AKR - Earnings call transcript Q1 2024

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Operator

Thank you for standing by, and welcome to Acadia Realty Trust First Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to hand the call over to Jose Vilchez. Please go ahead.

Jose Vilchez

Good morning and thank you for joining us for the First Quarter 2024 Acadia Realty Trust Earnings Conference Call. My name is Jose Vilchez, and I'm an analyst in our Capital Markets department.

Securities from be not statements forward-looking historical recent materially forward-looking the by other of the please call filings Form during of statements XX-K indicated begin, a disclosed in SEC. of meaning statements are including with and Act that may the we aware actual made and that the uncertainties, those those to within the XXXX, variety Before and Exchange results and differ may be due risks deemed company's most periodic

Forward-looking of statements duty XXXX, company the speak to only as no this and of date undertakes XX, call, April update them. the

release to from a for on for During this operating GAAP its these see net reconciliation refer with measures non-GAAP measures. comparable financial press measures, Please directly certain operations may the posted and financial including most funds call, website income. management financial earnings non-GAAP Acadia's

Instructions]. [Operator

over President management Officer, Now the pleasure to my turn call remarks. will Bernstein, to who it Ken Executive Chief begin is and today's

Kenneth Bernstein

job, few guidance John A.J. metrics. give discuss Then earnings and will I'll I'm balance Levine. our our the And Thank take Stuart a here with John you. And to Great then over to after questions. and hand our call A.J. is Welcome, sheet that, team and comments, everyone. Jose. here

and our to of Street acceleration earnings rebound the blocks retail of a can that short. and I'll let cyclical As the The tailwinds building of continues peer-leading is continued pieces drive our trend in experiencing. the multiyear component The quarter the NOI our is both in and our going earnings discuss as of see strong performance. continues of reflective in John growth performance forward strong portfolio you release, our A.J. as was growth first our this secular portfolio top-line and well detail, of that but moving

sheet, internal positions opportunities continued positioning A.J. combination and us favorable extension will facility, mark-to-market growth strong recent limited rate of us the growth our And our stability of and will enhanced as expansion limited the maturities with exposure. contractual John going our recurring with is discuss, As further balance discuss, floating credit and bank forward. for strong of

of at level of having bottom top-line line's this creating growth the growth. superior property goal translate and that growth our supports earnings then All into

both that's are The retail just we basis past positive occupancy, component suburban seeing growth still a Even and assets. portfolio street trends should economic full than COVID couple growth story. that our we're because recovery dynamics performance higher our in a this points retailer our our being means we internal strong. provide And cyclical long-term's get to looks hundred once supply-demand of

Our net continue new in retail to the GDP goal street growth growth. of here lands has normal producing to likelihood effective by the highest wherever portfolio the superior that craft annual both of excess for is driven and inflation

brings external growth. this to us So

true both While to elongating the And management relates wide growth. opportunities our core This a bid-ask to portfolio as see spread reconciliation, is additions narrowing. it market actionable for investment that well is bond our for the we're as is still transactions and bit opportunities spread beginning volatility external platform. for the as to is

we as the where to continuing as REIT sheet street balance rewarded to this portfolio, will compelling adding be additions, view will we only in differentiated by public our what our are markets, strategy our primary to be here, we returns believe of due major a our this risk-adjusted terms in the focus retail both focus. with because shareholders First, core grow and

in pipeline. our dollars with We deals have several hundred consistent million focus of this

to and stars still others, Some align. are have further the than along

long time. many more today been encouraged am to than in I actually I So have come we'll but a see how fruition,

sale accretively leverage-neutral be from and portfolio portions this In terms might basis of sources, to capital as our a not an core but currently or variety through of core of mission-critical. the finalized growth funding, one recapitalization on that to we portfolio. our lines, as different Along high assets recycling and high-quality, able these a of quarter lower-growth we suburban do should have including of in for agreement subsequent our be end

it on Assuming fees the potential ownership a quarter, the this as plus closes eventual promote retain with anticipated we resale. customary additional upside stake asset operating X% an will for

future our for and to growing transactions with public seeing our it's leverage can closing, be above platform, this business. also where it with The weight. transaction the or core relationships. at the Mervin's will being is The institutional the leverage profitable our it through enables accretively institution, flow modestly capital. may our benefits we right then to distressed the to portfolio, on redeploy this punch our where but set create or are our accretive component participate investment focus match anticipated be acquisition situations, not growth and of special makes also with opportunities our we us in like us a reliant capital skills, as Along market of whether debt, It us deal better table opportunities more we're It it's enables Albertsons investors. solely It fit. management

we this look in diligence. put These our this in the and process pipeline several structure deals in core, similar that to platform will After will in our deal recycling the doing this recycling And fund quarter are Fund similar in one of completing of our under we well. contract We capital we're in have with to the capital end, business. deals activity also V as category. our likely

take management in to Now sheet Even us. balance needle our few earnings. whether volume acquisitions, investment impact doesn't an on can mind, to for a much in size, it move or our given have keep important the platform,

A.J. strong continued solid So walk to for And about and first, multiple will growth, drivers was it through business, quarter we strong internal think our key conclude, the on our momentum. fronts. as us another you X of maintaining results

I sheet, I walk progress well. and spending will briefly a external discussed finally, that important I'll bank maintaining more here be our suspect facility. this through John of future as then creating is the on discussing calls and growth. And recasting time and our solid accretive Second balance

that, thank work like the for last with hard quarter. to so And I'd this team their

A.J. the And over call I'll turn to

Alexander Levine

Thanks, Ken. Great.

M XX So true suburban Gold last the so positive months, between. once that unabated. a and report everywhere in but over to Soho even I'm fueled happy and higher we again, to from to seeing that cyclical the what That's Place, I operate both where from our and from the hearing high-growth, for assets, our secular recovery where on have I'm strong barrier-to-entry Melrose the and streets retailers, more continue Street sit from Coast trends,

We are demand still than the markets can seeing more accommodate.

significantly into of primary where seeing retail. vast our they for remains are be X continues XXXX. malls, well getting store were open-air ahead sales retailers, of as a where their the quarter signed rents driver And and healthy, physical moves are non-A thought for along, we profitability to were of shift the we're out majority the And their leases time of businesses. street There and prior. tenants just and above in department Our stores

of in we horizon. blocks pipeline the sat end represents continue no we already year. signs NOI pipeline. our added are in-place pace which of on of $X.X the peer we've first Why the negotiation. We'll have We our additional with of it's the puts last see $X.X growth SNO there April, the April, portfolio. stages in Now start expirations set? and advanced which X.X% number in Ken ABR That in quarter, And an million building $X of quarter, growth and rate mentioned a course, only of with At meaningful will that at higher of provide doubled right to than million a our includes no million, the and outperform of and our on SNO us ABR. deceleration

of pipeline street at It the is higher annum X% assets. originates the our that our majority noting street worth those opposed X.X% provides And as mark-to-market typically from outsized contractual blended of are to for typical that per there in SNO resets suburban course, vast are which opportunities of FMD increases, portfolio. embedded portfolio, that

and our what's proxy as So use let's Armitage a on Avenue across for that a bit expand happening streets. in Chicago

