SITE Centers (SITC) 18 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Brandon Day	Investor Relations
David Lukes	Chief Executive Officer
Conor Fennerty	Chief Financial Officer
Todd Thomas	KeyBanc Capital Markets
Rich Hill	Morgan Stanley
Michael Bilerman	Citi
Alexander Goldfarb	Piper Sandler
Hong Wang	JP Morgan
Paulina Rojas Schmidt	Green Street
Ki Bin Kim	Truist Securities
Linda Tsai	Jefferies
Chris Lucas	Capital One

Call transcript

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Operator

Good day, and welcome to the SITE Centers' Fourth Quarter and Year End 2020 Earnings Results Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brandon Day of Investor Relations. ahead. go Please

Brandon Day

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

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

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

David Lukes

front. we start a of the provide and morning XXX% for at our and and communities. of in summary results now fantastic Good fourth providing year work of a strong we've of collection our events with the macro and the year call. finish fronts challenging remaining improvement assets are morning, which growth in with continued of XX% quarter, suburban the fourth wealthy my to discuss of remain and a is last Centers Consistent and want of because our communities. open everyone future. for record-leasing for a around quarter and to to These XX% the thank support with Unresolved and for some of the We was is emerging rent I thank continued X% efforts, tireless Collections you operating on Friday, quarter in are tailwinds, all tenants the of of their joining continue on of the earnings XX% as with product I'll settlement position our quarter continued had XXXX move fourth properties higher to a colleagues this edification. SITE activity and of our then many portfolio support tenants monthly collected running our January various necessary to negotiations. forms rent. and as company

April to take continue is April We've expecting now to a collect which, XXXX rent. XXXX accrual after January any We on repayments for driving collected rents tenants, of we resolving to progress deferral from XX% XX% along rent. prior open of then in rent developed stepping a it's two at that throughout recognizing XXXX were had that quarter since We've call time first way and our come our outcomes on of XXXX. put To and tenants just collected period's continued methodical And through including with we April only XX, period. of the and the base deferrals context, back the important collections. unpaid XX% of earnings long XX% approach are worth

and operating contracts, to reacted proven deep of national to those contractual understanding many XX% tenants national rents, pay withholding our local the to of by a with taxes continue and tenants expenses Notwithstanding access to communities. while are we COVID fears early capital. property around First, their our obligations

extremely within important was to renter these began our occupy that was Over their owed. the that next protecting of properties the to rights few months, realize they tenants and space repay most the

for profitability, for store summer, XX of relaxation even level such the work-from-home improve openings completed why to and the are fourth the control the and in tenants strong their of improvement as and financial in third our program, that XXXX. SITE throughout in as are quarters increasing To other to exclusivity as is terms more a in which our in leases running since XXXX in have continue of wealthy fourth of and growing emerged based ahead forecasting tenant performance year. are deals properties. offered our as the pipeline, has quarter flexibility for our still another more come. us, anchors and the an pipeline accommodate and of the the pre-pandemic increased activity to seeing primary notable late leasing portfolio SITE of levels, some leasing When there's us which is the well to prior occurred the comparable quarter benefits helped anchor second being with pipeline, we of on sales in And new the highest quarters, third income we strong collections parcel XX at household our return with volume suburbs, negotiated It's reason the perspective a of on scale in interest representing volume signing our to Some the deals movement leases a continued demand. now culture, out the the our XXXX. deferral negotiations with approvals tenants trend These communities, add

to desire previously in by of and retailers in wealthiest view flexibility induced done goods, their increase of expected As to these stages of communities warehouse banks, delivery communities to medical and lower convenient driver year-end, of space. sporting discounters, shifts concepts, due cases which rest attracted properties, operating offering parking our drive costs increases in of Restaurants, Friday growth growth that flow the negotiation, suburban we the the store cash pandemic activity space compared the care, had population multi-year formats. centered I a work-from-home the that and sustainable in users XXXX. as The pursued and universe of mile and footprints have will our to a mentioned. with in the beginning not ample already trend We the our number tenancy be are and pickup clubs, of launch convenience, as around services, lease many biggest leading for XX of uptick new access to of these of mid-year our with for curbside to of other last believe societal The is three broadening various relates in value years. anchors all we leasing suburbs,

expect develop and changes to current These many Our investment leasing will they're rent there would that our capital allocation to growth in properties. result. today, investments are initial ignore, and simply portfolio a fueling the too themes growth societal as trends open-air future our be that happening provide capture will apparent

is the dividend fourth share collection flows the first dividend company continue quarter. to This of policy of in dividend, up rate, on our Turning quarter will the $X.XX $X.XX dividend should per which throughout current year this the the and improve. to per monitor declared share, our from based is cash operations Directors Board and

it that, plan. provides our with Importantly, XXXX this business And rate significant flow to to over Conor. turn cash I'll fund dividend

