Makinen

robust the and I'm commencements. overage, leasing rent NOI was to occupied year that and prospects XXXX. tenants, spin, we fourth a space RVI encouraged lower ahead our the group tenants. we percentage Since Anchor with healthy have David. we get settlement We identified diverse now in and debt, to our at the at higher spaces about results and remain pleased you, spaces consolidated majority rent for fourth them paying. expected, of anchor re-lease of open rent XX mark-to-market than plan to when can for extremely the and of anchors Quarterly four earlier that the bankruptcy. bad have Thank quarter, demonstrated opened a backfill back bankruptcy tenants Day repeatedly operational Investor claims, and are from have full quarter due XX and recently by shop the filed we earlier of volumes

are advanced in yet Another negotiation. signed lease but are and open XX five not

small we expect these provide and XXXX with David a tailwind. XXXX shop bankruptcies mentioned, openings of the backfill multi-year As to along

in as properties averages Renewal part included our redevelopment since which the exercised renewal effective lease quarter were flat spreads two right softer though several short-term were as anchor and due XX net renewals well our New anchors in trailing at grocery tenants spreads. in for spin. of options the month that spreads to were line with rents

mentioned in I've denominator of times some operating previously, number As volatility will our smaller create our a metrics.

shop this outs rate highest activity good two partially to lease the team leasing and in very Demand I The largely down points closures. is quarterly the years. quarter, XX basis move barn the deep was shop Strong volume these momentum. for due our about dress operations completing portfolio with mitigated for space our feel

NOI achieve I'll provides rate our even target growth that, basis call and ability the for with year X.X% our average to Conor. GAAP store commenced occupied confidence the our effectively annual was XXX Finally, hand NOI leased With same bankruptcies. unchanged tenant to X.XX% over reserve five a point in

Conor M. Fennerty

comment close quarter on thoughts sheet, then Thanks, first earnings, XXXX I'll with full on fourth discuss balance year Mike. and our and guidance.

of remains in compared at balance the XXXX, in quarter sheet, to on and First Portland acquisitions. third X.X debt pro the EBITDA times despite of strong Tampa the X.X very to the quarter times rata our with closings the mid-quarter position

great maturities years. also X.X in with term weighted Our remain of shape average the

encumbered almost as on with line liquidity of significant just of as have year-end and three our XX our of properties million today. We $XXX credit availability consolidated of full

Additionally, sources other future we have capital. of three

we coming million venture closing First the Teachers expect of of weeks. the joint from proceeds the $XXX is receive the to gross in

our the preferred almost in unwind. as investment is with $XX the quarter million of We ESUM The second joint remaining fourth the venture. of continue the ventures $XXX the received joint to in Blackstone [ph] preferred million Center sale

half receivable liquidation received have and source the of second expect we The million to RVI. receive the of the ultimate remaining. XX third We the quarter original in preferred fourth the through $XXX million capital is the eventually

deploying Teachers, of expect growing to proceeds leverage don't of and times with David All of six near to the these our below the opportunities. are net close of mindful EBITDA capital to in find attractive cost term. we That we capital while anything mentioned, said, the as strategically where our Blackstone preferred RVI and company long-term from preferred, EBITDA stated maximum the well positioned along sources, remain

Turning and quarter to XXXX results. full fourth year

the For we fourth budget. as positive quarter number from versus benefited of a mentioned, variances our previously

First, operations to based. were ahead broad Mike, by fairly factors of the were plan outlined due which

impact revenues Second, anticipated not bankruptcies recognized than we expect Barn Dress had did from and which and $XXX,XXX a we of Forever smaller occur. XX, to much

penny. a of a Lastly, fourth in which results positively $X.X G&A full The benefit top $X.XX million pushed of by compared significant range impacted our the year outperformance includes to to guidance per $X.XX. results onetime quarter end share our the