XX So is Armitage square on our retail buildings the foot. around on $XX per rent average

$XXX offers receiving space foot. backfill are We of upwards a to

large the over next we of that XX% So a at several percentage quarters, portfolio spread. close the to a mark-to-market ability should to have

lease In new fact, since signed the Armitage end of spread. the at XXX quarter, a XX% at we a West

tenants the street. foster than sales pricing to we us controls the is power, #X, to do. blocks growth. on gives the scale. single of landlord the street only but not X Armitage And ecosystem more XX We No on best having curate control why scale other us allows and and So drive relevant traffic buildings it that? accelerate on

entire continues to West entry. to a to East #X, The won't L serve a just barrier retailer and barriers the that category that's of as cross. train market. X the Halstead certain blocks, to the

for looking space only we your first are along Armitage, call. you're and If

street performance. people remains result local. COVID. a lift one a example now work, levels. growth, shopping performance and tenants #X as back even just solid And those that home closer to of of sales staying sales to saw is prepandemic were with above well a is in Armitage People to continue post and their

are that street. rents, to waiting list course, must-have be vacancy drive can Armitage street, curate supply-demand. And while basic to a continue a we we And a #X, leasing competitive to we able highly environment promote No of location. is the tenants on of consider where the

streets, can This do scale the retail do best But Armitage. not right we this unique meaningfully identifying the is business, growth. we drive to is street where to and right and what markets our

Avenue, the or Knox out M Dallas swap and Greenwich can Street, in it's dynamic. Coast, You the largely Henderson Gold for same Armitage

scale, entry and we We barriers have performance. have we have to

of even the we At that Soho, Chicago, months Williamsburg. is Melrose, Coast expansion similar XX the recipe, for rent over case catalysts the And seen in growth. a out in and play Avenue Gold on continuously luxury add Melrose, of the strongest the in on list one of you ingredients. luxury We've this last but it's Madison to in can know

tenants luxury no -- mystery that luxury no strong capable are of it's rents. I So paying mean

drives of shop. that and is stores shift and streets. the advanced This rent on that high-growth those market. where is and secular is that on focusing biggest away are their for from dynamic aspirational has truly and advanced not these It's competition fad. the a primarily around of for is the the in ripple and Clustering the contemporary tenants tenants clustering that of to luxury wants one our byproduct effect a luxury This reality luxury market focusing pivoting on customer contemporary their it impact. malls growth But overall the department space brands makes new tenants that the

efforts, embedded our will make all of all despite Now I But once. at able not we years, dent that we this with the say space all in value X meaningful back unlocking next a that caveat over should our our to within portfolio. under-market get to X a be

Some to street fair unique of resets some occur and will will retail. through natural lease-up, market that come value from relatively those are that

as and accelerate a our do, And constantly strategy, for to others, through shown our their pry-loose accelerated looking will positive be we mark-to-market. are team space opportunities pry-loose to has where ability leased

the streets figure not all meantime, Avenue, squarely patient, when afford but In projects. to of have and can we Francisco and use we're our Michigan into and the best rebound. and In not if. be this are on bucket each slower begun highest markets to those Now San for time recover, out using to North their fall of

In our we go state projects those to push be for of into meet of are for exploring under to serious needed Too example, advance additional but to what addition are initiatives. city a for consideration housing. early both residential spending time this the and detail, Francisco, San significant would

the of the land, Michigan, are retailers Avenue Avenue. And are starting they ways to Fifth have like Michigan Still several Paul one knew we days like when at North happy a always North Avenue, feel see we're earlier the And relocate to interest North go, and a this circling On from Coast luxury that should they Madison that is on early there just seeing but we south market. recovery to XXX Michigan. XXX the Gold Stewart of was that tenant to year, kickstart block recovery our coming. asset were

we the City to can down, finished, pieces at valuable that strategically open this to firmly into those and and Scaffolding The we've been to holding fall wind the is backs, is Turning is our the back. place. facing is scheduled unlock continue park spaces park Point. finally month,

Street. stretching to vibrancy the added Including of end Sephora, of year, Fogo Street, And tenants opening had meet City pieces in X an on their all XX,XXX XXXX to their and the along the anticipated de and City opposite and of over opening GLA. Brooklyn. space add new for a back in will month possession Sephora this as hours for representing and operation we With the is is Chão working place Fogo, has Prince Prince grand fall of anchor into summer. to who Point we last already a and continuing Downtown will Point square feet transformative year look will

So wrapping ability into it to fundamentals, tenants, of rent up, dynamic course, supply-demand and a healthy strong better our and, streets. sales growth, curation growth continued the factors sustained leverage on all those favorable

things over I will that, John. with turn And to

John Gottfried

Thanks, A.J., and good morning.

our results with and We coming strong ahead expectations. of in metrics key are to our off operating a start

sheet. balance our on progress considerable made also have We

quarter, over maturity X years, by our while successfully our borrowing our In along upsizing existing all debt-to-EBITDA capacity, million we the with our credit addition additional to of also unsecured $XXX during X.X facility a the turn extended spreads. an improving maintaining by

tenant I continuing along we to Starting issued with weeks operating first a And ahead a to it within out after point. to which driven with will was X% earnings in our further see not FFO by revision an was of premature But of share, encouraging provide income an are meet, exceed, some promote But portfolio. strong with being expectations guidance track hopefully credit, of we remain trends now our in few property FFO X.X% ago, we NOI. quarter as solid on year-over-year a to We slightly too at projected our with just growth our color. little our this we of coming $X.XX fundamentals. per same-store this increase felt stripping results. our as if expectations, make growth reported upward reminder X%

expectations. growth growth, how approximately FFO our by an year-over-year helpful see I increase would we or X% walk and quarterly to annual through Sequentially, to to sequential trajectory first addition contributing quarter it that we drove about or In be thought promotes our our income of the and retail this our release. anticipated, $X.XX differentiated a highlighted after it share we core our portfolio in termination was as growth. NOI precisely our more that street excluding of specifically had $X.XX And grew