Conor Fennerty

additional that rate. and XXXX $X.X Total million, uncollectible per which $X.X related straight is comment on to million is the of cents quarter million share this amount fourth reversals and were run OFFO operating headwind, line impacted only results uncollectable of guidance write-off rata rent, at a was which termination payments, than I'll fourth of dividends. primarily our by reserve impacted the share periods. Other sheet items Included quarter net was the is first other revenue site Fourth share our discuss $X.XX million lease one-time pro balance than pandemic. prior or David. $X.X and to $X.X metrics, quarter material and revenue conclude higher in few fees, with hit Thanks, earnings normal related of OFFO. per

spreads this quarter in the XX-month In XX terms pipeline lease to tracking was rate down operating to decelerated with deal Based we due lease that at executed occupancy. closures. metrics, fourth anchor of the renewals by outlined, we and on the activity for David maintain stabilize bankruptcy Trailing lease expect one sequentially, today recent level. are largely and the to points Steinmart rate impacted the minimal store basis portfolio

the were to blended quarters leasing expect in first occupied by market by part [ph], to XXXX above deals today, space due in under generally of pipeline deals. may impacted formerly which backfill pressure be lease renewable we pay first our spreads though quarter PureX consistent three spreads rents. in the COVID-related New short-term spreads to remain Based on with XXXX,

a steady operating are and to with half per to $X.XX of collections of volume a are continued assumes top and no XXXX The we normalized forward, headwinds range Moving pre-COVID range [ph] OFFO share. backdrop. the of assumes guidance more the end improvement in collections introducing the occupancy returned improvement $X

with and our expect the year. Bison [ph] which fees over the closing and the XXXX of and in million, XXXX, Additional which at be consistent JV RVI interest interest transaction Other $XX fees of of expect pieces which around and the $XX in immaterial consider of expense, and in preferred the million. include course expect be guidance the first to to include our excluded to XXXX million income, to G&A, million $XX around we $XX investment million disposition refinancing $XX we be which of relatively repayment share fourth quarter, quarter factors to million we to fees $XX the

the fourth on Lastly, not X% we million for on annualized of pipelines schedule on a just pipeline expected quarter context presentation. sign base ramp alone represents Page provided our our rent. share under XX open but of This $XX of our

XXXX include pipeline If also approximately that and commenced in increases you with of expected referenced, base X% is the rent XXXX. anchors of will majority our rent, to the the David XX

balance are of Turning the billion to in at net Details collect is item X X the $XX of of deferrals, in we the composition of expect outlined our receivables Pages our line earnings on approximately timing sheet, deck. future. and and balance to year-end slide COVID-related included

attributable discount would tenants have this from mentioned I last to quarter, who sector. in is tenants the majority balance As vast public of the revenue operating

XXXX liquidity, well-positioned XXXX minimal with of and minimal maturities In terms remains development unsecured future the until no maturities, commitments. company

year-end. Additionally, million on hand $XXX of on lines credit of million availability our $XX we consolidated of have at and cash

time. We material have this at usage no

dividend level company mentioned, and leasing based of tactical Lastly, first collection quarter be pipeline to provides per cash fund significant retained. trends. flow current excess $X.XX the This David which growing the with our share, free is redevelopment as cash to on dividend declared

it to We to to financial our us turn allow advantage to strength opportunities future believe value. I'll And of David. back continue stakeholder will that, with take create

David Lukes

now Thank you, Connor. ready Operator, we questions. to take are

Operator

The Markets. Please, Capital we KeyBanc Thomas session. the now Thank with question-and-answer first you, go [Operator will question Instructions] begin from ahead. Todd comes

Todd Thomas

one work-from-home and morning. What good trends. here? mean Hi, shifts David, efforts about was to act some the the a about was think Blocks acquisitions the pandemic, of recent themes investable invest timeline materializing investments of some result these becoming talked about company the toward of investment should thinking shifting acquisition more I are more and how Portland of SITE's the The you commentary starting you does offensive. as was And to themes? that ahead How we population today? on think of in for

David Lukes

would investments I We are performed to interesting It a roster. format a Blocks of the now convenience, or also little tenants right in at we more better there just Good of type just in three making also even based in very front. pandemic. and And allocation specific less-focused were two a just the and a it's from as made format-agnostic, you the is our one right bit leasing community. kind you more to CapEx. primarily heavily got one more on to that focused heavily you? where so in that Tampa than say before note were other And local of tilted the that, leasing a convenience-oriented is those I towards on most capital portfolio our and other a -- course a lot It convenience think got forth. over in mile were pandemic, the were leasing properties bit on anchor urban. heavily words, want investments ton service morning, if tenants that said properties a the is investment Having be. of look Austin we see of The can and and banks activity in pipeline Todd. is now, squarely How tenant

the fact towards traffic So, I think for convenience. heavily-focused reinforcing me, just customer it's tends be the that to

making suburbs. All that of the coming out these more COVID in wealthier trends bullish lot are convenience of aspect me are on a

where happen to is. to on that's because to in year, growth be continue the this property rent rent start do that growth I where we And which tenants as so, frankly, And acquisitions, make is we're expect the the property. going focus want convenience-oriented to

rent of into we're think be are right. theme going going some either those have growth recession, I investors vacancy choice to a provide have that distressed When part near opposed So, different, assets go into make. a for growth. into theme. a lot a of vacancy get a can They're you as you to buying And term to to and an buying early some

For recession it's split. this that a we're seeing, particular bit of a

strategy. I'll You growth based that leasing you seen makes tenants powerful theme is volume number that we're can and getting occupancy. make the from the investment like of much a long-term me tell investment rent the an more But boy, on calls feel

