- Earnings call transcript Q3 2022

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Operator

Good day and welcome to the SITE Centers reports Third Quarter 2022 Operating Results. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to Investor conference Relations. like Kukreja, to now of Head would turn over the Monica I Please ahead. go

Monica Kukreja

Thank you, Operator. Centers third Good morning, and XXXX conference welcome earnings call. quarter to SITE

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

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

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

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

David Lukes

to the the a Leasing budget, Thank leasing which remains debt-to-EBITDA third that the thank fives, proceeds our ahead had thesis, continue of less you, with shape remains of from used leasing activity, existing with convenience footprints volume operate team, with sheet to Monica. We execution lock-in our basis you a expand strong goals the in looking and continue XX%, great Good suburban despite XX markets morning peer the portfolio looking shift our demand we of in earnings significant activity. sector to for I'll balance of with our then tenants in along space, transaction rate locations year. and renewals. quarter a commentary quarter, to with to quarter tenants be move available ahead in This and sequential and where low points and increase wealthiest comments overall. number our group lease their sales well with to with national for results invest the call. very my for joining leasing, another their to to productive having asset in consistent is which start very resulted

ahead tenant shortage better to drove As outperformance I details will provide open schedule, with coordination mentioned, to our this Despite get amazing OFFO of part which later. on job ahead construction of of operations, was headwinds, teams and no tenants quarter. which working of third Conor primarily quarter an continue more budget our on do

X.X which third this company leased with Moving materially noted, a in activity remained million years, demand to is despite leasing, as the amount very has largest total in smaller square of quarter feet the leased, footprint. high and square footage five

leasing, of terms strength square standout. of with we had shops XXX,XXX from as quarter new another of new feet over In national a deals

accretion. Quite points Club last from deals pipeline of basis points Starbucks, out portfolio construction are coming XXX XXX sequentially on quarter the lease a from year beginning Visionworks, Cava, up now The shop that XX% XXXX into be deliveries Our with under signed and our few Dry months. immediate Sweetgreen, of in the pipeline redevelopment to this and with a expected tactical with was other was leasing third are expected development year. first leased tactical our rate Bar, basis in deals broken this bit projects Champion,

publicly highlighted leasing we share reinvest bankruptcies. will previously less quarters in national the mix by space with traded and next absolute moderate expect had the square a activity lease used negotiations, level completed said another through the the have convenience for current $XXX year, on shop be XXX,XXX two climb portfolio small over from lease tenants. in simply That marginally pipeline activity, Shifting we have negotiations, portfolio activity Looking to to Based believe another unexecuted our recycling Madison lease Atlanta sale of debt down considering we continue proceeds of of capital Pool absent Phoenix. rate Net at in as the to which our strength to we announced on credit were will the A million. of forward, feet transaction the pay to quarter assets trending end and of of and that we the lease.

The with we've restaurants XXX% for a mid-X% wholly-owned rate. for top last investment in quick times of portfolio We also the to which a of property consistent XX% range cap plus at key which of one credit and unit Columbus and CapEx, to with four four transacted property the and existing proceeds five-year year. double a and leased service at in digit properties. this $XX is attributes Arizona, portfolio yield quarter underwrote number and a FFO CAGR with to of all We service pay cap debt down a thesis. used in a our in a the convenience in market and the X% opportunistically implied X% a the a stock is property a and is the tenancy The market our largest of at one drive-through rate of NOI repurchase sold company national mix the was acquisition Phoenix, XX minimal million of a

another convenience of asset Moving opportunities the this acquired Hammond our on to in to few excited more key convenience XXXX. MSA given bought property remain The miles a located for was presence potential asset grow is our about Springs, west market and the Atlanta, we in portfolio another ground. just largest in which our we