Importantly, growth results per cash this XXXX the highlighting share. from impact measurable to of adjusting execute after ability and company's OFFO for drive spend, demonstrated flow

increase with NOI X% and the a in balanced. our rent to excluding settlement proceeds is redevelopment XXXX of received a to of by with in debt fees joint due the $X.X JV remaining is the X% driver in to XXXX the a largest store for by our and of guidance million equally X% headwind third claims $X.XX Mike bad I adoption roughly the bankruptcy the first expect commencements Guidance of The of of venture, million store to per part decline. fees $XX $XX stake to basis from quarters same NOI introducing unchanged including partially David to share the point offset XX guidance. Teacher's discussed, be of driven quarter, the anchor same year-over-year of in to by JV accounting would recognized and sale of now turn lease OFFO redevelopment We're driven X%. standard. favorability XXXX I'll new $X.XX million

no guidance expect In fourth we balance in lower its reflects the assets XXXX million loan Interest our be business plan in to value realize on so the based due sales terms said, asset to That $XX to assuming date, sold. RVI income sales. fees additional to quarter. will continue XXXX execute company outmost of Blackstone a asset to repayment preferred completed of be in the lower fees other also our and on are will mezzanine average RVI

XXXX of pieces of to XXXX. Lastly, fourth the there quarter quarter moving from first number the a are

offering. higher at shares First, quarter weighted on XXX fourth impacts the will million due average be roughly equity the to

onetime Second, G&A quarter. higher won't this as we be benefit will have the recorded

to Third, quarter from to to is typical income other quarter. we and fourth in million have lower revenue the $XXX,XXX. totaling leads due fourth, be ancillary and [ph] lower $X.X Louie, also in And expected non-recurring in Inn first that received Village Dress seasonality by not the to addition Barn, Bar will revenue NOI

revenue Mike the XXXX. for I we call these back to mentioned, about spaces backflow there be closing As will in the David from With comments. are limited excited but will prospects, some that, likely hand

David R. Lukes

remain on actions, underlie take first executing of to our We produce opportunistic year XXXX. execute full post growth Thank over compelling of In transactions. and schedule spin year decisive organization's grow, you, operational the another goals expect evidence Conor. plan and our ahead on investing next provides that redevelopment this the five and successful to ability years and conclusion, in

Now are operator take ready questions. we to

Operator

you. Markets. go Please first ahead. the come will Instructions]. Thank question from Todd KeyBanc And with Thomas Capital [Operator

Todd Thomas

thanks. Good Hi, morning.

in less First timing and bankruptcies from that and clearly more and impactful closures transition. your was you I think that you quarter more XXXX question, anticipate so was last related view a it year commented

worse, the at sense are view there's seeing? year disruption what's retailer of the conditions perhaps start your the or to they you're in seen environment So, what's your come some more improving health getting retail level but margin, we've are of around announcements, the general, the that to on updated

David R. Lukes

What good Todd, out retail turned that the be morning, opinion changed the our this I has say were ones year is that Hey David. last changed. is occurring so. to thought we changes really the would in less of haven't landscape risky

more we that turned ones not the so. of were some be think out risky And did to

on positive take of feel like roster changing we continues. to you a tenant surprises our surprises the the to the if So the stance the think I and negative, continued

Michael A. Makinen

The one basis included a at is Day remember points thing Todd we I'd add reserve. that to Investor our of annual XXX

limited we're So least part closures, for we closures closures the see budget. a year where see and more that and more occupied GAAP you more absorb in over helps like us course you'll or can But closures we years where year there very And have of is five that this can our we outperformance. front. on are anticipating exciting the years absorb can XXXX

Todd Thomas

it. we regards of how Got relative in then that terms done property additional the year in for XXX be of And could of if that budget guidance? year that the might little sort a to detail out with cushion you've you help points, basis embedded should level think about the that budgeting bit around break to this the maybe

David R. Lukes

to fair allowed a a have us XXX year going But that which a think is a in to -- let to over kind little sum our will credit Sure just I our back of were Todd, I five been But If blended I be I should to Investor loss tilt the year basis towards time a give in some point that at conference and plan give a we speak over assume it's said year the included to you assume was witnessing we points, process, referenced which was churn retail I Conor and thinking was five XXX bankruptcy we specifically points would basis opportunities. average budget. on Day kind that this of going that was budget. of company that the you average what But And is ago. churn the reserve. years. that to disruption to

Conor M. Fennerty

that five Todd, assumptions add with on we're as using to David for plan. so mentioned the just year XXXX consistent And

of So it's XXX points debt basis reserves. combined bad and bankruptcy

Todd Thomas

you a few Okay, guess, recaptured, and restaurants. I

Is think at restaurant are that or I specific challenges you seeing specifically. you in any mentioned Louie sector? Bar concerns or all tenant the