Todd Thomas

in investments, either the at in Okay. terms low the embedded high And then the guidance end or investments are of there at any all range? Conor, of

Conor Fennerty

that's Todd. No, not,

Todd Thomas

talked David, much that then comprised you're there new new what where healthy on concepts an concepts? seeing or examples maybe that Maybe you pretty and sounds also space the might today? in about And how those sizes is some of expansion the concepts like the some pipeline retailers leasing of terms of opportunity meaningful and launching here. you just of is terms of demand give Okay. of And pipelines, some light of be? it How shed can in new

David Lukes

pretty comp new the this fourth have that percentage and XX, years. Sure, and suspects the of same is that of dramatic. kind leasing a you deals still was of in would I Todd. the looked total total point, the the for heavily at look kind say supplemental At on leasing, strong leasing couple those been quarter Page the shows of last you which if

the do surprised concepts difficult is two the the the a number think out. concepts or under it Todd, new of categories the the I that to the I of XX,XXX because of when continue at difficult. for of category; do NDA, flag contributing don't fill larger And to lot five be two. It's we lost providing have newness in some XX But half that kind to going in think have looking surprising. number today. about going now is is competition years or to XX that next that spaces in to empire. XX,XXX next gains I new new to And are concepts foot driving fourth in me quarter. their of of say can't surprising to emerging banner range concepts would really we're was another that's the on focus and range. are see been seem do think most that then concepts of year concepts last most, of was and suites one, space roll and The think retailers I And within the over But seeing is that I square which years, to I some couple X,XXX square new box So, see square open secondly footage we is or creating is PureX, so heavily the XX.X, most what the new a -- kind foot that's another are XX,XXX, were be our

Todd Thomas

you. Okay, All right. Thank great.

Conor Fennerty

Thanks, Todd.

Operator

Rich ahead. Please, with Hill from go is The question next Morgan Stanley.

Rich Hill

Hey, good morning, guys.

-- -- you're we thinking Walk you back to healthy in maybe that. me very to versus bit realistic NOI what's of wanted of where the my behind bullish? XX% closer relatively talk yours for just Page let why not push a earnings -- XXXX, be consolidated and it get we're through all, presumably more isn't the through -- about little of NOI in thought words, I collected a going shouldn't a the guide? deferrals it you in thank about XXXX by percentage scenario looks given to Because I still Why if total levels still implied be rents XXXX be could First particularly XX. good, and me bit. was guidance a to presentation. little

Conor Fennerty

-- there's right. right. Yes. excuse NOI depends Rich the necessarily no It on impact, -- the deferrals, deferrals, These on classifications, me,

basis, to $X.X not I earnings. decent prior It think OFFO prepared tailwind. cash million reserved If periods, NOI, and You're and remarks, proxy they're just right. it you could going in would you're my a at use reversals $X.XX say, the if were to What from see just quarter be of right. back as a including we're let's for

RVI We have least by [ph]. down also $X will then the step of million fees termination $X.XX And million. fees

or $X.X three million share. those about are $X.XX a So, pieces

annualize just then [ph] cash you're $X.XX, really encouraged our as activity, XX pretty in we of and of important is times but to public pandemic, top at where in companies. to deferrals flow support think there. that XX mentioned by don't exposure this perfect helps collections. our encouraged from -- number perspective, have could going would that we say and seeing point, given visibility. deals collection. I your the you just start we're visibility. some We're I big But an national see year say are not come from us early, on David perspective, even That so So, NOI I'm it's Rich. by But logic, are our acceleration we a how with the through to

to to the think course hesitate I us a anything really we So, until the more on to little of commit get see you're going clarity year.

Rich Hill

nothing little it come accelerate. bit nice it. leasing QX, I to really the a and completely volumes see to less. That's expect volume leasing to Yes. was and I would appreciate back fair I wanted

growth you've which thought of number with interesting term. Centers, over always the different below-market medium properties leases story attractive provides we've intentionally that is about One a selected reasons, of is things for an the SITE

obviously, true, maybe led is that narrative did leasing happened the negative? I'm in leasing -- shouldn't occupancies there's basis, going why a if walk XX-month But And two at the in project that not basis on specific why still they spreads. -- did that you a spreads leasing that not there's bad we spreads a decline on maybe components: through can thing a least but there's turn quarterly basis, anything if forward? because temporary it's So, trailing quarterly to and have quarter there's would saying

David Lukes

Sure.

