SITE Centers (SITC) 30 Jul 212021 Q2 Earnings call transcript

Company Profile

Participants

Brandon Day	Investor Relations
David Lukes	President & Chief Executive Officer
Conor Fennerty	Chief Financial Officer & Treasurer
Richard Hill	Morgan Stanley
Todd Thomas	KeyBanc Capital Markets
Katy McConnell	Citi
Samir Khanal	Evercore
Alexander Goldfarb	Piper Sandler
Linda Tsai	Jefferies Group LLC
Floris van Dijkum	Compass Point Research & Trading, LLC
Michael Mueller	JPMorgan Chase & Co.
Christopher Lucas	Capital One Securities, Inc.
Tammi Fique	Wells Fargo Securities

Call transcript

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Operator

Good day and welcome to the SITE Centers’ Second Quarter 2021 Operating Results. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that 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

Good quarter operator. welcome SITE to Thank earnings morning conference second XXXX call. Centers’ you, and

Joining me today Chief is Chief Executive Officer, Conor Financial David Fennerty. Officer, Lukes; and

posted distributed In statements aware our from onto securities presentation Please prepared at may intended morning, press within remarks to of is website certain financial forward-looking release subject the laws. which statements federal support addition we of and the the our have be differ to our statements. www.sitecenters.com, contain and statements slide during that risks today quarterly forward-looking supplement meaning results These call. this uncertainties, our our are to actual may and today’s forward-looking materially

our reports Additional our SEC information may Form found on our be in with most filings including in recent earnings and and XX-K XX-Q. the release press

measures addition, time, on will these same net measures my financial operating In income. FFO this in Executive supplement. comparable today’s be Lukes. today’s pleasure quarterly found is call, financial the discussing financial Officer, of and be our FFO, operating GAAP Chief measures introduce store to David At we Reconciliation to can it most directly non-GAAP including non-GAAP

David Lukes

investments as early earnings to operations portfolio and of and Leasing assets with with suburban activity for in talk our morning about million quarter summary call. discuss of in investments. external second periods. the robust. velocity our $XX strong in our signs of expectations, joining that Good deployment of very remains events, We rate, we’re our and I’ll start results second flow lease you a another grow our and quarter this had we morning will ahead communities. future the of seeing thank quarter well of which capital And through nearly briefly wealthy look our then our

quarter to our and to to $X positive a XXst, last we’ve traffic trend open of we’ve and means and And the The deferral assets onetime real and from demand as collected properties methodical XXX% the and Collections Included is million that also rents. the our payments our national to due first, the in to which We’ve nearly base continue the elevated our collected customer success the including resolving our our of higher. the tenants, of at deferral flow second collected second up repayments speaks quarter for This quality of cash second, unpaid team continues also to million grow. approach level XX% deferral rent; Our credit calendar collected to when the of cash remain $X.X applied us, the to profile XXXX space benefit base rent are XXX% things: in date, of of rent. to and speaks XX% estate. make strength year’s for tenants. portfolio XX% year X of of which tenant-by-tenant of the payments XXXX. rent durability contract of rent, of date basis now XX% of our

total Moving had XXX,XXX we feet to square XXX,XXX feet square of with quarter new anchors. including of volume leasing, another X leases, activity elevated of and

we traditional the did up XXXX. all on will our I’m last and goal this lease where continues side just operational quarter, clarity completed million, the what quarter, case Needless is on on depth last deal the the benefiting a $XX deploy size large the year. for And neither which trade toward relative We X optimism new pipeline in Both anchor our of format capital. on capital which good as half progress beginning of company. under is to To believe million give context, acquisitions, investments. properties over we the year the and tells as are we all is details of and our second of is $XX of We in allocation from data more this that to yearend. well the external activity, excited we as culture mentioned totaling on first a signed level and by of year, wealthy activity convenience from from almost the more alike. negotiations, deals to of really in acquisitions our XX giving to I have dominant frequent are and customers and area, the value first some due these XX% and But a located, expect to are more flexible put from the proof in convenience months We tenant suburbs, has anchors well. be the quality this XXXX that multiyear we’ve in of Conor see about phone site. rents from is with pipeline our customer rising count know this us tenants say, More are opportunities both the performing the recent leasing of of locations and agree greater and tenants an grow. the X the money trend. mobile closed scale and us visits to increasing as In work-from-home

fits or in the that the simply depth result size thesis and of tenants shop CapEx, design our will concepts, match therefore, growth ubiquitous traffic retail the the rising and high durability with for rents and these is investment corridor low located Our many exceed portfolio of that and the properties role today. along core

our continuing to properties our have and are convenience submarkets. these heavy element in growth of rent a that access set from investments to capital. benefit tailwinds. acquisition The to target foundation seeing those in are of is our we’re And We program many growth

$XXX RVI. investment will has you as in coupon company Directors Board when preferred As has spin-off no decide many to defined repay preferred this of SITE need of with million at it investment know, a our Centers The no RVI to maturity.

special Centers make agreement Rico its our an all shareholders, SITE with to The can X-K its original United of the be the sufficient team. sell an to with of $XXX is SITE assets properties, June the would into to entered common investment July However, be has RVI RVI in closing in quarter on which sale briefly a RVI repaid expected dividend balance recoup preferred entire million of is transaction conditions. I in the its because preferred which RVI’s closing the in Puerto which mention would filed located why X States. payments spinoff wanted must to of before proceeds RVI Centers fantastic remaining RVI, outstanding various third to for million, XXXX. to fully subject to position are also of continental work mortgage had loan, as This an repay of leave $XXX the XX just XX, XX.