Michael A. Makinen

Louie Inn tends and restaurant across be This [ph] healthy. surprising is Village somewhat quite two Mike. Bar portfolio, the the were to Those business

Todd Thomas

supplement, from a last Bealls that…? and that or that's bills it tenant the that listed your Stores owned XX entity a is by separate is got on just is top quick the in Stage Okay, Bealls one, the last the

Michael A. Makinen

to you're The is referencing Stores. unrelated that Stage Bealls separate and

Todd Thomas

thank you. Alright, it. Got

Operator

The Christy be Please with question go next will from ahead. Citigroup. McElroy

Christy McElroy

morning Hey, good everyone.

of conservatism question there regard all XXX to follow of -- operations RVI up the extra Mike, we're think or drivers realistic, gauge just try to of wanted here next $X.XX what same I the guidance, I here that and basis I common, in in that Just there, conservative of plan. much management G&A growth in good, seems [ph] lower the fourth points? on quarter trying to and with -- we're pretty level two? the of figure in ahead just just just how to to just NOI is sort mentioned year, of of the sort bridging Todd's like also those including I'm trying your which common, gap you it some of of interesting were you store quarterly out rate major Are was seeing buffering the terms vacancy, a and to tune into being much that mean, And more guess impact. reconcile from so I $X.XX run pace seems -- $X.XX that reconciling that sort operations in

David R. Lukes

Christy, it is Hey David.

assets only lot every You budgeting a of one XX suite for is wholly it's know, that with up to bottom benefits us on owned frequency. easy of having of the do single

budget. would budget of say on size, with a a therefore suites come realistic based it's I So this on that you assume individual can portfolio out that anytime a it's we and

one, little and expected earlier team number company than get to and year, were last the a to anchor happened couple period. tenants construction opened had open we their of a the at down a number bit lot at the in able tenant that comes a asking to of permitting look you If blackout things of

some that realistic we from was a budgeting for I little it really standpoint, forward XXXX. So revenue pulled a budget a think is unexpected. But bit

Conor M. Fennerty

three pieces, headwinds. thing RVI those decline JV income. your are The Christy the on moving of alone about I'd And next attributing the biggest and to pieces interest fees, year are $X.XX add the fees, to one contributing for three point or pieces

comfortable budget. So number bottoms change over a are other that's But your change. To timing we really have it's there feel David's We biggest very of year. the of to February up the assumptions estimates XXth of the year-over-year the point, where factors, budget driver point, a and today. our with the course could

Christy McElroy

Conor, mentioned FFO sort give lower in next the and G&A a RVI the around range expectations I'm being you coming you of And especially year to able to RVI with G&A of income embedded wondering but is regard in your what's changing if could how fee off?

Conor M. Fennerty

Sure.

talked about for trough the we kind So G&A. of as XXXX year

disclosure on are we providing with the And we're we a that so trying as to could because investment lot transition. provide. about much you moving a as company provide if of the and pieces we stopped last community clarity years, in three are think There

we're we've the not of for million company it again, million a to and year. the $XX fees year, kind in call year. RVI of expect next of completed And For lower I G&A transition G&A. for to would hand-off anymore especially this $XX

G&A to And in to RVI expect end or and those the be lower so there'd lower fees of that correlation I'd breakdown XXXX. kind

Christy McElroy

this think the what I sell year, the site? how do Mike thinking asset assets continue lastly, in about more expect sales that -- wholly that mentioned will are versus you sort just owned and of you dispositions would GV you Okay, that you

Michael A. Makinen

It decide budgeting the dispositions. don't we're opportunistically selling. property, that Christy Yeah wholly to but recycle site for we anything owned we a owned might be wholly to doesn't have mean in budgeted

of do JV the of hands. ventures really, it's joint more bit venture side The with continues and has to On it's partner out the it And really the that a sell any us. it our their Blackstone guidance have joint other to little under does dispositions, than but assets direction.

Christy McElroy

you. thank okay, Great,

Operator

question will Please from go Morgan Rich Stanley. The next with Hill be ahead.