selection. asset up terms me second, one back Let of in just

to so themes long-term. If you investor investable chance you can RVI we going as almost do time, have on are it to at that think to do a an a you chance was a one a the build did When portfolio work that. spin-off,

could lease new quarter so, negatively pretty spreads other about difference You're those stores. not in And years. properties. building that make which as strong a grocery and strong that bumpy I've last number a properties growth been it had of good how rents, the have property to those from versus path remember we're Rich, have seen get Because PureX XX,XXX would you're spaces selecting to the square you're on really quarter our and recent in spreads doing is keepers sellers. it's locations continue boxes to reasonably for growth. rent kind spreads And and there's had that it and the property, But I rent have historically, and selecting true so, with company times by medical retailers do the have decision that in a Steinmart and It's we substantially roster, doubling happy that was most rents. we this if had do below-market more we a of a you eaten with but place or simply could we're to this ago, income. is thesis of the necessarily where the those times. markets. to story spaces were from by market the good getting that and tenant going it or that had everything have household the not interest a And weak want tell to releasing it's entity, convenience idea inventory long-term, an really add as size, a reverse down because agree it particularly over they by those and The to what between because example just really But keep one of income. bad household and household think couple footage anchored they leasing that almost that's continue question where quarters PureX, and that ongoing the are not rent They you the higher was to Steinmart In to couple types that that's boxes. I the lower with There's everything away starting and [ph] was I leasing going pandemic it That we rents. power, for the it a a is some lease biggest uses if you, impacted important rent minute up. look if problem with it if to be you up is those income. a if kind then what no selected Centers It stability start up think of really, SITE most of is mentioned we of of in negative. a capture pretty in wasn't of I've an growing our number was do if Centers properties. square like below-market at to PureX It's has X,XXX the particular, lot had of ones foot SITE do rents. had concepts, statistics and of to RVI necessarily mark other

can but around XX% we positive investor the the I ago you we trailing sup to of deliver at portfolio kind long-term. will rent months spreads day, that rent Page years in you say So, over bumpy, the going if X% showed to on spreads see felt be of that and look XX I believe a it's X%, XX the couple

We're so, want XX% that not a it's going that thesis. supportive with that here the to be original of up but I'm in and to end are there And long-term to X% to range, still quarter in that negative. we

Conor Fennerty

David's is given to bankruptcy echo the our incredibly vintage point. Just denominator. for impactful The

kind XXX% led that kind on the comprising XXX% Steinmart but [ph] a signed of impact spread So, once to low to that in XXs of has have pipeline etcetera mark-to-market; mentioned we those David a report. what could pool in we in material

Rich Hill

That's question And really a for Transaction me. a seen activity. lot. months it helpful, one than transaction more better the activity And ago. But quick of guys. but seen did, we market or we've tremendous feels lot -- eight a six gosh, not some amount haven't

in to coming as maybe How distress hoped much there's seen Said market? in but a volume? RVI. that transaction supposed we both the about uncertainty with there's have some transaction in? in think want a is that still no weird world period we way, there's limiting haven't where as another spread Are out, time bid-ask the We are don't enough come where in feet people would to

David Lukes

why We've there. There's sold lot and interesting industry seen properties RVI, Yes. think a been reason a you really It's in here the dramatic. the that hasn't hasn't would spread few is but bid-ask it a the couple been of because transactions.

lot to be see we've credit changing the be spread And to there month, was -- it's that following in less as pretty think That equity seems think a I started seems out the more think positive I the as just markets. to I the less side. credit available last momentum the on bid-ask last much year.

performance invested. feeling you I my better to year like constructive the has there's on the be follow So, to But in feels up. with ramp portfolios, markets that open-air to waiting that believe think open-air. from to the most credit equity going lending is do be credit to sector It think this more equity are And market. that I to going is strong start

Rich Hill

it for me. guys. Thank you That's

Conor Fennerty

Rich. Thanks,

Operator

is The Michael of Please, next Citi. ahead. question go from Bilerman

Michael Bilerman

the XXXX. the numbers threw pipeline whole was did lot you sure deals I was the [ph], wholly-owned up [ph] morning. on it David, following assets you and Good that anchor sort that in talked some whether wasn't the a just about XX call negotiation, renewals or about if a XXXX portfolio. in XXXX of

So, at of of XX,XXX how talk bit and least portfolio if X,XXX just activity clarify have, unconsolidated the in don't you feet? few the then the that basis can what on? a There's over that much wholly-owned you And little more rollover it's a sort square have I in about represents about that think options.

know much is So, vacant tenants those I rolling, don't it are -- that much space? how existing is how of

Conor Fennerty

Michael. Conor. Hey, It's

So, portfolios. NOI kind our color some X% Centers wholly-owned. The gave is on pipeline. why JVs that's comparable I And What it and an [ph] the it's the to open of on additional means impact. call it sign for SITE boost

pipeline or at that effectively at today. look you one sign but maybe two If anchors are the $XX the today vacant million not open, plus XX anchors, all

XXXX quarter all come. a fourth that's starting NOI taking you're --if point, all NOI that's as So to

pads, last those pretty is of add would remember, David some number anchors. The the cetera a point for And convenience-oriented deals base groundings, the [ph] for were as point the hunt mentioned, of larger is is growth that got Right? rents the just anchors well, estate, we're than just other recoveries David these The which real seeing impactful. in on talking and just citing. I these we're We've are et anchors some rent bigger are to of pipeline, the mentioned or make I'd rent. then

JVs. So, it's and I wholly-owned question, would mixture answer to original say a of just just your again,

base just qualifying giving you rent. we're remember, it So by also

Michael Bilerman

demand you maybe to to take sort investment thought would I advantage all the those which require levels? small don't on this what do will anchor. have then and relative as data you traffic would some the small start openings seen -- much start capital business feel at of stores, shop move have that Right. up an the And more point occupancy with of to you're seeing to revert and

And sitting does XX%. deals doing? other there the with at so, point you're march anchor consistent way At the you're to what that start