I’ll their So company contributions. that, a you of sincere to And and it thank Conor. to for with creativity colleagues across their over all the turn my

Conor Fennerty

guidance Thank conclude half our you, considerations comment first with balance David. and to on sheet. I’ll and quarterly second revisions discuss earnings XXXX results,

items periods share net there quarter of tenants. quarter. impacted Outside income, $X.X reserve results the primarily million reversals no to uncollectible impact, at prior payments pandemic. and one-time share COVID basis that impacted this $X.XX were almost revenue Second by of primarily were Total the other per from SITE related revenue or to uncollectible related included cash material from related

rent higher open course pipeline our million our schedule updated we earnings believe lease quarter. on basis X% up an on tracking the And the but sequentially, In consistent for today We XXX,XXX we the are commencements operating was of since which points believe rate grind commentary in second quarter that the SNO million annualized will continue with the not of of feet, metrics, rent. the the XX the has expected of bankruptcy provide start ramp or year activity second Page We X we terms pipeline that represents annualized over of that minimal portfolio signed, Based pipeline base slide. outlined, had to the portfolio rate the year. $X of leasing occupancy is about and square $XX David now that lease an our bottomed. of base

If you’re new of our remains leases, activity as of remains negotiation about pipeline anchors also all in leasing include the various total the in base rent referenced, X% and unsigned strong. that David stages the

end Moving normalized acquisitions, acquisitions. without recent OFFO pre-COVID to guidance $X.XX and XXXX per higher the of of to improvement operating a range results, of of reversals, revising prior driven top half The end a range additional million $XX occupancy investment we’re $X.XX activity. to range by backdrop, including assumes to continued assumes collections and first along performance return period more retention. guidance, the share, with commencements on additional a The bottom to and and rent stable no collections incorporate earlier

fees quarter per sales asset reflects third range guidance $X.X And be to new now million about fourth to the fees, RVI expect and we RVI For completed date. XXXX quarter.

running on XX. XX%. updated as adjustments. future the owned least of Store that after is increase OFFO for XXXX period increase down imply factors As XX.X% of Same significant prior with from reinstated the range XXXX asset to management at X% Same and is effectively assets are fees our first levels X% excludes June adjusting of period earlier to any We’ve same reflects that NOI results The Store NOI range prior guidance guidepost the and due about half The also from reversals. based drove

second pieces to quarter, the third outlined consider on of a earnings Page versus are moving Lastly, our as there slide. quarter the number XX in of

sales. in and decline to First, quarter, asset had and as we non-recurring second million uncollectible of I will JV revenue sequentially previously $X.X the due fees mentioned, RVI

up. offset the investment first half second I in versus deals year activity. in act the rent as several the first we year Second, will impact fees expenses will by and G&A pick third quarter, lower half first factors half increase be the of the partially back COVID the term as headwinds and as would expect positively the lease commencement related to of These had year and

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

pay their sheet capital As by open suburban are with of week, air our to these of have trends balance estate. encouraged highlight strength as last been that do balance XXX% effectively commitment gross their we deferrals real and XX% quality We’ve our tenants high today. deferral total to all access and national mentioned, of David collected

just deferrals, repayments, impact as including cash $X from In rent $X terms the gross which million of collect last limit periods. earnings to on million week, in future basis tenants of will base remaining we have of

position and XXXX, minimal in until unsecured terms future sheet the with in maturities commitments. minimal balance XXXX a great remains liquidity, and redevelopment of Lastly, company maturities, no the

we and common expected repayment Additionally, With lines of that, sale turn they allow $XX million This $XX take David. a under we million the investment program, will drawdown. which on drive $XXX under liquidity growth have with hand, of back million stakeholder million opportunities full RVI to and during for preferred of forward future is value. ATM the of basis second on raised availability quarter credit, the our cash advantage $XXX along increased available as overall us of to sustainable future to I’ll it equity arise

David Lukes

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

Operator

you. Thank

We session. go will Stanley. will Instructions] now today first the Rich begin And Hill from with ahead. come question [Operator Morgan our question-and-answer Please

Richard Hill

guys. morning, good Hey,

and relates congrats what want to it doing going some unpack do. maybe to buying nice exactly RVI just all, said quarter I assets. you parts of on moving to and wind-down First of new as a were the really you

long management was down? like wind a So that? place fees the your once can after you refresh I remain RVI first, quarter down. months us how But refresh do Conor, or in wound thought us, can just just you is maybe X it maybe RVI on

Conor Fennerty

recall every are months. Rich, if Yeah, effectively you the X so reset fees

you I tell kind that some December months impact we So last But there will and XX of is own when nuances are that effectively sold. an the fees. asset of asset XX, June if the would X just next

year. I Rico sold. expect That the would Puerto per I $X.X is lower, in said obviously – and comments, be quarter the have and when we third this if million fourth think quarter my to we So

implies next rate year. run it So half a for the lower first of

RVI’s of proceeds. to think reinvestment your be OFFO impact the will from point, big asset I factor I sales. the ultimate of going the driver, the is of That kind think to be

Richard Hill

guys second, What that’s X.X? you’re Is Yeah, a see And now? can for a what here are cap where what’s lot specifically acquisitions the and happening it you market at right the now? But in you – Centers? just with acquisition it going doing is Is with mean, acquisition thinking SITE wider? buy tighter? you do can helpful. RVI you insight it given rates you about have thinking about I obviously of