Richard Hill

guys. Hey, good morning

Investor I same store for X.XX% NOI want for at First the transparency year disclosed without with to back of growth NOI you maybe all, and you five the go to your on guide redevelopment. your Day. store same thank plan But that

redevelopment that obviously your excluded I story. redevelopment is big think and of part a

about including growth, additional So five would be morning? plan your you think the to light NOI redevelopment this year disclosure for willing in of

David R. Lukes

Rich, that's very good a comment.

The in at redevelopment a on it NOI including correct. Investor other store to that presented average year reason a of that whether we're of indeed presentation we're we redevelopment once land X.XX% are for or about redevelopment. air and it invest entitlements lot rights depends plan growth The You have going in assets to whether the achieve we same was that talked to invest as properties. Day use excluding going not dispose five and

So mixed date, we we an it. lease property ground sell to to out property, or far when have sell parcel the selected multifamily use entitled have or

have different those same effects so And that dramatic are store. on pretty

on to And so said couple do can. when that's next out us guidance come that that for much appropriate I give as you ahead we don't why clarity we all wise think that, basis of over annual Having years. it's it's as we think I look with an the

Richard Hill

because growth or be wouldn't a that it, you're but you're to those add debt one of think redeveloping positive Is other there upside? be clarify trying be reinvest to able or it? I'm that, going is you something in to it, up the it and which either total having way NOI just quantify another, fair Got going going be sort that do to should proceeds or will down should or be else. and you pay to way proceeds What to or about properties to

David R. Lukes

because show if a not in inclusive up we store. And a the of not take piece store. it's store show same lease up property we If new show going it'll it to up CAPEX it, and has same entitle value, property, in same I the that's and it sell if to mean, of the reinvest it, redevelop pool. it'll of ground I real going as in Yeah. redevelopment in if think that we we it's in land

Michael A. Makinen

Rich comment Yeah, static the the that only owned I David, thing the X.XX we remember Investor at would add that last from portfolio on the Day. was

one reasons additive So, And bought excited growth it's about we're we think our about. really rate. of talked the excited things quarter, to assets the this it one if about three of David we we're the is

take will those it time you So portfolio. factor But for pool, and into NOI whole for store come assets as etc. through growth think consider to same the NOI another the that's

Richard Hill

back Got how prepared that it. And about going that cash and cash? in, some it allocate now remarks of to -- the cash other thinking might properties, can buying David you through of coming down the just significant or have maybe sources debt, paying amount you versus and coming you're of you're you of use right that new how talk

David R. Lukes

expect We have love to. I'd capital. exciting tilt some where us to do I an Yeah, have here

about to we've decisions. to of stewards we'll is very the carefully coming good this money. significant acquisitions shareholder stock. prudent I at market, need think And and If open put The we bought down capital press, make we which you where depending back the bought look what the debt the on last and see year debt, I trading our assets, where is schedule, we that's stock capital on depending we think back paid means company amount shareholder depending paid of and very we we think be could reality tried on the hard in maturity to down we be

Richard Hill

Got Thanks. it, it for me. okay that's guys,

David R. Lukes

Thanks Rich.

Operator

comes from Sandler. with Goldfarb question Piper Alexander next The

Alexander Goldfarb

morning. Hey, good

few questions here. a just So

or that's into X Pier here BKs and going guidance the in Pier Is that that the just of First, and XXX is of cushions on top XXX? closings. for X

Conor M. Fennerty

owned where disclosed nothing's publicly they're There Pier a So but today. announced leases Alex rent of know today as with have you been paying and wholly had we we four was list X properties them.

So today. kind Pier of X a status it's for quo

Alexander Goldfarb

the in Okay, that guys to on just Conor mean budgeted I'm I something assuming safe side presumably your foreclosed numbers, those correct? you be but

Conor M. Fennerty

worst can Presumably the your anticipating worst. the this anticipate point we're to we we're or aware before the we've all of Alex and announcements done and

Alexander Goldfarb

the Okay, the great. seems liquidation then on And like fine on U.S. RVI it is side. the

guys for sounds a update market pace maybe retail some you being for on able to dispositions to Rican from us you depends this you liquidation, a year there asset how sales? sell it still as target of need much RVI can pretty that give the tough continue disposition maybe and Just curious like the so Puerto around Rico, to market, at but it's just anything at look framework peso healthy liquidation Puerto on don't