sustainable right will would result growth In AFFO continue to of are -- we're local the relationships and allow the suburban located goal elevated CapEx growth. the and Because continue direct our measured the when acquisitions as Going strength time, and convenience summary, decision with opportunities a allocation the portfolio have prior encouraged retained profile risk by rents of which our several team cash this the have very forward, investments, OFFO pleased managing and past generate sub portfolio to quarter. utilize flow we IRRs of traffic sub-sector our profile the other and communities. operations, will into at credit And value with strong capital we remain opportunities wealthy assets SITE The type be which asset for and formed us the fully as turn class at years while our prudently in adjusted will properties recurring we to to with grow we productive within against flow we high cash with options investment intersections consistent that inflation, Conor. of proceeds arise. believe this to with over years. Future current future accelerating always it growth have low balance increased prospects, in unique that create are stabilized another that, to over our entire sheet. I'll with property Centers Thank stakeholder our recycling and long-term from the you

Conor Fennerty

balance results, pieces and quarter heading then I'll the and David. XXXX into on moving discuss and XXXX, quarterly the first our the with conclude sheet. revised comment of fourth Thanks, guidance some

tenants, ahead results David totaled quarter including also of budget. higher factors The quarter a earlier and about and share and Third operational mentioned, the $X.XX $XXX,XXX prior as of rent number These and from settlements in were rent straight-line included higher to cash to basis operational to relative plan, income. of overage due related per commencements factors, occupancy periods. of payments unbudgeted ancillary from $XXX,XXX conversion

a which lease company's rate XX metrics, is XX.X% watermark high basis volume the operating portfolio sequentially rate its of with uncollectable unpaid feet was related quarter, revenue the filing. $XXX,XXX in X.X% line our year-over-year item of revenue bankruptcy at leasing effectively a as $X continue basis had to points Highlighting the of pipeline. our commenced third We XXX at revenue Despite our third in of of up over annualized result were or leases uncollectable representing NOI growth. point leases with X% if in basis the to well as rent commencements. terms of quarter above impact reserves Included negotiation the the over recent Same-store million now XXXX. schedule unchanged X an in on rent. of the our that, represent of the base These X% leases backlog, lease $XX the points base updated and in third leases provided for on pipeline to you earnings of slides. in pre-COVID and up were this XXX,XXX signed back In headwind we XXX Page also and of year-over-year quarter was Cineworld offset ramp square pipeline SNO added over new quarter million annualized include from grew expected the XX%, new over

our Moving on to outlook.

results, Rent the fourth guidance G&A we to a are $X.XX expected where up revenue range uncollectible our to full-year quarter end We raising per XXXX $X.XX impact range. of the OFFO and commencements, are a factors share. to largest and in revised swing

had despite is top leaving we've macro Details unbudgeted budget. press prior also fee prudent guidance third quarter or unchanged, the and outside same-store raising and headwinds. for no slides. debt earning the same-store other expectations NOI are the of the bankruptcy, release believe fallout are range Cineworld we on outperformance to We environment income To-date NOI bad in our versus end which of considering

few For quarter. the are consider a from XXXX, of to third fourth moving pieces quarter there the

of rent third First, $XXX,XXX we as and straight-line in had revenue non-recurring $XXX,XXX I quarter. the previously uncollectible of mentioned, non-recurring

at total fourth generated $X.X the $XXX,XXX Second, which million third for fees almost of quarter, quarter. fees almost JV in in share the $XXX,XXX sold Madison assets implies NOI the and in of JV July about

summary million of quarter income, which quarterly included about A of higher two-year Page X our third our slides. the than on Lastly, trailing is factors average. $X.X of $X lease is million earning these termination

Moving to XXXX.

into time, clarity We items guidance wanted but at a are New to provide Year. providing on line few not this heading the

about we assumption RBI RBI. sales. expect activity JV fees to reflects with total fees, expected additional asset contribution million $X with on to-date This from JV First minimal and along