David Lukes

cap active buy. for It like months the been that Xs, X And Xs point. kind It high feels to assets at David. months. to ago it of type kind last of in pretty the feels six low it’s of feels for we’ve Rich, we they’re like like mid-Xs rates whereas low- this like, underwriting would were

think underwriting growth. is is the I really that more what’s driving rent allowing

ago. looking pay when more they’re unlevered And it because is buyers than to at so, the the the was are today IRR, for people growth able X months asset higher thought

think impacting cap the rate. And really what’s I so, that’s

So growth really that core to great the quality for I want, to going cap the seem down. appear same think be going-in rates IRRs unlevered about there’s because staying assets we be

Richard Hill

more one just Conor, then, And question. Helpful.

a level. you becoming more you over quarters, years of the nice really on offensive and several next to that really the a buying comfortable about done be moving to, taking conservative down as your would leverage Where assets? think You’ve several job

Conor Fennerty

Yeah, Rich, question. a good it’s

We while, leverage a where pre-COVID was back it about point, to on levels. to it haven’t focused because been talked we’ve getting so in your to

area low-X the in today. effectively running We’re

the talked on about would pre-COVID saw leverage as we range? duration. Sure. to to if X debt-to-EDITDA X we’re tell times top the range, we you, I But would we right the a on Look, are range. of opportunity, end Our focused as we just was move

dependent you’d end it us we’ve to got low-end I midpoint of the otherwise, feel think But kind ATM of amount expect it’s opportunities. runway, the So dramatic comfortable RVI the at of our mean, to mean, I relative debt I range. again, think right enterprise is that part the the nice of high of if stay our in maturities, we’d pretty terms in But range. capital the capital to have amount on the The proceeds, right? the cash, on of I just is, access hand to With we substantial, value. or a preferred. liquidity the

Richard Hill

Yeah.

So that’s you XXXX that’s mouth. more mid your want confident don’t for things just It the about you’ve up? my not pulled from I Conor. This And to any by early vocal. yours. been say been XXXX. you’ve still really Or me. question recovery a very like end Hopefully, But David, talking – to one really normal that’s I’m are of pretty Those words, helpful, putting strong words or in was here. better just are do quarter. getting feels XXXX feel Is not there that XXXX? chance not and

David Lukes

is of terms levels, NOI to what Store in mean, Same You being back mean? XXXX you that

Richard Hill

frame or however, Yeah, it about normalization in think you at a NOI, would of NOI, but levels. terms total We look total pre-COVID that. however, to you prior

David Lukes

things like XXXX. quarters memory, mean, think said where to, I get is I Rich. has to year, two mind, of really are kind Yeah, in my a to own my lot own back this I think ago, changed, I moving is feels the it XXXX

of forward, the feels is going XXXX say momentum what there’s higher said lot don’t I of if thought. happens bankruptcies options many we to and all like percentage have case true. and it of a have that previously hitting emerging those we that X are I back faster we of bull bull quarter, last their think things have the leasing an than And levels a we where tenants I kind case, would

a hitting of much had we’ve tenants today, of their As higher options. percentage

our that to less, what really is look we’ve same-store guidance likely this which higher. a expected. effectively XXXX saying introduction to feel XXXX had would for you mean, levels, claw I than this therefore, to have think our going year, if So like. be we’re means is we’re is back downtime year I of leasing And more does lot I it at

Richard Hill

Thanks, very me. That’s All a for helpful. guys. it on quarter again. Congrats great

David Lukes

Rich. Thanks,

Operator

Markets. And our Please from come Thomas ahead. question will Todd Capital next KeyBanc go with

Todd Thomas

Good thanks. morning. Hi,

question, going bit. it a like First seems activities investments, just up to back picking little

and the Can repayment you about improved And, not should considerably the investment might about that and of little RVI a some far we proceeds? goal more redeploying returns And which the you those You’re of around the bit the pref, million generate? you you year. for the the to today capital from deploy. think $XX just pipeline $XXX expected how the talked gives about talk timing outlook

David Lukes

know I history great hole fact had pocket. timing. where the in really teams in when got burning mean, invest. management of, capital question, I capital succinct a you a a of answer because that’s Todd. It’s there’s long you’ve is, I now the we as your are wish position get on matter have into trouble, well we And a a to

try us below market. point have and growth. have would can means are long-term that be maturities that you’ll careful the say assets have feel very me, a we to see I core to I buy in have this that rents to cycle, where or stable think market at that core that So properties mark assets the near-term you

example that we Addison now an asset all of or Delray bucks are of are XXs Miami leases at and So XX properties, of just signing leases in leases north foot. place the our in bought, shop we the of property And in are Delray the XX XXs. kind a

to to maturities. feel be So is the great There’s is going therefore, there. we there a mark market, near-term growth and like

tell assets pick you, that our can more up. But we acquisitions. find, pipeline going forward on like picky we’re be very the I So will to will going

Todd Thomas

we we traditional more anchored expect that centers? so, Or investments oriented these rent is assume targeting company targeting to that And are that you’re opportunities here, you other think about should to – see or like and the growth generate seeing for in assets describing? to convenience you’re guess, the returns multi-anchored SITE fair should Centers when future I we sounds it it exclusively almost