diving our overview that well as are numbers, before and for name But results, both into quick to those that how going pause and those to do well. know report newer the refresher discuss of I'm as the a us we a

numbers these to easily of back statements and any can assist we All to financial our should be anyone supplemental, traced and questions. are always available have

year. this as from this in fourth defined rate, reported we sequentially NOI, share And the quarter reported will quarter dispositions, of this $XX of in quarter. from XXXX. million total we run approximately to X% of was And in of by operating increased factoring or and by quarterly our to $XX.X net expect increase prior any $XX.X million we that terms QX first million for acquisitions approximately that $XX.X the First, core our our the income business, this that million fund

million $X portfolio about moment. share fund rata sequentially it discuss of by clear, which drove increasing pro flat, $X.X be Within of was total portion our of drove referring pro retail street of not even the million. further, am core that just by to increasing million inclusive to our rata growth, the was redevelopments, growth store, sequentially Thus, in down of this that growth, And FFO. about core $X.XX the our a to it our $X.XX drill portfolio incremental million. or same I'll NOI was or about NOI, approximately X% of And NOI $XX to at FFO core sequentially $XX I

Chicago a San total Ninth point track to in our grow at reiterate remain even last is and on XXX want call: redevelopments I NOI that Michigan projected we North our the inclusive of I with in X% drag point Avenue from And basis XXX core XXXX. made redevelopment by Street the to in growth And Francisco. X% projects

we long-discussed behind As impact projects us. the is redevelopment from discussed now call, last these have

Ninth X we of in and these of Our portfolio than assets, in to less declined and share $X $X North XXXX spite from from of our approximately Avenue significant San XXXX, NOI strength Chicago of and demonstrates the believe XXX NOI Michigan these in achieving in XXX which Street resiliency in by headwinds. million solid XXX meaning million Francisco, growth

Now to moving NOI from total same-store NOI.

X% As of XXX reported towards the from X% of bankruptcy trending outlined worth X.X% highlighting a again, upper the about Beyond. Bed that basis in April XXXX our our has model end, the while headwind quarter release, we guidance same-store of for early, & this first of It's range. us our growth initial quarter. year And to points faced Bath the also

we've in As to Delaware Brandywine, was commencement Dick's this anticipated with profitably previously in date discussed, Sport rent fall House of the an released dislocation year. of

discussed, pipeline during we quarter the signed-not-yet-open to $X.X by A.J. As million. sequentially increased our approximately XX%

$X.X a million amount core from million As is reminder, same-store signed-not-yet-open Approximately pipeline. street leases. this coming just of the is our $X

timing, commence of weighted signed-not-yet-open of XX% quarter approximately to and October terms second the is with balance of September remaining towards the the year. expected this In pipeline during

in A.J.'s to our meaning internal I it's demand mentioning next same optimism for gave discuss. the more expectations and portfolio want of models retail case an moment base growth years. about the on And from to opportunity our I in street mark-to-market street provide the worth have a our a great built over that update estimates am not, and do seeing we markets. I'm A.J. across the overview several while share giving our I trends, conservative

Avenue some retail street XXXX portfolio through point And is same-store, of discussed, base corridor X context. upside it of near-term And loans. from any we we NOI the excludes recovery. guidance XXXX. million redevelopments, iconic And only incremental North of this as just which discussed for as case multiyear is growth or year-end forward. is base model projecting projections Michigan us rebound our in is faster $XX is meaning factor starting year-end Our for going this just anticipated. The our FFO further just our case XXXX is neither retail than $X.XX base Should case previously, or

annual we to should means anticipating for growth NOI several are our well Getting our growth But trending mind, This perpetuity. from continue historical norms above not million. growth, XX% next the in to nor years. equates in back annual streets do growth same-store about $XX we the keep need XX% which

have While are model we embedded base of suburban case lease-up, portfolio. once rental growth this we about lot remaining, a net past showing which we of projecting from our profitable still is effective what double growth get our our stabilized streets, from X% is

In building contractual incremental terms by expiring the mark-to-markets blocks, NOI driven of growth. being and of leases of $XX on combination is X% lease-up, million a

of we which terms XX% supplemental, outlined our lease-up, XX% occupied achieving In at define And by early-XXXX, late-XXXX, an March anticipate as is in incremental ABR. as of street full million gives which $XX XX. approximately our occupancy, we us

we about meaningful street executed goals on XX. lease-up included leases pipeline more million progress our $X half our of signed-not-yet-open made in with than have And or at March

remarks. upside Secondly, next years. anticipate market and marking in team successful rents street mark-to-markets. discussed over pry-loose optimistic in about incremental the here have several the his are of And we NOI leases expiring $X to he million his strategy for if are A.J. we We on

just important. out granularity are felt these threw X% we from lot we And the excitement into I are recognize million of a level at I $X numbers. built escalations trends But we was of given coming this lastly, street our seeing, another that leases. our anticipate

reach any questions of So points clarification. should need these with please out any

our Now balance moving to sheet.

productive few We markets and have months a capital the busy on front. had

million $XXX along us get year-end. more our have of lending years, unsecured extending into visibility [ pathway by X we also debt-to-EBITDA turn, a additional an to addition than with clear improved facility X.X our by the a by In back Xs ] to

pricing, Not In the enabling bank our our our extend we are full with receive support strong the and from facility have providers. that support facility, unsecured current the capacity. we to only -- terms the the at facility of was of group long-standing oversubscribed, us the thrilled of we our upsize extension from capital did to borrowing our execution

or pivoting thereof. want I Now importantly, our interest the about Starting rates. interest moment rate to a talk with core. lack our more exposure, to

debt outlined maturities our have As years. significant for release, in the several we no next

be rate have our here no of is an as virtually this amongst swap protection interest But worth leaving locked on significant XXXX. floating mid-XXXX, along with outlier rates to swaps, debt, and through our through us believe Secondly, highlighting, we interest interest I exposure extending of peers. all rate we rates use in may until base with our

million that cost on debt enables business clear, the to highlight $XXX is Rather, of strategy rate that most with just be And and believe is in to dollar to the maturities which obligations, swaps rate variable that the rates our I significant played has mitigate variable our the speculating interest of rate we our are interest risk we in just what and debt, not to rate hedging risk maturities exact from are of being independently management to of manage further just management differentiation, us portfolio, manage out. is our we meaning risk not the strategy the have interest swap coterminous our variable average just extended. And rates.

rates. given As utilize already liabilities debt. it experienced match have we fund debt, impact the in our short-term rise year and earnings of our prior nature buy-fix-sell assets rapid the appropriately the relates our fund to Thus, this shorter-duration and business, of