David R. Lukes

of of Hey budgeting. our Alex pace is the I press you the and it is in pace about think asset Puerto look judgment U.S. don't dispositions and do RVI's do internal Rico make on whether I reasonable or or XXXX know. at sales release the been they've can press and David, comfortable you we I a good strategy a which commenting we what when look you business has really as It feel board execution. separate They morning. think can releases at

Alexander Goldfarb

that finally, NOI growth. you've on predominately tenant help any Okay, asset but or really on to JVs, small comments wholly assets and owned been continue sales, appreciate all not tenant focus that small to have either I your for you're then just looking acquiring

So assets extra you're the through run of what at? and XX thinking you it's acquisitions NOI about profile targeting be year basis how rate get grow David you're or points what thinking the to for that about be do you XX in do you year think how you'll of expect NOI this looking we as as company, should look these growth about that or these acquisition, whether overall at next you that improving able smaller or the tenant

David R. Lukes

Yes a good Alex question. it's really

of look to we thinking occupancy the capital. I time about data space used low construction two And cost, in invest lot have a more at the markets all to we have capital see landlords even deliveries, if with I I've how several of times scarcity submarkets. ago. retail imagine might high we've you mentioned high to development that amount we As fact good And today the than lot a wealthy deploy spent and want have years levels, of

our to we that arguably than renewal it's story. to when that's through can the and as that get highly occupancy an data And what just to depending coming each using avoiding buying can income say growth starts of that renewal two is where what figure really high and and real tenant properties rent for you a carefully submarkets We're become market the as paying, that growth. NOI internal can Centers SITE at where higher on is in smaller we years, build to the spaces, growth, to we're going rent look we a are a you're customer really next are not company the lot you're similar build shops is compare wealthy market, occupied, And tenants in and lot this out why other As look imagine really that's in growth in core. NOI specifically submarkets. anchor from the get our we're

Conor M. Fennerty

The thing in will format Alex one I his mentioned prepared are right. as remarks, David highlight just we agnostic,

range You'll a see us of properties. buy wide

across you're that majority shops we this right, format. spectrum to retail but bought in assets of see us absolutely buy past the likely of were You're three quarter kind terms

format We agnostic. are up bottoms

Alexander Goldfarb

you. Thank

Operator

Kim Bin SunTrust. And the from with Ki will Please next question ahead. go be

Ki Bin Kim

Thanks.

rent, [Multiple the NOI guidance, opening is go to is store remarks and in Speakers] top points in Bar to accounted Louie mentioned your in back on Village you your of that Just same $XXX,XXX and basis that budget XXX that? guys

Conor M. Fennerty

$XXX,XXX. part said first you question, the missed of your I the

Ki Bin Kim

XXX points basis would reserve? on be out reserve or a of Is that of top the that Yeah. rounding that

Conor M. Fennerty

No.

The no and longer future Dress in today. announced the Louie, haven't for bank that's That's part that reserve income Bar the that's been are the our of Inn receiving, budget. not Village So the pursuits Barn, reserve. are we

Bar Louie, Dress our store repeat the to our Inn Barn, X% future same and just part are and are our in So to point budget, X% Village in reserve. again not of

Ki Bin Kim

Got it just tenant on and anything of there's trends seeing comes and if it comment you're to negotiations can as you kind noticeable? CAPEX any

David R. Lukes

think I'll broad this but hard Ki know let portfolio Mike of size You it's to I comparisons that. make any answer a

Michael A. Makinen

the last fairly several that relatively that our see The mean tenants modest. expecting rents, And were you as mean I expecting I CAPEX shop similar packages can are remained CAPEX net years. our over the has remains on they effective by still consistent. reported anchor

Ki Bin Kim

least as value does Okay, I like but…? of it's it's higher, allowance one rent CAPEX your know creeping I at just looked seem at but when the percent part a tenant quarter the it

Michael A. Makinen

to with think -- is not any I a this going I little seeing bit just we're trends think you're substantial and one see of bumpiness it of quarter-to-quarter answer changes. aggregately But speaking quarter or you to size. just portfolio the the

David R. Lukes

a in lease And renewal becomes with renewing you to closes TI our NOI going company I story. more you're also can imagine the growth think is up assumption income the larger very people that I we spaces, renewals state. our remind up to little to of to on like AFFO occupy is why mean that the maintain one wear of especially as Ki, lease that always in CAPEX going as always elevated to long and is Once fairly flow growth. we're gap we high is scenario a a is of lease thin things starts to areas which through that

Ki Bin Kim

Okay, thank you.