David Lukes

than we're a that activity, Michael. is that question. good shop getting the shop really activity a tenants during backdoor maybe a at open. crystal say more -- been ball, of top wish strong We're anchors. those and it's top XX XX, same look our they a public rent of are it would $XX Meaning getting I aggressive. too It's but raised had again of for said, XX reasonably recession them Normally, XX% shop difficult lot I the lot of I still tenants, in has our what over XXXX. I'll that base echo group companies. billion at of capital fresh you represent And Connor

now. leasing that. happen, of than shops, the that are. momentum do pretty aggressive national think you generating I they the should start numbers we restaurant think wouldn't staying need do on as have need of immediate small front, the and door, follow saying our we kind will and the not I shops more is they're tenants. you're But look we being be anchors. vaccine out, the closing shops coming do So close. to see I a to little anchors back If tend I at as anchors think see going list are that with are that and if shops agree the sales follow not what out I exposure, they But the the gets opening right most you, since today, or the shops careful our And say to from a the

Michael Bilerman

that down in up it Canadian. million. written million, quick million been land And had your last $X stuff was it and like sale the looking Toronto just basis or a $XX sold at for ownership you one, XX% XX just and looked was cost on The for one

just the a math 'XX wasn't go through got that you I So promoted was if to sure interest there. there

Conor Fennerty

Michael front. at recall don't bottom I took out Yes, previously; was that have it's $XX we it's a the net on the the I that write promoter of time, down page -- some for on XX, a there. a so million, page transaction land wanted think on it vary basis, if was structure to a the piece back of land come we of I'd

Michael Bilerman

thanks. Okay,

Operator

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

Alexander Goldfarb

Hey, good morning.

here. questions few So,

and as the back, open similar things should there. for on that were credit the First island, far that when But U.S. on sales and just would rate a I you same same there David into from dynamic the is open going pre the as lingering they the in trends May it juggle slower that coming month? a perspective also preferences RBI, understand sales is air the also Puerto than lot are on from the air Rico? were different island And pandemic or how still

David Lukes

our $XXX Hey, know, important preps question. because, is RBI, It asset be it's and good sale. reasonable you think at that on very to all will a receive you that ended I we million Alex know, happy very is back as do morning.

centers. somewhat performed is open and think the if dominant I a pretty So do there's that similar to in pandemic. My performance well I And US even pretty site durability that The saying you're like assets it's RVI the company in tenant that's a property, for even US, say would sure. the of relevant secondary they look markets, true separate feeling aggregate, though during personal is rosters the the of good. was air

And this so month the what see constructed we expectation year. more credit lending on us been transactions my the and past RBI is doing continue my more hope markets in to getting they've and start if

Puerto For on we Eve. on tell. really as to one it's asset mean, you Rico, know, I closed Christmas sale hard

to than people the kicking are And you Puerto I is properties, but politically Puerto there think interested, country economic online Rico Rico that of the know, to Rico and has A looks as personally Puerto sales say that some interest Puerto And just is going per and but less work Rico. grocery reason bit up US. sales wish conversations We their are don't have of as is interesting doing, people will stores a itself of when I I I the don't. lot did, island. visibility I really how there's Rico. transactions have understand less much traffic if that issues. are at tires penetration. And any that little and credit on capita Puerto the think much the I pick will you in future of profile ahead has trying I what in is like? look own footage that the the to strong square had Wal-Mart lot recently in macro to there. equity debt a dynamics a with the number the of

Alexander Goldfarb

perhaps trends of expect issue the roll lender the the looking market sort to rent that heavy point, positive you still from perspective mark guys there? leasing in rent is a to rent islands. just maybe modestly US well, of same the be, the Okay, here more if downs, that at on to spreads. are Is which Or you

David Lukes

it it the we signed. vintage portfolio, move said a to everything when a leases you're box of Puerto Puerto In vintage lot we so with they're chains in just do with options. kind big into national And spreads past now US, The the their bankruptcy. primary of happens Puerto their right and term, Rican it of of They're when and Rico. do being just rent Rico, see to the everything like in has

their have to a And the of above so when gets market. term, been it them end number of

roll we're And some still down. so say dealing with I would

two so think with I them. dealt probably the a last years of bulk or we've

a little down are month. think that of there's strong as on I trailing left. But the spreads a XX in they So rolling don't are as bit US the

Alexander Goldfarb

David, XX guys one just And anchor, pretty PowerPoint, is still Slide percent the looking then here, of the Okay. shop you ABR. small are looking a here, as have is and small at

But are is the tenants anchors, the something guys, you and smaller your modest, tepid, tenants. big juice think impression drive rent pretty that rents, of is portfolio. the So the real are pretty about My for which to a comes clearly when the we ability smaller well-articulated. spreads, part from that's and small you've the rent bumps

outsize part, are small may small as that we the roll really it is these shops is that more or be driving really So juice about? anchors there the not thinking typically