Fed and points upside rates, the if when So cutting every to $X.XX FFO. XXX basis about starts of is our

interest rate only are the bottom growth positioned that pursue to ensure balance being our not continued top-line drop flexibility sheet to maturities line. external the have we to opportunities will the against portfolio volatility, NOI does our our necessary but fully well are seeing, we and liquidity with summary, hedged and limited from in So

questions. we up call for open that, with And the will now

Operator

Securities. BofA [Operator Instructions] Spector Our of first question from comes of the Jeffrey line

Elizabeth Yang Doykan

to, on some It's the what's have couple new a an I update transactional Jeffrey. that on you quarter. activity, terms partners. Lizzy now you're on hoping activity with get in especially for what was clarity of close helping guess, institutional seeing to you're on on Doykan on I Congrats of

one, So you closer what the -- in acquisition coming of to side? you starting opportunities then, two, And capital I with, cycling key for the what terms are are today? guess, most are

Kenneth Bernstein

Sure.

both So at them. of let me take a crack

in the our showing volatility market we -- for and is elongating remarks, I the necessity-based, are there. seeing I focused prepared spread to Lizzy, And is process, is of buyers that mentioned what interest of said sellers defensive from trade continuing open-air meaning are for during variety both is of up buyers bond bid-ask crowded, As It the are a a sellers very narrowing, the and retail. while most there supermarket-anchored. most was focus COVID, and products. The institutions variety

I deals, assets yield are opportunity are most most seeing and now for both sellers retail anchor-focused would on And referred that's or in some are sellers up. sell you're the than junior in the Bids albeit to other the motivated the we're center, areas say and sometimes profit-taking. higher where of buyers side, showing seeing open-air the probably to who showing probably the range. power competition. Then as other So are still more up reason suburban

they can get opportunities. opportunities. And showing or we're also a or funds, are find for are probably capital price, so out elsewhere seeing asset get at out, but those you who up motivated to buying And redeployment other have sellers of because finite reasonable those can expenditures type either they sellers necessary life if are that

is Where seeing side. risk-adjusted side. the suburban the on retail most we're the that's street in So returns best, compelling

out, going take demand Now while. to very But as A.J. the retailer it's is pointed a strong.

going per there square So what's retenanting kind you're we where price value it, in or side other creation, are yield, foot what is we it of buy, are as opportunities. of be is purchase we deals of on what about part might think the to focused your otherwise. But because going

the what then where And enthusiasm and is greatly is put together that as taking these so is a in community. a and the between lending our assets, the strong deals retailers, underwriting in from as seller enthusiasm while. Final is still ask seen to retailers it assists point to while spread little the wide, from this bid us buyer I've of is which

rates are that proceeds world. as it to base we Acadia. like in spread, market especially and is higher-longer and healing But available problematic relates Now well, for a companies as are

have So difficult are some incredibly But to access to we John refinance. borrowers, great there are who outlined, capital. as it finding

retail once we seeing and a portfolio the reasons be think growth excess that want that we So own there do will bottom-line a inflation component we we're of best a being the in being some the choosing, rate. is top is street for suburban good opportunities we're area as front have work core a although as selective there returns. That motivated are Bid-ask a portfolio do most variety step fact to and enabling discussed able that in inflation are is are risk-adjusted that, back. it's us make point excited retail whatever Fed still add on accretive are, that. settles A.J. risk-adjusted the in both of are acquire by, that just said, to as we we're that hotter, the seeing that to side. in returns us, our we're higher-for-longer the the basis. Final wide. going to and to the if to in has through of to situated street economy, high And a the because sellers to growth embedded what being of buyer in summarize, and The factors. up for long still But seller that showing going-in spread assets of on sure line fact, yields an for we a likelihood higher-longer If runs drive and take that we

compelling those I So answered assets I we lot will threw know, your but a question. think at provide you, upside. shareholders that hopefully, with acquiring our

Elizabeth Yang Doykan

follow-up helpful. as question. That's And separate a just

A.J. comments Coast and a luxury strength -- commented on? one you North to Gold besides showing other and seeing that that Avenue. A.J.'s sign up retail Michigan are luxury to signs from Is this markets the on of relocated back Going Melrose other tenant others of or maybe

Kenneth Bernstein

A.J., why don't you that? cover

Alexander Levine

luxury mean, have show markets, of Williamsburg I in might up our even up expected you've luxury markets where look portfolio, as growth in seen certainly like in seen our Austin. not we've historically, that. you to some seen And within you've show luxury up Yes. show we Ashville,

isolated is that's Chicago. So happening luxury It's something It's real. not New very L.A., to York, everywhere. expansion

Kenneth Bernstein

they it's of for in retailers And specifically, retailers, control that control that their luxury store. general, trend relationship with and way the to and of best some to secular their is them their recognizing want

best those step that for is migration. seeing forward. And retail, So kind we are of the channel open-air street retailers especially retail, to

you're I going to see trend continue. think that

Operator

question next Our KeyBanc Todd from line Thomas the of of Markets. Capital comes

Todd Thomas

just investments vehicle? either curious strategic you're new also Fund of VI begin these a sort relationships? legacy about think we is of into. some with of Or fund First assume then should of this are And to ongoing new is like any fundraising I new should some entering VI, these are addition these we will in -- relationships? these point first, that Or in this Fund or lieu at investors? or guess, sort of some relationships they question, of that

Kenneth Bernstein

while buyers an to before, it's side of similar. could a of more couple more shareholders outlined So we going as There's this this be is vehicle first investment think is one-size-fits-all much that component this as public the a and still we're environment, don't the fund where the excited is business, better for new that last for in we're some format our the business, think able but Again, where also that think foremost. will serve institutions. The it to Todd. that believe And drive was important Fund during the leverage management overlap, rationale investors is change, are decades. growth our than VI. our dual that platform of reasons be of to current for going we I lower-leveraged We tailwind we

our to capital. friendly Secondly, which successful, it thankfully deploy isn't twice Fund but V, that up LPs long teeing us that very took our to And is be cycle or investment shareholders. elongated to as

very one-size-fits-all a able any make which Fund so to seems funds or capital our point. investment, something that a great more let's discretionary to say, or pooled fund, and basis is small is And being are on of that sense. Final things beneficial. having strategic are V, The do

that is the going going forward. high to the of that than more be friends a higher difficult side a certainly are private However, more feeling interest in one-size-fits-all business equity teens is My that little of required, and nature environment, in especially difficult return rate it, it.