Operator

Vince comes The Tibone Advisors. with ahead. go next Green Please question Street from

Vince Tibone

Could threat Hey, are being the similar get they or without of to to discuss landlords? lease of any Dress X bankruptcy to early the this good leases you negotiated, Bran, are closures how term to fees morning. are get out maybe its expecting paying Pier from anything using you

David R. Lukes

speculate any it. because shed we're simply but I good I that withhold knowledge under and think Vince morning, would not light any I'll us help love on would to

Vince Tibone

cap the on private can well you're in as little you gears, a or Fair about to the today? market transaction broadly enough. more just just maybe you rates what And to then are the seeing acquisitions talk me able shifting share bit

Michael A. Makinen

Chinese said made as when return debt, made make recycling to so acquisitions to we possible all stock. those what that, acquisitions on ago. the joint far by a sure. we their of of year was buyback about down stock, the Having from proceeds six is were activities that return investments were with venture think excess the year rate. on that capital the Yeah, some cap did last Well used reminder in and blended a our institution transaction blended The that own a we pay a

Vince Tibone

changes in or pretty capital or months great Okay, any debt market, say -- let's you availability the are six interest similar seeing so? big private broader in the then transaction just to are and last shifts

Michael A. Makinen

ability And I and properties noteworthy outlook. seen debt we've I secure joint the disposition to the seems And pretty last ventures months certainly that's been of sold six so lot the anything a got readily in of that I we've a haven't out available. window think good on

by little institutions private mixed more properties the But still for pretty some On it and larger demand is a it's of are like larger a acquisitions actively crowd smaller public. and properties the bit the some with seems side acquisition the steep. pursued pretty

Vince Tibone

store little one Okay, store expected I just same just redevelopments major to want understand a to me, for bit on XXX and share redevelopment I sure clarify same year you one excluded points this still, projects, is to contribute correct? from interesting. the that they additional the are more this basis to detail are all last make And could

Conor M. Fennerty

with the the Vince will redevelopment. So same major in store redevelopment included be

phase, the so And Brandon, of collection then assets the Vandas of and first the are contributing [ph] excuse West year me, Bay. this

Vince Tibone

Got to wanted that. I just it, clarify you. Thank okay.

Conor M. Fennerty

Absolutely.

Operator

question is with Wes next Markets. RBC Capital The Golladay from

Wes Golladay

Yeah. Good guys. morning

at on cap reserve assumption at equity NOI by property? the rate or that driven investment, a Looking the is change preferred the

Conor M. Fennerty

mark balance million we that as So $X each transactions what change by you specifically we reserve, team. quarter. preferred know to Wes this on recall property me, the with market valuation can't I drove working and excuse funds our quarter go our property and the

an If you mentioned just quarter it recall was not we renewing. really anchor last

items portfolio it. this two a it's saying usually question. it long of what of and so to size our can't rate that recall I cap input Just given a drove of that quarter way the really really move it's point preferred David's the To not it one but a size it's or is sensitive

rates move. cap operation seen haven't We It's typically an change.

Wes Golladay

Okay, then And any XX on, Investor still space that anchorage actively that then that are XX all Day looking of back? have more acres gotten you're makes you the since the sense. and working you marketing the at

Michael A. Makinen

answer good The to space, a question. no. That's that the are is we marketing answer of all

boxes major you they're working from In them that XX our you'll cases If Investor of them. and but to of we're redevelopments we next see XX TBD on holding of mentioned part supplement at at leased that page entitlements. we're being sitting have some on a we're Day those look because the

Conor M. Fennerty

normal and got of back, And that and anchors. have year. there's point we It's highlights the that's on anchors absolutely amount relevance it us a a XX terms of the comes in Wes lost not back every single

and kind but in diminishing for anchors or more that of excited years other in of tailwind couple the that next material they're vacant terms importance we're know today. have You either about up there's are of we lease

back part that's our it's a So of that other have long And business. Investor months in absolutely anchors to come our the of to since last course normal XX way kind saying us of yes of Day.