G&A expect $XX about Second, million. be we to would

to location terms leases our split of total is as are on be rent have $X.X million results or Cineworld the and Regal Third, non-recurring we reserve rent locations base relatively on XXXX. we muted of exposure. expect And evenly the generally one XX. sheet, total The to-date, of based of it include but $X.X September we least will reversals year-to-date leases AR three of based with have our been remaining across in on in three Cinema recoveries that None at recapture rejected XXXX annualized lastly, balance conversations. and initial reversals, million likely

Pool company back with the XXXX, and ending take balance and to it with Xx, us the availability year-end remained the opportunities through yield of Finally, sale, With end, over XX%. million X.X%. forma growth. just exposure associated A In is the line the million fixed to rate portfolio profile charge of they floating and was transactions, drive has allows a these sustainable swapped to of that all-in loans $XX of debt recently quarter and and an capacity termed At X.Xx, of we rate our $XXX the arise liquidity of as over term I'll potential unsecured sheet. X% maturing for provides at third Madison debt just loan as to our on that, total This of part recast the debt significant leverage was and of repaid turn substantial remainder debt. fixed future David. Pro credit leverage for quarter, advantage $XXX a million rate unsecured

David Lukes

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

Operator

the [Operator you. now Thank begin question-and-answer We'll Instructions]. session.

comes Citi. Mailman Please ahead. first go from Our Craig question from

Craig Mailman

the want on just Thanks. leasing. morning, I David, Good everybody. to touch

we're and about just of renewals? of to you seem detail is with some seeing how color quarter-to-quarter headlines did updated in kind much the the this the velocity seeing what of of retailers in to think still also seeing the forward pace any, And by demand And landlords. there curious pulled if higher curious kind renewals. kind being the among of among you're pace year fundamentals kind do You quarter-to-date. the a just There STEM could of market you're led improve give the I'm you and be actually if seems confirmation some

David Lukes

so of you, very let that I'll a Craig, to strong. it's us can hear little to if be answer hard and you leasing and it. miss the activity know we any try But remains just then pieces

slowdown seeing our supply. to move put local have leasing. a to a had on seeing slowdown we've remain number very to the that XX% like things feels remainder in that of we're we're out people the like wealthier where at the that can properties when additional suburban I we think the that's or I give that of from it's either pending of is duration only larger retailers guess I higher is like the there's your in feels in-store slowdown the two trips year. this I and or square continue retailers negotiations convenience to And in in we store point, about we the One you the this and center But prepared pandemic it demand. communities going kind the and are fleet that is the of operate, personal remarks, short recession quick an through abrupt are some that at the come at concerns color their going consumer of that footage speculate the would -- fulfillment. that's a not And for minds. from clear the say point halt of macro community. just I mentioned mean using second now trips inflation that in kind is matters.

And out that can as and suburbs footage get trying into wealthy so much not to these just they much there's square left. space they're as

leasing part space executed with most the national action that mostly see activity leases just much chains. that rising leases. them So our demand national they and where seen that's and of XX-year is prompting small haven't I think credit we why is want with to to local and of And tenants we they secure haven't in rents shops. It's many

Craig Mailman

be that sense. quick bankruptcies. guys of you of That you rate follow-up any and one have how what or and XXXX right & could had Conor others, lease for the going some feel in the makes a about absent how for some that just there your Could mentioned think maybe went we room Cineworld Bath on that. of the debt? impact just the news, give been forward, should tenants portfolio And sense you with kind or embedded may of whether it's have in you about bad Beyond now type reserves through

Conor Fennerty

Craig, it's Hey Conor again.