Now can core extent they they we that stay there's That's to open-air want retail. focused rental pivot. to But the that, or ways and to single-family all our competency. industrial go development in can

working institutions with leverage So now what return and different desires different we are with goals. doing is different

teens low plus, core more high teens. be versus may Some

Some may that distressed initiatives better can way. curate we debt, as other thus and have such it

You all put it terms likely in to similar very flows together, revenue. and going and of cash it's look

as externally it's you and us might we're then will growth a be as enable to of our going say flexible think both difference. now focus distinction getting to a But portfolio a without little confident, this right now more is do which some more our internal we So well. on Fine. core I forward, main as drive mandate

Todd Thomas

investments investor Acadia having forward that a be similar Okay. going to -- there that with core similar XX% asset suburban manner? a in a additional are be they stake you're Will assets too, sold with X% might stake? in selling suburban then And will a additional the any

Kenneth Bernstein

Yes.

throughout constantly not it to start strategy. are looking which does make part portfolio, of, or So which assets lower mission-critical the recycle sense growth just with at let not of either second they out we our consistent me that, is because growth our or with are

do are. certainly the exits. not so And there need rush to yes, We to

and Livingston biggest of opportunities some team a So we When are or Reggie it's this you and debt. still those recycles, be grow that of we to very thought would the going certainly going see are whether working some with, with year that of ago, dependent, this of we if I the forward. anything. do you're opportunity. And the just then firesaling there can company more any not I others spoke distressed fine. But kind institution opportunities be the Todd, don't us on will that And see

doesn't Now, to of look least opportunity. going the retail, relates be to in fact, as like it other to that's There's it be at window situations. going

private way. And to new feeling and see, the pretty be it investor, last most retail the assets, we'll for of X-plus to mind, good institutions, keep for part, institutional very right we'll match in years. sidelined right Because we're out So been good interest. about able that the have

pivot so other us classes they and want And partners execute back like to they to asset of need some as of out retail. into

Todd Thomas

Okay. That's could, I if one real helpful. And John. quick, one follow-up, for

the provide is that the in the color term, any Are disposition you little sale there And or that, guidance. results you impact as into accretion about results bit still the And dilution, in can $X.XX. talk a terminated that asset near to maybe additional have sale? may was around an Just that's working factored that the guidance? it ultimately quarter asset toward on either original

John Gottfried

Yes. Absolutely, Todd.

at vacant a contract. use the this That terminated it's that development. So building point. retail for retail is And and a best highest not was --

be really amount of go-forward taxes going numbers. a and The of sort parcel. a it's is So to nominal interest in drag non-ancillary our

we're looking sell. not to as going to the Ken but right mentioned, like for And just fire-sell anything time

needle-mover proceeds in otherwise. this under for just that an is was it period we meaningful not terms a of got was time. amount -- So of of The payment contract extended or

the pool. with the that a in last it. an of same-store million So then and were opportunity given size for And $X defaulted plan that asset was not one maybe that our way. we this did for the their the carrying for had there. were cost either ultimately holding as buyer where point the development rates at we We was Same-store, asset. Todd,

that one segregate asset. not even meaningful clear shows sale to as our our it's part that make -- up in large want back days. did sure it. same-store that's And for probably one of well. It pool. payment, was want an again, a was of It so it's it I we So just wasn't these to

Operator

Our next Jefferies question comes Linda from Tsai of line the of Group.

Linda Yu Tsai

NOI, street does The from 'XX million FFO like? year-end coming through look 'XX, $X.XX the online from what $XX cadence of

John Gottfried

Yes.

near our $X in have say in million significant So that at we that would that's the Linda, pretty term, if we look I signed-not-yet-open.

So that's when we have the most clear visibility to.

that and quarter balance in up So shows about fall that X/X the and the during this will the commence of year. second of of

that is big call going of 'XX. chunk So be to that a

strong very a up. see 'XX we've already the of shows balance as what we executed So

then talked demand. about the A.J. lease-up piece. And that's So

we that piece biggest is in think those will Mark-to-markets, think be the come the are to I in, have sporadically. from signed-not-open going sprinkled million I $XX that but bucket. of

in in So is X% will contractual. I think, think that's year. the about. the don't I $X come million then spoke we That relatively cadence-wise, to will evenly. growth, -- say relatively And that I evenly, but want each come Those that

So going I say want to to exactly don't be we're XX% year-over-year.

that do years in next the -- think would I work couple we smooth this. see relatively a that. wrong be proven of on through I'll I the But of XX% trajectory as

Linda Yu Tsai

if XXX then basis? one the every just on confirming Fed that is benefit an And rates bps, I'm annual step cuts

John Gottfried

Yes.

Linda Yu Tsai

The you're Great. Last Could announced core to your you suburban about little release one sell a question. a the contracts in the asset and talk press to contract bit you under buy. then pricing?

Kenneth Bernstein

accretive. it it, don't that We'll at more to answer hopefully want that your next since that. was well, question talk leave everything third It I about we'll But quarter was when since and closes.

could we I So It I that. think could accretive. was say mean, that. we say

Operator

Mailman of Our next Citi. the of question Craig line from comes

Craig Mailman

conservative want like at I know guidance but here. be feel you of shadow-raised year, John, point maybe I the this you So to

a to said sensitivities better the I than or -- midpoint. did around the about he's know rents he rents today A.J. I quarter kind So seeing of you wanted of ask feels even some ago. he

slightly credit These want pricing to on. Ken positive way. in is but a give of -- tenant accretive, the kind doesn't deals trending And are

could we of could in you at view maybe $X.XX pieces, versus see, that year bracket could plus kind about of or versus what's what kind range be? these the of you maybe -- hit, minus your of of these this timing So at think the all some the as of least moving the the point if

John Gottfried

Yes.