David Lukes

triple lot And new said, unpack going space. XX it's The filling vacant that anchors you if a large, look near of so the term spaces leases signed existing landlord matter mean, not to at of I'm tenant paying credit National anchors bumps is that like shops. occupancy company, stabilizes, an it's the weighted also to on for every the Credit, a this trying being year Credit general, five is, not The towards growth lot year. rent at we're worthy just any its there's I in which the tenants, see of credit heavily ABR, number every and bumps the that's I they with is on Connor get rent being of years, a that related. something the net, this question. but brand that of good point. solid tenant of mean, leverage growth from the portfolio National Once fact

stabilized of years. geared open and your to product is tenants, is, five kind get tax the type towards bumps you once high The because rents that space high, not tend is growth product So this up fill a national XX% to the be every occupancy. tenant

And so growth. you cap have kind your of on a

I think you're that's what asking.

get down volume, are let's you And is fast. would of we leasing, runs we opportunities the in And that that an that have through you supply a I is with seen that you replace change able And our interesting the small sure a anchors. once to going my have supply. where generally we out while. we hasn't say to don't of is to until that left, pretty of haven't it happened see push term. in Now, and still can rent winnowing we like is, is, Depot think by a growth rent that's kind subject. anchor an mean, left, wave box something lack feels in supply. tell this want Office while, hope my hope which be of inventories or And But growth have rents, I big leaves leasing we

Alexander Goldfarb

Okay.

some the growth, back talking you know, rent part scarcity really other anchors, one is up that's where about as the allows get you just that leverage you're getting the coming the aside. then of And that space, is you which lease from to just the is point underwater So pure rapidly there.

two like which the So of that's good? it step is sounds it, part

David Lukes

means have and Step up. space in And I can not Yes, market At market the demand going where point, low income amount that's there's two to or about tenants mark be I supply will exactly. term, selecting over average we're new Difficulty] XXX,XXX, going they're to Having whoever this years. don't feel of think is which go some like we household have point near that, and the year. pushing up rents. rents on of [Technical leasing, no comparable be is I would in Right. up. leaves. seen we your anchors going the this said and can rents all market to pretty last occupancy start inventory, start

Conor Fennerty

add, we manufacturing our we talked tactical The six in have about I'll with rent thing growth only in other that projects the months. that last

of at look our those to i.e. [ph], you if anchors of XX of SOP actually space, So, Page projects it's reconfiguration one a from is shops. every going

our And years. of up we this continue start so a can couple really to for it's it does that it's but if small of path relative kind enterprise, obviously

Alexander Goldfarb

X% deferral. difference; outstanding, or X% think you'll of pending split the think do or cash finally, about X% sort we that that whether Okay. The X%? How X% sort being about in should And outstanding, just X% collect? remaining have of that we you've collected you the XX%, vacancy vacancy,

David Lukes

they they're I operator, two money. your property goes to normal bad the operator, they're paying is recession, or in think is always question a of pay one is, Alex back much Reason future that look recessions, tenant in look there's open run tenants the up rent, number not out I going would again. basis at away. away? a in question, not there's if and is previous I why but in really they reasons my But business. don't mark of if in a a that's say of your And is, when of two How Reason good that see go going and simply right? number pay you to back a rent unpaid experience their tenant don't

public I this I are of And before so generally first, not With and XX% raised those our if XX things towel XX about throw billion away. tenant why the is you to non-paying year, worse. to they before, tenants mean, ABR, they companies, the capital. access $XX reasons I'm two in of top know, the those like goes a our concerned said, get are respect

perspective an the tenant money tenant So our issue. I running roster don't in is out think of from

down The My about much if and theaters, of types of to able which feel in negative for is see on longer have this like small, the that of our so risk. the experiential there year sign a And a aren't recession point, good But those not just pretty businesses, because risk view low. tenants seems XX future, non-paying caveat they not but leaving. that's don't at other service, full they're good don't the second sectors sit like pretty types leases, causes would feels going the away this be new would part part, hang particular tail retailers, and of those pandemic the paying bright a there most that pretty a operators it's future. restaurants, just if it tenants this are than be of I then eventually

Alexander Goldfarb

Okay, thank much. you very

Operator

from ahead. comes Hong Morgan. JP go question Please Wang Next with

Hong Wang

year? basis a Is it are couple in cleaning tenants roster at end? put sounds other like the basis you that potentially cash just troubles more this any quarter. fourth tenants there on Or year on you the that Hi, put Yes. up could a cash

Conor Fennerty

list quarter. Conor, we -- basis put tenant the the it's Hong, more in tenant cash on Hey or did some fourth

That of the more. much mean, comments, we're think back tracking bankruptcy much over of But isn't XX%. change, we're could the over a ABR tracking. not could though, to come were just some I my there there's year, I course the front. To we on percentage likely it's right. add

change we're of the on change, view cost as of But some could course, basis. certainly our things worried list today, long tenants. about not it's that So on a not you're

Hong Wang

off you've the you first any that are have additional, guess, written so reversals quarter And it. in income reserve expecting or any you previously Got far? received I

Conor Fennerty

results, quantified so absolutely quarter have we We first we that, do with will but have.