You're hard to hear.

unpaid related hit equally me. entirely I we was miss three in rent any third me or recapture pieces I On unpaid the revenue said remarks, cash fairly one locations. excuse in is quarter AR were the to The taken to specific the split know from there let hit three the tenant. bad previously, from my I response. additional the Cineworld, and between So so had if no say, expect reserves the of quarter, is the on or debt basis We should revenue, tenant that third

feel folks of had our would and you quality of watch think we've good look we really at successfully back we last have. you named you portfolio, tenants. level other bankruptcies, tell I for record, before to are we've on individual demand And this can't years the periods track been at portfolio speak to higher the As with I our tenants five the locations backfill other had the those rents that if list. and tenants. in just names better some and able we've We about

good bankruptcy, in portfolio uptick is the if and obviously feel prospects of control, So a in our about there it's we general. but the really outside backfill

XXXX, and next as And get year so to provide guidance. we comment address to on happy closer that the

Nick Joseph

here And Joseph it. Craig. Appreciate this is with Thanks. Nick

more. one Just

change think given that then about of how acquisitions here? in have either As you of from in return or capital? cost share buybacks your you how your think hurdles do about terms the And deploying adjusted capital,

David Lukes

certainly there up. return our commensurately the they've borrowing costs. gone thresholds Well, have with mean up with I gone

been But of ton rates two we and cap so we fast. I where think that than so higher cap were have this at buying it's hard quarter ago. out quarters there's past stock settling down to the a from buying strategy done there, to is it sales respect things using on flow moved say not have With little rates are deal that capital paying to the of likely we've been continue. that to-date, as really we've asset or proceeds debt, allocation a And we're source. assets of everything a bit really or whether decision and will depends ins and

Nick Joseph

Thanks.

Craig Mailman

Thanks, guys.

Operator

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

Samir Khanal

seeing just good all of the months. us through the those of both TIs Hey, costs leases there. potential signed given getting the of David, over morning, negotiation. you're those concerns Maybe and mean under potential slowdown the any negotiations? of forward that's from six what everybody. versus changes mentioned of you whether terms what Any last feet I it's come those maybe walk higher in XXX,XXX square -- leases pushbacks activity in higher in you're to what kind come they've that trying retailers, kind see sort out you've are

David Lukes

Samir, of effective if Page particularly that that past which of kind is of has the you'll rent from XX box of over look one the stuff, net leases more that's the And leased category, the we've leases. locations. we've going square changes drive got really shifted few trend footage us our you kind left. all on I see larger year more the of to the that's year to shop our There's of the because very through remainder think

shops. now right anchor demand coming of Those from are the leases larger negotiation the a so leases. national less is And than

very Certainly, in the has building But don't year. have gone have I also cost think up the of so rents up. past changed And space much. gone terms the a out

these the dollars local as improved. trend of a the TI for has get some in terms lot a if gone haven't more the change bit even only of think really think I can though the at want I come hasn't into just And are see starting seen that's I of little anything, shops kind I request even retailers we're which much with. up expensive. speed So to to up spaces

Operator

The next KeyBanc ahead. from Thomas question Markets. comes Capital go Todd Please from

Todd Thomas

just at could deployment. price little the buybacks share on raise properties or for the new morning. just in in following the buybacks. to up more Good bit level capital just market dispositions about September? thanks. shares for I'm wondering you David, capital for And if which in topic you reinvestment Hi, stock talk current there still with repurchase environment around the at the appetite the below is a if

David Lukes

disposition it interesting. kind side, the on of Well, is

You of to and that's remember world things there's that in situations a to been couple where And one important transactions has this talked of sell. us other about have might piece called and us country we there the positioned a buyer XXXX XXXX. want

think opportunity we're or say those would you paying an of yesterday's decision And everything to debt whether stock, transaction. prices even recycling. And to one-off buying XXXX bit you brokerage gives just in funds. there's us haven't properties. I buying now. the so right be Todd, if of And smaller of some do quarter-to-quarter. money still to Even lot in with assets sourcing that's opportunity marketed the midsize today's has think seen the has with or to for covers I cases under a down or to it a you're that But do redeployed feel like a an certain as have recognize large do us there's I world, activity where The kind little portfolios lot of with activity it's getting if

price. which that stock And the bought than so we then accretive. fact at today's back price repurchased sold the last awfully about cap the which was higher we stock and at quarter But we rate way was the thought asset notwithstanding the

cost that and the on that I think so of is we feel a selling stock with you're day. the comfortable capital the where not necessarily that trade is asset because mark And trading