So again, original raise on focused was I to just our issued that the weeks and we certainly ago literally think -- decision guidance.

that So range, mentioned tenant FFO in credit, built primary the as of in that $X.XX so of it. remarks. Tenant sensitivities I call, to of midpoint the as was of we But I credit, driver where think with call think -- highlighted for the last had a let's quarter talk tenant had terms credit. I the on -- I of $X.XX my it, we in

We that. are trending better towards

So tenant first we one was think a That quarter. the sensitivity to That's positive I beat upside. could credit. trend on

purely we Second a to that's positive, missed weeks. If NOI it's by is timing. our not month, of do piece, we -- sometimes, Craig, have sometimes accelerate a signed-not-yet-open is going And -- if control, harder it big is income we by pipeline. and because is either which few vice-versa, or to outside missed often a that

that. the spends rent is and out another there, great slightly volume could the the just a expected. Other think leasing that I that's new is and night on on that a estimates So deviate day have on front. and we from leases great where given focused commencement one, is just we variable But team that upside

to street see the if XX% the anchor, signs the not NOI up we'll sign be currently process we're can and with but a going lease that, build-out occupied, benefits -- suburban this with given and that the 'XX year. lease A.J. versus street today until of one A.J. just point on of a paying thrilled an so in So some get

conservative projections we've there. made I So think

the team goal. and So this chance upside. And his a to achieve -- and I of sign signed open, commence ability A.J. to in A.J.'s to think that's to leases doesn't our get to year, have year another for for the terms goals lease

reserves our So we've built in appropriate leasing. goals We've met around there.

acquisitions, no I going we have again, can So -- on. keep

And upside. some of the points acquisition

So they've as as is through we morning investments. pipeline, Monday when go our been, busy which meetings ever

add. on haven't to that anything We closed

that's factored where another going I'm haven't rise certainly we we to haven't opportunity not on but that So in. something done,

to it's time to on that the think expectation. of But upside the and as I out market would spoke guidance a range sort -- bunch a just there. So the of last of really things I of we our lack focus

Craig Mailman

like guess that in Okay. kind could be pretty rest we impact positively factor about I questions that the big one, in guidance, second and above that think at adjustments No, already maybe then the today he of that has kind fair Anything market you on since there? And that. 'XX? that's isn't that positively mark. but seems that an impact as helpful. point on street, of But here. the A.J. guys value was see pipeline year could X out his plan what's guess, guess, hit And swing looming this is a what hit beyond and of could I like look I easy

Alexander Levine

in. most mark-to-market positive mean, the I I'll that right, strategy, out jump Yes. pry-loose opportunities are the lot look, we've we've for are part, peppered about there. what portfolio. -- all, throughout put these of for the Those and the talked to a incremental

I the [ a ability rents average going to and market example to of over foot market. that Armitage coming ] And $XXX years. foot a a that great is where we of street, $XX are on amount a the is put Avenue space lose think that, the probably quarters a good have

the But portfolio. template, are, So throughout right? that's think peppered the I again, those

opportunities can't last embed You the few that seen not have over the throughout. amount of growth and those we've have years

was the that So first question.

Craig Mailman

kind goal your pipe the of the that then And Yes. and in anything for beyond kind above of looks promising? year

Kenneth Bernstein

Yes.

Alexander Levine

saying That's there yes. Ken Yes, is.

Kenneth Bernstein

when -- all we not any do We we sheet negative. or rent obviously, We think growth, listening have takeaway not that to this, The that going can impact balance commencement because have and either minus any do I exposure. rate -- and maturities. big we is the embedded John's concerns. don't the from this any plus interest to of I And just have to have much have answer be the positive Yes. mean dates.

value. sure levels because sure we'll later. work and getting best shows getting, retenanting, do we're up those, up make shows what's it up market that's create rather to 'XX, whether in fair it long going sooner have than at demand But shows going value whether the the some rents resets even and of are make we it pry-loose to the 'XX or we're retailer maximum spreads to and harder is and our to or But it through we term,

Craig Mailman

Can I more in? one That's helpful. sneak

Kenneth Bernstein

Yes.

Craig Mailman

Just offending street know retail, know to guys potential segment How -- yourself the and partners there, do But clearly, how all do niche that I yourself. of have a partners? that. XXX% you that keep guys enough and you balance, for kind Ken? keep you without want for partners you do

Kenneth Bernstein

to that done before, successfully discussed distinction have should business, the doing now we between that. if street to have we've get they are where of side issue we're additions. saying between detail be fiduciaries there being they retail. And size, some The and other want that Critical larger we great in the on could decision-makers distinction of are the are participate can in table, of is portfolios who them, And we a fund unlock what in and waivers. I go

others focused the keep that's rather our are leverage management So fine. But relationships in I'd our institutional suburban and more initiatives, our platform. which, in frankly, investment

conflicts the historically. are manage So successfully less. them We

them manage will successfully We now.

do light But if lower-leveraged, that to into time our anything, coming on is clearer do superior. vehicle we the life it And we gives be model a Because us balance REIT to period, was private where the sheet the the it thus, strategic is in infinite want tougher leveraged. periods where vehicle. initiatives to room during equity infinite run for that opposed as advantage the a believe will

Operator

next of Ki Kim comes Bin the Our of from question Truist. line

Ki Bin Kim

declined to occupancy rate lease XX%. On the Rush Walton, &

if -- Just what's happening that there? curious

Kenneth Bernstein

A.J.?

Alexander Levine

that the Nothing Michigan That's Avenue. is to higher was And We market. anticipate. Yes. tightness taking. already course, space a very spillover profitably we're seeing, at we're supply this the tight North no it a Stewart. we didn't back Basically, mentioned again, to there. tenant market under rent LOI backfill on with than Paul why And of that of previous

not always world back the the that, space. the in getting market to it's be worst thing is side So is

Ki Bin Kim

that was that provide put impact plans sure the on noticeable your not redevelopment West some same-store you And kind are just NOI, Express had the what on if color of asset? I'm can but Shore into for pipeline. rate any if

John Gottfried

Yes.

that to believe under asset So Todd's Ki just Redevelopment -- I West Shore it when is have is mentioned be Bin, so was were talking was asset that the we should and question, was the but that Expressway that contract, not I responded clear. probably I name to, about.

Ki Bin Kim

How where some do a point, maybe Ken? up doing more in becomes might assets to asset there getting And estate. on that, versus to that that future that on real in giving to terms holding value thesis of hold is on the maybe gift retailer candidate? the the something rises more you Or keeps market tied you much later might at individual think about want the some really disposition that to? that Is resets, that the well be street, of for on fair these you're the the

Kenneth Bernstein

Yes.

own performing. any So we Melrose think we it's given whether carter, about how The supply-demand and Avenue, that Soho, given are the a way any critical it's rent-to-sales, Place, Armitage tenants market issue.

to is see more tenants tenant, And as we that supply space. But surprised so-called well, relation look to And our So supply-demand we're periodically if the first who in so tenants tenant in a broader and how gone that a we pry-loose been separate on the and that lot part Armageddon, then demand, -- disposition market it's to strategy. If went that retail What mentioned, is general through not, there's And no been in be do strong. if overall. that and overexposed buying done think in other general, a pleasantly has a concern XXXX, tenant for retailers now especially space in corridor the that we their interest as and there, have we to thing is is A.J. at or replace we're that the of imbalanced for look have performing. performance a far tenant departing, tenant. in direction, tenant. of doing reasons in then markets. with the could given to and in try has given we is that will performance, has A.J. candidate, we've a That's about are specific going but during given corridor

those we many is So we've but not certainly watch had it closely. date, would of issues to something

Operator

question comes of next Mueller the line Michael from Our of JPMorgan.