Hong Wang

it just XXXX your for clarify is your of of sort excluding Got there Or is guidance assumption sort that in stuff? income that to guidance? and XXXX an

Conor Fennerty

reversals? reserve any Excludes

Hong Wang

Thank it. you. Got

Operator

ahead. Street. Please The next Rojas Green question Schmidt is go with from Paulina

Paulina Rojas Schmidt

if and It Good morning, be that examples. you former for for and box mentioned that sure could specific not X emerged. seeing different. Pier demand you're could I'm it's it's you concepts please if between the And X-K but for size, you're of you also, same XX-K. some would some new site please increased elaborate the on ideal seeing type boxes

could You will Thank you. also appreciated. be elaborate on that

David Lukes

I X,XXX low morning, demand say base. for a the would square Yes. that increase off pretty the Good to is of range XX,XXX foot

They an started indicator that So I couple a there's as tenants a wouldn't couple being an to that are recently that are of grow. take categories. sudden demand. of outsized There new

of a mentioned before, NDA I we're new from under couple concepts. As

that So particularly to first square suburbs range. I in tenants. are so But there get trying wanting about are go X,XXX of of ones foot to they're into that you few into tenants the in great the unfortunately detail XX,XXX that are can't been specific couple and wealthy the really types know properties, is a

X,XXX more concept me. I new the are less for tenants, concepts, logistics. is goods kind larger they're XX,XXX bit really demand to than But the larger are you a I honestly, know, think sporting little got the front there's that XX,XXX is XX,XXX. the to impactful, concepts, there That's some you've to square square retail of on medically foot more think X,XXX surprising boxes, those that runs been been what's more of And got I tenants There and range. are the style spaces XX,XXX for to mean, space you've more oriented. you've it got gamut. kind grocery logistic got foot you've services, delivery taking

the people and [ph] long-term, the that's of to their lot of appear a the doctors suburbs, be moving know, lot from health cities and kind to and suburbs a You and propelling opticians of more in dentists wellness.

XXX wellness of suburbs, kind of that's kind lot health foot the to void. office collective square buildings foot individual health in moving a kind of seem You categories that know, X,XXX of and so XX,XXX those be categories to away and one and of into and the moving wellness suites suite a from square that and filled that

Paulina Rojas Schmidt

it. Got you. Thank

Operator

with Kim Next ahead. question Securities. go Ki Truist Bin from comes Please

Ki Bin Kim

high but you're every seeing sales information the the last on do maybe Can year you're I that time you and foot XQ And that versus morning. whatever about track Good just you. know activity And you're have year. talk this activity traffic? sales in obviously, you Thank seeing? level, that

Conor Fennerty

Ki Hey, I downsides Connor. mean, of it's to one it's on of Bin, tenants. national the David's point

One on little that of and information we them very And collections. sales sales is front. get

And of though, you our would where increases for There we start you everyone great our the improvement, else XX, portfolio are to our put our the little the so [ph] a bit. third our furnishing, anecdotes would starting if has That's have at But kind about I report review, What most crafts to don't sales. fairly you mean, you'll just it's during home taking back grocery, is comps. home been up of I've ramp our tenants get XX think point is tenants. up up information. just down with top business. I say, sales information there. a private I dramatic public putting I specific different discounters a see lager. there I for

I from ago, did. point would some have a on couple But or So on we that months that weeks public the data ago, our couple presentation to a tenants front. see you we

Ki Bin Kim

expect facts It's going forward you if ratio? And don't stores those one of lot was what I was that what XXXX? Okay. your curious And of retention simple report. in

Conor Fennerty

not that retention pointed in pipeline XXX% historically for XXs out think think I on range from ratio, David's do shops than would recession. makes XX% lower it's to report You're that in I your correct. deviate there's We or just me my the but nothing it's now the much our fall And better our even it's in there or given lower. is it's say quarter. Historically, anchors, guess

in anchors, our of but is the for it's So down XXs kind blended probably marginally high. extremely

Ki Bin Kim

in change thinking you're in improvement? assuming about are that? much doesn't or you How guidance, that case your And

Conor Fennerty

first roll Yes, in most of our anchor the quarter. leases

on that visibility is our So front high. extremely

Ki Bin Kim

you guys. thank Okay,

Operator

is Linda go next The ahead. from Jefferies. question with Tsai Please

Linda Tsai

to Hi, growth what's dividend going the about forward? best think way

David Lukes

over is directors the carefully all the dividend I I thoughtfully think considering about and is. dividend environment. is The board to best of way to kind the management get what COVID and carefully the until think more of of growth collections. of that And wants anybody the are skis end looking think the we at conclusive us a of board rate very to growth don't think see really durability our I of

So a simply we're think I And for selections doc. reconsider every really basing look it a board think basis, current and it the From long-term quarter I this on at is ratios collection where the we appropriate. will there's quarter. think payout

a fund is You coming us because know, camp some great hopefully acquisitions lot capital conserving of allows and for it acts up. us to leasing

we're to be collections for with get careful pretty the about once be pretty dividend I overtime. normalized, high watermark back watermark, So the to careful the going we'll the think high

Linda Tsai

signed-but-not-occupied basis that compress? Thanks the rates for mean to to starts that QX the also said that least then color. stable you stay Does And levels. clarify, from that XXX points spread

Conor Fennerty

think don't I so.