Conor Fennerty

retain to this We Todd, have thing I'll million sources to prudent point We of buy add we time. $XX just And think cash the still only to at in don't other need assets that to flow is, assets. it's million $XX and sell liquidity.

a sense position right requirement we point, -- match but it we're the in. David's now to sheet funds, think So balance makes to it's given it not

Todd Thomas

I acquiring distress this that still partnership Okay. a the this convenience maybe and you very slowdown financial for more you've Maybe though aggressive, you do itself a lot And but last opportunity been surface, it to that well you little arrangement bit I not oriented did that lend you catalyst and then like an in like a to bit or might mention market is mean you're a over for pause persists to some would of -- environment centers the the bit this asset you little think here. to expect environment. level, general on more much a acquiring several seems of quarters at is think distress perhaps a fragmented a sort be more visibility do to see begin here? and await joint venture or longer and focused

David Lukes

smaller. your it certainly asset tends we've are And be is fragmented to up seen agree a the because smaller. dollar happens bit think dollar faster point, Well, movement the a little cap to the of value I class. that that in down rates simply values and sub first The transactions I

basis. the high John when hope reviewing and cost to awful therefore on is that more Our next better even mortgages an is weekly inventory me of and seen to-date likely happen. still find to he's we've we're of mature a know and a I refinancing to more deals here people's sitting than is going sale lot

can time that think we benefit. We're grow. I our of position, because in buy been was capital reduction ventures, we open-minded you at than this pretty look and I of as selective. fees. we at so second ventures about to earnings our given To five like the and can confident higher bought think we that is continue assets And joint very just But from decide five feel last we we're to whether moving if joint want income your quality some finding of that point, is this at to our the much on of company opposed the we've it its question pricing JVs coming years seems be to have but at those ventures, And in joint that is that in wholly-owned lot that the where years, legacy ago. a deals

Todd Thomas

on just Okay. which Got funded you any little but lastly, expect How maturity the or gave was about it. XXXX, color about May thoughts And Conor, to helpful, we a of refinanced $XX bit be I or that should guess? million XXXX X.X%. repaid

Conor Fennerty

I have Yes. mean It's not thankfully, a It's And question, eight a bond. full good seven, thankfully we stub Todd. your to still bond. a months until that point, maturity. size it's

there number We to-date. look, line So of just credit. a options are of recast our

the So that's debt a the ratio we've we are and approach term solutions need in years go secure a our route of if we got solution. little more stability secured is sustainable a could worst the on be. we IG or if market so case there long-term not five put X%, But we down could see obviously we scenario, line, other debt

enterprise, quite points. bit lot the there and stub So last down are lot significant to course to we've is just bond. the your And not of of got a retain cash paying the one a then It's relative options It's options. a a that of it's flow but the over year. and ways of

at time. that news that a we to and it is see The we until fit TBD good we time bit as get quite of So date. we'll we got closer address

Operator

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

Alexander Goldfarb

morning. good Hey,

hey, leasing been surprised that strong moderate mentioned overall and has David, same out two to So breath of running at you some you were look, how given space. questions. just the point expect, volumes said, leasing upfront

plenty still to out it shop still mid-XXs, of of the is runway that accelerating that, we'll like signify you're less presumably so as But see So more even there. sort or leasing with there's space, sort because of seemed presumably you still the small one, pricing would of something rents power. run two in parts sort of just running

is just overall maybe rent us rather we slower I'm of on focus stats aware leasing for be are curious, and Or the growth? you So the a slower growth it be more to suggesting than volumes. should leasing heads-up of and rent composition leasing bracing to that