Michael Mueller

that early the million mentioned the accretive be you modestly before was $XX proceeds. on think I Ken, to redeploying disposition going

other works. dispositions. kind of I think curious when typically the Because way of Just how usually that they math cuts

Kenneth Bernstein

yield dilution. is that Xs, cost explain there's so in borrowing going Michael, not our curve, inverted of Yes. joys immediate to the Xs an meaning that Did and be John? right, I The

John Gottfried

Yes, plus the fees, Mike.

So pockets but offset. I there's think also have earn that we'll the an do well addition we the as that some there, fact fees that to from

Michael Mueller

it. Got

street maybe 'XX. question ballpark then late on -- And a average number target occupancy you a -- 'XX going follow-up Can from rent and by early should Okay. was number or think give I to it like -- thinking XX% the be one of? that us sense, rent square of XX% the per we early late-XX foot

John Gottfried

or, that, do would Yes. able different threw I to markets, So love be know you difficult -- lower upper That's in the would and if think don't a the get it's we honest. just given to different to say $XX the across lower floor would why Mike, It given $X to be upper -- foot, be to think do. is Ken, floors. there I there's right? million just I'd markets. way I number, a best I the -- why have given different love But view A.J., floors, to range, floor, I but...

Kenneth Bernstein

the It least different $X boxes those do, we the Yes. can impact. goes be is change quick metrics, and could suburban if our we of unfortunately correlative reminder our it next on number, we assume assets. right least -- of the to But to of get that have and I'm because $X right, going then couple economic on to relevant in we our away, way. If probably It A.J.'s all occupancy is ramp years, one the give of of rent. assume million a in that again, succeed that disparity a could peers I and and no metrics. John our

be If we on but well economic don't I feel we We with on growth. it, feel our not leasing, please can good about the as that economic why hold I And rely occupancy going know economic do up square because, growth. trying. very work too about you certainly that. So pretty would best it. come share much back from to will we think, will that, good We're any and A.J., the Rely footage a basis. it's way metric, to don't that on

Operator

question line next Our Floris Point. from of Compass of comes Van the Dijkum

Floris Gerbrand van Dijkum

particularly misleading. your but X.X% what your referring bit the your your A in pool question, higher. average how you percentage XX little color can if leases, significantly was is same-store yet in us more did a maybe same-store your give I'm activity leasing spreads, you cash to same-store pool? spreads obviously, rent rent be and on is only of can -- What

or nonsame-store And bit some What pool. in that. spaces if maybe imagine out? is example, pull give your the noncomparable. would Point little talk you about Maybe us noncomparable you do detail For City a probably I on pool. can more splitting of

Kenneth Bernstein

John, just terms comparable/noncomparable. to touch table, on set that touch of duration, all fact the created in equal not spreads the are on

John Gottfried

Yes.

are in start So there. the exact not first assets with let's that

First, it's our core only.

core portfolio So it's we for. print our just spreads that

-- out. ones stripped Avenue. being you we our terms are supplemental, list assets the of the there North in look in San the if core, not big redevelopment Francisco, Second, that's are that at in page Michigan within Those out our

of we So not where where I'm have same-store. And the because of let show accommodating to about in the talk could critical that our to I to need are are not is tenant's which we going go within and a terms space there, and in the up how good think think those that that's not space. and comparable, in street -- of going mass are we accommodate cutting in tenants, up it we going portion locations we up of are to a leases buying our carving A.J. then about assets are ones comparable/not why terms individual piece

signed-not-yet-open that the our range. the commenced in that percentage that's I'm last XX%, same-store Those in that for to on going it. But in we XX% you let So quarter. terms piece spreads the A.J. contributed that to street growth. the out quarter yet our the good in signed Keep haven't a of that were of what's portion the Those threw were of that are in signed-not-yet-open. haven't spreads, expand mind, our

the So think I a it's not of signing that. delay that we're part signing of are but a between occupancy, leases when and that also mix timing is there good a portion

lease getting depending So that's on street, not A.J. we XX the cutting the on point the back going years, equal think And not all on spreads let about every is X keep the on to we Ken's piece hit space, mind get shot in least but I'm duration. are that how years, to mark-to-market created if up to one. at a

marking we're market So faster. to much

the think before from get from it. about lease coming there. CAGR another the suburban, double we of And the get the part CAGR time crack growth to we net factor the cost, a compared what internally, in as time on as sign resetting you effectively to a So from we street the at is the we CAGR even is it the

XX given growth equal a So X% just X that's the years not one, you back all spaces we've the might that mark-to-market and suburban or that lease for lease, versus not is after created XX years. get gotten street within

of what leases that a you this of them there talk to up we don't cut lot bit the comparable way why space? terms based be in A.J., a about just going So and on that carve the aren't

Alexander Levine

the at for. it's are looking tenants all the day, and Look, end value accommodating what maximizing about Yes. your of

means sometimes that spaces. that spaces, Sometimes combining means demising

I accommodate think we're these tenants we in these what fortunate just of because looking can that that scale the have we are markets for.

think X Laurent right, combined, were Saint need space. spaces instance, expand, the I looking Coast, They for the Gold was larger that a we had Laurent right? that mean to about for St. you on because

Green the nonetheless. The And kind point were -- important that it you conforming the when out, money folks our conforming we not of spending on remind lease up a necessarily volume, are in to us point is is do not Street certainly also an So have. enough we as to suffers. space leasing right, think than impactful but and that to ABR smaller a number the doing we're focusing that total of to necessarily and that we're carving space, also percentage much or it's at when should combining and be good it's leases lease, important I number an

down comes for, into space. maximizing comes it it the value, fit looking really, again, to and to down and So is accommodating it existing doesn't what tenant sometimes the

Floris Gerbrand van Dijkum

sometimes it Is to NOI growth. -- if -- to Great. get Ken, markets you markets today, most money It's misleading that too people spreads. I focus And could if the It's New the could you it's find helpful. -- compelling? DC? for it where the if I Maybe Is ultimately, York? can be are now deploy think much which you about had comments, -- maybe on to street -- that Chicago? right you it retail street Is wanted it your

you have be available them. I opportunities? here all those returns is you biggest of know at somewhat because Where do see a between looking you're of you -- the much markets? difference the to But there as at cagey look in presumably