David Lukes

unanchored leasing we And of we that And properties. there. find to It’s is going you’re seller, at. buy that much where a There’s have demand. I sub-sector. if centers just in tenant roll bit has tenant convenience intrigued to it. If a it’s believe growth too we’ve vacancy. properties can looking of you’re exclusively I find reason activity. active think been do been have everybody has not that some those activity. Part very a time by rent sell and a not great. type a we’re been much some I too harder pretty today the that’s that, is mean, to There’s the ton to little durability say would lot larger think we the I of

if going not figure so, bit very seller, market, don’t that be And that have rolls, easier think you’re a sure going a why get it’s you’re those you’re going smaller to little the to And been try into out to mark make And rent of larger any leased it that’s larger on sell inventory lot so far to vacancy less. a to has I negative properties market And that we’re up. we a properties. spreads. these to in and careful

Todd Thomas

I unconsolidated a few company then, and company quarter, and dispositions – completed just a the guess, completed winding the last the question, few liquidating. during down or Okay, has RVI is

platforms appetite wealth to a market? the vehicle, that new institutional the in there’s within growth, investment And what on like size. appetite decline also, form or is sovereign so, new partnership the management JV and whether for to or end, today continue your asset Curious a

David Lukes

end first. Sure, take our let’s well,

I supplemental is this imagine, are ago, to mean, seems to getting redevelopments, to are JVs, years story winding read, right the our there fewer spin can relative easier you fewer fees, down. there As because simple a there be has now. company fewer JV are X very

now. simplicity the like I So right

have We capital.

is which another do. to growth. not purpose slower that at blocking leased feels it I a just kind do has to recycling to nice out a is to to internal opposed We we’ve just we probably serve up just capital assets to and capital. some growth. It venture, If have all, generate joint that tackling think I’m access way a purpose. And of like of leasing got We’ve

portfolio ago. less durable, become our with capital. growthy, we Chinese but effectively strategy and So dividend was investors recycle trust a with years the some few That can they

that’s think doing by a hit we that that would again. high I of deal hurdle type

last me. over no a switch haven’t let’s been question, sector is X your there’s more we and now months, see of months. I couple side. of starting your been question to in making money the is the institutional found more right we So the sitting second He’s the that dealing lots of But institutional the money, think recap. mean, a is moving acquisitions. last John gears insurance half be would more are of with we into sector kind here There which that on to money, partner capital, into really sellers pension for looking and with

to our use so, right capital now, think our just we’re going own is we the I And continue own strategy to and spaces. on which have lease

Todd Thomas

right. Thank Okay, all you.

David Lukes

Rich Todd. – Thanks,

Operator

And Katy Citi. question with come will our Please go ahead. from next McConnell

Katy McConnell

Great, thank you.

Rico So you can how also, your sales the following from discuss Puerto assets sale that’ll RVI, G&A the the And afterwards? the load? left overall be of could GAV impact

David Lukes

Did sorry, you RVI assets sale, hear you. barely remaining you Puerto Katy, I I’m say said? that Rico the is post the GAV what of the what’s could

Katy McConnell

load? that’s And how then, sale just could Yeah, impact G&A the your right. overall also

David Lukes

the G&A of if the you’re Okay, time I months is, that everything already second year closes, down way a happens by couple according this look I for answer you can is, year. deal half, last the this to think plan, which to the

change so, other G&A to of effect and when year costs into you don’t And XXXX. there, our wind-down material any severance take calendar budget see our real I for office

load. G&A But guidance we For when G&A could incorporate our think into be I don’t there when that it’s for changes. we’ll XXXX, significant. that’s XXXX, give But some think I

we’re getting that the less issue think the happens I and the that G&A. what to bigger is about fees

as not us, their again, properties. assets give they’re remaining us. they’re X but RVI, doesn’t the company the in by for of the by managed the And far GAV owned As values

really properties. comment can’t I So remaining the value on X of the

Katy McConnell

in you preferred how deploying than near thinking priorities you’re for term? then, rates And new acquisitions Thanks. with, cap Okay, the are about proceeds remain the got comfortable lower assuming it. other on

David Lukes

I’m I less going-in there, a X% been is comfortable they’re than for guess, have been that I have the think because lower X a that we to X% rate say if mean, next CAGR with, And buying we’ve I the growth properties. I relevant. cap wouldn’t seeing is years. little assets bit

so, And going-in rate. cap lower a does I having merit think that

why really rates that’s we’re cap the is reason many seeing the growth compress for looking you’re the think I of rent things because there. at,

So it’s partners of that want sometimes JVs a Other we want the good do sometimes with not source And uncomfortable I’m uses for it. sell capital, and that be to JV to can we have of buy. there us. inventory that are assets

We have there. a that’s still remaining out preferred

So I capital. think we do our there’s other that can things with

I to make think decisions some good choices the year. over we have next enough

Katy McConnell

Thanks. great. Okay,

David Lukes

Katy. Thanks,

Operator

next come our Khanal Evercore. ahead. Samir And will Please go with question from

Samir Khanal

Hey, you you’re I curious shop for seeing is the Thanks healthy, shop look just recovery I what for but does mean, on the the taking anchor guess, in guys? Conor. space of, my leasing on space well, space. question. how kind