David Lukes

rent flow leasing think pretty skepticism macro on a the drive-throughs I'm morning, than square and inline simply left leases new Good that a focus rising negative nervousness because like I locations the are surprised inventory more economy, we skinny. getting simply respect of down, all less the hear demand would Alex. because of because two surprisingly such in us, total ago. inflation, day, that's market volume, are I of scary. the it's about only like that news overall every amount escalating increasing Well, about end there’s maybe terms to and lot do about footage getting or feel lot is of conversations in particularly that certainly someone rents than more are how that caps far With wants still and we comment high those being rents are of we're is three had years high I A in space. my surprised, of much the certain locations,

at high household it's look lot, available, suburbs, $XXX,XXX. and sales And sentiment pull is sentiment average of any happened. change is back. when got space hasn't suburbs visibility. that has I the convenient, just that income driven confidence nervous income environment, sales, parking high sometimes leasing that’s remember And our and don't the get their they have cuts, curb part has that is retailers These it from that much can It retailers income think including is

got feels if the more there's like slows all going tenants down, bit So room And like feels it just little even a to there. the after same are that enough demand demand it is run. we've space that

Alexander Goldfarb

bad Chinese already comfortable back, you of whether guys occurring pull second feels a and if entities is, some given forgetting, you to political or Chinese have I debt we've could changes, JV for then result ago, or believe number potentially just and pressures or David transaction pretty Okay. you Chinese And other it's that question then estate there from unwinding the that sold that it seems because Is real arranged of you safe JV my a in Beijing. seen still years with that guys? your anything but

David Lukes

any change the for last haven't seen on week. call their We quarterly with distribution to-date. were phone just We them

an institution. They're is happy awfully dividends collection there partner Our through rate large COVID. and with the the

you is if worldwide investment. through can deliver seen that X-plus-percent estate, think a dividend real secure look COVID I as a pretty at company a

that see in So I the joint any change in structure near-term. of don't the venture

Operator

question ahead. next Kamdem Morgan Stanley. from from Please comes The Ronald go

Ronald Kamdem

quick ones two from Hey, me.

but the about there any just long-term the plan just we on on doing how on thinking staying selling? those? the there. updates touched Just institution one, just investor maybe a Madison Prudential, Chinese JVs, should Just of you on think more and Is

David Lukes

think status Ron now. quo I it's right

I very in institutions looking that aware engaged happening from we at them that the the what's heavily They're markets in larger reports operations. right give the think of are now. credit quarterly the

happy I question very mark around like valuation. with the most think people they're and operations, there's a

on because couple so assets quo of have. the of status smaller joint think forward for likely selling that, I has years. past been more has going those is we And -- probably ventures Madison

venture. asset likely out as our to joint think so that continue we And that, is sales we coming prepared in remarks mentioned I that of see that some

Ronald Kamdem

the paper Or -- the Conor, issue us maturity then just know, lot you today like I give on sort just us sense longer there's of could And XX-year mentioned a and market Helpful. to going it. sort you today? is But where just of you so forth? a the next Got question options. of year. back can remind where

Conor Fennerty

last of months the the good to and between we've DCM on work point it working our really depends with X%. we your day. Ron, has banks gotten the anywhere in I Yes. question, from say across with quoted X% would six and our kind been desk range It's a

of depends the day. And early on so my response, kind it

we've optionality markets thankfully, secured of IG kind it comes or three of years. the got, debt, the I extreme whatever those the flexibility say, So it over market, to access be. We've five-plus would loan shown last when proven to all market, might term

of end But think relative the we I it a the as about a the put maturity when risk we're stub to the enterprise address we Again, next risk risk of will And kind year. $X-plus it due talking low down so of value. or again, comes system company, May in million $XX that's to spectrum. about of billion

Operator

Instructions]. [Operator

Our comes ahead. JPMorgan. from Mueller next from go Mike question Please

Mike Mueller

Hi. Yes.