Kenneth Bernstein

about we a Chicago, we to of there. plenty I'm instance, see I mention to have way but and going so rebound, markets: markets. cagey, for to The think nice or am it, going exposure X not specific be Floris, where X There's

is of see the see mentioned have haven't that we growth. Armitage reluctant add in we where to ones Street yet necessarily on brought retailers. Dallas we Soho. So that, Acadia few haven't an the but added pathway value, to A.J. early-stage really categories. in not markets specific that or a One Avenue there, in opportunities. Otherwise, us the where see example of Henderson we I'd on we kind is think be to of about that's the Avenue Green yet ones you'd different

market, demand, a So prime cap doesn't less lift. Greenwich growth. Final to some might is for early do provide and gets of lower will, for more a kind in your some then up the some bit factors: variety shows retailer is markets mature, market, tenant blend if significant seeing point adjust There's COVID process, COVID. we lower of a long of has with. Then then pricing probably room rates, that present have but there's that growth. around different are all we're of well of strong it those we're significant Street And shareholders, a can but a we what ones. for enjoying trying a right that. established And generally they are example. a established. pipeline but more have mature growth, during the is kind if in opportunity mark-to-market retailers should brakes we overall, final through as in you that so on And our moderate, are those went pathway to Georgetown to M rental stable then lot growth, mature. And for draft. early cleansing there ripe but got It more already established Avenue now. of growth where probably And We're luxury seem as business are a then the the to that Connecticut nice stage, tap

so certainly our we're with keeping show may want understand retailers retailers up. to to in where the And luxury contact close

Operator

question next of from comes Our line the Paulina of Rojas-Schmidt Street. Green

Paulina Rojas Schmidt

basis Can XXX add street assets? in-place color of and you the in retail more which around north points occupancy, suburban please was

John Gottfried

movement that Paula, to was in the on is question? the Is your occupancy question sequentially from QX? QX

Paulina Rojas Schmidt

what it but category on few one expecting based was But Yes. to and a seasonality. than a just I'm wasn't seeing, due I little more

John Gottfried

Yes.

was that in store it basis tried assets driver but -- the points was at our identified That a from a biggest that the XX it of we of one and moved suburban our it points. to XX actually was was we liquor basis out. release, articulate So --

& that again, in remarks was points is remarks this my the a basis on on up it back Rush occupancy, XX Another to Walton following back I'll nothing significance. And beyond dip. that Ken's space and really got And we call Chicago. that, notwithstanding of going

we're at putting that those increased placing you higher up we the dollar actually If rents, NOI doesn't show -- in we're look percentages. because which growth,

backed and all has to rent really behind we it's $XX that moved us, for need store believe I that think that. occupancies -- I think about metric A.J. a liquor that already impactful than the more So much out I know those on. focus that's But it's

Alexander Levine

space, signed right. we've for Yes, the lease that

Paulina Rojas Schmidt

I'm talked is acquisitions? you IRR what we And about Okay. hurdle have for acquisitions. that curious have the

Kenneth Bernstein

quarter, -- So general, won't core cash talk the we'll close to that and on cap like and through vary investors the more IRRs, or flows for get where in the the still on which I heavier basis. returns depending levered be. opportunistic it call the would on things be low-teens specific compression into it, from, redevelopments the plus, mind lift next But And risk basis, better would IRRs that on rate a and about. metric, about talk a levered high-teens a unlevered knows either might they once in deal, who that. Keeping be right now, will

thinking or I'm limited about pricing is the So compression. no assuming cap rate

Paulina Rojas Schmidt

return you so street pricing what more expect about the I'm that But the actual Okay. looking it getting? that is than perspective the what retail? And you're minimum of from more

Kenneth Bernstein

very and is -- a rates cagey the a be seems in as because we're still it be question. level trading we've that talking think about, growth. off at high-quality little be in way as supermarket it be, variety above seems to throw to least that's that though bit of high-quality seems legitimate But in, some to it's below but cap I'm, anchor of Street anchor. some retail, growth. And I'm twice rate X% going been about about are a it to seems So to, to general, that cap And X% That that lowest seeing. on supermarket trades going throwing the depends And the again, factors. off be is should lowest going-in yield, that for hearing range.

XXX if So for a for basis points was retail. on it it be points XXX supermarket-anchored, that street stabilized the basis could basis

to yield So retail. twice with asset, similar going-in stabilized for feels similar a That we're getting the us. pretty on going-in growth yields street compelling

into but the higher same in value-add, talking price to growth, may produce or a pretty may transactions compelling, of won't it teens, low high the are darn devils yield-plus yet recapitalizations, that Whether they should not to that teens we're details, or IRRs. about the today. and conform twice growth simple for feels other add going-in the variety that Now get I that

better around getting we'll you deals give done, As much we start visibility that.

Paulina Rojas Schmidt

a retailers. one. and Okay. This if of I'm guessing are I a some them -- was last What's native And showing I'm category ago, growing opinion few about years weakness. your the digitally can then now

We Bonobos, have Outdoor of Voices. likes the

you think? And do so what

Kenneth Bernstein

Yes.

I'm between X but a digitally you alive explain It's blending let's do feel to their online distinction control and alive so to make their make well. Digitally needed the and yes, and distinction native was the luxury to well. retailers doing this. transition people were If of during direct-to-consumer, Armageddon athleisure to stores want because a are profitability. want bunch started the free to a the a and are was and only while, DTC terms. DTC that is whether and online through -- omnichannel going they stores, to or space up, direct for flagship to hang is have transition call, It So -- to Direct-to-consumer social it media world, is it is whether the are an is locations store. a last that, DTC, retail native because they wanted pathway that what retailers doing. between in or drive those we relationship. retailers using and is what a connection

them and it not. has our part strategy. are some and very thrive to A.J. omnichannel the to then because of been streets and world made side great others other of exciting. have may will Some you've successfully an in that's mentioned do mentioned, They're continue for fine fine. And as they'll just pry-loose have Others,

them Bonobos of maybe or market. all are below X have We and X, well

backing estate the when strategy that don't if native, real make going it, they're considering to they're they do final digitally have if money. But and the equity my to they it So the to pathway way profitability. we'll I if make a friends, is, point private is talk venture only a is because

a other retailing. than So to It will impact can the it evolution pry-loose. our have shakeout. of And we earnings not be if is there'll material natural

Operator

conference to closing Ken for [ like back remarks. Gottfried (sic) now would I turn to Bernstein ] the Sir? Ken

Kenneth Bernstein

and The look perfect soon. the all time. for taking forward speaking Thank to John combination you you We of to Ken.

Operator

participating. you Thank today's call. for conference concludes This

may You disconnect. now

Acadia Realty Trust (AKR) 30 Apr 242024 Q1 Earnings call transcript