Conor Fennerty

Pretty…

David Lukes

to excited answer it. both We’re

over fighting to. But… who we’re So gets

Conor Fennerty

I Samir, ahead, David. Yeah, – go

David Lukes

Samir, interesting, leasing has deals you that’s shop or if quarter at half that really the were in materially does done, activity we’ve unique. You about a mean talking production for last of because But half months. little at half you really is kind leasing our that know of this quarter, shops. And last what’s been X the our was anchors, look it mean, is when two. look I box were picked up demand the total that exciting, shops,

are thing those about credit. The XX% that’s of deals second national is interesting

the pandemic, which there’s a that’s emerging that me, I kind theme that it And an the tenants the I the means well so tenants right think And into does may deals local during doing to seem better have it have get struggled credit is provided it of of opportunity for tenants, I now, quickly. mean, with look doing at growing. they’re we’re capitalized assets. be national shop national to number to

Conor Fennerty

of we efforts. bit the have of kind June, little point, to see in our this NARIET shop we’re to of in fruits at opportunity about Samir, the highlighted David’s we Yeah, a size. starting some And the

So definitely of as a, significant date less exciting a usually say And it would commencement source and us. I upside is is well. rent a for part capital quicker the

our us, a and is to point, portfolio of even few of a part exciting. excited a volumes, of which were then big David’s first which number more they to about So national for and are credits,

Samir Khanal

And to then, seeing are maybe mean, here. mean, open are sort robust demand I it’s they of suburbs, mean, standpoint? And, I mean, a I areas on first stores, you mean, site? differences when guess, coming side, geographic the retailers certain I you from clearly trends? what just are on targeting are I formats. are been like to very you that ring the I What seeing

David Lukes

or Well, intersection we there’s slower. have northeast been southeast and only to region. code, ZIP code in And question feels like it’s have coast, right the west urban really do less that X whether the those X box no in ZIP right honestly, or it about that or assets. think do the shop And I you leasing has more the to with the getting into wealthier

And Miami, hit was don’t leasing the a in $XX hit we’ve if better So the and watermark for just think We’ve a doing $XX than any or region any hit high a $XX themes we’ve means, $XX in seen in is foot where Cleveland, shop rent hit Miami. that We’ve Boston, $XX Portland. in Cleveland. foot. highs in We’ve property Boston. all really time mean, level I shop one I other.

So, be portfolio rents really a right in lot sub in. wealthy growing the of the markets I we’re shop think, seem markets in to

Samir Khanal

so Thanks Thank much. you. Got it.

Operator

with from ahead. Alex next Please Goldfarb go Piper Sandler. And come will question our

Alexander Goldfarb

How Hey, are good morning. you?

David Lukes

morning, Good Alex.

Alexander Goldfarb

questions Hey, here. so X

a First, you’ve clearly out redeploying David, case laid to be patient capital. in

million RVI presumably in this year Puerto you of guys $XXX will preferred that of once around that the centers get their So end presumably the transaction towards completes Rico.

of this capital? assume equity be maybe you unsecured to issuance that million, based? going to are debt, is, up million, to million? should debt you or going some million Is prepay to we the mostly balance redeploy to $XXX your $XXX Are going more being should capital? $XXX about you lever if incremental to the just by like So if try expect it cash this Or think $XXX about we go question or

Conor Fennerty

Alex, question. of Conor. we’ve a of a ago, David mentioned Hey, as a multitude great It’s kind And options. minute it’s got

of I think about to think it to the way back tying kind question. this is easiest Rich’s

Our range, target to X times. general debt-to-EBITDA X we is

once factor plus you EBITDA an on here of EBITDA judicious factor in today, But point, David’s capital, $XXX time received will to To the take how disposition leverage if take buying million growth deploy it proceeds cash it’s the excess and time. it have be it. again, in in our slow hand will or we well of that So in of you kind million, $XXX excess $XXX you probably we’ll growth, we’ve But of million, power. and targets. in plus excess

So approach. kind cautious be that just to want on of

Alexander Goldfarb

to to Okay. you’re with stock it’s point, sheet? like And not that and out do money, to balance go should buybacks on just expect we that going then, sit the

Conor Fennerty

at wise. everything. want create where good leverage really deploying is leverage right, feel enterprise like capital, you’re the know, can about, as but seeing we at you, But the goes growing change. like – and that point, capital this to pretty We but look in about spot use door, a lower best It every To opportunities feel option, that we’re wise. we’re dollar always tell every you will excited we really in always looking I think could your of out investment every we doesn’t externally It value. At it’s we’re we’re time, the use. we point our we stakeholder go

Alexander Goldfarb

did second $XX And is, your on about million guys the you question Okay. ATM.

her that had I that was and ticket? you to his to banker show sort make card you mean, a to some your ATM or something Just sure curious, of you printing desperate the worked guys are manager remember [indiscernible] that just or

David Lukes

It would periods, with I has blackout more say. do to

Conor Fennerty

point. we volume in years it’s Look, David’s Yeah, X to not the been period blackout utilized facility a last have here. we’ve

we We’re where we’re have it another excitement about really a the excited of just to as enterprise, capital. investment think, speaks to the think seeing growing And, our creatively possible. source and I opportunity

up draw to as is opportunities hit that capital so a it. got hit of the we’ll about part advantage Alex, then kind of cost and proceeds, you familiar you’re the liquidity find more if know assume those One feature, we’ll ATM build there, reserved, exciting we that of with, take if to it. and So that which year I we’ve really should

it, a and of at I it So at. excited sound for asset we’re looking asset fits about lot. doesn’t $XX we’re we’re nicely sizes, But, a know, million an really range looking maybe like

So that’s it. think how I about kind of

Alexander Goldfarb

seem odd acquisition if time to Right. you to But said million, $XXX see guys it on very be to picky at issuance, the your conflicting… that you’re so seems answer previous taken ATM be on and the being would they put $XXX looking you million,