commenced acquisitions? it's lot level, cap question, were at rate you do on open a us to If about XXXX? third sense the not XX.X%. that by quarter is know same-store but we but of a can then you the look commenced on I And your volume, So rates take your the give schedule, second where what end not signed of the as would think

Conor Fennerty

it's Mike, Hey Conor.

on small course I the we I acquisitions it's talked last just think, year $XX the it's the I X.X%. quarter a over we the to are To and was, think And under there. of million rate higher blended bought cap assume the think seeing that. some acquisitions, though, point, I David's mean to-date. upward it's quarter, about third fair with only million modestly than $XXX we movement

it to Craig would with something buy think it's assume obviously I capital the going of So to cost we than our forward, kind and question. cap that of of and were question. conducive if in I rate And more higher Nick's to be missed capital cost our fair second more line to in going our

I XXXX. think related it's to

the I of part can't the was. recall So dodge, a question think of but I'll second

Mike Mueller

commenced schedule, occupancy was by where rate at but I that economic your XXXX? put XX.X% we signed would that looking of not and your if follow open

Conor Fennerty

Yes.

more dollars on lease and is in the the XXXX. around hard disclosure question part quarter pipeline the X is The on footage. will pipeline by of as of commenced year. rate we look Mike, slides, and you for out rate by in is the commencement in square break If got provide we've the the SNO We SNO Page obviously your our February schedule that ramp

little you a and a XXXX point I of Page mismatch. bit the your the over and guide and of commencement XXXX think it's deliveries. that But So to SNO would course X as of

Mike Mueller

and than do -- less moving If noticing of going comment higher Got seen on move you real you would it. Or you've lockstep that cap have back all are data rate lower of higher not are up the up? but rate think rates rates in side? again. cap have you with And your seeing -- say been quick the you have been I you're seeing up been to rates what about, what seeing you then the think just moved points, cap -- where rates, you think know maybe if we cap kind question volumes if you've the on

David Lukes

answer you Mike, that warn volume small about but I'll a pretty that we're talking of transactions.

Mike Mueller

Sure.

David Lukes

moved it's Maybe that think going easy answer than rates rates be not to $XX great don't the have have. the up XX in a to to I years. much have cap up I fairly is anybody million really surprise faster of fastest $XX million, because indicator. rates that's moved million; $XX And think going But

So assets, five third to I rent a no a we're reset. The think cap for buying the it while roll remember in options years. rates when convenience about with next just matures of thing is takes little the to

faster So are rents even moving than up marginally, the rates though moving the are cap also anticipated. market up

than little the think the ones bit that unlevered in I IRRs are going are rate. So faster a growing cap

Operator

Please comes question Point. from Dijkum ahead. next Floris from go The Van Compass

Floris Van Dijkum

Wanted comments what what good talk sector mean the in to -- shopping transaction, about of and guys, the think a morning. get center Hey for listed the bit as to impact that well? little your on could the merger Kroger/Albertsons sector terms you

David Lukes

dodge has little I I even mergers Floris. many up will a think only brands. when We've to you morning, and that property getting like overlap one of Good times study It multiple retailer bit. overlap. suddenly feels with end us a there's that an got in

entities any by that do to outcome. to time are points two to part like I overall you sector. whether the a it I have are So or sum the think merger And wonder data of of deciding saying means our that pretty kind on there's small I store think But up what that, of be closings a it remains seen. that large could

Floris Van Dijkum

you grocery as Yes. tenant peers. could frankly, well. for take sector your impacted I curious clearly, -- the less for I exposures No, mean just to get this some on was thought and you're and what your than of

David Lukes

with you learn will I over time. We'll see.