Wes Golladay

I follow be I And get the XX? expect that for you you continue would new going to Is some doing a be lease with rent what to those comparable guess anchors up to to would back. the are

David R. Lukes

spreads And low they our lease Yeah. kind included It and store and be our spreads. will in so our of pool Wes. comp new have part double-digit our same seen in pool that for hover area you would that of be pool

Wes Golladay

but pop? the XX, included get you the big level the comparable you highlighted from like Not

David R. Lukes

year. of single we a every boxes Yeah, certain come back have number

Wes Golladay

Okay thanks.

Operator

next go from ahead. Please question comes Morgan. with The Hon Sang J.P.

Hon Sang

just quick me. guys, for hi a Yeah, question

your rent same number? terminations basically lease is the Just that to you the give, footnote sorry, store same looking notes related at lost excluding store bankruptcy excluding like

David R. Lukes

the with to the rent NOI reference be fees Hon We from same starting termination comparable of of quarter group. provided is in loss there impact without XXXX and to store starting third peer So our the XXXX.

termination let have forward. loss the again community rent know we investment are term the starting fee was no loss impact XXXX that will a We that's from and from fees, simply to that footnote going or impact itself fees rent the over fee well any excluding term as as where itself in so term call out

term If impact again for from rent I fairly to just about peer the of think loss the we was points. basis you our onwards. it look XXXX in group XXXX comparability immaterial, lease improve term exclude impact the XX to all was But and fees

Hon Sang

you. thank Yeah,

David R. Lukes

You are welcome.

Operator

Point. The will Compass from ahead. be next go Please van question Dijkum Floris with

Floris van Dijkum

question. my taking for guys thanks and Great,

points what's the a on basis that Just cam breakdown is the and of how question rents have, between lost XXX as compared well that you historic you to as guys reserve -- reconciliations -- levels? rents have

Conor M. Fennerty

I of loss haven’t on that we say just Floris, revenue. detail. would is level What provided focus we

us, loss base rent, that's it's percentage revenue. whether that's all rent, it's whether over So rent, to same cam the

I Dave component. bad is that both piece debt other The a mentioned and there's

bad saw we debt. So

is separate excuse bad base cam to debt well. a that is rent have income which or me, We assumption plus related revenue, as

going on which factors provide of focus all includes you is I not to the loss you level detail, we're what we tell again So that revenue just identified. would

Floris van Dijkum

it. Okay, thanks. That's

Operator

Linda up with Next is Please Tsai Jefferies. ahead. go

Linda Tsai

this for expect XXXX it lease this seems the continue? Hi, quarter like your would what's versus goals occupancy quarter, you to narrowed third to and occupy trend

David R. Lukes

is David. it Linda,

had the out we in occupancy which fantastic and year we don't company I don't the or goals more We tenants say are year. right amount is occupancy the to with space to mention last a production with do that very the leasing will why guidance. have team of have the for leasing goals for goals leasing really happy team. of our the We

Linda Tsai

you're renewal it's XXXX right on couple focused there and Thanks. a understanding up onetime you pretty generate level What expect more And were understanding volatile? now. for spreads then would to on in items the renewables leasing overall

David R. Lukes

I the we've renewal bit. past quarters. events in would to onetime to We a this have expect the quarter similar that rate what to some did overall soften several be tended seen little

Conor M. Fennerty

XX%. you talked to Investor we spread X% the X.X% Linda of range remember And of and if a Day blended from about

consistent So our we're basis. with of range kind [indiscernible]

Linda Tsai

away? an your to might hard fill obvious renew if final one that where include sorry that. Thanks right one, just it is this separate you does question be for don't for and And space tenant to assumption bad debt expect but then that a spaces

David R. Lukes

debt revenue about that recognition, really is so right. just No,

don't tenants base that pay today Floris' to that's or So pay are either point rent. don't that in cam place

just income statement So rent. it's paying that paying sit rent function a tenants on for just of existing a reserve tenants of go is stop tenants. really function The bankruptcy bankrupt the and

Linda Tsai

Okay.

David R. Lukes

to. I'm happy

about well. offline as to If that I'm talk you want happy

Linda Tsai

Okay, Thanks. great.