David Lukes

ago. Alex, Rico Yeah, just announced a few until remember, the Puerto wasn’t sale weeks that

Conor Fennerty

only could The I thing, got Alex, capital. we’ve proceeds The we – come RVI to potentially to deploy that mean, point, year. could guess a year back I our this

on point say draw longer to again, little invest I we can talking no liquidity So dilution, we you’re creatively timeline, my build our – capital, a about around cost mean, we’ll that if bit take reserve. would ATM, I so think And down. advantage, it, just the we the there’s we of we’ll

So the continue would we it appropriately expecting we it’s utilize match investment really to that can set, like what that to opportunity or seeing fund are that I we’re expect and fund. like great like we’ll a call and investment opportunity if that. or feature we capital, we

Alexander Goldfarb

Okay. Thank you, Conor.

Conor Fennerty

welcome. You’re very

David Lukes

Alex. Thanks,

Operator

And go our Jefferies. Please ahead. with come from next Tsai will question Linda

Linda Tsai

Hi.

normalcy ago of forward? and leasing spend to elevated TIs about a the talked I you think expect given on CapEx TIs quarters going remaining do leasing couple But sooner, future. a return foreseeable you for less to

Conor Fennerty

I you our we open, as anchors was volume. XX for more But negotiation. answer We’ve no, David a second in about increase. was think should the – XXXX reasons, get referenced going activity to that host leasing tenants of leasing depressed more in Linda. one for is short say CapEx been were

of As as half going start we get up. NOI. into will signed more the I per up. you back and then don’t The only go especially in a to versus them to probably CapEx should to nuance CapEx year to just and XXXX clarify, the and expect XXXX expect of comparable our leasing this foot and cost XXXX, percentage levels XXXX, dollars go just out total But to door increase open,

Linda Tsai

And that what’s the Thanks. signed coming $XX but terms opened, cadence not of in million the then That’s of online. helpful.

Conor Fennerty

think weighted on back Yes, in we’ve this slide. earnings for in chart or tenants the half spring got obviously, a open bottom it’s weighted, Page we’re right? I corner Linda, So typically, It’s of – our to And the the or end pretty that slide. in fall. X back right spring want the year. through

and retailer if think it or commence out get for chart, opportunity look XXXX What’s XXXX. an a our till XXXX for if to speaks XXXX some they’re us quarter leases it, this even at interesting of point, and I event is, markets might though really the same we’ve XXXX. to till in and thing. XXXX you this not got deals rents signing it’s into a fourth So And then sees year, David’s

kind I why demand of think and speaks so excited seeing So, that we’re to the operationally. we’re

Linda Tsai

tenants of what’s cash one, paid $X cash Can you’re basis, is when got to when sounds quarter. on Thanks. state? The on this a final us basis, was on a and it what like basis you’re ABR, – considered in million terms cash percentage of remind steady be normal back in that amount you

Conor Fennerty

Yeah.

XX%, end XX% the first it’s of the the end quarter. the at of of was as it quarter, So

few of we is down, of to took off pre-COVID would or modestly zero it. kind So normal basis, levels cash a I close say steady-state tenants

So the just we’re we’ve I about got tell a really long way operating you, to would environment. go. excited

we in we’re of to a of pattern really outlook on got next tenants, others, bit basis. we be said, quarter. need percent off. in for like tenant about And to But our couple excited really ABR, we little see before a I kind second cash about we’ve our a going We’re to to saw the But cautious need some years. see take of fact that a for more. we And that

So we something fact call I we make months. before hurry, I is you, no you’ll it, would down in make sure gradually the met our pattern over of XX think tell to need next, it’s and But kind we’re wind see any changes.

Linda Tsai

Great. Thanks.

Conor Fennerty

You’re welcome.

Operator

question from ahead. Point. come will our And Please Dijkum with Floris van go Compass next

Floris van Dijkum

much if good, it or Look couple than congrats much, balance to you which other pretty Thanks of the guys Conor, the of prior, leverage. year better to, be I’m one shape trying thing, debt is for to on I you sheet the years now short can one obviously, seems reducing a things, last taking maybe was of term but in understand, my around question. expand guess, on alluded the X pretty years.

XX meantime? some – Some don’t how you on that Or, of do Have debt? the – of X are you years? to you some bonds closer due extending or planning do X your obviously, of for Anything do to come peers you in years. these can X

Conor Fennerty

would definitely have XXXX. sheet, unsecured And of in Yeah, kind a of not balance I remember, don’t Floris, kind when question. ours. middle would the issuance comparisons remains our as group. XX-year good XXXX, initially, first I it’s intense the but changes that’s focus lack duration, and maturity on impacts peer an are on on hyper focus to the relative focused sound until making say like of in the child, started the to we and some you we of where we front Look, us we

XXXX. kind XXXX some have straggler in do of We bonds and right. absolutely You’re

up our are with where even you in there’s extremely maybe our but couple us improve to maturity to the with some today, that. for the an just we leverage duration years us you’re would amount next stack, I right, is liquidity have, further comfortable So debt tell of those. there upon some we opportunity for feel opportunities clean of and

kind to if would again, so there big most talked opportunities to kind that. is extend they’re that. The extremely probably years. bond really unsecured maturities, that But you the some further of investors look important is we focused that’s only to XXXX, thing to on other look of me, X-plus are XX%. there at the important debt don’t our And So, it’s to start at yield just, the until add Unencumbered close I unencumbered pools.