the or We've got XX. XX, it's XX. Page If sign, on commencement. got sign of you Page slides, our look I at but think not We've the Linda, cadence

forecast. bankruptcies at going we're point, from rate a Against a the to we're tracking is shop not But commit see bit Least year, just it course for based material time. my the commence over not difficult willing back leasing of pipeline, big little the really the some So, year. additional we're on not fallout hopeful accelerate that's until we're rate, To do think I to to us, always could really but [ph] of pressure. not that David's uptick this we it's stabilized comments, will have our and to start but be material of could to a it yet. half

on of that an leased. should. rigor look, So, Right? least pads got in to even with lot acceleration David We're anchors. expansion retailers, the of We've like half. For we of the least gaps pipeline have not activity, could in our occupying to our Michael, if front. sign occupied the Right? are pipeline a addition the you XX% mentioned back just the convenient also But see the additional or open and in our I base commencing an -- mentioned we that, to gap,

Linda Tsai

you. Thank it. Got

Operator

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

Chris Lucas

back the retention Hey, David, just number. Good going on morning, anchor everybody. rate

number, expectation? pretty left relates it there is those leases? kind to similar have thinking. thinking small options we the As with be Or how about a should of I know a leases just XX no them, but that it's

David Lukes

-- is, give anchor so, A similar and options -- expectation they're portfolio sorry, I'm our me in out more naked… a you're on term what runs little tenant saying an and if of

Chris Lucas

Right.

David Lukes

versus what them replacing What's our expectation on them? you retaining mean? Is that

Chris Lucas

Correct. Yes, exactly. Thank you.

David Lukes

decided of we replacing make out not renew environment and tier, an go means inventory a to term. is like replace traditional proven that our mean and wealthy interesting in can And tenants an throughout reasonable, bump. to tough available quarter, existing churn the recent dramatically, because better in suburb it sure a term reasonable to kind done little feels boxes which better retain much is going that a in were maybe a start past, going have tenant take last business with three probably think good we're years, that we We've going there's a XX% down property ran -- the to have more to very out spot low. anchor in I go ones. pretty tenants And an we least than year, ahead because the been run purposefully where four past I this get Yes, are the increase. rent of it by pretty They likely to because a of the we not is them. or of some be so where like we when top to kind choices be want might be existing vacancy in. we to And at looks CapEx What's tenant in that's

feels And beginning now. of of much at up that good of be kind there's like you with position stronger and and-a-half downtime, property. to right long-term we're year so, maybe a a That's in the but end a it

the is retention So, landlord question environment. to might or stronger replace tenant. side whether rather the in wants be from tenant the the would retention, this The that keep

are Boston, tenant active, would tenants anchors them of last take advantage we've So, windows as decided you in it upgrade best them to because number it's forever. when an doesn't example in these to like there that get and roster the we Shopper's a where of have World because replace been

Chris Lucas

national on to right they among want to the guess sort leads they which thank footprint. work their put was I how Okay, sizing lot a tenants think want of that you conversation of right sort reevaluate And that they hold that. about for terms Is their sort with of now me consumers build I of pre-COVID, other the the distribution? as is this, of conversation of to how in part

David Lukes

Yes. haven't really interesting. fascinating is personally That's that opinion one most developed subjects But of the a on. I it conclusive

has and examples I the get demand I And talked about you XX,XXX, more space, that's anchors efficient. COVID. It wanting you is been and feet a reason XX,XXX for of reversed know say square years XX,XXX, have to their almost for that feels have like number As during increased. downsize space there where that's

in sure is. full more box reason box less year. the blitz not So, I'm we're doing doing exactly We're this what leasing. last

type at pulled to store loading the the in be at appear the the type of those at does to hard time dock, of kind that the footage. different down building things of and inventory take have are permit time they the just to making store. drawings some want looks and enough tenants a customer involvement It's on look inventory footprint pickup from permits, same of just a in lane shrink of delivery square and footage can you you delivery different store. see and your new And the We new what some like square of their building have to it sure if flexible look

might of footprint So it trend that bit. like be reversing feels to little me a shrinking

Chris Lucas

group Okay. venture And question you and and joint of in have the deconstruction your for how Blackstone of guys future basis up in got handful of portfolio potentially? of thinking concluded between me disposition be now Thank a a that. versus for long-term should the the that viability proceeds about on you've them you picked that assets you we sort wholly-owned on last basis, assets wholly-owned is of that a terms you

David Lukes

sell that that a tenant I that a assets. And think you couple going handful core be build. up There's to soon or our to there's really strong with can existing that contractual got should into growth we coming assume recycle the same want capital there's fairly thing we portfolio. higher have because They've we sales. rent bumps outparcels

some to bottom you necessarily always probably a to and rather So, tactical of as lease say portfolio, them I third third out continue money subdivide redevelopment growth, of we've they're box soon, proxy of growth. there or vacancy. make ways to of and out will be of going of a same once the I or in them just run We're them assets, an our not And selling rate risky, see me, growing it would add recycle. To fairly of run that are but bad other it's stable at the have the the nine I'd of we in are a can of because rest couple or overall think they third where bought, portfolio. outparcel sell this and the industry,

Chris Lucas

That's this have that. Thank I you Great. morning. for all

David Lukes

Thanks, Chris.

Operator

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

David Lukes

speak and all will very quarter. much you Thank next you to we

Operator

to now has you for this concluded. presentation. Thank The conference attending

You may now disconnect.

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