Conor Fennerty

perspective, in Yes. to couple last excuse Floris, our done of excited is investing we're years a in or decades, that the of Kroger. job of I they've would the exposure me. I the majority their obviously couple say, last great mean, from our stores

we and think we stores, again, stores point, David's ones David's haven't. you're impact than to point, the the us is And in to thinking feel the if that about to owning invested fairly overlapping So about have better the overlap insignificant. that been recently

Floris Van Dijkum

a about operating in where an to occupancy changed even that actually was but your of in of rise do -- see with high higher. Great. expenses you the think you margin maybe that how being and back operating just other minor points new marginally leases able the tenants? your your simply though not I negotiating And dropped And -- has call impact recoveries? that your how Is couple noticed here, and

Conor Fennerty

It's that's and some when had mismatch the Hey the exact same income first it's Floris, a the non-recoverable to one-time which of Conor. question question, related just between operating related a great I expenses to ancillary the metrics in the our were expense. it draft of I saw for would some quarter, I and the that majority income call, nature

when in about it commence. years and kind of So as last has two leases you paying continue to as operating their I margin would to obviously, think especially tenants expect recoveries trend the commencements that higher

couple metrics percentage better So of and of trailing quarter as would where going blip kind a a you I kind a of point was kind and recovery the third years from a perspective. we're towards think and of the majority margin XX-month of that indicator of longer-term last

Floris Van Dijkum

Conor. Perimeter you last on think, -- question Well that, a sold I guess of I know Thanks, Pointe, portion million. for $XX maybe you I

only quite larger. a books. going in $X.X a to It's on and thinking good the that Can on you It's very be which I think, pipeline of guys project asset be remainder of latest redevelopment there? us the attractive. Your developments more million the Presumably, color any has, redevelopment location. the give cash could

David Lukes

out. but an have tenants we've renewed the not Floris. couple liquid of Perimeter kept years, tried to last have for in it's state, of and piece been any several the we that Pointe, couple a asset site move We've tenants, that land. a had get not of liquid we of sold We've

to of property but opinion, a piece our we and in consummated up that's transaction is likely be have that mixed-use split there. developers, any to think I sold not

Operator

Instructions]. [Operator

Tsai next Our from comes Linda from Please ahead. go Jefferies. question

Linda Tsai

environment. expecting is in morning. pretty good while, for overall we're know your full, year? CapEx, you're now next getting expectation occupancy elevated CapEx I but Hi, inflationary for but a What's for your then also an

in thoughts CapEx of kind any general for So XXXX?

Conor Fennerty

And lease spend and leasing elevated, is the spent commencement It's fair usually to Conor. and remains money. it's volume I we mean, when question. Linda, the half we lag, generally, a there's good sign between a when obviously, post half it's Hey and a cash the commencement. assume before Look,

earnings is call our spending, million free expect year cash leasing provide and So would CapEx given in certainly kind particular, XXXX to I XXXX more But XXXX would of of or remain elevated with it, on I versus we'll The with me, even then. we of that say the flow. heavy only this XXXX, had, that in plus occurred thing disclosure excuse guidance. $XX lack

next payout ratio amount flow think cash I ratio, have that retained fair we given assume, even payout to it's which just year, the decent to our I a of CapEx is also think it's pending given Just if fair today. assume

that of February So more expect amount the TBD given but going. activity to have on elevated will results, we color would I with provide it remain just

Linda Tsai

Thanks. is thoughts in there of you kind presentation, And just then debt on highlighted Regal bad any XXXX? debt, general levels bad for on the

Conor Fennerty

kind it's I But a like we'll provide guidance. well to Well, the or income question, year. more for some like said, of Yes, CapEx question. Look, good don't Yes. has I think be source been I a it's of the it be what was will going on number source left of AR certainly headwinds on like. the don't of of seeing. that we given the macro the think have amount and it amount looks of TBD the balance But a income just sheet we're

Operator

would queue. Lukes questions concludes over no This any session. question-and-answer more I to David in turn are the back the like our to conference for closing remarks. There

David Lukes

Thank you our you we talk quarter. joining call next will to and for

Operator

attending Conference has now concluded. for today's Thank presentation. you

disconnect. now may You

SITE Centers (SITC) 25 Oct 222022 Q3 Earnings call transcript