So, good it’s positioning around felt and bonds I really our the something mean, IG there’s I community. our today. And security our conversations with incredible about

Floris van Dijkum

Conor. Thanks,

talk Maybe the behind but federal bought asset there. your and can So process get it Charlottesville, buying I you in it’s I thought thoughts asset an asset? right about acquisition relatively also a much on if press, and the you maybe side, the growth asset new next to a on noticed market, on market small also didn’t that think, in the that in

Conor Fennerty

X.X Virginia. right. there. presence of leasing conversation. It feet Well, square in Floris, sure. I a mean, million got you’re of it, lot doesn’t a lot warrant given Yeah, the about whole size got We’ve of We’ve

and I very Barracks probably Charlottesville think, targeted interesting the area. very, of of corner intersection, an Emmet a traffic highest submarket. in we have the The as is high always whole one intersections traffic

corner the from around right school. You’re law the

credit. of Teeter across there’s a corporate store this Kroger right, Verizon really street. particular mean, You’re I and asset couple a Harris right the and high has shops. It’s a

growth some that So one aggregate kind some to this we I And we’re some an would to say credit. it’s market have would that. that do good durability that and willing love indicator and is smaller properties of

corridor. this at looking properties more along we’re So

Floris van Dijkum

And And, out assets for your in buying last, properties JV as your consider Would of within cap some other then some pursuing in JV. maybe terms have lower? of less Charlottesville in or things really the of obviously, growthy, were recently. other things and rates more you these such stakes you these opportunities are as your Florida – did you interested transaction gotten assets the well

David Lukes

of natural the Yeah, JV I be think careful. that So does one that is the be of very dispositions. benefits at JV inventory familiar program us right? to always very it for you’re got I again, we’ll looking make it always And, with, think you’ve potential

little might a them flat. good but of assets, be Some

But that think, partner to we be right, growth. see them I opportunity. really would our an might you’re when Some great sell. assets with of on it wants depends some as And,

Conor Fennerty

assets in consistent Yeah, change generally of Floris, what own question, tying back one pipeline today. but coming our kind material to, I these we into guess, of Todd’s that is JV

from per only So is there’s be today. se at from have buying point, sophisticated, profiles. would To growth is, no David’s opportunity. are excited you’re buying of right, But they’re and more with you’re there partners, them we discount, to as could I thing, extremely our JV we’re clarify a really partners just it partner own a what market. The variety consistent

that’s only So make I on the that. would clarification

Floris van Dijkum

first or of typically bid you right offer those on right Do assets? the have first a

David Lukes

perfectly some experience, partner in legal a wants operating you sell one contracts, honest, buyer, if accept estate the whatever and my need if have your it. natural be that debt to the happen. mortgage it To to make especially typically most is You way real logical to the want say, partner doesn’t

mean, investors, a lot You point, to But don’t have a Conor’s are know pricing. view our there’s hire they sophisticated have I a again, when they of broker, partners on to want to benefits. they sell,

when and as a with. to to start we can and pretty in done you inventory decision past the for some in partners dialogue. it have nice year. common so that Blackstone them we We’ve And last bought theme, the assets, We It’s to JV from know, assets then make we a certain past. you’re familiar some wait extent, is from a bought

Floris van Dijkum

Thanks, guys.

Conor Fennerty

welcome. You’re

Operator

go Please next will ahead. Mike question our JPMorgan. And come Mueller from with

Michael Mueller

Yeah. Hi.

prior when are guidance, are one, in other quick second guidance? a I’m period the collections FFO Just anticipated any curious for XXXX that baked into there quarter the

Conor Fennerty

they’re not, Mike. No,

Michael Mueller

had. all I That’s Okay.

Conor Fennerty

remarks. there, I’d But mentioned the my make in comment I only prepared

a per of definitely spread right? out now entirely and reversals cash deferrals million. smaller slides, been to there’s XXXX is between down And see $X really just more because but you a little out our amount, XXXX, deferrals bit repaid. deferral the XXXX can has from basis So running se, are pipeline more not our We’re

in kind deferrals of versus we’re kind cash the if or of reverse mitigate because numbers. from it’s of theory see impact in the see it kind basis second quarter, reversals, out third impact – simply you’ll that we So of should running and And quarter. to fourth should

Michael Mueller

Got it.

Thanks. sense. That it. Okay. makes Appreciate

Conor Fennerty

Yeah.

Operator

ahead. Chris go question come Capital Securities. with next our Lucas One Please will And from

Christopher Lucas

the Mike’s quarter accrual your move was from morning, of some guys. questions second on the of Conor, as feature second to the to upside in cash following relates good Hey, up quarter. may be What impact potential it on results? basis of Hey, basis this the

Conor Fennerty

a was It rent, couple Chris, immaterial. straight $XXX,XXX call it I would a so line of

Christopher Lucas

accrual updated is of in that there guidance? – as cash additional relates guidance, then your accrual And to it sort Okay. upside to any included

Conor Fennerty

se assumption no There’s will that not. more there’s or off take per people on people No, cash basis. put more

Christopher Lucas

your it of relates your Okay. And debt then you about question to last my is for thoughts duration. sort

of your debt calculation think about of preferred How long thought preferred a instrument. in I do stock you duration? being your about duration predecessor very sort think