Operator

with Lucas Chris Capital Securities. come will from question next One The

Christopher Lucas

little for guys. XX begun those so of expectation of good anchor What's terms and color that got the year Hey, openings cadence this on in you've rent. anchors paying for morning Maybe a the XXXX? have openings of your

David R. Lukes

anchors open know like around the holidays. you as typically to Chris,

those So you'll we That's say with the XXXX. XXXX fourth in the or see back back I end should and consistent in quarter. half weighted weighted saw trends

fourth absolutely know be You you quarter waiting. could some will folks or kind of but majority mid-year half open the back a have

Christopher Lucas

Any of will open to anchors number sense as year? the this that

David R. Lukes

typically always lease outs, could a push folks same outs, permitting No, XX. open larger if complicated or we year have mean issues that build that to it have build signed there's you'd the I more but up in

that the providing thing there is count by is range right. say we're of the I'd count. Within wide anchors So other a brands,

higher So area. you me. than lower in pays could have rent income one lower That more a anchors income that higher rents could be that or excuse material much pay

to is other So going fourth ones growth. as not again but I quarter the likely could think in the slip you just see you count some impact see drive but what's well

Christopher Lucas

presentation? you then assets Did don't and I the in David rate the the you provide Okay, for I cap two know investor described the if answer. heard

David R. Lukes

I Yeah, to I a before mentioned soliloquy all year in long I a it. six aggregate last blended had but cap. acquisitions the did

Christopher Lucas

driver related or Okay. is rent is market investment And what the it thesis the two you opportunity, there? behind it sort assets of then below can the is describe remerchandising here, mostly

David R. Lukes

the these spreads. opportunity two For is in renewal particular

Christopher Lucas

back last last relative XX. etcetera, to then the And around stock sheets How the portfolio etcetera? you was guys stock significantly do I just given for the today better question bought think balance time me was shape Okay. much you think about value derisked XX

David R. Lukes

I still in this in show year, sheet we the do some know, de-risked. think, up through I do sometimes Conor of the sources can the you company's number that been think goes is there's I complexity think of the agree discount. have complexity, them. And balance I capital when shape. Well, better And a

the think, business we'll of plan. over So couple about But the I course of pretty what see the we feel happens next good quarters.

Christopher Lucas

had. all I you. That's Thank

Operator

with Samir Khanal Evercore. Your next question is from

Samir Khanal

just fees, same NOI look be Conor, what to I RVI at sorry a I figure the income, this, from point your to color FFO helpful? an missed start bottom at fee with on lot can variability that would but standpoint, FFO, any a there's there's Hey, if I'm focus growth. of know I'm lot a mean I we of trying good around store see I know morning. when I But out

Conor M. Fennerty

Sure.

And So rate me some you growth versus of I future for let XXXX of they the walk some the the have applied XXXX. think company. through big of pieces on moving kind color

I too, well. share have NOI about. as That RVI What And tried call income and to kind are G&A three think talked $X.XX On of then So we've numbers. David another a round a reinvestment we I growth. you fees, top two of highlight we've of is year-over-year is headwinds. that fees then count, I of mentioned two years $X.XX the Day of which to got Investor call, as fees lower higher are handoff the fees Christy terms takes seeing XX% JV income RVI over G&A have that there couple interest capital pennies. the about and is Samir last or in both from and the our lower since pennies as from higher you're roughly in to XXXX from to something this And and other it

in of X% feel year we capital the growth we would five tell really So outlined. and good What it's is and when that into and this OFFO I really about function plan that we how you the going our of to Samir. half XXXX year just business be a reinvest back

see as you and future lot to I of course a more capital visibility see us growth. think XXXX you'll that so, reinvest on start in XXXX And

Samir Khanal

at this that of the to So that's see to fair bottom is point? the assume start it's and you will of sort that then sort XXXX inflection

David R. Lukes

Samir, I think year correct. the growth profile you'll develop that start course of see to over the

Samir Khanal

Okay, thanks. alright,

David R. Lukes

welcome. You're

Operator

gentlemen, any and to conference turn would for question-and-answer I to like session. concludes Lukes this the remarks. our David back closing over Ladies

David R. Lukes

and our joining or either quarter at will all next any see conference. call you for you we Thank

Operator

you your now disconnect you concluded. now conference Thank The has for may lines. attending presentation, today's

SITE Centers (SITC) 13 Feb 202019 Q4 Earnings call transcript