Conor Fennerty

it say, bit. about a quite a think would or talk about I quite we bit it

For XXXX, our equity on used we used press. take capital, we to us, used equity really depends excuse out cost press to XXXX, right? it in And of – we you XXXX, me, out remember in take

in point time a debt. sense makes And your and entirely there’s it of and say depends structure. almost capital would on your periods I So cost your there’s time, preferred cost of in where equity of

place in think want equity is to and question point costs of that press. every kind relative other to about The next the of is, cost to what our out and we’ve or it year opportunity if June And how nice it’s big attractive, I think maybe the it of capital an you So as of there’s make as use of it. in structure for know, just every But are a the enterprise? equity. to preferred, debt until we year got decision take part Chris, you

we’re say but that to the just if hurry prices we in no then trade make would it. I So again, there, consider

about it we it. think say about you way would my thought do I it’s our forward. think going said, So kind with that’s But, about consistent of I how of thinking – it as predecessors what and

Christopher Lucas

leasing What seeing be in XXXX open with you, whole from commencements for demand you’re for in rent with compare retail of your for level? their then, demand Okay, national XXXX right perspective the to having would cycle your thanks. terms conversations essentially terms competition the now the XXXX think does of leases leasing which to retailer’s the when of that and XXXX? How to And for are signed, sort clients. getting be to I you that would sort buyers, about it David, of in and

David Lukes

the XXX,XXX last is the we’ve that name year somewhat a that they’re we given that’s Well, change quarter to and there are what are say But exist year. in I mean, didn’t uncomfortable to shocking, biggest mean, tenants that higher. happened credit I can square that where seen new know going COVID we’re ago, concepts. And they’re is we it’s there’s and sign in tenants. I that next feet that probably

for is an with lot those they brands want in want codes So buy, zip a of open the been I has of the up you’re for wealthiest they’re And to have starting mean, to on us. come guarantee. same have multiple sub-brands. a what country, case do really credit And the brands while. and kind reviews. the the not out to high And the do I that’s new they when picking they’re site, parent think with that seeing roll portfolio they sub-brands to

cycle you be lot coming where are filing liquidating. up If line the seems X out to X of now, survivors And was to or a ago, with the retailers and a remember, were they’re opposite, roll where new new it old years starting there concepts. and the brands

that piece it. of been a So big has

The to backfill leasing were just that’s shop Two ago, ago, had a significantly is other one we right-sized X. demand shop that than Pier years maybe theme tenants Chris, more national is think X credit better ago. for even space. years or years two I is the interesting There X

to unit. are of that Now, a there’s to a fit a sized half that dozen dozen strategically type tenants

years the now. growing examples to it there was And it lot ago. right of like open does X like than buy much feels that just it is retailers So a feel are of is better

Christopher Lucas

you. Thank Great.

Operator

will And ahead. from Tammi question Securities. our Please Fique Fargo with next Wells come go

Tammi Fique

you deals missed guess, I’m Good on investment the XX I like in anchor that am doing. sorry grade remaining cash just But that And, the looks you. of are or anchor XX this. with just entities. if I wondering, mentioned the credit morning. Thank I’m are I what you presentation, deals curious net

Conor Fennerty

to say, ever before. from kind in think, anchors comment, than I would I David’s there’s, demand today Tammi, more of depth

have might entity, some David’s not IG But they point, balance doesn’t might net not mean depth So you position, an demand. materially it be debt. we’re not might to cash assume public in be or a is worse doing if they’re should a they IG real or there a just or they in sheet

a if period, sure we in are with investing in today, the making so, doing anchor believe we initial And anchor and term. just our excess that right of over XX-year business their their which sheet is in well we’re we’re longer an plan capital significant, balance it

it’s ours talk our the of XX mean, XXX I as speak collections So multiple it’s heard we in public, to focus just are public. the I of capital top And you’ve about quarter. mean invest to you’ve that X. other matters are to tenant. quality. times, in XX a criticize to the us. not XX our seen It’s that top and reversals us our more huge our And this of

Tammi Fique

any pretty wondering And of if maybe is that in you Okay, And in SITE just benefits is guess, today the I space? just talked more. been in sector that by scale It’s driven I then, way, you’ve Thanks. in do the another size just and obviously enterprise. one, acquisitions way Centers. the But are a part a plan think this accretively great. one guess maybe I’m terms of in busy growing for M&A the of time asked extensively bigger And and if, sector. think long-term I about better

David Lukes

earnings, parts, we’ve want sales do be an to that which in stance. the when a take Tammi. some position preferred there. we asset acquisitive is is We let’s of got X no Well, the and got that back. We’ve in There here good retained we’re amount in coming are, question

leverage And focusing more lot it it grow, be growth. will a We we G&A. does on the that external is your true

of I know it A all beneficial needs it’s that company. M&A succinct is so, portfolio But growing pieces. think And the don’t to necessarily the activity. a in easier to lot grow be to result that you times

to having operating worry methodically. right And with super-sizing have XX know, I about that about at think deploying from and and being perspective, And careful core we pretty or the so, that very that size along we don’t feels now it think grow to assets, wholly-owned super-scaling. assets like I a kind of we’re growing good portfolio,

Tammi Fique

Thanks Okay, for great. thoughts. your

David Lukes

Tammi. Thanks,

Operator

David our conclude will like any the conference remarks. back I’d for to question-and-answer turn to this over closing session. And Lukes

David Lukes

you quarter. Thank talk our next We’ll to for you joining all call.

Operator

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

You this may lines time. now at disconnect your

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